Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Apr. 01, 2017 | Apr. 20, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AVNET INC | |
Entity Central Index Key | 8,858 | |
Document Type | 10-Q | |
Document Period End Date | Apr. 1, 2017 | |
Current Fiscal Year End Date | --07-01 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 124,994,009 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 01, 2017 | Jul. 02, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 1,129,233 | $ 1,031,478 |
Marketable securities | 261,549 | |
Receivables, less allowances of $45,033 and $27,448, respectively | 3,237,440 | 2,769,906 |
Inventories | 2,771,236 | 2,559,921 |
Prepaid and other current assets | 273,534 | 81,197 |
Current assets held for sale | 2,561,471 | |
Total current assets | 7,672,992 | 9,003,973 |
Property, plant and equipment, net | 526,025 | 453,209 |
Goodwill | 1,140,978 | 621,852 |
Intangible assets, net | 285,390 | 22,571 |
Other assets | 220,393 | 239,133 |
Non-current assets held for sale | 899,067 | |
Total assets | 9,845,778 | 11,239,805 |
Current liabilities: | ||
Short-term debt | 32,574 | 1,152,599 |
Accounts payable | 1,731,275 | 1,590,777 |
Accrued expenses and other | 880,794 | 394,888 |
Current liabilities held for sale | 1,804,229 | |
Total current liabilities | 2,644,643 | 4,942,493 |
Long-term debt | 1,724,234 | 1,339,204 |
Other liabilities | 377,328 | 223,053 |
Non-current liabilities held for sale | 43,769 | |
Total liabilities | 4,746,205 | 6,548,519 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 126,238,957 shares and 127,377,466 shares, respectively | 126,239 | 127,377 |
Additional paid-in capital | 1,492,764 | 1,452,678 |
Retained earnings | 3,872,407 | 3,632,271 |
Accumulated other comprehensive loss | (391,706) | (520,775) |
Treasury stock at cost, 23,683 shares and 27,314 shares, respectively | (131) | (265) |
Total shareholders' equity | 5,099,573 | 4,691,286 |
Total liabilities and shareholders' equity | $ 9,845,778 | $ 11,239,805 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 01, 2017 | Jul. 02, 2016 |
Current assets: | ||
Allowance for doubtful accounts receivable, current (in dollars) | $ 45,033 | $ 27,448 |
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 | 126,238,957 | 127,377,466 |
Treasury Stock, shares | 23,683 | 27,314 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income Statement [Abstract] | ||||
Sales | $ 4,441,896 | $ 4,081,961 | $ 12,833,559 | $ 12,771,628 |
Cost of sales | 3,811,910 | 3,561,019 | 11,094,733 | 11,189,459 |
Gross profit | 629,986 | 520,942 | 1,738,826 | 1,582,169 |
Selling, general and administrative expenses | 480,190 | 362,064 | 1,275,417 | 1,093,982 |
Restructuring, integration and other expenses | 35,513 | 8,854 | 95,382 | 35,455 |
Operating income | 114,283 | 150,024 | 368,027 | 452,732 |
Other income (expense), net | 19,439 | 1,453 | (30,809) | 284 |
Interest expense | (27,534) | (21,388) | (81,518) | (64,385) |
Income from continuing operations before income taxes | 106,188 | 130,089 | 255,700 | 388,631 |
Income tax expense | 16,268 | 22,297 | 65,627 | 69,774 |
Income from continuing operations, net of tax | 89,920 | 107,792 | 190,073 | 318,857 |
Income (loss) from discontinued operations, net of tax | (35,237) | 15,667 | 36,671 | 90,868 |
Gain on sale of discontinued operations, net of tax | 217,088 | 217,088 | ||
Income from discontinued operations, net of tax | 181,851 | 15,667 | 253,759 | 90,868 |
Net income | $ 271,771 | $ 123,459 | $ 443,832 | $ 409,725 |
Earnings per share: | ||||
Basic earnings per share-continuing operations | $ 0.70 | $ 0.83 | $ 1.48 | $ 2.42 |
Basic earnings per share-discontinued operations | 1.42 | 0.12 | 1.98 | 0.69 |
Basic earnings per share | 2.12 | 0.95 | 3.46 | 3.11 |
Diluted earnings per share-continuing operations | 0.69 | 0.82 | 1.46 | 2.37 |
Diluted earnings per share-discontinued operations | 1.41 | 0.12 | 1.95 | 0.68 |
Diluted earnings per share | $ 2.10 | $ 0.94 | $ 3.41 | $ 3.05 |
Shares used to compute earnings per share: | ||||
Basic | 128,487 | 129,811 | 127,973 | 131,834 |
Diluted | 129,432 | 131,650 | 129,847 | 134,298 |
Cash dividends paid per common share | $ 0.18 | $ 0.17 | $ 0.52 | $ 0.51 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 271,771 | $ 123,459 | $ 443,832 | $ 409,725 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments and other | 92,702 | 129,872 | (58,300) | 20,987 |
Impact of TS business divestiture (Note 3) | 181,465 | 181,465 | ||
Pension adjustments, net | 2,102 | 2,156 | 5,904 | 6,380 |
Total comprehensive (loss) income | $ 548,040 | $ 255,487 | $ 572,901 | $ 437,092 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 01, 2017 | Apr. 02, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 443,832 | $ 409,725 |
Less: Income from discontinued operations, net of tax | 253,759 | 90,868 |
Income from continuing operations | 190,073 | 318,857 |
Non-cash and other reconciling items: | ||
Depreciation | 63,800 | 50,789 |
Amortization | 34,185 | 5,900 |
Deferred income taxes | (15,562) | 3,963 |
Stock-based compensation | 41,778 | 47,724 |
Other, net | 10,563 | 28,687 |
Changes in (net of effects from businesses acquired): | ||
Receivables | (335,617) | 254,305 |
Inventories | 86,103 | (351,731) |
Accounts payable | 86,120 | (103,236) |
Accrued expenses and other, net | (20,977) | (73,147) |
Net cash flows provided by operating activities - continuing operations | 140,466 | 182,111 |
Net cash flows (used) provided by operating activities - discontinued operations | (325,096) | 115,016 |
Net cash flows (used) provided by operating activities | (184,630) | 297,127 |
Cash flows from financing activities: | ||
Issuance of notes, net of issuance costs | 296,374 | 542,043 |
Repayment of notes | (530,800) | (250,000) |
Borrowings (repayments) under accounts receivable securitization, net | (492,000) | (400,012) |
Borrowings (repayments) of bank and revolving debt, net | (168,386) | 412,253 |
Borrowings of term loans | 530,756 | |
Repayments of term loans | (511,358) | |
Repurchases of common stock | (124,598) | (334,177) |
Dividends paid on common stock | (66,477) | (66,944) |
Other, net | 15,838 | (12,028) |
Net cash flows used for financing activities - continuing operations | (1,050,651) | (108,865) |
Net cash flows provided by financing activities - discontinued operations | 3,447 | 36,227 |
Net cash flows used for financing activities | (1,047,204) | (72,638) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (107,960) | (106,776) |
Acquisitions of businesses, net of cash acquired (Note 2) | (801,164) | |
Other, net | 18,404 | 9,559 |
Net cash flows used for investing activities - continuing operations | (890,720) | (97,217) |
Net cash flows provided (used) for investing activities - discontinued operations | 2,235,384 | (25,092) |
Net cash flows provided (used) for investing activities | 1,344,664 | (122,309) |
Effect of currency exchange rate changes on cash and cash equivalents | (15,075) | 1,752 |
Cash and cash equivalents: | ||
Net change in cash and cash equivalents | 97,755 | 103,932 |
Cash and cash equivalents at beginning of period | 1,031,478 | 932,553 |
Cash and cash equivalents at end of period | $ 1,129,233 | $ 1,036,485 |
Basis of presentation and new a
Basis of presentation and new accounting pronouncements | 9 Months Ended |
Apr. 01, 2017 | |
Basis of presentation and new accounting pronouncements | |
Basis of presentation and new accounting pronouncements | 1. Basis of presentation and new In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc.’s and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income (loss) and cash flows. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 2, 2016. Certain reclassifications have been made in prior periods and the fiscal year to date current periods to conform to the current period presentation. Discontinued Operations The results of operations for Avnet’s Technology Solutions (“TS”) business, including all businesses subject to the completed TS sale, have been classified as discontinued operations for all periods presented in the consolidated statements of operations and the consolidated statements of cash flows. The assets and liabilities of TS prior to the completion of the sale were classified as held for sale in the consolidated balance sheets. See Note 3 for additional information. Fiscal year The Company operates on a “52/53 week” fiscal year and fiscal 2017 contains 52 weeks compared to 53 weeks in fiscal 2016. As a result, the first nine months of fiscal 2017 contained 39 weeks compared to the first nine months of fiscal 2016, which contained 40 weeks. New accounting pronouncements In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). The new guidance requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and allows only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be presented separately from the line item that includes the service cost and outside of any subtotal of operating income and the line item must be appropriately described. If a separate line item is not used, the line item used in the income statement to present the other components of net benefit cost must be disclosed. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that annual period, with early adoption permitted. The amendment is to be applied retrospectively. The new guidance primarily impacts the income statement presentation of net periodic benefit cost and the Company does not believe adoption of this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The amendments in ASU 2017-04 simplify the subsequent measurement of goodwill by eliminating Step Two from the goodwill impairment test. Under the new guidance, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU 2017-04 is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2019, with early adoption permitted. The Company has early adopted this standard during the third quarter of fiscal 2017, which did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”). This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Under this ASU, when substantially all of the fair value of gross assets acquired or disposed of is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new guidance also narrows the definition of the term outputs to be consistent with how it is described in Topic 606, Revenue from Contracts with Customers. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. A prospective approach should be applied to any transactions occurring within the period of adoption. The Company does not believe that ASU 2017-01 will have a material impact on its consolidated financial statements. In October 2016, the FASB (“FASB”) issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). The update amends accounting guidance for intra-entity transfers of assets other than inventory to require the recognition of income tax consequences when the transfer occurs. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. A modified retrospective approach should be applied. The Company is currently evaluating the impact of the adoption of ASU 2016-16 on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The update provides guidance for eight specific cash flow classification issues with respect to how certain cash receipts and cash payments are presented and classified within the statement of cash flows in an effort to reduce existing diversity in practice. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. ASU 2016-15 should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impacts of the adoption of ASU 2016-15 on its consolidated statements of cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The update requires a lessee to recognize assets and liabilities on the consolidated balance sheets for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The update will be effective for the Company in the first quarter of fiscal 2020, using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), as amended, to supersede nearly all-existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Application of the guidance in ASU 2014-09 may require more judgment and estimates within the revenue recognition process compared to existing GAAP. In July 2015, the FASB approved a one-year delay in the effective date of ASU 2014-09, which makes the effective date for the Company the first quarter of fiscal 2019. The Company may adopt the requirements of ASU 2014-09 using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) adoption with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the impact of the future adoption of ASU 2014-09 on its consolidated financial statements, including the method of adoption to be used. |
