8-K - AVT - Equibles

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) January 26, 2022

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)
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☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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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 January 26, 2022, Avnet, Inc. (the “Company”) issued a press release announcing its second 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 January 26, 2022.

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: January 26, 2022	AVNET, INC.


	By:	/s/ Thomas Liguori
		Name: Thomas Liguori
		Title: Chief Financial Officer

Exhibit 99.1

Avnet Reports Second Quarter Fiscal 2022 Financial Results

Second quarter sales of $5.9 billion, up 25.6% year over year with diluted EPS of $1.50

Second quarter adjusted diluted EPS of $1.51

Electronic Components and Farnell operating margins increased to 3.5% and 13.7%, respectively

PHOENIX – January 26, 2022 – Avnet, Inc. (Nasdaq: AVT) today announced results for its second quarter ended January 1, 2022.

Commenting on the Company’s financial results, Avnet Chief Executive Officer Phil Gallagher stated, “We’re pleased to have delivered another quarter of strong sales and margin expansion in both our Electronic Components and Farnell businesses, contributing to a solid first half to our fiscal year 2022. Our results reflect our team’s continued ability to execute, driving operating strength and organic growth across all regions, with a notable performance in the Americas. As we progress through the second half of fiscal year 2022, we expect to continue to benefit from the favorable demand environment as well as from our investments in e-commerce and in expanding customer relationships.”

Fiscal Second Quarter Key Financial Highlights:

●	Sales of $5.9 billion, up from $4.7 billion in the prior year and exceeding guidance.
o	On a constant currency basis, sales grew 27.4% year over year and 6.1% sequentially.
---	---
●	GAAP diluted earnings per share of $1.50, compared with $0.19 in the prior year.
---	---
o	Non-GAAP adjusted diluted earnings per share of $1.51, compared with $0.48 in the prior year.
---	---
●	Farnell operating margins increased 276 basis points sequentially to 13.7%.
---	---
●	Electronic Components operating margins increased 31 basis points sequentially to 3.5%, supported by growth across all regions.
---	---
●	Returned $23.7 million to shareholders in dividends, with the dividend payout increasing 14% year over year.
---	---

Key Financial Metrics

($ in millions, except per share data)


Second Quarter Results (GAAP)
	Dec – 21			****	Dec – 20			****	Change Y/Y		****	Sep – 21			****	Change Q/Q
Sales	$	5,865.2			$	4,668.2			25.6	%		$	5,584.7			5.0	%
Operating Income		211.7				57.2			269.9	%			168.2			25.8	%
Operating Income Margin		3.6	%			1.2	%		238	bps			3.0	%		60	bps
Diluted Earnings Per Share (EPS)	$	1.50			$	0.19			689.5	%		$	1.10			36.4	%
Second Quarter Results (Non-GAAP)^(1)^
	Dec – 21			****	Dec – 20			****	Change Y/Y		****	Sep – 21			****	Change Q/Q
Sales	$	5,865.2			$	4,668.2			25.6	%		$	5,584.7			5.0	%
Adjusted Operating Income		215.5				79.6			170.7	%			178.8			20.5	%
Adjusted Operating Income Margin		3.7	%			1.7	%		197	bps			3.2	%		47	bps
Adjusted Diluted Earnings Per Share (EPS)	$	1.51			$	0.48			214.6	%		$	1.22			23.8	%
Segment and Geographical Mix
	Dec – 21			****	Dec – 20			****	Change Y/Y			Sep – 21			****	Change Q/Q
Electronic Components (EC) Sales	$	5,424.3			$	4,342.4			24.9	%		$	5,129.5			5.8	%
EC Operating Income Margin		3.5	%			2.4	%		109	bps			3.2	%		31	bps
Farnell Sales	$	440.9			$	325.8			35.3	%		$	455.2			(3.2)	%
Farnell Operating Income Margin		13.7	%			4.5	%		917	bps			10.9	%		276	bps
Americas Sales	$	1,391.5			$	1,101.5			26.3	%		$	1,258.8			10.6	%
EMEA Sales		1,840.8				1,346.3			36.7	%			1,747.6			5.3	%
Asia Sales		2,632.9				2,220.4			18.6	%			2,578.3			2.1	%

(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 Third Quarter of Fiscal 2022 Ending on April 2, 2022


	Guidance Range	Midpoint
Sales	$5.4B – $5.8B	$5.6B
Adjusted Diluted EPS^(1)^	$1.45 – $1.55	$1.50

(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 traditional seasonality from the second fiscal quarter to the third fiscal quarter, primarily in the Asia region where sales traditionally decline due to Asia specific holidays. 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 20% and 24%. The above guidance assumes 100 million average diluted shares outstanding and average U.S. Dollar to Euro and GBP currency exchange rates are as shown below:


	Q3 Fiscal
	2022	Q2 Fiscal	Q3 Fiscal
	Guidance	2022	2021
Euro	$1.13	$1.14	$1.20
GBP	$1.36	$1.35	$1.38

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 April 26, 2022 at 5:00 p.m. ET, and can be accessed by dialing: 877-660-6853 or 201-612-7415 and using Conference ID: 13725008.

