AVNET, INC. For a description of the Company's critical accounting policies and an understanding of Avnet and the significant factors that influenced the Company's performance during the quarter endedApril 2, 2022 , this Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A") should be read in conjunction with the consolidated financial statements, including the related notes, appearing in Item 1 of this Quarterly Report on Form 10-Q, as well as the Company's Annual Report on Form 10-K for the fiscal year endedJuly 3, 2021 . The Company operates on a "52/53 week" fiscal year and fiscal 2022 contains 52 weeks compared to 53 weeks in fiscal 2021. As a result, the first nine months of fiscal 2022 contained 39 weeks and the first nine months of fiscal 2021 contained 40 weeks. This extra week in the first nine months of fiscal 2021, which occurred in the first quarter of fiscal 2021, impacts the year-over-year analysis in this MD&A. The discussion of the Company's results of operations includes references to the impact of foreign currency translation. When theU.S. Dollar strengthens and the stronger exchange rates are used to translate the results of operations of Avnet's subsidiaries denominated in foreign currencies, the result is a decrease inU.S. Dollars of reported results. Conversely, weaker exchange rates result in an increase inU.S. Dollars of reported results. In the discussion that follows, results excluding this impact, primarily for subsidiaries inEurope , theMiddle East andAfrica ("EMEA") andAsia/Pacific ("Asia"), are referred to as "constant currency." 18 Table of Contents In addition to disclosing financial results that are determined in accordance with generally accepted accounting principles in theU.S. ("GAAP"), the Company also discloses certain non-GAAP financial information, including:
Sales adjusted for certain items that impact the year-over-year analysis, which
includes the impact of certain acquisitions by adjusting Avnet's prior periods
to include the sales of acquired businesses, as if the acquisitions had
occurred at the beginning of the earliest period presented. In addition, fiscal
? 2021 sales are adjusted for the estimated impact of the extra week of sales in
the first quarter of fiscal 2021 due to it being a 14-week quarter, as
discussed above. Additionally, the Company has adjusted sales for the impact of
the termination of the Texas Instruments ("TI") distribution agreement between
fiscal years. Sales taking into account these adjustments are referred to as
"organic sales."
Operating income excluding (i) restructuring, integration and other expenses,
(see Restructuring, Integration and Other Expenses in this MD&A), (ii)
? Russian-
expenses in this MD&A) and (iii) amortization of acquired intangible assets is
referred to as "adjusted operating income."
The reconciliation of operating income to adjusted operating income is presented
in the following table:
Third Quarters Ended Nine Months Ended
April 2, April 3, April 2, April 3,
2022 2021 2022 2021
(Thousands)
Operating income $ 274,408 $ 87,684 $ 654,323 $ 163,407
Restructuring, integration and other
expenses - 17,574 5,272 55,943
Russian-Ukraine conflict related
expenses 26,261 - 26,261 -
Amortization of acquired intangible
assets and other 3,074 5,283 12,109 35,875
Adjusted operating income $ 303,743 $ 110,541 $ 697,965 $ 255,225 Management believes that providing this additional information is useful to
readers to better assess and understand operating performance, especially when
comparing results with prior periods or forecasting performance for future
periods, primarily because management typically monitors the business both
including and excluding these adjustments to GAAP results. Management also uses
these non-GAAP measures to establish operational goals and, in many cases, for
measuring performance for compensation purposes. However, any analysis of
results on a non-GAAP basis should be used as a complement to, and in
conjunction with, results presented in accordance with GAAP.
19
Table of Contents
OVERVIEW
Organization
Avnet, Inc. and its consolidated subsidiaries (collectively, the "Company" or "Avnet"), is a leading global technology distributor and solutions provider. Avnet has served customers' evolving needs for an entire century. Avnet supports customers at each stage of a product's lifecycle, from idea to design and from prototype to production. Avnet's position at the center of the technology value chain enables it 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. Founded in 1921, the Company works with suppliers in every major technology segment to serve customers in more than 140 countries. Avnet has two primary operating groups - Electronic Components ("EC") and Farnell ("Farnell"). Both operating groups have operations in each of the three major economic regions of the world: (i) theAmericas , (ii) EMEA, and (iii)Asia . A summary of each operating group is provided in Note 13, "Segment information" to the Company's consolidated financial statements included in this Quarterly Report on Form 10-Q.
