Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 29, 2024 | Aug. 02, 2024 | Dec. 29, 2023 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 29, 2024 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,483,722,802 | ||
Entity Common Stock, Shares Outstanding | 88,112,466 | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Phoenix, AZ | ||
Auditor Firm ID | 185 | ||
Entity Central Index Key | 0000008858 | ||
Current Fiscal Year End Date | --06-29 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 310,941 | $ 288,230 |
Receivables | 4,391,187 | 4,763,788 |
Inventories | 5,468,730 | 5,465,031 |
Prepaid and other current assets | 199,694 | 233,804 |
Total current assets | 10,370,552 | 10,750,853 |
Property, plant and equipment, net | 568,169 | 441,557 |
Goodwill | 780,984 | 780,629 |
Operating lease assets | 208,971 | 221,698 |
Other assets | 280,471 | 282,422 |
Total assets | 12,209,147 | 12,477,159 |
Current liabilities: | ||
Short-term debt | 492,711 | 70,636 |
Accounts payable | 3,345,510 | 3,373,820 |
Accrued expenses and other | 573,055 | 753,130 |
Short-term operating lease liabilities | 53,993 | 51,792 |
Total current liabilities | 4,465,269 | 4,249,378 |
Long-term debt | 2,406,629 | 2,988,029 |
Long-term operating lease liabilities | 173,886 | 190,621 |
Other liabilities | 237,859 | 297,462 |
Total liabilities | 7,283,643 | 7,725,490 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 89,045,996 shares and 91,504,053 shares, respectively | 89,046 | 91,504 |
Additional paid-in capital | 1,721,369 | 1,691,334 |
Retained earnings | 3,601,812 | 3,378,212 |
Accumulated other comprehensive loss | (486,723) | (409,381) |
Total shareholders' equity | 4,925,504 | 4,751,669 |
Total liabilities and shareholders' equity | $ 12,209,147 | $ 12,477,159 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 29, 2024 | Jul. 01, 2023 |
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 | 89,045,996 | 91,504,053 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Income Statement [Abstract] | |||
Sales | $ 23,757,129 | $ 26,536,881 | $ 24,310,708 |
Revenue, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Cost of sales | $ 20,990,687 | $ 23,354,738 | $ 21,345,317 |
Cost, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Gross profit | $ 2,766,442 | $ 3,182,143 | $ 2,965,391 |
Selling, general and administrative expenses | 1,869,525 | 1,967,305 | 1,994,847 |
Russian-Ukraine conflict related expenses | 26,261 | ||
Restructuring, integration and other expenses | 52,550 | 28,038 | 5,272 |
Operating income | 844,367 | 1,186,800 | 939,011 |
Other (expense) income, net | (15,736) | 9,908 | (5,302) |
Interest and other financing expenses, net | (282,867) | (250,869) | (100,375) |
Gain on legal settlements and other | 86,499 | 37,037 | |
Income before taxes | 632,263 | 982,876 | 833,334 |
Income tax expense | 133,564 | 212,048 | 140,955 |
Net income | $ 498,699 | $ 770,828 | $ 692,379 |
Earnings per share: | |||
Basic | $ 5.51 | $ 8.37 | $ 7.02 |
Diluted | $ 5.43 | $ 8.26 | $ 6.94 |
Shares used to compute earnings per share: | |||
Basic | 90,567 | 92,043 | 98,662 |
Diluted | 91,837 | 93,368 | 99,819 |
Cash dividends paid per common share | $ 1.24 | $ 1.16 | $ 1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Net Income (Loss) | $ 498,699 | $ 770,828 | $ 692,379 |
Other comprehensive loss, net of tax: | |||
Pension adjustments | (23,516) | 30,230 | (3,362) |
Total other comprehensive (loss) income, net of tax | (77,342) | 71,867 | (327,501) |
Total comprehensive income, net of tax | 421,357 | 842,695 | 364,878 |
Foreign Exchange Forward | |||
Other comprehensive loss, net of tax: | |||
Foreign currency translation and other | (60,434) | 64,486 | $ (324,139) |
Cross-Currency Swap | |||
Other comprehensive loss, net of tax: | |||
Foreign currency translation and other | $ 6,608 | $ (22,849) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income Foreign Exchange Forward | Accumulated Other Comprehensive (Loss) Income Cross-Currency Swap | Accumulated Other Comprehensive (Loss) Income | Foreign Exchange Forward | Cross-Currency Swap | Total |
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 | ||||||||
Net Income (Loss) | 692,379 | 692,379 | |||||||
Translation adjustments and other | $ (324,139) | $ (324,139) | |||||||
Pension liability adjustments, net | 3,362 | 3,362 | |||||||
Cash dividends | (98,490) | (98,490) | |||||||
Repurchases of common stock | $ (4,676) | (188,660) | (193,336) | ||||||
Repurchase of common stock (in shares) | (4,676,000) | ||||||||
Stock-based compensation | $ 777 | 34,747 | 35,524 | ||||||
Stock-based compensation (in shares) | 777,000 | ||||||||
Shares issued Ending Balance at Jul. 02, 2022 | 95,702,000 | ||||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jul. 02, 2022 | $ 95,702 | 1,656,907 | 2,921,399 | (481,248) | 4,192,760 | ||||
Net Income (Loss) | 770,828 | 770,828 | |||||||
Translation adjustments and other | 64,486 | $ (22,849) | 64,486 | $ (22,849) | |||||
Pension liability adjustments, net | (30,230) | (30,230) | |||||||
Cash dividends | (106,325) | (106,325) | |||||||
Repurchases of common stock | $ (5,085) | (207,690) | (212,775) | ||||||
Repurchase of common stock (in shares) | (5,085,000) | ||||||||
Stock-based compensation | $ 887 | 34,427 | $ 35,314 | ||||||
Stock-based compensation (in shares) | 887,000 | ||||||||
Shares issued Ending Balance at Jul. 01, 2023 | 91,504,000 | 91,504,053 | |||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jul. 01, 2023 | $ 91,504 | 1,691,334 | 3,378,212 | (409,381) | $ 4,751,669 | ||||
Net Income (Loss) | 498,699 | 498,699 | |||||||
Translation adjustments and other | $ (60,434) | $ 6,608 | $ (60,434) | $ 6,608 | |||||
Pension liability adjustments, net | 23,516 | 23,516 | |||||||
Cash dividends | (111,963) | (111,963) | |||||||
Repurchases of common stock | $ (3,293) | (163,136) | (166,429) | ||||||
Repurchase of common stock (in shares) | (3,293,000) | ||||||||
Stock-based compensation | $ 835 | 30,035 | $ 30,870 | ||||||
Stock-based compensation (in shares) | 835,000 | ||||||||
Shares issued Ending Balance at Jun. 29, 2024 | 89,046,000 | 89,045,996 | |||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 29, 2024 | $ 89,046 | $ 1,721,369 | $ 3,601,812 | $ (486,723) | $ 4,925,504 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax on pension liability adjustment | $ 7,648 | $ (8,146) | $ 582 |
Cash dividend paid per share | $ 1.24 | $ 1.16 | $ 1 |
Repurchase of common stock excise tax | $ 1,652 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Cash flows from operating activities: | |||
Net income | $ 498,699 | $ 770,828 | $ 692,379 |
Non-cash and other reconciling items: | |||
Depreciation and amortization | 86,708 | 88,613 | 102,326 |
Amortization of Operating Lease Assets | 53,796 | 54,392 | 52,881 |
Deferred income taxes | (9,749) | (37,060) | (52,513) |
Stock-based compensation | 33,496 | 38,781 | 36,738 |
Other, net | 15,800 | 52,142 | 34,116 |
Changes in (net of effects from businesses acquired and divested): | |||
Receivables | 316,218 | (461,117) | (1,132,039) |
Inventories | (51,203) | (1,173,124) | (1,218,871) |
Accounts payable | 4,496 | (75,943) | 1,131,225 |
Accrued expenses and other, net | (258,277) | 28,785 | 134,448 |
Net cash flows provided by (used for) operating activities | 689,984 | (713,703) | (219,310) |
Cash flows from financing activities: | |||
Issuance of notes, net of discounts | 498,615 | 299,973 | |
Repayment of public notes | (354,336) | ||
Borrowings (repayments) under accounts receivable securitization, net | (140,700) | 258,000 | 274,900 |
Borrowings (repayments) under senior unsecured credit facility, net | (43,277) | 728,182 | |
Borrowings (repayments) under bank credit facilities and other debt, net | 27,491 | (96,209) | 235,047 |
Repurchases of common stock | (162,723) | (221,730) | (184,382) |
Dividends paid on common stock | (111,963) | (106,325) | (98,490) |
Other, net | (2,627) | (5,777) | (16,653) |
Net cash flows (used for) provided by financing activities | (433,799) | 1,054,756 | 156,059 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (226,478) | (194,674) | (48,900) |
Proceeds from liquidation of Company Owned Life Insurance Policies | 90,384 | ||
Other, net | 994 | (16,877) | 9,815 |
Net cash flows (used for) provided by investing activities | (225,484) | (211,551) | 51,299 |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | (7,990) | 5,035 | (34,046) |
Cash and cash equivalents: | |||
increase (decrease) | 22,711 | 134,537 | (45,998) |
Cash and cash equivalents at beginning of year | 288,230 | 153,693 | 199,691 |
Cash and cash equivalents at end of year | $ 310,941 | $ 288,230 | $ 153,693 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 29, 2024 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significant accounting policie s Basis of presentation Reclassifications Fiscal year Management estimates Cash and cash equivalents Receivables – Inventories Depreciation, amortization and useful lives internal use has generally been enterprise-level business operations, logistics, and finance software that is customized to meet the Company’s specific operational requirements. The Company begins depreciation and amortization (“depreciation”) for property, plant, and equipment when an asset is both in the location and condition for its intended use. Property, plant, and equipment is depreciated using the straight-line method over its estimated useful lives. The estimated useful lives for property, plant, and equipment are typically as follows: buildings (30 years); machinery, fixtures and equipment (2-10 years); information technology hardware and software (2-10 years); and leasehold improvements (over the applicable lease term or economic useful life, if shorter). The Company amortizes intangible assets acquired in business combinations or asset combinations using the straight-line method over the estimated economic useful lives of the intangible assets from the date of acquisition, which is generally between 5-10 years. Long-lived asset impairment Leases The Company determines if an arrangement contains a lease at inception. Lease right-of-use assets (“Operating lease assets”) and associated liabilities (“Operating lease liabilities”) are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Certain lease agreements may include one or more options to extend or terminate a lease. Lease terms are inclusive of these options if it is reasonably certain that the Company will exercise such options. The Company’s leases generally do not provide an implicit borrowing rate, as such, the discount rate used to calculate present value is based upon an estimate of the Company’s secured borrowing rate, which varies based on the lease term and the currency of the lease payments. Lease cost is recognized on a straight-line basis over the lease term and is included as a component of “Selling, general, and administrative expenses” in the consolidated statements of operations. Lease payments are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the measurement of operating lease assets and liabilities. Goodwill In performing goodwill impairment testing, the Company may first make a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value. If the qualitative assessment indicates it is more-likely-than-not that a reporting unit’s fair value is not greater than its carrying value, the Company must perform a quantitative impairment test. The Company defines the fair value of a reporting unit as the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants as of the impairment test date. To determine the fair value of a reporting unit, the Company uses the income methodology of valuation, which includes the discounted cash flow method, and the market methodology of valuation, which considers values of comparable businesses to estimate the fair value of the Company’s reporting units. Significant management judgment is required when estimating the fair value of the Company’s reporting units from a market participant perspective (including forecasting of future operating results and the discount rates used in the discounted cash flow method of valuation) and in the selection of comparable businesses and related market multiples that are used in the market method of valuation. If the estimated fair value of a reporting unit exceeds the carrying value assigned to that reporting unit, goodwill is not impaired. If the reverse is true, then the Company measures a goodwill impairment loss based on such difference. The Company evaluates each quarter if facts and circumstances indicate that it is more-likely-than-not that the fair value of its reporting units is less than their carrying value, which would require the Company to perform an interim goodwill impairment test. Indicators the Company evaluates to determine whether an interim goodwill impairment test is necessary include, but are not limited to, (i) a sustained decrease in share price or market capitalization as of any fiscal quarter end, (ii) changes in macroeconomic or industry environments, (iii) the results of, and the amount of time passed since, the last goodwill impairment test, and (iv) the long-term expected financial performance of its reporting units. Foreign currency translation Income taxes tax rates is recognized within income tax expense in the period in which the new tax rate is enacted. Based upon historical and estimated levels of future taxable income and analysis of other key factors, the Company may increase or decrease a valuation allowance against its deferred tax assets, as deemed necessary, to adjust such assets to their estimated net realizable value. The Company establishes contingent liabilities for potentially unfavorable outcomes of positions taken on certain tax matters. These liabilities are based on management’s assessment of whether a tax benefit is more-likely-than-not to be sustained upon examination by the relevant tax authorities. Differences between the estimated and actual outcomes of these matters may result in future changes in estimates to such unrecognized tax benefits. Any such changes in estimates may impact the Company’s effective tax rate. In accordance with the Company’s accounting policies, accrued interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. Revenue recognition For contracts related to the specialized manufacture of products for customers with no alternative use and for which the Company has an enforceable right to payment, including a reasonable profit margin, the Company recognizes revenue over time as control of the products transfer through the manufacturing process. The contract assets associated with such specialized manufacturing products are not material. