0000008858false00000088582021-10-282021-10-28

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

__________________

FORM 8-K

CURRENT REPORT PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

__________________

Date of Report (Date of earliest event reported)    October 28, 2021

AVNET, INC.

(Exact name of registrant as specified in its charter)

New York

 

1-4224

 

11-1890605

(State or other jurisdiction

 

(Commission

 

(IRS Employer

of incorporation)

 

File Number)

 

Identification No.)

2211 South 47th Street, Phoenix, Arizona

 

85034

(Address of principal executive offices)

 

(Zip Code)

(480) 643-2000

(Registrant’s telephone number, including area code.)

N/A

(Former name or former address, if changed since last report.)

Securities registered or to be registered pursuant to Section 12(b) of the Act:

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered:

Common stock, par value $1.00 per share

 

AVT

 

NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 2.02     Results of Operations and Financial Condition.

On October 28, 2021, Avnet, Inc. (the “Company”) issued a press release announcing its first quarter results of operations for fiscal 2022. A copy of the press release is attached hereto as Exhibit 99.1.

The information in this Current Report on Form 8-K and the exhibit attached hereto are being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that section, nor shall they be deemed incorporated by reference in any filing under the Securities Act of 1933 except as shall be expressly set forth in such filing.

Item 9.01     Financial Statements and Exhibits.

(d) Exhibits.

The following materials are attached as exhibits to this Current Report on Form 8-K:

Exhibit
Number

   

Description

 

 

 

99.1

 

Press Release, dated October 28, 2021.

104

Cover Page Interactive Data File (formatted in Inline XBRL and contained in Exhibit 101).

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: October 28, 2021

AVNET, INC.

By:

/s/ Thomas Liguori

Name: Thomas Liguori

Title: Chief Financial Officer

Exhibit 99.1

Graphic

Avnet Reports First Quarter Fiscal 2022 Financial Results

First quarter sales of $5.6 billion, up 18.2% year over year with diluted EPS of $1.10

First quarter adjusted diluted EPS of $1.22

Electronic Components and Farnell operating margins increased to 3.2% and 10.9%, respectively

PHOENIX – October 28, 2021 Avnet, Inc. (Nasdaq: AVT) today announced results for its first quarter ended October 2, 2021.

Commenting on the Company’s financial results, Avnet Chief Executive Officer Phil Gallagher stated, “Building upon our solid performance in fiscal 2021, we were pleased to start off fiscal 2022 with a strong first quarter. We delivered another consecutive quarter of record sales in both our Electronic Components and Farnell businesses and reached our respective short-term operating margin targets of 3% and 10%. We are continuing to strengthen Avnet’s position through driving execution and accelerating the growth of our higher margin Farnell business, while also working closely with our supplier partners to balance supply and demand across the supply chain. We expect the current market environment to extend well into calendar year 2022 and will continue to help our customers navigate component availability challenges by serving as a vital link at the center of the technology supply chain. As we look ahead to the next quarter, we expect to benefit from continued operating improvements to our business and strong market demand to deliver results in line with our fiscal first quarter performance.”

Fiscal First Quarter Key Financial Highlights:

Sales of $5.6 billion, up from $5.2 billion in the prior quarter and exceeding guidance.
oOn a constant currency basis, sales grew 17.5% year over year and 7.6% sequentially.
oOrganic sales increased by 33.7% on a year over year basis, after adjusting for the impact of TI sales and the extra week of sales in the first quarter of FY21.
GAAP diluted earnings per share of $1.10, compared with a GAAP diluted earnings per share of $0.85 in the prior quarter.
oNon-GAAP adjusted diluted earnings per share of $1.22, compared with $1.12 in the prior quarter.
Farnell operating margins increased sequentially 263 basis points to 10.9%.
Electronic Components operating margins increased sequentially 8 basis points to 3.2%.
Returned $23.9 million to shareholders in dividends and reinitiated the company’s share repurchase program.


