Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Apr. 03, 2021 | Apr. 21, 2021 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-4224 | |
Entity Registrant Name | AVNET, INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-1890605 | |
Entity Address, Address Line One | 2211 South 47th Street | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85034 | |
City Area Code | 480 | |
Local Phone Number | 643-2000 | |
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | AVT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 99,502,049 | |
Entity Central Index Key | 0000008858 | |
Current Fiscal Year End Date | --07-03 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Apr. 03, 2021 | Jun. 27, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 322,749 | $ 477,038 |
Receivables | 3,365,677 | 2,928,386 |
Inventories | 2,760,156 | 2,731,988 |
Prepaid and other current assets | 156,023 | 191,394 |
Total current assets | 6,604,605 | 6,328,806 |
Property, plant and equipment, net | 381,083 | 404,607 |
Goodwill | 838,460 | 773,734 |
Intangible assets, net | 33,770 | 65,437 |
Operating lease assets | 275,662 | 275,917 |
Other assets | 232,335 | 256,696 |
Total assets | 8,365,915 | 8,105,197 |
Current liabilities: | ||
Short-term debt | 300,043 | 51 |
Accounts payable | 2,001,743 | 1,754,078 |
Accrued expenses and other | 526,974 | 472,924 |
Short-term operating lease liabilities | 57,182 | 53,313 |
Total current liabilities | 2,885,942 | 2,280,366 |
Long-term debt | 895,913 | 1,424,791 |
Long-term operating lease liabilities | 250,108 | 253,719 |
Other liabilities | 396,065 | 419,923 |
Total liabilities | 4,428,028 | 4,378,799 |
Commitments and contingencies (Note 9) | ||
Shareholders' equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 99,489,060 shares and 98,792,542 shares, respectively | 99,489 | 98,793 |
Additional paid-in capital | 1,611,114 | 1,594,140 |
Retained earnings | 2,452,723 | 2,421,845 |
Accumulated other comprehensive loss | (225,439) | (388,380) |
Total shareholders' equity | 3,937,887 | 3,726,398 |
Total liabilities and shareholders' equity | $ 8,365,915 | $ 8,105,197 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Apr. 03, 2021 | Jun. 27, 2020 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares, issued | 99,489,060 | 98,792,542 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Income Statement [Abstract] | ||||
Sales | $ 4,916,714 | $ 4,309,818 | $ 14,307,945 | $ 13,474,632 |
Revenue, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Cost of sales | $ 4,348,364 | $ 3,790,885 | $ 12,712,262 | $ 11,886,247 |
Cost, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Gross profit | $ 568,350 | $ 518,933 | $ 1,595,683 | $ 1,588,385 |
Selling, general and administrative expenses | 463,092 | 469,646 | 1,376,333 | 1,391,024 |
Goodwill and long-lived asset impairment expense | 145,836 | 145,836 | ||
Restructuring, integration and other expenses | 17,574 | 19,211 | 55,943 | 58,073 |
Operating income (loss) | 87,684 | (115,760) | 163,407 | (6,548) |
Other income (expense), net | 4,779 | (12,608) | (16,052) | (9,640) |
Interest and other financing expenses, net | (22,342) | (29,718) | (66,128) | (97,254) |
Income (loss) before taxes | 70,121 | (158,086) | 81,227 | (113,442) |
Income tax benefit | (37,363) | (29,425) | (26,532) | (30,200) |
Net income (loss) | $ 107,484 | $ (128,661) | $ 107,759 | $ (83,242) |
Earnings (loss) per share: | ||||
Basic | $ 1.08 | $ (1.29) | $ 1.09 | $ (0.82) |
Diluted | $ 1.07 | $ (1.29) | $ 1.08 | $ (0.82) |
Shares used to compute earnings per share: | ||||
Basic | 99,542 | 99,479 | 99,125 | 101,013 |
Diluted | 100,247 | 99,479 | 100,013 | 101,013 |
Cash dividends paid per common share | $ 0.21 | $ 0.21 | $ 0.63 | $ 0.63 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 107,484 | $ (128,661) | $ 107,759 | $ (83,242) |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation and other | (65,021) | (96,351) | 145,352 | (105,311) |