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)


	Second Quarters Ended				Six Months Ended				****
	January 1,		January 2,		January 1,		January 2,		****
	2022		2021		2022		2021		****
	(Thousands, except per share data)								****
Sales	$	5,865,217	$	4,668,172	$	11,449,912	$	9,391,232
Cost of sales		5,152,182		4,156,919		10,077,185		8,363,899
Gross profit		713,035		511,253		1,372,727		1,027,333
Selling, general and administrative expenses		501,363		442,084		987,540		913,241
Restructuring, integration and other expenses		—		11,948		5,272		38,369
Operating income		211,672		57,221		379,915		75,723
Other income (expense), net		1,737		(1,333)		1,327		(20,831)
Interest and other financing expenses, net		(21,630)		(21,485)		(44,474)		(43,787)
Income before taxes		191,779		34,403		336,768		11,105
Income tax expense		40,958		15,240		74,629		10,831
Net income	$	150,821	$	19,163	$	262,139	$	274

Earnings per share:
Basic	$	1.52	$	0.19	$	2.64	$	0.00
Diluted	$	1.50	$	0.19	$	2.60	$	0.00

Shares used to compute earnings per share:
Basic		99,032		98,937		99,340		98,917
Diluted		100,286		99,932		100,701		99,897
Cash dividends paid per common share	$	0.24	$	0.21	$	0.48	$	0.42

AVNET, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	January 1,		July 3,		****
	2022		2021		****
	(Thousands)				****
ASSETS
Current assets:
Cash and cash equivalents	$	167,818	$	199,691
Receivables		4,077,707		3,576,130
Inventories		3,542,723		3,236,837
Prepaid and other current assets		155,963		150,763
Total current assets		7,944,211		7,163,421
Property, plant and equipment, net		338,199		368,452
Goodwill		823,728		838,105
Intangible assets, net		19,271		28,539
Operating lease assets		248,020		265,988
Other assets		207,441		260,917
Total assets	$	9,580,870	$	8,925,422

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Short-term debt	$	350,000	$	23,078
Accounts payable		2,693,696		2,401,357
Accrued expenses and other		588,581		572,457
Short-term operating lease liabilities		56,228		58,346
Total current liabilities		3,688,505		3,055,238
Long-term debt		1,144,592		1,191,329
Long-term operating lease liabilities		221,294		239,838
Other liabilities		323,253		354,833
Total liabilities		5,377,644		4,841,238
Shareholders’ equity		4,203,226		4,084,184
Total liabilities and shareholders’ equity	$	9,580,870	$	8,925,422

AVNET, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Six Months Ended				****
	January 1, 2022		January 2, 2021		****
	(Thousands)				****
Cash flows from operating activities:
Net income	$	262,139	$	274

Non-cash and other reconciling items:
Depreciation		43,876		44,002
Amortization		8,964		30,474
Amortization of operating lease assets		27,426		28,111
Deferred income taxes		(4,451)		(311)
Stock-based compensation		19,556		15,331
Impairments		—		15,166
Other, net		10,281		17,004
Changes in (net of effects from businesses acquired and divested):
Receivables		(558,702)		(94,831)
Inventories		(359,755)		51,185
Accounts payable		328,574		130,768
Accrued expenses and other, net		(41,117)		(29,779)
Net cash flows (used) provided by operating activities		(263,209)		207,394

Cash flows from financing activities:
Borrowings under accounts receivable securitization, net		190,400		11,800
Borrowings (repayments) under senior unsecured credit facility, net		109,669		(239,430)
Repayments under bank credit facilities and other debt, net		(1,550)		(1,480)
Repurchases of common stock		(45,570)		—
Dividends paid on common stock		(47,642)		(41,512)
Other, net		(6,069)		(2,301)
Net cash flows provided (used) for financing activities		199,238		(272,923)

Cash flows from investing activities:
Purchases of property, plant and equipment		(22,116)		(30,022)
Acquisitions of assets and businesses		—		(18,371)
Other, net		68,270		725
Net cash flows provided (used) for investing activities		46,154		(47,668)
Effect of currency exchange rate changes on cash and cash equivalents		(14,056)		12,492
Cash and cash equivalents:
— decrease		(31,873)		(100,705)
— at beginning of period		199,691		477,038
— at end of period	$	167,818	$	376,333