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. The Company estimates different forms of variable consideration at the time of sale based on historical experience, current conditions, and contractual obligations. Revenue is recorded net of customer discounts and rebates. When the Company offers the right or has a history of accepting returns of product, historical experience is utilized to establish a liability for the estimate of expected returns and an asset for the right to recover the product expected to be returned. These adjustments are made in the same period as the underlying sales transactions. The Company considers the following indicators amongst others when determining whether it is acting as a principal in the contract where revenue would be recorded on a gross basis: (i) the Company is primarily responsible for fulfilling the promise to provide the specified products or services; (ii) the Company has control of inventory and the related inventory risk before the specified products have been transferred to a customer or after transfer of control to the customer; and (iii) the Company has discretion in establishing the price for the specified products. If a transaction does not meet the Company’s indicators of being a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis. The Company has contracts with certain customers where the Company's performance obligation is to arrange for the products or services to be provided by another party. In these arrangements, as the Company assumes an agency relationship in the transaction, revenue is recognized in the amount of the net fee associated with serving as an agent. These arrangements primarily relate to the sale of electronic component supply chain services or to a lesser extent supplier software services. Sales tax and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. The Company accounts for shipping and handling of product as a fulfillment activity. The Company does not have any payment terms that exceed one year from the point it has satisfied the related performance obligations. Tariffs are included in sales as the company has enforceable rights to additional consideration to cover the cost of tariffs. Other taxes imposed by governmental authorities on the company's revenue producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. Vendor allowances and consideration Comprehensive income (loss) Stock-based compensation Restructuring and exit activities Nonretirement Postemployment Benefits Exit or Disposal Cost Obligations Exit or Disposal Cost Obligations Property, Plant and Equipment Gain on legal settlements — Concentration of credit risk Fair value Fair Value Measurements Investments Environmental liabilities Recently adopted accounting pronouncements Liabilities (subtopic 405-50): Supplier Finance Programs supplier finance programs to assist financial statement users in understanding the effect of such programs on a company’s working capital, liquidity, and cash flows. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude of such programs. The Company adopted this guidance in the first quarter of fiscal 2024, except for the amendment on roll-forward information, which is effective for the Company in fiscal 2025. The Company’s adoption of ASU No. 2022-04 did not have a material impact on the Company’s consolidated financial statements. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Jun. 29, 2024 | |
Derivative financial instruments | |
Derivative financial instruments | 2. 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. This 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 Company uses economic hedges to reduce this risk utilizing natural hedging (i.e., offsetting receivables and payables in the same foreign currency) and creating offsetting positions using of derivative financial instruments (primarily forward foreign exchange contracts typically with maturities of less than 60 days, but no longer than one year). The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The fair value of forward foreign exchange contracts is based on Level 2 criteria under the ASC 820 fair value hierarchy. The Company’s master netting and other similar arrangements with various financial institutions related to derivative financial instruments allow for the right of offset. The Company’s policy is to present derivative financial instruments with the same counterparty as either a net asset or liability when the right of offset exists. 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. In fiscal 2023, the Company entered into a fixed-to-fixed rate cross currency swap (the “cross-currency swap”) with a notional amount of $500.0 million, or €472.6 million, that is set to mature in March 2028. The Company designated this derivative contract as a net investment hedge of its European operations and elected the spot method for measuring hedge effectiveness. Changes in fair value of the cross-currency swap is presented in “Accumulated other comprehensive loss” in the consolidated balance sheets. Amounts related to the cross-currency swap recognized directly in net income represent net periodic interest settlements and accruals, which are recognized in “Interest and other financing expenses, net,” on the consolidated statements of operations. The fair value of the cross-currency swaps is based on Level 2 criteria under the ASC 820 fair value hierarchy. The Company uses these derivative financial instruments to manage risks associated with foreign currency exchange rates and interest rates. 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 locations and fair values of the Company’s derivative financial instruments in the Company’s consolidated balance sheets are as follows: June 29, July 1, 2024 2023 (Thousands) Economic hedges Prepaid and other current assets $ 12,116 $ 69,104 Accrued expenses and other $ 16,957 $ 68,594 Cross-currency swap Other liabilities $ 16,241 $ 22,849 The locations of derivative financial instruments on the Company’s consolidated statements of operations are as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands) Economic hedges Other (expense) income, net $ (31,666) $ 40,454 $ (37,336) Cross currency swap Interest and other financing expense, net $ 4,536 $ 1,635 — |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Jun. 29, 2024 | |
Shareholders' equity | |
Shareholders' equity | 3. Shareholders’ equity Accumulated comprehensive loss The following table includes the balances within “Accumulated other comprehensive loss”: June 29, July 1, July 2, 2024 2023 2022 (Thousands) Accumulated translation adjustments and other $ (382,801) $ (328,975) $ (370,612) Accumulated pension liability adjustments, net of income taxes (103,922) (80,406) (110,636) Total accumulated other comprehensive loss $ (486,723) $ (409,381) $ (481,248) Substantially all amounts reclassified out of “Accumulated comprehensive loss, net of tax”, to operating expenses during fiscal 2024, 2023, and 2022 related to net periodic pension costs as discussed further in Note 10. Share repurchase program During fiscal 2024, the Company repurchased 3.3 million shares under existing programs for a total cost of $164.8 million, excluding excise tax. As of June 29, 2024, the Company had $153.7 million remaining under its new share repurchase authorization. Common stock dividend During fiscal 2024, the Company paid dividends of $1.24 per common share and $112.0 million in total. |
Working capital
Working capital | 12 Months Ended |
Jun. 29, 2024 | |
Working capital | |
Working capital | 4. Working capital Receivables The Company’s receivables and allowance for credit losses were as follows: June 29, July 1, 2024 2023 (Thousands) Receivables $ 4,499,691 $ 4,876,631 Allowance for Credit Losses $ (108,504) $ (112,843) The Company had the following activity in the allowance for credit losses during fiscal 2024 and fiscal 2023: June 29, July 1, 2024 2023 (Thousands) Balance at beginning of the period $ 112,843 $ 113,902 Credit Loss Provisions 12,570 16,798 Credit Loss Recoveries (1,584) (931) Receivables Write Offs (14,060) (18,552) Foreign Currency Effect and Other (1,265) 1,626 Balance at end of the period $ 108,504 $ 112,843 Inventories The Company’s inventories are primarily comprised of electronic components purchased from the Company’s suppliers, which are available for sale to customers in the normal course of the Company’s electronic component distribution business. Classified within inventories are electronic components held for supply chain service engagements (components) where the Company is acting as an agent on behalf of an Original Equipment Manufacturer or in some cases the component supplier. Given that these supply chain services involve purchasing, warehousing and providing logistics services for components as part of the services, the Company classifies the underlying components within inventories on the consolidated balance sheets. Components held for supply chain services where the Company is acting as an agent represented approximately 7% and 8% of inventories as of June 29, 2024, and July 1, 2023, respectively. |
Property plant and equipment, n
Property plant and equipment, net | 12 Months Ended |
Jun. 29, 2024 | |
Property plant and equipment, net | |
Property, plant and equipment, net | 5. Property, plant and equipment, net Property, plant and equipment are recorded at cost, less accumulated depreciation, and consist of the following: June 29, 2024 July 1, 2023 (Thousands) Buildings $ 137,460 $ 108,236 Machinery, fixtures and equipment 275,171 259,745 Information technology hardware and software 903,812 884,448 Leasehold improvements 138,757 137,745 Depreciable property, plant and equipment, gross 1,455,200 1,390,174 Accumulated depreciation (1,144,018) (1,109,631) Depreciable property, plant and equipment, net 311,182 280,543 Land 29,365 22,036 Construction in progress 227,622 138,978 Property, plant and equipment, net $ 568,169 $ 441,557 Depreciation expense related to property, plant, and equipment, was $83.6 million, $82.6 million and $87.4 million in fiscal 2024, 2023, and 2022, respectively. Interest expense capitalized during fiscal 2024, 2023, and 2022 was not material. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 29, 2024 | |
Goodwill | |
Goodwill | 6. Goodwill Goodwill The following table presents the change in goodwill balances by reportable segment for fiscal year 2024. Electronic Components Farnell Total (Thousands) Carrying value at July 1, 2023 (1) $ 296,829 $ 483,800 $ 780,629 Foreign currency translation (872) 1,227 355 Carrying value at June 29, 2024 (1) $ 295,957 $ 485,027 $ 780,984 (1) Includes accumulated impairment of $1,482,677 from prior fiscal years. |
Debt
Debt | 12 Months Ended |
Jun. 29, 2024 | |
Debt | |
Debt | 7. Debt Short-term debt consists of the following (in thousands): June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program (due December 2024) 6.19 % — $ 415,100 $ — Other short-term debt 5.43 % 5.08 % 77,611 70,636 Short-term debt $ 492,711 $ 70,636 The Company has a 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 of up to $700.0 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 $1.05 billion and $1.27 billion at June 29, 2024, and July 1, 2023, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. There were $415.1 million and $555.8 million borrowings outstanding under the Securitization Program as of June 29, 2024, and as of July 1, 2023, respectively. Other short-term debt consists of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the ongoing working capital requirements of the Company, including its foreign operations. Long-term debt consists of the following (in thousands): June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program — 5.99 % $ — $ 555,800 Credit Facility 5.05 % 4.85 % 745,480 796,552 Other long-term debt 4.74 % — 22,748 — Public notes due: April 2026 4.63 % 4.63 % 550,000 550,000 May 2031 3.00 % 3.00 % 300,000 300,000 June 2032 5.50 % 5.50 % 300,000 300,000 March 2028 6.25 % 6.25 % 500,000 500,000 Long-term debt before discount and debt issuance costs 2,418,228 3,002,352 Discount and debt issuance costs – unamortized (11,599) (14,323) Long-term debt $ 2,406,629 $ 2,988,029 The Company has a five-year $1.50 billion revolving credit facility (the “Credit Facility”) with a syndicate of banks, which expires in August 2027. 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. 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 a financial covenant requiring the Company to maintain a leverage ratio not to exceed a certain threshold, which the Company was in compliance with as of June 29, 2024. At June 29, 2024, and July 1, 2023, there were $0.9 million in letters of credit issued under the Credit Facility. Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands): 2025 $ 492,711 2026 550,000 2027 — 2028 1,245,480 2029 — Thereafter 622,748 Subtotal 2,910,939 Discount and debt issuance costs – unamortized (11,599) Total debt $ 2,899,340 At June 29, 2024, the carrying value and fair value of the Company’s total debt was $2.90 billion and $2.85 billion, respectively. At July 1, 2023, the carrying value and fair value of the Company’s total debt was $3.06 billion and $2.98 billion, respectively. Fair value for the public notes was estimated based upon quoted market prices (Level 1) 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 (Level 2). |
Accrued expenses and other
Accrued expenses and other | 12 Months Ended |
Jun. 29, 2024 | |
Accrued expenses and other | |
Accrued expenses and other | 8. Accrued expenses and other Accrued expenses and other consist of the following: June 29, 2024 July 1, 2023 (Thousands) Accrued salaries and benefits $ 213,641 $ 253,790 Accrued operating costs 184,007 203,083 Accrued interest and banking costs 34,811 86,162 Accrued restructuring costs 24,660 16,011 Accrued income taxes 46,143 93,521 Accrued property, plant and equipment 20,451 28,771 Accrued other 49,342 71,792 Total accrued expenses and other $ 573,055 $ 753,130 |
Income taxes
Income taxes | 12 Months Ended |
Jun. 29, 2024 | |
Income taxes | |
