Document_and_Entity_Informatio
Document and Entity Information Document | 6 Months Ended | |
Dec. 27, 2014 | Jan. 15, 2015 | |
Entity Information [Line Items] | ||
Entity Registrant Name | AVNET INC | |
Entity Central Index Key | 8858 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 27-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 136,374,984 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Dec. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $903,331 | $928,971 |
Receivables, less allowances of $94,327 and $96,382, respectively | 5,696,642 | 5,220,528 |
Inventories | 2,493,576 | 2,613,363 |
Prepaid and other current assets | 196,111 | 191,337 |
Total current assets | 9,289,660 | 8,954,199 |
Property, plant and equipment, net | 541,904 | 534,999 |
Goodwill | 1,298,805 | 1,348,468 |
Intangible assets, net | 152,265 | 184,308 |
Other assets | 208,460 | 233,543 |
Total assets | 11,491,094 | 11,255,517 |
Current liabilities: | ||
Short-term debt | 409,184 | 865,088 |
Accounts payable | 3,850,295 | 3,402,369 |
Accrued expenses and other | 672,576 | 711,369 |
Total current liabilities | 4,932,055 | 4,978,826 |
Long-term debt | 1,692,307 | 1,213,814 |
Other liabilities | 161,802 | 172,684 |
Total liabilities | 6,786,164 | 6,365,324 |
Commitments and contingencies (Note 6) | ||
Shareholders’ equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 135,888,295 shares and 138,285,825 shares, respectively | 135,888 | 138,286 |
Additional paid-in capital | 1,391,463 | 1,355,663 |
Retained earnings | 3,399,098 | 3,257,407 |
Accumulated other comprehensive (loss) income | -220,955 | 139,512 |
Treasury stock at cost, 34,288 shares and 36,836 shares, respectively | -564 | -675 |
Total shareholders’ equity | 4,704,930 | 4,890,193 |
Total liabilities and shareholders’ equity | $11,491,094 | $11,255,517 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Dec. 27, 2014 | Jun. 28, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for Doubtful Accounts Receivable, Current | $94,327 | $96,382 |
Stockholders' equity: | ||
Common Stock, Par Value | $1 | $1 |
Common Stock, Shares Authorized | 300,000,000 | 300,000,000 |
Common Stock, Shares, Issued | 135,888,295 | 138,285,825 |
Treasury Stock, Shares | 34,288 | 36,836 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Income Statement [Abstract] | ||||
Sales | $7,551,880 | $7,421,854 | $14,391,466 | $13,767,329 |
Cost of sales | 6,714,374 | 6,573,221 | 12,758,497 | 12,183,526 |
Gross profit | 837,506 | 848,633 | 1,632,969 | 1,583,803 |
Selling, general and administrative expenses | 573,962 | 598,619 | 1,157,908 | 1,142,703 |
Restructuring, integration and other expenses | 13,257 | 28,442 | 31,577 | 40,541 |
Operating income | 250,287 | 221,572 | 443,484 | 400,559 |
Other income (expense), net | -5,524 | -4,794 | -7,017 | -3,999 |
Interest expense | -24,666 | -28,226 | -48,066 | -55,203 |
Gain on legal settlement (Note 6) | 0 | 0 | 0 | 19,137 |
Income before income taxes | 220,097 | 188,552 | 388,401 | 360,494 |
Income tax expense | 56,391 | 63,688 | 96,749 | 115,006 |
Net income | $163,706 | $124,864 | $291,652 | $245,488 |
Earnings per share: | ||||
Basic | $1.20 | $0.91 | $2.12 | $1.78 |
Diluted | $1.18 | $0.89 | $2.08 | $1.75 |
Shares used to compute earnings per share: | ||||
Basic | 136,541 | 137,702 | 137,425 | 137,558 |
Diluted | 138,972 | 140,144 | 139,911 | 139,934 |
Cash dividends paid per common share | $0.16 | $0.15 | $0.32 | $0.30 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Net income | $163,706 | $124,864 | $291,652 | $245,488 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustments and other | -158,303 | 16,050 | -364,036 | 107,997 |
Pension adjustments, net | 1,784 | 3,228 | 3,569 | 3,295 |
Total comprehensive income (loss) | $7,187 | $144,142 | ($68,815) | $356,780 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 |
Cash flows from operating activities: | ||
Net income | $291,652 | $245,488 |
Non-cash and other reconciling items: | ||
Depreciation | 46,972 | 44,731 |
Amortization | 21,990 | 20,903 |
Deferred income taxes | 15,275 | 11,925 |
Stock-based compensation | 36,130 | 28,940 |
Other, net | 34,523 | 51,616 |
Changes in (net of effects from businesses acquired): | ||
Receivables | -711,060 | -771,728 |
Inventories | -5,957 | -158,470 |
Accounts payable | 583,337 | 348,521 |
Accrued expenses and other, net | -88,438 | 23,875 |
Net cash flows provided (used) for operating activities | 224,424 | -154,199 |
Cash flows from financing activities: | ||
Borrowings under accounts receivable securitization program, net | 77,000 | 60,000 |
(Repayments) borrowings of bank and other debt, net | -37,414 | 55,436 |
Repurchases of common stock (Note 9) | -109,129 | 0 |
Dividends paid on common stock | -43,875 | -41,263 |
Other, net | -5,439 | 4,293 |
Net cash flows (used) provided by financing activities | -118,857 | 78,466 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | -83,642 | -47,024 |
Acquisitions of businesses, net of cash acquired | 0 | -116,882 |
Other, net | -8,795 | 1,800 |
Net cash flows used for investing activities | -92,437 | -162,106 |
Effect of exchange rate changes on cash and cash equivalents | -38,770 | 7,827 |
Cash and cash equivalents: | ||
— (decrease) | -25,640 | -230,012 |
— at beginning of period | 928,971 | 1,009,343 |
— at end of period | $903,331 | $779,331 |
Basis_of_presentation_and_new_
Basis of presentation and new accounting pronouncements | 6 Months Ended |
Dec. 27, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation and new accounting pronouncements | Basis of presentation and new accounting pronouncements |
In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc.'s and its consolidated subsidiaries' (the “Company” or “Avnet”) financial position, results of operations, comprehensive income and cash flows. All such adjustments are of a normal recurring nature. | |
The preparation of financial statements in accordance with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. | |
Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2014. | |
New accounting pronouncements | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Application of the requirements of ASU 2014-09 may require more judgment and estimates within the revenue recognition process compared to existing GAAP. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) adoption with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the potential impact of the future adoption of ASU 2014-09 on its consolidated financial statements, including the method of adoption to be used. | |
During the six months ended December 27, 2014 there have been no new accounting pronouncements that are expected to significantly impact the Company's consolidated financial statements. |
Acquisitions_and_divestitures
Acquisitions and divestitures | 6 Months Ended | |||
Dec. 27, 2014 | ||||
Business Combinations [Abstract] | ||||
Acquisitions and divestitures | Acquisitions and divestitures | |||
During fiscal 2014, the Company completed three acquisitions with historical annualized revenue of approximately $492.0 million. Cash paid for acquisitions during the first six months of fiscal 2014 was $116.9 million, net of cash acquired. The Company has not disclosed the pro-forma impact of the fiscal 2014 acquisitions as such impact was not material to the Company's consolidated financial position or results of operations. | ||||
The aggregate consideration, excluding cash acquired, for the fiscal 2014 acquisitions was $219.7 million, which consisted of the following (in thousands): | ||||
Cash paid | $ | 181,645 | ||
Contingent consideration | 38,081 | |||
Total | $ | 219,726 | ||
The contingent consideration arrangements stipulate that the Company pay up to a maximum of approximately $50.0 million of additional consideration to the former shareholders of the acquired businesses based upon the achievement of certain future operating results. The Company estimated the fair value of the contingent consideration of $38.1 million using an income approach, which is based on significant inputs, primarily forecasted future operating results of the acquired businesses, not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The Company adjusts the fair value of contingent consideration through operating expenses if there are changes to the inputs used in the income approach and as a result of the passage of time. | ||||
During the first six months of fiscal 2015 there were no material measurement period adjustments for the fiscal 2014 acquisitions. The Company recognized restructuring, integration, and other expenses associated with the fiscal 2014 acquisitions, which are described further in Note 13. |
Goodwill_and_intangible_assets
Goodwill and intangible assets | 6 Months Ended | |||||||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Goodwill and intangible assets disclosures | Goodwill and intangible assets | |||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
The following table presents the change in goodwill by reportable segment for the six months ended December 27, 2014. All of the accumulated impairment was recognized in fiscal 2009. | ||||||||||||||||||||||||
Electronics | Technology | Total | ||||||||||||||||||||||
Marketing | Solutions | |||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||
Gross goodwill | $ | 1,713,567 | $ | 1,014,635 | $ | 2,728,202 | ||||||||||||||||||