Key Financial Metrics

($ in millions, except per share data)

First Quarter Results (GAAP)

Sep – 21

   

Sep – 20

   

Change Y/Y

   

Jun – 21

   

Change Q/Q

Sales

$

5,584.7

$

4,723.1

18.2

%

$

5,226.7

6.9

%

Operating Income

168.2

18.5

809.3

%

118.0

42.6

%

Operating Income Margin

3.0

%

0.4

%

262

bps

2.3

%

75

bps

Diluted Earnings (Loss) Per Share (EPS)

$

1.10

$

(0.19)

678.9

%

$

0.85

29.4

%

First Quarter Results (Non-GAAP)(1)

Sep – 21

   

Sep – 20

   

Change Y/Y

   

Jun – 21

   

Change Q/Q

Sales

$

5,584.7

$

4,723.1

18.2

%

$

5,226.7

6.9

%

Adjusted Operating Income

178.8

65.1

174.6

%

151.8

17.7

%

Adjusted Operating Income Margin

3.2

%

1.4

%

182

bps

2.9

%

30

bps

Adjusted Diluted Earnings Per Share (EPS)

$

1.22

$

0.36

238.9

%

$

1.12

8.9

%

Segment and Geographical Mix

Sep – 21

   

Sep – 20

   

Change Y/Y

Jun – 21

   

Change Q/Q

Electronic Components (EC) Sales

$

5,129.5

$

4,382.2

17.1

%

$

4,785.3

7.2

%

EC Operating Income Margin

3.2

%

1.9

%

124

bps

3.1

%

8

bps

Farnell Sales

$

455.2

$

340.9

33.5

%

$

441.4

3.1

%

Farnell Operating Income Margin

10.9

%

3.5

%

738

bps

8.3

%

263

bps

Americas Sales

$

1,258.8

$

1,205.7

4.4

%

$

1,194.4

5.4

%

EMEA Sales

1,747.6

1,480.7

18.0

%

1,737.3

0.6

%

Asia Sales

2,578.3

2,036.7

26.6

%

2,295.0

12.3

%


(1)A reconciliation of non-GAAP financial measures to GAAP financial measures is presented in the “Non-GAAP Financial Information” section of this press release.

Outlook for the Second Quarter of Fiscal 2022 Ending on January 1, 2022

    

Guidance Range

    

Midpoint

Sales

$5.3B – $5.7B

$5.5B

Adjusted Diluted EPS(1)

$1.20 – $1.30

$1.25


(1)A reconciliation of non-GAAP guidance to GAAP guidance is presented in the “Non-GAAP Financial Information” section of this press release.

The above guidance is based upon current market conditions and inventory availability and reflects expected seasonality from the first fiscal quarter to the second fiscal quarter. The above guidance also excludes amortization of intangibles, any potential restructuring, integration, and other expenses and certain income tax adjustments. The above guidance assumes an effective tax rate of between 19% and 23%. The above guidance assumes 101 million average diluted shares outstanding and average U.S. Dollar to Euro and GBP currency exchange rates are as shown below:

Q2 Fiscal

2022

Q1 Fiscal

Q2 Fiscal

Guidance

    

2022

    

2021

Euro

$1.16

$1.18

$1.19

GBP

$1.37

$1.38

$1.32


Today’s Conference Call and Webcast Details

Avnet will host a quarterly webcast and teleconference today at 1:30 p.m. PT and 4:30 p.m. ET to discuss its financial results and provide a corporate update. The webcast can be accessed via Avnet’s Investor Relations web page at: https://ir.avnet.com.

Those who would still like to participate in the live call can dial 877-407-8112 or 201-689-8840. A replay of the conference call will be available for 90 days, through January 28, 2022 at 5:00 p.m. ET, and can be accessed by dialing: 877-660-6853 or 201-612-7415 and using Conference ID: 13722717.

Forward-Looking Statements

This document contains 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, with respect to the financial condition, results of operations and business of the Company. You can find many of these statements by looking for words like “believes,” “projected”, “plans,” “expects,” “anticipates,” “should,” “will,” “may,” “estimates” or similar expressions. These forward-looking statements are subject to numerous assumptions, risks and uncertainties. The following important factors, in addition to those discussed elsewhere in the Company’s Annual Report on Form 10-K for the fiscal year ended July 3, 2021 and subsequent Quarterly Reports on Form 10-Q and Current Reports on Form 8-K, could affect the Company’s future results of operations, and could cause those results or other outcomes to differ materially from those expressed or implied in the forward-looking statements: the scope and duration of the COVID-19 pandemic and its impact on global economic systems, access to financial markets and the Company’s employees, operations, customers, and supply chain; competitive pressures among distributors of electronic components; an industry down-cycle in semiconductors; relationships with key suppliers and allocations of products by suppliers; risks relating to the Company’s international sales and operations, including risks relating to the ability to repatriate cash, foreign currency fluctuations, inflation, duties and taxes, and compliance with international and U.S. laws; risks relating to acquisitions, divestitures and investments; adverse effects on the Company’s supply chain, operations of its distribution centers, shipping costs, third-party service providers, customers and suppliers, including as a result of issues caused by natural and weather-related disasters, pandemics and health related crisis, warehouse modernization and relocation efforts; risks related to cyber-attacks, other privacy and security incidents and information systems failures, including related to current or future implementations, integrations or upgrades; general economic and business conditions (domestic, foreign and global) affecting the Company’s operations and financial performance and, indirectly, the Company’s credit ratings, debt covenant compliance, liquidity and access to financing; constraints on employee retention and hiring; geopolitical events; and legislative or regulatory changes affecting the Company’s businesses.