Income taxes | 9. Income taxes The components of income tax expense (“tax provision”) are included in the table below. The tax provision for deferred income taxes results from temporary differences arising primarily from net operating losses, inventories valuation, receivables valuation, suspended interest deductions, certain accrued amounts, and depreciation and amortization, net of any changes to valuation allowances. Years Ended June 29, 2024 July 1, 2023 July 2, 2022 (Thousands) Current: Federal $ 50,428 $ 64,224 $ 58,512 State and local 4,519 7,865 8,871 Foreign 94,663 173,450 126,522 Total current taxes 149,610 245,539 193,905 Deferred: Federal (16,452) (15,422) (32,424) State and local 86 2,606 (22,320) Foreign 320 (20,675) 1,794 Total deferred taxes (16,046) (33,491) (52,950) Income tax expense $ 133,564 $ 212,048 $ 140,955 The tax provision is computed based upon income before income taxes from both U.S. and foreign operations. U.S. income before income taxes was $186.6 million, $250.8 million and, $197.1 million, in fiscal 2024, 2023, and 2022, respectively, and foreign income before income taxes was $445.6 million, $732.1 million, and $636.3 million, in fiscal 2024, 2023, and 2022, respectively. On August 16, 2022, the U.S. government enacted the Inflation Reduction Act of 2022 (the "IRA"). The IRA includes various tax provisions, including a 15% corporate minimum income tax rate ("CAMT"), expanded tax credits for clean energy incentives, and 1% excise tax on corporate stock repurchases. The CAMT is effective for tax periods beginning with fiscal 2024. The company has evaluated the applicability and determined that there is no CAMT liability in fiscal 2024. In addition, the Company purchased $36.6 million of transferable federal tax credits in fiscal 2024. The Organization for Economic Co-operation and Development (OECD) has recently enacted a new global minimum tax framework known as Pillar Two. These rules have been agreed to by most OECD members. The OECD has since issued administrative guidance providing transition and safe harbor rules around the implementation of Pillar Two rules. The Company will be subject to Pillar Two rules starting in fiscal 2025. The Company does not currently expect Pillar Two taxes to have a significant impact on its income tax expense. The Company is continuing to evaluate the potential impacts of proposed and enacted legislative changes as new guidance becomes available. The Company asserts that all of its unremitted foreign earnings are permanently reinvested, and any unrecorded liabilities related to this assertion are not material. Reconciliations of the U.S. federal statutory income tax rate to the effective income tax rates are as follows: Years Ended June 29, 2024 July 1, 2023 July 2, 2022 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 0.9 0.9 1.1 Tax on foreign income, net of valuation allowances (2.1) 0.5 (1.7) Establishment/release of valuation allowances, net of U.S. tax expense 0.8 0.5 (5.8) Change in unrecognized tax benefit reserves 0.1 (0.5) (0.6) Tax audit settlements 0.3 0.3 0.2 Impact of surrender of Company owned life insurance policies — — 1.4 Impact on foreign currency translation loss — (1.2) — Other, net 0.1 0.1 1.3 Effective tax rate 21.1 % 21.6 % 16.9 % Tax rates on foreign income represents the impact of the difference between foreign rates and the U.S. federal statutory rate applied to foreign income or loss, foreign income taxed in the U.S. at rates other than its statutory rate, and the impact of valuation allowances previously established against the Company’s otherwise realizable foreign deferred tax assets, which are primarily net operating loss carry-forwards. Avnet’s effective tax rate on income before income taxes was 21.1% in fiscal 2024 as compared with an effective tax rate of 21.6% on fiscal 2023 income before income taxes. Included in the fiscal 2024 effective tax rate are U.S. state taxes, tax expense related to the increase to valuation allowances against the deferred tax assets and the impact of mix of income in lower tax jurisdictions. The Company applies the guidance in ASC 740 Income Taxes The significant components of deferred tax assets and liabilities, included in “Other assets” on the consolidated balance sheets, are as follows: June 29, July 1, 2024 2023 (Thousands) Deferred tax assets: Federal, state and foreign net operating loss carry-forwards $ 207,087 $ 211,719 Depreciation and amortization 18,501 15,311 Inventories valuation 19,022 11,525 Operating lease liabilities 51,581 56,424 Receivables valuation 18,417 13,946 Interest deductions 51,388 39,175 Various accrued liabilities and other 103,346 101,713 469,342 449,813 Less — valuation allowances (216,179) (207,744) 253,163 242,069 Deferred tax liabilities: Operating lease assets (49,956) (54,799) Net deferred tax assets $ 203,207 $ 187,270 The change in valuation allowances in fiscal 2024 from fiscal 2023 was related to a $10.4 million increase resulting from current year activities, and a $2.0 million decrease resulting from changing foreign exchange rates. As of June 29, 2024, the Company had net operating and capital loss carry-forwards of approximately $988.4 million, of which $15.5 million will expire during fiscal 2025 and fiscal 2026, $211.0 million have expiration dates ranging from fiscal 2027 to fiscal 2043, and the remaining $761.9 million have no expiration date. A significant portion of these losses are not expected to be realized in the foreseeable future and have valuation allowances against them. The carrying value of the Company’s net operating and capital loss carry-forwards depends on the Company’s ability to generate sufficient future taxable income in certain tax jurisdictions. Estimated liabilities for unrecognized tax benefits are included in “Accrued expenses and other” and “Other liabilities” on the consolidated balance sheets. These contingent liabilities relate to various tax matters that result from uncertainties in the application of complex income tax regulations in the numerous jurisdictions in which the Company operates. As of June 29, 2024, unrecognized tax benefits were $130.3 million. The estimated liability for unrecognized tax benefits included accrued interest expense and penalties of $29.6 million and $27.7 million, net of applicable state tax benefits, as of the end of fiscal 2024 and 2023, respectively. Reconciliations of the beginning and ending liability balances for unrecognized tax benefits, excluding interest and penalties, are as follows: June 29, 2024 July 1, 2023 (Thousands) Balance at beginning of year $ 102,841 $ 109,285 Additions for tax positions taken in prior periods 86 6,086 Reductions for tax positions taken in prior periods (3,242) (3,485) Additions for tax positions taken in current period 6,814 7,523 Reductions related to settlements with taxing authorities (1,862) (2,873) Reductions related to the lapse of applicable statutes of limitations (3,427) (14,691) Adjustments related to foreign currency translation (549) 996 Balance at end of year $ 100,661 $ 102,841 The evaluation of uncertain income tax positions requires management to estimate the ability of the Company to sustain its position with applicable tax authorities and estimate the final benefit to the Company. If the actual outcomes differ from the Company’s estimates, there could be an impact on income tax expense in the period in which the position is settled, the applicable statutes of limitations expire, or new information becomes available, as the impact of these events are recognized in the period in which they occur. It is difficult to estimate the period in which the amount of a tax position will change as settlement may include administrative and legal proceedings beyond the Company’s control. The effects of settling tax positions with tax authorities and statute expirations may significantly impact the estimate for unrecognized tax benefits. Within the next twelve months, the Company estimates that approximately $55.3 million of these liabilities for unrecognized tax benefits will be settled by the expiration of the statutes of limitations or through settlements with the tax authorities. No cash payment related to the settlement of these contingencies is expected. The Company conducts business globally and consequently files income tax returns in numerous jurisdictions, including those listed in the following table. It is also routinely subject to audit in these and other countries. The Company is no longer subject to audit in its major jurisdictions for periods prior to fiscal 2016. The years remaining subject to audit, by major jurisdiction, are as follows: Jurisdiction Fiscal Year United States (Federal and state) 2016, 2017, 2019 - 2024 Taiwan 2019 - 2024 Hong Kong 2018 - 2024 Germany 2019 - 2024 Singapore 2019 - 2024 Belgium 2021 - 2024 United Kingdom 2021 - 2024 Canada 2017 - 2024 |
Pension and retirement plan
Pension and retirement plan | 12 Months Ended |
Jun. 29, 2024 | |
Pension and retirement plan | |
Pension and retirement plans | 10. Pension and retirement plans Pension Plan The Company has a noncontributory defined benefit pension plan that covers substantially all current or former U.S. Employees (the “Plan”). The Plan meets the definition of a defined benefit plan and, as a result, the Company applies ASC 715 pension accounting to the Plan. The following table outlines changes in benefit obligations, plan assets, and the funded status of the Plan as of the end of fiscal 2024 and 2023: June 29, July 1, 2024 2023 (Thousands) Changes in benefit obligations: Benefit obligations at beginning of year $ 471,401 $ 614,359 Service cost 10,252 12,015 Interest cost 24,579 26,730 Actuarial loss (gain) 1,202 (43,407) Benefits paid (36,591) (21,785) Settlements paid — (116,511) Benefit obligations at end of year $ 470,843 $ 471,401 Changes in plan assets: Fair value of plan assets at beginning of year $ 504,348 $ 638,894 Actual return on plan assets 4,948 (4,250) Benefits paid (36,591) (21,785) Settlements paid — (116,511) Contributions 8,000 8,000 Fair value of plan assets at end of year $ 480,705 $ 504,348 Funded status of the plan recognized as a non-current asset $ 9,862 $ 32,947 Amounts recognized in accumulated other comprehensive loss: Unrecognized net actuarial losses $ 185,284 $ 148,867 Unamortized prior service cost 20 23 $ 185,304 $ 148,890 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss $ 36,195 $ 9,702 Amortization of net actuarial losses (222) (2,469) Amortization of prior service costs (4) (4) Net loss recognized due to benefit obligation settlement — (37,350) $ 35,969 $ (30,121) Included in “Accumulated other comprehensive loss” at June 29, 2024, is $185.3 million of net actuarial losses that have not yet been recognized in net periodic pension cost, of which $5.1 million is expected to be recognized as a component of net periodic pension cost during fiscal 2025. Assumptions used to calculate actuarial present values of benefit obligations are as follows: 2024 2023 Discount rate 5.5 % 5.4 % The discount rate selected by the Company for the Plan reflects the current rate at which the underlying liability could be settled at the measurement date as of June 29, 2024. The estimated discount rate in fiscal 2024 and fiscal 2023 was based on the spot yield curve approach, which applies the individual spot rates from a highly rated bond yield curve to each future year’s estimated cash flows. The weighted-average assumptions used to determine net benefit costs are as follows: 2024 2023 Discount rate 5.4 % 4.6 % Expected return on plan assets 7.0 % 7.0 % Rate of compensation increase 3.5 % 3.5 % Interest crediting rate 4.0 % 4.0 % Components of net periodic pension cost for the Plan during the last three fiscal years are as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands) Service cost within selling, general and administrative expenses $ 10,252 $ 12,015 $ 15,007 Interest cost 24,579 26,730 15,787 Expected return on plan assets (39,941) (48,860) (49,135) Amortization of prior service cost 4 4 4 Recognized net actuarial loss 223 2,469 16,343 Net loss recognized due to benefit obligation settlement — 37,350 — Total net periodic pension (benefit) cost within other (expense) income, net (15,135) 17,693 (17,001) Net periodic pension (benefit) cost $ (4,883) $ 29,708 $ (1,994) The Company made $8.0 million of contributions in fiscal 2024 and fiscal 2023, and expects to make approximately $8.0 million of contributions in fiscal 2025. Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands): 2025 $ 50,415 2026 39,238 2027 40,181 2028 42,244 2029 42,962 2030 through 2034 209,704 The Plan’s assets are held in trust and were invested as follows as of the measurement date at the end of fiscal 2024 and 2023: 2024 2023 Equity securities 69 % 67 % Fixed income debt securities 29 % 30 % Cash and cash equivalents 2 % 3 % The general investment objectives of the Plan are to maximize returns through a diversified investment portfolio to earn annualized returns that exceed the long-term cost of funding the Plan’s pension obligations while maintaining reasonable and prudent levels of risk. The expected return on the Plan’s assets in fiscal 2025 is currently 7.5%, which is the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation based upon the targeted investment allocations. In making this assumption, the Company evaluated expectations regarding future rates of return for the investment portfolio, along with the historical and expected distribution of investments by asset class and the historical rates of return for each of those asset classes. The mix of return seeking and fixed income investments is typically diversified. The Plan’s assets do not include any investments in Avnet common stock. As of June 29, 2024, the Company’s target allocation for the Plan’s investment portfolio is for return seeking investments to represent approximately 65% of the investment portfolio. The majority of the remaining investment portfolio is invested in fixed income investments, which typically have lower risks, but also lower returns. The following table sets forth the fair value of the Plan’s investments as of June 29, 2024: Level 1 Level 2 Level 3 Net Asset Value Total (Thousands) Cash and cash equivalents $ 8,586 $ — $ — $ — $ 8,586 Return Seeking Investments: Common stocks — — — 151,936 151,936 Real estate — — — 95,974 95,974 High yield credit and bonds — — — 85,064 85,064 Fixed Income Investments: U.S. government — — — 102,542 102,542 Corporate — — — 36,603 36,603 Total $ 8,586 $ — $ — $ 472,119 $ 480,705 Certain investments included in the table above are measured at fair value using the net asset value per share (or its equivalent) practical expedient and are not included in the three levels of the fair value hierarchy. The following table sets forth the fair value of the Plan’s investments as of July 1, 2023: Level 1 Level 2 Level 3 Net Asset Value Total (Thousands) Cash and cash equivalents $ 15,389 $ — $ — $ — $ 15,389 Return Seeking Investments: Common stocks — — — 138,533 138,533 Real estate — — — 108,936 108,936 High yield credit and bonds — — — 90,767 90,767 Fixed Income Investments: U.S. government — — — 118,456 118,456 Corporate — — — 32,267 32,267 Total $ 15,389 $ — $ — $ 488,959 $ 504,348 Each of these investments may be redeemed without restrictions in the normal course of business and there were no material unfunded commitments as of June 29, 2024. |