Accumulated impairment | (1,045,110 | ) | (334,624 | ) | (1,379,734 | ) | ||||||||||||||||||
Carrying value at June 28, 2014 | 668,457 | 680,011 | 1,348,468 | |||||||||||||||||||||
Additions | — | — | — | |||||||||||||||||||||
Adjustments | 539 | 7 | 546 | |||||||||||||||||||||
Foreign currency translation | (24,012 | ) | (26,197 | ) | (50,209 | ) | ||||||||||||||||||
Carrying value at December 27, 2014 | $ | 644,984 | $ | 653,821 | $ | 1,298,805 | ||||||||||||||||||
Gross goodwill | $ | 1,690,094 | $ | 988,445 | $ | 2,678,539 | ||||||||||||||||||
Accumulated impairment | (1,045,110 | ) | (334,624 | ) | (1,379,734 | ) | ||||||||||||||||||
Carrying value at December 27, 2014 | $ | 644,984 | $ | 653,821 | $ | 1,298,805 | ||||||||||||||||||
The goodwill additions are a result of businesses acquired (see Note 2) and goodwill adjustments represent the net measurement period adjustments for acquisitions during the related measurement periods. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
The following table presents the Company’s acquired intangible assets at December 27, 2014 and June 28, 2014, respectively. These intangible assets have a weighted average remaining useful life of approximately 6 years. | ||||||||||||||||||||||||
December 27, 2014 | June 28, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||
Customer related | $ | 302,591 | $ | (168,624 | ) | $ | 133,967 | $ | 319,496 | $ | (155,604 | ) | $ | 163,892 | ||||||||||
Trade name | 5,506 | (1,578 | ) | 3,928 | 5,993 | (1,555 | ) | 4,438 | ||||||||||||||||
Other | 17,206 | (2,836 | ) | 14,370 | 18,833 | (2,855 | ) | 15,978 | ||||||||||||||||
$ | 325,303 | $ | (173,038 | ) | $ | 152,265 | $ | 344,322 | $ | (160,014 | ) | $ | 184,308 | |||||||||||
Intangible asset amortization expense was $10.4 million and $12.5 million for the second quarters of fiscal 2015 and 2014, respectively, and $22.0 million and $20.9 million for the first six months of fiscal 2015 and 2014, respectively. The following table presents the estimated future amortization expense for the remainder of fiscal 2015, the next five fiscal years and thereafter (in thousands): | ||||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
Remainder of fiscal 2015 | $ | 21,392 | ||||||||||||||||||||||
2016 | 32,780 | |||||||||||||||||||||||
2017 | 30,855 | |||||||||||||||||||||||
2018 | 22,384 | |||||||||||||||||||||||
2019 | 18,789 | |||||||||||||||||||||||
2020 | 14,672 | |||||||||||||||||||||||
Thereafter | 11,393 | |||||||||||||||||||||||
Total | $ | 152,265 | ||||||||||||||||||||||
Debt_financing
Debt financing | 6 Months Ended | |||||||||||
Dec. 27, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Debt financing | Debt | |||||||||||
Short-term debt consists of the following (in thousands): | ||||||||||||
December 27, | June 28, | December 27, | June 28, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
Interest Rate | Carrying Balance | |||||||||||
Bank credit facilities and other | 4.42% | 3.20% | $ | 159,184 | $ | 250,088 | ||||||
Accounts receivable securitization program | — | 0.60% | — | 615,000 | ||||||||
Notes due September 1, 2015 | 6.00% | — | 250,000 | — | ||||||||
Short-term debt | $ | 409,184 | $ | 865,088 | ||||||||
Bank credit facilities and other consists of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the working capital requirements of foreign operations. | ||||||||||||
Long-term debt consists of the following (in thousands): | ||||||||||||
December 27, | June 28, | December 27, | June 28, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
Interest Rate | Carrying Balance | |||||||||||
Revolving credit facilities: | ||||||||||||
Accounts receivable securitization program | 0.56% | — | $ | 692,000 | $ | — | ||||||
2014 Credit Facility | 3.55% | — | 50,000 | — | ||||||||
2012 Credit Facility | — | 3.55% | — | 12,000 | ||||||||
Notes due: | ||||||||||||
September 1, 2015 | — | 6.00% | — | 250,000 | ||||||||
September 15, 2016 | 6.63% | 6.63% | 300,000 | 300,000 | ||||||||
June 15, 2020 | 5.88% | 5.88% | 300,000 | 300,000 | ||||||||
1-Dec-22 | 4.88% | 4.88% | 350,000 | 350,000 | ||||||||
Other long-term debt | 1.44% | 1.40% | 2,104 | 3,867 | ||||||||
Long-term debt before discount | 1,694,104 | 1,215,867 | ||||||||||
Discount on Notes | (1,797 | ) | (2,053 | ) | ||||||||
Long-term debt | $ | 1,692,307 | $ | 1,213,814 | ||||||||
In August 2014, the Company amended and extended its accounts receivable securitization program (the “Program”) with a group of financial institutions to allow the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of accounts receivable, to provide security or collateral for borrowings up to a maximum of $900.0 million. The Program does not qualify for sale accounting treatment and, as a result, any borrowings under the Program are recorded as debt on the consolidated balance sheets. Under the Program, the Company legally isolates certain U.S. trade receivables into a wholly-owned bankruptcy remote special purpose entity. Such isolated receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $1.65 billion at December 27, 2014 and June 28, 2014. The Program contains certain covenants relating to the quality of the receivables sold. The Program also requires the Company to maintain certain minimum interest coverage and leverage ratios, which the Company was in compliance with as of December 27, 2014. The Program has a two-year term that expires in August 2016. As a result of the two-year term, outstanding borrowings under the Program are classified as long-term debt at December 27, 2014. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.38%. The facility fee is 0.38%. | ||||||||||||
In July 2014, the Company terminated its existing Credit Facility (the "2012 Credit Facility") and entered into a five-year $1.25 billion senior unsecured revolving credit facility (the “2014 Credit Facility”) with a syndicate of banks, consisting of revolving credit facilities and the issuance of up to $150.0 million of letters of credit, which expires in July 2019. Under the 2014 Credit Facility, the Company may select from various interest rate options, currencies and maturities. The 2014 Credit Facility contains certain covenants including various limitations on debt incurrence, share repurchases, dividends, investments and capital expenditures. The 2014 Credit Facility also includes financial covenants requiring the Company to maintain minimum interest coverage and leverage ratios, which the Company was in compliance with as of December 27, 2014. At December 27, 2014, there were $2.0 million in letters of credit issued under the 2014 Credit Facility. At June 28, 2014, there were $2.0 million in letters of credit issued under the 2012 Credit Facility. | ||||||||||||
At December 27, 2014, the carrying value and fair value of the Company’s total debt was $2.10 billion and $2.19 billion, respectively. At June 28, 2014, the carrying value and fair value of the Company's total debt was $2.08 billion and $2.19 billion, respectively. Fair value was estimated primarily based upon quoted market prices. |
Derivative_financial_instrumen
Derivative financial instruments | 6 Months Ended |
Dec. 27, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activites disclosure | Derivative financial instruments |
Many of the Company’s subsidiaries purchase and sell products in currencies other than their functional currencies. This subjects the Company to the risks associated with fluctuations in foreign currency exchange rates. The Company reduces this risk by utilizing natural hedging (i.e., offsetting receivables and payables) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign exchange contracts typically with maturities of less than sixty days (“economic hedges”). The Company continues to have exposure to foreign currency risks to the extent they are not hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “other income (expense), net.” Therefore, the changes in valuation of the underlying items being economically hedged are offset by the changes in fair value of the forward foreign exchange contracts. The fair value of forward foreign exchange contracts, which are based upon Level 2 criteria under the ASC 820 fair value hierarchy, are classified in the captions “other current assets” or “accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets and were not material as of December 27, 2014 and June 28, 2014. The Company did not have material gains or losses related to the forward foreign exchange contracts during the second quarters and first six months of fiscal 2015 and fiscal 2014. | |
The Company generally does not hedge its investments in its foreign operations. The Company does not enter into derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. |
Commitments_and_contingencies
Commitments and contingencies | 6 Months Ended |
Dec. 27, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies |
Bell | |