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	Quarters Ended
	Year to Date	January 1,		October 2,
	2022*	2022*		2021*
	( in thousands, except per share amounts)

GAAP selling, general and administrative expenses		$	501,363	$	486,178
Amortization of intangible assets and other			(3,796)		(5,239)
Adjusted operating expenses			497,567		480,939

GAAP operating income		$	211,672	$	168,243
Restructuring, integration and other expenses			-		5,272
Amortization of intangible assets and other			3,796		5,239
Adjusted operating income			215,468		178,754

GAAP income before income taxes		$	191,779	$	144,990
Restructuring, integration and other expenses			-		5,272
Amortization of intangible assets and other			3,796		5,239
Other expenses			-		441
Adjusted income before income taxes			195,575		155,942

GAAP income tax expense		$	40,958	$	33,672
Restructuring, integration and other expenses			-		1,012
Amortization of intangible assets and other			704		998
Other expenses			-		136
Income tax benefit (expense) items, net			2,917		(3,070)
Adjusted income tax expense			44,579		32,748

GAAP net income		$	150,821	$	111,318
Restructuring, integration and other expenses (net of tax)			-		4,260
Amortization of intangible assets and other (net of tax)			3,092		4,241
Other expenses (net of tax)			-		305
Income tax (benefit) expense items, net			(2,917)		3,070
Adjusted net income			150,996		123,194

GAAP diluted earnings per share		$	1.50	$	1.10
Restructuring, integration and other expenses (net of tax)			-		0.04
Amortization of intangible assets and other (net of tax)			0.03		0.04
Other expenses (net of tax)			-		0.00
Income tax (benefit) expense items, net			(0.03)		0.03
Adjusted diluted EPS			1.51		1.22

All values are in US Dollars.

^*^ May not foot/cross 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		$	498,497	$	463,092	$	442,084	$	471,158
Amortization of intangible assets and other			(5,370)		(5,283)		(10,417)		(20,175)
Adjusted operating expenses			493,127		457,809		431,667		450,983

GAAP operating income		$	118,001	$	87,684	$	57,221	$	18,502
Restructuring, integration and other expenses			28,449		17,574		11,948		26,420
Amortization of intangible assets and other			5,370		5,283		10,417		20,175
Adjusted operating income			151,820		110,541		79,586		65,097

GAAP income (loss) before income taxes		$	91,701	$	70,121	$	34,403	$	(23,297)
Restructuring, integration and other expenses			28,449		17,574		11,948		26,420
Amortization of intangible assets and other			5,370		5,283		10,417		20,175
Other expenses - equity investment impairments and other			5,139		-		51		15,223
Adjusted income before income taxes			130,659		92,978		56,819		38,521

GAAP income tax expense (benefit)		$	6,346	$	(37,363)	$	15,240	$	(4,408)
Restructuring, integration and other expenses			6,172		4,118		2,577		4,601
Amortization of intangible assets and other			1,025		1,008		2,037		5,029
Other expenses - equity investment impairments and other			38		-		26		26
Income tax benefit (expense) items, net			4,091		50,682		(10,788)		(2,710)
Adjusted income tax expense			17,672		18,445		9,092		2,538

GAAP net income (loss)		$	85,355	$	107,484	$	19,163	$	(18,889)
Restructuring, integration and other expenses (net of tax)			22,277		13,456		9,371		21,819
Amortization of intangible assets and other (net of tax)			4,345		4,275		8,380		15,146
Other expenses - equity investment impairments and other (net of tax)			5,101		-		25		15,197
Income tax (benefit) expense items, net			(4,091)		(50,682)		10,788		2,710
Adjusted net income			112,987		74,533		47,727		35,983

GAAP diluted earnings (loss) per share		$	0.85	$	1.07	$	0.19	$	(0.19)
Restructuring, integration and other expenses (net of tax)			0.22		0.13		0.09		0.22
Amortization of intangible assets and other (net of tax)			0.04		0.04		0.09		0.15
Other expenses - equity investment impairments and other (net of tax)			0.05		-		0.00		0.15
Income tax (benefit) expense items, net			(0.04)		(0.50)		0.11		0.03
Adjusted diluted EPS			1.12		0.74		0.48		0.36

All values are in US Dollars.