Any forward-looking statement speaks only as of the date on which that statement is made. Except as required by law, the Company assumes no obligation to update any forward-looking statement to reflect events or circumstances that occur after the date on which the statement is made.

About Avnet

As a leading global technology distributor and solutions provider, Avnet has served customers’ evolving needs for an entire century. We support customers at each stage of a product’s lifecycle, from idea to design and from prototype to production. Our unique position at the center of the technology value chain enables us to accelerate the design and supply stages of product development so customers can realize revenue faster. Decade after decade, Avnet helps its customers and suppliers around the world realize the transformative possibilities of technology. Learn more about Avnet at www.avnet.com. (AVT_IR)

Investor Relations Contacts

Joe Burke, 480-643-7431

Joseph.Burke@avnet.com

Media Relations Contact

Jeanne Forbis, 480-643-7499

Jeanne.Forbis@Avnet.com


AVNET, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

First Quarters Ended

 

    

October 2,

    

October 3,

 

2021

2020

 

(Thousands, except per share data)

 

Sales

$

5,584,695

$

4,723,059

Cost of sales

 

4,925,002

 

4,206,979

Gross profit

 

659,693

 

516,080

Selling, general and administrative expenses

 

486,178

 

471,158

Restructuring, integration and other expenses

 

5,272

 

26,420

Operating income

 

168,243

 

18,502

Other expense, net

 

(409)

 

(19,498)

Interest and other financing expenses, net

 

(22,844)

 

(22,301)

Income (loss) before taxes

 

144,990

 

(23,297)

Income tax expense (benefit)

 

33,672

 

(4,408)

Net income (loss)

$

111,318

$

(18,889)

Earnings (loss) per share:

Basic

$

1.12

$

(0.19)

Diluted

$

1.10

$

(0.19)

Shares used to compute earnings per share:

Basic

 

99,647

 

98,897

Diluted

 

101,116

 

98,897

Cash dividends paid per common share

$

0.24

$

0.21


AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

    

October 2,

    

July 3,

 

2021

2021

 

(Thousands)

 

ASSETS

Current assets:

Cash and cash equivalents

$

299,101

$

199,691

Receivables

 

3,720,296

 

3,576,130

Inventories

 

3,283,825

 

3,236,837

Prepaid and other current assets

 

161,845

 

150,763

Total current assets

 

7,465,067

 

7,163,421

Property, plant and equipment, net

 

351,873

 

368,452

Goodwill

 

823,953

 

838,105

Intangible assets, net

 

23,074

 

28,539

Operating lease assets

257,614

265,988

Other assets

 

289,728

 

260,917

Total assets

$

9,211,309

$

8,925,422

LIABILITIES AND SHAREHOLDERS’ EQUITY

Current liabilities:

Short-term debt

$

$

23,078

Accounts payable

 

2,467,743

 

2,401,357

Accrued expenses and other

588,340

572,457

Short-term operating lease liabilities

 

57,256

 

58,346

Total current liabilities

 

3,113,339

 

3,055,238

Long-term debt

 

1,389,689

 

1,191,329

Long-term operating lease liabilities

230,350

239,838

Other liabilities

 

332,332

 

354,833

Total liabilities

5,065,710

4,841,238

Shareholders’ equity

 

4,145,599

 

4,084,184

Total liabilities and shareholders’ equity

$

9,211,309

$

8,925,422


AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

First Quarters Ended

 

    

October 2, 2021

    

October 3, 2020

 

(Thousands)

 

Cash flows from operating activities:

Net income (loss)

$

111,318

$

(18,889)

Non-cash and other reconciling items:

Depreciation

 

21,833

 

21,845

Amortization

 

5,210

 

20,117

Amortization of operating lease assets

13,751

 

14,079

Deferred income taxes

 

(3,259)

 

6,614

Stock-based compensation

 

9,178

 

4,961

Impairments

15,166

Other, net

 