During fiscal 2011, the Company recognized a contingent liability for potential unpaid import duties associated with the acquisition of Bell Microproducts Inc. (“Bell”). Prior to the acquisition of Bell by Avnet, Customs and Border Protection (“CBP”) initiated a review of the importing process at one of Bell’s subsidiaries and identified compliance deficiencies. Subsequent to the acquisition of Bell by Avnet, CBP began a compliance audit. The Company evaluated projected duties, interest and penalties that potentially may be imposed as a result of the audit and recognized a contingent liability of $10.0 million which was recorded to goodwill in fiscal 2011. Depending on the ultimate resolution of the matter with CBP, the Company estimates that the range of the potential exposure associated with the liability may be up to $73.0 million; however, the Company believes the contingent liability recorded is a reasonable estimate of the liability based upon the facts available at this time. | |
LCD Class Action Settlement | |
The Company filed a proof of claim in the settlement of a class action proceeding that sought damages from certain manufacturers of LCD flat panel displays. A settlement was reached in the proceedings and in the first quarter of fiscal 2014 the federal district judge overseeing the proceeding issued an order approving the distribution of settlement funds to the class claimants and the Company received an award payment of $19.1 million. In the third quarter of fiscal 2014, the federal district judge overseeing the proceedings issued an order approving a final distribution of funds and the Company received a final award payment of $3.0 million. The award is classified within “gain on legal settlement” in the consolidated statements of operations. | |
Other | |
From time to time, the Company may become a party to, or be otherwise involved in various lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any ongoing matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. |
Income_taxes
Income taxes | 6 Months Ended |
Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes |
The Company’s effective tax rate on its income before income taxes was 25.6% in the second quarter of fiscal 2015 as compared with 33.8% in the second quarter of fiscal 2014. During the second quarter of fiscal 2015, the Company's effective tax rate was favorably impacted primarily by the mix of income in lower tax rate jurisdictions and the release of reserves related to the settlement of an audit in a foreign jurisdiction. During the second quarter of fiscal 2014, the Company's effective tax rate was unfavorably impacted primarily by increases to valuation allowances and reserves, as well as an investment in a foreign subsidiary. | |
For the first six months of fiscal 2015 and 2014, the Company's effective tax rate was 24.9% and 31.9%, respectively. The effective tax rate for the first six months of fiscal 2015 was favorably impacted by the mix of income in lower tax rate jurisdictions and the release of reserves, primarily related to the formal deregistration of a foreign branch and the settlement of an audit in a foreign jurisdiction. The effective tax rate for the first six months of fiscal 2014 was unfavorably impacted primarily by increases to valuation allowances and reserves. | |
The Company applies the guidance in ASC 740, which requires management to use its judgment to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, the Company examines all available evidence on a jurisdiction by jurisdiction basis and weighs the positive and negative evidence when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items: (i) the historic levels of income or losses over a range of time periods, which may extend beyond the most recent three fiscal years depending upon the historical volatility of income in an individual jurisdiction; (ii) expectations and risks associated with underlying estimates of future taxable income, including considering the historical trend of down-cycles in the semiconductor and related industries; and (iii) prudent and feasible tax planning strategies. | |
As of the end of fiscal 2014, the Company had a partial valuation allowance against significant net operating loss carry-forward deferred tax assets related to a legal entity in Europe due to, among several other factors, a history of losses in that entity. In recent fiscal years, such entity has been experiencing improved earnings, which required the partial release of the valuation allowance to the extent such entity has projected future taxable income. ASC 740 requires a preponderance of positive evidence in order to reach a conclusion to release all or a portion of a valuation allowance when negative evidence exists. The Company continues to evaluate the need for a valuation allowance against these deferred tax assets and will adjust the valuation allowance as appropriate, which, if reduced, could result in a significant decrease to the effective tax rate in the period of the adjustment. |
Pension_plan
Pension plan | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Pension plan | Pension plan | |||||||||||||||
The Company has a noncontributory defined benefit pension plan (the “Plan”) for which the components of net periodic pension costs during the second quarters and six months ended December 27, 2014 and December 28, 2013 were as follows: | ||||||||||||||||
Second Quarters Ended | Six Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Thousands) | ||||||||||||||||
Service cost | $ | 9,873 | $ | 9,183 | $ | 19,746 | $ | 18,366 | ||||||||
Interest cost | 4,449 | 4,289 | 8,898 | 8,578 | ||||||||||||
Expected return on plan assets | (9,055 | ) | (7,727 | ) | (18,110 | ) | (15,454 | ) | ||||||||
Recognized net actuarial loss | 3,251 | 3,171 | 6,502 | 6,342 | ||||||||||||
Amortization of prior service credit | (393 | ) | (393 | ) | (786 | ) | (786 | ) | ||||||||
Net periodic pension cost | $ | 8,125 | $ | 8,523 | $ | 16,250 | $ | 17,046 | ||||||||
The Company made contributions to the Plan of $20.0 million during the first six months of fiscal 2015. The Company expects to make an additional contribution to the Plan of $10.0 million in each of the remaining quarters of the fiscal year. | ||||||||||||||||
The Plan meets the definition of a defined benefit plan and as a result, the Company must apply ASC 715 pension accounting to the Plan. The Plan itself, however, is a cash balance plan that is similar in nature to a defined contribution plan in that a participant's benefit is defined in terms of a stated account balance. A cash balance plan provides the Company with the benefit of applying any excess earnings on the Plan’s investments toward the Company’s future cash funding obligations. | ||||||||||||||||
Amounts reclassified out of accumulated other comprehensive income (loss), net of tax, to operating expenses during the first six months of fiscal 2015 and fiscal 2014 were not material and substantially all related to net periodic pension costs including recognition of actuarial losses and amortization of prior service credits. |
Shareholders_Equity
Shareholders' Equity | 6 Months Ended |
Dec. 27, 2014 | |
Equity [Abstract] | |
Shareholders' equity | Shareholders' equity |
Share repurchase program | |
In November 2014, the Company’s Board of Directors authorized a $250.0 million increase in the Company's existing share repurchase program. With this increase, the Company may repurchase up to $1.0 billion of common stock in the open market or through privately negotiated transactions. The timing and actual number of shares purchased will depend on a variety of factors such as share price, corporate and regulatory requirements, and prevailing market conditions. During the second quarter of fiscal 2015, the Company repurchased 2.3 million shares under this program at an average market price of $39.86 per share for a total cost of $91.0 million. Since the beginning of the repurchase program through the end of the second quarter of fiscal 2015, the Company has repurchased 20.8 million shares at an aggregate cost of $642.9 million, and $357.1 million remained available for future repurchases under the share repurchase program. | |
Common stock dividend | |
In November 2014, the Company's Board of Directors approved a dividend of $0.16 per common share and dividend payments of $21.8 million were made in December 2014. During the six months ended December 27, 2014, the Company has paid dividends of $0.32 per common share and $43.9 million in total. |
Earnings_per_share
Earnings per share | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings per share | Earnings per share | |||||||||||||||
Second Quarters Ended | Six Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 163,706 | $ | 124,864 | $ | 291,652 | $ | 245,488 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares for basic earnings per share | 136,541 | 137,702 | 137,425 | 137,558 | ||||||||||||
Net effect of dilutive stock option, restricted stock and performance share awards | 2,431 | 2,442 | 2,486 | 2,376 | ||||||||||||
Weighted average common shares for diluted earnings per share | 138,972 | 140,144 | 139,911 | 139,934 | ||||||||||||
Basic earnings per share | $ | 1.2 | $ | 0.91 | $ | 2.12 | $ | 1.78 | ||||||||
Diluted earnings per share | $ | 1.18 | $ | 0.89 | $ | 2.08 | $ | 1.75 | ||||||||
Stock options excluded from earnings per share calculation due to anti-dilutive effect | — | — | — | — | ||||||||||||
Additional_cash_flow_informati
Additional cash flow information | 6 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||||||
Additional cash flow information | Additional cash flow information | |||||||
Interest and income taxes paid in the six months ended December 27, 2014 and December 28, 2013 were as follows: | ||||||||
Six Months Ended | ||||||||
December 27, | December 28, | |||||||