Leases
Leases | 12 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Leases | 11. Leases The components of lease cost related to the Company’s operating leases were as follows (in thousands): Years Ended June 29, July 1, July 2, 2024 2023 2022 Operating lease cost $ 63,514 $ 67,478 $ 68,664 Variable lease cost 29,560 21,422 25,737 Total lease cost $ 93,074 $ 88,900 $ 94,401 Future minimum operating lease payments as of June 29, 2024, are as follows (in thousands): Fiscal Year 2025 $ 59,985 2026 50,264 2027 30,700 2028 23,382 2029 18,440 Thereafter 84,000 Total future operating lease payments 266,771 Total imputed interest on operating lease liabilities (38,892) Total operating lease liabilities $ 227,879 Other information pertaining to operating leases consists of the following: Years Ended June 29, July 1, July 2, 2024 2023 2022 Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 7.5 8.2 8.8 Weighted-average discount rate 3.8 % 3.8 % 3.8 % Supplemental Cash Flow Information (in thousands) Cash paid for operating lease liabilities $ 57,572 $ 58,111 $ 57,016 Operating lease assets obtained from new operating lease liabilities $ 47,668 $ 48,038 $ 28,014 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Jun. 29, 2024 | |
Stock-based compensation | |
Stock-based compensation | 12. Stock-based compensation The Company measures all stock-based payments at fair value and recognizes related expense within selling, general and administrative expenses in the consolidated statements of operations over the requisite service period (generally the vesting period). During fiscal 2024, 2023, and 2022, the Company recorded stock-based compensation expense of $33.5 million, $38.8 million, and $36.7 million, respectively, for all forms of stock-based compensation awards. Stock plan At June 29, 2024, the Company had 5.7 million shares of common stock reserved for stock-based payments, which consisted of 1.0 million shares for unvested or unexercised stock options, 3.4 million shares available for stock-based awards under plans approved by shareholders, and 1.3 million shares for restricted stock units and performance share units granted but not yet vested. Stock options There were no stock options granted in fiscal 2024 and 2023, and the stock-based compensation expense and unamortized stock-based compensation associated with stock options were not material. Restricted stock units Delivery of restricted stock units, and the associated compensation expense, is recognized over the vesting period and is generally subject to the employee’s continued service to the Company, except for employees who are retirement eligible under the terms of the restricted stock units. As of June 29, 2024, 1.1 million shares previously awarded have not yet vested. Stock-based compensation expense associated with restricted stock units was $32.6 million, $30.5 million, and $29.5 million for fiscal years 2024, 2023, and 2022, respectively. The following is a summary of the changes in non-vested restricted stock units during fiscal 2024: Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock units at July 1, 2023 1,214,120 $ 37.14 Granted 778,508 47.57 Vested (829,907) 37.41 Forfeited (78,134) 42.76 Non-vested restricted stock units at June 29, 2024 1,084,587 $ 44.02 As of June 29, 2024, there was $ 21.2 million of total unrecognized compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 2.1 years. The total fair value of restricted stock units vested during fiscal 2024, 2023, and 2022, was $31.0 million, $28.6 million, and $26.6 million, respectively. Performance share units During fiscal 2024 and 2023, the Company granted 0.2 million performance share units. The Company granted no performance share units during fiscal 2022. During fiscal 2024, 2023, and 2022, the stock-based compensation expense associated with the performance share units was not material. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 29, 2024 | |
Commitments and contingencies | |
Commitments and contingencies | 13. 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 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. A s of June 29, 2024, and July 1, 2023, the Company had aggregate undiscounted estimated liabilities of $17.2 million and $22.7 million, respectively, classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates. Gain on Legal Settlements and Other During the first quarter of fiscal 2024 and during fiscal 2023, the Company recorded gains on legal settlements and other of $86.5 million and $74.4 million, respectively, in connection with the settlements of claims filed against certain manufacturers of capacitors. During fiscal 2024, the Company received $90.7 million in cash, of which $86.5 million related to the gain recognized in the first quarter. During fiscal 2023, the Company received $69.9 million in cash related to fiscal 2023 settlements. Gains from legal settlements were classified as operating cash flows in the Company’s Consolidated Statements of Cash Flows. |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 29, 2024 | |
Earnings per share | |
Earnings per share | 14. Earnings per share Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands, except per share data) Numerator: Net income $ 498,699 $ 770,828 $ 692,379 Denominator: Weighted average common shares for basic earnings per share 90,567 92,043 98,662 Net effect of dilutive stock-based compensation awards 1,270 1,325 1,157 Weighted average common shares for diluted earnings per share 91,837 93,368 99,819 Basic earnings per share $ 5.51 $ 8.37 $ 7.02 Diluted earnings per share $ 5.43 $ 8.26 $ 6.94 Stock options excluded from earnings per share calculation due to an anti-dilutive effect 79 140 230 |
Additional cash flow informatio
Additional cash flow information | 12 Months Ended |
Jun. 29, 2024 | |
Additional cash flow information | |
Additional cash flow information | 15. Additional cash flow information The “Other, net” component of non-cash and other reconciling items within operating activities in the consolidated statements of cash flows consisted of the following during the last three fiscal years: June 29, July 1, July 2, 2024 2023 2022 (Thousands) Provision for credit losses $ 12,570 $ 16,798 $ 30,788 Periodic pension cost (benefit) (1) (663) 30,424 (3,449) Other, net 3,893 4,920 6,777 Total $ 15,800 $ 52,142 $ 34,116 (1) Included net loss recognized due to benefit obligation settlement of $37,350 in fiscal 2023 . Non-cash investing and financing activities and supplemental cash flow information were as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 20,451 $ 28,771 $ 20,275 Non-cash Financing Activities: Unsettled share repurchases $ 2,054 — $ 8,955 Supplemental Cash Flow Information: Interest $ 351,374 $ 261,586 $ 112,327 Income tax payments, net $ 208,585 $ 216,780 $ 6,892 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. |
Segment information
Segment information | 12 Months Ended |
Jun. 29, 2024 | |
Segment information | |
Segment information | 16. Segment information Electronic Components (“EC”) and Farnell (“Farnell”) are the Company’s reportable segments (“operating groups”). Years Ended June 29, July 1, July 2, 2024 2023 2022 (Millions) Sales: Electronic Components $ 22,160.0 $ 24,802.6 $ 22,503.3 Farnell 1,597.1 1,734.3 1,807.4 $ 23,757.1 $ 26,536.9 $ 24,310.7 Operating income: Electronic Components $ 947.6 $ 1,179.6 $ 872.0 Farnell 64.8 165.5 242.5 1,012.4 1,345.1 1,114.5 Corporate (112.3) (124.2) (128.9) Restructuring, integration, and other expenses (52.6) (28.0) (5.3) Russian-Ukraine conflict related expenses — — (26.3) Amortization of acquired intangible assets and other (3.1) (6.1) (15.0) $ 844.4 $ 1,186.8 $ 939.0 Assets: Electronic Components $ 10,162.8 $ 10,375.4 $ 8,863.4 Farnell 1,707.9 1,659.0 1,371.1 Corporate 338.4 442.8 154.0 $ 12,209.1 $ 12,477.2 $ 10,388.5 Capital expenditures: Electronic Components $ 176.5 $ 153.4 $ 25.7 Farnell 49.9 41.2 23.1 Corporate 0.1 0.1 0.1 $ 226.5 $ 194.7 $ 48.9 Depreciation & amortization expense: Electronic Components $ 60.6 $ 63.6 $ 67.7 Farnell 26.0 24.8 31.3 Corporate 0.1 0.2 3.3 $ 86.7 $ 88.6 $ 102.3 Sales, by geographic area: Americas $ 5,919.2 $ 6,807.7 $ 5,896.0 EMEA 8,395.0 9,229.4 7,838.1 Asia 9,442.9 10,499.8 10,576.6 $ 23,757.1 $ 26,536.9 $ 24,310.7 Property, plant and equipment, net, by geographic area: Americas $ 109.7 $ 105.3 $ 115.4 EMEA 435.3 310.9 170.1 Asia 23.2 25.4 29.7 $ 568.2 $ 441.6 $ 315.2 Sales by country are as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Millions) Sales: Germany $ 3,240.3 $ 3,892.2 $ 3,158.0 Belgium 1,422.6 1,549.6 1,367.1 Taiwan 4,032.4 4,233.3 4,635.0 China (including Hong Kong) 3,206.7 3,395.8 3,375.4 Singapore 1,298.4 1,497.0 1,317.1 Other 5,030.8 5,623.8 4,981.4 Total foreign $ 18,231.2 $ 20,191.7 $ 18,834.0 United States $ 5,525.9 $ 6,345.2 $ 5,476.7 Total $ 23,757.1 $ 26,536.9 $ 24,310.7 Property, plant and equipment, net, by country are as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Millions) Property, plant and equipment, net: Germany $ 307.7 $ 196.0 $ 67.6 United Kingdom 105.7 92.6 79.8 Belgium 14.0 15.5 16.7 Other 33.7 35.6 38.7 Total foreign $ 461.1 $ 339.7 $ 202.8 United States $ 107.1 $ 101.9 $ 112.4 Total $ 568.2 $ 441.6 $ 315.2 |
Restructuring expenses
Restructuring expenses | 12 Months Ended |
Jun. 29, 2024 | |
Restructuring expenses | |
Restructuring expenses | 17. Restructuring expenses Fiscal 2024 During fiscal 2024, the Company incurred restructuring expenses primarily related to headcount reductions including from the planned closure of certain distribution centers intended to reduce future operating expenses. The following table presents the activity incurred during fiscal 2024: Asset Severance Impairments Other Total (Thousands) Fiscal 2024 restructuring expenses $ 38,493 $ 392 $ 582 $ 39,467 Cash payments (14,549) — (582) (15,131) Non-cash amounts — (392) — (392) Other, principally foreign currency translation (106) — — (106) Balance at June 29, 2024 $ 23,838 $ — $ — $ 23,838 Severance expense recorded in fiscal 2024 related to the reduction, or planned reduction, of approximately 630 employees, primarily in operations, distribution centers, and business support functions. Of the $39.5 million in restructuring expenses recorded in fiscal 2024, $24.3 million related to EC, $9.7 million related to Farnell, and $5.5 million related to Corporate. The Company expects the majority of the remaining severance amounts to be paid by the end of December 2024 Fiscal 2023 During fiscal 2023, the Company incurred restructuring expenses primarily related headcount reductions and planned closure of certain distribution centers intended to reduce future operating expenses. The Company expects the majority of the remaining amounts to be paid by the end of 2024. The following table presents the activity during fiscal 2024 related to the remaining restructuring liabilities established during fiscal 2023: Facility Severance Exit Costs Total (Thousands) Balance at July 1, 2023 $ 15,507 $ 504 $ 16,011 Cash payments (15,316) — (15,316) Other, principally foreign currency translation 125 2 127 Balance at June 29, 2024 $ 316 $ 506 $ 822 |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Jun. 29, 2024 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | SCHEDULE II AVNET, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended June 29, 2024, July 1, 2023, and July 2, 2022 Balance at Charged to Charged to Balance at Beginning of Expense Other End of Account Description Period (Income) Accounts Deductions Period (Thousands) Fiscal 2024 Allowance for credit losses $ 112,843 $ 12,570 $ — $ (16,909) (a) $ 108,504 Valuation allowance on tax loss carry-forwards 207,744 10,462 (b) (2,027) (c) — 216,179 Fiscal 2023 Allowance for credit losses 113,902 16,798 — (17,857) (a) 112,843 Valuation allowance on tax loss carry-forwards 207,889 4,530 (b) (4,675) (c) — 207,744 Fiscal 2022 Allowance for credit losses 88,160 47,990 (d) — (22,248) (a) 113,902 Valuation allowance on tax loss carry-forwards 293,569 (65,208) (e) (20,472) (f) — 207,889 (a) Primarily represents uncollectible receivables written off and the impact of changes in foreign currency rates during the fiscal year. (b) Primarily represents impact of current year activities. (c) Primarily related to impact of foreign currency exchange on valuation allowances. (d) Amount includes $17,202 of credit loss provisions associated with accounts receivable from Russian customers that are no longer considered collectible. (e) Primarily represents net release of valuation allowance and impact of current year activities. (f) Primarily related to impact of pension-related other comprehensive income and foreign currency exchange on valuation allowances. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 498,699 | $ 770,828 | $ 692,379 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 29, 2024 | |
Summary of significant accounting policies | |
Basis of presentation | Basis of presentation |
Reclassifications | Reclassifications |
Fiscal year | Fiscal year |
Management estimates | Management estimates |
Cash and cash equivalents | Cash and cash equivalents |
Receivables | Receivables – |
Inventories | Inventories |
