Avnet 2015 Annual Report Download - page 57
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AVNET, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Thefollowingtablepresentsthepurchasepriceallocationforfiscal2014acquisitions:
Acquisition
Method Values
(Thousands)
Cash $ 64,763
Receivables 36,216
Inventories 95,202
Othercurrentassets 6,597
Property,plantandequipmentandothernon-currentassets 28,155
Intangibleassets 53,502
Totalidentifiableassetsacquired 284,435
Accountspayable,accruedliabilitiesandothercurrentliabilities (66,848)
Short-termdebt (45,942)
Otherlong-termliabilities (14,535)
Totalidentifiableliabilitiesassumed (127,325)
Netidentifiableassetsacquired 157,110
Goodwill 62,616
Netassetsacquired $ 219,726
Goodwillof$52.0millionwasassignedtotheEMreportablesegmentandgoodwillof$10.6millionwasassignedtotheTS
reportable segment. The goodwill recognized is attributable primarily to expected synergies of the acquired businesses. The
amountofgoodwillthatisexpectedtobedeductibleforincometaxpurposesisnotmaterial.
The Company has recognized restructuring, integration and other expenses associated with fiscal 2014 and 2016
acquisitionswhicharedescribedfurtherinNote17.
Fiscal 2017 Potential Acquisition
In July 2016, subsequent to the end of fiscal 2016, the Company publicly announced an offer to acquire all of the
outstanding and to be issued share capital of Premier Farnell plc, a public limited company organized under English law, in
exchangefor£1.85pershare,representingapurchasepriceofferofapproximately£691million.
To provide financing in connection with suchoffer, in July 2016, the Company entered into a SeniorUnsecured Bridge
CreditAgreement(the“BridgeCreditAgreement”).TheBridgeCreditAgreementprovidesforasingleborrowingof(i)tranche
A-1bridgeloansofupto£557.0millionandtrancheBbridgeloansofupto$250.0million,eachwithamaturitydateof364
daysfromthedateofborrowing,and(ii)trancheA-2bridgeloansofupto£150.0million,withamaturitydateof90daysfrom
the date of borrowing. The Company’s ability to borrow under the Bridge Credit Agreement is subject to customary limited
conditionality.BorrowingsundertheBridgeCreditAgreementwillbearinterestatavariableinterestrate.
3. Derivative financial instruments
Manyof theCompany’ssubsidiariespurchaseandsell products incurrenciesotherthantheir functional currencies. This
subjectstheCompanytotherisksassociatedwithfluctuationsinforeigncurrencyexchangerates.TheCompanyreducesthisrisk
byutilizingnaturalhedging(i.e.,offsettingreceivablesandpayablesinthesameforeigncurrency)as
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