Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Oct. 02, 2021 | Oct. 21, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-4224 | |
Entity Registrant Name | AVNET, INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-1890605 | |
Entity Address, Address Line One | 2211 South 47th Street | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85034 | |
City Area Code | 480 | |
Local Phone Number | 643-2000 | |
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | AVT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 99,222,109 | |
Entity Central Index Key | 0000008858 | |
Current Fiscal Year End Date | --07-02 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2021 | Jul. 03, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 299,101 | $ 199,691 |
Receivables | 3,720,296 | 3,576,130 |
Inventories | 3,283,825 | 3,236,837 |
Prepaid and other current assets | 161,845 | 150,763 |
Total current assets | 7,465,067 | 7,163,421 |
Property, plant and equipment, net | 351,873 | 368,452 |
Goodwill | 823,953 | 838,105 |
Intangible assets, net | 23,074 | 28,539 |
Operating lease assets | 257,614 | 265,988 |
Other assets | 289,728 | 260,917 |
Total assets | 9,211,309 | 8,925,422 |
Current liabilities: | ||
Short-term debt | 23,078 | |
Accounts payable | 2,467,743 | 2,401,357 |
Accrued expenses and other | 588,340 | 572,457 |
Short-term operating lease liabilities | 57,256 | 58,346 |
Total current liabilities | 3,113,339 | 3,055,238 |
Long-term debt | 1,389,689 | 1,191,329 |
Long-term operating lease liabilities | 230,350 | 239,838 |
Other liabilities | 332,332 | 354,833 |
Total liabilities | 5,065,710 | 4,841,238 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 99,336,434 shares and 99,601,393 shares, respectively | 99,336 | 99,601 |
Additional paid-in capital | 1,631,667 | 1,622,160 |
Retained earnings | 2,593,367 | 2,516,170 |
Accumulated other comprehensive loss | (178,771) | (153,747) |
Total shareholders' equity | 4,145,599 | 4,084,184 |
Total liabilities and shareholders' equity | $ 9,211,309 | $ 8,925,422 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Oct. 02, 2021 | Jul. 03, 2021 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares, issued | 99,336,434 | 99,601,393 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Income Statement [Abstract] | ||
Sales | $ 5,584,695 | $ 4,723,059 |
Revenue, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Cost of sales | $ 4,925,002 | $ 4,206,979 |
Cost, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Gross profit | $ 659,693 | $ 516,080 |
Selling, general and administrative expenses | 486,178 | 471,158 |
Restructuring, integration and other expenses | 5,272 | 26,420 |
Operating income | 168,243 | 18,502 |
Other expense, net | (409) | (19,498) |
Interest and other financing expenses, net | (22,844) | (22,301) |
Income (loss) before taxes | 144,990 | (23,297) |
Income tax expense (benefit) | 33,672 | (4,408) |
Net income (loss) | $ 111,318 | $ (18,889) |
Earnings (loss) per share: | ||
Basic | $ 1.12 | $ (0.19) |
Diluted | $ 1.10 | $ (0.19) |
Shares used to compute earnings per share: | ||
Basic | 99,647 | 98,897 |
Diluted | 101,116 | 98,897 |
Cash dividends paid per common share | $ 0.24 | $ 0.21 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 111,318 | $ (18,889) |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation and other | (29,036) | 90,373 |
Pension adjustments, net | 4,012 | 9,623 |
Total comprehensive income | $ 86,294 | $ 81,107 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained EarningsCumulative Effect, Adjustment | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Cumulative Effect, Adjustment | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 27, 2020 | $ 98,793 | $ 1,594,140 | $ 2,421,845 | $ (388,380) | $ 3,726,398 | ||
Shares issued Beginning Balance at Jun. 27, 2020 | 98,793,000 | ||||||
Net income (loss) | (18,889) | (18,889) | |||||
Translation adjustments and other | 90,373 | 90,373 | |||||
Pension liability adjustment, net | 9,623 | 9,623 | |||||
Cash dividends | (20,756) | (20,756) | |||||
Stock-based compensation | $ 51 | 5,191 | 5,242 | ||||
Stock-based compensation (in shares) | 51,000 | ||||||
Shares issued Ending Balance at Oct. 03, 2020 | 98,844,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Oct. 03, 2020 | $ 98,844 | 1,599,331 | $ (14,480) | 2,367,720 | (288,384) | $ (14,480) | 3,777,511 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jul. 03, 2021 | $ 99,601 | 1,622,160 | 2,516,170 | (153,747) | $ 4,084,184 | ||
Shares issued Beginning Balance at Jul. 03, 2021 | 99,601,000 | 99,601,393 | |||||
Net income (loss) | 111,318 | $ 111,318 | |||||
Translation adjustments and other | (29,036) | (29,036) | |||||
Pension liability adjustment, net | 4,012 | 4,012 | |||||
Cash dividends | (23,893) | (23,893) | |||||
Repurchases of common stock | $ (275) | (10,228) | (10,503) | ||||
Repurchase of common stock (in shares) | (275,000) | ||||||
Stock-based compensation | $ 10 | 9,507 | $ 9,517 | ||||
Stock-based compensation (in shares) | 10,000 | ||||||
Shares issued Ending Balance at Oct. 02, 2021 | 99,336,000 | 99,336,434 | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Oct. 02, 2021 | $ 99,336 | $ 1,631,667 | $ 2,593,367 | $ (178,771) | $ 4,145,599 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 111,318 | $ (18,889) |
Non-cash and other reconciling items: | ||
Depreciation | 21,833 | 21,845 |
Amortization | 5,210 | 20,117 |
Amortization of Operating Lease Assets | 13,751 | 14,079 |
Deferred income taxes | (3,259) | 6,614 |
Stock-based compensation | 9,178 | 4,961 |
Impairments | 15,166 | |
Other, net | 2,603 | 10,898 |
Changes in (net of effects from businesses acquired and divested): | ||
Receivables | (169,992) | (7,116) |
Inventories | (73,971) | (136,426) |
Accounts payable | 85,217 | 228,740 |
Accrued expenses and other, net | (32,856) | (37,545) |
Net cash flows (used) provided by operating activities | (30,968) | 122,444 |
Cash flows from financing activities: | ||
Borrowings under accounts receivable securitization, net | 59,300 | 166,900 |
Borrowings (repayments) under senior unsecured credit facility, net | 118,716 | (234,190) |
Borrowings (repayments) under bank credit facilities and other debt, net | (734) | (545) |
Repurchases of common stock | (9,566) | |
Dividends paid on common stock | (23,893) | (20,756) |
Other, net | (1,337) | 281 |