2014 | 2013 | |||||||
(Thousands) | ||||||||
Interest paid | $ | 50,355 | $ | 54,783 | ||||
Income taxes paid | $ | 86,486 | $ | 99,357 | ||||
The Company includes book overdrafts as part of accounts payable on its consolidated balance sheets and reflects changes in such balances as part of cash flows from operating activities in its consolidated statements of cash flows. | ||||||||
During the six months ended December 28, 2013, the Company had non-cash financing activities of $38.1 million related to contingent consideration in connection with acquisition activity in fiscal 2014. |
Segment_information
Segment information | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment information | Segment information | |||||||||||||||
Electronics Marketing (“EM”) and Technology Solutions (“TS”) are the Company's reportable segments (“operating groups”). EM markets and sells semiconductors and interconnect, passive and electromechanical devices and embedded products to a diverse customer base serving many end-markets. TS focuses on the value-added distribution of enterprise computing servers and systems, software, storage, services and complex solutions from the world’s foremost technology manufacturers. TS also provides the latest hard disk drives, microprocessor, motherboard and DRAM module technologies to manufacturers of general-purpose computers and system builders. | ||||||||||||||||
Second Quarters Ended | Six Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Thousands) | ||||||||||||||||
Sales: | ||||||||||||||||
Electronics Marketing | $ | 4,435,190 | $ | 4,154,783 | $ | 8,809,285 | $ | 8,092,907 | ||||||||
Technology Solutions | 3,116,690 | 3,267,071 | 5,582,181 | 5,674,422 | ||||||||||||
$ | 7,551,880 | $ | 7,421,854 | $ | 14,391,466 | $ | 13,767,329 | |||||||||
Operating income (expense): | ||||||||||||||||
Electronics Marketing | $ | 191,449 | $ | 171,685 | $ | 394,160 | $ | 347,468 | ||||||||
Technology Solutions | 117,582 | 120,225 | 179,974 | 182,816 | ||||||||||||
Corporate | (34,435 | ) | (28,702 | ) | (75,813 | ) | (67,596 | ) | ||||||||
274,596 | 263,208 | 498,321 | 462,688 | |||||||||||||
Restructuring, integration and other expenses | (13,257 | ) | (28,442 | ) | (31,577 | ) | (40,541 | ) | ||||||||
(Note 13) | ||||||||||||||||
Amortization of acquired intangible assets and other | (11,052 | ) | (13,194 | ) | (23,260 | ) | (21,588 | ) | ||||||||
$ | 250,287 | $ | 221,572 | $ | 443,484 | $ | 400,559 | |||||||||
Sales, by geographic area: | ||||||||||||||||
Americas (1) | $ | 3,051,888 | $ | 3,063,643 | $ | 5,699,008 | $ | 5,552,311 | ||||||||
EMEA (2) | 2,062,052 | 2,152,921 | 4,037,431 | 3,945,010 | ||||||||||||
Asia/Pacific (3) | 2,437,940 | 2,205,290 | 4,655,027 | 4,270,008 | ||||||||||||
$ | 7,551,880 | $ | 7,421,854 | $ | 14,391,466 | $ | 13,767,329 | |||||||||
_____________________ | ||||||||||||||||
(1) | Includes sales from the United States of $2.70 billion and $2.69 billion for the quarters ended December 27, 2014, and December 28, 2013, respectively. Includes sales in the United States of $5.06 billion and $4.93 billion for the first six months of fiscal 2015 and 2014, respectively. | |||||||||||||||
(2) | Includes sales from Germany and the United Kingdom of $787.8 million and $384.8 million, respectively, for the quarter ended December 27, 2014 and $1.53 billion and $745.2 million, respectively, for the first six months of fiscal 2015. Includes sales from Germany and the United Kingdom of $921.7 million and $355.8 million, respectively, for the quarter ended December 28, 2013, and $1.64 billion and $640.8 million, respectively, for the first six months of fiscal 2014. | |||||||||||||||
(3) | Includes sales from China (including Hong Kong) and Taiwan of $727.1 million and $1.01 billion, respectively, for the quarter ended December 27, 2014, and $1.47 billion and $1.82 billion, respectively, for the first six months of fiscal 2015. Includes sales from China (including Hong Kong) and Taiwan of $728.2 million and $767.3 million, respectively, for the quarter ended December 28, 2013, and $1.46 billion and $1.40 billion, respectively, for the first six months of fiscal 2014. | |||||||||||||||
December 27, | June 28, | |||||||||||||||
2014 | 2014 | |||||||||||||||
(Thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Electronics Marketing | $ | 6,558,336 | $ | 6,840,166 | ||||||||||||
Technology Solutions | 4,421,508 | 4,140,230 | ||||||||||||||
Corporate | 511,250 | 275,121 | ||||||||||||||
$ | 11,491,094 | $ | 11,255,517 | |||||||||||||
Property, plant, and equipment, net, by geographic area: | ||||||||||||||||
Americas (1) | $ | 338,476 | $ | 306,167 | ||||||||||||
EMEA (2) | 174,859 | 199,374 | ||||||||||||||
Asia/Pacific | 28,569 | 29,458 | ||||||||||||||
$ | 541,904 | $ | 534,999 | |||||||||||||
_____________________ | ||||||||||||||||
(1) | Includes property, plant and equipment, net, of $330.9 million and $298.1 million as of December 27, 2014 and June 28, 2014, respectively, in the United States. | |||||||||||||||
(2) | Includes property, plant and equipment, net, of $84.4 million and $54.9 million in Germany and Belgium, respectively, as of December 27, 2014 and $95.5 million and $61.0 million in Germany and Belgium, respectively, as of June 28, 2014. |
Restructuring_integration_and_
Restructuring, integration and other expenses | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||
Restructuring, integration and other expenses | Restructuring, integration and other expenses | |||||||||||||||
Fiscal 2015 | ||||||||||||||||
During the second quarter and first six months of fiscal 2015, the Company took certain actions in an effort to reduce future operating expenses. In addition, the Company incurred integration and other costs primarily associated with the integration of acquisitions and certain global and regional businesses. The following table presents the restructuring, integration and other expenses recorded during the second quarter and first six months of fiscal 2015: | ||||||||||||||||
Second Quarter Ended | Six Months | |||||||||||||||
27-Dec-14 | Ended | |||||||||||||||
27-Dec-14 | ||||||||||||||||
(Thousands, except per share data) | ||||||||||||||||
Restructuring expenses | $ | 6,579 | $ | 17,352 | ||||||||||||
Integration costs | 4,024 | 10,290 | ||||||||||||||
Other costs including acquisition costs | 2,064 | 3,713 | ||||||||||||||
Changes in estimates for prior restructuring liabilities | 590 | 222 | ||||||||||||||
Restructuring, integration and other expenses before tax | $ | 13,257 | $ | 31,577 | ||||||||||||
Restructuring, integration and other expenses after tax | $ | 10,188 | $ | 23,348 | ||||||||||||
Restructuring, integration and other expenses per share on a diluted basis | $ | 0.07 | $ | 0.16 | ||||||||||||
The activity related to the restructuring liabilities established and other associated expenses incurred during fiscal 2015 is presented in the following table: | ||||||||||||||||
Severance | Facility | Other | Total | |||||||||||||
Exit Costs and Asset Impairments | ||||||||||||||||
(Thousands) | ||||||||||||||||
Fiscal 2015 restructuring expenses | $ | 5,799 | $ | 10,139 | $ | 1,414 | $ | 17,352 | ||||||||
Cash payments | (4,038 | ) | (2,724 | ) | — | (6,762 | ) | |||||||||
Non-cash amounts | — | (1,915 | ) | (1,414 | ) | (3,329 | ) | |||||||||
Other, principally foreign currency translation | (70 | ) | (68 | ) | — | (138 | ) | |||||||||
Balance at December 27, 2014 | $ | 1,691 | $ | 5,432 | $ | — | $ | 7,123 | ||||||||
Severance expense recorded in the first six months of fiscal 2015 related to the reduction of over 150 employees, primarily in business support functions, in connection with cost reduction actions taken in both operating groups. Facility exit costs primarily consist of liabilities for remaining lease obligations and the impairment of long-lived assets for locations and information technology hardware and software the Company has divested or has ceased using. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. Of the $17.4 million in restructuring expenses recorded during the first six months of fiscal 2015, $9.6 million related to EM and $7.8 million related to TS. As of December 27, 2014, the Company expects the majority of the remaining severance and facility exit costs to be paid by the end of fiscal 2015. | ||||||||||||||||
Integration costs are primarily related to the integration of acquired businesses, integration of global or regional businesses and specific and incremental costs incurred as part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs also include consulting costs for information technology system and business operation integration assistance, legal fees, travel, meeting, marketing and communication costs that are incrementally incurred as a result of such integration activities. Also included in integration costs are incremental salary costs specific to integration, consolidation and closure activities. Other costs consist primarily of professional fees incurred for acquisitions, additional costs incurred for businesses divested or exited in current or prior periods, any ongoing facilities operating costs associated with the consolidation, relocation and closure of facilities once such facilities have been vacated or substantially vacated, and other miscellaneous costs that relate to restructuring, integration and other expenses. Integration and other costs in the first six months of fiscal 2015 were comprised of many different costs, none of which were individually material. | ||||||||||||||||