Acquisitions
Acquisitions | 9 Months Ended |
Apr. 01, 2017 | |
Acquisitions | |
Acquisitions | 2. Acquisitions Premier Farnell On October 17, 2016, the Company completed its acquisition of Premier Farnell Plc (“PF”), a global distributor of electronic components and related products delivering engineering solutions to the electronic system design community utilizing multi-channel sales and marketing resources. Management believes that the combined business of Avnet’s continuing operations and PF will create a unique electronic components distribution value proposition, which will expand Avnet’s digital footprint worldwide and allow the Company to reach engineers and makers earlier in the design cycle. The cash consideration paid for the acquisition was approximately $841 million, which consisted of £1.85 per share of PF common stock. Additionally, Avnet assumed $242.8 million of debt at fair value. The Company is integrating PF and the goodwill acquired into Avnet’s continuing operations. In connection with the acquisition of PF, the Company incurred certain acquisition related costs during the first nine months of fiscal 2017, including approximately $19.0 million of acquisition related professional fees and closing costs included within restructuring, integration and other expenses, and approximately $45.0 million of expenses within other income (expense), net for acquisition financing related fees including foreign currency economic hedging costs and bridge financing commitment fees. PF contributed approximately $19.0 million of income from continuing operations in the first nine months of fiscal 2017 since the date of acquisition. Preliminary allocation of purchase price The Company has not yet completed its evaluation and determination of certain assets and liabilities acquired, primarily (i) the final valuation of customer, technology and tradename related amortizable intangible assets acquired, (ii) the final assessment and valuation of certain assets acquired and liabilities assumed, including working capital, accrued liabilities, other asset and liabilities and property, plant and equipment, and (iii) the final assessment and valuation of certain income tax accounts. During the third quarter of fiscal 2017, the Company updated its estimated acquisition method values for assets acquired and liabilities assumed, the most significant of which resulted in an increase in goodwill of $30.1 million, a decrease in property, plant and equipment of $39.0 million, a decrease in other long-term liabilities of $6.4 million, a net increase in intangible assets of $6.6 million, and an increase in accounts payable, accrued liabilities and other current liabilities of $4.3 million. The Company expects the final valuations and assessments will be completed by the end of fiscal 2017, which may result in adjustments to the preliminary values included in the following table: Preliminary Acquisition Method Values (Thousands) Cash $ 46,354 Trade and other receivables, net 187,303 Inventories 334,681 Property, plant and equipment 56,265 Intangible assets 295,112 Total identifiable assets acquired $ 919,715 Accounts payable, accrued liabilities and other current liabilities $ 181,921 Short-term debt 242,814 Other long-term liabilities 150,508 Total identifiable liabilities acquired $ 575,243 Net identifiable assets acquired 344,472 Goodwill 496,848 Net assets acquired $ 841,320 Trade receivables of $160.4 million were recorded at preliminary estimated fair value amounts; however, preliminary adjustments to acquired amounts were not significant as book value approximated fair value due to the short-term nature of trade receivables. Approximately $10.0 million of goodwill associated with the PF acquisition is expected to be deductible for tax purposes. Pro forma and historical results Unaudited pro forma information is presented as if the acquisition of PF occurred at the beginning of fiscal 2016. The pro forma information presented below does not purport to present what actual results would have been had the acquisition in fact occurred at the beginning of fiscal 2016, nor does the information project results for any future period. Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands, except per share data) Pro forma sales (unaudited) $ 4,441,896 $ 4,435,214 $ 13,211,911 $ 13,787,519 Pro forma net income (unaudited) 271,771 144,216 477,060 446,943 Pro forma results from continuing operations above exclude any benefits that may result from the acquisition due to synergies derived from sales opportunities, the elimination of any duplicative costs and from lower interest costs. Pro forma results exclude restructuring and acquisition/divestiture related expenses incurred by PF in their historical results of operations and include amortization expense associated with identifiable intangible assets related to the Company’s acquisition of PF. Pro forma results also exclude interest expense and other income (expense), net related to acquisition/divestiture costs as well as any discrete income tax related expenses. Since the date of acquisition through the first nine months of fiscal 2017, PF generated sales of $620.2 million. During November 2016, the Company acquired Hackster, Inc. (“Hackster”), a start-up online community of engineers, makers and hobbyists. The purchase price of Hackster was not material to the Company’s consolidated financial statements. |
Discontinued operations
Discontinued operations | 9 Months Ended |
Apr. 01, 2017 | |
Discontinued Operations and Disposal Groups | |
Discontinued operations | 3. Discontinued operations and gain on sale In February 2017, the Company completed the sale of its TS business to Tech Data Corporation (the “Buyer”), for approximately $2.86 billion in a combination of $2.61 billion in cash including estimated closing adjustments not yet realized and 2.8 million shares of the Buyer valued at $247.2 million at closing. The TS business has been classified as a discontinued operation for all periods presented as the sale of the TS business represents a strategic shift to Avnet. In connection with the closing of the TS sale, the Company recognized an estimated gain on sale of discontinued operations, net of tax of $217.1 million. The final gain on sale could vary materially from the Company’s best estimate as of the third quarter of fiscal 2017 as determination of the final gain amount requires agreement with the Buyer related to final net assets delivered and the geographical allocation of the sales price, which is expected to occur by the first half of fiscal 2018. Included within the gain on sale is $181.5 million of expense reclassified out of accumulated comprehensive income primarily related to TS business cumulative translation adjustments. The Buyer shares received by the Company are recorded within “Marketable securities” on the Company’s Consolidated Balance Sheets. The Company has classified these shares as trading securities in accordance with ASC 320 due to management having the intent to trade the securities. During the three and nine months ended April 1, 2017, the Company recorded $14.3 million of unrealized gains on the shares due to changes in fair value between the closing date and April 1, 2017, which are recorded in “Other income (expense), net” on the Consolidated Statements of Operations using Level 1 quoted active market prices. The definitive sales agreement includes time based contractual restrictions from the closing date related to the Company’s sale of Buyer shares including a 6-month restriction for 50 percent of the shares and a 12-month restriction for the remaining 50 percent. Subsequent to the third quarter of fiscal 2017, the Company entered into economic hedges for the shares during the contractual restriction periods through the purchase of derivative financial instruments, which economically fixes the amount that will be realized upon the sale of the shares at approximately $247 million. In connection with the sale of the TS business, the Company entered into a Transition Services Agreement (“TSA”), pursuant to which the Buyer will pay the Company to provide certain information technology, distribution, facilities, finance and human resources related services for various periods of time depending upon the services not to exceed approximately two years from the closing date. Expenses incurred by the Company to provide such services under the TSA are classified within selling, general and administrative expenses and amounts billed to the Buyer to provide such services are classified as a reduction of such expenses. Financial results of the TS business through the closing date are presented as “Income from discontinued operations, net of tax” on the Consolidated Statements of Operations. The assets and liabilities of the TS business were presented as “Current assets held for sale”, “Non-current assets held for sale”, “Current liabilities held for sale” and “Non-current liabilities held for sale” on the July 2, 2016, Consolidated Balance Sheet. Summarized results of the TS business discontinued operations for the third quarters and nine months ended April 1, 2017, and April 2, 2016, are as follows: Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Sales $ 1,056,676 $ 2,092,755 $ 5,432,140 $ 7,220,839 Cost of sales 955,781 1,876,869 4,883,945 6,496,536 Gross profit 100,895 215,886 548,195 724,303 Selling, general and administrative expenses 105,622 176,974 430,003 534,443 Restructuring, integration and other (income) expenses (260) 7,318 7,280 27,897 Operating income (4,467) 31,594 110,912 161,963 Interest and other expense, net (13,662) (1,146) (24,292) (15,343) (Loss) income from discontinued operations before income taxes (18,129) 30,448 86,620 146,620 Income tax expense 17,108 14,781 49,949 55,752 (Loss) income from discontinued operations, net of taxes (35,237) $ 15,667 36,671 90,868 Gain on sale of discontinued operations, net of tax 217,088 — 217,088 — Net income from discontinued operations, net of tax $ 181,851 $ 15,667 $ 253,759 $ 90,868 Included within selling, general and administrative expenses of discontinued operations was $8.3 million and $10.7 million of corporate expenses specific to or benefiting the TS business for the third quarters ending April 1, 2017, and April 2, 2016, respectively, and $34.9 million and $38.1 million for the nine months ending April 1, 2017, and April 2, 2016, respectively. Corporate costs related to general overhead were not allocated to the TS business. Subsequent to the first quarter of fiscal 2017, depreciation and amortization of the TS business long-lived assets ceased due to the TS business being classified as held for sale. Summarized assets and liabilities of the TS business, classified as held for sale as of July 2, 2016, are as follows: July 2, 2016 (Thousands) Receivables, less allowances of $39,356 $ 2,205,213 Inventories 296,310 Prepaid and other current assets 59,948 Total current assets 2,561,471 Property, plant and equipment, net 159,449 Goodwill 659,368 Intangible assets, net 55,826 Other assets 24,424 Total assets $ 3,460,538 Accounts payable $ 1,643,004 Accrued expenses and other 161,225 Total current liabilities 1,804,229 Other Long-term liabilities 43,769 Total liabilities $ 1,847,998 |