Pension adjustments, net | 3,983 | 3,167 | 17,589 | 10,148 |
Total comprehensive income (loss) | $ 46,446 | $ (221,845) | $ 270,700 | $ (178,405) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Cumulative Effect, Period of Adoption, Adjustment | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 29, 2019 | $ 104,038 | $ 1,573,005 | $ 2,767,469 | $ (304,039) | $ 4,140,473 | ||
Shares issued Beginning Balance at Jun. 29, 2019 | 104,038,000 | ||||||
Net income (loss) | 41,752 | 41,752 | |||||
Translation adjustments and other | (102,146) | (102,146) | |||||
Pension liability adjustment, net | 3,813 | 3,813 | |||||
Cash dividends | (21,451) | (21,451) | |||||
Repurchases of common stock | $ (2,631) | (109,504) | (112,135) | ||||
Repurchase of common stock (in shares) | (2,631,000) | ||||||
Stock-based compensation | $ 64 | 7,701 | 7,765 | ||||
Stock-based compensation (in shares) | 64,000 | ||||||
Shares issued Ending Balance at Sep. 28, 2019 | 101,471,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 28, 2019 | $ 101,471 | 1,580,706 | 2,678,266 | (402,372) | 3,958,071 | ||
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 29, 2019 | $ 104,038 | 1,573,005 | 2,767,469 | (304,039) | 4,140,473 | ||
Shares issued Beginning Balance at Jun. 29, 2019 | 104,038,000 | ||||||
Net income (loss) | (83,242) | ||||||
Pension liability adjustment, net | 10,148 | ||||||
Shares issued Ending Balance at Mar. 28, 2020 | 98,761,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 28, 2020 | $ 98,761 | 1,587,294 | 2,390,425 | (399,202) | 3,677,278 | ||
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 28, 2019 | $ 101,471 | 1,580,706 | 2,678,266 | (402,372) | 3,958,071 | ||
Shares issued Beginning Balance at Sep. 28, 2019 | 101,471,000 | ||||||
Net income (loss) | 3,668 | 3,668 | |||||
Translation adjustments and other | 93,186 | 93,186 | |||||
Pension liability adjustment, net | 3,168 | 3,168 | |||||
Cash dividends | (20,975) | (20,975) | |||||
Repurchases of common stock | $ (2,135) | (85,423) | (87,558) | ||||
Repurchase of common stock (in shares) | (2,135,000) | ||||||
Stock-based compensation | $ 13 | 7,760 | 7,773 | ||||
Stock-based compensation (in shares) | 13,000 | ||||||
Shares issued Ending Balance at Dec. 28, 2019 | 99,349,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 28, 2019 | $ 99,349 | 1,588,466 | 2,575,536 | (306,018) | 3,957,333 | ||
Net income (loss) | (128,661) | (128,661) | |||||
Translation adjustments and other | (96,351) | (96,351) | |||||
Pension liability adjustment, net | 3,167 | 3,167 | |||||
Cash dividends | (20,810) | (20,810) | |||||
Repurchases of common stock | $ (1,104) | (35,640) | (36,744) | ||||
Repurchase of common stock (in shares) | (1,104,000) | ||||||
Stock-based compensation | $ 516 | (1,172) | (656) | ||||
Stock-based compensation (in shares) | 516,000 | ||||||
Shares issued Ending Balance at Mar. 28, 2020 | 98,761,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 28, 2020 | $ 98,761 | 1,587,294 | 2,390,425 | (399,202) | 3,677,278 | ||
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 27, 2020 | $ 98,793 | 1,594,140 | 2,421,845 | (388,380) | $ 3,726,398 | ||
Shares issued Beginning Balance at Jun. 27, 2020 | 98,793,000 | 98,792,542 | |||||
Net income (loss) | (18,889) | $ (18,889) | |||||
Translation adjustments and other | 90,373 | 90,373 | |||||
Pension liability adjustment, net | 9,623 | 9,623 | |||||
Cash dividends | (20,756) | (20,756) | |||||
Stock-based compensation | $ 51 | 5,191 | 5,242 | ||||
Stock-based compensation (in shares) | 51,000 | ||||||
Shares issued Ending Balance at Oct. 03, 2020 | 98,844,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Oct. 03, 2020 | $ 98,844 | 1,599,331 | $ (14,480) | 2,367,720 | (288,384) | $ (14,480) | 3,777,511 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 27, 2020 | $ 98,793 | 1,594,140 | 2,421,845 | (388,380) | $ 3,726,398 | ||
Shares issued Beginning Balance at Jun. 27, 2020 | 98,793,000 | 98,792,542 | |||||
