Press Release

Earnings Per Share in Line with Expectations
Strong Cash Flow from Operations

PHOENIX--(BUSINESS WIRE)-- Avnet, Inc. (NYSE:AVT) today announced results for the third quarter fiscal year 2016 ended April 2, 2016.

Q3 Fiscal 2016 Results

									Third Quarters Ended
									April 2, 2016					March 28, 2015					Change
									$ in millions, except per share data
Sales									$	6,174.7				$	6,736.9				(8.3	)	%
Constant Currency (1)																			(6.9	)	%
GAAP Operating Income										181.6					203.7				(10.9	)	%
Adjusted Operating Income (2)										205.2					230.4				(10.9	)	%
GAAP Net Income										123.5					121.5				1.6		%
Adjusted Net Income (2)										132.6					143.5				(7.6	)	%
GAAP Diluted EPS									$	0.94				$	0.88				6.8		%
Adjusted Diluted EPS (2)									$	1.01				$	1.04				(2.9	)	%

(1)			Year-over-year sales growth rate excluding the impact of changes in foreign currency exchange rates.
(2)			A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the Non-GAAP Financial Information section in this press release.

• Sales for the third quarter ended April 2, 2016, decreased 8.3% year over year and 6.9% in constant currency to $6.17 billion, organic sales (as defined later in this release) declined 8.6% year over year and 7.2% in constant currency
• Adjusted operating income of $205.2 million decreased 10.9% year over year and adjusted operating income margin of 3.3% decreased 10 basis points year over year
• Adjusted net income of $132.6 million decreased 7.6% and adjusted diluted earnings per share of $1.01 decreased 2.9% year over year
• Cash generated from operations was $212.9 million in the March quarter and $596.5 million for the trailing twelve months
• The Company repurchased approximately 3.7 million shares during the third quarter representing an investment of $145.7 million, bringing its fiscal year to date purchases to $331 million, or 8.1 million shares

Rick Hamada, Chief Executive Officer, commented, "Our sequential revenue decline was slightly below our normal seasonality given an expected drop in high volume supply chain engagements in our Asia region of Electronics Marketing (EM) coupled with weaker than expected demand in certain legacy technologies at Technology Solutions (TS). These combined impacts led to an overall sequential revenue decline of approximately 10%. Despite these elements of softness, we did experience stronger than typical sequential gains in our western regions at EM and notable growth within areas of our TS portfolio. Enterprise gross profit margin increased 44 basis points year over year to 11.9% with contributions from both operating groups. This improvement in gross profit margin was offset by the decline in revenue as adjusted operating income dollars declined 10.9% year over year and adjusted operating income margin decreased 10 basis points. Given the overall trends through our March quarter, we have initiated incremental, focused expense management where we have gaps to our expectations while continuing to invest in clearly identified areas of current and future growth. With our strong competitive position at the center of the technology supply chain, we will continue to leverage our broad range of resources and financial strength in expanding new markets, including the Internet of Things, embedded solutions, and third platform technologies."

Avnet Electronics Marketing Results

														Year-over-Year Growth Rates
									Q3 FY16					Reported							Organic
									Sales					Sales							Sales
									(in millions)
EM Total									$	4,041.5				(4.2	)	%					(4.2	)	%
Constant Currency (1)														(3.3	)	%					(3.3	)	%
Americas									$	1,192.7				(3.6	)	%					(3.6	)	%
EMEA									$	1,330.7				6.3		%					6.3		%
Constant Currency (1)														9.4		%					9.4		%
Asia									$	1,518.1				(12.3	)	%					(12.3	)	%
Constant Currency (1)														(12.3	)	%					(12.3	)	%

									Q3 FY16						Q3 FY15						Change
Operating Income									$	183.3					$	197.3					(7.1	)	%
Operating Income Margin										4.5	%					4.7	%				(15	)	bps

(1)			Year-over-year sales growth rate excluding the impact of changes in foreign currency exchange rates.