Results of Operations
Recent Global Events and Uncertainties
InFebruary 2022 , Russian forces invadedUkraine (the "Russian-Ukraine conflict"), and in response, the member countries ofNATO initiated a variety of sanctions and export controls targetingRussia and associated entities. The sanctions currently in place limit the Company's ability to provide goods to Russian customers and banking sanctions effectively negate our ability to collect outstanding receivables; as such, the Company has recorded a full allowance for credit losses against those receivables that are not covered by customer credit insurance as ofApril 2, 2022 . Historically, the Company's sales and gross profit generated from sales to Russian customers is less than 1% of consolidated sales and consolidated gross profit. See further discussion of the impacts of the Russian-Ukraine conflict on the Company's results of operations in the third quarter of fiscal 2022 below. The Company will continue to monitor the situation with the Russian-Ukraine conflict, but does not believe the Company will be able to resume business with Russian customers into the foreseeable future. The Company will continue to monitor and manage the ancillary impact of the Russian-Ukraine conflict on its business, which is primarily related to increased fuel and freight related costs and other potential associated supply chain and inflationary considerations. Because the situation is rapidly evolving, other impacts are currently unknown and could potentially subject the Company's business to materially adverse consequences, particularly if the conflict expands to other parts ofEurope where the Company operates. Such other impacts could include global economic disruptions, shortages of materials or electronic components, increased shipping costs, increased trade barriers, increased cyberattacks, credit market disruptions, and adverse effects on the Company's third-party service providers, customers, and suppliers. For a more complete discussion of the risks and uncertainties to which the Company is or may become subject, please refer to Item 1A Risk Factors in the Company's Annual Report on Form 10-K for the fiscal year endedJuly 3, 2021 .
Executive Summary
Sales of$6.49 billion in the third quarter of fiscal 2022 were 32.0% higher than the prior year third quarter sales of$4.92 billion . Excluding the impact of changes in foreign currency, sales increased 35.7% as compared to sales in the prior year third quarter. Gross profit margin of 12.5% increased 97 basis points compared to 11.6% in the third quarter of fiscal 2021. This increase is primarily due to strong overall demand for electronic components and improvements in pricing, product and customer mix, and geographic sales mix. 20
Table of Contents
Operating income of$274.4 million was$186.7 million higher than the third quarter of fiscal 2021. Operating income margin was 4.2% in the third quarter of fiscal 2022, as compared to 1.8% in the prior year third quarter. The increase in operating income margin is the result of increases in sales and in gross profit margin, partially offset by an increase in selling, general and administrative expenses. Adjusted operating income margin was 4.7% in the third quarter of fiscal 2022 as compared to 2.3% in the third quarter of fiscal 2021, an increase of 243 basis points. This increase in adjusted operating income margin is primarily due to the increases in sales and gross profit margin, partially offset by increases in selling, general and administrative expenses.
Sales
Reported sales were the same as organic sales in the third quarter and first
nine months of fiscal 2022. The following table presents the reconciliation of
reported sales to organic sales for the third quarter and first nine months of
fiscal 2021 by geographic region and by operating group.
Quarter Ended Nine Months Ended
Sales
As Reported Organic Estimated Organic
and Sales Sales Extra Organic Sales
Organic TI Sales Adj for TI As Reported Week in Sales TI Sales Adj for TI
Q3-Fiscal Q3-Fiscal Q3-Fiscal Q3-Fiscal Fiscal Q3-Fiscal Q3-Fiscal Fiscal
2021 2021(1) 2021(1) 2021 2021(2) 2021 2021(1) 2021(1)
(Thousands)
Avnet $ 4,916,714 $ 1,659 $ 4,915,055 $ 14,307,945 $ 306,000 $ 14,001,945 $ 292,212 $ 13,709,733
Avnet by region
Americas $ 1,160,973 $ 416 $ 1,160,557 $ 3,468,118 $ 77,000 $ 3,391,118 $ 82,885 $ 3,308,233
EMEA 1,585,631 483 1,585,148 4,412,652 97,000 4,315,652 124,232 4,191,420
Asia 2,170,110 760 2,169,350 6,427,175 132,000 6,295,175 85,095 6,210,080
Avnet by operating group
EC $ 4,520,608 $ 1,659 $ 4,518,949 $ 13,245,143 $ 284,000 $ 12,961,143 $ 292,212 $ 12,668,931
Farnell 396,106 - 396,106 1,062,802 22,000 1,040,802 - 1,040,802
___________
(1) Sales adjusted for the impact of the termination of the Texas Instruments
("TI") distribution agreement.