Net cash flows provided (used) by financing activities | 142,486 | (88,310) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (12,025) | (19,998) |
Acquisitions of assets and businesses | (18,700) | |
Other, net | 318 | 753 |
Net cash flows used for investing activities | (11,707) | (37,945) |
Effect on currency exchange rate changes on cash and cash equivalents | (401) | 9,829 |
Cash and cash equivalents: | ||
Increase | 99,410 | 6,018 |
Cash and cash equivalents at beginning of year | 199,691 | 477,038 |
Cash and cash equivalents at end of year | $ 299,101 | $ 483,056 |
Basis of presentation and new a
Basis of presentation and new accounting pronouncements | 3 Months Ended |
Oct. 02, 2021 | |
Basis of presentation and new accounting pronouncements | |
Basis of presentation and new accounting pronouncements | 1. 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. and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income and cash flows. All such adjustments are of a normal recurring nature. Preparing financial statements in accordance with generally accepted accounting principles in the United States (“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 and assumptions. Interim results of operations do not necessarily indicate 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 July 3, 2021. Fiscal year The Company operates on a “52/53 week” fiscal year, and fiscal 2022 contains 52 weeks compared to fiscal 2021, which contained 53 weeks. As a result, the first quarter of fiscal 2022, contained 13 weeks compared to the first quarter of fiscal 2021, which contained 14 weeks. Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within ASU No. 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company’s adoption of ASU No. 2019-12 beginning the first quarter of fiscal 2022 did not have a material impact on the Company’s Consolidated Financial Statements. Recently issued accounting pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope |
Receivables
Receivables | 3 Months Ended |
Oct. 02, 2021 | |
Receivables | |
Receivables | 2. Receivables The Company’s receivables and allowance for credit losses were as follows: October 2, July 3, 2021 2021 (Thousands) Receivables $ 3,808,214 $ 3,664,290 Allowance for Credit Losses (87,918) (88,160) The Company had the following activity in the allowance for credit losses during the first quarters of fiscal 2022 and 2021: October 2, October 3, 2021 2020 (Thousands) Balance at beginning of the period $ 88,160 $ 65,018 Effect of adopting credit loss accounting standard — 17,205 Credit Loss Provisions 4,174 1,786 Credit Loss Recoveries (276) (126) Receivables Write offs (3,193) (4,023) Foreign Currency Effect and Other (947) 1,667 Balance at end of the period $ 87,918 $ 81,527 |
Goodwill and intangible assets
Goodwill and intangible assets | 3 Months Ended |
Oct. 02, 2021 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | 3. Goodwill and intangible assets Goodwill The following table presents the change in goodwill by reportable segment for the three months ended October 2, 2021. Electronic Components Farnell Total (Thousands) Carrying value at July 3, 2021 (1) $ 310,582 $ 527,523 $ 838,105 Foreign currency translation (3,489) (10,663) (14,152) Carrying value at October 2, 2021 (1) $ 307,093 $ 516,860 $ 823,953 (1) Includes accumulated impairments of $1,482,677 from prior fiscal years. Intangible Assets The following table presents the Company’s acquired intangible assets at October 2, 2021 and July 3, 2021, respectively. October 2, 2021 July 3, 2021 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount (1) Amortization Value (Thousands) Customer related $ 318,429 $ (307,121) $ 11,308 $ 324,416 $ (312,392) $ 12,024 Trade name 56,024 (46,340) 9,684 57,184 (45,019) 12,165 Technology and other 56,697 (54,615) 2,082 57,809 (53,459) 4,350 $ 431,150 $ (408,076) $ 23,074 $ 439,409 $ (410,870) $ 28,539 (1) Intangible asset amortization expense was $5.2 million and $20.1 million for the first quarters of fiscal 2022 and 2021, respectively. The following table presents the estimated future amortization expense for the remainder of fiscal 2022 and the next five fiscal years (in thousands): Fiscal Year Remainder of fiscal 2022 $ 10,037 2023 6,534 2024 3,191 2025 1,472 2026 1,472 2027 368 Total $ 23,074 |
Debt
Debt | 3 Months Ended |
Oct. 02, 2021 | |
Debt | |
Debt | 4. Debt Short-term debt consists of the following (carrying balances in thousands): October 2, July 3, October 2, July 3, 2021 2021 2021 2021 Interest Rate Carrying Balance Bank credit facilities and other — 1.24 % $ — $ 23,078 Short-term debt $ — $ 23,078 Bank credit facilities and other consists primarily 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 the Company, including its foreign operations. Long-term debt consists of the following (carrying balances in thousands): October 2, July 3, October 2, July 3, 2021 2021 2021 2021 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program 0.83 % — $ 82,200 $ — Credit Facility (due June 2023) 1.18 % — 115,891 — Public notes due: December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 May 2031 3.00 % 3.00 % 300,000 300,000 Other long-term debt 1.40 % 1.22 % 792 1,185 Long-term debt before discount and debt issuance costs 1,398,883 1,201,185 Discount and debt issuance costs – unamortized (9,194) (9,856) Long-term debt $ 1,389,689 $ 1,191,329 In August 2021, the Company amended and extended for two years its trade accounts receivable securitization program (the “Securitization Program”) in the United States with a group of financial institutions. The Securitization Program allows the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings up to a maximum of $450 million. The Securitization Program does not qualify for off balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $772.1 million and $717.4 million at October 2, 2021, and July 3, 2021, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. Interest on borrowings is calculated using a one-month LIBOR rate plus a spread of 0.75%. The facility fee on the unused balance of the facility is up to 0.35%. The Company has a five-year $1.25 billion revolving credit facility (the “Credit Facility”) with a syndicate of banks, which expires in June 2023. It consists of revolving credit facilities and the issuance of up to $200.0 million of letters of credit and up to $300.0 