• Sales decreased 3.3% in constant currency and reported sales decreased 4.2% year over year to $4.04 billion
• Operating income decreased 7.1% year over year to $183.3 million and operating income margin decreased 15 basis points primarily due to declines in the western regions
• Working capital (defined as receivables plus inventories less accounts payables) increased 2% sequentially driven by a planned increase in inventory

Mr. Hamada added, "In our March quarter, seasonal growth in EM's core business was offset by the expected decline in our select high volume supply chain engagements in Asia as EM global revenue declined 2% from the December quarter. Revenue grew 17% and 6% sequentially in our EMEA and Americas regions, respectively, while our Asia region declined 18%. In addition to strong sequential growth, our EM EMEA team grew revenue 9.4% year over year in constant currency, which represents their 12^th consecutive quarter of organic growth. As a result of the typical seasonal Q3 growth in our western regions, EM's operating income dollars grew 5.3% sequentially and operating income margin increased 30 basis points. We were encouraged to see our book to bill ratio return to at or above parity for the quarter in all three regions. Our sequential increase in inventory was driven by investments in specific profitable growth opportunities and preparation for an ERP implementation in our Americas region. These investments coupled with the ongoing commitment to enhancing our digital platform, tools, and design resources will position us to grow faster than the markets we serve, leading to continued progress toward our financial targets."

Avnet Technology Solutions Results

														Year-over-Year Growth Rates
									Q3 FY16					Reported						Organic
									Sales					Sales						Sales
									(in millions)
TS Total									$	2,133.2				(15.3	)	%				(16.0	)	%
Constant Currency (1)														(12.9	)	%				(13.6	)	%
Americas									$	1,241.2				(13.8	)	%				(14.2	)	%
EMEA									$	615.8				(14.1	)	%				(15.9	)	%
Constant Currency (1)														(10.8	)	%				(12.6	)	%
Asia									$	276.2				(23.2	)	%				(23.2	)	%
Constant Currency (1)														(19.2	)	%				(19.2	)	%

									Q3 FY16						Q3 FY15						Change
Operating Income									$	55.5					$	68.1					(18.5	)	%
Operating Income Margin										2.6	%					2.7	%				(11	)	bps

(1)			Year-over-year sales growth rate excluding the impact of changes in foreign currency exchange rates.

• Reported sales decreased 12.9% in constant currency and reported sales decreased 15.3% year over year to $2.13 billion, organic sales declined 16.0% and 13.6% in constant currency
• Operating income decreased 18.5% to $55.5 million and operating income margin decreased 11 basis points year over year to 2.6%
• At a product level, year-over-year growth in networking and services was offset by a decline in storage, servers, and software

Mr. Hamada further added, "TS's revenue came in at the low end of expectations as all three regions experienced weaker than expected demand in select areas of legacy data center products. As a result, organic revenue decreased 14% year over year in constant currency with all three regions experiencing double digit declines. Operating income declined 18.5% year over year and operating income margin was down 11 basis points as an increase in gross profit margin and a reduction in operating expenses offset some of the negative impact of the revenue decline. Given the increasing rate of decline in certain legacy technologies, we will be reducing annualized operating expenses by approximately $25 million, while continuing to redirect our investment into higher growth technologies. We are already seeing the benefits of existing investments as our All Flash Array storage business grew over 40% year over year and our converged infrastructure product offerings increased nearly 20%. Our recently introduced Avnet Cloud Marketplace, which offers a growing portfolio of solutions from cloud service providers, flexible payment options, and a powerful cloud management toolset, is gaining traction with our partners as they and their customers embrace new consumption models to drive business results. With our accelerated investments in next generation technologies, we are confident we can optimize our portfolio to capitalize on second platform growth segments, as well as provide seamless support to our expanding community of partners for the transition to third platform technologies."