Goodwill and long-lived assets
Goodwill and long-lived assets | 9 Months Ended |
Apr. 01, 2017 | |
Goodwill and long-lived assets | |
Goodwill and long-lived assets | 4. Goodwill and long-lived assets Goodwill The following table presents the change in goodwill since the end of fiscal 2016. All of the accumulated impairment was recognized in fiscal 2009. Avnet (Thousands) Gross goodwill $ 1,666,962 Accumulated impairment (1,045,110) Carrying value at July 2, 2016 621,852 Acquisitions 509,631 Adjustments — Foreign currency translation 9,495 Carrying value at April 1, 2017 $ 1,140,978 Gross goodwill $ 2,186,088 Accumulated impairment (1,045,110) Carrying value at April 1, 2017 $ 1,140,978 Intangible Assets The following table presents the Company’s acquired intangible assets at April 1, 2017, and July 2, 2016, respectively. April 1, 2017 July 2, 2016 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount Amortization Value (Thousands) Customer related $ 267,326 $ (61,858) $ 205,468 $ 47,980 $ (34,515) $ 13,465 Trade name 45,005 (4,516) 40,489 3,746 (2,718) 1,028 Technology and other 48,058 (8,625) 39,433 12,356 (4,278) 8,078 $ 360,389 $ (74,999) $ 285,390 $ 64,082 $ (41,511) $ 22,571 Intangible asset amortization expense from continuing operations was $22.4 million and $1.9 million for the third quarters of fiscal 2017 and 2016, respectively, and $34.2 million and $5.9 million for the first nine months of fiscal 2017 and 2016, respectively. Intangible assets have a weighted average remaining useful life of approximately 4 years. The following table presents the estimated future amortization expense for the remainder of fiscal 2017, the next five fiscal years and thereafter (in thousands): Fiscal Year Remainder of fiscal 2017 20,089 2018 74,215 2019 72,865 2020 71,145 2021 33,685 2022 10,197 Thereafter 3,194 Total $ 285,390 During the fourth quarter of fiscal 2017, the Company decided to implement a new global Enterprise Resource Planning (“ERP”). As a result of this decision, the estimated useful life of its ERP system in the Americas, which had a carrying value of approximately $170 million as of April 1, 2017, has been reduced to its estimated remaining useful life of 24 months. |
Debt
Debt | 9 Months Ended |
Apr. 01, 2017 | |
Debt | |
Debt | 5. Debt Short-term debt consists of the following (in thousands): April 1, 2017 July 2, 2016 April 1, 2017 July 2, 2016 Interest Rate Carrying Balance Bank credit facilities and other 1.92 % 4.62 % $ 32,574 $ 122,599 Accounts receivable securitization program — 0.93 % — 730,000 Notes due September 2016 — 6.63 % — 300,000 Short-term debt $ 32,574 $ 1,152,599 Bank credit facilities and other consists primarily of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the working capital requirements of the Company including its foreign operations. In connection with the PF acquisition, discussed further in Note 2, the Company assumed debt including private placement notes, which the Company planned to repay in connection with the acquisition. In December 2016 and January 2017, the Company paid $78.6 million and $152.2 million, respectively, to redeem the assumed private placement notes. The repayments were made with the proceeds from the issuance of $300 million 3.75% Notes due December 2021 discussed further below. Long-term debt consists of the following (in thousands): April 1, 2017 July 2, 2016 April 1, 2017 July 2, 2016 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program 1.28 % — $ 238,000 $ — Credit Facility — % 1.72 % — 150,000 Notes due: June 2020 5.88 % 5.88 % 300,000 300,000 December 2021 3.75 % — 300,000 — December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 Other long-term debt 1.36 % 1.92 % 602 1,551 Long-term debt before discount and debt issuance costs 1,738,602 1,351,551 Discount and debt issuance costs (14,368) (12,347) Long-term debt $ 1,724,234 $ 1,339,204 In December 2016, the Company issued $300.0 million of 3.75% Notes due December 2021 (the “3.75% Notes”). The Company received proceeds of $296.4 million from the offering, net of discounts and debt issuance costs. The 3.75% Notes rank equally in right of payment with all existing and future senior unsecured debt of Avnet and interest will be payable semi-annually each year on June 1 and December 1. In February 2017, in connection with the sale of the TS business, the Company amended and reduced the capacity of its accounts receivable securitization program (the “Program”) with a group of financial institutions to allow the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings up to a maximum of $400.0 million compared to $800.0 million before the amendment. The Program does not qualify for off balance sheet accounting treatment and any borrowings under the Program are recorded as debt in the consolidated balance sheets. Under the 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 $0.82 billion and $1.46 billion at April 1, 2017, and July 2, 2016, respectively. The Program contains certain covenants relating to the quality of the receivables sold. The Program also requires the Company to maintain certain minimum interest coverage and leverage ratios, which the Company was in compliance with as of April 1, 2017, and July 2, 2016. The Program has a term that expires in August 2018 and as a result is considered long-term debt as of April 1, 2017. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.40% with a facility fee of 0.40%. The Company has a five-year $1.25 billion senior unsecured revolving credit facility (the “Credit Facility”) with a syndicate of banks, consisting of revolving credit facilities and the issuance of up to $150.0 million of letters of credit, which expires in July 2019. Subject to certain conditions, the Credit Facility may be increased up to $1.5 billion. Under the Credit Facility, the Company may select from various interest rate options, currencies and maturities. The Credit Facility contains certain covenants including various limitations on debt incurrence, share repurchases, dividends, investments and capital expenditures. The Credit Facility also includes financial covenants requiring the Company to maintain minimum interest coverage and leverage ratios, which the Company was in compliance with as of April 1, 2017, and July 2, 2016. As of April 1, 2017, and July 2, 2016, there were $3.1 million and $5.6 million, respectively, in letters of credit issued under the Credit Facility. In October 2016, certain foreign subsidiaries of the Company (the “Borrowers”) borrowed €479 million under a Senior Unsecured Term Loan Credit Agreement (the “Term Loan”) entered into with a group of banks. The Term Loan had a maturity date of October 17, 2019. The proceeds from borrowings under the Term Loan were used to finance a portion of the cash consideration and any fees and expenses related to the Company’s acquisition of PF discussed further in Note 2. In March 2017, the Company repaid in full all outstanding amounts due under the Term Loan with a portion of the proceeds from the sale of the TS Business. As of April 1, 2017, the carrying value and fair value of the Company’s total debt was $1.76 billion and $1.81 billion, respectively. At July 2, 2016, the carrying value and fair value of the Company’s total debt was $2.49 billion and $2.59 billion, respectively. Fair value for the notes was estimated based upon quoted market prices and for other forms of debt fair value approximates carrying value due to the market based variable nature of the interest rates on those debt agreements. |
Derivative financial instrument
Derivative financial instruments | 9 Months Ended |
Apr. 01, 2017 | |
Derivative financial instruments | |
Derivative financial instruments | 6. Derivative financial instruments Many of the Company’s subsidiaries purchase and sell products in currencies other than their functional currencies. This subjects the Company to the risks associated with fluctuations in foreign currency exchange rates. The Company reduces this risk by utilizing natural hedging (e.g., offsetting receivables and payables in the same foreign currency) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign exchange contracts typically with maturities of less than sixty days (“economic hedges”). The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “other income (expense), net.” The fair value of forward foreign exchange contracts, which are based upon Level 2 criteria under the ASC 820 fair value hierarchy, are classified in the captions “other current assets” or “accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets as of April 1, 2017, and July 2, 2016. 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. The Company generally does not hedge its investments in its foreign operations. The Company does not enter into derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase from suppliers. The Company’s foreign operations transactions are denominated primarily in the following currencies: U.S. Dollar, Euro, British Pound, Canadian Dollar, Japanese Yen, Chinese Yuan, Taiwan Dollar and Mexican Peso. The Company also, to a lesser extent, has foreign operations transactions in other European and Asia/Pacific foreign currencies. The fair values of derivative financial instruments in the Company’s consolidated balance sheets are as follows: April 1, July 2, 2017 2016 (Thousands) Forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in: Other current assets $ 4,222 $ 9,681 Accrued expenses 3,036 6,369 The amounts recorded to other income (expense), net related to derivative financial instruments for economic hedges are as follows: Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Net derivative financial instrument gain (loss) $ 26 $ 2,358 $ (8,711) $ 569 Additionally, during the first nine months of fiscal 2017, there is approximately $35.0 million, of derivative financial instrument losses in other income (expenses), net, that are associated with foreign currency derivative financial instruments purchased to economically hedge the British Pound purchase price of the PF acquisition as discussed in Note 2. The Company’s outstanding economic hedges had average maturities of 59 days and 53 days as of April 1, 2017, and July 2, 2016, respectively. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Apr. 01, 2017 | |