Depreciation, amortization and useful lives | Depreciation, amortization and useful lives internal use has generally been enterprise-level business operations, logistics, and finance software that is customized to meet the Company’s specific operational requirements. The Company begins depreciation and amortization (“depreciation”) for property, plant, and equipment when an asset is both in the location and condition for its intended use. Property, plant, and equipment is depreciated using the straight-line method over its estimated useful lives. The estimated useful lives for property, plant, and equipment are typically as follows: buildings (30 years); machinery, fixtures and equipment (2-10 years); information technology hardware and software (2-10 years); and leasehold improvements (over the applicable lease term or economic useful life, if shorter). The Company amortizes intangible assets acquired in business combinations or asset combinations using the straight-line method over the estimated economic useful lives of the intangible assets from the date of acquisition, which is generally between 5-10 years. |
Long-lived assets impairment | Long-lived asset impairment |
Leases | Leases The Company determines if an arrangement contains a lease at inception. Lease right-of-use assets (“Operating lease assets”) and associated liabilities (“Operating lease liabilities”) are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Certain lease agreements may include one or more options to extend or terminate a lease. Lease terms are inclusive of these options if it is reasonably certain that the Company will exercise such options. The Company’s leases generally do not provide an implicit borrowing rate, as such, the discount rate used to calculate present value is based upon an estimate of the Company’s secured borrowing rate, which varies based on the lease term and the currency of the lease payments. Lease cost is recognized on a straight-line basis over the lease term and is included as a component of “Selling, general, and administrative expenses” in the consolidated statements of operations. Lease payments are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the measurement of operating lease assets and liabilities. |
Goodwill | Goodwill In performing goodwill impairment testing, the Company may first make a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value. If the qualitative assessment indicates it is more-likely-than-not that a reporting unit’s fair value is not greater than its carrying value, the Company must perform a quantitative impairment test. The Company defines the fair value of a reporting unit as the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants as of the impairment test date. To determine the fair value of a reporting unit, the Company uses the income methodology of valuation, which includes the discounted cash flow method, and the market methodology of valuation, which considers values of comparable businesses to estimate the fair value of the Company’s reporting units. Significant management judgment is required when estimating the fair value of the Company’s reporting units from a market participant perspective (including forecasting of future operating results and the discount rates used in the discounted cash flow method of valuation) and in the selection of comparable businesses and related market multiples that are used in the market method of valuation. If the estimated fair value of a reporting unit exceeds the carrying value assigned to that reporting unit, goodwill is not impaired. If the reverse is true, then the Company measures a goodwill impairment loss based on such difference. The Company evaluates each quarter if facts and circumstances indicate that it is more-likely-than-not that the fair value of its reporting units is less than their carrying value, which would require the Company to perform an interim goodwill impairment test. Indicators the Company evaluates to determine whether an interim goodwill impairment test is necessary include, but are not limited to, (i) a sustained decrease in share price or market capitalization as of any fiscal quarter end, (ii) changes in macroeconomic or industry environments, (iii) the results of, and the amount of time passed since, the last goodwill impairment test, and (iv) the long-term expected financial performance of its reporting units. |
Foreign currency translation | Foreign currency translation |
Income taxes | Income taxes tax rates is recognized within income tax expense in the period in which the new tax rate is enacted. Based upon historical and estimated levels of future taxable income and analysis of other key factors, the Company may increase or decrease a valuation allowance against its deferred tax assets, as deemed necessary, to adjust such assets to their estimated net realizable value. The Company establishes contingent liabilities for potentially unfavorable outcomes of positions taken on certain tax matters. These liabilities are based on management’s assessment of whether a tax benefit is more-likely-than-not to be sustained upon examination by the relevant tax authorities. Differences between the estimated and actual outcomes of these matters may result in future changes in estimates to such unrecognized tax benefits. Any such changes in estimates may impact the Company’s effective tax rate. In accordance with the Company’s accounting policies, accrued interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. |
Revenue recognition | Revenue recognition For contracts related to the specialized manufacture of products for customers with no alternative use and for which the Company has an enforceable right to payment, including a reasonable profit margin, the Company recognizes revenue over time as control of the products transfer through the manufacturing process. The contract assets associated with such specialized manufacturing products are not material. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. The Company estimates different forms of variable consideration at the time of sale based on historical experience, current conditions, and contractual obligations. Revenue is recorded net of customer discounts and rebates. When the Company offers the right or has a history of accepting returns of product, historical experience is utilized to establish a liability for the estimate of expected returns and an asset for the right to recover the product expected to be returned. These adjustments are made in the same period as the underlying sales transactions. The Company considers the following indicators amongst others when determining whether it is acting as a principal in the contract where revenue would be recorded on a gross basis: (i) the Company is primarily responsible for fulfilling the promise to provide the specified products or services; (ii) the Company has control of inventory and the related inventory risk before the specified products have been transferred to a customer or after transfer of control to the customer; and (iii) the Company has discretion in establishing the price for the specified products. If a transaction does not meet the Company’s indicators of being a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis. The Company has contracts with certain customers where the Company's performance obligation is to arrange for the products or services to be provided by another party. In these arrangements, as the Company assumes an agency relationship in the transaction, revenue is recognized in the amount of the net fee associated with serving as an agent. These arrangements primarily relate to the sale of electronic component supply chain services or to a lesser extent supplier software services. Sales tax and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. The Company accounts for shipping and handling of product as a fulfillment activity. The Company does not have any payment terms that exceed one year from the point it has satisfied the related performance obligations. Tariffs are included in sales as the company has enforceable rights to additional consideration to cover the cost of tariffs. Other taxes imposed by governmental authorities on the company's revenue producing activities with customers, such as sales taxes and value added taxes, are excluded from net sales. |
Vendor allowances and consideration | Vendor allowances and consideration |
Comprehensive income (loss) | Comprehensive income (loss) |
Share-based compensation | Stock-based compensation |
Restructuring and exit activities | Restructuring and exit activities Nonretirement Postemployment Benefits Exit or Disposal Cost Obligations Exit or Disposal Cost Obligations Property, Plant and Equipment |
Gain on legal settlements | Gain on legal settlements — |
Concentration of credit risk | Concentration of credit risk |
Fair value | Fair value Fair Value Measurements |
Investments | Investments |
Environmental Liabilities | Environmental liabilities |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements Liabilities (subtopic 405-50): Supplier Finance Programs supplier finance programs to assist financial statement users in understanding the effect of such programs on a company’s working capital, liquidity, and cash flows. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude of such programs. The Company adopted this guidance in the first quarter of fiscal 2024, except for the amendment on roll-forward information, which is effective for the Company in fiscal 2025. The Company’s adoption of ASU No. 2022-04 did not have a material impact on the Company’s consolidated financial statements. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Derivative financial instruments | |
Schedule of derivative instruments in the balance sheet | June 29, July 1, 2024 2023 (Thousands) Economic hedges Prepaid and other current assets $ 12,116 $ 69,104 Accrued expenses and other $ 16,957 $ 68,594 Cross-currency swap Other liabilities $ 16,241 $ 22,849 |
Schedule of gain (loss) on derivatives | Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands) Economic hedges Other (expense) income, net $ (31,666) $ 40,454 $ (37,336) Cross currency swap Interest and other financing expense, net $ 4,536 $ 1,635 — |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Shareholders' equity | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table includes the balances within “Accumulated other comprehensive loss”: June 29, July 1, July 2, 2024 2023 2022 (Thousands) Accumulated translation adjustments and other $ (382,801) $ (328,975) $ (370,612) Accumulated pension liability adjustments, net of income taxes (103,922) (80,406) (110,636) Total accumulated other comprehensive loss $ (486,723) $ (409,381) $ (481,248) |
Working capital (Tables)
Working capital (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Working capital | |
Schedule of receivables and allowance for credit losses | Receivables The Company’s receivables and allowance for credit losses were as follows: June 29, July 1, 2024 2023 (Thousands) Receivables $ 4,499,691 $ 4,876,631 Allowance for Credit Losses $ (108,504) $ (112,843) The Company had the following activity in the allowance for credit losses during fiscal 2024 and fiscal 2023: June 29, July 1, 2024 2023 (Thousands) Balance at beginning of the period $ 112,843 $ 113,902 Credit Loss Provisions 12,570 16,798 Credit Loss Recoveries (1,584) (931) Receivables Write Offs (14,060) (18,552) Foreign Currency Effect and Other (1,265) 1,626 Balance at end of the period $ 108,504 $ 112,843 |
Property plant and equipment,_2
Property plant and equipment, net (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Property plant and equipment, net | |
Summary of Property, plant and equipment | June 29, 2024 July 1, 2023 (Thousands) Buildings $ 137,460 $ 108,236 Machinery, fixtures and equipment 275,171 259,745 Information technology hardware and software 903,812 884,448 Leasehold improvements 138,757 137,745 Depreciable property, plant and equipment, gross 1,455,200 1,390,174 Accumulated depreciation (1,144,018) (1,109,631) Depreciable property, plant and equipment, net 311,182 280,543 Land 29,365 22,036 Construction in progress 227,622 138,978 Property, plant and equipment, net $ 568,169 $ 441,557 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Goodwill | |
Change in goodwill balances by reportable segment | Electronic Components Farnell Total (Thousands) Carrying value at July 1, 2023 (1) $ 296,829 $ 483,800 $ 780,629 Foreign currency translation (872) 1,227 355 Carrying value at June 29, 2024 (1) $ 295,957 $ 485,027 $ 780,984 (1) Includes accumulated impairment of $1,482,677 from prior fiscal years. |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Debt | |
Short-term debt | Short-term debt consists of the following (in thousands): June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program (due December 2024) 6.19 % — $ 415,100 $ — Other short-term debt 5.43 % 5.08 % 77,611 70,636 Short-term debt $ 492,711 $ 70,636 |
Long-term debt | Long-term debt consists of the following (in thousands): June 29, July 1, June 29, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program — 5.99 % $ — $ 555,800 Credit Facility 5.05 % 4.85 % 745,480 796,552 Other long-term debt 4.74 % — 22,748 — Public notes due: April 2026 4.63 % 4.63 % 550,000 550,000 May 2031 3.00 % 3.00 % 300,000 300,000 June 2032 5.50 % 5.50 % 300,000 300,000 March 2028 6.25 % 6.25 % 500,000 500,000 Long-term debt before discount and debt issuance costs 2,418,228 3,002,352 Discount and debt issuance costs – unamortized (11,599) (14,323) Long-term debt $ 2,406,629 $ 2,988,029 |
Aggregate debt maturities | Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands): 2025 $ 492,711 2026 550,000 2027 — 2028 1,245,480 2029 — Thereafter 622,748 Subtotal 2,910,939 Discount and debt issuance costs – unamortized (11,599) Total debt $ 2,899,340 |
Accrued expenses and other (Tab
Accrued expenses and other (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Accrued expenses and other | |
Schedule of accrued expenses and other | June 29, 2024 July 1, 2023 (Thousands) Accrued salaries and benefits $ 213,641 $ 253,790 Accrued operating costs 184,007 203,083 Accrued interest and banking costs 34,811 86,162 Accrued restructuring costs 24,660 16,011 Accrued income taxes 46,143 93,521 Accrued property, plant and equipment 20,451 28,771 Accrued other 49,342 71,792 Total accrued expenses and other $ 573,055 $ 753,130 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Income taxes | |
Components of income tax expense ("tax provision") | Years Ended June 29, 2024 July 1, 2023 July 2, 2022 (Thousands) Current: Federal $ 50,428 $ 64,224 $ 58,512 State and local 4,519 7,865 8,871 Foreign 94,663 173,450 126,522 Total current taxes 149,610 245,539 193,905 Deferred: Federal (16,452) (15,422) (32,424) State and local 86 2,606 (22,320) Foreign 320 (20,675) 1,794 Total deferred taxes (16,046) (33,491) (52,950) Income tax expense $ 133,564 $ 212,048 $ 140,955 |