Cash Flow and Return to Shareholders

• Cash generated from operations was $212.9 million in the March quarter and for the trailing twelve months cash generated from operations was $596.5 million
• Cash and cash equivalents at the end of the quarter was $1.04 billion; net debt (total debt less cash and cash equivalents) was $1.28 billion
• During the March quarter, the Company repurchased 3.7 million shares, representing an aggregate investment of $145.7 million
• Entering the fourth fiscal quarter, the Company had $221.7 million remaining under the current repurchase authorization
• The Company paid a dividend of $0.17 per share or $21.9 million during the quarter

Kevin Moriarty, Chief Financial Officer, stated, "We generated $213 million in cash flow from operations during our March quarter, bringing our trailing twelve months total to $596 million. During the quarter, we repurchased $146 million of our shares and still have approximately $222 million remaining in our share repurchase program. We have returned approximately $400 million to shareholders through the first nine months of our fiscal year via our disciplined share repurchase and dividend programs. In addition, in the March quarter, we improved our capital structure with a well-received offering of $550 million of 4.625% ten-year notes. We ended the quarter with over $1 billion in cash, which when combined with our strong cash flow generation and credit facilities, provides us with ample liquidity to invest in profitable growth going forward."

Outlook for Fourth Quarter of Fiscal 2016 Ending on July 2, 2016

• EM sales are expected to be in the range of $3.90 billion to $4.20 billion and TS sales are expected to be in the range of $2.05 billion to $2.35 billion
• Avnet sales are expected to be in the range of $5.95 billion to $6.55 billion
• Adjusted diluted earnings per share is expected to be in the range of $0.95 to $1.05 per share
• The guidance assumes 131 million average diluted shares outstanding and a tax rate of 27% to 31%

The above guidance excludes the amortization of intangibles and any potential restructuring, integration, and other expenses. In addition, the above guidance assumes that the average U.S. Dollar to Euro currency exchange rate is $1.13 to €1.00. This compares with an average exchange rate of $1.11 to €1.00 in the fourth quarter of fiscal 2015.

Forward-Looking Statements

This document contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's current expectations and are subject to uncertainty and changes in facts and circumstances. The forward-looking statements herein include statements addressing future financial and operating results of Avnet and may include words such as "will," "anticipate," "intend," "estimate," "forecast," "expect," "feel," "believe," "should," and other words and terms of similar meaning in connection with any discussions of future operating or financial performance, business prospects or market conditions. Actual results may differ materially from the expectations contained in the forward-looking statements.

The following factors, among others, could cause actual results to differ materially from those described in the forward-looking statements: the Company's ability to retain and grow market share and to generate additional cash flow, risks associated with any acquisition activities and the successful integration of acquired companies, an industry down-cycle in semiconductors, IT hardware or software products, declines in sales, changes in business conditions and the economy in general, changes in market demand and pricing pressures, any material changes in the allocation of product or product rebates by suppliers, and other competitive and/or regulatory factors affecting the businesses of Avnet generally.

More detailed information about these and other factors is set forth in Avnet's filings with the Securities and Exchange Commission, including the Company's reports on Form 10-K, Form 10-Q and Form 8-K. Except as required by law, Avnet is under no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in the United States ("GAAP"), the Company also discloses in this document certain non-GAAP financial information including adjusted operating income, adjusted operating expenses, adjusted net income and adjusted diluted earnings per share, as well as sales adjusted for the impact of acquisitions and other items (as defined in the Organic Sales section of this document). There are also references to the impact of foreign currency in the discussion of the Company's results of operations. When the U.S. Dollar strengthens and the stronger exchange rates of the current year are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the resulting impact is a decrease in U.S. Dollars of reported results. Conversely, when the U.S. Dollar weakens and the weaker exchange rates of the current year are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the resulting impact is an increase in U.S. Dollars of reported results. In the discussion of the Company's results of operations, results excluding this impact are referred to as "excluding the impact of changes in foreign currency exchange rates" or "constant currency." Management believes organic sales and sales in constant currency are useful measures for evaluating current period performance as compared with prior periods and for understanding underlying trends. In order to determine the translation impact of changes in foreign currency exchange rates for sales, income or expense items, the Company adjusts the exchange rates used in current periods to be consistent with the exchange rates in effect during prior periods.

Management believes that operating income and operating expenses adjusted for (i) restructuring, integration and other expenses and (ii) amortization of acquired intangible assets and other are useful measures to help investors better assess and understand the Company's operating performance, especially when comparing results with previous periods or forecasting performance for future periods, primarily because management views the excluded items to be outside of Avnet's normal operating results or non-cash in nature. Management analyzes operating income and operating expenses without the impact of these items as an indicator of ongoing margin performance and underlying trends in the business. Management also uses these non-GAAP measures to establish operational goals and, in many cases, for measuring performance for compensation purposes.