Commitments and contingencies | |
Commitments and contingencies | 7. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in various lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations, including import/export and environmental matters. 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 for such matters due primarily to being in the early stages of the related proceedings and investigations. 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 one reporting period. As of April 1, 2017, the Company had aggregate estimated liabilities of $11.7 million, classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates. |
Income taxes
Income taxes | 9 Months Ended |
Apr. 01, 2017 | |
Income taxes | |
Income taxes | 8. Income taxes The Company’s effective tax rate on its income before income taxes from continuing operations was 15.3% in the third quarter of fiscal 2017 as compared with 17.1% in the third quarter of fiscal 2016. During the third quarter of fiscal 2017, the Company’s effective tax rate was favorably impacted primarily by (i) the mix of income in lower tax jurisdictions and (ii) the release of reserves and other discrete tax benefits. During the third quarter of fiscal 2016, the Company’s effective tax rate was favorably impacted primarily by (i) the mix of income in lower tax jurisdictions and (ii) the release of reserves related to the expiration of statutes of limitation. For the first nine months of fiscal 2017 and 2016, the Company’s effective tax rate was 25.7% and 18.0%, respectively. The effective tax rate for the first nine months of fiscal 2017 was favorably impacted primarily by (i) the mix of income in lower tax jurisdictions, partially offset by (ii) net increases to valuation allowances against deferred tax assets that were deemed unrealizable and (iii) the impact of non-deductible acquisition related expenses. The effective tax rate for the first nine months of fiscal 2016 was favorably impacted primarily by (i) the mix of income in lower tax jurisdictions, (ii) the release of valuation allowances against deferred tax assets that were deemed to be realizable and (iii) the release of reserves related to audit settlements and the expiration of statutes of limitation. |
Pension and retirement plan
Pension and retirement plan | 9 Months Ended |
Apr. 01, 2017 | |
Pension and retirement plan | |
Pension and retirement plans | 9. Pension plan The Company has a noncontributory defined benefit pension plan (the “Plan”) for which the components of net periodic pension costs were as follows (includes amounts related to discontinued operations): Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Service cost $ 7,406 $ 9,935 $ 22,217 $ 30,356 Interest cost 3,952 5,328 11,856 15,984 Expected return on plan assets (10,840) (10,071) (32,520) (30,213) Amortization of prior service credits 3,610 3,183 10,830 9,549 Recognized net actuarial loss (394) (393) (1,180) (1,179) Net periodic pension cost $ 3,734 $ 7,982 $ 11,203 $ 24,497 The Company made contributions to the Plan of $30.0 million during the first nine months of fiscal 2017. The Company expects to make an additional contribution to the Plan of $3.8 million in the fourth quarter of fiscal 2017. The Plan meets the definition of a defined benefit plan and as a result, the Company must apply ASC 715 pension accounting to the Plan. The Plan itself, however, is a cash balance plan that is similar in nature to a defined contribution plan in that a participant’s benefit is defined in terms of a stated account balance. A cash balance plan provides the Company with the benefit of applying any earnings on the Plan’s investments beyond the fixed return provided to participants, toward the Company’s future cash funding obligations. Amounts reclassified out of accumulated other comprehensive income (loss), net of tax, to operating expenses during the third quarters of fiscal 2017 and fiscal 2016 were not material and substantially all related to net periodic pension costs including recognition of actuarial losses and amortization of prior service credits. In connection with the acquisition of PF discussed further in Note 2, the Company acquired closed defined benefit plans in both the U.S. and U.K. The pension expense recognized during the third quarter of fiscal 2017 for these frozen plans was not material. |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Apr. 01, 2017 | |
Shareholders' equity | |
Shareholders' equity | 10. Shareholders’ equity Share repurchase program In February 2017, the Company’s Board of Directors authorized a $500.0 million increase in the Company’s existing share repurchase program. During the third quarter and first nine months of fiscal 2017, the Company incurred commitments to repurchase 3.1 million shares under this program for a total cost of $140.1 million. Common stock dividend In February 2017, the Company’s Board of Directors approved a dividend of $0.18 per common share and dividend payments of $23.1 million were made in March 2017. |
Earnings per share
Earnings per share | 9 Months Ended |
Apr. 01, 2017 | |
Earnings per share | |
Earnings per share | 11. Earnings per share Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands, except per share data) Numerator: Income from continuing operations $ 89,920 $ 107,792 $ 190,073 $ 318,857 Income from discontinued operations 181,851 15,667 253,759 90,868 Net income $ 271,771 $ 123,459 $ 443,832 $ 409,725 Denominator: Weighted average common shares for basic earnings per share 128,487 129,811 127,973 131,834 Net effect of dilutive stock options, restricted stock units and performance share units 945 1,839 1,874 2,464 Weighted average common shares for diluted earnings per share 129,432 131,650 129,847 134,298 Basic earnings per share - continuing operations $ 0.70 $ 0.83 $ 1.48 $ 2.42 Basic earnings per share - discontinued operations 1.42 0.12 1.98 0.69 Basic earnings per share $ 2.12 $ 0.95 $ 3.46 $ 3.11 Diluted earnings per share - continuing operations $ 0.69 $ 0.82 $ 1.46 $ 2.37 Diluted earnings per share - discontinued operations 1.41 0.12 1.95 0.68 Diluted earnings per share $ 2.10 $ 0.94 $ 3.41 $ 3.05 Stock options excluded from earnings per share calculation due to anti-dilutive effect 92 422 98 378 See Note 3 for additional information on income from discontinued operations. |
Additional cash flow informatio
Additional cash flow information | 9 Months Ended |
Apr. 01, 2017 | |
Additional cash flow information | |
Additional cash flow information | 12. Additional cash flow information Interest and income taxes paid were as follows: Nine Months Ended April 1, April 2, 2017 2016 (Thousands) Interest $ 74,165 $ 80,313 Income taxes $ 106,659 $ 85,323 . Non-cash investing activities related to purchases of property, plant and equipment that have been accrued, but not paid for, were $16.8 million and $11.6 million as of April 1, 2017, and April 2, 2016, respectively. Additionally, the Company received 2.8 million shares of Buyer common stock from the sale of the TS business valued at $247.2 million at the time the sale was completed. Non-cash financing activities of $15.7 million related to share repurchases that have been accrued, but not paid for as of April 1, 2017. Included in cash and cash equivalents from continuing operations as of April 1, 2017, and July 2, 2016, was $565.2 million and $8.7 million, respectively, of cash equivalents, which was primarily comprised of investment grade money market funds and overnight time deposits. |
Segment information
Segment information | 9 Months Ended |
Apr. 01, 2017 | |
Segment information | |
Segment information | 13. Segment information Prior to the sale of the TS business, the Company’s reportable segments were the Electronics Marketing (“Avnet EM”) and Technology Solutions (“TS”) operating groups. As a result of the sale of the TS business, as of April 1, 2017, the Company has only one remaining segment, Avnet EM. Avnet EM, including the recently acquired PF, markets and sells semiconductors and interconnect, passive and electromechanical devices and integrated products to a diverse customer base serving many end-markets. During the last fiscal month of the third quarter of fiscal 2017, the Company completed the sale of the TS reportable segment. Additionally, Avnet’s continuing operations is undergoing organizational and executive leadership changes that were still ongoing at the end of the third quarter of fiscal 2017. After the Company completes its organizational and executive leadership structure, Avnet’s reportable segments from continuing operations may also change. As a result, the Company has not changed its reportable segments from continuing operations or its historical measures of segment results and profitability as of April 1, 2017 Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Sales, by geographic area: Americas (1) $ 1,328,592 $ 1,227,243 $ 3,831,706 $ 3,696,291 EMEA (2) 1,615,903 1,330,751 4,261,891 3,809,970 Asia/Pacific (3) 1,497,401 1,523,967 4,739,962 5,265,367 Sales $ 4,441,896 $ 4,081,961 $ 12,833,559 $ 12,771,628 (1) Includes sales from the United States of $1.23 billion and $1.15 billion for the third quarters ended April 1, 2017, and April 2, 2016, respectively. Includes sales from the United States of $3.56 billion and $3.46 billion for the first nine months of fiscal 2017 and 2016, respectively. (2) Includes sales from Germany and the United Kingdom of $616.3 million and $179.1 million, respectively, for the third quarter ended April 1, 2017, and $1.66 billion and $415.0 million, respectively, for the first nine months of fiscal 2017. Includes sales from Germany and the United Kingdom of $539.6 million and $90.1 million, respectively, for the third quarter ended April 2, 2016, and $1.60 billion and $285.6 million, respectively, for the first nine months of fiscal 2016. (3) Includes sales from China (including Hong Kong) and Taiwan of $562.9 million and $486.9 million, respectively, for the third quarter ended April 1, 2017, and $1.80 billion and $1.67 billion, respectively, for the first nine months of fiscal 2017. Includes sales from China (including Hong Kong) and Taiwan of $563.3 million and $586.6 million, respectively, for the third quarter ended April 2, 2016, and $1.84 billion and $2.27 billion, respectively, for the first nine months of fiscal 2016. April 1, July 2, 2017 2016 (Thousands) Property, plant, and equipment, net, by geographic area: Americas (1) $ 314,818 $ 303,252 EMEA (2) 173,823 129,612 Asia/Pacific 37,384 20,345 Property, plant, and equipment, net $ 526,025 $ 453,209 (1) Includes property, plant and equipment, net, of $336.5 million and $297.1 million as of April 1, 2017, and July 2, 2016, respectively, in the United States. (2) Includes property, plant and equipment, net, of $78.2 million and $37.6 million in Germany and Belgium, respectively, as of April 1, 2017, and $72.5 million and $40.0 million in Germany and Belgium, respectively, as of July 2, 2016. |