Reconciliations of the federal statutory tax rate to the effective tax rates | Years Ended June 29, 2024 July 1, 2023 July 2, 2022 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State and local income taxes, net of federal benefit 0.9 0.9 1.1 Tax on foreign income, net of valuation allowances (2.1) 0.5 (1.7) Establishment/release of valuation allowances, net of U.S. tax expense 0.8 0.5 (5.8) Change in unrecognized tax benefit reserves 0.1 (0.5) (0.6) Tax audit settlements 0.3 0.3 0.2 Impact of surrender of Company owned life insurance policies — — 1.4 Impact on foreign currency translation loss — (1.2) — Other, net 0.1 0.1 1.3 Effective tax rate 21.1 % 21.6 % 16.9 % |
Components of deferred tax assets and liabilities | June 29, July 1, 2024 2023 (Thousands) Deferred tax assets: Federal, state and foreign net operating loss carry-forwards $ 207,087 $ 211,719 Depreciation and amortization 18,501 15,311 Inventories valuation 19,022 11,525 Operating lease liabilities 51,581 56,424 Receivables valuation 18,417 13,946 Interest deductions 51,388 39,175 Various accrued liabilities and other 103,346 101,713 469,342 449,813 Less — valuation allowances (216,179) (207,744) 253,163 242,069 Deferred tax liabilities: Operating lease assets (49,956) (54,799) Net deferred tax assets $ 203,207 $ 187,270 |
Reconciliation of the beginning and ending liability balances for unrecognized tax benefits | June 29, 2024 July 1, 2023 (Thousands) Balance at beginning of year $ 102,841 $ 109,285 Additions for tax positions taken in prior periods 86 6,086 Reductions for tax positions taken in prior periods (3,242) (3,485) Additions for tax positions taken in current period 6,814 7,523 Reductions related to settlements with taxing authorities (1,862) (2,873) Reductions related to the lapse of applicable statutes of limitations (3,427) (14,691) Adjustments related to foreign currency translation (549) 996 Balance at end of year $ 100,661 $ 102,841 |
Years remaining subject to audit, by major jurisdiction | Jurisdiction Fiscal Year United States (Federal and state) 2016, 2017, 2019 - 2024 Taiwan 2019 - 2024 Hong Kong 2018 - 2024 Germany 2019 - 2024 Singapore 2019 - 2024 Belgium 2021 - 2024 United Kingdom 2021 - 2024 Canada 2017 - 2024 |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Pension and retirement plan | |
Table outlining changes in benefit obligations, plan assets and the funded status of the Plan | June 29, July 1, 2024 2023 (Thousands) Changes in benefit obligations: Benefit obligations at beginning of year $ 471,401 $ 614,359 Service cost 10,252 12,015 Interest cost 24,579 26,730 Actuarial loss (gain) 1,202 (43,407) Benefits paid (36,591) (21,785) Settlements paid — (116,511) Benefit obligations at end of year $ 470,843 $ 471,401 Changes in plan assets: Fair value of plan assets at beginning of year $ 504,348 $ 638,894 Actual return on plan assets 4,948 (4,250) Benefits paid (36,591) (21,785) Settlements paid — (116,511) Contributions 8,000 8,000 Fair value of plan assets at end of year $ 480,705 $ 504,348 Funded status of the plan recognized as a non-current asset $ 9,862 $ 32,947 Amounts recognized in accumulated other comprehensive loss: Unrecognized net actuarial losses $ 185,284 $ 148,867 Unamortized prior service cost 20 23 $ 185,304 $ 148,890 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss $ 36,195 $ 9,702 Amortization of net actuarial losses (222) (2,469) Amortization of prior service costs (4) (4) Net loss recognized due to benefit obligation settlement — (37,350) $ 35,969 $ (30,121) |
Weighted average assumptions used to calculate actuarial present values of benefit obligations | 2024 2023 Discount rate 5.5 % 5.4 % |
Weighted average assumptions used to determine net benefit costs | 2024 2023 Discount rate 5.4 % 4.6 % Expected return on plan assets 7.0 % 7.0 % Rate of compensation increase 3.5 % 3.5 % Interest crediting rate 4.0 % 4.0 % |
Components of net periodic pension costs | Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands) Service cost within selling, general and administrative expenses $ 10,252 $ 12,015 $ 15,007 Interest cost 24,579 26,730 15,787 Expected return on plan assets (39,941) (48,860) (49,135) Amortization of prior service cost 4 4 4 Recognized net actuarial loss 223 2,469 16,343 Net loss recognized due to benefit obligation settlement — 37,350 — Total net periodic pension (benefit) cost within other (expense) income, net (15,135) 17,693 (17,001) Net periodic pension (benefit) cost $ (4,883) $ 29,708 $ (1,994) |
Benefit payments expected to be paid to Plan participants | Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands): 2025 $ 50,415 2026 39,238 2027 40,181 2028 42,244 2029 42,962 2030 through 2034 209,704 |
Plan's assets allocation | 2024 2023 Equity securities 69 % 67 % Fixed income debt securities 29 % 30 % Cash and cash equivalents 2 % 3 % |
Fair value of Plan investments | The following table sets forth the fair value of the Plan’s investments as of June 29, 2024: Level 1 Level 2 Level 3 Net Asset Value Total (Thousands) Cash and cash equivalents $ 8,586 $ — $ — $ — $ 8,586 Return Seeking Investments: Common stocks — — — 151,936 151,936 Real estate — — — 95,974 95,974 High yield credit and bonds — — — 85,064 85,064 Fixed Income Investments: U.S. government — — — 102,542 102,542 Corporate — — — 36,603 36,603 Total $ 8,586 $ — $ — $ 472,119 $ 480,705 Certain investments included in the table above are measured at fair value using the net asset value per share (or its equivalent) practical expedient and are not included in the three levels of the fair value hierarchy. The following table sets forth the fair value of the Plan’s investments as of July 1, 2023: Level 1 Level 2 Level 3 Net Asset Value Total (Thousands) Cash and cash equivalents $ 15,389 $ — $ — $ — $ 15,389 Return Seeking Investments: Common stocks — — — 138,533 138,533 Real estate — — — 108,936 108,936 High yield credit and bonds — — — 90,767 90,767 Fixed Income Investments: U.S. government — — — 118,456 118,456 Corporate — — — 32,267 32,267 Total $ 15,389 $ — $ — $ 488,959 $ 504,348 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease cost related to the Company’s operating leases were as follows (in thousands): Years Ended June 29, July 1, July 2, 2024 2023 2022 Operating lease cost $ 63,514 $ 67,478 $ 68,664 Variable lease cost 29,560 21,422 25,737 Total lease cost $ 93,074 $ 88,900 $ 94,401 |
Schedule of future minimum operating lease payments | Future minimum operating lease payments as of June 29, 2024, are as follows (in thousands): Fiscal Year 2025 $ 59,985 2026 50,264 2027 30,700 2028 23,382 2029 18,440 Thereafter 84,000 Total future operating lease payments 266,771 Total imputed interest on operating lease liabilities (38,892) Total operating lease liabilities $ 227,879 |
Schedule of other information pertaining to operating leases | Other information pertaining to operating leases consists of the following: Years Ended June 29, July 1, July 2, 2024 2023 2022 Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 7.5 8.2 8.8 Weighted-average discount rate 3.8 % 3.8 % 3.8 % Supplemental Cash Flow Information (in thousands) Cash paid for operating lease liabilities $ 57,572 $ 58,111 $ 57,016 Operating lease assets obtained from new operating lease liabilities $ 47,668 $ 48,038 $ 28,014 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Stock-based compensation | |
Summary of the changes in non-vested restricted incentive shares | Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock units at July 1, 2023 1,214,120 $ 37.14 Granted 778,508 47.57 Vested (829,907) 37.41 Forfeited (78,134) 42.76 Non-vested restricted stock units at June 29, 2024 1,084,587 $ 44.02 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Earnings per share | |
Basic and diluted earnings per share calculation | Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands, except per share data) Numerator: Net income $ 498,699 $ 770,828 $ 692,379 Denominator: Weighted average common shares for basic earnings per share 90,567 92,043 98,662 Net effect of dilutive stock-based compensation awards 1,270 1,325 1,157 Weighted average common shares for diluted earnings per share 91,837 93,368 99,819 Basic earnings per share $ 5.51 $ 8.37 $ 7.02 Diluted earnings per share $ 5.43 $ 8.26 $ 6.94 Stock options excluded from earnings per share calculation due to an anti-dilutive effect 79 140 230 |
Additional cash flow informat_2
Additional cash flow information (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Additional cash flow information | |
Noncash and other reconciling items within operating activities | June 29, July 1, July 2, 2024 2023 2022 (Thousands) Provision for credit losses $ 12,570 $ 16,798 $ 30,788 Periodic pension cost (benefit) (1) (663) 30,424 (3,449) Other, net 3,893 4,920 6,777 Total $ 15,800 $ 52,142 $ 34,116 (1) Included net loss recognized due to benefit obligation settlement of $37,350 in fiscal 2023 . |
Interest and income taxes paid | Years Ended June 29, July 1, July 2, 2024 2023 2022 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 20,451 $ 28,771 $ 20,275 Non-cash Financing Activities: Unsettled share repurchases $ 2,054 — $ 8,955 Supplemental Cash Flow Information: Interest $ 351,374 $ 261,586 $ 112,327 Income tax payments, net $ 208,585 $ 216,780 $ 6,892 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Segment information | |
Table of the reportable segments | Years Ended June 29, July 1, July 2, 2024 2023 2022 (Millions) Sales: Electronic Components $ 22,160.0 $ 24,802.6 $ 22,503.3 Farnell 1,597.1 1,734.3 1,807.4 $ 23,757.1 $ 26,536.9 $ 24,310.7 Operating income: Electronic Components $ 947.6 $ 1,179.6 $ 872.0 Farnell 64.8 165.5 242.5 1,012.4 1,345.1 1,114.5 Corporate (112.3) (124.2) (128.9) Restructuring, integration, and other expenses (52.6) (28.0) (5.3) Russian-Ukraine conflict related expenses — — (26.3) Amortization of acquired intangible assets and other (3.1) (6.1) (15.0) $ 844.4 $ 1,186.8 $ 939.0 Assets: Electronic Components $ 10,162.8 $ 10,375.4 $ 8,863.4 Farnell 1,707.9 1,659.0 1,371.1 Corporate 338.4 442.8 154.0 $ 12,209.1 $ 12,477.2 $ 10,388.5 Capital expenditures: Electronic Components $ 176.5 $ 153.4 $ 25.7 Farnell 49.9 41.2 23.1 Corporate 0.1 0.1 0.1 $ 226.5 $ 194.7 $ 48.9 Depreciation & amortization expense: Electronic Components $ 60.6 $ 63.6 $ 67.7 Farnell 26.0 24.8 31.3 Corporate 0.1 0.2 3.3 $ 86.7 $ 88.6 $ 102.3 Sales, by geographic area: Americas $ 5,919.2 $ 6,807.7 $ 5,896.0 EMEA 8,395.0 9,229.4 7,838.1 Asia 9,442.9 10,499.8 10,576.6 $ 23,757.1 $ 26,536.9 $ 24,310.7 Property, plant and equipment, net, by geographic area: Americas $ 109.7 $ 105.3 $ 115.4 EMEA 435.3 310.9 170.1 Asia 23.2 25.4 29.7 $ 568.2 $ 441.6 $ 315.2 |
Table of sales and asset by geographical areas | Sales by country are as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Millions) Sales: Germany $ 3,240.3 $ 3,892.2 $ 3,158.0 Belgium 1,422.6 1,549.6 1,367.1 Taiwan 4,032.4 4,233.3 4,635.0 China (including Hong Kong) 3,206.7 3,395.8 3,375.4 Singapore 1,298.4 1,497.0 1,317.1 Other 5,030.8 5,623.8 4,981.4 Total foreign $ 18,231.2 $ 20,191.7 $ 18,834.0 United States $ 5,525.9 $ 6,345.2 $ 5,476.7 Total $ 23,757.1 $ 26,536.9 $ 24,310.7 Property, plant and equipment, net, by country are as follows: Years Ended June 29, July 1, July 2, 2024 2023 2022 (Millions) Property, plant and equipment, net: Germany $ 307.7 $ 196.0 $ 67.6 United Kingdom 105.7 92.6 79.8 Belgium 14.0 15.5 16.7 Other 33.7 35.6 38.7 Total foreign $ 461.1 $ 339.7 $ 202.8 United States $ 107.1 $ 101.9 $ 112.4 Total $ 568.2 $ 441.6 $ 315.2 |
Restructuring expenses (Tables)
Restructuring expenses (Tables) | 12 Months Ended |
Jun. 29, 2024 | |
Fiscal Year 2024 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Asset Severance Impairments Other Total (Thousands) Fiscal 2024 restructuring expenses $ 38,493 $ 392 $ 582 $ 39,467 Cash payments (14,549) — (582) (15,131) Non-cash amounts — (392) — (392) Other, principally foreign currency translation (106) — — (106) Balance at June 29, 2024 $ 23,838 $ — $ — $ 23,838 |
Fiscal Year 2023 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility Severance Exit Costs Total (Thousands) Balance at July 1, 2023 $ 15,507 $ 504 $ 16,011 Cash payments (15,316) — (15,316) Other, principally foreign currency translation 125 2 127 Balance at June 29, 2024 $ 316 $ 506 $ 822 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Property, Plant and Equipment [Line Items] | |||
Fair value assets transfers into and out of level 3, net | $ 0 | $ 0 | $ 0 |
Equity method investment | $ 23.5 | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Intangible asset, useful life | 5 years | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Intangible asset, useful life | 10 years | ||
Lease term | 14 years | ||
Level 1 | |||
Property, Plant and Equipment [Line Items] | |||
Fair value of Cash equivalents recorded based upon level 1 | $ 14.1 | $ 3.7 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Machinery Fixtures And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Machinery Fixtures And Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Information Technology Hardware and Software | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Information Technology Hardware and Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years |
Derivative financial instrume_3
Derivative financial instruments Textuals (Details) € in Millions | 12 Months Ended | ||
Jun. 29, 2024 USD ($) | Jul. 01, 2023 USD ($) | Jul. 01, 2023 EUR (€) | |
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 | ||
Designated as Hedging Instrument | Cross-Currency Swap | |||
Derivative notional amounts | |||
Total notional amount | $ 500,000,000 | € 472.6 | |
Designated as Hedging Instrument | Net Investment Hedging | Cross-Currency Swap | |||
Derivative fair value | |||
Derivative liabilities fair value | $ 16,241,000 | 22,849,000 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||
Not Designated as Hedging Instrument Economic Hedge | Foreign Exchange Forward | |||
Derivative fair value | |||
Derivative assets fair value | $ 12,116,000 | $ 69,104,000 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative liabilities fair value | $ 16,957,000 | $ 68,594,000 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | Accrued Liabilities, Current |
Derivative financial instrume_4
Derivative financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Designated as Hedging Instrument | Net Investment Hedging | Cross-Currency Swap | |||