million of loans in certain approved currencies, which expires in June 2023. Subject to certain conditions, the Credit Facility may be increased up to $1.50 billion. Under the Credit Facility, the Company may select from various interest rate options, currencies, and maturities. The Credit Facility contains certain covenants including various limitations on debt incurrence, share repurchases, dividends, investments, and capital expenditures. The 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 October 2, 2021, and July 3, 2021. As of October 2, 2021, and July 3, 2021, there were $1.2 million and $1.3 million, respectively, in letters of credit issued under the Credit Facility. As of October 2, 2021, the carrying value and fair value of the Company’s total debt was $1.39 billion and $1.47 billion, respectively. At July 3, 2021, the carrying value and fair value of the Company’s total debt was $1.21 billion and $1.30 billion, respectively. Fair value for the public notes was estimated based upon quoted market prices and, for other forms of debt, fair value approximates carrying value due to the market based variable nature of the interest rates on those debt facilities. |
Leases
Leases | 3 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Leases | 5. Leases Substantially all the Company’s leases are classified as operating leases and are predominately related to real property for distribution centers, office space, and integration facilities with a lease term of up to 17 years. The Company’s equipment leases are primarily for automobiles and equipment and are not material to the consolidated financial statements. The components of lease cost related to the Company’s operating leases were as follows (in thousands): First Quarters Ended October 2, October 3, 2021 2020 Operating lease cost $ 17,847 $ 18,402 Variable lease cost 6,118 6,288 Total lease cost $ 23,965 $ 24,690 Future minimum operating lease payments as of October 2, 2021, are as follows (in thousands): Fiscal Year Remainder of fiscal 2022 $ 50,480 2023 58,378 2024 41,960 2025 33,060 2026 28,426 Thereafter 133,533 Total future operating lease payments 345,837 Total imputed interest on operating lease liabilities (58,231) Total operating lease liabilities $ 287,606 Other information pertaining to operating leases consists of the following: First Quarters Ended October 2, October 3, 2021 2020 Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 9.0 9.3 Weighted-average discount rate 3.8 % 3.8 % Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands): First Quarters Ended October 2, October 3, 2021 2020 Supplemental Cash Flow Information: Cash paid for operating lease liabilities $ 14,826 $ 14,710 Operating lease assets obtained from new operating lease liabilities 7,578 21,718 |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Oct. 02, 2021 | |
Derivative financial instruments | |
Derivative financial instruments | 6. Derivative financial instruments Many of the Company’s subsidiaries purchase and sell products in currencies other than their functional currencies, which subjects the Company to the risks associated with fluctuations in currency exchange rates. The Company uses economic hedges to reduce this risk utilizing natural hedging ( i.e. The Company generally does not hedge its investments in its foreign operations. The Company does not enter derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase from suppliers. The Company’s foreign operations transactions are denominated primarily in the following currencies: U.S. Dollar, Euro, British Pound, Japanese Yen, Chinese Yuan, Taiwan Dollar, Canadian Dollar and Mexican Peso. The Company also, to a lesser extent, has foreign operations transactions in other EMEA and Asian foreign currencies. The fair values of forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in the Company’s consolidated balance sheets are as follows: October 2, July 3, 2021 2021 (Thousands) Prepaid and other current assets $ 6,835 $ 15,722 Accrued expenses and other 13,557 23,994 The amounts recorded to other income expense, net, related to derivative financial instruments for economic hedges are as follows: First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Net derivative financial instrument loss $ (8,771) $ (7,816) Under the Company’s economic hedging policies, gains and losses on the derivative financial instruments are classified within the same line item in the consolidated statements of operations as the remeasurement of the underlying assets or liabilities being economically hedged. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Oct. 02, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 7. Commitments and contingencies 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 such matters will have a material adverse effect on the Company’s financial condition, liquidity, or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations. For certain of these matters, it is not possible to determine the ultimate outcome, and the Company cannot reasonably estimate the maximum potential exposure or the range of possible loss, particularly regarding to matters in early stages. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position or liquidity, but could possibly be material to its results of operations in any single reporting period. As of October 2, 2021, and July 3, 2021, the Company had aggregate estimated liabilities of $14.7 million classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates. During the first quarter of fiscal 2021, the Company recorded a gain on legal settlement of $8.2 million, which is classified as a component of Restructuring, integration and other expenses. |
Income taxes
Income taxes | 3 Months Ended |
Oct. 02, 2021 | |
Income taxes | |
Income taxes | 8 . Income taxes The Company’s effective tax rate on its income before taxes was 23.2% in the first quarter of fiscal 2022. During the first quarter of fiscal 2022, the Company’s effective tax rate was unfavorably impacted primarily by increases to valuation allowances. During the first quarter of fiscal 2021, the Company’s effective tax rate on its loss before taxes was a benefit of 18.9%. During the first quarter of fiscal 2021, the Company’s effective tax rate was unfavorably impacted primarily by increases to valuation allowances, partially offset by (i) the release of unrecognized tax benefit reserves and (ii) the mix of income in lower tax jurisdictions. |