Fiscal 2014 | ||||||||||||||||
During fiscal 2014, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during the first six months of fiscal 2015 related to the remaining restructuring liabilities established during fiscal 2014: | ||||||||||||||||
Severance | Facility | Other | Total | |||||||||||||
Exit Costs and Asset Impairments | ||||||||||||||||
(Thousands) | ||||||||||||||||
Balance at June 28, 2014 | $ | 23,744 | $ | 3,697 | $ | 344 | $ | 27,785 | ||||||||
Cash payments | (14,934 | ) | (983 | ) | (1 | ) | (15,918 | ) | ||||||||
Changes in estimates, net | 431 | 186 | — | 617 | ||||||||||||
Non-cash amounts | (92 | ) | (824 | ) | — | (916 | ) | |||||||||
Other, principally foreign currency translation | (985 | ) | (188 | ) | — | (1,173 | ) | |||||||||
Balance at December 27, 2014 | $ | 8,164 | $ | 1,888 | $ | 343 | $ | 10,395 | ||||||||
As of December 27, 2014, the Company expects the majority of the remaining severance, facility exit costs and other liabilities to be paid by the end of fiscal 2015. | ||||||||||||||||
Fiscal 2013 and prior | ||||||||||||||||
As of June 28, 2014, there were $13.1 million of restructuring liabilities remaining related to restructuring actions taken in fiscal years 2013 and prior, the majority of which relates to facility exit costs. The remaining balance for such historical restructuring actions as of December 27, 2014 was $7.7 million, which is expected to be paid by the end of fiscal 2016. |
Basis_of_presentation_and_new_1
Basis of presentation and new accounting pronouncements (Policies) | 6 Months Ended |
Dec. 27, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc.'s and its consolidated subsidiaries' (the “Company” or “Avnet”) financial position, results of operations, comprehensive income and cash flows. All such adjustments are of a normal recurring nature. |
The preparation of financial statements in accordance with generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. | |
Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 28, 2014. | |
New accounting pronouncements | New accounting pronouncements |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Application of the requirements of ASU 2014-09 may require more judgment and estimates within the revenue recognition process compared to existing GAAP. ASU 2014-09 is effective for the Company in the first quarter of fiscal 2018 using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) adoption with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the potential impact of the future adoption of ASU 2014-09 on its consolidated financial statements, including the method of adoption to be used. | |
During the six months ended December 27, 2014 there have been no new accounting pronouncements that are expected to significantly impact the Company's consolidated financial statements. |
Goodwill_and_intangible_assets1
Goodwill and intangible assets (Tables) | 6 Months Ended | |||||||||||||||||||||||
Dec. 27, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Change in goodwill balances by reportable segment | The following table presents the change in goodwill by reportable segment for the six months ended December 27, 2014. All of the accumulated impairment was recognized in fiscal 2009. | |||||||||||||||||||||||
Electronics | Technology | Total | ||||||||||||||||||||||
Marketing | Solutions | |||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||
Gross goodwill | $ | 1,713,567 | $ | 1,014,635 | $ | 2,728,202 | ||||||||||||||||||
Accumulated impairment | (1,045,110 | ) | (334,624 | ) | (1,379,734 | ) | ||||||||||||||||||
Carrying value at June 28, 2014 | 668,457 | 680,011 | 1,348,468 | |||||||||||||||||||||
Additions | — | — | — | |||||||||||||||||||||
Adjustments | 539 | 7 | 546 | |||||||||||||||||||||
Foreign currency translation | (24,012 | ) | (26,197 | ) | (50,209 | ) | ||||||||||||||||||
Carrying value at December 27, 2014 | $ | 644,984 | $ | 653,821 | $ | 1,298,805 | ||||||||||||||||||
Gross goodwill | $ | 1,690,094 | $ | 988,445 | $ | 2,678,539 | ||||||||||||||||||
Accumulated impairment | (1,045,110 | ) | (334,624 | ) | (1,379,734 | ) | ||||||||||||||||||
Carrying value at December 27, 2014 | $ | 644,984 | $ | 653,821 | $ | 1,298,805 | ||||||||||||||||||
Company's identifiable acquired intangible assets | The following table presents the Company’s acquired intangible assets at December 27, 2014 and June 28, 2014, respectively. These intangible assets have a weighted average remaining useful life of approximately 6 years. | |||||||||||||||||||||||
December 27, 2014 | June 28, 2014 | |||||||||||||||||||||||
Gross | Accumulated | Net Book | Gross | Accumulated | Net Book | |||||||||||||||||||
Carrying | Amortization | Value | Carrying | Amortization | Value | |||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
(Thousands) | ||||||||||||||||||||||||
Customer related | $ | 302,591 | $ | (168,624 | ) | $ | 133,967 | $ | 319,496 | $ | (155,604 | ) | $ | 163,892 | ||||||||||
Trade name | 5,506 | (1,578 | ) | 3,928 | 5,993 | (1,555 | ) | 4,438 | ||||||||||||||||
Other | 17,206 | (2,836 | ) | 14,370 | 18,833 | (2,855 | ) | 15,978 | ||||||||||||||||
$ | 325,303 | $ | (173,038 | ) | $ | 152,265 | $ | 344,322 | $ | (160,014 | ) | $ | 184,308 | |||||||||||
Estimated future amortization expense | The following table presents the estimated future amortization expense for the remainder of fiscal 2015, the next five fiscal years and thereafter (in thousands): | |||||||||||||||||||||||
Fiscal Year | ||||||||||||||||||||||||
Remainder of fiscal 2015 | $ | 21,392 | ||||||||||||||||||||||
2016 | 32,780 | |||||||||||||||||||||||
2017 | 30,855 | |||||||||||||||||||||||
2018 | 22,384 | |||||||||||||||||||||||
2019 | 18,789 | |||||||||||||||||||||||
2020 | 14,672 | |||||||||||||||||||||||
Thereafter | 11,393 | |||||||||||||||||||||||
Total | $ | 152,265 | ||||||||||||||||||||||
Debt_financing_Tables
Debt financing (Tables) | 6 Months Ended | |||||||||||
Dec. 27, 2014 | ||||||||||||
Debt Disclosure [Abstract] | ||||||||||||
Short-term borrowings | Short-term debt consists of the following (in thousands): | |||||||||||
December 27, | June 28, | December 27, | June 28, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
Interest Rate | Carrying Balance | |||||||||||
Bank credit facilities and other | 4.42% | 3.20% | $ | 159,184 | $ | 250,088 | ||||||
Accounts receivable securitization program | — | 0.60% | — | 615,000 | ||||||||
Notes due September 1, 2015 | 6.00% | — | 250,000 | — | ||||||||
Short-term debt | $ | 409,184 | $ | 865,088 | ||||||||
Long-term debt | Long-term debt consists of the following (in thousands): | |||||||||||
December 27, | June 28, | December 27, | June 28, | |||||||||
2014 | 2014 | 2014 | 2014 | |||||||||
Interest Rate | Carrying Balance | |||||||||||
Revolving credit facilities: | ||||||||||||
Accounts receivable securitization program | 0.56% | — | $ | 692,000 | $ | — | ||||||
2014 Credit Facility | 3.55% | — | 50,000 | — | ||||||||
2012 Credit Facility | — | 3.55% | — | 12,000 | ||||||||
Notes due: | ||||||||||||
September 1, 2015 | — | 6.00% | — | 250,000 | ||||||||
September 15, 2016 | 6.63% | 6.63% | 300,000 | 300,000 | ||||||||
June 15, 2020 | 5.88% | 5.88% | 300,000 | 300,000 | ||||||||
1-Dec-22 | 4.88% | 4.88% | 350,000 | 350,000 | ||||||||
Other long-term debt | 1.44% | 1.40% | 2,104 | 3,867 | ||||||||
Long-term debt before discount | 1,694,104 | 1,215,867 | ||||||||||
Discount on Notes | (1,797 | ) | (2,053 | ) | ||||||||
Long-term debt | $ | 1,692,307 | $ | 1,213,814 | ||||||||
Pension_plan_Tables
Pension plan (Tables) | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||||||
Components of net periodic pension costs | The Company has a noncontributory defined benefit pension plan (the “Plan”) for which the components of net periodic pension costs during the second quarters and six months ended December 27, 2014 and December 28, 2013 were as follows: | |||||||||||||||
Second Quarters Ended | Six Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Thousands) | ||||||||||||||||
Service cost | $ | 9,873 | $ | 9,183 | $ | 19,746 | $ | 18,366 | ||||||||
Interest cost | 4,449 | 4,289 | 8,898 | 8,578 | ||||||||||||
Expected return on plan assets | (9,055 | ) | (7,727 | ) | (18,110 | ) | (15,454 | ) | ||||||||
Recognized net actuarial loss | 3,251 | 3,171 | 6,502 | 6,342 | ||||||||||||
Amortization of prior service credit | (393 | ) | (393 | ) | (786 | ) | (786 | ) | ||||||||
Net periodic pension cost | $ | 8,125 | $ | 8,523 | $ | 16,250 | $ | 17,046 | ||||||||
Earnings_per_share_Tables
Earnings per share (Tables) | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Basic and diluted earnings per share calculation | ||||||||||||||||
Second Quarters Ended | Six Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Thousands, except per share data) | ||||||||||||||||
Numerator: | ||||||||||||||||
Net income | $ | 163,706 | $ | 124,864 | $ | 291,652 | $ | 245,488 | ||||||||
Denominator: | ||||||||||||||||
Weighted average common shares for basic earnings per share | 136,541 | 137,702 | 137,425 | 137,558 | ||||||||||||
Net effect of dilutive stock option, restricted stock and performance share awards | 2,431 | 2,442 | 2,486 | 2,376 | ||||||||||||