2,603

 

10,898

Changes in (net of effects from businesses acquired and divested):

Receivables

 

(169,992)

 

(7,116)

Inventories

 

(73,971)

 

(136,426)

Accounts payable

 

85,217

 

228,740

Accrued expenses and other, net

 

(32,856)

 

(37,545)

Net cash flows (used) provided by operating activities

 

(30,968)

 

122,444

Cash flows from financing activities:

Borrowings under accounts receivable securitization, net

 

59,300

 

166,900

Borrowings (repayments) under senior unsecured credit facility, net

 

118,716

 

(234,190)

Borrowings (repayments) under bank credit facilities and other debt, net

(734)

(545)

Repurchases of common stock

 

(9,566)

 

Dividends paid on common stock

 

(23,893)

 

(20,756)

Other, net

(1,337)

281

Net cash flows provided (used) by financing activities

 

142,486

 

(88,310)

Cash flows from investing activities:

Purchases of property, plant and equipment

 

(12,025)

 

(19,998)

Acquisitions of assets and businesses

 

 

(18,700)

Other, net

 

318

 

753

Net cash flows used for investing activities

 

(11,707)

 

(37,945)

Effect of currency exchange rate changes on cash and cash equivalents

 

(401)

 

9,829

Cash and cash equivalents:

— increase

99,410

6,018

— at beginning of period

 

199,691

 

477,038

— at end of period

$

299,101

$

483,056


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 certain non-GAAP financial information including (i) adjusted operating income, (ii) adjusted operating expenses, (iii) adjusted other income (expense), (iv) adjusted income before income taxes, (v) adjusted income tax expense (benefit), (vi) adjusted diluted earnings per share, and (vii) sales adjusted for the impact of significant 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 “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 on sales, income or expense items for subsidiaries reporting in currencies other than the U.S. Dollar, the Company adjusts the average exchange rates used in current periods to be consistent with the average exchange rates in effect during the comparative period.

Management believes that operating income and operating expenses adjusted for restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other, are useful measures to help investors better assess and understand the Company’s operating performance. This is especially the case 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 most cases, for measuring performance for compensation purposes. Management measures operating income for its reportable segments excluding restructuring, integration and other expenses, goodwill and intangible asset impairment expenses and amortization of acquired intangible assets and other.

Additional non-GAAP metrics management uses is adjusted operating income margin, which is defined as adjusted operating income (as defined above) divided by sales.

Management also believes income tax expense (benefit), net income and diluted earnings (loss) per share adjusted for the impact of the items described above and certain items impacting other income (expense) and income tax expense (benefit) are useful to investors because they provide a measure of the Company’s net profitability on a more comparable basis to historical periods and provide a more meaningful basis for forecasting future performance. Adjustments to income tax expense (benefit) and the effective income tax rate include the effect of changes in tax laws, certain changes in valuation


allowances and unrecognized tax benefits, income tax audit settlements and adjustments to the adjusted interim effective tax rate based upon the expected annual adjusted effective tax rate. Additionally, because of management’s focus on generating shareholder value, of which net profitability is a primary driver, management believes net income (loss) and diluted earnings (loss) per share excluding the impact of these items provides an important measure of the Company’s net profitability for the investing public.

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 2022

Quarter Ended

October 2, 2021*

($ in thousands, except per share amounts)

GAAP selling, general and administrative expenses

$

486,178

Amortization of intangible assets and other

(5,239)

Adjusted operating expenses

480,939

GAAP operating income

$

168,243

Restructuring, integration and other expenses

5,272

Amortization of intangible assets and other

5,239

Adjusted operating income

178,754

GAAP income before income taxes

$

144,990

Restructuring, integration and other expenses

5,272

Amortization of intangible assets and other

5,239

Other expenses

441

Adjusted income before income taxes

155,942

GAAP income tax expense

$

33,672

Restructuring, integration and other expenses

1,012

Amortization of intangible assets and other

998

Other expenses

136

Income tax expense items, net

(3,070)

Adjusted income tax expense

32,748

GAAP net income

$

111,318

Restructuring, integration and other expenses (net of tax)

4,260

Amortization of intangible assets and other (net of tax)

4,241

Other expenses (net of tax)

305

Income tax expense items, net

3,070

Adjusted net income

123,194

GAAP diluted earnings per share

$

1.10

Restructuring, integration and other expenses (net of tax)

0.04

Amortization of intangible assets and other (net of tax)

0.04

Other expenses (net of tax)

0.00

Income tax expense items, net

0.03

Adjusted diluted EPS

1.22


* May not foot due to rounding.