Pension and retirement plan
Pension and retirement plan | 3 Months Ended |
Oct. 02, 2021 | |
Pension and retirement plan | |
Pension and retirement plans | 9. Pension plan The Company has a noncontributory defined benefit pension plan that covers substantially all current or former U.S. employees (the “Plan”). Components of net periodic pension cost for the Plan was as follows: First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Service cost $ 3,752 $ 3,938 Total net periodic pension cost within selling, general and administrative expenses 3,752 3,938 Interest cost 3,947 3,976 Expected return on plan assets (12,284) (12,420) Amortization of prior service cost 1 75 Recognized net actuarial loss 4,086 5,151 Total net periodic pension benefit within other expense, net (4,250) (3,218) Net periodic pension (benefit) cost $ (498) $ 720 The Company made $8.0 million of contributions during the first quarter of fiscal 2022 and expects to make additional contributions to the Plan of up to $8.0 million in the remainder of fiscal 2022. |
Shareholders' equity
Shareholders' equity | 3 Months Ended |
Oct. 02, 2021 | |
Shareholders' equity | |
Shareholders' equity | 10. Shareholders’ equity Share repurchase program In August 2019, the Company’s Board of Directors amended the Company’s existing share repurchase program, increasing the cumulative total of authorized share repurchases to $2.95 billion of common stock in the open market or through privately negotiated transactions. The timing and actual number of shares repurchased will depend on a variety of factors such as share price, expected liquidity, expected compliance with financial debt convents, corporate and regulatory requirements, and prevailing market conditions. During the first quarter ended October 2, 2021, the Company repurchased 0.3 million shares under this program for a total cost of $10.5 million. As of October 2, 2021, the Company had $458.5 million remaining under its share repurchase authorization. Common stock dividend In August 2021, the Company’s Board of Directors approved a dividend of $0.24 per common share and dividend payments of $23.9 million were made in September 2021. |
Earnings per share
Earnings per share | 3 Months Ended |
Oct. 02, 2021 | |
Earnings per share | |
Earnings per share | 11. Earnings per share First Quarters Ended October 2, October 3, 2021 2020 (Thousands, except per share data) Numerator: Net income (loss) $ 111,318 $ (18,889) Denominator: Weighted average common shares for basic earnings per share 99,647 98,897 Net effect of dilutive stock-based compensation awards 1,469 — Weighted average common shares for diluted earnings per share 101,116 98,897 Basic earnings (loss) per share $ 1.12 $ (0.19) Diluted earnings (loss) per share $ 1.10 $ (0.19) Stock options excluded from earnings per share calculation due to anti-dilutive effect 897 875 For the first quarter of fiscal 2021, the diluted net loss per share is the same as basic net loss per share as the effect of all potential common shares would be anti-dilutive. |
Additional cash flow informatio
Additional cash flow information | 3 Months Ended |
Oct. 02, 2021 | |
Additional cash flow information | |
Additional cash flow information | 12. Additional cash flow information Non-cash investing and financing activities and supplemental cash flow information were as follows: First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 4,508 $ 3,173 Non-cash Financing Activities: Unsettled share repurchases $ 937 — Supplemental Cash Flow Information: Interest $ 11,636 $ 12,538 Income tax net payments 27,977 19,258 Included in cash and cash equivalents as of October 2, 2021, and July 3, 2021, was $3.4 million and $3.8 million, respectively, of cash equivalents, which was primarily comprised of investment grade money market funds and overnight time deposits. |
Segment information
Segment information | 3 Months Ended |
Oct. 02, 2021 | |
Segment information | |
Segment information | 13. Segment information Electronic Components (“EC”) and Farnell (“Farnell”) are the Company’s reportable segments (“operating groups”). EC markets and sells semiconductors and interconnect, passive and electromechanical devices and integrated components to a diverse customer base serving many end-markets. Farnell distributes electronic components and related products to the electronic system design community utilizing multi-channel sales and marketing resources. First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Sales: Electronic Components $ 5,129,497 $ 4,382,148 Farnell 455,198 340,911 5,584,695 4,723,059 Operating income: Electronic Components $ 162,462 $ 84,440 Farnell 49,593 11,959 212,055 96,399 Corporate (33,301) (31,302) Restructuring, integration and other expenses (5,272) (26,420) Amortization of acquired intangible assets and other (5,239) (20,175) Operating income $ 168,243 $ 18,502 Sales, by geographic area: Americas (1) $ 1,258,811 $ 1,205,695 EMEA (2) 1,747,579 1,480,674 Asia/Pacific (3) 2,578,305 2,036,690 Sales $ 5,584,695 $ 4,723,059 (1) Includes sales from the United States of $1.16 billion and $1.13 billion for the first quarters ended October 2, 2021, and October 3, 2020, respectively. (2) Includes sales from Germany and Belgium of $697.1 million and $307.6 million, respectively, for the first quarter ended October 2, 2021. Includes sales from Germany and Belgium of $574.8 million and $294.4 million, respectively, for the first quarter ended October 3, 2020. (3) Includes sales from China (including Hong Kong), Taiwan and Singapore of $826.8 million, $1.20 billion and $264.0 million, respectively, for the first quarter ended October 2, 2021. Includes sales from China (including Hong Kong), Taiwan and Singapore of $631.8 million, $916.3 million and $272.0 million, respectively, for the first quarter ended October 3, 2020. October 2, July 3, 2021 2021 (Thousands) Property, plant, and equipment, net, by geographic area: Americas (1) $ 138,380 $ 146,042 EMEA (2) 178,887 185,753 Asia/Pacific 34,606 36,657 Property, plant, and equipment, net $ 351,873 $ 368,452 (1) Includes property, plant and equipment, net, of $135.0 million and $142.7 million as of October 2, 2021, and July 3, 2021, respectively, in the United States. (2) Includes property, plant and equipment, net, of $74.1 million, $81.0 million and $19.9 million in Germany, the United Kingdom and Belgium, respectively, as of October 2, 2021; and $77.9 million, $83.5 million and $20.9 million in Germany, the United Kingdom and Belgium, respectively, as of July 3, 2021. |