(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
third quarter and first nine months of fiscal 2022 as compared to fiscal 2021 by
geographic region and by operating group.
Quarter Ended Nine Months Ended
Sales Organic Organic
As Reported Sales Sales Organic Sales
Sales and Organic Adj for TI As Reported Sales Adj for TI
as Reported Year-Year % Year-Year % Sales Year-Year % Organic Year-Year % Year-Year %
and Organic 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 32.0 % 35.7 % 35.7 % 25.4 % 26.9 % 28.1 % 29.6 % 32.4 %
Avnet by
region
Americas 40.2 % 40.2 % 40.2 % 23.3 % 23.3 % 26.1 % 26.1 % 29.3 %
EMEA 37.9 47.6 47.7 30.9 35.0 33.8 38.0 42.1
Asia 23.3 24.5 24.5 22.7 23.3 25.3 25.9 27.6
Avnet by
operating
group
EC 33.2 % 36.9 % 36.9 % 25.1 % 26.7 % 27.9 % 29.5 % 32.5 %
Farnell 18.4 21.8 21.8 28.4 28.6 31.2 31.3 31.3
___________
(1) Sales growth rates excluding the impact of the termination of the TI
distribution agreement.
21
Table of Contents
Sales of $6.49 billion for the third quarter of fiscal 2022 were up $1.57
billion , or 32.0%, from the prior year third quarter sales of $4.92 billion .
Sales in constant currency in the third quarter of fiscal 2022 increased by
35.7% year over year, reflecting sales growth in both operating groups across
all regions driven by strong demand globally for electronic components.
EC sales of $6.02 billion in the third quarter of fiscal 2022 increased $1.50
billion or 33.2% from the prior year third quarter sales of $4.52 billion . On an
organic basis, EC sales increased 36.9% year over year in constant currency,
reflecting sales growth in all three regions. The increase in sales in the
Company's EC operating group is primarily due to improvements in overall
stronger market demand, especially in the transportation and industrial sectors.
Farnell sales for the third quarter of fiscal 2022 were $469.0 million , an
increase of $72.9 million or 18.4% from the prior year third quarter sales of
$396.1 million . Sales in constant currency increased 21.8% year over year. These
increases were primarily a result of increased market demand in all three
regions.
Sales for the first nine months of fiscal 2022 were $17.94 billion , an increase
of $3.63 billion as compared to sales of $14.31 billion for the first nine
months of fiscal 2021. The increase in sales is primarily the result of
increased sales in both operating groups across all regions driven by strong
demand globally for electronic components.
As a result of the recent termination of the Company's distribution agreement
between Maxim Integrated Products, Inc. ("Maxim") and the Electronic Components
operating group, the Company may experience lower sales and gross profit in the
future if the impact of the termination is not offset by sales growth, gross
margin improvements or operating cost reductions. Sales from Maxim products
represented approximately 3% of total sales in fiscal 2021.
Gross Profit
Gross profit for the third quarter of fiscal 2022 was$813.0 million , an increase of$244.7 million , or 43.1%, from the third quarter of fiscal 2021 gross profit of$568.4 million . Gross profit margin increased to 12.5% or 97 basis points from the third quarter of fiscal 2021 gross profit margin of 11.6%, driven by increases in gross profit margin in both operating groups. Sales in the higher gross profit margin western regions represented approximately 59% of sales in the third quarter of fiscal 2022, as compared to 56% during the third quarter of fiscal 2021.
Gross profit and gross profit margin was
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A expenses") were $512.4
million in the third quarter of fiscal 2022, an increase of $49.3 million , or
10.6%, from the third quarter of fiscal 2021. The year-over-year increase in
SG&A expenses was primarily due to increases in costs to support sales growth
and to a lesser extent increased costs related to inflation.
Metrics that management monitors with respect to its operating expenses are SG&A
expenses as a percentage of sales and as a percentage of gross profit. In the
third quarter of fiscal 2022, SG&A expenses were 7.9% of sales and 63.0% of
gross profit, as compared with 9.4% and 81.5%, respectively, in the third
quarter of fiscal 2021. The decrease in SG&A expenses as a percentage of sales
and gross profit primarily results from operating leverage created from higher
sales, increases in gross profit margin, and lower amortization expense,
partially offset by increases in SG&A expenses primarily to support sales
volumes.