Weighted average common shares for diluted earnings per share | 138,972 | 140,144 | 139,911 | 139,934 | ||||||||||||
Basic earnings per share | $ | 1.2 | $ | 0.91 | $ | 2.12 | $ | 1.78 | ||||||||
Diluted earnings per share | $ | 1.18 | $ | 0.89 | $ | 2.08 | $ | 1.75 | ||||||||
Stock options excluded from earnings per share calculation due to anti-dilutive effect | — | — | — | — | ||||||||||||
Additional_cash_flow_informati1
Additional cash flow information (Tables) | 6 Months Ended | |||||||
Dec. 27, 2014 | ||||||||
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract] | ||||||||
Interest and income taxes paid | Interest and income taxes paid in the six months ended December 27, 2014 and December 28, 2013 were as follows: | |||||||
Six Months Ended | ||||||||
December 27, | December 28, | |||||||
2014 | 2013 | |||||||
(Thousands) | ||||||||
Interest paid | $ | 50,355 | $ | 54,783 | ||||
Income taxes paid | $ | 86,486 | $ | 99,357 | ||||
Segment_information_Tables
Segment information (Tables) | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Sales, operating income, assets and property,plant and equipment by operating group | ||||||||||||||||
Second Quarters Ended | Six Months Ended | |||||||||||||||
December 27, | December 28, | December 27, | December 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(Thousands) | ||||||||||||||||
Sales: | ||||||||||||||||
Electronics Marketing | $ | 4,435,190 | $ | 4,154,783 | $ | 8,809,285 | $ | 8,092,907 | ||||||||
Technology Solutions | 3,116,690 | 3,267,071 | 5,582,181 | 5,674,422 | ||||||||||||
$ | 7,551,880 | $ | 7,421,854 | $ | 14,391,466 | $ | 13,767,329 | |||||||||
Operating income (expense): | ||||||||||||||||
Electronics Marketing | $ | 191,449 | $ | 171,685 | $ | 394,160 | $ | 347,468 | ||||||||
Technology Solutions | 117,582 | 120,225 | 179,974 | 182,816 | ||||||||||||
Corporate | (34,435 | ) | (28,702 | ) | (75,813 | ) | (67,596 | ) | ||||||||
274,596 | 263,208 | 498,321 | 462,688 | |||||||||||||
Restructuring, integration and other expenses | (13,257 | ) | (28,442 | ) | (31,577 | ) | (40,541 | ) | ||||||||
(Note 13) | ||||||||||||||||
Amortization of acquired intangible assets and other | (11,052 | ) | (13,194 | ) | (23,260 | ) | (21,588 | ) | ||||||||
$ | 250,287 | $ | 221,572 | $ | 443,484 | $ | 400,559 | |||||||||
Sales, by geographic area: | ||||||||||||||||
Americas (1) | $ | 3,051,888 | $ | 3,063,643 | $ | 5,699,008 | $ | 5,552,311 | ||||||||
EMEA (2) | 2,062,052 | 2,152,921 | 4,037,431 | 3,945,010 | ||||||||||||
Asia/Pacific (3) | 2,437,940 | 2,205,290 | 4,655,027 | 4,270,008 | ||||||||||||
$ | 7,551,880 | $ | 7,421,854 | $ | 14,391,466 | $ | 13,767,329 | |||||||||
_____________________ | ||||||||||||||||
(1) | Includes sales from the United States of $2.70 billion and $2.69 billion for the quarters ended December 27, 2014, and December 28, 2013, respectively. Includes sales in the United States of $5.06 billion and $4.93 billion for the first six months of fiscal 2015 and 2014, respectively. | |||||||||||||||
(2) | Includes sales from Germany and the United Kingdom of $787.8 million and $384.8 million, respectively, for the quarter ended December 27, 2014 and $1.53 billion and $745.2 million, respectively, for the first six months of fiscal 2015. Includes sales from Germany and the United Kingdom of $921.7 million and $355.8 million, respectively, for the quarter ended December 28, 2013, and $1.64 billion and $640.8 million, respectively, for the first six months of fiscal 2014. | |||||||||||||||
(3) | Includes sales from China (including Hong Kong) and Taiwan of $727.1 million and $1.01 billion, respectively, for the quarter ended December 27, 2014, and $1.47 billion and $1.82 billion, respectively, for the first six months of fiscal 2015. Includes sales from China (including Hong Kong) and Taiwan of $728.2 million and $767.3 million, respectively, for the quarter ended December 28, 2013, and $1.46 billion and $1.40 billion, respectively, for the first six months of fiscal 2014. | |||||||||||||||
December 27, | June 28, | |||||||||||||||
2014 | 2014 | |||||||||||||||
(Thousands) | ||||||||||||||||
Assets: | ||||||||||||||||
Electronics Marketing | $ | 6,558,336 | $ | 6,840,166 | ||||||||||||
Technology Solutions | 4,421,508 | 4,140,230 | ||||||||||||||
Corporate | 511,250 | 275,121 | ||||||||||||||
$ | 11,491,094 | $ | 11,255,517 | |||||||||||||
Property, plant, and equipment, net, by geographic area: | ||||||||||||||||
Americas (1) | $ | 338,476 | $ | 306,167 | ||||||||||||
EMEA (2) | 174,859 | 199,374 | ||||||||||||||
Asia/Pacific | 28,569 | 29,458 | ||||||||||||||
$ | 541,904 | $ | 534,999 | |||||||||||||
_____________________ | ||||||||||||||||
(1) | Includes property, plant and equipment, net, of $330.9 million and $298.1 million as of December 27, 2014 and June 28, 2014, respectively, in the United States. | |||||||||||||||
(2) | Includes property, plant and equipment, net, of $84.4 million and $54.9 million in Germany and Belgium, respectively, as of December 27, 2014 and $95.5 million and $61.0 million in Germany and Belgium, respectively, as of June 28, 2014. |
Restructuring_integration_and_1
Restructuring, integration and other expenses (Tables) | 6 Months Ended | |||||||||||||||
Dec. 27, 2014 | ||||||||||||||||
Fiscal Year 2015 [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Charges related to the acquisition and integration activities | The following table presents the restructuring, integration and other expenses recorded during the second quarter and first six months of fiscal 2015: | |||||||||||||||
Second Quarter Ended | Six Months | |||||||||||||||
27-Dec-14 | Ended | |||||||||||||||
27-Dec-14 | ||||||||||||||||
(Thousands, except per share data) | ||||||||||||||||
Restructuring expenses | $ | 6,579 | $ | 17,352 | ||||||||||||
Integration costs | 4,024 | 10,290 | ||||||||||||||
Other costs including acquisition costs | 2,064 | 3,713 | ||||||||||||||
Changes in estimates for prior restructuring liabilities | 590 | 222 | ||||||||||||||
Restructuring, integration and other expenses before tax | $ | 13,257 | $ | 31,577 | ||||||||||||
Restructuring, integration and other expenses after tax | $ | 10,188 | $ | 23,348 | ||||||||||||
Restructuring, integration and other expenses per share on a diluted basis | $ | 0.07 | $ | 0.16 | ||||||||||||
Activity related to the restructuring reserves | The activity related to the restructuring liabilities established and other associated expenses incurred during fiscal 2015 is presented in the following table: | |||||||||||||||
Severance | Facility | Other | Total | |||||||||||||
Exit Costs and Asset Impairments | ||||||||||||||||
(Thousands) | ||||||||||||||||
Fiscal 2015 restructuring expenses | $ | 5,799 | $ | 10,139 | $ | 1,414 | $ | 17,352 | ||||||||
Cash payments | (4,038 | ) | (2,724 | ) | — | (6,762 | ) | |||||||||
Non-cash amounts | — | (1,915 | ) | (1,414 | ) | (3,329 | ) | |||||||||
Other, principally foreign currency translation | (70 | ) | (68 | ) | — | (138 | ) | |||||||||
Balance at December 27, 2014 | $ | 1,691 | $ | 5,432 | $ | — | $ | 7,123 | ||||||||
Fiscal Year 2014 [Member] | ||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||
Activity related to the restructuring reserves | The following table presents the activity during the first six months of fiscal 2015 related to the remaining restructuring liabilities established during fiscal 2014: | |||||||||||||||
Severance | Facility | Other | Total | |||||||||||||
Exit Costs and Asset Impairments | ||||||||||||||||
(Thousands) | ||||||||||||||||
Balance at June 28, 2014 | $ | 23,744 | $ | 3,697 | $ | 344 | $ | 27,785 | ||||||||
Cash payments | (14,934 | ) | (983 | ) | (1 | ) | (15,918 | ) | ||||||||
Changes in estimates, net | 431 | 186 | — | 617 | ||||||||||||
Non-cash amounts | (92 | ) | (824 | ) | — | (916 | ) | |||||||||
Other, principally foreign currency translation | (985 | ) | (188 | ) | — | (1,173 | ) | |||||||||
Balance at December 27, 2014 | $ | 8,164 | $ | 1,888 | $ | 343 | $ | 10,395 | ||||||||
Acquisitions_and_divestitures_
Acquisitions and divestitures (Details Textuals) (USD $) | 6 Months Ended | 12 Months Ended | |
Dec. 27, 2014 | Dec. 28, 2013 | Jun. 28, 2014 | |
business | |||
Business Acquisition [Line Items] | |||
Goodwill | $0 | ||
Number of businesses acquired | 3 | ||
Aggregate consideration for acquisitions | 219,726,000 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 0 | 116,882,000 | |
2014 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | 181,645,000 | ||
Business Combination, Contingent Consideration, Liability | 38,081,000 | ||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 50,000,000 | ||
Business Acquisition, Aggregate Annualized Revenue of Acquired Businesses | 492,000,000 | ||
Payments to Acquire Businesses, Net of Cash Acquired | $116,900,000 |
Goodwill_and_intangible_assets2
Goodwill and intangible assets (Details) (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Jun. 28, 2014 |
Carrying amount of goodwill, by reportable segment | ||
Gross Goodwill | $2,678,539 | $2,728,202 |
Accumulated Impairment | -1,379,734 | -1,379,734 |
Carrying value | 1,348,468 | |
Additions | 0 | |
Adjustments | 546 | |
Foreign currency translation | -50,209 | |
Carrying value | 1,298,805 | |
Electronics Marketing [Member] | ||
Carrying amount of goodwill, by reportable segment | ||
Gross Goodwill | 1,690,094 | 1,713,567 |
Accumulated Impairment | -1,045,110 | -1,045,110 |