Restructuring expenses
Restructuring expenses | 3 Months Ended |
Oct. 02, 2021 | |
Restructuring expenses | |
Restructuring expenses | 14. Restructuring expenses Fiscal 2021 and prior During fiscal 2021 and prior, 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 quarter of fiscal 2022 related to the remaining restructuring liabilities established during fiscal 2021 and prior: Facility and Contract Severance Exit Costs Total (Thousands) Balance at July 3, 2021 $ 35,099 $ 4,863 $ 39,962 Cash payments (11,892) (1,319) (13,211) Changes in estimates, net (330) — (330) Other, principally foreign currency translation (359) (41) (400) Balance at October 2, 2021 $ 22,518 $ 3,503 $ 26,021 The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2022. |
Basis of presentation and new_2
Basis of presentation and new accounting pronouncements (Policies) | 3 Months Ended |
Oct. 02, 2021 | |
Basis of presentation and new accounting pronouncements | |
Basis of presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc. and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income and cash flows. All such adjustments are of a normal recurring nature. Preparing financial statements in accordance with generally accepted accounting principles in the United States (“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 and assumptions. Interim results of operations do not necessarily indicate 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 July 3, 2021. |
Fiscal year | Fiscal year The Company operates on a “52/53 week” fiscal year, and fiscal 2022 contains 52 weeks compared to fiscal 2021, which contained 53 weeks. As a result, the first quarter of fiscal 2022, contained 13 weeks compared to the first quarter of fiscal 2021, which contained 14 weeks. |
New accounting pronouncements | Recently adopted accounting pronouncements In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. Most amendments within ASU No. 2019-12 are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company’s adoption of ASU No. 2019-12 beginning the first quarter of fiscal 2022 did not have a material impact on the Company’s Consolidated Financial Statements. Recently issued accounting pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Receivables | |
Schedule of receivables and allowance for credit losses | October 2, July 3, 2021 2021 (Thousands) Receivables $ 3,808,214 $ 3,664,290 Allowance for Credit Losses (87,918) (88,160) October 2, October 3, 2021 2020 (Thousands) Balance at beginning of the period $ 88,160 $ 65,018 Effect of adopting credit loss accounting standard — 17,205 Credit Loss Provisions 4,174 1,786 Credit Loss Recoveries (276) (126) Receivables Write offs (3,193) (4,023) Foreign Currency Effect and Other (947) 1,667 Balance at end of the period $ 87,918 $ 81,527 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Goodwill and intangible assets | |
Change in goodwill balances by reportable segment | Electronic Components Farnell Total (Thousands) Carrying value at July 3, 2021 (1) $ 310,582 $ 527,523 $ 838,105 Foreign currency translation (3,489) (10,663) (14,152) Carrying value at October 2, 2021 (1) $ 307,093 $ 516,860 $ 823,953 (1) Includes accumulated impairments of $1,482,677 from prior fiscal years. |
Company's identifiable acquired intangible assets | October 2, 2021 July 3, 2021 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount (1) Amortization Value (Thousands) Customer related $ 318,429 $ (307,121) $ 11,308 $ 324,416 $ (312,392) $ 12,024 Trade name 56,024 (46,340) 9,684 57,184 (45,019) 12,165 Technology and other 56,697 (54,615) 2,082 57,809 (53,459) 4,350 $ 431,150 $ (408,076) $ 23,074 $ 439,409 $ (410,870) $ 28,539 (1) |
Estimated future amortization expense | The following table presents the estimated future amortization expense for the remainder of fiscal 2022 and the next five fiscal years (in thousands): Fiscal Year Remainder of fiscal 2022 $ 10,037 2023 6,534 2024 3,191 2025 1,472 2026 1,472 2027 368 Total $ 23,074 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Debt | |
Short-term debt | Short-term debt consists of the following (carrying balances in thousands): October 2, July 3, October 2, July 3, 2021 2021 2021 2021 Interest Rate Carrying Balance Bank credit facilities and other — 1.24 % $ — $ 23,078 Short-term debt $ — $ 23,078 |
Long-term debt | Long-term debt consists of the following (carrying balances in thousands): October 2, July 3, October 2, July 3, 2021 2021 2021 2021 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program 0.83 % — $ 82,200 $ — Credit Facility (due June 2023) 1.18 % — 115,891 — Public notes due: December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 May 2031 3.00 % 3.00 % 300,000 300,000 Other long-term debt 1.40 % 1.22 % 792 1,185 Long-term debt before discount and debt issuance costs 1,398,883 1,201,185 Discount and debt issuance costs – unamortized (9,194) (9,856) Long-term debt $ 1,389,689 $ 1,191,329 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease cost related to the Company’s operating leases were as follows (in thousands): First Quarters Ended October 2, October 3, 2021 2020 Operating lease cost $ 17,847 $ 18,402 Variable lease cost 6,118 6,288 Total lease cost $ 23,965 $ 24,690 |
Schedule of future minimum operating lease payments | Future minimum operating lease payments as of October 2, 2021, are as follows (in thousands): Fiscal Year Remainder of fiscal 2022 $ 50,480 2023 58,378 2024 41,960 2025 33,060 2026 28,426 Thereafter 133,533 Total future operating lease payments 345,837 Total imputed interest on operating lease liabilities (58,231) Total operating lease liabilities $ 287,606 |
Schedule of other information pertaining to operating leases | Other information pertaining to operating leases consists of the following: First Quarters Ended October 2, October 3, 2021 2020 Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 9.0 9.3 Weighted-average discount rate 3.8 % 3.8 % |