22
Table of Contents
SG&A expenses for the first nine months of fiscal 2022 were$1.50 billion , or 8.4% of sales, as compared with$1.38 billion , or 9.6% of sales, in the first nine months of fiscal 2021. SG&A expenses as a percentage of gross profit for the first nine months of fiscal 2022 were 68.6% as compared with 86.3% in the first nine months of fiscal 2021. The decrease in SG&A expenses as a percentage of sales and gross profit primarily results from operating leverage created from higher sales, increase in gross profit margin, and lower amortization expense, partially offset by increases in SG&A expenses primarily to support sales volumes.
Russian-Ukraine Conflict Related Expenses
The Company incurred$26.3 million of costs associated with the Russian-Ukraine conflict in the third quarter of fiscal 2022, primarily comprised of$17.2 million of expense for credit loss reserves for trade accounts receivable from Russian customers that are no longer considered collectible. The remaining expense is primarily related to product write-downs forRussia based customers and other Russian business operation wind-down costs.
Restructuring, Integration, and Other Expenses
The Company did not incur any restructuring, integration and other expenses during the third quarter of fiscal 2022. During the first nine months of fiscal 2022, the Company recorded restructuring, integration and other expenses of$5.3 million , substantially all of which was related to integration costs.
Operating Income
Operating income for the third quarter of fiscal 2022 was$274.4 million , an increase of$186.7 million , from the third quarter of fiscal 2021 operating income of$87.7 million . Adjusted operating income for the third quarter of fiscal 2022 was$303.7 million , an increase of$193.2 million , or 174.8%, from the third quarter of fiscal 2021. The year-over-year increase in adjusted operating income was primarily driven by the increase in sales and in gross profit margin, partially offset by an increase in SG&A expenses. EC operating income margin increased 178 basis points year over year to 4.4% and Farnell operating income margin increased 886 basis points year over year to 14.9%. Operating income for the first nine months of fiscal 2022 was$654.3 million , an increase of$490.9 million , from the operating income of$163.4 million during the first nine months of fiscal 2021. Adjusted operating income for the first nine months of fiscal 2022 was$698.0 million , an increase of$442.7 million , or 173.5%, from the first nine months of fiscal 2021. The year-over-year increase in adjusted operating income was primarily driven by the increase in sales and in gross profit margin. Interest and Other Financing Expenses, Net and Other (Expense) Income, Net Interest and other financing expenses in the third quarter of fiscal 2022 was$25.9 million , an increase of$3.6 million , or 16.0%, as compared with interest and other financing expenses of$22.3 million in the third quarter of fiscal 2021. Interest and other financing expenses in the first nine months of fiscal 2022 was$70.4 million , an increase of$4.3 million , or 6.4%, as compared with interest and other financing expenses of$66.1 million in the first nine months of fiscal 2021. The increases in interest and other financing expenses in the third quarter and first nine months of fiscal 2022 compared to the third quarter and first nine months of fiscal 2021 is primarily a result of higher outstanding borrowings during fiscal 2022 as compared to fiscal 2021. 23
Table of Contents
During the third quarter of fiscal 2022, the Company had$0.5 million of other expense as compared with$4.8 million of other income in the third quarter of fiscal 2021. During the first nine months of fiscal 2022, the Company had$0.9 million of other income as compared with$16.1 million of other expense in the first nine months of fiscal 2021. The year-over-year differences in other expense was primarily due to the equity investment impairment expense included in the other expense in the first nine months of fiscal 2021, and differences in foreign currency exchange rates between the third quarters and first nine months of fiscal 2022 and fiscal 2021.