Net income (loss) | $ 107,759 | ||||||
Pension liability adjustment, net | $ 17,589 | ||||||
Shares issued Ending Balance at Apr. 03, 2021 | 99,489,000 | 99,489,060 | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 03, 2021 | $ 99,489 | 1,611,114 | 2,452,723 | (225,439) | $ 3,937,887 | ||
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 03, 2020 | $ 98,844 | 1,599,331 | $ (14,480) | 2,367,720 | (288,384) | $ (14,480) | 3,777,511 |
Shares issued Beginning Balance at Oct. 03, 2020 | 98,844,000 | ||||||
Net income (loss) | 19,163 | 19,163 | |||||
Translation adjustments and other | 120,000 | 120,000 | |||||
Pension liability adjustment, net | 3,983 | 3,983 | |||||
Cash dividends | (20,756) | (20,756) | |||||
Stock-based compensation | $ 18 | 10,814 | 10,832 | ||||
Stock-based compensation (in shares) | 18,000 | ||||||
Shares issued Ending Balance at Jan. 02, 2021 | 98,862,000 | ||||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jan. 02, 2021 | $ 98,862 | 1,610,145 | 2,366,127 | (164,401) | 3,910,733 | ||
Net income (loss) | 107,484 | 107,484 | |||||
Translation adjustments and other | (65,021) | (65,021) | |||||
Pension liability adjustment, net | 3,983 | 3,983 | |||||
Cash dividends | (20,888) | (20,888) | |||||
Stock-based compensation | $ 627 | 969 | $ 1,596 | ||||
Stock-based compensation (in shares) | 627,000 | ||||||
Shares issued Ending Balance at Apr. 03, 2021 | 99,489,000 | 99,489,060 | |||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 03, 2021 | $ 99,489 | $ 1,611,114 | $ 2,452,723 | $ (225,439) | $ 3,937,887 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 107,759 | $ (83,242) |
Non-cash and other reconciling items: | ||
Depreciation | 67,462 | 75,535 |
Amortization | 35,730 | 62,240 |
Amortization of Operating Lease Assets | 42,054 | 46,560 |
Deferred income taxes | 11,510 | (42,529) |
Stock-based compensation | 22,293 | 20,757 |
Goodwill, long-lived and other impairments | 15,166 | 145,836 |
Other, net | 7,558 | 36,548 |
Changes in (net of effects from businesses acquired and divested): | ||
Receivables | (405,700) | 150,095 |
Inventories | 63,017 | 227,996 |
Accounts payable | 224,151 | (112,923) |
Accrued expenses and other, net | 6,526 | (84,263) |
Net cash flows provided by operating activities | 197,526 | 442,610 |
Cash flows from financing activities: | ||
Repayments under accounts receivable securitization, net | (127,400) | |
Repayments under senior unsecured credit facility, net | (232,347) | (1,194) |
Repayments under bank credit facilities and other debt, net | (2,192) | (1,639) |
Repurchases of common stock | (235,830) | |
Dividends paid on common stock | (62,400) | (63,235) |
Other, net | (11,455) | (15,132) |
Net cash flows used for financing activities | (308,394) | (444,430) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (39,001) | (61,156) |
Acquisitions of assets | (18,371) | (51,509) |
Other, net | 6,201 | (12,547) |
Net cash flows used for investing activities | (51,171) | (125,212) |
Effect on currency exchange rate changes on cash and cash equivalents | 7,750 | (16,418) |
Cash and cash equivalents: | ||
Decrease | (154,289) | (143,450) |
Cash and cash equivalents at beginning of year | 477,038 | 546,105 |
Cash and cash equivalents at end of year | $ 322,749 | $ 402,655 |
Basis of presentation and new a
Basis of presentation and new accounting pronouncements | 9 Months Ended |
Apr. 03, 2021 | |
Basis of presentation and new accounting pronouncements | |