Carrying value | 668,457 | |
Additions | 0 | |
Adjustments | 539 | |
Foreign currency translation | -24,012 | |
Carrying value | 644,984 | |
Technology Solutions [Member] | ||
Carrying amount of goodwill, by reportable segment | ||
Gross Goodwill | 988,445 | 1,014,635 |
Accumulated Impairment | -334,624 | -334,624 |
Carrying value | 680,011 | |
Additions | 0 | |
Adjustments | 7 | |
Foreign currency translation | -26,197 | |
Carrying value | $653,821 |
Goodwill_and_intangible_assets3
Goodwill and intangible assets Intangible Assets (Details 1) (USD $) | Dec. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $325,303 | $344,322 |
Accumulated Amortization | -173,038 | -160,014 |
Net Book Value | 152,265 | 184,308 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 302,591 | 319,496 |
Accumulated Amortization | -168,624 | -155,604 |
Net Book Value | 133,967 | 163,892 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 5,506 | 5,993 |
Accumulated Amortization | -1,578 | -1,555 |
Net Book Value | 3,928 | 4,438 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 17,206 | 18,833 |
Accumulated Amortization | -2,836 | -2,855 |
Net Book Value | $14,370 | $15,978 |
Goodwill_and_intangible_assets4
Goodwill and intangible assets (Estimated Future Amortization Expense) (Details 2) (USD $) | Dec. 27, 2014 |
In Thousands, unless otherwise specified | |
Fiscal Year: | |
Remainder of fiscal 2015 | $21,392 |
2016 | 32,780 |
2017 | 30,855 |
2018 | 22,384 |
2019 | 18,789 |
2020 | 14,672 |
Thereafter | 11,393 |
Total | $152,265 |
Goodwill_and_intangible_assets5
Goodwill and intangible assets (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Weighted average life of intangible assets | 6 years | |||
Intangible asset amortization expense | $10,433 | $12,513 | $21,990 | $20,903 |
Debt_financing_Details
Debt financing (Details) (USD $) | Dec. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Components of short-term debt | ||
Short-term debt | $409,184 | $865,088 |
Bank credit facilities and other | ||
Components of short-term debt | ||
Short-term Debt, Weighted Average Interest Rate | 4.42% | 3.20% |
Short-term debt | 159,184 | 250,088 |
Accounts receivable securitization program | ||
Components of short-term debt | ||
Short-term Debt, Weighted Average Interest Rate | 0.00% | 0.60% |
Short-term debt | 0 | 615,000 |
Notes due September 1, 2015 | ||
Components of short-term debt | ||
Short-term Debt, Weighted Average Interest Rate | 6.00% | 0.00% |
Short-term debt | $250,000 | $0 |
Debt_financing_Details_1
Debt financing (Details 1) (USD $) | Dec. 27, 2014 | Jun. 28, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Gross | $1,694,104 | $1,215,867 |
Debt Instrument, Unamortized Discount | -1,797 | -2,053 |
Long-term debt | 1,692,307 | 1,213,814 |
Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Accounts receivable securitization program | 692,000 | 0 |
Long-term Debt, Weighted Average Interest Rate | 0.56% | 0.00% |
2014 Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit Facilities | 50,000 | 0 |
Long-term Debt, Weighted Average Interest Rate | 3.55% | 0.00% |
2012 Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit Facilities | 0 | 12,000 |
Long-term Debt, Weighted Average Interest Rate | 0.00% | 3.55% |
Notes Due September 1, 2015 | ||
Debt Instrument [Line Items] | ||
Senior notes | 0 | 250,000 |
Stated interest rate on senior notes | 0.00% | 6.00% |
Notes due September 15, 2016 | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
Stated interest rate on senior notes | 6.63% | 6.63% |
Notes due June 15, 2020 | ||
Debt Instrument [Line Items] | ||
Senior notes | 300,000 | 300,000 |
Stated interest rate on senior notes | 5.88% | 5.88% |
Notes due December 1, 2022 | ||
Debt Instrument [Line Items] | ||
Senior notes | 350,000 | 350,000 |
Stated interest rate on senior notes | 4.88% | 4.88% |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Other long-term debt | $2,104 | $3,867 |
Long-term Debt, Weighted Average Interest Rate | 1.44% | 1.40% |
Debt_financing_Details_Textual
Debt financing (Details Textuals) (USD $) | 6 Months Ended | |
Dec. 27, 2014 | Jun. 28, 2014 | |
Debt Instrument [Line Items] | ||
Receivables Owned by Special Purpose Entity | $1,650,000,000 | $1,650,000,000 |
Debt Financing [Abstract] | ||
Company's debt, carrying value | 2,100,000,000 | 2,080,000,000 |
Company's debt, fair value | 2,190,000,000 | 2,190,000,000 |
Accounts Receivable Securitization Program [Member] | ||
Debt Instrument [Line Items] | ||
Accounts receivable securitization program maximum borrowing amount | 900,000,000 | |
Accounts receivable securitization program loan term | 2 years | |
Accounts receivable securitization program, expiration date | Aug-16 | |
Program facility fee | 0.38% | |
Base Rate or Commercial Paper [Member] | Accounts Receivable Securitization Program [Member] | ||
Debt Instrument [Line Items] | ||
Terms on which interest on borrowings is calculated | base rate or a commercial paper rate | |
Interest on borrowings spread | 0.38% | |
2014 Credit Facility | ||
Debt Instrument [Line Items] | ||
Line of credit facility term | 5 years | |
Line of credit facility expiration date | 1-Jul-19 | |
2014 Credit Facility | Unsecured Debt [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 1,250,000,000 | |
2014 Credit Facility | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Line of credit facility, maximum borrowing capacity | 150,000,000 | |
Letters of credit outstanding, amount | 2,000,000 | |
2012 Credit Facility | Letter of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $2,000,000 |
Derivative_financial_instrumen1
Derivative financial instruments (Details Textuals) | 6 Months Ended |
Dec. 27, 2014 | |
General Discussion of Derivative Instruments and Hedging Activities [Abstract] | |
Company's objectives for using derivative instruments | This subjects the Company to the risks associated with fluctuations in foreign currency exchange rates. The Company reduces this risk by utilizing natural hedging (i.e., offsetting receivables and payables) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign exchange contracts typically with maturities of less than sixty days (“economic hedgesâ€). The Company continues to have exposure to foreign currency risks to the extent they are not hedged. |
Maximum maturity of foreign exchange contracts (less than 60 days) | 60 days |
Commitments_and_contingencies_
Commitments and contingencies (Details Textuals) (Bell Microproducts Inc [Member], USD $) | Dec. 27, 2014 |
In Millions, unless otherwise specified | |
Bell Microproducts Inc [Member] | |
Loss Contingency, Estimate [Abstract] | |
Loss contingency, estimate of possible loss | $10 |
Loss contingency, range of possible loss, maximum | $73 |
Commitments_and_contingencies_1
Commitments and contingencies Litigation settlement (Details Textuals 2) (USD $) | 3 Months Ended | 6 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Litigation Settlement [Abstract] | ||||||
Gain on legal settlement | $0 | $3,000 | $0 | $19,137 | $0 | $19,137 |
Income_taxes_Details_Textuals
Income taxes (Details Textuals) | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 25.60% | 33.80% | 24.90% | 31.90% |
Pension_plan_Details
Pension plan (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Components of net periodic pension costs | ||||
Service cost | $9,873 | $9,183 | $19,746 | $18,366 |
Interest cost | 4,449 | 4,289 | 8,898 | 8,578 |
Expected return on plan assets | -9,055 | -7,727 | -18,110 | -15,454 |
Recognized net actuarial loss | 3,251 | 3,171 | 6,502 | 6,342 |
Amortization of prior service credit | -393 | -393 | -786 | -786 |
Net periodic pension cost | $8,125 | $8,523 | $16,250 | $17,046 |
Pension_plan_Details_Textuals
Pension plan (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 27, 2014 | Dec. 27, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Defined benefit plans, estimated future employer contributions each remaining quarter of current fiscal year | $10 | |
Company's contribution to pension plan in the current quarter | $20 | |
Company's estimated future employer contributions in current fiscal year | The Company expects to make an additional contribution to the Plan of $10.0 million in each of the remaining quarters of the fiscal year. |
Shareholders_Equity_Share_Repu
Shareholders' Equity Share Repurchase Program (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 27, 2014 |
Share Repurchae Program [Abstract] | ||
Stock Repurchase Program, Authorized Additional Amount | $250 | |
Stock Repurchase Program, Authorized Amount | 1,000 | |
Stock Repurchased and Retired During Period, Shares | 2.3 | |
Share Price | $39.86 | $39.86 |
Stock Repurchased and Retired During Period, Value | 91 | |
Stock Repurchase Program, Aggregate Number of Shares Repurchased Since Inception | 20.8 | |
Stock Repurchase Program, Aggregate Cost of Shares Repurchased Since Inception | 642.9 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $357.10 |
Shareholders_Equity_Common_Sto
Shareholders' Equity Common Stock Dividend (Details Textuals 2) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Dividends, Common Stock [Abstract] | ||||
Cash dividends paid per common share | $0.16 | $0.15 | $0.32 | $0.30 |
Dividends paid on common stock | ($21,759) | ($43,875) | ($41,263) |
Earnings_per_share_Details
Earnings per share (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Numerator: | ||||
