Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 27, 2020 | Jul. 25, 2020 | Dec. 27, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 27, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 1-4224 | ||
Entity Registrant Name | AVNET INC | ||
Entity Incorporation, State or Country Code | NY | ||
Entity Tax Identification Number | 11-1890605 | ||
Entity Address, Address Line One | 2211 South 47th Street | ||
Entity Address, City or Town | Phoenix | ||
Entity Address, State or Province | AZ | ||
Entity Address, Postal Zip Code | 85034 | ||
City Area Code | 480 | ||
Local Phone Number | 643-2000 | ||
Title of 12(b) Security | Common stock, par value $1.00 per share | ||
Trading Symbol | AVT | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,189,280,703 | ||
Entity Common Stock, Shares Outstanding | 98,777,974 | ||
Entity Central Index Key | 0000008858 | ||
Current Fiscal Year End Date | --06-27 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 477,038 | $ 546,105 |
Receivables, less allowances of $59,018 and $53,499, respectively | 2,928,386 | 3,168,369 |
Inventories | 2,731,988 | 3,008,424 |
Prepaid and other current assets | 191,394 | 153,438 |
Total current assets | 6,328,806 | 6,876,336 |
Property, plant and equipment, net | 404,607 | 452,171 |
Goodwill | 773,734 | 876,728 |
Intangible assets, net | 65,437 | 143,520 |
Operating lease assets (Note 11) | 275,917 | |
Other assets | 256,696 | 215,801 |
Total assets | 8,105,197 | 8,564,556 |
Current liabilities: | ||
Short-term debt | 51 | 300,538 |
Accounts payable | 1,754,078 | 1,864,342 |
Accrued expenses and other | 472,924 | 413,696 |
Short-term operating lease liabilities (Note 11) | 53,313 | |
Total current liabilities | 2,280,366 | 2,578,576 |
Long-term debt | 1,424,791 | 1,419,922 |
Long-term operating lease liabilities (Note 11) | 253,719 | |
Other liabilities | 419,923 | 425,585 |
Total liabilities | 4,378,799 | 4,424,083 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 98,792,542 shares and 104,037,769 shares, respectively | 98,793 | 104,038 |
Additional paid-in capital | 1,594,140 | 1,573,005 |
Retained earnings | 2,421,845 | 2,767,469 |
Accumulated other comprehensive loss | (388,380) | (304,039) |
Total shareholders' equity | 3,726,398 | 4,140,473 |
Total liabilities and shareholders' equity | $ 8,105,197 | $ 8,564,556 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Current assets: | ||
Allowance for doubtful accounts receivable, current (in dollars) | $ 59,018 | $ 53,499 |
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 | 98,792,542 | 104,037,769 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | |||
Sales | $ 17,634,333 | $ 19,518,592 | $ 19,036,892 |
Revenue, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Cost of sales | $ 15,570,877 | $ 17,032,490 | $ 16,509,708 |
Cost, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Gross profit | $ 2,063,456 | $ 2,486,102 | $ 2,527,184 |
Selling, general and administrative expenses | 1,842,122 | 1,874,651 | 1,991,401 |
Goodwill and intangible asset impairment expenses | 144,092 | 137,396 | 181,440 |
Restructuring, integration and other expenses | 81,870 | 108,144 | 145,125 |
Operating (loss) income | (4,628) | 365,911 | 209,218 |
Other (expense) income, net | (737) | 11,231 | 28,606 |
Interest and other financing expenses, net | (122,742) | (134,874) | (92,747) |
Income (loss) from continuing operations before taxes | (128,107) | 242,268 | 145,077 |
Income tax (benefit) expense | (98,574) | 62,157 | 287,966 |
Income (loss) from continuing operations, net of tax | (29,533) | 180,111 | (142,889) |
Loss from discontinued operations, net of tax | (1,548) | (3,774) | (13,535) |
Net (loss) income | $ (31,081) | $ 176,337 | $ (156,424) |
Earnings (loss) per share: | |||
Basic (loss) earnings per share-continuing operations | $ (0.29) | $ 1.64 | $ (1.19) |
Basic loss per share-discontinued operations | (0.02) | (0.03) | (0.11) |
Basic (loss) earnings per share | (0.31) | 1.61 | (1.30) |
Diluted (loss) earnings per share-continuing operations | (0.29) | 1.63 | (1.19) |
Diluted loss per share-discontinued operations | (0.02) | (0.04) | (0.11) |
Diluted (loss) earnings per share | $ (0.31) | $ 1.59 | $ (1.30) |
Shares used to compute earnings per share: | |||
Basic | 100,474 | 109,820 | 119,909 |
Diluted | 100,474 | 110,798 | 119,909 |
Cash dividends paid per common share | $ 0.84 | $ 0.80 | $ 0.74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (31,081) | $ 176,337 | $ (156,424) |
Other comprehensive (loss) income, net of tax: | |||
Foreign currency translation and other | (56,682) | (63,621) | 7,799 |
Pension adjustments, net | (27,659) | (45,067) | 40,716 |
Total comprehensive (loss) income | $ (115,422) | $ 67,649 | $ (107,909) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jul. 01, 2017 | $ 123,081 | $ 1,503,490 | $ 3,799,363 | $ (243,866) | $ 5,182,068 |
Shares issued Beginning Balance at Jul. 01, 2017 | 123,081,000 | ||||
Net (loss) income | (156,424) | (156,424) | |||
Translation adjustments and other | 7,799 | 7,799 | |||
Pension liability adjustment, net | 40,716 | 40,716 | |||
Cash dividends | (88,255) | (88,255) | |||
Repurchases of common stock | $ (8,151) | (318,790) | (326,941) | ||
Repurchase of common stock (in shares) | (8,151,000) | ||||
Stock-based compensation | $ 895 | 25,223 | 26,118 | ||
Stock-based compensation (in shares) | 895,000 | ||||
Shares issued Ending Balance at Jun. 30, 2018 | 115,825,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 30, 2018 | $ 115,825 | 1,528,713 | 3,235,894 | (195,351) | 4,685,081 |
Net (loss) income | 176,337 | 176,337 | |||
Translation adjustments and other | (63,621) | (63,621) | |||
Pension liability adjustment, net | (45,067) | (45,067) | |||
Cash dividends | (87,158) | (87,158) | |||
Repurchases of common stock | $ (12,919) | (553,772) | (566,691) | ||
Repurchase of common stock (in shares) | (12,919,000) | ||||
Stock-based compensation | $ 1,132 | 44,292 | $ 45,424 | ||
Stock-based compensation (in shares) | 1,132,000 | ||||
Shares issued Ending Balance at Jun. 29, 2019 | 104,038,000 | 104,037,769 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 29, 2019 | $ 104,038 | 1,573,005 | 2,767,469 | (304,039) | $ 4,140,473 |
Effects of new accounting principles | (3,832) | (3,832) | |||
Net (loss) income | (31,081) | (31,081) | |||
Translation adjustments and other | (56,682) | (56,682) | |||
Pension liability adjustment, net | (27,659) | (27,659) | |||
Cash dividends | (83,975) | (83,975) | |||
Repurchases of common stock | $ (5,870) | (230,568) | (236,438) | ||
Repurchase of common stock (in shares) | (5,870,000) | ||||
Stock-based compensation | $ 625 | 21,135 | $ 21,760 | ||
Stock-based compensation (in shares) | 625,000 | ||||
Shares issued Ending Balance at Jun. 27, 2020 | 98,793,000 | 98,792,542 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 27, 2020 | $ 98,793 | $ 1,594,140 | $ 2,421,845 | $ (388,380) | $ 3,726,398 |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax on pension liability adjustment | $ 362 | $ 14,988 | $ 18,187 |
Cash dividend paid per share | $ 0.84 | $ 0.80 | $ 0.74 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | |||
Net (loss) income | $ (31,081) | $ 176,337 | $ (156,424) |
Less: Loss from discontinued operations, net of tax | (1,548) | (3,774) | (13,535) |
Income (loss) from continuing operations, net of tax | (29,533) | 180,111 | (142,889) |
Non-cash and other reconciling items: | |||
Depreciation | 101,100 | 97,160 | 143,397 |
Amortization | 81,139 | 83,682 | 91,475 |
Amortization of Operating Lease Assets | 60,656 | ||
Deferred income taxes | (34,264) | 33,801 | (87,141) |
Stock-based compensation | 26,832 | 30,098 | 23,990 |
Goodwill, long-lived, intangible asset and other impairments | 144,092 | 192,083 | 186,978 |
Other, net | 45,049 | (21,265) | 43,845 |
Changes in (net of effects from businesses acquired and divested): | |||
Receivables | 221,486 | 464,981 | (296,175) |
Inventories | 266,791 | 81,929 | (308,663) |
Accounts payable | (106,990) | (377,855) | 409,608 |
Accrued expenses and other, net | (46,176) | (173,671) | 189,060 |
Net cash flows provided by operating activities - continuing operations | 730,182 | 591,054 | 253,485 |
Net cash flows used for operating activities - discontinued operations | (56,284) | ||
Net cash flows provided by operating activities | 730,182 | 534,770 | 253,485 |
Cash flows from financing activities: | |||
Borrowings (repayments) under accounts receivable securitization, net | (227,300) | 122,300 | (37,000) |
Borrowings (repayments) under bank credit facilities and other debt, net | (2,123) | (61,738) | 8,850 |
Borrowings (repayments) under senior unsecured credit facility, net | 223,058 | 505 | (97,954) |
Repayments of term loans | (302,038) | ||
Repurchases of common stock | (237,842) | (568,712) | (323,516) |
Dividends paid on common stock | (83,975) | (87,158) | (88,255) |
Other, net | (14,330) | 12,127 | (4,018) |
Net cash flows used for financing activities - continuing operations | (644,550) | (582,676) | (541,893) |
Net cash flows used for financing activities | (644,550) | (582,676) | (541,893) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (73,516) | (122,690) | (155,873) |
Acquisitions of businesses, net of cash acquired | (51,509) | (56,417) | (15,254) |
Other, net | (9,992) | 30,422 | 6,653 |
Net cash flows used for investing activities - continuing operations | (135,017) | (148,685) | (164,474) |
Net cash flows provided by investing activities - discontinued operations | 123,473 | 236,205 | |
Net cash flows (used for) provided by investing activities | (135,017) | (25,212) | 71,731 |
Effect on currency exchange rate changes on cash and cash equivalents | (19,682) | (1,902) | 1,418 |
Cash and cash equivalents: | |||
Decrease | (69,067) | (75,020) | (215,259) |
Cash and cash equivalents at beginning of year | 546,105 | 621,125 | 836,384 |
Cash and cash equivalents at end of year | $ 477,038 | $ 546,105 | $ 621,125 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 27, 2020 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significant accounting policie s Basis of presentation Reclassifications Fiscal year Management estimates Cash and cash equivalents Inventories Depreciation, amortization and useful lives Property, plant, and equipment is depreciated using the straight-line method over its estimated useful lives. The estimated useful lives for property, plant, and equipment are typically as follows: buildings — 30 years; machinery, fixtures and equipment — 2-10 years; information technology hardware and software — 2-10 years; and leasehold improvements — over the applicable lease term or economic useful life if shorter. The Company amortizes intangible assets acquired in business combinations or asset combinations using the straight-line method over the estimated economic useful lives of the intangible assets from the date of acquisition, which is generally between 5-10 years. Long-lived asset impairment Leases The Company determines if an arrangement contains a lease at inception based on whether it conveys the right to control the use of an identified asset in exchange for consideration. Lease right-of-use assets (“operating lease assets”) and associated liabilities (“operating lease liabilities”) are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Certain lease agreements may include one or more options to extend or terminate a lease. Lease terms are inclusive of these options if it is reasonably certain that the Company will exercise such options. The Company’s leases generally do not provide a readily determinable implicit borrowing rate, as such, the discount rate used to calculate present value is based upon an estimate of the Company’s secured borrowing rate. The estimated secured borrowing rates used at the date of adoption for each lease varies in accordance with the lease term and the currency of the lease payments. Lease cost is recognized on a straight-line basis over the lease term and is included as a component of “Selling, general, and administrative expenses” in the consolidated statements of operations. Lease payments are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the measurement of operating lease assets and liabilities. Goodwill intangible asset impairment expenses in the consolidated statements of operations. Impairment testing is performed at the reporting unit level, which is defined as the same, or one level below, an operating segment. The Company will perform an interim impairment test between required annual tests if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. In performing goodwill impairment testing, the Company may first make a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value. If the qualitative assessment indicates it is more-likely-than-not that a reporting unit’s fair value is not greater than its carrying value, the Company must perform a quantitative impairment test. The Company defines the fair value of a reporting unit as the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants as of the impairment test date. To determine the fair value of a reporting unit, the Company uses the income methodology of valuation, which includes the discounted cash flow method, and the market methodology of valuation, which considers values of comparable businesses to estimate the fair value of the Company’s reporting units. Significant management judgment is required when estimating the fair value of the Company’s reporting units from a market participant perspective including forecasting of future operating results and the discount rates used in the discounted cash flow method of valuation, and in the selection of comparable businesses and related market multiples that are used in the market method of valuation. If the estimated fair value of a reporting unit exceeds the carrying value assigned to that reporting unit, goodwill is not impaired. If the estimated fair value of a reporting unit is less than the carrying value assigned to that reporting unit, then a goodwill impairment loss is measured based on such difference. Foreign currency translation Income taxes The Company establishes contingent liabilities for potentially unfavorable outcomes of positions taken on certain tax matters. These liabilities are based on management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by the relevant tax authorities. There may be differences between the estimated and actual outcomes of these matters that may result in future changes in estimates to such unrecognized tax benefits. To the extent such changes in estimates are required, the Company’s effective tax rate may potentially fluctuate as a result. In accordance with the Company’s accounting policies, accrued interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. Revenue recognition For contracts related to the specialized manufacture of products for customers with no alternative use and for which the Company has an enforceable right to payment, including a reasonable profit margin, the Company recognizes revenue over time as control of the products transfer through the manufacturing process. The contract assets associated with such specialized manufacturing products are not material as these contracts represent less than 2% of the Company’s total sales. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. The Company estimates different forms of variable consideration at the time of sale based on historical experience, current conditions and contractual obligations. Revenue is recorded net of customer discounts and rebates. When the Company offers the right or has a history of accepting returns of product, historical experience is utilized to establish a liability for the estimate of expected returns and an asset for the right to recover the product expected to be returned. These adjustments are made in the same period as the underlying sales transactions. The Company considers the following indicators amongst others when determining whether it is acting as a principal in the contract where revenue would be recorded on a gross basis: (i) the Company is primarily responsible for fulfilling the promise to provide the specified products or services; (ii) the Company has inventory risk before the specified products have been transferred to a customer or after transfer of control to the customer; and (iii) the Company has discretion in establishing the price for the specified products or services. If a transaction does not meet the Company's indicators of being a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. The Company has elected to treat shipping and handling of product as a fulfillment activity. The practical expedient not to disclose information about remaining performance obligations has also been elected as these contracts have an original duration of one Vendor allowances and consideration depending upon the nature and contractual requirements related to the consideration received. Some of these supplier programs require management to make estimates and may extend over one or more reporting periods. Comprehensive income (loss) Stock-based compensation Restructuring and exit activities Nonretirement Postemployment Benefits Exit or Disposal Cost Obligations Exit or Disposal Cost Obligations Property, Plant and Equipment Business combinations Concentration of credit risk Fair value Fair Value Measurements million, respectively, of cash equivalents that were measured at fair value based upon Level 1 criteria. See Note 3 for discussion of the fair value of the Company’s derivative financial instruments, Note 7 for discussion of the fair value of the Company’s long-term debt and Note 10 for a discussion of the fair value of the Company’s pension plan assets. Derivative financial instruments Investments Accounts receivable securitization Recently adopted accounting pronouncements “Leases (Topic 842),” The adoption of ASC 842 did not have a material impact on the Company’s consolidated statements of operations or retained earnings. The Company elected the package of practical expedients permitted under the transition guidance that allowed, among other things, the historical lease classification to be carried forward without reassessment and the hindsight practical expedient. The Company elected to not separate lease and non-lease components for its real estate leases. Refer to Note 11 for additional disclosures related to leases. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities” |