Restructuring expenses
Restructuring expenses | 9 Months Ended |
Apr. 01, 2017 | |
Restructuring expenses | |
Restructuring expenses | 14. Restructuring expenses Fiscal 2017 During fiscal 2017, the Company took certain restructuring actions in an effort to integrate acquisitions and reduce future operating expenses. Restructuring expenses are included as a component of restructuring, integration and other expenses in the consolidated statements of operations. The activity related to the restructuring liabilities from continuing operations established during fiscal 2017 is presented in the following table: Facility Asset Severance Exit Costs Other Impairments Total (Thousands) Fiscal 2017 restructuring expenses $ 25,185 $ 312 $ 1,500 $ 3,478 $ 30,475 Cash payments (10,585) (124) (1,500) — (12,209) Non-cash amounts — — — (3,478) (3,478) Other, principally foreign currency translation (36) — — — (36) Balance at April 1, 2017 $ 14,564 $ 188 $ — $ — $ 14,752 Severance expense recorded in the first nine months of fiscal 2017 related to the reduction, or planned reduction, of over 150 employees, primarily in executive management, operations, sales and business support functions. Facility exit costs primarily consist of liabilities for remaining lease obligations for exited facilities. Asset impairments relate to the impairment (if any) of property, plant and equipment as a result of the underlying restructuring activities. Other restructuring costs (if any) related primarily to other miscellaneous restructuring and exit costs. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2017. Fiscal 2016 and prior During fiscal 2016, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during the first nine months of fiscal 2017 related to the remaining restructuring liabilities from continuing operations established during fiscal 2016: Facility Severance Exit Costs Other Total (Thousands) Balance at July 2, 2016 $ 9,854 $ 1,130 $ 3 $ 10,987 Cash payments (5,511) (276) (3) (5,790) Changes in estimates, net (1,031) (270) — (1,301) Non-cash amounts — — — — Other, principally foreign currency translation (89) (14) — (103) Balance at April 1, 2017 $ 3,223 $ 570 $ — $ 3,793 The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2017. As of July 2, 2016 and April 1, 2017, there were $ 4.5 million and $3.3 million, respectively of restructuring liabilities remaining related to restructuring actions from continuing operations taken in fiscal years 2015 and prior, the majority of which relates to facility exit costs, which are expected to be paid by the end of fiscal 2017. |
Basis of presentation and new21
Basis of presentation and new accounting pronouncements (Policies) | 9 Months Ended |
Apr. 01, 2017 | |
Basis of presentation and new accounting pronouncements | |
Basis of presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc.’s and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income (loss) and cash flows. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 2, 2016. Certain reclassifications have been made in prior periods and the fiscal year to date current periods to conform to the current period presentation. |
Discontinued Operations | Discontinued Operations The results of operations for Avnet’s Technology Solutions (“TS”) business, including all businesses subject to the completed TS sale, have been classified as discontinued operations for all periods presented in the consolidated statements of operations and the consolidated statements of cash flows. The assets and liabilities of TS prior to the completion of the sale were classified as held for sale in the consolidated balance sheets. See Note 3 for additional information. |
Fiscal year | Fiscal year The Company operates on a “52/53 week” fiscal year and fiscal 2017 contains 52 weeks compared to 53 weeks in fiscal 2016. As a result, the first nine months of fiscal 2017 contained 39 weeks compared to the first nine months of fiscal 2016, which contained 40 weeks. |
New accounting pronouncements | New accounting pronouncements In March 2017, the Financial Accounting Standards Board issued Accounting Standards Update 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (“ASU 2017-07”). The new guidance requires the service cost component of net periodic benefit cost to be presented in the same income statement line item as other employee compensation costs arising from services rendered during the period and allows only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be presented separately from the line item that includes the service cost and outside of any subtotal of operating income and the line item must be appropriately described. If a separate line item is not used, the line item used in the income statement to present the other components of net benefit cost must be disclosed. The guidance is effective for fiscal years beginning after December 15, 2017, and interim periods within that annual period, with early adoption permitted. The amendment is to be applied retrospectively. The new guidance primarily impacts the income statement presentation of net periodic benefit cost and the Company does not believe adoption of this standard will have a material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). The amendments in ASU 2017-04 simplify the subsequent measurement of goodwill by eliminating Step Two from the goodwill impairment test. Under the new guidance, an entity performs its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognizes an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the carrying amount of goodwill allocated to the reporting unit. Additionally, an entity should consider income tax effects from any tax-deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. Entities will be required to disclose the amount of goodwill at reporting units with zero or negative carrying amounts. ASU 2017-04 is effective for annual reporting periods, including interim periods within those periods, beginning after December 15, 2019, with early adoption permitted. The Company has early adopted this standard during the third quarter of fiscal 2017, which did not have a material impact on its consolidated financial statements. In January 2017, the FASB issued Accounting Standards Update 2017-01, Clarifying the Definition of a Business (“ASU 2017-01”). This update clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. Under this ASU, when substantially all of the fair value of gross assets acquired or disposed of is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new guidance also narrows the definition of the term outputs to be consistent with how it is described in Topic 606, Revenue from Contracts with Customers. ASU 2017-01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. A prospective approach should be applied to any transactions occurring within the period of adoption. The Company does not believe that ASU 2017-01 will have a material impact on its consolidated financial statements. In October 2016, the FASB (“FASB”) issued Accounting Standards Update No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory (“ASU 2016-16”). The update amends accounting guidance for intra-entity transfers of assets other than inventory to require the recognition of income tax consequences when the transfer occurs. The update is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. A modified retrospective approach should be applied. The Company is currently evaluating the impact of the adoption of ASU 2016-16 on its consolidated financial statements. In August 2016, the FASB issued Accounting Standards Update No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (“ASU 2016-15”). The update provides guidance for eight specific cash flow classification issues with respect to how certain cash receipts and cash payments are presented and classified within the statement of cash flows in an effort to reduce existing diversity in practice. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. ASU 2016-15 should be applied using a retrospective transition method to each period presented. The Company is currently evaluating the impacts of the adoption of ASU 2016-15 on its consolidated statements of cash flows. In February 2016, the FASB issued Accounting Standards Update No. 2016-02, Leases (Topic 842) (“ASU 2016-02”). The update requires a lessee to recognize assets and liabilities on the consolidated balance sheets for leases with lease terms greater than 12 months. ASU 2016-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted. The update will be effective for the Company in the first quarter of fiscal 2020, using a modified retrospective approach. The Company is currently evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), as amended, to supersede nearly all-existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Application of the guidance in ASU 2014-09 may require more judgment and estimates within the revenue recognition process compared to existing GAAP. In July 2015, the FASB approved a one-year delay in the effective date of ASU 2014-09, which makes the effective date for the Company the first quarter of fiscal 2019. The Company may adopt the requirements of ASU 2014-09 using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) adoption with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the impact of the future adoption of ASU 2014-09 on its consolidated financial statements, including the method of adoption to be used. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Acquisitions | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Preliminary Acquisition Method Values (Thousands) Cash $ 46,354 Trade and other receivables, net 187,303 Inventories 334,681 Property, plant and equipment 56,265 Intangible assets 295,112 Total identifiable assets acquired $ 919,715 Accounts payable, accrued liabilities and other current liabilities $ 181,921 Short-term debt 242,814 Other long-term liabilities 150,508 Total identifiable liabilities acquired $ 575,243 Net identifiable assets acquired 344,472 Goodwill 496,848 Net assets acquired $ 841,320 |
Schedule of pro forma and historical results | Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands, except per share data) Pro forma sales (unaudited) $ 4,441,896 $ 4,435,214 $ 13,211,911 $ 13,787,519 Pro forma net income (unaudited) 271,771 144,216 477,060 446,943 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Discontinued Operations and Disposal Groups | |
Schedule of assets and liabilities classified as held for sale | July 2, 2016 (Thousands) Receivables, less allowances of $39,356 $ 2,205,213 Inventories 296,310 Prepaid and other current assets 59,948 Total current assets 2,561,471 Property, plant and equipment, net 159,449 Goodwill 659,368 Intangible assets, net 55,826 Other assets 24,424 Total assets $ 3,460,538 Accounts payable $ 1,643,004 Accrued expenses and other 161,225 Total current liabilities 1,804,229 Other Long-term liabilities 43,769 Total liabilities $ 1,847,998 |