Additional non-GAAP metrics management uses are adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales and adjusted operating expense to gross profit ratio, which is defined as adjusted operating expenses (as defined above) divided by gross profit.

Management also believes net income and diluted EPS adjusted for (i) the impact of the items described above, (ii) certain items impacting other expense and (iii) certain items impacting income tax expense is useful to investors because it provides a measure of the Company's net profitability on a more comparable basis to historical periods and provides a more meaningful basis for forecasting future performance. Additionally, because of management's focus on generating shareholder value, of which net profitability is a primary driver, management believes net income and diluted EPS excluding the impact of these items provides an important measure of the Company's net profitability for the investing public.

Other metrics management monitors in its assessment of business performance include return on working capital (ROWC), return on capital employed (ROCE) and working capital velocity (WC velocity).

• ROWC is defined as annualized adjusted operating income (as defined above) divided by the sum of the monthly average balances of receivables and inventories less accounts payable.
• ROCE is defined as annualized, tax effected adjusted operating income (as defined above) divided by the monthly average balances of interest-bearing debt and equity (including the impact of adjustments to operating income discussed above) less cash and cash equivalents.
• WC velocity is defined as annualized sales divided by the sum of the monthly average balances of receivables and inventories less accounts payable.

Any analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, results presented in accordance with GAAP.

Fiscal 2016

										Fiscal Year 2016
										Quarters Ended
										April 2,						January 2,						October 3,
				Fiscal 2016 YTD						2016*						2016						2015
				$ in thousands, except per share amounts
GAAP selling, general and administrative expenses				$	1,628,425					$	539,038					$	530,831					$	558,556
Amortization of intangible assets and other					22,845						7,433						7,921						7,491
Adjusted operating expenses				$	1,605,580					$	531,605					$	522,910					$	551,065
GAAP operating income				$	614,695					$	181,618					$	226,115					$	206,962
Restructuring, integration and other expenses					63,352						16,172						21,222						25,958
Amortization of intangible assets and other					22,845						7,433						7,921						7,491
Total adjustments					86,197						23,605						29,143						33,449
Adjusted operating income				$	700,892					$	205,223					$	255,258					$	240,411
GAAP net income				$	409,725					$	123,459					$	156,012					$	130,254
Restructuring, integration and other expenses (net of tax)					42,029						10,804						14,100						17,125
Amortization of intangible assets and other (net of tax)					16,073						5,376						5,513						5,184
Income tax adjustments					(17,972	)					(7,056	)					(11,295	)					379
Total adjustments to net income (net of tax)					40,130						9,124						8,318						22,688
Adjusted net income				$	449,855					$	132,582					$	164,330					$	152,942
GAAP diluted EPS				$	3.05					$	0.94					$	1.16					$	0.96
Restructuring, integration and other expenses (net of tax)					0.31						0.08						0.10						0.12
Amortization of intangible assets and other (net of tax)					0.12						0.04						0.04						0.04
Income tax adjustments					(0.13	)					(0.05	)					(0.08	)					-
Total adjustments to diluted EPS (net of tax)					0.30						0.07						0.06						0.16
Adjusted EPS				$	3.35					$	1.01					$	1.22					$	1.12