Acquisitions and discontinued o
Acquisitions and discontinued operations | 12 Months Ended |
Jun. 27, 2020 | |
Acquisitions and discontinued operations | |
Acquisitions and Discontinued operations | 2. Acquisitions and Discontinued operations Acquisitions In the second quarter of fiscal 2020, the Company completed two acquisitions. The impact of these acquisitions was not material to the Company’s consolidated balance sheets or statements of operations and as a result, the Company has not disclosed the preliminary allocation of purchase price or the pro-forma impact of the acquisition. Discontinued Operations In February 2017, the Company completed the sale of its Technology Solutions business (“TS business”) to Tech Data Corporation (the “Buyer”). The TS business and the financial impacts of the divestiture are classified as discontinued operations in all periods presented. Under the contractual terms of the sale of the TS business, the Company has indemnified the Buyer for certain liabilities including tax related matters, which may result in future indemnification expenses and indemnification payments to the Buyer depending upon the outcome of those matters subject to indemnification. |
Derivative financial instrument
Derivative financial instruments | 12 Months Ended |
Jun. 27, 2020 | |
Derivative financial instruments | |
Derivative financial instruments | 3. 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 60 days (“economic hedges”), but no longer than one year. The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “Other (expense) income, 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 “Prepaid and other current assets” or “Accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets as of June 27, 2020 and June 29, 2019. 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, Japanese Yen, Chinese Yuan, Taiwan Dollar, Canadian Dollar and Mexican Peso. The Company also, to a lesser extent, has foreign operations transactions in other EMEA and Asia foreign currencies. The fair values of forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in the Company’s consolidated balance sheets are as follows: June 27, June 29, 2020 2019 (Thousands) Prepaid and other current assets $ 18,989 $ 5,511 Accrued expenses and other 15,605 6,154 The amount recorded to other (expense) income, net related to derivative financial instruments for economic hedges are as follows: Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands) Net derivative financial instrument gain $ 12,739 $ 84 $ 2,735 Under the Company’s economic hedging policies, gains and losses on the derivative financial instruments are classified within the same line item in the consolidated statements of operations as the remeasurement of the underlying assets or liabilities being economically hedged. |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Jun. 27, 2020 | |
Shareholders' equity | |
Shareholders' equity | 4. Shareholders’ equity Accumulated comprehensive (loss) income The following table includes the balances within accumulated other comprehensive loss: June 27, June 29, June 30, 2020 2019 2018 (Thousands) Accumulated translation adjustments and other $ (199,151) $ (142,469) $ (78,848) Accumulated pension liability adjustments, net of income taxes (189,229) (161,570) (116,503) Total accumulated other comprehensive loss $ (388,380) $ (304,039) $ (195,351) Amounts reclassified out of accumulated comprehensive loss, net of tax, to operating expenses and discontinued operations during fiscal 2020, 2019 and 2018 substantially all related to net periodic pension costs as discussed further in Note 10. Share repurchase program In August 2019, the Company’s Board of Directors amended the Company’s existing share repurchase program, increasing the cumulative total of authorized share repurchases to $2.95 billion of common stock in the open market or through privately negotiated transactions. The timing and actual number of shares repurchased will depend on a variety of factors such as share price, expected liquidity, expected compliance with financial debt convents, corporate and regulatory requirements, and prevailing market conditions. During fiscal 2020, the Company repurchased 5.9 million shares under this program at an average market price of $40.28 per share for a total cost of $236.4 million. Repurchased shares were retired. Since the beginning of the repurchase program through the end of fiscal 2020, the Company has repurchased 64.7 million shares at an aggregate cost of $2.48 billion, and $469.0 million remaining under its share repurchase authorization. As a result of the economic uncertainty caused by COVID-19, the Company has temporarily suspended share repurchases. Common stock dividend During fiscal 2020, the Company paid dividends of $0.84 per common share and $84.0 million in total. |
Property plant and equipment, n
Property plant and equipment, net | 12 Months Ended |
Jun. 27, 2020 | |
Property plant and equipment, net | |
Property, plant and equipment, net | 5. Property, plant and equipment, net Property, plant and equipment are recorded at cost and consist of the following: June 27, 2020 June 29, 2019 (Thousands) Buildings $ 124,007 $ 121,847 Machinery, fixtures and equipment 242,347 224,838 Information technology hardware and software 809,182 799,324 Leasehold improvements 117,036 107,659 Depreciable property, plant and equipment, gross 1,292,572 1,253,668 Accumulated depreciation (938,002) (886,062) Depreciable property, plant and equipment, net 354,570 367,606 Land 23,618 23,874 Construction in progress 26,419 60,691 Property, plant and equipment, net $ 404,607 $ 452,171 Depreciation expense including accelerated depreciation related to property, plant and equipment was $101.1 million, $97.2 million and $143.4 million in fiscal 2020, 2019 and 2018, respectively. Interest expense capitalized during fiscal 2020, 2019 and 2018 was not material. Included as a component of restructuring, integration and other expenses was $10.9 million, $11.3 million and $52.9 million of accelerated depreciation expense for fiscal 2020, 2019 and 2018, respectively, associated with the changes in estimates of the useful life of certain information technology hardware and software in the Americas. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Jun. 27, 2020 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | 6. Goodwill, intangible assets and impairments The following table presents the change in goodwill balances by reportable segment for fiscal year 2020. Electronic Components Farnell Total (Thousands) Carrying value at June 29, 2019 (1) $ 390,896 $ 485,832 $ 876,728 Additions from acquisitions 28,819 — 28,819 Impairment of goodwill (118,731) — (118,731) Foreign currency translation (3,148) (9,934) (13,082) Carrying value at June 27, 2020 (2) $ 297,836 $ 475,898 $ 773,734 (1) Includes accumulated impairment of $1,045,110 from fiscal 2009, $181,440 from fiscal 2018 and $137,396 from fiscal 2019. (2) Includes accumulated impairment of $1,045,110 from fiscal 2009, $181,440 from fiscal 2018, $137,396 from fiscal 2019 and $118,731 from fiscal 2020. The Company evaluates each quarter if facts and circumstances indicate that it is more likely than not that the fair value of its reporting units is less than their carrying value, which would require the Company to perform an interim goodwill impairment test. Indicators the Company evaluates to determine whether an interim goodwill impairment test is necessary include, but are not limited to, (i) a sustained decrease in share price or market capitalization as of any fiscal quarter end, (ii) changes in macroeconomic or industry environments, (iii) the results of and the amount of time passed since the last goodwill impairment test and (iv) the long-term expected financial performance of its reporting units. The following table presents the Company’s acquired identifiable intangible assets: June 27, 2020 June 29, 2019 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount (1) Amortization Value Amount Amortization Value (Thousands) Customer related $ 300,937 $ (266,759) $ 34,178 $ 292,266 $ (208,329) $ 83,937 Trade name 51,698 (32,493) 19,205 52,760 (24,752) 28,008 Technology and other 53,641 (41,587) 12,054 63,753 (32,178) 31,575 $ 406,276 $ (340,839) $ 65,437 $ 408,779 $ (265,259) $ 143,520 (1) Acquired amount in fiscal 2020 reduced by $ 17,473 related to the impairment of intangible asset in the third quarter of fiscal 2020. Intangible asset amortization expense was $81.1 million, $83.7 million and $91.5 million for fiscal 2020, 2019 and 2018, respectively. Intangible assets have a weighted average remaining useful life of approximately 2 years as of June 27, 2020. The following table presents the estimated future amortization expense for the next five fiscal years and thereafter (in thousands): Fiscal Year 2021 $ 38,528 2022 14,219 2023 6,275 2024 3,103 2025 1,472 Thereafter 1,840 Total $ 65,437 Goodwill and long-lived asset impairment expense During the third quarter of fiscal 2020, an interim goodwill impairment test was performed as of March 28, 2020. The macroeconomic impacts of the COVID-19 pandemic and the corresponding decline in the Company’s share price below tangible book value, were indicators in the third quarter of fiscal 2020, that goodwill was potentially not recoverable. The Company recorded non-cash goodwill impairment expense of $120.5 million in the third quarter of fiscal 2020, and $118.7 million in fiscal 2020, related to reporting units in the Electronic Components (EC) reportable segment including goodwill in the Americas and goodwill associated with recent acquisitions. The impairment of goodwill in such reporting units was primarily the result of COVID-19 related impacts, including the significant decline in market capitalization during the quarter, as well as a reduction in expected future operating results. In assessing goodwill for impairment in the third quarter of fiscal 2020, the Company was required to make significant judgments related to the fair value of its reporting units. The Company used a combination of an income approach, specifically a discounted cash flow methodology, and a market approach to estimate the fair value of its reporting units. The discounted cash flow methodology includes market participant assumptions for, among other factors, forecasted sales, gross profit margins, operating expenses, cash flows, perpetual growth rates and long-term discount rates, all of which required judgments and estimates by management that are inherently uncertain. The market approach methodology required significant assumptions related to comparable transactions, market multiples, capital structure and control premiums. The interim goodwill impairment testing results were also reconciled with the Company’s market capitalization on and around March 28, 2020, as the final step in the impairment testing. The Company also performed asset impairment testing over long-lived assets, including intangible assets and property, plant and equipment, as of March 28, 2020 due primarily to the same indicators that led to the interim goodwill impairment testing. As a result of such long-lived asset impairment testing, the Company recorded $25.4 million in impairment expense substantially all related to intangible assets. Other impairment expense During the third quarter of fiscal 2020, the Company also recorded $15.3 million of equity investment impairment expense classified within other (expense) income, net in the consolidated statements of operations. |
Debt
Debt | 12 Months Ended |
Jun. 27, 2020 | |
Debt | |
Debt | 7. Debt Short-term debt consists of the following (in thousands): June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Interest Rate Carrying Balance Bank credit facilities and other 5.69 % 1.02 % $ 51 $ 538 Public notes due June 2020 — 5.88 % — 300,000 Short-term debt $ 51 $ 300,538 Bank credit facilities and other consist 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. The Company has an accounts receivable Securitization Program in the United States 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 $500 million. The Securitization Program does not qualify for off-balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $703.8 million and $857.3 million at June 27, 2020, and June 29, 2019, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. The Securitization Program also requires the Company to maintain certain minimum interest coverage and leverage ratios, which the Company was in compliance with as of June 27, 2020. There were no borrowings outstanding under the Securitization Program as of June 27, 2020, and $227.3 million as of June 29, 2019. Interest on borrowings is calculated using a one-month LIBOR rate plus a spread of 0.75%. The facility fee on the unused balance of the facility is up to 0.35%. On July 31, 2020, the Company amended the Securitization Program, which was due to expire on August 19, 2020. Among other changes, the term of the Securitization Program was extended to July 30, 2021, the amount of undivided interests in eligible receivables that may be sold pursuant to the Receivables Purchase Agreement was reduced from $500,000,000 to $450,000,000, and the minimum interest coverage and maximum leverage financial covenants were eliminated. In April 2020, the Company redeemed the $300.0 million of outstanding 5.875% Notes due in June 2020 at a make-whole redemption price of $302.0 million. Long-term debt consists of the following (in thousands): June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Interest Rate Carrying Balance Revolving credit facilities: Securitization Program — 3.15 % $ — $ 227,300 Credit Facility (due June 2023) 1.28 % 5.68 % 230,000 1,100 Public notes due: December 2021 3.75 % 3.75 % 300,000 300,000 December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 Other long-term debt 1.19 % 1.00 % 1,491 403 Long-term debt before discount and debt issuance costs 1,431,491 1,428,803 Discount and debt issuance costs – unamortized (6,700) (8,881) Long-term debt $ 1,424,791 $ 1,419,922 The Company has a five-year $1.25 billion Credit Facility with a syndicate of banks, consisting of revolving credit facilities and the issuance of up to $200.0 million of letters of credit and up to $300.0 million of loans in certain approved currencies, which expires in June 2023. Subject to certain conditions, the Credit Facility may be increased up to $1.50 billion. Under the Credit Facility, the Company may select from various interest rate options, currencies and maturities. The Credit Facility contains certain covenants including various limitations on debt incurrence, share repurchases, dividends, investments and capital expenditures. The Credit Facility also includes financial covenants requiring the Company to maintain minimum interest coverage and leverage ratios, which the Company was in compliance with as of June 27, 2020. At June 27, 2020, and June 29, 2019, there were $1.6 million and $4.0 million, respectively, in letters of credit issued under the Credit Facility. On August 4, 2020, the Company amended the Credit Facility, which among other changes temporarily reduced the minimum interest coverage covenant for each four fiscal quarter period ending on or around September 30, 2020 through and including June 30, 2021 and temporarily increased the maximum leverage covenant commencing in the four fiscal quarter period ending on or around September 30, 2020 through the four fiscal quarter period ending on or around September 30, 2021. Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands): 2021 $ 51 2022 530,758 2023 350,356 2024 299 2025 78 Thereafter 550,000 Subtotal 1,431,542 Discount and debt issuance costs – unamortized (6,700) Total debt $ 1,424,842 At June 27, 2020, the carrying value and fair value of the Company’s total debt was $1.42 billion and $1.52 billion, respectively. At June 29, 2019, the carrying value and fair value of the Company’s total debt was $1.72 billion and $1.78 billion, respectively. Fair value for the public notes was estimated based upon quoted market prices and for other forms of debt fair value approximates carrying value due to the market based variable nature of the interest rates on those debt facilities. |
