Avnet 2015 Annual Report Download - page 4

TableofContents
PART I
Item 1. Business
Avnet,Inc.,incorporatedinNewYorkin1955,togetherwithitsconsolidatedsubsidiaries(the“Company”or“Avnet”),is
aglobalvalue-addeddistributorofelectroniccomponents,enterprisecomputer,networkingandstorageproductsandsoftware,IT
solutions and services and embedded subsystems. Avnet creates a vital link in the technology supply chain that connects the
world’sleadingelectroniccomponentandcomputerproductmanufacturersandsoftwaredeveloperswithaglobalcustomerbase
of original equipment manufacturers (“OEMs”), electronic manufacturing services (“EMS”) providers, original design
manufacturers (“ODMs”), systems integrators (“SIs”), independent software vendors (“ISVs”) and value-added resellers
(“VARs”).Avnetdistributeselectroniccomponents,computerproductsandsoftware,asreceivedfromitssuppliersorthrougha
customizedsolution,andoffersassemblyandothervalue-addedservices.
Organizational Structure
Avnet has two primary operating groups — Electronics Marketing (“EM”) and Technology Solutions (“TS”). Both
operatinggroupshaveoperationsin eachofthethree majoreconomicregionsoftheworld:the Americas;Europe,theMiddle
EastandAfrica(“EMEA”);andAsia/Pacific,consistingofAsia,AustraliaandNewZealand(“Asia”).Eachoperatinggrouphas
itsownmanagementteamledbyagrouppresidentandincludesregionalleadersandseniorexecutiveswithintheoperatinggroup
whomanagevariousfunctionswithinsuchbusinesses.Eachoperatinggroupalsohasdistinctfinancialreportingthatisevaluated
at the executive level on which operating decisions and strategic planning for the Company as a whole are made. Divisions
(“businessunits”) exist within each operatinggroup thatserve primarilyas salesand marketingunits tofurther streamlinethe
salesandmarketing effortswithineachoperating groupandenhanceeachoperatinggroup’sabilitytoworkwithitscustomers
and suppliers, generally along more specific product lines or geographies. However, each business unit relies heavily on the
supportservicesprovidedbytheoperatinggroupsaswellascentralizedsupportattheCorporatelevel.
Adescriptionofeachoperatinggroupispresentedbelow.Furtherfinancialinformationbyoperatinggroupandregionis
providedinNote16“Segmentinformation”totheconsolidatedfinancialstatementsappearinginItem15ofthisAnnualReport
onForm10-K.
Avnet’sforeignoperationsaresubjecttoavarietyofrisks.TheserisksarediscussedfurtherunderRiskFactorsinItem1A
and under Quantitative and Qualitative Disclosures About Market Risk in Item 7A of this Report. Additionally, the specific
translationimpactsofforeigncurrencyfluctuations,mostnotablytheEuro,ontheCompany’sconsolidatedfinancialstatements
arefurtherdiscussedinManagement’s DiscussionandAnalysisofFinancial ConditionandResults ofOperationsinItem7of
thisReport.
Electronics Marketing
EM markets and sells semiconductors, interconnect, passive and electromechanical devices (“IP&E”) and embedded
productsfortheworld’sleadingelectroniccomponentmanufacturers.Withaglobalreachthatextendstomorethan70countries,
EM’sproductsandservicescatertoadiversecustomerbaseservingmanyend-marketsincludingautomotive,communications,
computerhardwareandperipherals,industrialandmanufacturing,medicalequipment,anddefenseandaerospace.EMalsooffers
anarrayofcustomersupportthathelpcustomersevaluate,design-inandprocureelectroniccomponentsthroughoutthelifecycle
oftheirtechnologyproductsandsystems.ByworkingwithEM,customersandsupplierscanacceleratetheirtimetomarketand
realizecostefficienciesinboththedesignandmanufacturingprocess.
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