* Does not foot due to rounding

Fiscal 2015

										Fiscal 2015
										Quarters Ended
										June 27,						March 28,						December 27,						September 27,
				Fiscal 2015*						2015						2015						2014						2014
				$ in thousands, except per share amounts
GAAP selling, general and administrative expenses				$	2,274,642					$	561,585					$	555,148					$	573,962					$	583,946
Amortization of intangible assets and other					54,049						19,603						11,187						11,052						12,208
Adjusted operating expenses				$	2,220,593					$	541,982					$	543,961					$	562,910					$	571,738
GAAP operating income				$	827,673					$	180,477					$	203,712					$	250,287					$	193,197
Restructuring, integration and other expenses					90,805						43,734						15,494						13,257						18,320
Amortization of intangible assets and other					54,049						19,603						11,187						11,052						12,208
Total adjustments					144,854						63,337						26,681						24,309						30,528
Adjusted operating income				$	972,527					$	243,814					$	230,393					$	274,596					$	223,725
GAAP other (expense) income, net				$	(19,043	)				$	(3,080	)				$	(8,945	)				$	(5,524	)				$	(1,493	)
Venezuela foreign currency loss					3,737						3,737						-						-						-
Adjusted other (expense) income, net				$	(15,306	)				$	657					$	(8,945	)				$	(5,524	)				$	(1,493	)
Total adjustments to income before income taxes				$	148,591					$	67,074					$	26,681					$	24,309					$	30,528
GAAP net income				$	571,913					$	158,733					$	121,529					$	163,706					$	127,946
Restructuring, integration and other expenses (net of tax)					65,897						30,514						12,035						10,188						13,160
Amortization of intangible assets and other (net of tax)					36,643						12,287						7,708						7,675						8,973
Venezuela foreign currency loss (net of tax)					3,737						3,737						-						-						-
Income tax adjustments					(55,101	)					(45,770	)					2,192						(5,597	)					(5,926	)
Total adjustments to net income (net of tax)					51,176						768						21,935						12,266						16,207
Adjusted net income				$	623,089					$	159,501					$	143,464					$	175,972					$	144,153
GAAP diluted EPS				$	4.12					$	1.15					$	0.88					$	1.18					$	0.91
Restructuring, integration and other expenses (net of tax)					0.47						0.22						0.09						0.07						0.09
Amortization of intangible assets and other (net of tax)					0.26						0.09						0.06						0.06						0.07
Venezuela foreign currency loss (net of tax)					0.03						0.03						-						-						-
Income tax adjustments					(0.39	)					(0.33	)					0.02						(0.04	)					(0.04	)
Total adjustments to diluted EPS (net of tax)					0.37						0.01						0.16						0.09						0.12
Adjusted EPS*				$	4.49					$	1.16					$	1.04					$	1.27					$	1.02

* Does not foot due to rounding

Organic Sales

Organic sales is defined as reported sales adjusted for the impact of more than insignificant acquisitions and divestitures by adjusting Avnet's prior periods to include the sales of acquired businesses and exclude the sales of divested businesses as if the acquisitions and divestitures had occurred at the beginning of the earliest period presented. In addition, fiscal 2016 sales are adjusted for the estimated impact of the extra week of sales in the first quarter of fiscal 2016 due to it being a 14-week quarter and 53-week fiscal year. Organic sales in constant currency is defined as organic sales (as defined above) excluding the impact of changes in foreign currency exchange rates as discussed above.

The following tables present the reconciliation of reported sales to organic sales for the third quarter and first nine months of fiscal 2016 and fiscal 2015.

				Third Quarter Ended					Nine Months Ended
														Acquisitions/
				As Reported and					As					Divestitures (1)/
				Organic Sales -					Reported -					Estimated						Organic Sales -
				Fiscal 2016					Fiscal 2016					Extra Week (2)						Fiscal 2016
				(in thousands)
Avnet, Inc.				$	6,174,716				$	19,992,467				$	(464,098	)				$	19,528,369
EM					4,041,527					12,627,543					(300,000	)					12,327,543
TS					2,133,189					7,364,924					(164,098	)					7,200,826
EM
Americas				$	1,192,695				$	3,583,065				$	(82,000	)				$	3,501,065
EMEA					1,330,751					3,798,262					(92,000	)					3,706,262
Asia					1,518,081					5,246,216					(126,000	)					5,120,216
TS
Americas				$	1,241,209				$	4,375,343				$	(123,112	)				$	4,252,231
EMEA					615,824					2,098,981					(17,986	)					2,080,995
Asia					276,156					890,600					(23,000	)					867,600