Accrued expenses and other
Accrued expenses and other | 12 Months Ended |
Jun. 27, 2020 | |
Accrued expenses and other | |
Accrued expenses and other | 8. Accrued expenses and other Accrued expenses and other consist of the following: June 27, 2020 June 29, 2019 (Thousands) Accrued salaries and benefits $ 200,987 $ 198,969 Accrued operating costs 121,701 107,621 Accrued interest and banking costs 24,068 17,257 Accrued restructuring costs 16,942 26,918 Accrued taxes payable 34,588 12,313 Accrued property, plant and equipment 9,009 12,957 Accrued other 65,629 37,661 Total accrued expenses and other $ 472,924 $ 413,696 |
Income taxes
Income taxes | 12 Months Ended |
Jun. 27, 2020 | |
Income taxes | |
Income taxes | 9. Income taxes The components of income tax (benefit) expense (“tax provision”) are included in the table below. The tax provision for deferred income taxes results from temporary differences arising primarily from net operating losses, inventories valuation, receivables valuation, suspended interest deductions, certain accrued amounts and depreciation and amortization, net of any changes to valuation allowances. Years Ended June 27, 2020 June 29, 2019 June 30, 2018 (Thousands) Current: Federal $ (127,312) $ (18,611) $ 255,810 State and local 17,983 8,523 (3,174) Foreign 22,816 78,988 104,156 Total current taxes (86,513) 68,900 356,792 Deferred: Federal 14,844 17,725 (70,172) State and local 4,450 580 (10,551) Foreign (31,355) (25,048) 11,897 Total deferred taxes (12,061) (6,743) (68,826) Income tax (benefit) expense $ (98,574) $ 62,157 $ 287,966 The tax provision is computed based upon income (loss) from continuing operations before income taxes from both U.S. and foreign operations. U.S. loss from continuing operations before income taxes was $253.3 million, $68.5 million and $385.1 million, in fiscal 2020, 2019 and 2018, respectively, and foreign income from continuing operations before income taxes was $125.2 million, $310.8 million and $530.2 million in fiscal 2020, 2019 and 2018, respectively. On March 27, 2020, the United States enacted the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The CARES Act is an approximately $2 trillion emergency economic stimulus package in response to the COVID-19 pandemic, which among other things contains numerous income tax provisions. The CARES Act allows net operating losses incurred in fiscal years 2019, 2020, and 2021 to be carried back to each of the five preceding taxable years to generate a refund of previously paid income taxes. The Company expects to utilize this carryback provision, which is generating a tax provision benefit in fiscal 2020. The Company changed its historical assertion as of June 27, 2020, so that all of its unremitted foreign earnings are permanently reinvested as the current year remitted foreign earnings have provided sufficient liquidity for the foreseeable future. The Company believes any unrecorded liabilities related to this assertion are not material. Reconciliations of the federal statutory tax rate to the effective tax rates are as follows: Years Ended June 27, 2020 June 29, 2019 June 30, 2018 U.S. federal statutory rate 21.0 % 21.0 % 28.0 % State and local income taxes, net of federal benefit 4.7 0.3 (6.1) Tax on foreign income, net of valuation allowances 5.1 (0.5) (23.5) Establishment/release of valuation allowances, net of U.S. tax expense (28.9) (3.2) (0.1) Change in unrecognized tax benefit reserves 20.3 17.9 (7.4) Tax audit settlements (5.6) 0.9 4.5 Impact of the Act - transition tax — 7.1 158.5 Impact of the Act - deferred tax effects — (5.6) 4.2 Impact of the CARES Act 10.3 — — Impairment of investments, including goodwill 57.1 (8.0) 35.1 Other, net (7.1) (4.2) 5.3 Effective tax rate - continuing operations 76.9 % 25.7 % 198.5 % Tax rates on foreign income represents the impact of the difference between foreign rates and the U.S. federal statutory rate applied to foreign income or loss, foreign income taxed in the U.S. at rates other than its statutory rate, and the impact of valuation allowances previously established against the Company’s otherwise realizable foreign deferred tax assets, which are primarily net operating loss carry-forwards. Avnet’s effective tax rate on loss before income taxes from continuing operations was a benefit of 76.9% in fiscal 2020 as compared with an effective tax rate of 25.7% of expense on fiscal 2019 income before income taxes. Included in the fiscal 2020 effective tax rate is a tax benefit arising from the reduction in value of certain businesses for tax purposes, partially offset by the establishment of valuation allowances against deferred tax assets that the Company no longer expects to realize the future benefit from. The Company applies the guidance in ASC 740 Income Taxes The significant components of deferred tax assets and liabilities, included in “other assets” on the consolidated balance sheets, are as follows: June 27, June 29, 2020 2019 (Thousands) Deferred tax assets: Federal, state and foreign net operating loss carry-forwards $ 237,200 $ 241,747 Depreciation and amortization 16,585 1,583 Inventories valuation 35,509 28,441 Operating lease liabilities 67,814 — Receivables valuation 11,868 9,138 Various accrued liabilities and other 102,298 41,268 471,274 322,177 Less — valuation allowances (283,721) (231,463) 187,553 90,714 Deferred tax liabilities: Operating lease assets (66,316) — Net deferred tax assets $ 121,237 $ 90,714 The change in valuation allowances in fiscal 2020 from fiscal 2019 was primarily related to the $61.4 million establishment of valuation allowance as a result of changes to management’s expectation of its ability to realize certain tax assets in the United States. As of June 27, 2020, the Company had net operating and capital loss carry-forwards of approximately $1.28 billion, of which $33.4 million will expire during fiscal 2021 and fiscal 2022, substantially all of which have full valuation allowances, $246.3 million have expiration dates ranging from fiscal 2023 to fiscal 2040, and the remaining $999.1 million have no expiration date. A significant portion of these losses are not expected to be realized in the foreseeable future and have valuation allowances against them. The carrying value of the Company’s net operating and capital loss carry-forwards is dependent upon the Company’s ability to generate sufficient future taxable income in certain tax jurisdictions. In addition, the Company considers historic levels and types of income or losses, expectations and risk associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing the need for valuation allowances as discussed further above. Estimated liabilities for unrecognized tax benefits are included in “Accrued expenses and other” and “Other liabilities” on the consolidated balance sheets. These contingent liabilities relate to various tax matters that result from uncertainties in the application of complex income tax regulations in the numerous jurisdictions in which the Company operates. As of June 27, 2020, unrecognized tax benefits were $116.5 million. The estimated liability for unrecognized tax benefits included accrued interest expense and penalties of $20.2 million and $23.4 million, net of applicable state tax benefits, as of the end of fiscal 2020 and 2019, respectively. Reconciliations of the beginning and ending liability balances for unrecognized tax benefits are as follows: June 27, 2020 June 29, 2019 (Thousands) Balance at beginning of year $ 123,765 $ 84,357 Additions for tax positions taken in prior periods 10,456 44,429 Reductions for tax positions taken in prior periods (33,880) (5,237) Reductions related to tax rate change — (254) Additions for tax positions taken in current period 23,611 11,343 Reductions related to settlements with taxing authorities (5,480) (2,001) Reductions related to the lapse of applicable statutes of limitations (21,339) (6,787) Adjustments related to foreign currency translation (841) (2,085) Balance at end of year $ 96,292 $ 123,765 The evaluation of uncertain income tax positions requires management to estimate the ability of the Company to sustain its position with applicable tax authorities and estimate the final benefit to the Company. To the extent that these estimates do not reflect the actual outcome there could be an impact on the consolidated financial statements in the period in which the position is settled, the applicable statutes of limitations expire or new information becomes available as the impact of these events are recognized in the period in which they occur. It is difficult to estimate the period in which the amount of a tax position will change as settlement may include administrative and legal proceedings where the Company cannot control the timing. The effects of settling tax positions with tax authorities and statute expirations may significantly impact the estimate for unrecognized tax benefits. Within the next twelve months, the Company estimates that approximately $16.1 million of these liabilities for unrecognized tax benefits will be settled by the expiration of the statutes of limitations or through agreement with the tax authorities for tax positions related to valuation matters and positions related to acquired entities. The expected cash payment related to the settlement of these contingencies is approximately $1.7 million. The Company conducts business globally and consequently files income tax returns in numerous jurisdictions including those listed in the following table. It is also routinely subject to audit in these and other countries. The Company is no longer subject to audit in its major jurisdictions for periods prior to fiscal 2010. The years remaining subject to audit, by major jurisdiction, are as follows: Jurisdiction Fiscal Year United States (Federal and state) 2016 - 2020 Taiwan 2015 - 2020 Hong Kong 2014 - 2020 Germany 2010 - 2020 Singapore 2016 - 2020 Belgium 2017 - 2020 United Kingdom 2018 - 2020 Canada 2011 - 2020 In connection with the sale of the TS business during fiscal 2017, several legal entities were sold to the Buyer and post-closing tax obligations are the responsibility of the Buyer. Under the terms of the sale agreement, the Company still maintains responsibility for certain pre-closing taxes including any amounts that arise from audits or other judgments received from tax authorities. The Company believes that its current estimates related to tax reserves related to the TS business are reasonable, but future changes in facts and circumstances could results in significant changes in estimates that impact tax expense from discontinued operations in the period of change. |
Pension and retirement plan
Pension and retirement plan | 12 Months Ended |
Jun. 27, 2020 | |
Pension and retirement plan | |
Pension and retirement plans | 10. Pension and retirement plans Pension Plan The Company has a noncontributory defined benefit pension plan that covers substantially all current or former U.S. Employees (the “Plan”). The Company’s Plan meets the definition of a defined benefit plan and as a result, the Company applies ASC 715 pension accounting to the Plan. The Plan 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 stated account balances. The 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. Employees are eligible to participate in the Plan following the first year of service during which they worked at least 1,000 hours. The Plan provides defined benefits pursuant to a cash balance feature whereby a participant accumulates a benefit based upon a percentage of current salary, which varies with age, and interest credits. The Company uses its fiscal year end as the measurement date for determining pension expense and benefit obligations for each fiscal year. The following table outlines changes in benefit obligations, plan assets and the funded status of the Plan as of the end of fiscal 2020 and 2019: June 27, June 29, 2020 2019 (Thousands) Changes in benefit obligations: Benefit obligations at beginning of year $ 731,695 $ 685,160 Service cost 15,145 14,631 Interest cost 22,552 26,354 Actuarial loss 72,144 55,118 Benefits paid (51,357) (49,610) Plan amendments — 42 Benefit obligations at end of year $ 790,179 $ 731,695 Changes in plan assets: Fair value of plan assets at beginning of year $ 664,063 $ 659,038 Actual return on plan assets 87,094 46,635 Benefits paid (51,357) (49,610) Contributions 8,000 8,000 Fair value of plan assets at end of year $ 707,800 $ 664,063 Funded status of the plan recognized as a non-current liability $ (82,379) $ (67,632) Amounts recognized in accumulated other comprehensive loss: Unrecognized net actuarial losses $ 256,477 $ 235,384 Unamortized prior service cost 332 2,470 $ 256,809 $ 237,854 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss $ 35,721 $ 62,002 Net prior service cost — 42 Amortization of net actuarial losses (14,629) (9,251) Amortization of prior service (costs) credits (2,137) 1,571 $ 18,955 $ 54,364 Included in accumulated other comprehensive loss at June 27, 2020, is a before tax expense of $256.5 million of net actuarial losses that have not yet been recognized in net periodic pension cost, of which $20.6 million is expected to be recognized as a component of net periodic pension cost during fiscal 2021. Also included is a before tax net cost of $0.3 million of prior service costs that have not yet been recognized in net periodic pension costs, of which $0.3 million is expected to be recognized as a component of net periodic pension costs during fiscal 2021. Assumptions used to calculate actuarial present values of benefit obligations are as follows: 2020 2019 Discount rate 2.7 % 3.5 % The discount rate selected by the Company for the Plan reflects the current rate at which the underlying liability could be settled at the measurement date as of June 27, 2020. The estimated discount rate in fiscal 2020 and fiscal 2019 was based on the spot yield curve approach, which applies the individual spot rates from a highly rated bond yield curve to each future year’s estimated cash flows. Assumptions used to determine net benefit costs are as follows: 2020 2019 Discount rate 3.3 % 4.1 % Expected return on plan assets 7.7 % 8.0 % Components of net periodic pension cost for the Plan during the last three fiscal years are as follows: Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands) Service cost $ 15,145 $ 14,631 $ 15,834 Total net periodic pension cost within selling, general and administrative expenses 15,145 14,631 15,834 Interest cost 22,552 26,354 23,732 Expected return on plan assets (50,671) (53,518) (54,686) Amortization of prior service cost (credit) 2,137 (1,571) (1,573) Recognized net actuarial loss 14,629 9,251 14,404 Total net periodic pension benefit within other (expense) income, net (11,353) (19,484) (18,123) Net periodic pension cost (benefit) $ 3,792 $ (4,853) $ (2,289) The Company made $8.0 million and $8.0 million of contributions in fiscal 2020 and fiscal 2019, respectively, and expects to make approximately $16.0 million of contributions in fiscal 2021. Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands): 2021 $ 49,144 2022 41,897 2023 44,868 2024 46,817 2025 48,149 2026 through 2030 259,412 The Plan’s assets are held in trust and were allocated as follows as of the measurement date at the end of fiscal 2020 and 2019: 2020 2019 Return seeking investments 62 % 58 % Fixed income investments 36 % 42 % Cash and cash equivalents 2 % — The general investment objectives of the Plan are to maximize returns through a diversified investment portfolio in order to earn annualized returns that exceed the long-term cost of funding the Plan’s pension obligations while maintaining reasonable and prudent levels of risk. The expected return on the Plan’s assets in fiscal 2021 is currently 7.4%, which represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation based upon the targeted investment allocations. This assumption has been determined by combining expectations regarding future rates of return for the investment portfolio along with the historical and expected distribution of investments by asset class and the historical rates of return for each of those asset classes. The mix of return seeking and fixed income investments is typically diversified. The Plan’s assets do not include any investments in Avnet common stock. As of June 27, 2020, the Company’s target allocation for the Plan’s investment portfolio is for return seeking investments to represent approximately 65% of the investment portfolio. The majority of the remaining portfolio of investments is to be invested in fixed income investments, which typically have lower risks, but also lower returns. The following table sets forth the fair value of the Plan’s investments as of June 27, 2020: Level 1 Level 2 Level 3 Net Asset Value Total (Thousands) Cash and cash equivalents $ 13,243 $ — $ — $ — $ 13,243 Return Seeking Investments: Common stocks — — — 254,917 254,917 Real estate — — — 81,817 81,817 High yield credit and bonds — — — 103,925 103,925 Fixed Income Investments: U.S. government — — — 218,573 218,573 Corporate — — — 35,325 35,325 Total $ 13,243 $ — $ — $ 694,557 $ 707,800 Certain investments included in the table above are measured at fair value using the net asset value per share (or its equivalent) practical expedient and are not included in the three levels of the fair value hierarchy. The following table sets forth the fair value of the Plan’s investments as of June 29, 2019: Level 1 Level 2 Level 3 Total (Thousands) Cash and cash equivalents $ 2,441 $ — $ — $ 2,441 Equities: U.S. common stocks — 254,139 — 254,139 International common stocks — 131,847 — 131,847 Fixed Income: U.S. government agencies — 97,015 — 97,015 U.S. and international corporate bonds — 153,891 — 153,891 Other — 24,730 — 24,730 Total $ 2,441 $ 661,622 $ — $ 664,063 Each of these investments may be redeemed without restrictions in the normal course of business and there were no material unfunded commitments as of June 27, 2020. |