Schedule of summarized results of discontinued operations | Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Sales $ 1,056,676 $ 2,092,755 $ 5,432,140 $ 7,220,839 Cost of sales 955,781 1,876,869 4,883,945 6,496,536 Gross profit 100,895 215,886 548,195 724,303 Selling, general and administrative expenses 105,622 176,974 430,003 534,443 Restructuring, integration and other (income) expenses (260) 7,318 7,280 27,897 Operating income (4,467) 31,594 110,912 161,963 Interest and other expense, net (13,662) (1,146) (24,292) (15,343) (Loss) income from discontinued operations before income taxes (18,129) 30,448 86,620 146,620 Income tax expense 17,108 14,781 49,949 55,752 (Loss) income from discontinued operations, net of taxes (35,237) $ 15,667 36,671 90,868 Gain on sale of discontinued operations, net of tax 217,088 — 217,088 — Net income from discontinued operations, net of tax $ 181,851 $ 15,667 $ 253,759 $ 90,868 |
Goodwill and long-lived assets
Goodwill and long-lived assets (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Goodwill and long-lived assets | |
Change in goodwill balances by reportable segment | Avnet (Thousands) Gross goodwill $ 1,666,962 Accumulated impairment (1,045,110) Carrying value at July 2, 2016 621,852 Acquisitions 509,631 Adjustments — Foreign currency translation 9,495 Carrying value at April 1, 2017 $ 1,140,978 Gross goodwill $ 2,186,088 Accumulated impairment (1,045,110) Carrying value at April 1, 2017 $ 1,140,978 |
Company's identifiable acquired intangible assets | April 1, 2017 July 2, 2016 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount Amortization Value (Thousands) Customer related $ 267,326 $ (61,858) $ 205,468 $ 47,980 $ (34,515) $ 13,465 Trade name 45,005 (4,516) 40,489 3,746 (2,718) 1,028 Technology and other 48,058 (8,625) 39,433 12,356 (4,278) 8,078 $ 360,389 $ (74,999) $ 285,390 $ 64,082 $ (41,511) $ 22,571 |
Estimated future amortization expense | The following table presents the estimated future amortization expense for the remainder of fiscal 2017, the next five fiscal years and thereafter (in thousands): Fiscal Year Remainder of fiscal 2017 20,089 2018 74,215 2019 72,865 2020 71,145 2021 33,685 2022 10,197 Thereafter 3,194 Total $ 285,390 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Debt | |
Short-term debt | Short-term debt consists of the following (in thousands): April 1, 2017 July 2, 2016 April 1, 2017 July 2, 2016 Interest Rate Carrying Balance Bank credit facilities and other 1.92 % 4.62 % $ 32,574 $ 122,599 Accounts receivable securitization program — 0.93 % — 730,000 Notes due September 2016 — 6.63 % — 300,000 Short-term debt $ 32,574 $ 1,152,599 |
Long-term debt | Long-term debt consists of the following (in thousands): April 1, 2017 July 2, 2016 April 1, 2017 July 2, 2016 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program 1.28 % — $ 238,000 $ — Credit Facility — % 1.72 % — 150,000 Notes due: June 2020 5.88 % 5.88 % 300,000 300,000 December 2021 3.75 % — 300,000 — December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 Other long-term debt 1.36 % 1.92 % 602 1,551 Long-term debt before discount and debt issuance costs 1,738,602 1,351,551 Discount and debt issuance costs (14,368) (12,347) Long-term debt $ 1,724,234 $ 1,339,204 |
Derivative financial instrume26
Derivative financial instruments (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Derivative financial instruments | |
Schedule of derivative instruments in the balance sheet | April 1, July 2, 2017 2016 (Thousands) Forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in: Other current assets $ 4,222 $ 9,681 Accrued expenses 3,036 6,369 |
Schedule of gain (loss) on derivatives | Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Net derivative financial instrument gain (loss) $ 26 $ 2,358 $ (8,711) $ 569 |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Components of net periodic pension costs | Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Service cost $ 7,406 $ 9,935 $ 22,217 $ 30,356 Interest cost 3,952 5,328 11,856 15,984 Expected return on plan assets (10,840) (10,071) (32,520) (30,213) Amortization of prior service credits 3,610 3,183 10,830 9,549 Recognized net actuarial loss (394) (393) (1,180) (1,179) Net periodic pension cost $ 3,734 $ 7,982 $ 11,203 $ 24,497 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Earnings per share | |
Basic and diluted earnings per share calculation | Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands, except per share data) Numerator: Income from continuing operations $ 89,920 $ 107,792 $ 190,073 $ 318,857 Income from discontinued operations 181,851 15,667 253,759 90,868 Net income $ 271,771 $ 123,459 $ 443,832 $ 409,725 Denominator: Weighted average common shares for basic earnings per share 128,487 129,811 127,973 131,834 Net effect of dilutive stock options, restricted stock units and performance share units 945 1,839 1,874 2,464 Weighted average common shares for diluted earnings per share 129,432 131,650 129,847 134,298 Basic earnings per share - continuing operations $ 0.70 $ 0.83 $ 1.48 $ 2.42 Basic earnings per share - discontinued operations 1.42 0.12 1.98 0.69 Basic earnings per share $ 2.12 $ 0.95 $ 3.46 $ 3.11 Diluted earnings per share - continuing operations $ 0.69 $ 0.82 $ 1.46 $ 2.37 Diluted earnings per share - discontinued operations 1.41 0.12 1.95 0.68 Diluted earnings per share $ 2.10 $ 0.94 $ 3.41 $ 3.05 Stock options excluded from earnings per share calculation due to anti-dilutive effect 92 422 98 378 |
Additional cash flow informat29
Additional cash flow information (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Additional cash flow information | |
Interest and income taxes paid | Nine Months Ended April 1, April 2, 2017 2016 (Thousands) Interest $ 74,165 $ 80,313 Income taxes $ 106,659 $ 85,323 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Segment information | |
Table of the Company's segments and the related financial information for each | Third Quarters Ended Nine Months Ended April 1, April 2, April 1, April 2, 2017 2016 2017 2016 (Thousands) Sales, by geographic area: Americas (1) $ 1,328,592 $ 1,227,243 $ 3,831,706 $ 3,696,291 EMEA (2) 1,615,903 1,330,751 4,261,891 3,809,970 Asia/Pacific (3) 1,497,401 1,523,967 4,739,962 5,265,367 Sales $ 4,441,896 $ 4,081,961 $ 12,833,559 $ 12,771,628 (1) Includes sales from the United States of $1.23 billion and $1.15 billion for the third quarters ended April 1, 2017, and April 2, 2016, respectively. Includes sales from the United States of $3.56 billion and $3.46 billion for the first nine months of fiscal 2017 and 2016, respectively. (2) Includes sales from Germany and the United Kingdom of $616.3 million and $179.1 million, respectively, for the third quarter ended April 1, 2017, and $1.66 billion and $415.0 million, respectively, for the first nine months of fiscal 2017. Includes sales from Germany and the United Kingdom of $539.6 million and $90.1 million, respectively, for the third quarter ended April 2, 2016, and $1.60 billion and $285.6 million, respectively, for the first nine months of fiscal 2016. (3) Includes sales from China (including Hong Kong) and Taiwan of $562.9 million and $486.9 million, respectively, for the third quarter ended April 1, 2017, and $1.80 billion and $1.67 billion, respectively, for the first nine months of fiscal 2017. Includes sales from China (including Hong Kong) and Taiwan of $563.3 million and $586.6 million, respectively, for the third quarter ended April 2, 2016, and $1.84 billion and $2.27 billion, respectively, for the first nine months of fiscal 2016. |
Table of Assets by reportable segment and long-lived assets by geographic area | April 1, July 2, 2017 2016 (Thousands) Property, plant, and equipment, net, by geographic area: Americas (1) $ 314,818 $ 303,252 EMEA (2) 173,823 129,612 Asia/Pacific 37,384 20,345 Property, plant, and equipment, net $ 526,025 $ 453,209 (1) Includes property, plant and equipment, net, of $336.5 million and $297.1 million as of April 1, 2017, and July 2, 2016, respectively, in the United States. (2) Includes property, plant and equipment, net, of $78.2 million and $37.6 million in Germany and Belgium, respectively, as of April 1, 2017, and $72.5 million and $40.0 million in Germany and Belgium, respectively, as of July 2, 2016. |
Restructuring expenses (Tables)
Restructuring expenses (Tables) | 9 Months Ended |
Apr. 01, 2017 | |
Fiscal Year 2017 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility Asset Severance Exit Costs Other Impairments Total (Thousands) Fiscal 2017 restructuring expenses $ 25,185 $ 312 $ 1,500 $ 3,478 $ 30,475 Cash payments (10,585) (124) (1,500) — (12,209) Non-cash amounts — — — (3,478) (3,478) Other, principally foreign currency translation (36) — — — (36) Balance at April 1, 2017 $ 14,564 $ 188 $ — $ — $ 14,752 |
Fiscal Year 2016 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility Severance Exit Costs Other Total (Thousands) Balance at July 2, 2016 $ 9,854 $ 1,130 $ 3 $ 10,987 Cash payments (5,511) (276) (3) (5,790) Changes in estimates, net (1,031) (270) — (1,301) Non-cash amounts — — — — Other, principally foreign currency translation (89) (14) — (103) Balance at April 1, 2017 $ 3,223 $ 570 $ — $ 3,793 |
Acquisitions (PF Acquisition) (
Acquisitions (PF Acquisition) (Details) $ in Thousands | Oct. 17, 2016USD ($) | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Oct. 17, 2016£ / shares | Oct. 17, 2016USD ($) | Jul. 02, 2016USD ($) |
Business Acquisition [Line Items] | ||||||||
Operating income | $ 114,283 | $ 150,024 | $ 368,027 | $ 452,732 | ||||
Assets Acquired and Liabilities Assumed | ||||||||
Goodwill | 1,140,978 | 1,140,978 | $ 621,852 | |||||
PF | ||||||||
Business Acquisition [Line Items] | ||||||||
Business acquisition revenue | 620,200 | |||||||
Cash consideration paid | $ 841,000 | |||||||
Business Acquisition, Share Price | £ / shares | £ 1.85 | |||||||
debt assumed | $ 242,800 | |||||||
Operating income | 19,000 | |||||||
Allocation of purchase price adjustment to goodwill | 30,100 | |||||||
Allocation of pruchase price adjustment to property, plant and equipment | (39,000) | |||||||
Allocation of purchase price adjustment to other long-term liabilities | (6,400) | |||||||
Allocation of purchase price adjustment to intangibles | 6,600 | |||||||
Allocation of purchase price adjustment to accounts payable, accrued liabilities and other current liabilities | $ 4,300 | |||||||
Assets Acquired and Liabilities Assumed | ||||||||
Cash | 46,354 | |||||||
Trade and other receivable, net | 187,303 | |||||||
Inventories | 334,681 | |||||||
Property, plant and equipment | 56,265 | |||||||
Intangible assets | 295,112 | |||||||
Total identifiable assets acquired | 919,715 | |||||||
Accounts payable, accrued liabilities and other current liabilities | 181,921 | |||||||
Short-term debt | 242,814 | |||||||
Other long-term liabilities | 150,508 | |||||||
Total identifiable liabilities assumed | (575,243) | |||||||
Net identifiable assets acquired | 344,472 | |||||||
Goodwill | 496,848 | |||||||
Net assets acquired | 841,320 | |||||||
Trade receivables | 160,400 | |||||||
Goodwill acquired expected to be tax deductible | $ 10,000 | |||||||
PF | Restructuring Integration And Other Expenses | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition costs | 19,000 | |||||||
PF | Foreign Currency Economic Hedging Costs | ||||||||
Business Acquisition [Line Items] | ||||||||