				Third Quarter Ended															Nine Months Ended
				As Reported -					Acquisitions/					Organic Sales -					As Reported -					Acquisitions/					Organic Sales -
				Fiscal 2015					Divestitures (1)					Fiscal 2015					Fiscal 2015					Divestitures (1)					Fiscal 2015
				(in thousands)
Avnet, Inc.				$	6,736,860				$	21,246				$	6,758,106				$	21,128,326				$	94,110				$	21,222,436
EM					4,219,528					—					4,219,528					13,028,812					—					13,028,812
TS					2,517,332					21,246					2,538,578					8,099,514					94,110					8,193,624
EM
Americas				$	1,237,213				$	—				$	1,237,213				$	3,652,114				$	—				$	3,652,114
EMEA					1,251,873					—					1,251,873					3,759,678					—					3,759,678
Asia					1,730,442					—					1,730,442					5,617,020					—					5,617,020
TS
Americas				$	1,440,532				$	6,630				$	1,447,162				$	4,724,640				$	17,425				$	4,742,065
EMEA					717,196					14,616					731,812					2,246,822					76,685					2,323,507
Asia					359,604					—					359,604					1,128,052					—					1,128,052

(1)			Includes the following acquisitions:
			•			Orchestra Service Gmbh acquired in November 2015 in the TS EMEA Region
			•			ExitCertified Corporation acquired in January 2016 in the TS America Region
(2)			The impact of the additional week of sales in the first quarter of fiscal 2016 is estimated

															Sales																	Organic
															As Reported																	Sales
				Sales					Sales						Year-Year %						Organic					Organic						Year-Year %
				As Reported					As Reported						Change in						Sales					Sales						Change in
				Q3-Fiscal					Year-Year						Constant						Q3-Fiscal					Year-Year						Constant
				2016					% Change						Currency						2016					% Change						Currency
				(Dollars in thousands)
Avnet, Inc.				$	6,174,716				(8.3	)	%				(6.9	)	%				$	6,174,716				(8.6	)	%				(7.2	)	%
EM					4,041,527				(4.2	)					(3.3	)						4,041,527				(4.2	)					(3.3	)
TS					2,133,189				(15.3	)					(12.9	)						2,133,189				(16.0	)					(13.6	)
EM
Americas				$	1,192,695				(3.6	)	%				—						$	1,192,695				(3.6	)	%				—
EMEA					1,330,751				6.3						9.4		%					1,330,751				6.3						9.4		%
Asia/Pacific					1,518,081				(12.3	)					(12.3	)						1,518,081				(12.3	)					(12.3	)
TS
Americas				$	1,241,209				(13.8	)	%				—						$	1,241,209				(14.2	)	%				—
EMEA					615,824				(14.1	)					(10.8	)	%					615,824				(15.9	)					(12.6	)	%
Asia/Pacific					276,156				(23.2	)					(19.2	)						276,156				(23.2	)					(19.2	)

ROWC, ROCE and WC Velocity

The following tables (in thousands) presents the calculation for ROWC, ROCE and WC velocity.

							FY16 YTD							Q3 FY16							Q2 FY16							Q1 FY16
Sales							$	19,992,467						$	6,174,716						$	6,848,057						$	6,969,694
Sales, annualized (1)			(a)					26,490,019							24,698,864							27,392,228							26,385,270
Adjusted operating income (2)								700,892							205,223							255,258							240,411
Adjusted annualized operating income (1)			(b)					928,682							820,892							1,021,032							910,127
Adjusted effective tax rate (3)								27.6		%					27.6		%					27.6		%					27.6		%
Adjusted annualized operating income, after tax			(c)					672,273							594,244							739,125							658,841
Average monthly working capital
Accounts receivable								4,840,229							4,905,736							4,982,198							4,787,201
Inventories								2,766,662							2,787,825							2,747,160							2,745,479
Accounts payable								(3,184,831	)						(3,265,178	)						(3,256,725	)						(3,182,154	)
Average working capital			(d)				$	4,422,060						$	4,428,383						$	4,472,633						$	4,350,526
Average monthly capital employed			(e)				$	5,997,305						$	6,028,867						$	6,026,327						$	5,909,334
ROWC = (b) / (d)								21.0		%					18.5		%					22.8		%					20.9		%
WC Velocity = (a) / (d)								6.0							5.6							6.1							6.1
ROCE = (c) / (e)								11.2		%					9.9		%					12.3		%					11.2		%