Leases
Leases | 12 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Leases | 11. Leases The components of lease cost related to the Company’s operating leases were as follows (in thousands): Year Ended June 27, 2020 Operating lease cost $ 75,748 Variable lease cost 20,804 Total lease cost $ 96,552 Future minimum operating lease payments as of June 27, 2020, are as follows (in thousands): Fiscal Year 2021 $ 61,497 2022 52,951 2023 44,975 2024 34,665 2025 29,215 Thereafter 152,229 Total future operating lease payments 375,532 Total imputed interest on operating lease liabilities (68,500) Total operating lease liabilities $ 307,032 Prior to the Company’s adoption of ASC 842, future minimum operating lease payments as of June 29, 2019 were as follows (in thousands) on an undiscounted basis and excluding non-lease components: Fiscal Year 2020 $ 68,710 2021 52,225 2022 42,069 2023 32,245 2024 23,305 Thereafter 85,196 Total lease payments $ 303,750 Other information pertaining to operating leases consists of the following: Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 9.9 Weighted-average discount rate 3.9 % Supplemental cash flow information related to the Company’s operating leases for the year ended June 27, 2020, was as follows (in thousands): Supplemental Cash Flow Information: Cash paid for operating lease liabilities $ 60,957 Operating lease assets obtained from new operating lease liabilities 51,747 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Jun. 27, 2020 | |
Stock-based compensation | |
Stock-based compensation | 12. Stock-based compensation The Company measures all stock-based payments at fair value and recognizes related expense within selling, general and administrative expenses in the consolidated statements of operations over the requisite service period (generally the vesting period). During fiscal 2020, 2019, and 2018, the Company recorded stock-based compensation expense of $26.8 million, $30.1 million, and $24.0 million, respectively, for all forms of stock-based compensation awards. Stock plan At June 27, 2020, the Company had 7.7 million shares of common stock reserved for stock-based payments, which consisted of 1.5 million shares for unvested or unexercised stock options, 4.7 million shares available for stock-based awards under plans approved by shareholders, and 1.5 million shares for restricted stock units and performance share units granted but not yet vested. Stock options Service based stock option grants have a contractual life of ten years, vest in 25% increments on each anniversary of the grant date, commencing with the first anniversary, and require an exercise price of 100% of the fair market value of common stock at the date of grant. Stock-based compensation expense associated with all stock options during fiscal 2020, 2019 and 2018 was $2.9 million, $2.2 million and $(0.2) million, respectively. The fair value of stock options is estimated as of the date of grant using the Black-Scholes model based on the assumptions in the following table. The assumption for the expected term is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on U.S. Treasury rates as of the date of grant with maturity dates approximately equal to the expected term at the grant date. The historical volatility of Avnet’s common stock is used as the basis for the volatility assumption. The Company estimates dividend yield based upon expectations of future dividends compared to the market value of the Company’s stock as of the grant date. Years Ended June 27, June 29, June 30, 2020 2019 2018 Expected term (years) 6.0 6.0 6.0 Risk-free interest rate 1.6 % 2.8 % 2.0 % Weighted average volatility 23.7 % 23.1 % 26.3 % Dividend yield 2.3 % 1.8 % 2.0 % The following is a summary of the changes in outstanding options for fiscal 2020: Weighted Weighted Average Average Remaining Shares Exercise Price Contractual Life Outstanding at June 29, 2019 1,236,639 $ 40.90 78 Months Granted 383,984 39.72 110 Months Exercised (37,349) 24.98 5 Months Forfeited or expired (45,605) 42.61 93 Months Outstanding at June 27, 2020 1,537,669 $ 40.94 75 Months Exercisable at June 27, 2020 756,570 $ 39.88 56 Months The weighted-average grant-date fair values of stock options granted during fiscal 2020, 2019 and 2018 were $7.41, $10.74 and $8.33, respectively. At June 27, 2020, the aggregate intrinsic value of all outstanding stock option awards and all exercisable stock option awards were inconsequential. The following is a summary of the changes in non-vested stock options for the fiscal year 2020: Weighted Average Grant-Date Shares Fair Value Non-vested stock options at June 29, 2019 691,473 $ 10.00 Granted 383,984 7.41 Vested (248,753) 10.08 Forfeited (45,605) 9.42 Non-vested stock options at June 27, 2020 781,099 $ 8.73 As of June 27, 2020, there was $2.7 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of stock options vested, as of the vesting dates, during fiscal 2020, 2019 and 2018 were $7.9 million, $5.7 million and $3.6 million, respectively. Cash received from stock option exercises during fiscal 2020, 2019, and 2018 totaled $0.9 million, $20.2 million, and $9.2 million, respectively. The impact of these cash receipts is included in “Other, net” within financing activities in the accompanying consolidated statements of cash flows. Restricted stock units Delivery of restricted stock units, and the associated compensation expense, is recognized over the vesting period and is generally subject to the employee’s continued service to the Company, except for employees who are retirement eligible under the terms of the restricted stock units. As of June 27, 2020, 1.0 million shares previously awarded have not yet vested. Stock-based compensation expense associated with restricted stock units was $26.1 million, $23.7 million and $23.0 million for fiscal years 2020, 2019 and 2018, respectively. The following is a summary of the changes in non-vested restricted stock units during fiscal 2020: Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock units at June 29, 2019 909,177 $ 42.03 Granted 812,412 38.06 Vested (616,852) 40.20 Forfeited (88,915) 40.94 Non-vested restricted stock units at June 27, 2020 1,015,822 $ 40.06 As of June 27, 2020, there was $ 23.0 million of total unrecognized compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 2.1 years. The total fair value of restricted stock units vested during fiscal 2020, 2019 and 2018 was $24.8 million, $25.7 million and $26.0 million, respectively. Performance share units Certain eligible employees, including Avnet’s executive officers, may receive a portion of their long-term stock-based compensation through the performance share program, which allows for the vesting of shares based upon achievement of certain performance-based criteria (“Performance Share Program”). The Performance Share Program provides for the vesting to each grantee of a number of shares of Avnet’s common stock at the end of a three-year performance period based upon the Company’s achievement of certain performance goals established by the Compensation Committee of the Board of Directors for each Performance Share Program three-year performance period. The performance goals consist of a combination of measures including earnings per share, economic profit, return on capital employed and total shareholder return. During each of fiscal 2020, 2019 and 2018, the Company granted 0.2 million performance share units. The actual amount of performance share units vested at the end of each three-year period is measured based upon the actual level of achievement of the defined performance goals and can range from 0% to 200% of the award grant. During fiscal 2020, 2019 and 2018, the Company recognized stock-based compensation expense associated with the Performance Share Program of $(3.8) million, $2.8 million and $0.2 million, respectively. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 27, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | 13. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in various lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations, 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. A s of June 27, 2020, and June 29, 2019, the Company had aggregate estimated liabilities of $ 18.8 million and $14.7 million, respectively classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates. |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 27, 2020 | |
Earnings per share | |
Earnings per share | 14. Earnings per share Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands, except per share data) Numerator: Income (loss) from continuing operations $ (29,533) $ 180,111 $ (142,889) Loss from discontinued operations, net of tax (1,548) (3,774) (13,535) Net (loss) income $ (31,081) $ 176,337 $ (156,424) Denominator: Weighted average common shares for basic earnings per share 100,474 109,820 119,909 Net effect of dilutive stock based compensation awards — 978 — Weighted average common shares for diluted earnings per share 100,474 110,798 119,909 Basic (loss) earnings per share - continuing operations $ (0.29) $ 1.64 $ (1.19) Basic loss per share - discontinued operations (0.02) (0.03) (0.11) Basic (loss) earnings per share $ (0.31) $ 1.61 $ (1.30) Diluted (loss) earnings per share - continuing operations $ (0.29) $ 1.63 $ (1.19) Diluted loss per share - discontinued operations (0.02) (0.04) (0.11) Diluted (loss) earnings per share $ (0.31) $ 1.59 $ (1.30) Stock options excluded from earnings per share calculation due to anti-dilutive effect 1,431 410 1,495 For the fiscal years ended June 27, 2020, and June 30, 2018, the diluted net loss per share is the same as the basic net loss per share as the effect of all potential common shares would be anti-dilutive. |
Additional cash flow informatio
Additional cash flow information | 12 Months Ended |
Jun. 27, 2020 | |
Additional cash flow information | |
Additional cash flow information | 15. Additional cash flow information The “Other, net” component of non-cash and other reconciling items within operating activities in the consolidated statements of cash flows consisted of the following during the last three fiscal years: June 27, June 29, June 30, 2020 2019 2018 (Thousands) Provision for doubtful accounts receivable $ 12,111 $ 10,360 $ 6,033 Periodic pension cost 4,246 (4,256) 26,057 Other, net 28,692 (27,369) 11,755 Total $ 45,049 $ (21,265) $ 43,845 Non-cash investing and financing activities and supplemental cash flow information were as follows: Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 9,009 $ 12,957 $ 23,400 Non-cash Financing Activities: Unsettled share repurchases — $ 1,404 $ 3,425 Supplemental Cash Flow Information: Interest $ 137,995 $ 144,822 $ 99,929 Income tax net payments 25,116 172,834 113,130 The Company includes book overdrafts as part of accounts payable on its consolidated balance sheets and reflects changes in such balances as part of cash flows from operating activities in its consolidated statements of cash flows. |
Segment information
Segment information | 12 Months Ended |
Jun. 27, 2020 | |
Segment information | |
Segment information | 16. Segment information Electronic Components (“EC”) and Farnell are the Company’s reportable segments (“operating groups”). EC markets and sells semiconductors and interconnect, passive and electromechanical devices and integrated components to a diverse customer base serving many end-markets. Farnell distributes electronic components and related products to the electronic system design community utilizing multi-channel sales and marketing resources. Years Ended June 27, June 29, June 30, 2020 2019 2018 (Millions) Sales: Electronic Components $ 16,340.1 $ 18,060.3 $ 17,543.6 Farnell 1,294.2 1,458.3 1,493.3 $ 17,634.3 $ 19,518.6 $ 19,036.9 Operating income (loss): Electronic Components $ 349.1 $ 614.9 $ 587.3 Farnell 75.5 159.3 151.9 424.6 774.2 739.2 Corporate (121.6) (78.5) (111.5) Restructuring, integration and other expenses (81.9) (108.1) (145.1) Goodwill and intangible asset impairment expenses (144.1) (137.4) (181.4) Amortization of acquired intangible assets and other (81.6) (84.3) (91.9) $ (4.6) $ 365.9 $ 209.2 Assets: Electronic Components $ 6,096.7 $ 6,795.0 $ 7,510.1 Farnell 1,472.1 1,580.3 1,598.7 Corporate 536.4 189.3 488.0 $ 8,105.2 $ 8,564.6 $ 9,596.8 Capital expenditures: Electronic Components $ 46.3 $ 80.1 $ 127.5 Farnell 19.6 34.0 19.1 Corporate 7.6 8.6 9.3 $ 73.5 $ 122.7 $ 155.9 Depreciation & amortization expense: Electronic Components $ 88.4 $ 86.6 $ 133.3 Farnell 88.5 88.5 94.5 Corporate 5.3 5.7 7.1 $ 182.2 $ 180.8 $ 234.9 Sales, by geographic area: Americas (1) $ 4,755.3 $ 5,135.8 $ 5,011.4 EMEA (2) 5,753.4 6,762.9 6,790.9 Asia/Pacific (3) 7,125.6 7,619.9 7,234.6 $ 17,634.3 $ 19,518.6 $ 19,036.9 Property, plant and equipment, net, by geographic area: Americas (4) $ 183.9 $ 213.8 $ 276.2 EMEA (5) 183.4 200.4 204.8 Asia/Pacific 37.3 38.0 41.9 $ 404.6 $ 452.2 $ 522.9 (1) Includes sales in the United States of $4.46 billion, $ 4.80 billion and $4.64 billion for fiscal 2020, 2019 and 2018, respectively. (2) Includes sales in Germany and Belgium of $2.20 billion and $1.09 billion, respectively, for fiscal 2020. Includes sales in Germany and Belgium of $2.66 billion and $1.16 billion, respectively, for fiscal 2019. Includes sales in Germany and Belgium of $2.66 billion and $1.08 billion, respectively, for fiscal 2018. (3) Includes sales of $3.07 billion, $2.33 billion and $955.4 million in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2020. Includes sales of $3.20 billion, $2.52 billion and $1.02 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2019. Includes sales of $2.71 billion, $2.63 billion and $949.5 million in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2018. (4) Includes property, plant and equipment, net, of $179.4 million, $209.9 million and $271.4 million in the United States for fiscal 2020, 2019 and 2018, respectively. (5) Includes property, plant and equipment, net, of $84.9 million, $72.7 million and $22.4 million in Germany, the UK and Belgium, respectively, for fiscal 2020. Fiscal 2019 includes property, plant and equipment, net, of $95.2 million, $70.5 million and $25.2 million in Germany, the UK and Belgium, respectively. Fiscal 2018 includes property, plant and equipment, net, of $99.4 million, $52.5 million and $43.4 million in Germany, the UK and Belgium, respectively. Listed in the table below are the Company’s major product categories and the related sales for each of the past three fiscal years: Years Ended June 27, June 29, June 30, 2020 2019 2018 (Millions) Semiconductors $ 13,440.3 $ 14,973.3 $ 14,890.9 Interconnect, passive & electromechanical (IP&E) 3,146.0 3,516.0 3,227.0 Computers 572.0 533.1 461.9 Other 476.0 496.2 457.1 $ 17,634.3 $ 19,518.6 $ 19,036.9 |
Restructuring expenses
Restructuring expenses | 12 Months Ended |
Jun. 27, 2020 | |
Restructuring expenses | |
Restructuring expenses | 17. Restructuring expenses Fiscal 2020 During fiscal 2020, the Company undertook restructuring actions in order to improve operating efficiencies and further integrate the acquisition of Farnell. 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 and asset impairments associated with restructuring activities established during fiscal 2020 is presented in the following table: Facility and Contract Asset Severance Exit Costs Impairments Total (Thousands) Fiscal 2020 restructuring expenses $ 34,689 $ 3,743 $ 7,111 $ 45,543 Cash payments (24,063) (2,615) — (26,678) Non-cash amounts — — (7,111) (7,111) Other, principally foreign currency translation (15) (27) — (42) Balance at June 27, 2020 $ 10,611 $ 1,101 $ — $ 11,712 Severance expense recorded in fiscal 2020 related to the reduction, or planned reduction, of over 500 employees, primarily in executive management, operations, information technology, warehouse, sales and business support functions. Asset impairments relate primarily to software long-lived assets that were impaired as a result of the restructuring of information technology operations including the re-prioritization of information technology initiatives and resources. Of the $45.5 million in restructuring expenses recorded during fiscal 2020, $32.4 million related to EC, $10.2 million related to Farnell and $2.9 million related to Corporate. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2021. Fiscal 2019 and prior During fiscal 2019 and prior, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during fiscal 2020 related to the restructuring liabilities from continuing operations established during fiscal 2019 and prior: Facility and Contract Severance Exit Costs Total (Thousands) Balance at June 29, 2019 $ 21,537 $ 5,381 $ 26,918 Cash payments (14,321) (3,409) (17,730) Changes in estimates, net (3,713) 379 (3,334) Other, principally foreign currency translation (539) (85) (624) Balance at June 27, 2020 $ 2,964 $ 2,266 $ 5,230 The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2021. |