Schedule of supplemental cash flow information | Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands): First Quarters Ended October 2, October 3, 2021 2020 Supplemental Cash Flow Information: Cash paid for operating lease liabilities $ 14,826 $ 14,710 Operating lease assets obtained from new operating lease liabilities 7,578 21,718 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Derivative financial instruments | |
Schedule of derivative instruments in the balance sheet | October 2, July 3, 2021 2021 (Thousands) Prepaid and other current assets $ 6,835 $ 15,722 Accrued expenses and other 13,557 23,994 |
Schedule of gain (loss) on derivatives | First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Net derivative financial instrument loss $ (8,771) $ (7,816) |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Pension and retirement plan | |
Components of net periodic pension costs | First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Service cost $ 3,752 $ 3,938 Total net periodic pension cost within selling, general and administrative expenses 3,752 3,938 Interest cost 3,947 3,976 Expected return on plan assets (12,284) (12,420) Amortization of prior service cost 1 75 Recognized net actuarial loss 4,086 5,151 Total net periodic pension benefit within other expense, net (4,250) (3,218) Net periodic pension (benefit) cost $ (498) $ 720 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Earnings per share | |
Basic and diluted earnings per share calculation | First Quarters Ended October 2, October 3, 2021 2020 (Thousands, except per share data) Numerator: Net income (loss) $ 111,318 $ (18,889) Denominator: Weighted average common shares for basic earnings per share 99,647 98,897 Net effect of dilutive stock-based compensation awards 1,469 — Weighted average common shares for diluted earnings per share 101,116 98,897 Basic earnings (loss) per share $ 1.12 $ (0.19) Diluted earnings (loss) per share $ 1.10 $ (0.19) Stock options excluded from earnings per share calculation due to anti-dilutive effect 897 875 |
Additional cash flow informat_2
Additional cash flow information (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Additional cash flow information | |
Interest and income taxes paid | First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 4,508 $ 3,173 Non-cash Financing Activities: Unsettled share repurchases $ 937 — Supplemental Cash Flow Information: Interest $ 11,636 $ 12,538 Income tax net payments 27,977 19,258 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Segment information | |
Table of the Company's segments and the related financial information for each | First Quarters Ended October 2, October 3, 2021 2020 (Thousands) Sales: Electronic Components $ 5,129,497 $ 4,382,148 Farnell 455,198 340,911 5,584,695 4,723,059 Operating income: Electronic Components $ 162,462 $ 84,440 Farnell 49,593 11,959 212,055 96,399 Corporate (33,301) (31,302) Restructuring, integration and other expenses (5,272) (26,420) Amortization of acquired intangible assets and other (5,239) (20,175) Operating income $ 168,243 $ 18,502 Sales, by geographic area: Americas (1) $ 1,258,811 $ 1,205,695 EMEA (2) 1,747,579 1,480,674 Asia/Pacific (3) 2,578,305 2,036,690 Sales $ 5,584,695 $ 4,723,059 (1) Includes sales from the United States of $1.16 billion and $1.13 billion for the first quarters ended October 2, 2021, and October 3, 2020, respectively. (2) Includes sales from Germany and Belgium of $697.1 million and $307.6 million, respectively, for the first quarter ended October 2, 2021. Includes sales from Germany and Belgium of $574.8 million and $294.4 million, respectively, for the first quarter ended October 3, 2020. (3) Includes sales from China (including Hong Kong), Taiwan and Singapore of $826.8 million, $1.20 billion and $264.0 million, respectively, for the first quarter ended October 2, 2021. Includes sales from China (including Hong Kong), Taiwan and Singapore of $631.8 million, $916.3 million and $272.0 million, respectively, for the first quarter ended October 3, 2020. |
Table of Assets by reportable segment and long-lived assets by geographic area | October 2, July 3, 2021 2021 (Thousands) Property, plant, and equipment, net, by geographic area: Americas (1) $ 138,380 $ 146,042 EMEA (2) 178,887 185,753 Asia/Pacific 34,606 36,657 Property, plant, and equipment, net $ 351,873 $ 368,452 (1) Includes property, plant and equipment, net, of $135.0 million and $142.7 million as of October 2, 2021, and July 3, 2021, respectively, in the United States. (2) Includes property, plant and equipment, net, of $74.1 million, $81.0 million and $19.9 million in Germany, the United Kingdom and Belgium, respectively, as of October 2, 2021; and $77.9 million, $83.5 million and $20.9 million in Germany, the United Kingdom and Belgium, respectively, as of July 3, 2021. |
Restructuring expenses (Tables)
Restructuring expenses (Tables) | 3 Months Ended |
Oct. 02, 2021 | |
Fiscal Year 2021 And Prior Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility and Contract Severance Exit Costs Total (Thousands) Balance at July 3, 2021 $ 35,099 $ 4,863 $ 39,962 Cash payments (11,892) (1,319) (13,211) Changes in estimates, net (330) — (330) Other, principally foreign currency translation (359) (41) (400) Balance at October 2, 2021 $ 22,518 $ 3,503 $ 26,021 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jul. 03, 2021 | Oct. 03, 2020 | Jun. 27, 2020 |
Receivables | ||||
Receivables | $ 3,808,214 | $ 3,664,290 | ||
Allowance for Credit Losses | $ (87,918) | $ (88,160) | $ (81,527) | $ (65,018) |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Receivables, Allowance for Credit Loss [Roll Forward] | ||
Receivables, Allowance for Credit Loss, Beginning Balance | $ 88,160 | $ 65,018 |
Credit Loss Provisions | 4,174 | 1,786 |
Credit Loss Recoveries | (276) | (126) |
Receivables Write offs | (3,193) | (4,023) |
Foreign Currency Effect and Other | (947) | 1,667 |
Receivables, Allowance for Credit Loss, Ending Balance | $ 87,918 | 81,527 |
ASU 2016-13 | Cumulative Effect, Adjustment | ||
Receivables, Allowance for Credit Loss [Roll Forward] | ||
Receivables, Allowance for Credit Loss, Beginning Balance | $ 17,205 |
Goodwill and intangible asset_2
Goodwill and intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Jul. 03, 2021 | |
Carrying amount of goodwill, by reportable segment | ||
Carrying value | $ 838,105 | |
Foreign currency translation | (14,152) | |
Carrying value | 823,953 | |
Accumulated Impairment | 1,482,677 | $ 1,482,677 |
Electronic Components | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 310,582 | |