^*^ 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:


		Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
		January 1,		October 2,		July 3,		April 3,		January 2,
		2022		2021		2021		2021		2021
	(in millions)
Sales of TI Products		$	-	$	-	$	-	$	1.7	$	49.6

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 second quarter and first six months of fiscal 2022. The following table presents the reconciliation of reported sales to organic sales for the second quarter and first six months of fiscal 2021.


	Quarter Ended						Six Months Ended
	Sales				Organic				Estimated						Organic
	As Reported				Sales		Sales		Extra		Organic				Sales
	and Organic		TI Sales		Adj for TI		As Reported		Week in		Sales		TI Sales		Adj for TI
	Q2-Fiscal		Q2-Fiscal		Q2-Fiscal		Q2-Fiscal		Fiscal		Q2-Fiscal		Q2-Fiscal		Q2-Fiscal
	2021		2021^(1)^		2021^(1)^		2021		2021^(2)^		2021		2021^(1)^		2021^(1)^
	(in millions)
Avnet	$	4,668.2	$	49.6	$	4,618.6	$	9,391.2	$	306.0	$	9,085.2	$	290.6	$	8,794.6
Avnet by region
Americas	$	1,101.5	$	14.0	$	1,087.5	$	2,307.1	$	77.0	$	2,230.1	$	82.5	$	2,147.6
EMEA		1,346.3		20.8		1,325.5		2,827.0		97.0		2,730.0		123.7		2,606.3
Asia		2,220.4		14.8		2,205.6		4,257.1		132.0		4,125.1		84.4		4,040.7
Avnet by segment
EC	$	4,342.4	$	49.6	$	4,292.8	$	8,724.5	$	284.0	$	8,440.5	$	290.6	$	8,149.9
Farnell		325.8		—		325.8		666.7		22.0		644.7		—		644.7

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

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


	Quarter Ended						Six Months Ended
					Organic										Organic
			Sales		Sales				Sales				Organic		Sales
			As Reported		Adj for TI				As Reported				Sales		Adj for TI
	Sales		Year-Year %		Year-Year %		Sales		Year-Year %		Organic		Year-Year %		Year-Year %
	As Reported		Change in		Change in		As Reported		Change in		Sales		Change in		Change in
	Year-Year		Constant		Constant		Year-Year		Constant		Year-Year		Constant		Constant
	% Change		Currency		Currency^(1)^		% Change		Currency		% Change		Currency		Currency^(1)^
Avnet	25.6	%	27.4	%	28.8	%	21.9	%	22.4	%	26.0	%	26.5	%	30.7	%
Avnet by region
Americas	26.3	%	26.3	%	28.0	%	14.9	%	14.9	%	18.8	%	18.8	%	23.4	%
EMEA	36.7		41.7		43.9		26.9		28.2		31.4		32.7		39.1
Asia	18.6		19.4		20.2		22.4		22.7		26.3		26.7		29.3
Avnet by segment
EC	24.9	%	26.8	%	28.2	%	21.0	%	21.6	%	25.0	%	25.6	%	30.1	%
Farnell	35.3		35.8		35.8		34.4		32.8		39.0		37.3		37.3

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

Historical Segment Financial Information


			Fiscal 2022
			Quarters Ended
	Fiscal		Second Quarter		First Quarter
	Year to Date		January 1,		October 2,
	2022*		2022		2021*
	(in millions)
Sales:
Electronic Components	$	10,553.8	$	5,424.3	$	5,129.5
Farnell		896.1		440.9		455.2
Avnet sales	$	11,449.9	$	5,865.2	$	5,584.7

Operating income:
Electronic Components	$	351.4	$	188.9	$	162.4
Farnell		109.8		60.2		49.6
		461.2		249.1		212.0
Corporate expenses		(66.9)		(33.6)		(33.3)
Restructuring, integration and other expenses		(5.3)		-		(5.3)
Amortization of acquired intangible assets and other		(9.0)		(3.8)		(5.2)
Avnet operating income	$	379.9	$	211.7	$	168.2

Sales by geographic area:
Americas	$	2,650.3	$	1,391.5	$	1,258.8
EMEA		3,588.4		1,840.8		1,747.6
Asia		5,211.2		2,632.9		2,578.3
Avnet sales	$	11,449.9	$	5,865.2	$	5,584.7

* May not foot/cross 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 third quarter of fiscal 2022.


	Low End of		High End of
	Guidance Range		Guidance Range

Adjusted diluted earnings per share guidance	$	1.45	$	1.55
Restructuring, integration and other expense (net of tax)		(0.01)		(0.02)
Amortization of intangibles and other (net of tax)		(0.03)		(0.04)
Income tax expense adjustments		(0.03)		0.03
GAAP diluted earnings per share guidance	$	1.38	$	1.52