Valuation And Qualifying Accoun
Valuation And Qualifying Accounts | 12 Months Ended |
Jun. 27, 2020 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | SCHEDULE II AVNET, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended June 27, 2020, June 29, 2019, and June 30, 2018 Balance at Charged to Charged to Balance at Beginning of Expense Other End of Account Description Period (Income) Accounts Deductions Period (Thousands) Fiscal 2020 Allowance for doubtful accounts $ 53,499 $ 12,111 $ — $ (6,592) (a) $ 59,018 Valuation allowance on tax loss carry-forwards 231,463 50,018 (b) 2,240 (c) — 283,721 Fiscal 2019 Allowance for doubtful accounts 48,959 $ 10,360 — (5,820) (a) 53,499 Valuation allowance on tax loss carry-forwards 239,483 (5,274) (d) (2,746) (e) — 231,463 Fiscal 2018 Allowance for doubtful accounts 47,272 6,033 — (4,346) (a) 48,959 Valuation allowance on tax loss carry-forwards 241,687 (4,704) (d) 2,500 (e) — 239,483 (a) Uncollectible receivables written off. (b) Primarily represents establishment of valuation allowance and impact of current year activities. (c) Primarily related to impact of pension-related other comprehensive income and foreign currency exchange on valuation allowances. (d) Primarily represents a reduction due to the release of a valuation allowance. (e) Primarily related to impact of prior year activities and foreign currency exchange on valuation allowances previously established in various foreign jurisdictions. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 27, 2020 | |
Summary of significant accounting policies | |
Basis of presentation | Basis of presentation |
Reclassifications | Reclassifications |
Fiscal year | Fiscal year |
Management estimates | Management estimates |
Cash and cash equivalents | Cash and cash equivalents |
Inventories | Inventories |
Depreciation, amortization and useful lives | Depreciation, amortization and useful lives Property, plant, and equipment is depreciated using the straight-line method over its estimated useful lives. The estimated useful lives for property, plant, and equipment are typically as follows: buildings — 30 years; machinery, fixtures and equipment — 2-10 years; information technology hardware and software — 2-10 years; and leasehold improvements — over the applicable lease term or economic useful life if shorter. The Company amortizes intangible assets acquired in business combinations or asset combinations using the straight-line method over the estimated economic useful lives of the intangible assets from the date of acquisition, which is generally between 5-10 years. |
Long-lived assets impairment | Long-lived asset impairment |
Leases | Leases The Company determines if an arrangement contains a lease at inception based on whether it conveys the right to control the use of an identified asset in exchange for consideration. Lease right-of-use assets (“operating lease assets”) and associated liabilities (“operating lease liabilities”) are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Certain lease agreements may include one or more options to extend or terminate a lease. Lease terms are inclusive of these options if it is reasonably certain that the Company will exercise such options. The Company’s leases generally do not provide a readily determinable implicit borrowing rate, as such, the discount rate used to calculate present value is based upon an estimate of the Company’s secured borrowing rate. The estimated secured borrowing rates used at the date of adoption for each lease varies in accordance with the lease term and the currency of the lease payments. Lease cost is recognized on a straight-line basis over the lease term and is included as a component of “Selling, general, and administrative expenses” in the consolidated statements of operations. Lease payments are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the measurement of operating lease assets and liabilities. |
Goodwill | Goodwill intangible asset impairment expenses in the consolidated statements of operations. Impairment testing is performed at the reporting unit level, which is defined as the same, or one level below, an operating segment. The Company will perform an interim impairment test between required annual tests if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. In performing goodwill impairment testing, the Company may first make a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value. If the qualitative assessment indicates it is more-likely-than-not that a reporting unit’s fair value is not greater than its carrying value, the Company must perform a quantitative impairment test. The Company defines the fair value of a reporting unit as the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants as of the impairment test date. To determine the fair value of a reporting unit, the Company uses the income methodology of valuation, which includes the discounted cash flow method, and the market methodology of valuation, which considers values of comparable businesses to estimate the fair value of the Company’s reporting units. Significant management judgment is required when estimating the fair value of the Company’s reporting units from a market participant perspective including forecasting of future operating results and the discount rates used in the discounted cash flow method of valuation, and in the selection of comparable businesses and related market multiples that are used in the market method of valuation. If the estimated fair value of a reporting unit exceeds the carrying value assigned to that reporting unit, goodwill is not impaired. If the estimated fair value of a reporting unit is less than the carrying value assigned to that reporting unit, then a goodwill impairment loss is measured based on such difference. |
Foreign currency translation | Foreign currency translation |
Income taxes | Income taxes The Company establishes contingent liabilities for potentially unfavorable outcomes of positions taken on certain tax matters. These liabilities are based on management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by the relevant tax authorities. There may be differences between the estimated and actual outcomes of these matters that may result in future changes in estimates to such unrecognized tax benefits. To the extent such changes in estimates are required, the Company’s effective tax rate may potentially fluctuate as a result. In accordance with the Company’s accounting policies, accrued interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. |
Revenue recognition | Revenue recognition For contracts related to the specialized manufacture of products for customers with no alternative use and for which the Company has an enforceable right to payment, including a reasonable profit margin, the Company recognizes revenue over time as control of the products transfer through the manufacturing process. The contract assets associated with such specialized manufacturing products are not material as these contracts represent less than 2% of the Company’s total sales. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. The Company estimates different forms of variable consideration at the time of sale based on historical experience, current conditions and contractual obligations. Revenue is recorded net of customer discounts and rebates. When the Company offers the right or has a history of accepting returns of product, historical experience is utilized to establish a liability for the estimate of expected returns and an asset for the right to recover the product expected to be returned. These adjustments are made in the same period as the underlying sales transactions. The Company considers the following indicators amongst others when determining whether it is acting as a principal in the contract where revenue would be recorded on a gross basis: (i) the Company is primarily responsible for fulfilling the promise to provide the specified products or services; (ii) the Company has inventory risk before the specified products have been transferred to a customer or after transfer of control to the customer; and (iii) the Company has discretion in establishing the price for the specified products or services. If a transaction does not meet the Company's indicators of being a principal in the transaction, then the Company is acting as an agent in the transaction and the associated revenues are recognized on a net basis. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. The Company has elected to treat shipping and handling of product as a fulfillment activity. The practical expedient not to disclose information about remaining performance obligations has also been elected as these contracts have an original duration of one |
Vendor allowances and consideration | Vendor allowances and consideration depending upon the nature and contractual requirements related to the consideration received. Some of these supplier programs require management to make estimates and may extend over one or more reporting periods. |
Comprehensive income (loss) | Comprehensive income (loss) |
Share-based compensation | Stock-based compensation |
Restructuring and exit activities | Restructuring and exit activities Nonretirement Postemployment Benefits Exit or Disposal Cost Obligations Exit or Disposal Cost Obligations Property, Plant and Equipment |
Business Combinations | Business combinations |
Concentration of credit risk | Concentration of credit risk |
Fair value | Fair value Fair Value Measurements million, respectively, of cash equivalents that were measured at fair value based upon Level 1 criteria. See Note 3 for discussion of the fair value of the Company’s derivative financial instruments, Note 7 for discussion of the fair value of the Company’s long-term debt and Note 10 for a discussion of the fair value of the Company’s pension plan assets. |
Derivative financial instruments | Derivative financial instruments |
Investments | Investments |
Accounts receivable securitization | Accounts receivable securitization |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements “Leases (Topic 842),” The adoption of ASC 842 did not have a material impact on the Company’s consolidated statements of operations or retained earnings. The Company elected the package of practical expedients permitted under the transition guidance that allowed, among other things, the historical lease classification to be carried forward without reassessment and the hindsight practical expedient. The Company elected to not separate lease and non-lease components for its real estate leases. Refer to Note 11 for additional disclosures related to leases. In August 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities” |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Derivative financial instruments | |
Schedule of derivative instruments in the balance sheet | June 27, June 29, 2020 2019 (Thousands) Prepaid and other current assets $ 18,989 $ 5,511 Accrued expenses and other 15,605 6,154 |
Schedule of gain (loss) on derivatives | Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands) Net derivative financial instrument gain $ 12,739 $ 84 $ 2,735 |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Shareholders' equity | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following table includes the balances within accumulated other comprehensive loss: June 27, June 29, June 30, 2020 2019 2018 (Thousands) Accumulated translation adjustments and other $ (199,151) $ (142,469) $ (78,848) Accumulated pension liability adjustments, net of income taxes (189,229) (161,570) (116,503) Total accumulated other comprehensive loss $ (388,380) $ (304,039) $ (195,351) |
Property plant and equipment,_2
Property plant and equipment, net (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Property plant and equipment, net | |
Summary of Property, plant and equipment | June 27, 2020 June 29, 2019 (Thousands) Buildings $ 124,007 $ 121,847 Machinery, fixtures and equipment 242,347 224,838 Information technology hardware and software 809,182 799,324 Leasehold improvements 117,036 107,659 Depreciable property, plant and equipment, gross 1,292,572 1,253,668 Accumulated depreciation (938,002) (886,062) Depreciable property, plant and equipment, net 354,570 367,606 Land 23,618 23,874 Construction in progress 26,419 60,691 Property, plant and equipment, net $ 404,607 $ 452,171 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Goodwill and intangible assets | |
Change in goodwill balances by reportable segment | Electronic Components Farnell Total (Thousands) Carrying value at June 29, 2019 (1) $ 390,896 $ 485,832 $ 876,728 Additions from acquisitions 28,819 — 28,819 Impairment of goodwill (118,731) — (118,731) Foreign currency translation (3,148) (9,934) (13,082) Carrying value at June 27, 2020 (2) $ 297,836 $ 475,898 $ 773,734 (1) Includes accumulated impairment of $1,045,110 from fiscal 2009, $181,440 from fiscal 2018 and $137,396 from fiscal 2019. (2) Includes accumulated impairment of $1,045,110 from fiscal 2009, $181,440 from fiscal 2018, $137,396 from fiscal 2019 and $118,731 from fiscal 2020. |
Company's identifiable acquired intangible assets | June 27, 2020 June 29, 2019 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount (1) Amortization Value Amount Amortization Value (Thousands) Customer related $ 300,937 $ (266,759) $ 34,178 $ 292,266 $ (208,329) $ 83,937 Trade name 51,698 (32,493) 19,205 52,760 (24,752) 28,008 Technology and other 53,641 (41,587) 12,054 63,753 (32,178) 31,575 $ 406,276 $ (340,839) $ 65,437 $ 408,779 $ (265,259) $ 143,520 |
Estimated future amortization expense | The following table presents the estimated future amortization expense for the next five fiscal years and thereafter (in thousands): Fiscal Year 2021 $ 38,528 2022 14,219 2023 6,275 2024 3,103 2025 1,472 Thereafter 1,840 Total $ 65,437 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Debt | |
Short-term debt | Short-term debt consists of the following (in thousands): June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Interest Rate Carrying Balance Bank credit facilities and other 5.69 % 1.02 % $ 51 $ 538 Public notes due June 2020 — 5.88 % — 300,000 Short-term debt $ 51 $ 300,538 |
Long-term debt | Long-term debt consists of the following (in thousands): June 27, June 29, June 27, June 29, 2020 2019 2020 2019 Interest Rate Carrying Balance Revolving credit facilities: Securitization Program — 3.15 % $ — $ 227,300 Credit Facility (due June 2023) 1.28 % 5.68 % 230,000 1,100 Public notes due: December 2021 3.75 % 3.75 % 300,000 300,000 December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 Other long-term debt 1.19 % 1.00 % 1,491 403 Long-term debt before discount and debt issuance costs 1,431,491 1,428,803 Discount and debt issuance costs – unamortized (6,700) (8,881) Long-term debt $ 1,424,791 $ 1,419,922 |
Aggregate debt maturities | Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands): 2021 $ 51 2022 530,758 2023 350,356 2024 299 2025 78 Thereafter 550,000 Subtotal 1,431,542 Discount and debt issuance costs – unamortized (6,700) Total debt $ 1,424,842 |
Accrued expenses and other (Tab
Accrued expenses and other (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Accrued expenses and other | |
Schedule of accrued expenses and other | June 27, 2020 June 29, 2019 (Thousands) Accrued salaries and benefits $ 200,987 $ 198,969 Accrued operating costs 121,701 107,621 Accrued interest and banking costs 24,068 17,257 Accrued restructuring costs 16,942 26,918 Accrued taxes payable 34,588 12,313 Accrued property, plant and equipment 9,009 12,957 Accrued other 65,629 37,661 Total accrued expenses and other $ 472,924 $ 413,696 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Income taxes | |
Components of income tax expense ("tax provision") | Years Ended June 27, 2020 June 29, 2019 June 30, 2018 (Thousands) Current: Federal $ (127,312) $ (18,611) $ 255,810 State and local 17,983 8,523 (3,174) Foreign 22,816 78,988 104,156 Total current taxes (86,513) 68,900 356,792 Deferred: Federal 14,844 17,725 (70,172) State and local 4,450 580 (10,551) Foreign (31,355) (25,048) 11,897 Total deferred taxes (12,061) (6,743) (68,826) Income tax (benefit) expense $ (98,574) $ 62,157 $ 287,966 |
Reconciliations of the federal statutory tax rate to the effective tax rates | Years Ended June 27, 2020 June 29, 2019 June 30, 2018 U.S. federal statutory rate 21.0 % 21.0 % 28.0 % State and local income taxes, net of federal benefit 4.7 0.3 (6.1) Tax on foreign income, net of valuation allowances 5.1 (0.5) (23.5) Establishment/release of valuation allowances, net of U.S. tax expense (28.9) (3.2) (0.1) Change in unrecognized tax benefit reserves 20.3 17.9 (7.4) Tax audit settlements (5.6) 0.9 4.5 Impact of the Act - transition tax — 7.1 158.5 Impact of the Act - deferred tax effects — (5.6) 4.2 Impact of the CARES Act 10.3 — — Impairment of investments, including goodwill 57.1 (8.0) 35.1 Other, net (7.1) (4.2) 5.3 Effective tax rate - continuing operations 76.9 % 25.7 % 198.5 % |