Acquisition costs | $ 45,000 |
Acquisitions (PF Acquisition Pr
Acquisitions (PF Acquisition Pro Forma) (Details) - PF - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Pro Forma Results For Years Ended | ||||
Pro forma sales (unaudited) | $ 4,441,896 | $ 4,435,214 | $ 13,211,911 | $ 13,787,519 |
Pro forma net income (unaudited) | $ 271,771 | $ 144,216 | $ 477,060 | $ 446,943 |
Discontinued Operations - Consi
Discontinued Operations - Consideration (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended |
Feb. 25, 2017 | Apr. 01, 2017 | Apr. 01, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operation | $ 217,088 | $ 217,088 | |
Gain on sale reclassified out of accumulated comprehensive income | (181,465) | (181,465) | |
Disposal Group, Held-for-sale, Not Discontinued Operations | TS Business | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration in sale of business | $ 2,860,000 | ||
Cash consideration in sale of business | $ 2,610,000 | ||
Shares consideration in sale of business | 2.8 | ||
Value of shares received as consideration in sale of business | $ 247,200 | ||
Gain on sale of discontinued operation | 217,088 | 217,088 | |
First trading securities sales restriction (in months) | 6 months | ||
Sales restriction percentage | 50.00% | ||
Second trading securities sales restriction (in months) | 12 months | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | TS Business | Other Operating Income (Expense) | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Trading Securities, Unrealized Holding Gain | $ 14,300 | $ 14,300 |
Discontinued Operations - Econo
Discontinued Operations - Economic Hedge (Details) - USD ($) $ in Millions | 1 Months Ended | |
Feb. 25, 2017 | Apr. 03, 2017 | |
Maximum | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Business sale length of contract for certain services | 2 years | |
Equity Contract | Designated as Hedging Instrument | Fair Value Hedging | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Notional Amount | $ 247 |
Discontinued Operations - Opera
Discontinued Operations - Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income from discontinued operations, net of tax | $ (35,237) | $ 15,667 | $ 36,671 | $ 90,868 |
Gain on sale of discontinued operations, net of tax | 217,088 | 217,088 | ||
Net income from discontinued operations | 181,851 | 15,667 | 253,759 | 90,868 |
Disposal Group, Held-for-sale, Not Discontinued Operations | TS Business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Revenues discontinued operations | 1,056,676 | 2,092,755 | 5,432,140 | 7,220,839 |
Cost of sales | 955,781 | 1,876,869 | 4,883,945 | 6,496,536 |
Gross profit | 100,895 | 215,886 | 548,195 | 724,303 |
Selling, general and administrative expenses | 105,622 | 176,974 | 430,003 | 534,443 |
Restructuring, integration and other (income) expenses | (260) | 7,318 | 7,280 | 27,897 |
Operating income | (4,467) | 31,594 | 110,912 | 161,963 |
Interest expense, net | (13,662) | (1,146) | (24,292) | (15,343) |
(Loss) income from discontinued operations before income taxes | (18,129) | 30,448 | 86,620 | 146,620 |
Income tax expense discontinued operations | 17,108 | 14,781 | 49,949 | 55,752 |
(Loss) income from discontinued operations, net of tax | (35,237) | 15,667 | 36,671 | 90,868 |
Gain on sale of discontinued operations, net of tax | 217,088 | 217,088 | ||
Net income from discontinued operations | 181,851 | 15,667 | 253,759 | 90,868 |
Disposal Group, Held-for-sale, Not Discontinued Operations | TS Business | Selling, General and Administrative Expenses | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Corporate expenses | $ 8,300 | $ 10,700 | $ 34,900 | $ 38,100 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities (Details) $ in Thousands | Jul. 02, 2016USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Total current assets | $ 2,561,471 |
Total current liabilities | 1,804,229 |
Disposal Group, Held-for-sale, Not Discontinued Operations | TS Business | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Receivables, less allowances of $39,356 | 2,205,213 |
Allowance for doubtful accounts receivable | 39,356 |
Inventories | 296,310 |
Prepaid and other current assets | 59,948 |
Total current assets | 2,561,471 |
Property, plant and equipment, net | 159,449 |
Goodwill | 659,368 |
Intangible assets, net | 55,826 |
Other assets | 24,424 |
Total assets | 3,460,538 |
Accounts payable | 1,643,004 |
Accrued expenses and other | 161,225 |
Total current liabilities | 1,804,229 |
Other long-term liabilities | 43,769 |
Total liabilities | $ 1,847,998 |
Goodwill and long-lived asset38
Goodwill and long-lived assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 01, 2017 | Jul. 02, 2016 | |
Carrying amount of goodwill, by reportable segment | ||
Carrying value | $ 621,852 | |
Carrying value | 1,140,978 | |
Avnet Electronics Marketing | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 621,852 | |
Acquisitions | 509,631 | |
Foreign currency translation | 9,495 | |
Carrying value | 1,140,978 | |
Gross Goodwill | 2,186,088 | $ 1,666,962 |
Accumulated Impairment | $ (1,045,110) | $ (1,045,110) |
Goodwill and long-lived asset39
Goodwill and long-lived assets Intangible Assets (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Jul. 02, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | $ 360,389 | $ 64,082 |
Accumulated Amortization | (74,999) | (41,511) |
Net Book Value | 285,390 | 22,571 |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | 267,326 | 47,980 |
Accumulated Amortization | (61,858) | (34,515) |
Net Book Value | 205,468 | 13,465 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | 45,005 | 3,746 |
Accumulated Amortization | (4,516) | (2,718) |
Net Book Value | 40,489 | 1,028 |
Technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | 48,058 | 12,356 |
Accumulated Amortization | (8,625) | (4,278) |
Net Book Value | $ 39,433 | $ 8,078 |
Goodwill and long-lived asset40
Goodwill and long-lived assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Jul. 02, 2016 |
Fiscal Year: | ||
Remainder of fiscal 2017 | $ 20,089 | |
2,018 | 74,215 | |
2,019 | 72,865 | |
2,020 | 71,145 | |
2,021 | 33,685 | |
2,022 | 10,197 | |
Thereafter | 3,194 | |
Net Book Value | $ 285,390 | $ 22,571 |
Goodwill and long-lived asset41
Goodwill and long-lived assets Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | Jul. 02, 2016 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average life of intangible assets | 4 years | ||||
Intangible asset amortization expense | $ 22,400 | $ 1,900 | $ 34,185 | $ 5,900 | |
TS Business | Disposal Group, Held-for-sale, Not Discontinued Operations | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Intangible assets, net | $ 55,826 |
Goodwill and long-lived asset42
Goodwill and long-lived assets - New ERP System (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Jul. 02, 2016 |
Change in Accounting Estimate [Line Items] | ||
Property, plant and equipment, net | $ 526,025 | $ 453,209 |
ERP System | ||
Change in Accounting Estimate [Line Items] | ||
Property, plant and equipment, net | $ 170,000 | |
Service Life | ERP System | ||
Change in Accounting Estimate [Line Items] | ||
Useful life | 24 months |
Debt - short-term debt (Details
Debt - short-term debt (Details) - USD ($) | 1 Months Ended | 9 Months Ended | |||
Jan. 31, 2017 | Dec. 31, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | Jul. 02, 2016 | |
Components of short-term debt | |||||
Debt, Current, Total | $ 32,574,000 | $ 1,152,599,000 | |||
Repayment of notes | $ 530,800,000 | $ 250,000,000 | |||
Bank credit facilities and other | |||||
Components of short-term debt | |||||
Short-term Debt, Weighted Average Interest Rate | 1.92% | 4.62% | |||
Short-term borrowings | $ 32,574,000 | $ 122,599,000 | |||
Accounts receivable securitization program | |||||
Components of short-term debt | |||||
stated interest rate | 0.93% | ||||
Current portion of long-term debt | $ 730,000,000 | ||||
Notes Due September 2016 | |||||
Components of short-term debt | |||||
stated interest rate | 6.63% | ||||
Current portion of long-term debt | $ 300,000,000 | ||||
Notes Due December 2021 | |||||
Components of short-term debt | |||||
stated interest rate | 3.75% | ||||
Debt instrument face amount | $ 300,000,000 | ||||
PF | Private Placement Notes | |||||
Components of short-term debt | |||||
Repayment of notes | $ 152,200,000 | $ 78,600,000 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Dec. 31, 2016 | Jul. 02, 2016 |
Debt Instrument [Line Items] | |||
Long-term debt before discount and debt issuance costs | $ 1,738,602 | $ 1,351,551 | |
Discount and debt issuance costs | (14,368) | (12,347) | |
Long-term debt | $ 1,724,234 | $ 1,339,204 | |
Accounts receivable securitization program | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 0.93% | ||
Notes Due September 2016 | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 6.63% | ||
Notes Due December 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 3.75% | ||
Revolving credit facilities | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate | 1.72% | ||
Long-term debt before discount and debt issuance costs | $ 150,000 | ||
Revolving credit facilities | Accounts receivable securitization program | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate | 1.28% | ||
Long-term debt before discount and debt issuance costs | $ 238,000 | ||
Notes due | Notes Due June 2020 | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 5.88% | 5.88% | |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 300,000 | |
Notes due | Notes Due December 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 3.75% | ||
Long-term debt before discount and debt issuance costs | $ 300,000 | ||
Notes due | Notes Due December 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 4.88% | 4.88% | |
Long-term debt before discount and debt issuance costs | $ 350,000 | $ 350,000 | |
Notes due | Notes Due April 2026 | |||
Debt Instrument [Line Items] | |||
Long-term debt, stated interest rate | 4.63% | 4.63% | |
Long-term debt before discount and debt issuance costs | $ 550,000 | $ 550,000 | |
Other long-term debt | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Weighted Average Interest Rate | 1.36% | 1.92% | |
Long-term debt before discount and debt issuance costs | $ 602 | $ 1,551 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) £ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2016USD ($) | Oct. 31, 2016GBP (£) | Apr. 01, 2017USD ($) | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Jan. 31, 2017USD ($) | Jul. 02, 2016USD ($) | |
Debt Instrument [Line Items] | |||||||
Issuance of notes, net of issuance costs | $ 296,374,000 | $ 542,043,000 | |||||
Borrowings of term loans | 530,756,000 | ||||||
Company's total debt | |||||||
Debt, Long-term and Short-term, Combined Amount | $ 1,760,000,000 | 1,760,000,000 | $ 2,490,000,000 | ||||
Total fair value | 1,810,000,000 | 1,810,000,000 | 2,590,000,000 | ||||
Notes Due December 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument face amount | $ 300,000,000 | ||||||
Issuance of notes, net of issuance costs | $ 296,400,000 | ||||||
Long-term debt, stated interest rate | 3.75% | ||||||
Bank credit facilities and other | |||||||
Debt Instrument [Line Items] | |||||||