							FY15							Q4 FY15							Q3 FY15							Q2 FY15							Q1 FY15
Sales							$	27,924,657						$	6,796,331						$	6,736,860						$	7,551,880						$	6,839,587
Sales, annualized			(a)					27,924,657							27,185,324							26,947,440							30,207,520							27,358,348
Adjusted operating income (2)								972,527							243,814							230,393							274,596							223,725
Adjusted annualized operating income			(b)					972,527							975,256							921,572							1,098,384							894,900
Adjusted effective tax rate (3)								27.7		%					27.7		%					27.7		%					27.7		%					27.7		%
Adjusted annualized operating income, after tax			(c)					703,332							705,305							666,481							794,351							647,192
Average monthly working capital
Accounts receivable								5,109,326							4,979,668							5,251,882							5,318,083							4,993,653
Inventories								2,667,351							2,593,545							2,564,071							2,700,424							2,729,194
Accounts payable								(3,274,382	)						(3,234,283	)						(3,344,479	)						(3,437,897	)						(3,231,037	)
Average working capital			(d)				$	4,502,295						$	4,338,930						$	4,471,474						$	4,580,610						$	4,491,810
Average monthly capital employed			(e)				$	6,077,926						$	5,898,475						$	6,028,015						$	6,161,858						$	6,101,274
ROWC = (b) / (d)								21.6		%					22.5		%					20.6		%					24.0		%					19.9		%
WC Velocity = (a) / (d)								6.2							6.3							6.0							6.6							6.1
ROCE = (c) / (e)								11.6		%					12.0		%					11.1		%					12.9		%					10.6		%

(1)			Annualized amounts are based on a 53-week fiscal year.
(2)			See reconciliation to GAAP amounts in the preceding tables in this Non-GAAP Financial Information section.
(3)			Adjusted effective tax rate for each quarterly period in a fiscal year is based upon the currently anticipated annual effective tax rate, excluding the tax effect of the income tax adjustments quantified above in the reconciliation to GAAP amounts in this Non-GAAP Financial Information section.

Teleconference and Upcoming Events

Avnet will host a quarterly teleconference today at 2:00 p.m. Eastern Time. Financial information, including financial statement reconciliations of GAAP to non-GAAP financial measures, will be available through www.ir.avnet.com. Please log onto the site 15 minutes prior to the start of the event to register or download any necessary software. An archive copy of the teleconference will also be available after the call.

For a listing of Avnet's upcoming events and other information, please visit Avnet's investor relations website at www.ir.avnet.com.

About Avnet

From components to cloud and design to disposal, Avnet, Inc. (NYSE:AVT) accelerates the success of customers who build, sell and use technology globally by providing them with a comprehensive portfolio of innovative products, services and solutions. Avnet is a Fortune 500 company with revenues of $27.9 billion in fiscal year 2015. For more information, visit www.avnet.com. (AVT_IR)

AVNET, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
				Third Quarters Ended												Nine Months Ended
				April 2,						March 28,						April 2,						March 28,
				2016						2015						2016						2015
				(Thousands, except per share data)
Sales				$	6,174,716					$	6,736,860					$	19,992,467					$	21,128,326
Cost of sales					5,437,888						5,962,506						17,685,995						18,721,003
Gross profit					736,828						774,354						2,306,472						2,407,323
Selling, general and administrative expenses					539,038						555,148						1,628,425						1,713,056
Restructuring, integration and other expenses					16,172						15,494						63,352						47,071
Operating income					181,618						203,712						614,695						647,196
Other income (expense), net					2,200						(8,945	)					(10,138	)					(15,963	)
Interest expense					(23,281	)					(23,871	)					(69,306	)					(71,936	)
Income before income taxes					160,537						170,896						535,251						559,297
Income tax expense					37,078						49,367						125,526						146,117
Net income				$	123,459					$	121,529					$	409,725					$	413,180
Earnings per share:
Basic				$	0.95					$	0.89					$	3.11					$	3.02
Diluted				$	0.94					$	0.88					$	3.05					$	2.97
Shares used to compute earnings per share:
Basic					129,811						136,046						131,834						136,965
Diluted					131,650						137,721						134,298						139,181
Cash dividends paid per common share				$	0.17					$	0.16					$	0.51					$	0.48