Components of deferred tax assets and liabilities | June 27, June 29, 2020 2019 (Thousands) Deferred tax assets: Federal, state and foreign net operating loss carry-forwards $ 237,200 $ 241,747 Depreciation and amortization 16,585 1,583 Inventories valuation 35,509 28,441 Operating lease liabilities 67,814 — Receivables valuation 11,868 9,138 Various accrued liabilities and other 102,298 41,268 471,274 322,177 Less — valuation allowances (283,721) (231,463) 187,553 90,714 Deferred tax liabilities: Operating lease assets (66,316) — Net deferred tax assets $ 121,237 $ 90,714 |
Reconciliation of the beginning and ending liability balances for unrecognized tax benefits | June 27, 2020 June 29, 2019 (Thousands) Balance at beginning of year $ 123,765 $ 84,357 Additions for tax positions taken in prior periods 10,456 44,429 Reductions for tax positions taken in prior periods (33,880) (5,237) Reductions related to tax rate change — (254) Additions for tax positions taken in current period 23,611 11,343 Reductions related to settlements with taxing authorities (5,480) (2,001) Reductions related to the lapse of applicable statutes of limitations (21,339) (6,787) Adjustments related to foreign currency translation (841) (2,085) Balance at end of year $ 96,292 $ 123,765 |
Years remaining subject to audit, by major jurisdiction | Jurisdiction Fiscal Year United States (Federal and state) 2016 - 2020 Taiwan 2015 - 2020 Hong Kong 2014 - 2020 Germany 2010 - 2020 Singapore 2016 - 2020 Belgium 2017 - 2020 United Kingdom 2018 - 2020 Canada 2011 - 2020 |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Table outlining changes in benefit obligations, plan assets and the funded status of the Plan | June 27, June 29, 2020 2019 (Thousands) Changes in benefit obligations: Benefit obligations at beginning of year $ 731,695 $ 685,160 Service cost 15,145 14,631 Interest cost 22,552 26,354 Actuarial loss 72,144 55,118 Benefits paid (51,357) (49,610) Plan amendments — 42 Benefit obligations at end of year $ 790,179 $ 731,695 Changes in plan assets: Fair value of plan assets at beginning of year $ 664,063 $ 659,038 Actual return on plan assets 87,094 46,635 Benefits paid (51,357) (49,610) Contributions 8,000 8,000 Fair value of plan assets at end of year $ 707,800 $ 664,063 Funded status of the plan recognized as a non-current liability $ (82,379) $ (67,632) Amounts recognized in accumulated other comprehensive loss: Unrecognized net actuarial losses $ 256,477 $ 235,384 Unamortized prior service cost 332 2,470 $ 256,809 $ 237,854 Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial loss $ 35,721 $ 62,002 Net prior service cost — 42 Amortization of net actuarial losses (14,629) (9,251) Amortization of prior service (costs) credits (2,137) 1,571 $ 18,955 $ 54,364 |
Weighted average assumptions used to calculate actuarial present values of benefit obligations | 2020 2019 Discount rate 2.7 % 3.5 % |
Weighted average assumptions used to determine net benefit costs | 2020 2019 Discount rate 3.3 % 4.1 % Expected return on plan assets 7.7 % 8.0 % |
Components of net periodic pension costs | Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands) Service cost $ 15,145 $ 14,631 $ 15,834 Total net periodic pension cost within selling, general and administrative expenses 15,145 14,631 15,834 Interest cost 22,552 26,354 23,732 Expected return on plan assets (50,671) (53,518) (54,686) Amortization of prior service cost (credit) 2,137 (1,571) (1,573) Recognized net actuarial loss 14,629 9,251 14,404 Total net periodic pension benefit within other (expense) income, net (11,353) (19,484) (18,123) Net periodic pension cost (benefit) $ 3,792 $ (4,853) $ (2,289) |
Benefit payments expected to be paid to Plan participants | Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands): 2021 $ 49,144 2022 41,897 2023 44,868 2024 46,817 2025 48,149 2026 through 2030 259,412 |
Plan's assets allocation | 2020 2019 Return seeking investments 62 % 58 % Fixed income investments 36 % 42 % Cash and cash equivalents 2 % — |
Fair value of Plan investments | The following table sets forth the fair value of the Plan’s investments as of June 27, 2020: Level 1 Level 2 Level 3 Net Asset Value Total (Thousands) Cash and cash equivalents $ 13,243 $ — $ — $ — $ 13,243 Return Seeking Investments: Common stocks — — — 254,917 254,917 Real estate — — — 81,817 81,817 High yield credit and bonds — — — 103,925 103,925 Fixed Income Investments: U.S. government — — — 218,573 218,573 Corporate — — — 35,325 35,325 Total $ 13,243 $ — $ — $ 694,557 $ 707,800 Certain investments included in the table above are measured at fair value using the net asset value per share (or its equivalent) practical expedient and are not included in the three levels of the fair value hierarchy. The following table sets forth the fair value of the Plan’s investments as of June 29, 2019: Level 1 Level 2 Level 3 Total (Thousands) Cash and cash equivalents $ 2,441 $ — $ — $ 2,441 Equities: U.S. common stocks — 254,139 — 254,139 International common stocks — 131,847 — 131,847 Fixed Income: U.S. government agencies — 97,015 — 97,015 U.S. and international corporate bonds — 153,891 — 153,891 Other — 24,730 — 24,730 Total $ 2,441 $ 661,622 $ — $ 664,063 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease cost related to the Company’s operating leases were as follows (in thousands): Year Ended June 27, 2020 Operating lease cost $ 75,748 Variable lease cost 20,804 Total lease cost $ 96,552 |
Schedule of future minimum operating lease payments | Future minimum operating lease payments as of June 27, 2020, are as follows (in thousands): Fiscal Year 2021 $ 61,497 2022 52,951 2023 44,975 2024 34,665 2025 29,215 Thereafter 152,229 Total future operating lease payments 375,532 Total imputed interest on operating lease liabilities (68,500) Total operating lease liabilities $ 307,032 |
Minimum operating lease commitments principally for buildings | Prior to the Company’s adoption of ASC 842, future minimum operating lease payments as of June 29, 2019 were as follows (in thousands) on an undiscounted basis and excluding non-lease components: Fiscal Year 2020 $ 68,710 2021 52,225 2022 42,069 2023 32,245 2024 23,305 Thereafter 85,196 Total lease payments $ 303,750 |
Schedule of other information pertaining to operating leases | Other information pertaining to operating leases consists of the following: Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 9.9 Weighted-average discount rate 3.9 % |
Schedule of supplemental cash flow information | Supplemental cash flow information related to the Company’s operating leases for the year ended June 27, 2020, was as follows (in thousands): Supplemental Cash Flow Information: Cash paid for operating lease liabilities $ 60,957 Operating lease assets obtained from new operating lease liabilities 51,747 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Stock-based compensation | |
Summary of the assumptions used to estimate the fair value of stock options | Years Ended June 27, June 29, June 30, 2020 2019 2018 Expected term (years) 6.0 6.0 6.0 Risk-free interest rate 1.6 % 2.8 % 2.0 % Weighted average volatility 23.7 % 23.1 % 26.3 % Dividend yield 2.3 % 1.8 % 2.0 % |
Summary of the changes in outstanding options | Weighted Weighted Average Average Remaining Shares Exercise Price Contractual Life Outstanding at June 29, 2019 1,236,639 $ 40.90 78 Months Granted 383,984 39.72 110 Months Exercised (37,349) 24.98 5 Months Forfeited or expired (45,605) 42.61 93 Months Outstanding at June 27, 2020 1,537,669 $ 40.94 75 Months Exercisable at June 27, 2020 756,570 $ 39.88 56 Months |
Summary of the changes in non-vested stock options | Weighted Average Grant-Date Shares Fair Value Non-vested stock options at June 29, 2019 691,473 $ 10.00 Granted 383,984 7.41 Vested (248,753) 10.08 Forfeited (45,605) 9.42 Non-vested stock options at June 27, 2020 781,099 $ 8.73 |
Summary of the changes in non-vested restricted incentive shares | Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock units at June 29, 2019 909,177 $ 42.03 Granted 812,412 38.06 Vested (616,852) 40.20 Forfeited (88,915) 40.94 Non-vested restricted stock units at June 27, 2020 1,015,822 $ 40.06 |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Earnings per share | |
Basic and diluted earnings per share calculation | Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands, except per share data) Numerator: Income (loss) from continuing operations $ (29,533) $ 180,111 $ (142,889) Loss from discontinued operations, net of tax (1,548) (3,774) (13,535) Net (loss) income $ (31,081) $ 176,337 $ (156,424) Denominator: Weighted average common shares for basic earnings per share 100,474 109,820 119,909 Net effect of dilutive stock based compensation awards — 978 — Weighted average common shares for diluted earnings per share 100,474 110,798 119,909 Basic (loss) earnings per share - continuing operations $ (0.29) $ 1.64 $ (1.19) Basic loss per share - discontinued operations (0.02) (0.03) (0.11) Basic (loss) earnings per share $ (0.31) $ 1.61 $ (1.30) Diluted (loss) earnings per share - continuing operations $ (0.29) $ 1.63 $ (1.19) Diluted loss per share - discontinued operations (0.02) (0.04) (0.11) Diluted (loss) earnings per share $ (0.31) $ 1.59 $ (1.30) Stock options excluded from earnings per share calculation due to anti-dilutive effect 1,431 410 1,495 |
Additional cash flow informat_2
Additional cash flow information (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Additional cash flow information | |
Noncash and other reconciling items within operating activities | June 27, June 29, June 30, 2020 2019 2018 (Thousands) Provision for doubtful accounts receivable $ 12,111 $ 10,360 $ 6,033 Periodic pension cost 4,246 (4,256) 26,057 Other, net 28,692 (27,369) 11,755 Total $ 45,049 $ (21,265) $ 43,845 |
Interest and income taxes paid | Years Ended June 27, June 29, June 30, 2020 2019 2018 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 9,009 $ 12,957 $ 23,400 Non-cash Financing Activities: Unsettled share repurchases — $ 1,404 $ 3,425 Supplemental Cash Flow Information: Interest $ 137,995 $ 144,822 $ 99,929 Income tax net payments 25,116 172,834 113,130 |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Segment information | |
Table of the Company's segments and the related financial information for each | Years Ended June 27, June 29, June 30, 2020 2019 2018 (Millions) Sales: Electronic Components $ 16,340.1 $ 18,060.3 $ 17,543.6 Farnell 1,294.2 1,458.3 1,493.3 $ 17,634.3 $ 19,518.6 $ 19,036.9 Operating income (loss): Electronic Components $ 349.1 $ 614.9 $ 587.3 Farnell 75.5 159.3 151.9 424.6 774.2 739.2 Corporate (121.6) (78.5) (111.5) Restructuring, integration and other expenses (81.9) (108.1) (145.1) Goodwill and intangible asset impairment expenses (144.1) (137.4) (181.4) Amortization of acquired intangible assets and other (81.6) (84.3) (91.9) $ (4.6) $ 365.9 $ 209.2 Assets: Electronic Components $ 6,096.7 $ 6,795.0 $ 7,510.1 Farnell 1,472.1 1,580.3 1,598.7 Corporate 536.4 189.3 488.0 $ 8,105.2 $ 8,564.6 $ 9,596.8 Capital expenditures: Electronic Components $ 46.3 $ 80.1 $ 127.5 Farnell 19.6 34.0 19.1 Corporate 7.6 8.6 9.3 $ 73.5 $ 122.7 $ 155.9 Depreciation & amortization expense: Electronic Components $ 88.4 $ 86.6 $ 133.3 Farnell 88.5 88.5 94.5 Corporate 5.3 5.7 7.1 $ 182.2 $ 180.8 $ 234.9 Sales, by geographic area: Americas (1) $ 4,755.3 $ 5,135.8 $ 5,011.4 EMEA (2) 5,753.4 6,762.9 6,790.9 Asia/Pacific (3) 7,125.6 7,619.9 7,234.6 $ 17,634.3 $ 19,518.6 $ 19,036.9 Property, plant and equipment, net, by geographic area: Americas (4) $ 183.9 $ 213.8 $ 276.2 EMEA (5) 183.4 200.4 204.8 Asia/Pacific 37.3 38.0 41.9 $ 404.6 $ 452.2 $ 522.9 (1) Includes sales in the United States of $4.46 billion, $ 4.80 billion and $4.64 billion for fiscal 2020, 2019 and 2018, respectively. (2) Includes sales in Germany and Belgium of $2.20 billion and $1.09 billion, respectively, for fiscal 2020. Includes sales in Germany and Belgium of $2.66 billion and $1.16 billion, respectively, for fiscal 2019. Includes sales in Germany and Belgium of $2.66 billion and $1.08 billion, respectively, for fiscal 2018. (3) Includes sales of $3.07 billion, $2.33 billion and $955.4 million in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2020. Includes sales of $3.20 billion, $2.52 billion and $1.02 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2019. Includes sales of $2.71 billion, $2.63 billion and $949.5 million in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2018. (4) Includes property, plant and equipment, net, of $179.4 million, $209.9 million and $271.4 million in the United States for fiscal 2020, 2019 and 2018, respectively. (5) Includes property, plant and equipment, net, of $84.9 million, $72.7 million and $22.4 million in Germany, the UK and Belgium, respectively, for fiscal 2020. Fiscal 2019 includes property, plant and equipment, net, of $95.2 million, $70.5 million and $25.2 million in Germany, the UK and Belgium, respectively. Fiscal 2018 includes property, plant and equipment, net, of $99.4 million, $52.5 million and $43.4 million in Germany, the UK and Belgium, respectively. |
Table of the Company's major product categories and the related sales for each | Years Ended June 27, June 29, June 30, 2020 2019 2018 (Millions) Semiconductors $ 13,440.3 $ 14,973.3 $ 14,890.9 Interconnect, passive & electromechanical (IP&E) 3,146.0 3,516.0 3,227.0 Computers 572.0 533.1 461.9 Other 476.0 496.2 457.1 $ 17,634.3 $ 19,518.6 $ 19,036.9 |
Restructuring expenses (Tables)
Restructuring expenses (Tables) | 12 Months Ended |
Jun. 27, 2020 | |
Fiscal Year 2020 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility and Contract Asset Severance Exit Costs Impairments Total (Thousands) Fiscal 2020 restructuring expenses $ 34,689 $ 3,743 $ 7,111 $ 45,543 Cash payments (24,063) (2,615) — (26,678) Non-cash amounts — — (7,111) (7,111) Other, principally foreign currency translation (15) (27) — (42) Balance at June 27, 2020 $ 10,611 $ 1,101 $ — $ 11,712 |
Fiscal Year 2019 And Prior Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility and Contract Severance Exit Costs Total (Thousands) Balance at June 29, 2019 $ 21,537 $ 5,381 $ 26,918 Cash payments (14,321) (3,409) (17,730) Changes in estimates, net (3,713) 379 (3,334) Other, principally foreign currency translation (539) (85) (624) Balance at June 27, 2020 $ 2,964 $ 2,266 $ 5,230 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2018 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Property, Plant and Equipment [Line Items] | ||||
Fiscal year | 364 days | 364 days | 364 days | |
Maximum percentage of sales recognized over time | 2.00% | |||
Revenue, Remaining Performance Obligation, Optional Exemption, Performance Obligation [true false] | true | |||
Maximum payment terms | 1 year | |||
Fair value assets transfers level 2 to level 1 | $ 0 | $ 0 | $ 0 | |
Fair value assets transfers into and out of level 3, net | $ 0 | 0 | $ 0 | |
Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset, useful life | 5 years | |||
Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Intangible asset, useful life | 10 years | |||
Level 1 | ||||
Property, Plant and Equipment [Line Items] | ||||
Fair value of Cash equivalents recorded based upon level 1 | $ 20,900,000 | $ 9,400,000 | ||
Building | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 30 years | |||
Machinery Fixtures And Equipment | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 10 years | |||
Machinery Fixtures And Equipment | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 2 years | |||
Information Technology Hardware and Software | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 10 years | |||
Information Technology Hardware and Software | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Useful life | 2 years |
Acquisitions and discontinued_2
Acquisitions and discontinued operations - Acquisitions (Details) | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Acquisitions and discontinued operations | |
Number of Businesses Acquired | 2 |
Derivative financial instrume_3
Derivative financial instruments Textuals (Details) - USD ($) | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Minimum | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than one year) | 60 days | |
Maximum | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than one year) | 1 year | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Prepaid and other current assets | ||
Derivative fair value | ||
Derivative assets fair value | $ 18,989,000 | $ 5,511,000 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Accrued expenses and other | ||
Derivative fair value | ||
Derivative liabilities fair value | $ 15,605,000 | $ 6,154,000 |
Derivative financial instrume_4
Derivative financial instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Derivative financial instruments | |||
Net derivative financial instrument (loss) gain | $ 12,739 | $ 84 | $ 2,735 |