Short-term borrowings | 32,574,000 | 32,574,000 | $ 122,599,000 | ||||
Accounts receivable securitization program | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, stated interest rate | 0.93% | ||||||
Certain Foreign Subsidiaries | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Borrowings of term loans | £ | £ 479 | ||||||
Revolving credit facilities | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing amount | $ 1,250,000,000 | 1,250,000,000 | |||||
Term | 5 years | ||||||
Line of credit facility contingent increase to maximum borrowing capacity | $ 1,500,000,000 | 1,500,000,000 | |||||
Revolving credit facilities | Accounts receivable securitization program | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing amount | 400,000,000 | 400,000,000 | $ 800,000,000 | ||||
Accounts Receivable from Securitization | $ 820,000,000 | 820,000,000 | $ 1,460,000,000 | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||||||
Revolving credit facilities | Accounts receivable securitization program | Base Rate or Commercial Paper | |||||||
Debt Instrument [Line Items] | |||||||
Spread over base rate | 0.40% | ||||||
Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing amount | $ 150,000,000 | 150,000,000 | |||||
Letters of credit outstanding, amount | $ 3,100,000 | $ 3,100,000 | $ 5,600,000 | ||||
Notes due | Notes Due December 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, stated interest rate | 3.75% | 3.75% | |||||
Notes due | Notes Due April 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt, stated interest rate | 4.63% | 4.63% | 4.63% |
Derivative financial instrume46
Derivative financial instruments Textuals (Details) - USD ($) | 3 Months Ended | |
Apr. 01, 2017 | Jul. 02, 2016 | |
Derivative fair value | ||
Derivative assets fair value | $ 4,222,000 | $ 9,681,000 |
Derivative liabilities fair value | $ 3,036,000 | $ 6,369,000 |
Maximum | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than 60 days) | 60 days |
Derivative financial instrume47
Derivative financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | Jul. 02, 2016 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Average length of time of Foreign exchange contracts | 59 days | 53 days | |||
Not Designated as Hedging Instrument | Foreign Exchange Forward | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Gain (Loss) on Derivative, Net | $ 26 | $ 2,358 | $ (8,711) | $ 569 | |
Other expenses, net | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net derivative financial instrument gain (loss) | $ (35,000) |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) $ in Millions | Apr. 01, 2017USD ($) |
Loss Contingency, Estimate [Abstract] | |
Estimate of possible loss | $ 11.7 |
Income taxes textuals (Details)
Income taxes textuals (Details) | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Income taxes | ||||
Effective tax rate | 15.30% | 17.10% | ||
Effective tax rate including discontinued operations | 25.70% | 18.00% |
Pension and retirement plans (P
Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Components of net periodic pension costs | ||||
Service cost | $ 7,406 | $ 9,935 | $ 22,217 | $ 30,356 |
Interest cost | 3,952 | 5,328 | 11,856 | 15,984 |
Expected return on plan assets | (10,840) | (10,071) | (32,520) | (30,213) |
Amortization of prior service credits | 3,610 | 3,183 | 10,830 | 9,549 |
Recognized net actuarial loss | (394) | (393) | (1,180) | (1,179) |
Net periodic pension cost | $ 3,734 | $ 7,982 | $ 11,203 | $ 24,497 |
Pension and retirement plan (Te
Pension and retirement plan (Textuals) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Apr. 01, 2017 | Apr. 01, 2017 | |
Pension and retirement plan | ||
Defined benefit plans, estimated future employer contributions each remaining quarter of current fiscal year | $ 3.8 | |
Contributions | $ 30 |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Apr. 01, 2017 | Feb. 25, 2017 | Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Shareholders' equity | ||||||
Increase in authorized repurchase amount | $ 500,000 | |||||
Shares repurchased during period (in shares) | 3.1 | 3.1 | ||||
Cost of repurchase | $ 140,100 | $ 140,100 | ||||
Cash dividends paid per common share | $ 0.18 | $ 0.18 | $ 0.17 | $ 0.52 | $ 0.51 | |
Dividends paid on common stock | $ 23,100 | $ 66,477 | $ 66,944 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Numerator: | ||||
Income from continuing operations | $ 89,920 | $ 107,792 | $ 190,073 | $ 318,857 |
Income from discontinued operations | 181,851 | 15,667 | 253,759 | 90,868 |
Net income | $ 271,771 | $ 123,459 | $ 443,832 | $ 409,725 |
Denominator: | ||||
Weighted average common shares for basic earnings per share | 128,487 | 129,811 | 127,973 | 131,834 |
Net effect of dilutive stock option, restricted stock units and performance share units | 945 | 1,839 | 1,874 | 2,464 |
Weighted average common shares for diluted earnings per share | 129,432 | 131,650 | 129,847 | 134,298 |
Basic earnings per share-continuing operations | $ 0.70 | $ 0.83 | $ 1.48 | $ 2.42 |
Basic earnings per share-discontinued operations | 1.42 | 0.12 | 1.98 | 0.69 |
Basic earnings per share | 2.12 | 0.95 | 3.46 | 3.11 |
Diluted earnings per share-continuing operations | 0.69 | 0.82 | 1.46 | 2.37 |
Diluted earnings per share-discontinued operations | 1.41 | 0.12 | 1.95 | 0.68 |
Diluted earnings per share | $ 2.10 | $ 0.94 | $ 3.41 | $ 3.05 |
Stock options excluded from earnings per share calculation due to antidilutive effect | 92 | 422 | 98 | 378 |
Additional cash flow informat54
Additional cash flow information (Details) - USD ($) $ in Thousands, shares in Millions | 1 Months Ended | 9 Months Ended | ||
Feb. 25, 2017 | Apr. 01, 2017 | Apr. 02, 2016 | Jul. 02, 2016 | |
Interest and income taxes paid | ||||
Interest paid | $ 74,165 | $ 80,313 | ||
Income taxes paid | 106,659 | 85,323 | ||
Accrued property, plant and equipment not paid | 16,800 | $ 11,600 | ||
Unsettled repurchases of common stock | 15,700 | |||
Cash equivalents | $ 565,200 | $ 8,700 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations | TS Business | ||||
Interest and income taxes paid | ||||
Shares consideration in sale of business | 2.8 | |||
Value of shares received as consideration in sale of business | $ 247,200 |
Segment information (Details)
Segment information (Details) $ in Thousands | Apr. 01, 2017segment | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) | Apr. 01, 2017USD ($) | Apr. 02, 2016USD ($) |
Segment information | |||||
Number of reportable segments | segment | 1 | ||||
Sales, by segment | |||||
Sales | $ 4,441,896 | $ 4,081,961 | $ 12,833,559 | $ 12,771,628 | |
Operating income (expense): | |||||
Restructuring, integration and other expenses | (35,513) | (8,854) | (95,382) | (35,455) | |
Operating income | $ 114,283 | $ 150,024 | $ 368,027 | $ 452,732 |
Segment information (Sales By R
Segment information (Sales By Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 01, 2017 | Apr. 02, 2016 | Apr. 01, 2017 | Apr. 02, 2016 | |
Sales, by segment | ||||
Sales | $ 4,441,896 | $ 4,081,961 | $ 12,833,559 | $ 12,771,628 |
Americas | ||||
Sales, by segment | ||||
Sales | 1,328,592 | 1,227,243 | 3,831,706 | 3,696,291 |
United States | ||||
Sales, by segment | ||||
Sales | 1,230,000 | 1,150,000 | 3,560,000 | 3,460,000 |
EMEA | ||||
Sales, by segment | ||||
Sales | 1,615,903 | 1,330,751 | 4,261,891 | 3,809,970 |
Germany | ||||
Sales, by segment | ||||
Sales | 616,300 | 539,600 | 1,660,000 | 1,600,000 |
United Kingdom | ||||
Sales, by segment | ||||
Sales | 179,100 | 90,100 | 415,000 | 285,600 |
Asia Pacific | ||||
Sales, by segment | ||||
Sales | 1,497,401 | 1,523,967 | 4,739,962 | 5,265,367 |
China (including Hong Kong) | ||||
Sales, by segment | ||||
Sales | 562,900 | 563,300 | 1,800,000 | 1,840,000 |
Taiwan | ||||
Sales, by segment | ||||
Sales | $ 486,900 | $ 586,600 | $ 1,670,000 | $ 2,270,000 |
Segment information (Assets) (D
Segment information (Assets) (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Jul. 02, 2016 |
Assets: | ||
Assets | $ 9,845,778 | $ 11,239,805 |
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 526,025 | 453,209 |
TS Business | Disposal Group, Held-for-sale, Not Discontinued Operations | ||
Assets: | ||
Assets held for sale | 3,460,538 | |
Americas | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 314,818 | 303,252 |
United States | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 336,500 | 297,100 |
EMEA | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 173,823 | 129,612 |
Germany | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 78,200 | 72,500 |
Belgium | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 37,600 | 40,000 |
Asia Pacific | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | $ 37,384 | $ 20,345 |
Restructuring expenses (Details
Restructuring expenses (Details) $ in Thousands | 9 Months Ended |
Apr. 01, 2017USD ($) | |
Fiscal Year 2017 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | $ 30,475 |
Cash payments | (12,209) |
Non-cash amounts | (3,478) |
Other, principally foreign currency translation | (36) |
Ending Balance | 14,752 |
Fiscal Year 2016 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 10,987 |
Cash payments | (5,790) |
Changes in estimates, net | (1,301) |
Other, principally foreign currency translation | (103) |
Ending Balance | 3,793 |
Fiscal Year 2015 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 4,500 |
Ending Balance | 3,300 |
Employee Severance | Fiscal Year 2017 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 25,185 |
Cash payments | (10,585) |
Other, principally foreign currency translation | (36) |
Ending Balance | 14,564 |
Employee Severance | Fiscal Year 2016 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 9,854 |
Cash payments | (5,511) |
Changes in estimates, net | (1,031) |
Other, principally foreign currency translation | (89) |
Ending Balance | 3,223 |
Facility Closing | Fiscal Year 2017 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 312 |
Cash payments | (124) |
Ending Balance | 188 |
Facility Closing | Fiscal Year 2016 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 1,130 |
Cash payments | (276) |
Changes in estimates, net | (270) |
Other, principally foreign currency translation | (14) |
Ending Balance | 570 |
Asset Impairments | Fiscal Year 2017 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 3,478 |
Non-cash amounts | (3,478) |
Other Restructuring | Fiscal Year 2017 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 1,500 |
Cash payments | (1,500) |
Other Restructuring | Fiscal Year 2016 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 3 |
Cash payments | $ (3) |
Restructuring expenses (Textual
Restructuring expenses (Textuals) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Apr. 01, 2017USD ($)employee | Apr. 01, 2017USD ($) | Jul. 02, 2016USD ($) | |
Fiscal Year 2017 Restructuring Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 30,475 | ||
Restructuring Reserve | $ 14,752 | 14,752 | |
Fiscal Year 2016 Restructuring Liabilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 3,793 | $ 3,793 | $ 10,987 |
Fiscal Year 2016 Restructuring Liabilities | Minimum | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of employee reductions under Severance charges | employee | 150 |