Net income | $163,706 | $124,864 | $291,652 | $245,488 |
Denominator: | ||||
Weighted average common shares for basic earnings per share | 136,541,000 | 137,702,000 | 137,425,000 | 137,558,000 |
Net effect of dilutive stock option, restricted stock and performance share awards | 2,431,000 | 2,442,000 | 2,486,000 | 2,376,000 |
Weighted average common shares for diluted earnings per share | 138,972,000 | 140,144,000 | 139,911,000 | 139,934,000 |
Basic earnings per share | $1.20 | $0.91 | $2.12 | $1.78 |
Diluted earnings per share | $1.18 | $0.89 | $2.08 | $1.75 |
Stock options excluded from earnings per share calculation due to anti-dilutive effect | 0 | 0 | 0 | 0 |
Additional_cash_flow_informati2
Additional cash flow information (Details) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Jun. 28, 2014 |
Interest and income taxes paid | |||
Interest paid | $50,355 | $54,783 | |
Income taxes paid | 86,486 | 99,357 | |
2014 Acquisitions [Member] | |||
Business Acquisition [Line Items] | |||
Business Combination, Contingent Consideration, Liability | $38,081 |
Segment_information_Details
Segment information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Jun. 28, 2014 |
Sales: | |||||
Sales | $7,551,880 | $7,421,854 | $14,391,466 | $13,767,329 | |
Operating income: | |||||
Operating Income Loss Before Restructuring Charges and Intangible Amortization | 274,596 | 263,208 | 498,321 | 462,688 | |
Restructuring, integration and other expenses (Note 13) | -13,257 | -28,442 | -31,577 | -40,541 | |
Amortization of acquired intangible assets and other | -11,052 | -13,194 | -23,260 | -21,588 | |
Operating income | 250,287 | 221,572 | 443,484 | 400,559 | |
Sales, by geographic area: | |||||
Sales | 7,551,880 | 7,421,854 | 14,391,466 | 13,767,329 | |
Assets: | |||||
Assets | 11,491,094 | 11,491,094 | 11,255,517 | ||
Property, plant and equipment, net, by geographic area | |||||
Property, plant and equipment, net | 541,904 | 541,904 | 534,999 | ||
Americas [Member] | |||||
Sales: | |||||
Sales | 3,051,888 | 3,063,643 | 5,699,008 | 5,552,311 | |
Sales, by geographic area: | |||||
Sales | 3,051,888 | 3,063,643 | 5,699,008 | 5,552,311 | |
Property, plant and equipment, net, by geographic area | |||||
Property, plant and equipment, net | 338,476 | 338,476 | 306,167 | ||
EMEA [Member] | |||||
Sales: | |||||
Sales | 2,062,052 | 2,152,921 | 4,037,431 | 3,945,010 | |
Sales, by geographic area: | |||||
Sales | 2,062,052 | 2,152,921 | 4,037,431 | 3,945,010 | |
Property, plant and equipment, net, by geographic area | |||||
Property, plant and equipment, net | 174,859 | 174,859 | 199,374 | ||
Asia/Pacific [Member] | |||||
Sales: | |||||
Sales | 2,437,940 | 2,205,290 | 4,655,027 | 4,270,008 | |
Sales, by geographic area: | |||||
Sales | 2,437,940 | 2,205,290 | 4,655,027 | 4,270,008 | |
Property, plant and equipment, net, by geographic area | |||||
Property, plant and equipment, net | 28,569 | 28,569 | 29,458 | ||
Electronics Marketing [Member] | |||||
Sales: | |||||
Sales | 4,435,190 | 4,154,783 | 8,809,285 | 8,092,907 | |
Operating income: | |||||
Operating Income Loss Before Restructuring Charges and Intangible Amortization | 191,449 | 171,685 | 394,160 | 347,468 | |
Sales, by geographic area: | |||||
Sales | 4,435,190 | 4,154,783 | 8,809,285 | 8,092,907 | |
Assets: | |||||
Assets | 6,558,336 | 6,558,336 | 6,840,166 | ||
Technology Solutions [Member] | |||||
Sales: | |||||
Sales | 3,116,690 | 3,267,071 | 5,582,181 | 5,674,422 | |
Operating income: | |||||
Operating Income Loss Before Restructuring Charges and Intangible Amortization | 117,582 | 120,225 | 179,974 | 182,816 | |
Sales, by geographic area: | |||||
Sales | 3,116,690 | 3,267,071 | 5,582,181 | 5,674,422 | |
Assets: | |||||
Assets | 4,421,508 | 4,421,508 | 4,140,230 | ||
Corporate [Member] | |||||
Operating income: | |||||
Operating Income Loss Before Restructuring Charges and Intangible Amortization | -34,435 | -28,702 | -75,813 | -67,596 | |
Assets: | |||||
Assets | $511,250 | $511,250 | $275,121 |
Segment_information_Details_Te
Segment information (Details Textuals) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 | Jun. 28, 2014 |
Segment Reporting Information [Line Items] | |||||
Sales | $7,551,880 | $7,421,854 | $14,391,466 | $13,767,329 | |
Property, plant and equipment, net | 541,904 | 541,904 | 534,999 | ||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 2,700,000 | 2,690,000 | 5,060,000 | 4,930,000 | |
Property, plant and equipment, net | 330,900 | 330,900 | 298,100 | ||
Germany [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 787,800 | 921,700 | 1,530,000 | 1,640,000 | |
Property, plant and equipment, net | 84,400 | 84,400 | 95,500 | ||
Belgium [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Property, plant and equipment, net | 54,900 | 54,900 | 61,000 | ||
China [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 727,100 | 728,200 | 1,470,000 | 1,460,000 | |
Taiwan [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,007,400 | 767,300 | 1,820,000 | 1,400,000 | |
UNITED KINGDOM | |||||
Segment Reporting Information [Line Items] | |||||
Sales | $384,800 | $355,800 | $745,200 | $640,800 |
Restructuring_integration_and_2
Restructuring, integration and other expenses (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 27, 2014 | Dec. 28, 2013 | Dec. 27, 2014 | Dec. 28, 2013 |
Charges related to the acquisition and integration activities [Abstract] | ||||
Restructuring, integration and other expenses before tax | $13,257 | $28,442 | $31,577 | $40,541 |
Fiscal Year 2015 [Member] | ||||
Charges related to the acquisition and integration activities [Abstract] | ||||
Restructuring expenses | 6,579 | 17,352 | ||
Integration costs | 4,024 | 10,290 | ||
Other costs including acquisition costs | 2,064 | 3,713 | ||
Changes in estimates for prior restructuring liabilities | 590 | 222 | ||
Restructuring, integration and other expenses before tax | 13,257 | 31,577 | ||
Restructuring, integration and other expenses after tax | $10,188 | $23,348 | ||
Restructuring, integration and other expenses per share on a diluted basis | $0.07 | $0.16 |
Restructuring_integration_and_3
Restructuring, integration and other expenses (Details 1) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 27, 2014 |
Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | $17,352 |
Activity related to the restructuring reserves | |
Cash payments | -6,762 |
Non-cash amounts | -3,329 |
Other, principally foreign currency translation | -138 |
Balance at December 27, 2014 | 7,123 |
Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Balance at June 28, 2014 | 27,785 |
Cash payments | -15,918 |
Changes in estimates, net | 617 |
Non-cash amounts | -916 |
Other, principally foreign currency translation | -1,173 |
Balance at December 27, 2014 | 10,395 |
Severance Reserves [Member] | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 5,799 |
Activity related to the restructuring reserves | |
Cash payments | -4,038 |
Non-cash amounts | 0 |
Other, principally foreign currency translation | -70 |
Balance at December 27, 2014 | 1,691 |
Severance Reserves [Member] | Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Balance at June 28, 2014 | 23,744 |
Cash payments | -14,934 |
Changes in estimates, net | 431 |
Non-cash amounts | -92 |
Other, principally foreign currency translation | -985 |
Balance at December 27, 2014 | 8,164 |
Facility Exit Costs [Member] | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 10,139 |
Activity related to the restructuring reserves | |
Cash payments | -2,724 |
Non-cash amounts | -1,915 |
Other, principally foreign currency translation | -68 |
Balance at December 27, 2014 | 5,432 |
Facility Exit Costs [Member] | Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Balance at June 28, 2014 | 3,697 |
Cash payments | -983 |
Changes in estimates, net | 186 |
Non-cash amounts | -824 |
Other, principally foreign currency translation | -188 |
Balance at December 27, 2014 | 1,888 |
Other [Member] | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 1,414 |
Activity related to the restructuring reserves | |
Cash payments | 0 |
Non-cash amounts | -1,414 |
Other, principally foreign currency translation | 0 |
Balance at December 27, 2014 | 0 |
Other [Member] | Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Balance at June 28, 2014 | 344 |
Cash payments | -1 |
Changes in estimates, net | 0 |
Non-cash amounts | 0 |
Other, principally foreign currency translation | 0 |
Balance at December 27, 2014 | $343 |
Restructuring_integration_and_4
Restructuring, integration and other expenses (Details Textuals) (USD $) | 6 Months Ended | 3 Months Ended | |
In Thousands, unless otherwise specified | Dec. 27, 2014 | Dec. 27, 2014 | Jun. 28, 2014 |
employees | |||
Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, range of positions eliminated, low end | 150 | ||
Restructuring expenses | $17,352 | ||
Restructuring Reserve | 7,123 | 7,123 | |
Fiscal Year 2014 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 10,395 | 10,395 | 27,785 |
Fiscal Year 2013 and Prior [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 7,700 | 7,700 | 13,100 |
EM [Member] | Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 9,600 | ||
TS [Member] | Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 7,800 | ||
Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $17,352 | $6,579 |