Shareholders' equity (Details)
Shareholders' equity (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 |
Illustration of accumulated balances of comprehensive income | |||
Accumulated translation adjustments and other | $ (199,151) | $ (142,469) | $ (78,848) |
Accumulated pension liability adjustments, net of income taxes | (189,229) | (161,570) | (116,503) |
Total accumulated other comprehensive loss | $ (388,380) | $ (304,039) | $ (195,351) |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 12 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | Aug. 29, 2019 | |
Shareholders' equity | ||||
Authorized repurchase of common stock under Share Repurchase Program | $ 2,950,000 | |||
Shares repurchased during period (in shares) | 5.9 | |||
Stock Repurchased And Retired During Period Price Per Share | $ 40.28 | |||
Cost of repurchase | $ 236,400 | |||
Aggregate number of shares repurchased since inception (in shares) | 64.7 | |||
Aggregate cost of shares repurchased since inception | $ 2,480,000 | |||
Remaining authorized repurchase amount | $ 469,000 | |||
Cash dividends paid per common share | $ 0.84 | $ 0.80 | $ 0.74 | |
Dividends paid on common stock | $ 83,975 | $ 87,158 | $ 88,255 |
Property plant and equipment,_3
Property plant and equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | $ 1,292,572 | $ 1,253,668 | |
Accumulated depreciation | (938,002) | (886,062) | |
Total Property, plant and equipment, net | 404,607 | 452,171 | $ 522,900 |
Depreciable property, plant and equipment, net | 354,570 | 367,606 | |
Land | 23,618 | 23,874 | |
Construction in progress | 26,419 | 60,691 | |
Depreciation and amortization expense | 101,100 | 97,160 | $ 143,397 |
Building | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 124,007 | 121,847 | |
Machinery Fixtures And Equipment | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 242,347 | 224,838 | |
Information Technology Hardware and Software | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 809,182 | 799,324 | |
Leasehold Improvements | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | $ 117,036 | $ 107,659 |
Property plant and equipment -
Property plant and equipment - New ERP System (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
ERP System | Restructuring Integration And Other Expenses | |||
Change in Accounting Estimate [Line Items] | |||
Accelerated depreciation | $ 10.9 | $ 11.3 | $ 52.9 |
Goodwill and intangible asset_2
Goodwill and intangible assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 04, 2009 | |
Carrying amount of goodwill, by reportable segment | |||||
Carrying value | $ 876,728 | ||||
Additions from acquisitions | 28,819 | ||||
Impairment of goodwill | (118,731) | ||||
Foreign currency translation | (13,082) | ||||
Carrying value | 773,734 | ||||
Accumulated Impairment | 118,731 | $ 137,396 | $ 181,440 | $ 1,045,110 | |
Electronic Components | |||||
Carrying amount of goodwill, by reportable segment | |||||
Carrying value | 390,896 | ||||
Additions from acquisitions | 28,819 | ||||
Impairment of goodwill | $ (120,500) | (118,731) | |||
Foreign currency translation | (3,148) | ||||
Carrying value | 297,836 | ||||
Farnell | |||||
Carrying amount of goodwill, by reportable segment | |||||
Carrying value | 485,832 | ||||
Additions from acquisitions | |||||
Foreign currency translation | (9,934) | ||||
Carrying value | $ 475,898 |
Goodwill and intangible asset_3
Goodwill and intangible assets Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | $ 406,276 | $ 408,779 | |
Accumulated Amortization | (340,839) | (265,259) | |
Net Book Value | 65,437 | 143,520 | |
Intangible asset impairment | $ 17,473 | ||
Customer related | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | 300,937 | 292,266 | |
Accumulated Amortization | (266,759) | (208,329) | |
Net Book Value | 34,178 | 83,937 | |
Trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | 51,698 | 52,760 | |
Accumulated Amortization | (32,493) | (24,752) | |
Net Book Value | 19,205 | 28,008 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired amount | 53,641 | 63,753 | |
Accumulated Amortization | (41,587) | (32,178) | |
Net Book Value | $ 12,054 | $ 31,575 |
Goodwill and intangible asset_4
Goodwill and intangible assets Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 28, 2020 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment expense | $ 118,731 | |||
Weighted average life of intangible assets | 2 years | |||
Intangible asset amortization expense | $ 81,139 | $ 83,682 | $ 91,475 | |
Impairment of long lived assets including intangible assets | 25,400 | |||
Investment impairment | 15,300 | |||
Electronic Components | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment expense | $ 120,500 | $ 118,731 |
Goodwill and intangible asset_5
Goodwill and intangible assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Fiscal Year: | ||
2021 | $ 38,528 | |
2022 | 14,219 | |
2023 | 6,275 | |
2024 | 3,103 | |
2025 | 1,472 | |
Thereafter | 1,840 | |
Net Book Value | $ 65,437 | $ 143,520 |
Debt - short-term debt (Details
Debt - short-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Apr. 25, 2020 | |
Bank credit facilities and other | |||
Components of short-term debt | |||
Short-term Debt, Weighted Average Interest Rate | 5.69% | 1.02% | |
Short-term debt | $ 51 | $ 538 | |
Notes Due June 2020 | |||
Components of short-term debt | |||
stated interest rate | 5.88% | 5.875% | |
Short-term debt | $ 300,000 | ||
Debt instrument face amount | $ 300,000 | ||
Debt redeemed | $ 302,000 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Debt Instrument [Line Items] | ||
Long-term debt before discount and debt issuance costs | $ 1,431,491 | $ 1,428,803 |
Discount and debt issuance costs - unamortized | (6,700) | (8,881) |
Long-term debt | $ 1,424,791 | $ 1,419,922 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 1.19% | 1.00% |
Long-term debt before discount and debt issuance costs | $ 1,491 | $ 403 |
Revolving credit facilities | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 1.28% | 5.68% |
Long-term debt before discount and debt issuance costs | $ 230,000 | $ 1,100 |
Revolving credit facilities | Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 3.15% | |
Long-term debt before discount and debt issuance costs | $ 227,300 | |
Notes due | Notes Due December 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 3.75% | 3.75% |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 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 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) | 12 Months Ended | |||
Jun. 27, 2020 | Jul. 31, 2020 | Jul. 30, 2020 | Jun. 29, 2019 | |
Debt Instrument [Line Items] | ||||
Accounts Receivable from Securitization | $ 703,800,000 | $ 857,300,000 | ||
Company's total debt | ||||
Debt, Long-term and Short-term, Combined Amount | 1,424,842,000 | 1,720,000,000 | ||
Total fair value | $ 1,520,000,000 | 1,780,000,000 | ||
Base Rate Or Commercial Paper | ||||
Debt Instrument [Line Items] | ||||
Spread over base rate | 0.75% | |||
Accounts receivable securitization program | ||||
Debt Instrument [Line Items] | ||||
Accounts Receivable Securitization Program Maximum Borrowing Amount | $ 500,000,000 | |||
Receivables securitization program maximum amount of eligible receivables that may be sold | $ 450,000,000 | $ 500,000,000 | ||
Accounts receivable securitization program, borrowings outstanding | $ 0 | 227,300,000 | ||
Line of Credit Facility, Commitment Fee Percentage | 0.35% | |||
Revolving credit facilities | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | $ 1,250,000,000 | |||
Term | 5 years | |||
Line of credit facility contingent increase to maximum borrowing capacity | $ 1,500,000,000 | |||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | 200,000,000 | |||
Letters of credit outstanding, amount | 1,600,000 | $ 4,000,000 | ||
Notes Payable In Certain Approved Currencies | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | $ 300,000,000 |
Debt (Maturity Schedule) (Detai
Debt (Maturity Schedule) (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Debt | ||
2020 | $ 51 | |
2021 | 530,758 | |
2022 | 350,356 | |
2023 | 299 | |
2024 | 78 | |
Thereafter | 550,000 | |
Subtotal | 1,431,542 | |
Discount on debt issuance costs - unamortized | (6,700) | |
Total debt | $ 1,424,842 | $ 1,720,000 |
Accrued expenses and other (Det
Accrued expenses and other (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Accrued expenses and other | ||
Accrued salaries and benefits | $ 200,987 | $ 198,969 |
Accrued operating costs | 121,701 | 107,621 |
Accrued interest and banking costs | 24,068 | 17,257 |
Accrued restructuring costs | 16,942 | 26,918 |
Accrued income taxes | 34,588 | 12,313 |
Accrued property, plant and equipment | 9,009 | 12,957 |
Accrued other | 65,629 | 37,661 |
Total accrued expenses and other | $ 472,924 | $ 413,696 |
Income taxes (Provision for Inc
Income taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Current: | |||
Federal | $ (127,312) | $ (18,611) | $ 255,810 |
State and Local | 17,983 | 8,523 | (3,174) |
Foreign | 22,816 | 78,988 | 104,156 |
Total current taxes | (86,513) | 68,900 | 356,792 |
Deferred: | |||
Federal | 14,844 | 17,725 | (70,172) |
State and Local | 4,450 | 580 | (10,551) |
Foreign | (31,355) | (25,048) | 11,897 |
Total deferred taxes | (12,061) | (6,743) | (68,826) |
Income tax (benefit) expense | $ (98,574) | $ 62,157 | $ 287,966 |
Income taxes (Details)
Income taxes (Details) | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income taxes | |||
U.S. federal statutory rate | 21.00% | 21.00% | 28.00% |
Effective tax rate | 76.90% | 25.70% | 198.50% |
Income taxes (Effective Tax Rat
Income taxes (Effective Tax Rate) (Details) | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Reconciliation between federal statutory tax rate and effective tax rate | |||
U.S. federal statutory rate | 21.00% | 21.00% | 28.00% |
State and local income taxes, net of federal benefit | 4.70% | 0.30% | (6.10%) |
Tax on foreign income, net of valuation allowances | 5.10% | (0.50%) | (23.50%) |
Establishment/release of valuation allowance, net of U.S. tax expense | (28.90%) | (3.20%) | (0.10%) |
Change in unrecognized tax benefit reserves | 20.30% | 17.90% | (7.40%) |
Tax audit settlements | (5.60%) | 0.90% | 4.50% |
Impact of the Act - transition tax | 0.071 | 1.585 | |
Impact of the Act - deferred tax effects | (5.60%) | 4.20% | |
Impact of the CARES Act | 10.30% | ||
Impairment of investments, including goodwill | 57.10% | (8.00%) | 35.10% |
Other, net | (7.10%) | (4.20%) | 5.30% |
Effective Income Tax Rate - continuing operations | 76.90% | 25.70% | 198.50% |
Income taxes (Deferred Assets a
Income taxes (Deferred Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Deferred tax assets: | ||
Federal, state and foreign net operating loss carry-forwards | $ 237,200 | $ 241,747 |
Depreciation and amortization | 16,585 | 1,583 |
Inventories valuation | 35,509 | 28,441 |
Operating lease liabilities | 67,814 | |
Receivables valuation | 11,868 | 9,138 |
Various accrued liabilities and other | 102,298 | 41,268 |
Deferred tax assets, gross | 471,274 | 322,177 |
Less - valuation allowance | (283,721) | (231,463) |
Deferred tax assets, net | 187,553 | 90,714 |
Deferred tax liabilities: | ||
Operating lease assets | (66,316) | |
Net deferred tax assets | $ 121,237 | $ 90,714 |
Income taxes (Unrecognized Tax
Income taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Reconciliation of the beginning and ending accrual balance for unrecognized tax benefits | ||
Balance at beginning of year | $ 123,765 | $ 84,357 |
Additions for tax positions taken in prior periods | 10,456 | 44,429 |
Reductions for tax positions taken in prior periods | (33,880) | (5,237) |
Reductions related to tax rate change | (254) | |
Additions for tax positions taken in current period | 23,611 | 11,343 |
Reductions related to settlements with taxing authorities | (5,480) | (2,001) |
Reductions related to the lapse of applicable statutes of limitations | (21,339) | (6,787) |
Adjustments related to foreign currency translation | (841) | (2,085) |
Balance at end of year | $ 96,292 | $ 123,765 |
Income taxes - Textuals (Detail
Income taxes - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Income taxes | |||
Loss before income taxes, Domestic | $ 253,300 | $ 68,500 | $ 385,100 |
Income before income taxes, Foreign | $ 125,200 | $ 310,800 | $ 530,200 |
Effective tax rate | 76.90% | 25.70% | 198.50% |
Deferred tax assets | $ 187,553 | $ 90,714 | |
Decrease in valuation allowance due to expiring losses with a related valuation allowance | 61,400 | ||
Net operating loss carry forward | 1,280,000 | ||
Operating loss carry forward, subject to expiration | 33,400 | ||
Deferred tax assets operating loss carry forwards expiring in next three years and after | 246,300 | ||
Operating loss carry forward, not subject to expiration | 999,100 | ||
Unrecognized tax benefits including interest and penalties | 116,500 | ||
Accrued interest expense and penalties | 20,200 | $ 23,400 | |
Tax contingencies settled | 16,100 | ||
Expected cash payment for settlement | $ 1,700 |
Pension and retirement plans (P
Pension and retirement plans (Pension Plans) (Details) $ in Thousands | Jul. 01, 2020 | Jun. 27, 2020USD ($)item | Jun. 29, 2019USD ($) | Jun. 30, 2018USD ($) |
Changes in benefit obligations: | ||||
The minimum hours that must be worked in a year, in order that the employee becomes eligible to join the pension plan in the following year. | item | 1,000 | |||
Benefit obligations at beginning of year | $ 731,695 | $ 685,160 | ||
Service cost | 15,145 | 14,631 | $ 15,834 | |
Interest cost | 22,552 | 26,354 | 23,732 | |
Actuarial loss | 72,144 | 55,118 | ||
Benefits paid | (51,357) | (49,610) | ||
Plan Amendments | 42 | |||
Benefit obligations at end of year | 790,179 | 731,695 | 685,160 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 664,063 | 659,038 | ||
Actual return on plan assets | 87,094 | 46,635 | ||
Benefits paid | (51,357) | (49,610) | ||
Contributions | 8,000 | 8,000 | ||
Fair value of plan assets at end of year | 707,800 | 664,063 | $ 659,038 | |
Funded status of the plan recognized as a non-current liability | (82,379) | (67,632) | ||
Amounts recognized in accumulated other comprehensive income: | ||||
Unrecognized net actuarial losses | 256,477 | 235,384 | ||
Unamortized prior service cost | 332 | 2,470 | ||
Amount recognized in accumulated other comprehensive income | 256,809 | 237,854 | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | ||||
Net actuarial loss | 35,721 | 62,002 | ||
Net Prior Service Cost | 42 | |||
Amortization of net actuarial losses | (14,629) | (9,251) | ||
Amortization of prior service (costs) credits | (2,137) | 1,571 | ||
Other changes in plan assets and benefit obligations recognized in other comprehensive income | 18,955 | $ 54,364 | ||
Unrecognized actuarial losses expected to be recognized in net periodic pension cost during following year | 20,600 | |||
Unrecognized prior service credit Expected to be recognized net periodic pension cost during following year | $ 300 | |||
Weighted average assumptions used to calculate actuarial present values of benefit obligations | ||||
Discount rate | 2.70% | 3.50% | ||
Weighted average assumptions used to determine net benefit costs | ||||
Discount rate | 3.30% | 4.10% | ||
Expected return on plan assets | 7.40% | 7.70% | 8.00% |
Pension and retirement plans _2
Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 03, 2021 | |
Components of net periodic pension costs | ||||
Service cost | $ 15,145 | $ 14,631 | $ 15,834 | |
Interest cost | 22,552 | 26,354 | 23,732 | |
Expected return on plan assets | (50,671) | (53,518) | (54,686) | |
Amortization of prior service cost (credit) | 2,137 | (1,571) | (1,573) | |
Recognized net actuarial loss | 14,629 | 9,251 | 14,404 | |
Net periodic pension cost (benefit) | 3,792 | (4,853) | (2,289) | |
Contributions | 8,000 | 8,000 | ||
Selling, General and Administrative Expenses | ||||
Components of net periodic pension costs | ||||
Net periodic pension cost (benefit) | 15,145 | 14,631 | 15,834 | |
Other Income, net | ||||
Components of net periodic pension costs | ||||
Net periodic pension cost (benefit) | $ (11,353) | $ (19,484) | $ (18,123) | |
Forecast | ||||
Components of net periodic pension costs | ||||
Estimated future employer pension plan contributions | $ 16,000 |
Pension and retirement plans (B
Pension and retirement plans (Benefit Payments) (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2021 | $ 49,144 |
2022 | 41,897 |
2023 | 44,868 |
2024 | 46,817 |
2025 | 48,149 |
2026 through 2030 | $ 259,412 |
Pension and retirement plans _3
Pension and retirement plans (Plan Asset Allocations) (Details) | Jul. 01, 2020 | Jun. 27, 2020 | Jun. 29, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 7.40% | 7.70% | 8.00% |
Return seeking investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 62.00% | 58.00% | |
Target allocation percentage of investments return seeking investments | 65.00% | ||
Fixed income investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 36.00% | 42.00% | |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Actual plan asset allocations | 2.00% |
Pension and retirement plans (F