Quarters Ended

Fiscal Year

July 3,

April 3,

January 2,

October 3,

2021*

  

2021

2021

2021

2020

($ in thousands, except per share amounts)

GAAP selling, general and administrative expenses

$

1,874,831

$

498,497

$

463,092

$

442,084

$

471,158

Amortization of intangible assets and other

(41,245)

(5,370)

(5,283)

(10,417)

(20,175)

Adjusted operating expenses

1,833,586

493,127

457,809

431,667

450,983

GAAP operating income

$

281,408

$

118,001

$

87,684

$

57,221

$

18,502

Restructuring, integration and other expenses

84,391

28,449

17,574

11,948

26,420

Amortization of intangible assets and other

41,245

5,370

5,283

10,417

20,175

Adjusted operating income

407,044

151,820

110,541

79,586

65,097

GAAP income (loss) before income taxes

$

172,929

$

91,701

$

70,121

$

34,403

$

(23,297)

Restructuring, integration and other expenses

84,391

28,449

17,574

11,948

26,420

Amortization of intangible assets and other

41,245

5,370

5,283

10,417

20,175

Other expenses - equity investment impairments and other

20,413

5,139

-

51

15,223

Adjusted income before income taxes

318,978

130,659

92,978

56,819

38,521

GAAP income tax expense (benefit)

$

(20,185)

$

6,346

$

(37,363)

$

15,240

$

(4,408)

Restructuring, integration and other expenses

17,468

6,172

4,118

2,577

4,601

Amortization of intangible assets and other

9,099

1,025

1,008

2,037

5,029

Other expenses - equity investment impairments and other

90

38

-

26

26

Income tax benefit (expense) items, net

41,275

4,091

50,682

(10,788)

(2,710)

Adjusted income tax expense

47,747

17,672

18,445

9,092

2,538

GAAP net income (loss)

$

193,114

$

85,355

$

107,484

$

19,163

$

(18,889)

Restructuring, integration and other expenses (net of tax)

66,923

22,277

13,456

9,371

21,819

Amortization of intangible assets and other (net of tax)

32,146

4,345

4,275

8,380

15,146

Other expenses - equity investment impairments and other (net of tax)

20,323

5,101

-

25

15,197

Income tax (benefit) expense items, net

(41,275)

(4,091)

(50,682)

10,788

2,710

Adjusted net income

271,231

112,987

74,533

47,727

35,983

GAAP diluted earnings (loss) per share

$

1.93

$

0.85

$

1.07

$

0.19

$

(0.19)

Restructuring, integration and other expenses (net of tax)

0.67

0.22

0.13

0.09

0.22

Amortization of intangible assets and other (net of tax)

0.32

0.04

0.04

0.09

0.15

Other expenses - equity investment impairments and other (net of tax)

0.20

0.05

-

0.00

0.15

Income tax (benefit) expense items, net

(0.41)

(0.04)

(0.50)

0.11

0.03

Adjusted diluted EPS

2.71

1.12

0.74

0.48

0.36


* May not foot/cross foot due to rounding and differences in average diluted shares between quarterly periods compared to the fiscal year to date.


Sales of TI Products

In December 2020, the termination of the Company’s electronic components distribution agreement with Texas Instruments (“TI”) was completed. Sales of TI products by quarter are outlined in the following table:

First Quarter

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

October 2,

July 3,

April 3,

January 2,

October 3,

2021

2021

2021

2021

2020

(in millions)

Sales of TI Products

$

-

$

-

$

1.7

$

49.6

$

241.0

Organic Sales

Organic sales is defined as sales adjusted for the impact of significant acquisitions, divestitures and other items by adjusting Avnet’s prior and current periods (if necessary) 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. Additionally, fiscal 2021 sales are adjusted for the estimated impact of the extra week of sales in the first quarter of fiscal 2021 due to the 14-week fiscal first quarter and the 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 a result of declining sales due to the termination of the TI distribution agreement discussed further above, organic sales growth rates have also been adjusted to exclude sales of TI products.

Reported sales were the same as organic sales for the first quarter of fiscal 2022. The following table presents the reconciliation of reported sales to organic sales for the first quarter fiscal 2021.