AVNET, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
				April 2,										June 27,
				2016										2015
				(Thousands)
ASSETS
Current assets:
Cash and cash equivalents				$	1,036,485									$	932,553
Receivables, net					4,874,179										5,054,307
Inventories					2,826,858										2,482,183
Prepaid and other current assets					200,579										173,030
Total current assets					8,938,101										8,642,073
Property, plant and equipment, net					610,747										568,779
Goodwill					1,295,406										1,278,756
Intangible assets, net					86,989										99,731
Other assets					194,217										210,614
Total assets				$	11,125,460									$	10,799,953
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term debt				$	706,742									$	331,115
Accounts payable					3,297,981										3,338,052
Accrued expenses and other					559,697										603,129
Total current liabilities					4,564,420										4,272,296
Long-term debt					1,610,539										1,646,501
Other liabilities					190,300										196,135
Total liabilities					6,365,259										6,114,932
Shareholders' equity					4,760,201										4,685,021
Total liabilities and shareholders' equity				$	11,125,460									$	10,799,953

AVNET, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
				Nine Months Ended
				April 2,											March 28,
				2016											2015
				(Thousands)
Cash flows from operating activities:
Net income				$	409,725										$	413,180
Non-cash and other reconciling items:
Depreciation					71,112											70,919
Amortization					21,183											32,630
Deferred income taxes					3,963											29,500
Stock-based compensation					47,724											48,890
Other, net					43,665											57,766
Changes in (net of effects from businesses acquired):
Receivables					181,723											(186,037	)
Inventories					(319,865	)										(89,994	)
Accounts payable					(74,510	)										118,449
Accrued expenses and other, net					(87,593	)										(210,751	)
Net cash flows provided by operating activities					297,127											284,552
Cash flows from financing activities:
Issuance of notes, net of issuance costs					542,043											—
Repayment of notes					(250,000	)										—
Borrowings (repayments) under accounts receivable securitization program, net					(400,000	)										110,000
Borrowings (repayments) of bank and revolving debt, net					448,468											(96,372	)
Repurchases of common stock					(334,177	)										(147,606	)
Dividends paid on common stock					(66,944	)										(65,602	)
Other, net					(12,028	)										(13,993	)
Net cash flows used for financing activities					(72,638	)										(213,573	)
Cash flows from investing activities:
Purchases of property, plant and equipment					(111,070	)										(133,422	)
Acquisitions of businesses, net of cash acquired					(19,675	)										—
Other, net					8,436											(8,765	)
Net cash flows used for investing activities					(122,309	)										(142,187	)
Effect of currency exchange rate changes on cash and cash equivalents					1,752											(54,295	)
Cash and cash equivalents:
— increase (decrease)					103,932											(125,503	)
— at beginning of period					932,553											928,971
— at end of period				$	1,036,485										$	803,468

AVNET, INC. SEGMENT INFORMATION (UNAUDITED)
				Third Quarters Ended												Nine Months Ended
				April 2,						March 28,						April 2,						March 28,
				2016						2015						2016*						2015
				(Millions)
Sales:
Electronics Marketing				$	4,041.5					$	4,219.5					$	12,627.5					$	13,028.8
Technology Solutions					2,133.2						2,517.3						7,364.9						8,099.5
Avnet Sales				$	6,174.7					$	6,736.8					$	19,992.5					$	21,128.3
Operating Income (Expense):
Electronics Marketing				$	183.3					$	197.3					$	570.3					$	591.4
Technology Solutions					55.5						68.1						247.1						248.1
Corporate					(33.5	)					(35.0	)					(116.5	)					(110.8	)
					205.2						230.4						700.9						728.7
Restructuring, integration and other expenses					(16.2	)					(15.5	)					(63.4	)					(47.1	)
Amortization of intangible assets and other					(7.4	)					(11.2	)					(22.8	)					(34.4	)
Operating Income				$	181.6					$	203.7					$	614.7					$	647.2

* Sub-totals and totals may not foot due to rounding

View source version on businesswire.com: http://www.businesswire.com/news/home/20160428005539/en/

Investor Relations Contact
Avnet, Inc.
Vincent Keenan
Investor Relations
(480) 643-7053
investorrelations@avnet.com

Source: Avnet, Inc.

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