Derivative [Line Items] | |||
Interest and other financing expense, net | $ 4,536 | $ 1,635 | |
Not Designated as Hedging Instrument Economic Hedge | Foreign Exchange Forward | |||
Derivative [Line Items] | |||
Net derivative financial instrument gain (loss) | $ (31,666) | $ 40,454 | $ (37,336) |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Shareholders' equity (Details)
Shareholders' equity (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 |
Illustration of accumulated balances of comprehensive income | |||
Accumulated translation adjustments and other | $ (382,801) | $ (328,975) | $ (370,612) |
Accumulated pension liability adjustments, net of income taxes | (103,922) | (80,406) | (110,636) |
Total accumulated other comprehensive loss | $ (486,723) | $ (409,381) | $ (481,248) |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Shareholders' equity | |||
Shares repurchased during period (in shares) | 3.3 | ||
Cost of repurchase | $ 164,800 | ||
Remaining authorized repurchase amount | $ 153,700 | ||
Cash dividend paid per share | $ 1.24 | $ 1.16 | $ 1 |
Dividends paid on common stock | $ 111,963 | $ 106,325 | $ 98,490 |
Working capital - Receivables (
Working capital - Receivables (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 |
Working capital | |||
Receivables | $ 4,499,691 | $ 4,876,631 | |
Allowance for Credit Losses | $ (108,504) | $ (112,843) | $ (113,902) |
Working capital - Allowance for
Working capital - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Receivables, Allowance for Credit Loss [Roll Forward] | ||
Receivables, Allowance for Credit Loss, Beginning Balance | $ 112,843 | $ 113,902 |
Credit Loss Provisions | 12,570 | 16,798 |
Russian-Ukraine conflict Credit Loss Provisions | 17,202 | |
Credit Loss Recoveries | (1,584) | (931) |
Receivables Write Offs | (14,060) | (18,552) |
Foreign Currency Effect and Other | (1,265) | 1,626 |
Receivables, Allowance for Credit Loss, Ending Balance | $ 108,504 | $ 112,843 |
Working Capital - Inventory (De
Working Capital - Inventory (Details) | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Working capital | ||
Inventory held for supply chain services | 7% | 8% |
Property plant and equipment,_3
Property plant and equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | $ 1,455,200 | $ 1,390,174 | |
Accumulated depreciation | (1,144,018) | (1,109,631) | |
Total Property, plant and equipment, net | 568,169 | 441,557 | $ 315,200 |
Depreciable property, plant and equipment, net | 311,182 | 280,543 | |
Land | 29,365 | 22,036 | |
Construction in progress | 227,622 | 138,978 | |
Depreciation and amortization expense | 83,600 | 82,600 | $ 87,400 |
Building | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 137,460 | 108,236 | |
Machinery Fixtures And Equipment | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 275,171 | 259,745 | |
Information Technology Hardware and Software | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 903,812 | 884,448 | |
Leasehold Improvements | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | $ 138,757 | $ 137,745 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Carrying amount of goodwill, by reportable segment | ||
Carrying value | $ 780,629 | |
Foreign currency translation | 355 | |
Carrying value | 780,984 | |
Accumulated Impairment | $ 1,482,677 | |
Electronic Components | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 296,829 | |
Foreign currency translation | (872) | |
Carrying value | 295,957 | |
Farnell | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 483,800 | |
Foreign currency translation | 1,227 | |
Carrying value | $ 485,027 |
Debt - short-term debt (Details
Debt - short-term debt (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 |
Components of short-term debt | ||
Short-term debt | $ 492,711 | $ 70,636 |
Accounts receivable securitization program | ||
Components of short-term debt | ||
Accounts receivable securitization program | $ 700,000 | |
stated interest rate | 6.19% | 5.99% |
Short-term debt | $ 415,100 | |
Other Short -Term Debt | ||
Components of short-term debt | ||
stated interest rate | 5.43% | 5.08% |
Short-term debt | $ 77,611 | $ 70,636 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Debt Instrument [Line Items] | ||
Long-term debt before discount and debt issuance costs | $ 2,418,228 | $ 3,002,352 |
Discount and debt issuance costs - unamortized | (11,599) | (14,323) |
Long-term debt | 2,406,629 | $ 2,988,029 |
Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Accounts receivable securitization program | $ 700,000 | |
Long-term debt, stated interest rate | 6.19% | 5.99% |
Long-term debt before discount and debt issuance costs | $ 415,100 | $ 555,800 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 4.74% | |
Long-term debt before discount and debt issuance costs | $ 22,748 | |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Credit Facility | 1,500,000 | |
Revolving credit facilities | Line of credit | ||
Debt Instrument [Line Items] | ||
Credit Facility | $ 745,480 | $ 796,552 |
Long-term Debt, Weighted Average Interest Rate | 5.05% | 4.85% |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Credit Facility | $ 200,000 | |
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% | 3% |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 300,000 |
Notes due | Notes Due June 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 5.50% | 5.50% |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 300,000 |
Notes due | Notes Due March 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 6.25% | 6.25% |
Long-term debt before discount and debt issuance costs | $ 500,000 | $ 500,000 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Company's total debt | ||
Debt, Long-term and Short-term, Combined Amount | $ 2,899,340 | $ 3,060,000 |
Total fair value | $ 2,850,000 | $ 2,980,000 |
Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
stated interest rate | 6.19% | 5.99% |
Accounts receivable securitization program | $ 700,000 | |
Accounts Receivable from Securitization | 1,050,000 | $ 1,270,000 |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 1,500,000 | |
Term | 5 years | |
Revolving credit facilities | Line of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 745,480 | 796,552 |
Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | 200,000 | |
Letters of credit outstanding, amount | 900 | $ 900 |
Notes Payable In Certain Approved Currencies | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 300,000 | |
Notes due | Notes Due March 2028 | ||
Debt Instrument [Line Items] | ||
stated interest rate | 6.25% | 6.25% |
Debt (Maturity Schedule) (Detai
Debt (Maturity Schedule) (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 |
Debt | ||
2025 | $ 492,711 | |
2026 | 550,000 | |
2028 | 1,245,480 | |
Thereafter | 622,748 | |
Subtotal | 2,910,939 | |
Discount on debt issuance costs - unamortized | (11,599) | |
Total debt | $ 2,899,340 | $ 3,060,000 |
Accrued expenses and other (Det
Accrued expenses and other (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 |
Accrued expenses and other | ||
Accrued salaries and benefits | $ 213,641 | $ 253,790 |
Accrued operating costs | 184,007 | 203,083 |
Accrued interest and banking costs | 34,811 | 86,162 |
Accrued restructuring costs | 24,660 | 16,011 |
Accrued income taxes | 46,143 | 93,521 |
Accrued property, plant and equipment | 20,451 | 28,771 |
Accrued other | 49,342 | 71,792 |
Total accrued expenses and other | $ 573,055 | $ 753,130 |
Income taxes (Provision for Inc
Income taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Current: | |||
Federal | $ 50,428 | $ 64,224 | $ 58,512 |
State and Local | 4,519 | 7,865 | 8,871 |
Foreign | 94,663 | 173,450 | 126,522 |
Total current taxes | 149,610 | 245,539 | 193,905 |
Deferred: | |||
Federal | (16,452) | (15,422) | (32,424) |
State and Local | 86 | 2,606 | (22,320) |
Foreign | 320 | (20,675) | 1,794 |
Total deferred taxes | (16,046) | (33,491) | (52,950) |
Income tax expense | $ 133,564 | $ 212,048 | $ 140,955 |
Income taxes (Effective Tax Rat
Income taxes (Effective Tax Rate) (Details) | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Reconciliation between federal statutory tax rate and effective tax rate | |||
U.S. federal statutory rate | 21% | 21% | 21% |
State and local income taxes, net of federal benefit | 0.90% | 0.90% | 1.10% |
Tax on foreign income, net of valuation allowances | (2.10%) | 0.50% | (1.70%) |
Establishment/release of valuation allowance, net of U.S. tax expense | 0.80% | 0.50% | (5.80%) |
Change in unrecognized tax benefit reserves | 0.10% | (0.50%) | (0.60%) |
Tax audit settlements | 0.30% | 0.30% | 0.20% |
Impact of surrender of Company owned life insurance policies | 1.40% | ||
Impact on foreign currency translation loss | (1.20%) | ||
Other, net | 0.10% | 0.10% | 1.30% |
Effective Income Tax Rate | 21.10% | 21.60% | 16.90% |
Income taxes (Deferred Assets a
Income taxes (Deferred Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 |
Deferred tax assets: | ||
Federal, state and foreign net operating loss carry-forwards | $ 207,087 | $ 211,719 |
Depreciation and amortization | 18,501 | 15,311 |
Inventories valuation | 19,022 | 11,525 |
Operating lease liabilities | 51,581 | 56,424 |
Receivables valuation | 18,417 | 13,946 |
Deferred Tax Asset Interest Deductions | 51,388 | 39,175 |
Various accrued liabilities and other | 103,346 | 101,713 |
Deferred tax assets, gross | 469,342 | 449,813 |
Less - valuation allowance | (216,179) | (207,744) |
Deferred tax assets, net | 253,163 | 242,069 |
Deferred tax liabilities: | ||
Operating lease assets | (49,956) | (54,799) |
Net deferred tax assets | $ 203,207 | $ 187,270 |
Income taxes (Unrecognized Tax
Income taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Reconciliation of the beginning and ending accrual balance for unrecognized tax benefits | ||
Balance at beginning of year | $ 102,841 | $ 109,285 |
Additions for tax positions taken in prior periods | 86 | 6,086 |
Reductions for tax positions taken in prior periods | (3,242) | (3,485) |
Additions for tax positions taken in current period | 6,814 | 7,523 |
Reductions related to settlements with taxing authorities | (1,862) | (2,873) |
Reductions related to the lapse of applicable statutes of limitations | (3,427) | (14,691) |
Adjustments related to foreign currency translation | (549) | |
Adjustments related to foreign currency translation | 996 | |
Balance at end of year | $ 100,661 | $ 102,841 |
Income taxes - Textuals (Detail
Income taxes - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Income taxes | |||
CAMT liability | $ 0 | ||
Payment For Purchase Of Transferable Federal Tax Credits | 36,600 | ||
Income before income taxes, Domestic | 186,600 | $ 250,800 | $ 197,100 |
Income before income taxes, Foreign | $ 445,600 | $ 732,100 | $ 636,300 |
Effective tax rate | 21.10% | 21.60% | 16.90% |
Deferred tax assets | $ 253,163 | $ 242,069 | |
Increase in valuation allowance due to current year activity in the United States | 10,400 | ||
Decrease in Valuation Allowance Due To Changing Foreign Exchange Rates | 2,000 | ||
Net operating loss carry forward | 988,400,000 | ||
Operating loss carry forward, subject to expiration | 15,500 | ||
Deferred tax assets operating loss carry forwards expiring in next three years and after | 211,000 | ||
Operating loss carry forward, not subject to expiration | 761,900 | ||
Unrecognized tax benefits including interest and penalties | 130,300 | ||
Accrued interest expense and penalties | 29,600 | $ 27,700 | |
Tax contingencies settled | 55,300 | ||
Expected cash payment for settlement | $ 0 |
Pension and retirement plans (P
Pension and retirement plans (Pension Plans) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 28, 2025 | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Changes in benefit obligations: | ||||
Benefit obligations at beginning of year | $ 470,843 | $ 471,401 | $ 614,359 | |
Service cost within selling, general and administrative expenses | 10,252 | 12,015 | $ 15,007 | |
Interest cost | 24,579 | 26,730 | 15,787 | |
Actuarial loss (gain) | 1,202 | (43,407) | ||
Benefits paid | (36,591) | (21,785) | ||
Settlements paid | 116,511 | |||
Benefit obligations at end of year | 470,843 | 471,401 | 614,359 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | $ 480,705 | 504,348 | 638,894 | |
Actual return on plan assets | 4,948 | (4,250) | ||
Benefits paid | (36,591) | (21,785) | ||
Settlements paid | (116,511) | |||
Contributions | 8,000 | 8,000 | ||
Fair value of plan assets at end of year | 480,705 | 504,348 | $ 638,894 | |
Funded status of the plan recognized as a non-current asset | 9,862 | 32,947 | ||
Amounts recognized in accumulated other comprehensive income: | ||||
Unrecognized net actuarial losses | 185,284 | 148,867 | ||
Unamortized prior service cost | 20 | 23 | ||
Amount recognized in accumulated other comprehensive income | 185,304 | 148,890 | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | ||||
Net actuarial loss | 36,195 | 9,702 | ||
Amortization of net actuarial losses | (222) | (2,469) | ||
Amortization of prior service costs | (4) | (4) | ||
Defined Benefit Plan Settlements Benefit Obligation | 37,350 | |||
Other changes in plan assets and benefit obligations recognized in other comprehensive income | (35,969) | 30,121 | ||
Unrecognized actuarial losses expected to be recognized in net periodic pension cost during following year | $ 5,100 | |||
Settlement expenses | $ 37,350 | |||
Weighted average assumptions used to calculate actuarial present values of benefit obligations | ||||
Discount rate | 5.50% | 5.40% | ||
Weighted average assumptions used to determine net benefit costs | ||||
Discount rate | 5.40% | 4.60% | ||
Expected return on plan assets | 7.50% | 7% | 7% | |
Rate of compensation increase | 3.50% | 3.50% | ||
Interest crediting rate | 4% | 4% |
Pension and retirement plans _2
Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | Jun. 28, 2025 | |
Components of net periodic pension costs | ||||
Service cost within selling, general and administrative expenses | $ 10,252 | $ 12,015 | $ 15,007 | |
Interest cost | $ 24,579 | $ 26,730 | $ 15,787 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Expected return on plan assets | $ (39,941) | $ (48,860) | $ (49,135) | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Amortization of prior service cost | $ 4 | $ 4 | $ 4 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Recognized net actuarial loss | $ 223 | $ 2,469 | $ 16,343 | |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Net loss recognized due to benefit obligation settlement | $ (37,350) | |||