Pension and retirement plans (Fair Value) (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 707,800 | $ 664,063 | $ 659,038 |
Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 707,800 | 664,063 | |
Recurring | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,243 | 2,441 | |
Recurring | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 254,917 | ||
Recurring | U.S. common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 254,139 | ||
Recurring | International common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 131,847 | ||
Recurring | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 81,817 | ||
Recurring | High yield credit and bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 103,925 | ||
Recurring | U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218,573 | 97,015 | |
Recurring | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 35,325 | 153,891 | |
Recurring | Other Debt Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 24,730 | ||
Level 1 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,243 | 2,441 | |
Level 1 | Recurring | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 13,243 | 2,441 | |
Level 2 | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 661,622 | ||
Level 2 | Recurring | U.S. common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 254,139 | ||
Level 2 | Recurring | International common stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 131,847 | ||
Level 2 | Recurring | U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 97,015 | ||
Level 2 | Recurring | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 153,891 | ||
Level 2 | Recurring | Other Debt Obligations | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 24,730 | ||
Net Asset Value | Recurring | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 694,557 | ||
Net Asset Value | Recurring | Common Stocks | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 254,917 | ||
Net Asset Value | Recurring | Real Estate | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 81,817 | ||
Net Asset Value | Recurring | High yield credit and bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 103,925 | ||
Net Asset Value | Recurring | U.S. government | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 218,573 | ||
Net Asset Value | Recurring | Corporate bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 35,325 |
Leases (Details)
Leases (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2020USD ($) | |
Lease Cost | |
Operating lease cost | $ 75,748 |
Variable lease cost | 20,804 |
Total lease cost | $ 96,552 |
Leases (Operating Lease Commitm
Leases (Operating Lease Commitments) (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 |
Leases [Abstract] | ||
2021 | $ 61,497 | |
2022 | 52,951 | |
2023 | 44,975 | |
2024 | 34,665 | |
2025 | 29,215 | |
Thereafter | 152,229 | |
Total future operating lease payments | 375,532 | |
Total imputed interest on operating lease liabilities | (68,500) | |
Total operating lease liabilities | $ 307,032 | |
2020 | $ 68,710 | |
2021 | 52,225 | |
2022 | 42,069 | |
2023 | 32,245 | |
2024 | 23,305 | |
Thereafter | 85,196 | |
Total | $ 303,750 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2020USD ($) | |
Leases [Abstract] | |
Operating lease weighted-average remaining lease term | 9 years 10 months 24 days |
Operating lease weighted-average discount rate | 3.90% |
Cash paid for operating lease liabilities | $ 60,957 |
Operating lease assets obtained from new operating lease liabilities | $ 51,747 |
Stock-based compensation (Fair
Stock-based compensation (Fair Value Assumptions) (Details) | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Volatility assumption on the basis of Avnet's Stock | |||
Expected term (years) | 6 years | 6 years | 6 years |
Risk-free interest rate | 1.60% | 2.80% | 2.00% |
Weighted average volatility | 23.70% | 23.10% | 26.30% |
Dividend yield | 2.30% | 1.80% | 2.00% |
Stock-based compensation (Optio
Stock-based compensation (Options Outstanding) (Details) - $ / shares | 12 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Shares | ||
Beginning balance | 1,236,639 | |
Granted | 383,984 | |
Exercised | (37,349) | |
Forfeited or expired | (45,605) | |
Ending balance | 1,537,669 | 1,236,639 |
Exercisable at June 27, 2020 | 756,570 | |
Weighted Average Exercise Price | ||
Beginning balance | $ 40.90 | |
Granted | 39.72 | |
Exercised | 24.98 | |
Forfeited or expired | 42.61 | |
Ending balance | 40.94 | $ 40.90 |
Exercisable at June 27, 2020 | $ 39.88 | |
Weighted Average Remaining Contractual Life | ||
Granted | 110 months | |
Exercised | 5 months | |
Forfeited or expired | 93 months | |
outstanding Balance | 75 months | 78 months |
Exercisable | 56 months |
Stock-based compensation (Non v
Stock-based compensation (Non vested) (Details) - $ / shares | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Shares | |||
Beginning balance | 691,473 | ||
Granted | 383,984 | ||
Vested | (248,753) | ||
Forfeited | (45,605) | ||
Ending balance | 781,099 | 691,473 | |
Weighted Average Grant-Date Fair Value | |||
Beginning balance | $ 10 | ||
Granted | 7.41 | $ 10.74 | $ 8.33 |
Vested | 10.08 | ||
Forfeited | 9.42 | ||
Ending balance | $ 8.73 | $ 10 | |
Restricted incentive shares | |||
Shares | |||
Ending balance | 1,000,000 |
Stock-based compensation (Non-V
Stock-based compensation (Non-Vested restricted Incentive Shares) (Details) - Restricted incentive shares | 12 Months Ended |
Jun. 27, 2020$ / sharesshares | |
Shares | |
Beginning balance | shares | 909,177 |
Granted | shares | 812,412 |
Vested | shares | (616,852) |
Forfeited | shares | (88,915) |
Ending balance | shares | 1,015,822 |
Weighted Average Grant-Date Fair Value | |
Beginning balance | $ / shares | $ 42.03 |
Granted | $ / shares | 38.06 |
Vested | $ / shares | 40.20 |
Forfeited | $ / shares | 40.94 |
Ending balance | $ / shares | $ 40.06 |
Stock-based compensation (Textu
Stock-based compensation (Textuals) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 26.8 | $ 30.1 | $ 24 |
Common stock of shares reserved for stock option and stock incentive plans | 7,700,000 | ||
Stock options granted but not yet vested and vested but not yet exercised | 1,537,669 | 1,236,639 | |
Contractual life of stock option grants | 10 years | ||
Percentage vesting increment on each anniversary of the grant date | 25.00% | ||
Exercise price as a percentage of share fair market value at date of grant | 100.00% | ||
Granted | $ 7.41 | $ 10.74 | $ 8.33 |
Total fair value of shares vested | $ 7.9 | $ 5.7 | $ 3.6 |
Cash received from exercise of stock options | $ 0.9 | 20.2 | 9.2 |
Performance shares vesting range, minimum | 0.00% | ||
Performance shares vesting range, maximum | 200.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 2.9 | 2.2 | (0.2) |
Shares available for grant | 1,500,000 | ||
Total unrecognized compensation cost related to non vested awards | $ 2.7 | ||
Weighted average period for expected recognition of compensation cost | 2 years 3 months 18 days | ||
Stock Based Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 4,700,000 | ||
Restricted incentive shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 26.1 | 23.7 | 23 |
Total unrecognized compensation cost related to non vested awards | $ 23 | ||
Weighted average period for expected recognition of compensation cost | 2 years 1 month 6 days | ||
Fair value of shares vested | $ 24.8 | 25.7 | 26 |
Performance shares granted | 812,412 | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (3.8) | $ 2.8 | $ 0.2 |
Shares available for grant | 1,500,000 | ||
Vesting period | 3 years | ||
Performance shares granted | 200,000 | 200,000 | 200,000 |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) - USD ($) $ in Millions | Jun. 27, 2020 | Jun. 29, 2019 |
Loss Contingency, Estimate [Abstract] | ||
Estimate of possible loss | $ 18.8 | $ 14.7 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Numerator: | |||
Income (loss) from continuing operations | $ (29,533) | $ 180,111 | $ (142,889) |
Loss from discontinued operations, net of tax | (1,548) | (3,774) | (13,535) |
Net (loss) income | $ (31,081) | $ 176,337 | $ (156,424) |
Denominator: | |||
Weighted average common shares for basic earnings per share | 100,474 | 109,820 | 119,909 |
Net effect of dilutive stock based compensation awards | 978 | ||
Weighted average common shares for diluted earnings per share | 100,474 | 110,798 | 119,909 |
Basic (loss) earnings per share - continuing operations | $ (0.29) | $ 1.64 | $ (1.19) |
Basic loss per share-discontinued operations | (0.02) | (0.03) | (0.11) |
Basic (loss) earnings per share | (0.31) | 1.61 | (1.30) |
Diluted (loss) earnings per share - continuing operations | (0.29) | 1.63 | (1.19) |
Diluted loss per share-discontinued operations | (0.02) | (0.04) | (0.11) |
Diluted (loss) earnings per share | $ (0.31) | $ 1.59 | $ (1.30) |
Stock Options | |||
Denominator: | |||
antidilutive Securities | 1,431 | 410 | 1,495 |
Additional cash flow informat_3
Additional cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Other non-cash and reconciling items | |||
Provision for doubtful accounts receivable | $ 12,111 | $ 10,360 | $ 6,033 |
Periodic pension cost | 4,246 | (4,256) | 26,057 |
Other, net | 28,692 | (27,369) | 11,755 |
Total | 45,049 | (21,265) | 43,845 |
Interest and income taxes paid | |||
Accrued property, plant and equipment not paid | 9,009 | 12,957 | 23,400 |
Unsettled share repurchases | 1,404 | 3,425 | |
Interest | 137,995 | 144,822 | 99,929 |
Income tax net payments | $ 25,116 | $ 172,834 | $ 113,130 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Sales, by segment | |||
Sales | $ 17,634,333 | $ 19,518,592 | $ 19,036,892 |
Operating income (expense): | |||
Operating income (loss) before restructuring charges, integration, amortization of acquired intangible assets, and other | 424,600 | 774,200 | 739,200 |
Restructuring, integration and other expenses | (81,870) | (108,144) | (145,125) |
Goodwill and intangible asset impairment expenses | (144,092) | (137,396) | (181,440) |
Amortization of acquired intangible assets and other | (81,600) | (84,300) | (91,900) |
Operating (loss) income | (4,628) | 365,911 | 209,218 |
Assets: | |||
Assets | 8,105,197 | 8,564,556 | 9,596,800 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 73,516 | 122,690 | 155,873 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 182,200 | 180,800 | 234,900 |
Corporate | |||
Operating income (expense): | |||
Corporate Overhead Expenses | (121,600) | (78,500) | (111,500) |
Assets: | |||
Assets | 536,400 | 189,300 | 488,000 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 7,600 | 8,600 | 9,300 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 5,300 | 5,700 | 7,100 |
Electronic Components | |||
Sales, by segment | |||
Sales | 16,340,100 | 18,060,300 | 17,543,600 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 46,300 | 80,100 | 127,500 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 88,400 | 86,600 | 133,300 |
Electronic Components | Segment | |||
Operating income (expense): | |||
Operating income (loss) before restructuring charges, integration, amortization of acquired intangible assets, and other | 349,100 | 614,900 | 587,300 |
Assets: | |||
Assets | 6,096,700 | 6,795,000 | 7,510,100 |
Farnell | |||
Sales, by segment | |||
Sales | 1,294,200 | 1,458,300 | 1,493,300 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 19,600 | 34,000 | 19,100 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 88,500 | 88,500 | 94,500 |
Farnell | Segment | |||
Operating income (expense): | |||
Operating income (loss) before restructuring charges, integration, amortization of acquired intangible assets, and other | 75,500 | 159,300 | 151,900 |
Assets: | |||
Assets | $ 1,472,100 | $ 1,580,300 | $ 1,598,700 |
Segment information (Sales, by
Segment information (Sales, by geographic area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Sales, by geographic area: | |||
Sales | $ 17,634,333 | $ 19,518,592 | $ 19,036,892 |
Americas | |||
Sales, by geographic area: | |||
Sales | 4,755,300 | 5,135,800 | 5,011,400 |
United States | |||
Sales, by geographic area: | |||
Sales | 4,460,000 | 4,800,000 | 4,640,000 |
EMEA | |||
Sales, by geographic area: | |||
Sales | 5,753,400 | 6,762,900 | 6,790,900 |
Germany | |||
Sales, by geographic area: | |||
Sales | 2,200,000 | 2,660,000 | 2,660,000 |
Belgium | |||
Sales, by geographic area: | |||
Sales | 1,090,000 | 1,160,000 | 1,080,000 |
Asia Pacific | |||
Sales, by geographic area: | |||
Sales | 7,125,600 | 7,619,900 | 7,234,600 |
Taiwan | |||
Sales, by geographic area: | |||
Sales | 3,070,000 | 3,200,000 | 2,710,000 |
China (including Hong Kong) | |||
Sales, by geographic area: | |||
Sales | 2,330,000 | 2,520,000 | 2,630,000 |
SINGAPORE | |||
Sales, by geographic area: | |||
Sales | $ 955,400 | $ 1,020,000 | $ 949,500 |
Segment information (Property,
Segment information (Property, plant and equipment, net, by geographic area) (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | $ 404,607 | $ 452,171 | $ 522,900 |
Americas | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 183,900 | 213,800 | 276,200 |
United States | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 179,400 | 209,900 | 271,400 |
EMEA | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 183,400 | 200,400 | 204,800 |
Germany | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 84,900 | 95,200 | 99,400 |
United Kingdom | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 72,700 | 70,500 | 52,500 |
Belgium | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 22,400 | 25,200 | 43,400 |
Asia Pacific | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | $ 37,300 | $ 38,000 | $ 41,900 |
Segment information (Sales) (De
Segment information (Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Sales by major product categories | |||
Sales | $ 17,634,333 | $ 19,518,592 | $ 19,036,892 |
Semiconductors | |||
Sales by major product categories | |||
Sales | 13,440,300 | 14,973,300 | 14,890,900 |
Interconnect, passive & electromechanical (IP&E) | |||
Sales by major product categories | |||
Sales | 3,146,000 | 3,516,000 | 3,227,000 |
Computers | |||
Sales by major product categories | |||
Sales | 572,000 | 533,100 | 461,900 |
Other | |||
Sales by major product categories | |||
Sales | $ 476,000 | $ 496,200 | $ 457,100 |
Restructuring expenses (Details
Restructuring expenses (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2020USD ($) | |
Fiscal Year 2020 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | $ 45,543 |
Cash payments | (26,678) |
Non-cash amounts | (7,111) |
Other, principally foreign currency translation | (42) |
Ending Balance | 11,712 |
Fiscal Year 2019 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 26,918 |
Cash payments | (17,730) |
Changes in estimates, net | (3,334) |
Other, principally foreign currency translation | (624) |
Ending Balance | 5,230 |
Severance | Fiscal Year 2020 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 34,689 |
Cash payments | (24,063) |
Other, principally foreign currency translation | (15) |
Ending Balance | 10,611 |
Severance | Fiscal Year 2019 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 21,537 |
Cash payments | (14,321) |
Changes in estimates, net | (3,713) |
Other, principally foreign currency translation | (539) |
Ending Balance | 2,964 |
Facility and Contract Exit Costs | Fiscal Year 2020 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 3,743 |
Cash payments | (2,615) |
Other, principally foreign currency translation | (27) |
Ending Balance | 1,101 |
Facility and Contract Exit Costs | Fiscal Year 2019 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 5,381 |
Cash payments | (3,409) |
Changes in estimates, net | 379 |
Other, principally foreign currency translation | (85) |
Ending Balance | 2,266 |
Asset Impairments | Fiscal Year 2020 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 7,111 |
Non-cash amounts | $ (7,111) |
Restructuring expenses (Textual
Restructuring expenses (Textuals) (Details) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020USD ($)employee | Jun. 29, 2019USD ($) | |
Fiscal Year 2020 Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of employee reductions under Severance charges | employee | 500 | |
Restructuring expenses | $ 45,543 | |
Restructuring Reserve | 11,712 | |
Fiscal Year 2020 Restructuring Liabilities | Electronic Components | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 32,400 | |
Fiscal Year 2020 Restructuring Liabilities | Farnell | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 10,200 | |
Fiscal Year 2020 Restructuring Liabilities | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 2,900 | |
Fiscal Year 2019 And Prior Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 5,230 | $ 26,918 |
Valuation And Qualifying Acco_2
Valuation And Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 53,499 | $ 48,959 | $ 47,272 |
Charged to Expense (Income) | 12,111 | 10,360 | 6,033 |
Deductions | (6,592) | (5,820) | (4,346) |
Balance at End of Period | 59,018 | 53,499 | 48,959 |
Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | 231,463 | 239,483 | 241,687 |
Charged to Expense (Income) | 50,018 | (5,274) | (4,704) |
Charged to Other Accounts | 2,240 | (2,746) | 2,500 |
Balance at End of Period | $ 283,721 | $ 231,463 | $ 239,483 |