Estimated

Organic

Sales

Extra

Organic

Sales

As Reported

Week in

Sales

TI Sales

Adj for TI

Q1-Fiscal

Q1-Fiscal

Q1-Fiscal

Q1-Fiscal

Q1-Fiscal

    

2021

    

2021(1)

    

2021

    

2021(2)

    

2021(2)

Avnet

$

4,723.1

$

306.0

$

4,417.1

$

241.0

$

4,176.1

Avnet by region

Americas

$

1,205.7

$

77.0

$

1,128.7

$

68.5

$

1,060.2

EMEA

 

1,480.7

 

97.0

 

1,383.7

 

102.9

 

1,280.8

Asia

 

2,036.7

 

132.0

 

1,904.7

 

69.6

 

1,835.1

Avnet by segment

EC

$

4,382.2

$

284.0

$

4,098.2

$

241.0

$

3,857.2

Farnell

 

340.9

 

22.0

 

318.9

 

 

318.9


(1)The impact of the additional week of sales in the first quarter of fiscal 2021 is estimated.
(2)Sales adjusted for the impact of the termination of the TI distribution contract.


The following table presents reported and organic sales growth rates for the first quarter of fiscal 2022 compared to fiscal 2021.

Organic

Sales

Organic

Sales

As Reported

Sales

Adj for TI

Sales

Year-Year %

Organic

Year-Year %

Year-Year %

As Reported

Change in

Sales

Change in

Change in

Year-Year

Constant

Year-Year

Constant

Constant

    

% Change

    

Currency

    

% Change

    

Currency

    

Currency(1)

Avnet

18.2

%

17.5

%

26.4

%

 

25.6

%

 

32.9

%

Avnet by region

Americas

4.4

%

4.4

%

11.5

%

 

11.5

%

 

18.7

%

EMEA

18.0

16.2

26.3

 

24.3

 

34.3

Asia

26.6

26.4

35.4

 

35.2

 

40.3

Avnet by segment

EC

17.1

%

16.5

%

25.2

%

 

24.6

%

 

32.3

%

Farnell

33.5

30.1

42.7

 

39.0

 

39.0


(1)Sales growth rates excluding the impact of the termination of the TI distribution agreement.

Historical Segment Financial Information

Fiscal 2022

First Quarter

October 2, 2021*

(in millions)

Sales:

Electronic Components

$

5,129.5

Farnell

455.2

Avnet sales

$

5,584.7

Operating income:

Electronic Components

$

162.4

Farnell

49.6

212.0

Corporate expenses

(33.3)

Restructuring, integration and other expenses

(5.3)

Amortization of acquired intangible assets and other

(5.2)

Avnet operating income

$

168.2

Sales by geographic area:

Americas

$

1,258.8

EMEA

1,747.6

Asia

2,578.3

Avnet sales

$

5,584.7


* May not foot due to rounding.


Fiscal Year 2021

Quarters Ended

Fourth Quarter

Third Quarter

Second Quarter

First Quarter

Fiscal Year

July 3,

April 3,

January 2,

October 3,

2021*

2021

2021

2021

2020

(in millions)

Sales:

Electronic Components

$

18,030.5

$

4,785.3

$

4,520.6

$

4,342.4

$

4,382.2

Farnell

1,504.2

441.4

396.1

325.8

340.9

Avnet

$

19,534.7

$

5,226.7

$

4,916.7

$

4,668.2

$

4,723.1

Operating income:

Electronic Components

$

454.8

$

147.8

$

118.6

$

103.9

$

84.4

Farnell

86.9

36.5

23.9

14.6

12.0

541.7

184.3

142.5

118.5

96.4

Corporate expenses

(134.7)

(32.5)

(31.9)

(39.0)

(31.3)

Restructuring, integration and other expenses

(84.4)

(28.4)

(17.6)

(11.9)

(26.4)

Amortization of acquired intangible assets and other

(41.2)

(5.4)

(5.3)

(10.4)

(20.2)

Avnet operating income

$

281.4

$

118.0

$

87.7

$

57.2

$

18.5

Sales by geographic area:

Americas

$

4,662.5

$

1,194.4

$

1,161.0

$

1,101.5

$

1,205.7

EMEA

6,149.9

1,737.3

1,585.6

1,346.3

1,480.7

Asia

8,722.3

2,295.0

2,170.1

2,220.4

2,036.7

Avnet

$

19,534.7

$

5,226.7

$

4,916.7

$

4,668.2

$

4,723.1


* May not foot/cross foot due to rounding.

Guidance Reconciliation

The following table presents the reconciliation of non-GAAP adjusted diluted earnings per share guidance to the expected GAAP diluted earnings per share guidance for the second quarter of fiscal 2022.