Income Tax
The Company's effective tax rate on its income before taxes was 26.0% in the third quarter of fiscal 2022. During the third quarter of fiscal 2022, the Company's effective tax rate was unfavorably impacted primarily by the mix of income in higher tax jurisdictions. During the third quarter of fiscal 2021, the Company's effective tax rate on its income before taxes was a benefit of 53.3%. The Company's effective tax rate was favorably impacted primarily by (i) the tax benefit arising from the reduction in value of certain businesses for income tax purposes and (ii) decreases to valuation allowances, partially offset by (iii) increases to unrecognized tax benefit reserves. For the first nine months of fiscal 2022, the Company's effective tax rate on its income before taxes was 23.8%. The effective tax rate for the first nine months of fiscal 2022 was unfavorably impacted primarily by (i) the mix of income in higher tax jurisdictions and (ii) increases to valuation allowances. During the first nine months of fiscal 2021, the Company's effective tax rate on its income before taxes was a benefit of 32.7%. The effective tax rate for the first nine months of fiscal 2021 was favorably impacted primarily by (i) the tax benefit arising from the reduction in value of certain businesses for income tax purposes, (ii) decreases to valuation allowances, and (iii) the mix of income in lower tax jurisdictions, partially offset by (iv) increases to unrecognized tax benefit reserves. InJanuary 2022 , theU.S. Treasury published new regulations impacting foreign tax credit utilization. The Company has determined there is no material impact of the regulations to the Company's financial position. The Company has established a full valuation allowance against its deferred tax assets inthe United States . As a result of improved profitability inthe United States , primarily due to the performance of the Company'sAmericas business, the Company expects to release the valuation allowance established inthe United States in the fourth quarter of fiscal 2022. As a result, the discrete tax benefit from the release of the valuation allowance will reduce the effective tax rate for fiscal 2022. Net Income As a result of the factors described in the preceding sections of this MD&A, the Company's net income for the third quarter of fiscal 2022 was$183.4 million , or$1.84 per share on a diluted basis, as compared with$107.5 million , or$1.07 per share on a diluted basis, in the third quarter of fiscal 2021. As a result of the factors described in the preceding sections of this MD&A, the Company's net income for the first nine months of fiscal 2022 was$445.6 million , or$4.44 per share on a diluted basis, as compared with$107.8 million , or$1.08 per share on a diluted basis, in the first nine months of fiscal 2021. 24 Table of Contents LIQUIDITY AND CAPITAL RESOURCES Cash Flow
Cash Flow from Operating Activities
During the first nine months of fiscal 2022, the Company used$19.4 million of cash flow for operations compared to$197.5 million of cash generated from operations in the first nine months of fiscal 2021. These operating cash flows were comprised of: (i) cash flow generated from net income, adjusted for the impact of non-cash and other items, which includes depreciation and amortization expenses, deferred income taxes, stock-based compensation expense, amortization of operating lease assets, and other non-cash items, and (ii) cash flows used for, or generated from, working capital and other, excluding cash and cash equivalents. Cash used for working capital and other was$660.8 million during the first nine months of fiscal 2022, including increases in accounts receivable of$881.0 million , and in inventories of$550.0 million both to support sales growth in the first nine months of fiscal 2022, partially offset by increases in accounts payable of$628.8 million , and in accrued expenses and other of$141.4 million . Comparatively, cash used for working capital and other was$112.0 million during the first nine months of fiscal 2021, including an increase in accounts receivable of$405.7 million , offset by a decrease in inventories of$63.0 million , increases in accounts payable of$224.2 million , and accrued expenses and other of$6.5 million .
Cash Flow from Financing Activities
During the first nine months of fiscal 2022, the Company received net proceeds of$57.4 million under the Securitization Program, and$118.0 million under the other short-term debt. During the first nine months of fiscal 2022, the Company paid dividends on common stock of$73.3 million and repurchased$89.0 million of common stock. During the first nine months of fiscal 2021, the Company made a net repayment of$232.3 million under the Credit Facility and paid dividends on common stock of$62.4 million .
Cash Flow from Investing Activities
During the first nine months of fiscal 2022, the Company used$33.7 million for capital expenditures compared to$39.0 million for capital expenditures in the first nine months of fiscal 2021. During the first nine months of fiscal 2022, the Company received$84.3 million from investing activities related to the liquidation of Company owned life insurance policies. During the first nine months of fiscal 2021, the Company paid$18.4 million for an asset acquisition.
Contractual Obligations
For a detailed description of the Company's long-term debt and lease commitments for the next five years and thereafter, see Long-Term Contractual Obligations appearing in Item 7 of the Company's Annual Report on Form 10-K for the fiscal year endedJuly 3, 2021 . There are no material changes to this information outside of normal borrowings and repayments of long-term debt and operating lease payments. The Company does not currently have any material non-cancellable commitments for capital expenditures or inventory purchases outside of the normal course of business.
