Avnet 2015 Annual Report Download - page 31

TableofContents
netincome,adjustedfortheimpactofnon-cashandotheritems,whichincludesdepreciationandamortizationexpenses,deferred
income taxes, stock-based compensation expense and other non-cash items (including provisions for doubtful accounts and
periodic pension costs) and (ii) cash flows used for, or generated from, working capital and other, excluding cash and cash
equivalents.Cashusedforworkingcapitalandotherwas$636.7millionduringfiscal2016,includinganincreaseininventories
of$367.7millionanddecreasesinaccountspayableof$114.3millionandaccruedexpensesandotherof$180.3million,partially
offsetbyadecreaseinreceivables of $25.6 million. Inventories dayson hand has increased and receivables dayson hand has
remained flat from the end of fiscal 2015.  Inventories increases year over year primarily at EM Americas to support the
conversionofitsERPsystem.
During fiscal 2015, the Company generated $583.9 million of cash from operating activities as compared with $237.4
million in fiscal 2014. Cash used for working capital and other was $303.4 million during fiscal 2015, including increases in
receivables of $204.1 million, inventories of $73.2 million, and a decrease in accrued expenses and other of $182.7 million,
partiallyoffsetbyanincreaseinaccountspayableof$156.6million.Receivablesandinventoriesdaysonhandattheendoffiscal
2015didnotchangesignificantlyfromtheendoffiscal2014.
CashFlowsfromFinancingActivities
Duringfiscal2016,theCompanyreceivednetproceedsof$541.5millionasaresultoftheissuanceof$550.0millionof
4.625%NotesdueApril2026,$142.8millionfromborrowingsofbankandotherdebtand$80.0millionundertheCompany’s
accountsreceivablesecuritizationprogram.Duringfiscal2016,theCompanyrepaiduponmaturitythe$250.0millionof6.00%
NotesdueSeptember2015.Inaddition,duringfiscal2016,theCompanyused$88.6millionand$380.9millionofcashtopay
quarterly cash dividends on common stock and to repurchase common stock under the Company’s share repurchase program,
respectively.
During fiscal 2015, the Company received net proceeds of $35.0 million under Company’s accounts receivable
securitizationprogramandmadenetrepaymentsof$115.2millionforbankandotherdebt.Inaddition,duringfiscal2015,the
Company used $87.3 million and $160.0 million ofcash to pay quarterly cash dividends on common stock and to repurchase
commonstockundertheCompany’ssharerepurchaseprogram,respectively.
During fiscal 2014, the Company repaid upon maturity the $300.0 million of 5.875% Notes due in March 2014.  The
Companyreceivedproceedsof$38.8millionand$255.0millionfromnetborrowingsofbankandotherdebt,andtheaccounts
receivablesecuritizationprogram,respectively.Inaddition,duringfiscal2014,theCompanyused$82.8millionand$8.6million
ofcashtopayquarterlycashdividendsoncommonstockandtorepurchasecommonstockundertheCompany’ssharerepurchase
program,respectively.
CashFlowsfromInvestingActivities
Duringfiscal2016,theCompanyused$19.7millionofcashforacquisitions,netofcashacquired,andused$147.5million
forcapitalexpendituresprimarily relatedtoinformationsystemdevelopment costs,computerhardwareandsoftwarepurchases
andfacilitiescosts.Additionally,theCompanyreceivedproceedsof$14.7millionfromotherinvestingactivities.
During fiscal 2015, the Company used $174.4 million for capital expenditures primarily related to information system
developmentcostsandcomputerhardwareandsoftwarepurchasesandfacilitiescostsandused$12.0millionforotherinvesting
activities.
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