Foreign currency translation | (3,489) | |
Carrying value | 307,093 | |
Farnell | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 527,523 | |
Foreign currency translation | (10,663) | |
Carrying value | $ 516,860 |
Goodwill and intangible asset_3
Goodwill and intangible assets Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Oct. 02, 2021 | Jul. 03, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | $ 431,150 | $ 439,409 | |
Accumulated Amortization | (408,076) | (410,870) | |
Net Book Value | 23,074 | 28,539 | |
Intangible asset impairment | $ 17,473 | ||
Customer related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | 318,429 | 324,416 | |
Accumulated Amortization | (307,121) | (312,392) | |
Net Book Value | 11,308 | 12,024 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | 56,024 | 57,184 | |
Accumulated Amortization | (46,340) | (45,019) | |
Net Book Value | 9,684 | 12,165 | |
Technology and other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | 56,697 | 57,809 | |
Accumulated Amortization | (54,615) | (53,459) | |
Net Book Value | $ 2,082 | $ 4,350 |
Goodwill and intangible asset_4
Goodwill and intangible assets Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Goodwill and intangible assets | ||
Intangible asset amortization expense | $ 5,210 | $ 20,117 |
Goodwill and intangible asset_5
Goodwill and intangible assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jul. 03, 2021 |
Fiscal Year: | ||
Remainder of fiscal 2022 | $ 10,037 | |
2023 | 6,534 | |
2024 | 3,191 | |
2025 | 1,472 | |
2026 | 1,472 | |
2027 | 368 | |
Net Book Value | $ 23,074 | $ 28,539 |
Debt - short-term debt (Details
Debt - short-term debt (Details) $ in Thousands | 12 Months Ended |
Jul. 03, 2021USD ($) | |
Components of short-term debt | |
Short-term debt | $ 23,078 |
Bank credit facilities and other | |
Components of short-term debt | |
Short-term Debt, Weighted Average Interest Rate | 1.24% |
Short-term debt | $ 23,078 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Oct. 02, 2021 | Jul. 03, 2021 | |
Debt Instrument [Line Items] | ||
Long-term debt before discount and debt issuance costs | $ 1,398,883 | $ 1,201,185 |
Discount and debt issuance costs - unamortized | (9,194) | (9,856) |
Long-term debt | $ 1,389,689 | $ 1,191,329 |
Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 0.83% | |
Long-term debt before discount and debt issuance costs | $ 82,200 | |
Revolving credit facilities | Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 1.18% | |
Long-term debt before discount and debt issuance costs | $ 115,891 | |
Notes due | Notes Due December 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.88% | 4.88% |
Long-term debt before discount and debt issuance costs | $ 350,000 | $ 350,000 |
Notes due | Notes Due April 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.63% | 4.63% |
Long-term debt before discount and debt issuance costs | $ 550,000 | $ 550,000 |
Notes due | Notes Due May 2031 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 3.00% | 3.00% |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 300,000 |
Notes due | Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 1.40% | 1.22% |
Long-term debt before discount and debt issuance costs | $ 792 | $ 1,185 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | |
Aug. 28, 2021 | Oct. 02, 2021 | Jul. 03, 2021 | |
Company's total debt | |||
Debt, Long-term and Short-term, Combined Amount | $ 1,390 | $ 1,210 | |
Total fair value | 1,470 | 1,300 | |
Revolving credit facilities | Accounts receivable securitization program | |||
Debt Instrument [Line Items] | |||
Maximum borrowing amount | 450 | ||
Term | 2 years | ||
Accounts Receivable from Securitization | $ 772.1 | 717.4 | |
Line of Credit Facility, Commitment Fee Percentage | 0.35% | ||
Revolving credit facilities | Accounts receivable securitization program | one-month LIBOR | |||
Debt Instrument [Line Items] | |||
Spread over base rate | 0.75% | ||
Revolving credit facilities | Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing amount | $ 1,250 | ||
Term | 5 years | ||
Line of credit facility contingent increase to maximum borrowing capacity | $ 1,500 | ||
Letter of Credit | Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing amount | 200 | ||
Letters of credit outstanding, amount | 1.2 | $ 1.3 | |
Notes Payable In Certain Approved Currencies | Credit Facility | |||
Debt Instrument [Line Items] | |||
Maximum borrowing amount | $ 300 | ||
Notes due | Notes Due May 2031 | |||
Debt Instrument [Line Items] | |||
stated interest rate | 3.00% | 3.00% | |
Notes due | Notes Due April 2026 | |||
Debt Instrument [Line Items] | |||
stated interest rate | 4.63% | 4.63% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Leases [Abstract] | ||
Lessee, Operating Lease, Term of Contract | 17 years | |
Lease Cost | ||
Operating lease cost | $ 17,847 | $ 18,402 |
Variable lease cost | 6,118 | 6,288 |
Total lease cost | $ 23,965 | $ 24,690 |
Leases (Operating Lease Commitm
Leases (Operating Lease Commitments) (Details) $ in Thousands | Oct. 02, 2021USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2022 | $ 50,480 |
2023 | 58,378 |
2024 | 41,960 |
2025 | 33,060 |
2026 | 28,426 |
Thereafter | 133,533 |
Total future operating lease payments | 345,837 |
Total imputed interest on operating lease liabilities | (58,231) |
Total operating lease liabilities | $ 287,606 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Leases [Abstract] | ||
Operating lease weighted-average remaining lease term | 9 years | 9 years 3 months 18 days |
Operating lease weighted-average discount rate | 3.80% | 3.80% |
Cash paid for operating lease liabilities | $ 14,826 | $ 14,710 |
Operating lease assets obtained from new operating lease liabilities | $ 7,578 | $ 21,718 |
Derivative financial instrume_3
Derivative financial instruments Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Jul. 03, 2021 | |
Derivative fair value | ||
Derivative assets fair value | $ 6,835 | $ 15,722 |
Derivative liabilities fair value | $ 13,557 | $ 23,994 |
Minimum | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than one year) | 60 days | |
Maximum | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than one year) | 1 year |
Derivative financial instrume_4
Derivative financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Derivative financial instruments | ||