Financing Transactions
See Note 4, "Debt" to the Company's consolidated financial statements included in this Quarterly Report on Form 10-Q for additional information on financing transactions including the Credit Facility, the Securitization Program, and other outstanding debt as ofApril 2, 2022 . The Company was in compliance with all covenants under the Credit Facility and the Securitization Program as ofApril 2, 2022 , andJuly 3, 2021 . 25
Table of Contents
The Company has various lines of credit, financing arrangements, and other forms of bank debt in theU.S. and various foreign locations to fund the short-term working capital, foreign exchange, overdraft, and letter of credit needs of its wholly owned subsidiaries. Outstanding borrowings under such forms of debt at the end of third quarter of fiscal 2022 was$74.3 million . As an alternative form of financing outside ofthe United States , the Company sells certain of its trade accounts receivable on a non-recourse basis to financial institutions pursuant to factoring agreements. The Company accounts for these transactions as sales of receivables and presents cash proceeds as cash provided by operating activities in the consolidated statements of cash flows. Factoring fees for the sales of trade accounts receivable are recorded within "Interest and other financing expenses, net" and were not material.
Liquidity
The Company held cash and cash equivalents of$199.5 million as ofApril 2, 2022 , of which$114.1 million was held outsidethe United States . As ofJuly 3, 2021 , the Company held cash and cash equivalents of$199.7 million , of which$150.5 million was held outside ofthe United States . As of the end of the third quarter of fiscal 2022, the Company had a combined total borrowing capacity of$1.70 billion under the Credit Facility and the Securitization Program. There were no borrowings outstanding and$1.2 million in letters of credit issued under the Credit Facility, and$80.3 million outstanding under the Securitization Program, resulting in approximately$1.62 billion of total availability as ofApril 2, 2022 . Availability under the Securitization Program is subject to the Company having sufficient eligible trade accounts receivable inthe United States to support desired borrowings. During the third quarter and first nine months of fiscal 2022, the Company had an average daily balance outstanding of approximately$694.6 million and$522.7 million , respectively, under the Credit Facility and approximately$266.9 million and$227.3 million , respectively, under the Securitization Program. During periods of weakening demand in the electronic components industry, the Company typically generates cash from operating activities. Conversely, the Company is more likely to use operating cash flows for working capital requirements during periods of higher growth. The Company used$126.0 million in cash flows for operating activities over the trailing four fiscal quarters endedApril 2, 2022 . Liquidity is subject to many factors, such as normal business operations and general economic, financial, competitive, legislative, and regulatory factors that are beyond the Company's control. To the extent the cash balances held in foreign locations cannot be remitted back to theU.S. in a tax efficient manner, those cash balances are generally used for ongoing working capital, capital expenditures and other foreign business needs. In addition, local government regulations may restrict the Company's ability to move funds among various locations under certain circumstances. Management does not believe such restrictions would limit the Company's ability to pursue its intended business strategy. The Company continually monitors and reviews its liquidity position and funding needs. Management believes that the Company's ability to generate operating cash flows in the future and available borrowing capacity, including capacity for the non-recourse sale of trade accounts receivable, will be sufficient to meet its future liquidity needs. The Company may also renew or replace expiring debt arrangements, including the$350 million of Notes dueDecember 2022 , in the future and management believes the Company will have adequate access to capital markets, if needed. The Company has historically generated operating cash flows and believes it will have the ability to do so in the future. As ofApril 2, 2022 , the Company may repurchase up to an aggregate of$378.0 million of shares of the Company's common stock through a$2.95 billion share repurchase program approved by the Board of Directors. The Company may repurchase stock from time to time at the discretion of management, subject to strategic considerations, market conditions and other factors. The Company may terminate or limit the share repurchase program at any time without prior notice. During the third quarter of fiscal 2022, the Company repurchased$45.1 million of common stock. 26 Table of Contents
The Company has historically paid quarterly cash dividends on shares of its
common stock, and future dividends are subject to approval by the Board of
Directors. During the third quarter of fiscal 2022, the Board of Directors
approved a dividend of
Recently Issued Accounting Pronouncements
See Note 1, "Basis of presentation and new accounting pronouncements" to the Company's consolidated financial statements included in this Quarterly Report on Form 10-Q for a description of recently issued accounting pronouncements.
© Edgar Online, source