Net periodic pension (benefit) cost | $ (4,883) | 29,708 | $ (1,994) | |
Contributions | 8,000 | 8,000 | ||
Settlement expenses | (37,350) | |||
Other Income, net | ||||
Components of net periodic pension costs | ||||
Net periodic pension (benefit) cost | $ (15,135) | $ 17,693 | $ (17,001) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) Excluding Service Cost, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | |
Forecast | ||||
Components of net periodic pension costs | ||||
Estimated future employer pension plan contributions | $ 8,000 |
Pension and retirement plans (B
Pension and retirement plans (Benefit Payments) (Details) $ in Thousands | Jun. 29, 2024 USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2025 | $ 50,415 |
2026 | 39,238 |
2027 | 40,181 |
2028 | 42,244 |
2029 | 42,962 |
2030 through 2034 | $ 209,704 |
Pension and retirement plans _3
Pension and retirement plans (Plan Asset Allocations) (Details) | 12 Months Ended | ||
Jun. 28, 2025 | Jun. 29, 2024 | Jul. 01, 2023 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7.50% | 7% | 7% |
Return seeking investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 69% | 67% | |
Target allocation percentage of investments return seeking investments | 65% | ||
Fixed Income: | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 29% | 30% | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 2% | 3% |
Pension and retirement plans (F
Pension and retirement plans (Fair Value) (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 480,705 | $ 504,348 | $ 638,894 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,586 | 15,389 | |
Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 151,936 | 138,533 | |
Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 95,974 | 108,936 | |
High yield credit and bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 85,064 | 90,767 | |
U.S. government agencies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102,542 | 118,456 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 36,603 | 32,267 | |
Level 1 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,586 | 15,389 | |
Level 1 | Recurring | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,586 | 15,389 | |
Net Asset Value | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 472,119 | 488,959 | |
Net Asset Value | Recurring | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 151,936 | 138,533 | |
Net Asset Value | Recurring | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 95,974 | 108,936 | |
Net Asset Value | Recurring | High yield credit and bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 85,064 | 90,767 | |
Net Asset Value | Recurring | U.S. government agencies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 102,542 | 118,456 | |
Net Asset Value | Recurring | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 36,603 | $ 32,267 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Lease Cost | |||
Operating lease cost | $ 63,514 | $ 67,478 | $ 68,664 |
Variable lease cost | 29,560 | 21,422 | 25,737 |
Total lease cost | $ 93,074 | $ 88,900 | $ 94,401 |
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating Lease, Term of Contract | 14 years |
Leases (Operating Lease Commitm
Leases (Operating Lease Commitments) (Details) $ in Thousands | Jun. 29, 2024 USD ($) |
Leases [Abstract] | |
2025 | $ 59,985 |
2026 | 50,264 |
2027 | 30,700 |
2028 | 23,382 |
2029 | 18,440 |
Thereafter | 84,000 |
Total future operating lease payments | 266,771 |
Total imputed interest on operating lease liabilities | (38,892) |
Total operating lease liabilities | $ 227,879 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Leases [Abstract] | |||
Operating lease weighted-average remaining lease term | 7 years 6 months | 8 years 2 months 12 days | 8 years 9 months 18 days |
Operating lease weighted-average discount rate | 3.80% | 3.80% | 3.80% |
Cash paid for operating lease liabilities | $ 57,572 | $ 58,111 | $ 57,016 |
Operating lease assets obtained from new operating lease liabilities | $ 47,668 | $ 48,038 | $ 28,014 |
Stock-based compensation (Non-V
Stock-based compensation (Non-Vested restricted Incentive Shares) (Details) - Restricted incentive shares | 12 Months Ended |
Jun. 29, 2024 $ / shares shares | |
Shares | |
Beginning balance | shares | 1,214,120 |
Granted | shares | 778,508 |
Vested | shares | (829,907) |
Forfeited | shares | (78,134) |
Ending balance | shares | 1,084,587 |
Weighted Average Grant-Date Fair Value | |
Beginning balance | $ / shares | $ 37.14 |
Granted | $ / shares | 47.57 |
Vested | $ / shares | 37.41 |
Forfeited | $ / shares | 42.76 |
Ending balance | $ / shares | $ 44.02 |
Stock-based compensation (Textu
Stock-based compensation (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 33.5 | $ 38.8 | $ 36.7 |
Common stock of shares reserved for stock option and stock incentive plans | 5,700,000 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted | 0 | 0 | |
Shares available for grant | 1,000,000 | ||
Stock Based Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 3,400,000 | ||
Restricted incentive shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 32.6 | $ 30.5 | 29.5 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 1,100,000 | ||
Total unrecognized compensation cost related to non vested awards | $ 21.2 | ||
Weighted average period for expected recognition of compensation cost | 2 years 1 month 6 days | ||
Fair value of shares vested | $ 31 | $ 28.6 | $ 26.6 |
Performance shares granted | 778,508 | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 1,300,000 | ||
Performance shares granted | 200,000 | 200,000 | 0 |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Loss Contingency, Estimate [Abstract] | |||
Estimate of possible loss | $ 17.2 | $ 22.7 | |
Gain on legal settlement and other | $ 86.5 | 74.4 | |
Proceeds from legal settlement | $ 90.7 | $ 69.9 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Numerator: | |||
Net income | $ 498,699 | $ 770,828 | $ 692,379 |
Denominator: | |||
Weighted average common shares for basic earnings per share | 90,567 | 92,043 | 98,662 |
Net effect of dilutive stock based compensation awards | 1,270 | 1,325 | 1,157 |
Weighted average common shares for diluted earnings per share | 91,837 | 93,368 | 99,819 |
Basic earnings per share | $ 5.51 | $ 8.37 | $ 7.02 |
Diluted earnings per share | $ 5.43 | $ 8.26 | $ 6.94 |
Employee Stock Option [Member] | |||
Denominator: | |||
antidilutive Securities | 79 | 140 | 230 |
Additional cash flow informat_3
Additional cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Other non-cash and reconciling items | |||
Provision for credit losses | $ 12,570 | $ 16,798 | $ 30,788 |
Periodic pension cost (benefit) | (663) | 30,424 | (3,449) |
Other, net | 3,893 | 4,920 | 6,777 |
Total | 15,800 | 52,142 | 34,116 |
Net loss due to benefit obligation settlement | 37,350 | ||
Interest and income taxes paid | |||
Capital expenditures incurred but not paid | 20,451 | 28,771 | 20,275 |
Unsettled share repurchases | 2,054 | 8,955 | |
Interest | 351,374 | 261,586 | 112,327 |
Income tax payments, net | $ 208,585 | $ 216,780 | $ 6,892 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Sales, by segment | |||
Sales | $ 23,757,129 | $ 26,536,881 | $ 24,310,708 |
Operating income (loss): | |||
Operating income (loss) before restructuring charges, integration, amortization of acquired intangible assets, and other | 1,012,400 | 1,345,100 | 1,114,500 |
Restructuring, integration and other expenses | (52,550) | (28,038) | (5,272) |
Russian-Ukraine conflict related expenses | (26,261) | ||
Amortization of acquired intangible assets | (3,100) | (6,100) | (15,000) |
Operating income | 844,367 | 1,186,800 | 939,011 |
Assets: | |||
Assets | 12,209,147 | 12,477,159 | 10,388,500 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 226,500 | 194,700 | 48,900 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 86,708 | 88,613 | 102,326 |
Corporate | |||
Operating income (loss): | |||
Corporate Overhead Expenses | (112,300) | (124,200) | (128,900) |
Assets: | |||
Assets | 338,400 | 442,800 | 154,000 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 100 | 100 | 100 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 100 | 200 | 3,300 |
Electronic Components | Segment | |||
Sales, by segment | |||
Sales | 22,160,000 | 24,802,600 | 22,503,300 |
Operating income (loss): | |||
Operating income (loss) before restructuring charges, integration, amortization of acquired intangible assets, and other | 947,600 | 1,179,600 | 872,000 |
Assets: | |||
Assets | 10,162,800 | 10,375,400 | 8,863,400 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 176,500 | 153,400 | 25,700 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 60,600 | 63,600 | 67,700 |
Farnell | Segment | |||
Sales, by segment | |||
Sales | 1,597,100 | 1,734,300 | 1,807,400 |
Operating income (loss): | |||
Operating income (loss) before restructuring charges, integration, amortization of acquired intangible assets, and other | 64,800 | 165,500 | 242,500 |
Assets: | |||
Assets | 1,707,900 | 1,659,000 | 1,371,100 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 49,900 | 41,200 | 23,100 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | $ 26,000 | $ 24,800 | $ 31,300 |
Segment information (Sales, by
Segment information (Sales, by geographic area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Sales, by geographic area: | |||
Sales | $ 23,757,129 | $ 26,536,881 | $ 24,310,708 |
Americas | |||
Sales, by geographic area: | |||
Sales | 5,919,200 | 6,807,700 | 5,896,000 |
United States | |||
Sales, by geographic area: | |||
Sales | 5,525,900 | 6,345,200 | 5,476,700 |
EMEA | |||
Sales, by geographic area: | |||
Sales | 8,395,000 | 9,229,400 | 7,838,100 |
Germany | |||
Sales, by geographic area: | |||
Sales | 3,240,300 | 3,892,200 | 3,158,000 |
Belgium | |||
Sales, by geographic area: | |||
Sales | 1,422,600 | 1,549,600 | 1,367,100 |
Asia | |||
Sales, by geographic area: | |||
Sales | 9,442,900 | 10,499,800 | 10,576,600 |
Taiwan | |||
Sales, by geographic area: | |||
Sales | 4,032,400 | 4,233,300 | 4,635,000 |
China (including Hong Kong) | |||
Sales, by geographic area: | |||
Sales | 3,206,700 | 3,395,800 | 3,375,400 |
SINGAPORE | |||
Sales, by geographic area: | |||
Sales | 1,298,400 | 1,497,000 | 1,317,100 |
Other | |||
Sales, by geographic area: | |||
Sales | 5,030,800 | 5,623,800 | 4,981,400 |
Total foreign | |||
Sales, by geographic area: | |||
Sales | $ 18,231,200 | $ 20,191,700 | $ 18,834,000 |
Segment information (Property,
Segment information (Property, plant and equipment, net, by geographic area) (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | $ 568,169 | $ 441,557 | $ 315,200 |
Americas | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 109,700 | 105,300 | 115,400 |
United States | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 107,100 | 101,900 | 112,400 |
EMEA | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 435,300 | 310,900 | 170,100 |
Germany | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 307,700 | 196,000 | 67,600 |
United Kingdom | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 105,700 | 92,600 | 79,800 |
Belgium | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 14,000 | 15,500 | 16,700 |
Asia | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 23,200 | 25,400 | 29,700 |
Other | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 33,700 | 35,600 | 38,700 |
Total foreign | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | $ 461,100 | $ 339,700 | $ 202,800 |
Segment information (Sales) (De
Segment information (Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Segment information | |||
Sales | $ 23,757,129 | $ 26,536,881 | $ 24,310,708 |
Restructuring expenses (Details
Restructuring expenses (Details) $ in Thousands | 12 Months Ended |
Jun. 29, 2024 USD ($) | |
Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | $ 39,467 |
Cash payments | (15,131) |
Non-cash amounts | (392) |
Other, principally foreign currency translation | (106) |
Ending Balance | 23,838 |
Severance | Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 38,493 |
Cash payments | (14,549) |
Other, principally foreign currency translation | (106) |
Ending Balance | 23,838 |
Severance | Fiscal Year 2023 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 15,507 |
Cash payments | (15,316) |
Other, principally foreign currency translation | 125 |
Ending Balance | 316 |
Facility Exit Costs | Fiscal Year 2023 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 504 |
Other, principally foreign currency translation | 2 |
Ending Balance | 506 |
Asset Impairments | Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 392 |
Non-cash amounts | (392) |
Asset Impairments | Fiscal Year 2023 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 16,011 |
Cash payments | (15,316) |
Other, principally foreign currency translation | 127 |
Ending Balance | 822 |
Other Restructuring | Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 582 |
Cash payments | $ (582) |
Restructuring expenses (Textual
Restructuring expenses (Textuals) (Details) - Fiscal Year 2024 Restructuring Liabilities $ in Thousands | 12 Months Ended |
Jun. 29, 2024 USD ($) employee | |
Restructuring Cost and Reserve [Line Items] | |
Number of employee reductions under Severance charges | employee | 630 |
Restructuring expenses | $ 39,467 |
Restructuring Reserve | 23,838 |
Electronic Components | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expenses | 24,300 |
Farnell | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expenses | 9,700 |
Corporate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring expenses | $ 5,500 |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jul. 02, 2022 | |
Charged to expense (income), Income from reduction in valuation allowance | |||
Russian-Ukraine conflict Credit Loss Provisions | $ 17,202 | ||
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 112,843 | 113,902 | $ 88,160 |
Charged to Expense (Income) | 12,570 | 16,798 | 47,990 |
Deductions | (16,909) | (17,857) | (22,248) |
Balance at End of Period | 108,504 | 112,843 | 113,902 |
Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 207,744 | 207,889 | 293,569 |
Charged to Expense (Income) | 10,462 | 4,530 | (65,208) |
Charged to Other Accounts | (2,027) | (4,675) | (20,472) |
Balance at End of Period | $ 216,179 | $ 207,744 | $ 207,889 |