Net derivative financial instrument loss | $ (8,771) | $ (7,816) |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Oct. 03, 2020 | Oct. 02, 2021 | Jul. 03, 2021 | |
Loss Contingency, Estimate [Abstract] | |||
Estimate of possible loss | $ 14.7 | $ 14.7 | |
Gain on legal settlement | $ 8.2 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Income taxes | ||
Effective tax rate | 23.20% | (18.90%) |
Pension and retirement plans (P
Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Components of net periodic pension costs | ||
Service cost | $ 3,752 | $ 3,938 |
Interest cost | 3,947 | 3,976 |
Expected return on plan assets | (12,284) | (12,420) |
Amortization of prior service cost | 1 | 75 |
Recognized net actuarial loss | 4,086 | 5,151 |
Net periodic pension (benefit) cost | (498) | 720 |
Selling, General and Administrative Expenses | ||
Components of net periodic pension costs | ||
Net periodic pension (benefit) cost | 3,752 | 3,938 |
Other Income, net | ||
Components of net periodic pension costs | ||
Net periodic pension (benefit) cost | (4,250) | $ (3,218) |
Plan | ||
Components of net periodic pension costs | ||
Contributions | 8,000 | |
Estimated future employer pension plan contributions | $ 8,000 |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | Aug. 24, 2021 | Oct. 02, 2021 | Oct. 03, 2020 |
Shareholders' equity | |||
Authorized repurchase of common stock under Share Repurchase Program | $ 2,950,000 | ||
Shares repurchased during period (in shares) | 0.3 | ||
Cost of repurchase | $ 10,500 | ||
Remaining authorized repurchase amount | $ 458,500 | ||
Cash dividends paid per common share | $ 0.24 | $ 0.24 | $ 0.21 |
Dividends paid on common stock | $ 23,893 | $ 20,756 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Numerator: | ||
Net income (loss) | $ 111,318 | $ (18,889) |
Denominator: | ||
Weighted average common shares for basic earnings per share | 99,647 | 98,897 |
Net effect of dilutive stock based compensation awards | 1,469 | |
Weighted average common shares for diluted earnings per share | 101,116 | 98,897 |
Basic earnings (loss) per share | $ 1.12 | $ (0.19) |
Diluted earnings (loss) per share | $ 1.10 | $ (0.19) |
Stock Options | ||
Denominator: | ||
antidilutive Securities | 897 | 875 |
Additional cash flow informat_3
Additional cash flow information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Oct. 02, 2021 | Oct. 03, 2020 | Jul. 03, 2021 | |
Interest and income taxes paid | |||
Capital expenditures incurred but not paid | $ 4,508 | $ 3,173 | |
Unsettled share repurchases | 937 | ||
Interest | 11,636 | 12,538 | |
Income tax net payments | 27,977 | $ 19,258 | |
Cash equivalents | $ 3,400 | $ 3,800 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Sales, by segment | ||
Sales | $ 5,584,695 | $ 4,723,059 |
Operating income (loss): | ||
Restructuring, integration and other expenses | (5,272) | (26,420) |
Amortization of acquired intangible assets and other | (5,239) | (20,175) |
Operating income | 168,243 | 18,502 |
Segment | ||
Operating income (loss): | ||
Operating income | 212,055 | 96,399 |
Corporate | ||
Operating income (loss): | ||
Corporate | (33,301) | (31,302) |
Electronic Components | Segment | ||
Sales, by segment | ||
Sales | 5,129,497 | 4,382,148 |
Operating income (loss): | ||
Operating income | 162,462 | 84,440 |
Farnell | Segment | ||
Sales, by segment | ||
Sales | 455,198 | 340,911 |
Operating income (loss): | ||
Operating income | $ 49,593 | $ 11,959 |
Segment information (Sales, by
Segment information (Sales, by geographic area) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2021 | Oct. 03, 2020 | |
Sales, by geographic area: | ||
Sales | $ 5,584,695 | $ 4,723,059 |
Americas | ||
Sales, by geographic area: | ||
Sales | 1,258,811 | 1,205,695 |
United States | ||
Sales, by geographic area: | ||
Sales | 1,160,000 | 1,130,000 |
EMEA | ||
Sales, by geographic area: | ||
Sales | 1,747,579 | 1,480,674 |
Germany | ||
Sales, by geographic area: | ||
Sales | 697,100 | 574,800 |
Belgium | ||
Sales, by geographic area: | ||
Sales | 307,600 | 294,400 |
Asia Pacific | ||
Sales, by geographic area: | ||
Sales | 2,578,305 | 2,036,690 |
Taiwan | ||
Sales, by geographic area: | ||
Sales | 1,200,000 | 916,300 |
China (including Hong Kong) | ||
Sales, by geographic area: | ||
Sales | 826,800 | 631,800 |
SINGAPORE | ||
Sales, by geographic area: | ||
Sales | $ 264,000 | $ 272,000 |
Segment information (Property,
Segment information (Property, plant and equipment, net, by geographic area) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jul. 03, 2021 |
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | $ 351,873 | $ 368,452 |
Americas | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 138,380 | 146,042 |
United States | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 135,000 | 142,700 |
EMEA | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 178,887 | 185,753 |
Germany | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 74,100 | 77,900 |
United Kingdom | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 81,000 | 83,500 |
Belgium | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 19,900 | 20,900 |
Asia Pacific | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | $ 34,606 | $ 36,657 |
Restructuring expenses (Details
Restructuring expenses (Details) - Fiscal Year 2021 And Prior Restructuring Liabilities $ in Thousands | 3 Months Ended |
Oct. 02, 2021USD ($) | |
Activity related to the restructuring reserves | |
Beginning Balance | $ 39,962 |
Cash payments | (13,211) |
Changes in estimates, net | (330) |
Other, principally foreign currency translation | (400) |
Ending Balance | 26,021 |
Severance | |
Activity related to the restructuring reserves | |
Beginning Balance | 35,099 |
Cash payments | (11,892) |
Changes in estimates, net | (330) |
Other, principally foreign currency translation | (359) |
Ending Balance | 22,518 |
Facility and Contract Exit Costs | |
Activity related to the restructuring reserves | |
Beginning Balance | 4,863 |
Cash payments | (1,319) |
Changes in estimates, net | 0 |
Other, principally foreign currency translation | (41) |
Ending Balance | $ 3,503 |
Restructuring expenses (Textual
Restructuring expenses (Textuals) (Details) - USD ($) $ in Thousands | Oct. 02, 2021 | Jul. 03, 2021 |
Fiscal Year 2021 And Prior Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 26,021 | $ 39,962 |