Basis of presentation and new accounting pronouncements | 1. Basis of presentation and new accounting pronouncements In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc. and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income and cash flows. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates and assumptions. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2020. Certain reclassifications have been made in prior periods to conform to the current period presentation. Fiscal year The Company operates on a “52/53 week” fiscal year, and fiscal 2021 contains 53 weeks compared to fiscal 2020, which contained 52 weeks. As a result, the first nine months of fiscal 2021 ended April 3, 2021, contained 40 weeks compared to the first nine months of fiscal 2020 ended March 28, 2020, which contained 39 weeks. Recently adopted accounting pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recently issued accounting pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Apr. 03, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Except for the changes below, no material changes have been made to the Company’s significant accounting policies as disclosed in Note 1, Summary of Significant Accounting Policies, in its Annual Report on Form 10-K for the fiscal year ended June 27, 2020. Receivables |
Acquisitions
Acquisitions | 9 Months Ended |
Apr. 03, 2021 | |
Acquisitions | |
Acquisitions | 3. Acquisitions In the first quarter of fiscal 2021, the Company completed an asset acquisition. The impact of this asset acquisition was not material to the Company’s consolidated balance sheets or statements of operations. |
Receivables
Receivables | 9 Months Ended |
Apr. 03, 2021 | |
Receivables | |
Receivables | 4. Receivables The Company’s receivables and allowance for credit losses were as follows: April 3, June 27, 2021 2020 (Thousands) Receivables $ 3,451,466 $ 2,993,404 Allowance for Credit Losses (85,789) (65,018) The Company had the following activity in the allowance for credit losses during the first nine months of fiscal 2021: April 3, 2021 (Thousands) Balance at June 27, 2020 $ 65,018 Effect of adoption of new credit loss accounting standard (Note 1) 17,205 Credit Loss Provisions 7,370 Credit Loss Recoveries (192) Receivables Write offs (5,666) Foreign Currency Effect and Other 2,054 Balance at April 3, 2021 $ 85,789 |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Apr. 03, 2021 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | 5. Goodwill and intangible assets Goodwill The following table presents the change in goodwill by reportable segment for the nine months ended April 3, 2021. Electronic Components Farnell Total (Thousands) Carrying value at June 27, 2020 (1) $ 297,836 $ 475,898 $ 773,734 Foreign currency translation 12,142 52,584 64,726 Carrying value at April 3, 2021 (1) $ 309,978 $ 528,482 $ 838,460 (1) 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. During the third quarter of fiscal 2021, the Company concluded that an interim goodwill impairment test was not required. Intangible Assets The following table presents the Company’s acquired intangible assets at April 3, 2021 and June 27, 2020, respectively. April 3, 2021 June 27, 2020 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount (1) Amortization Value (Thousands) Customer related $ 324,923 $ (312,189) $ 12,734 $ 300,937 $ (266,759) $ 34,178 Trade name 57,259 (42,788) 14,471 51,698 (32,493) 19,205 Technology and other 57,756 (51,191) 6,565 53,641 (41,587) 12,054 $ 439,938 $ (406,168) $ 33,770 $ 406,276 $ (340,839) $ 65,437 (1) Intangible asset amortization expense was $5.3 million and $21.0 million for the third quarters of fiscal 2021 and 2020, respectively, and $35.7 million and $62.2 million for the first nine months of fiscal 2021 and 2020, respectively. Intangible assets have a weighted average remaining useful life of less than 3 years . The following table presents the estimated future amortization expense for the remainder of fiscal 2021 and the next five fiscal years (in thousands): Fiscal Year Remainder of fiscal 2021 $ 5,261 2022 15,431 2023 6,610 2024 3,156 2025 1,472 2026 1,472 Thereafter 368 Total $ 33,770 |
Debt
Debt | 9 Months Ended |
Apr. 03, 2021 | |
Debt | |
Debt | 6. Debt Short-term debt consists of the following (carrying balances in thousands): April 3, June 27, April 3, June 27, 2021 2020 2021 2020 Interest Rate Carrying Balance Bank credit facilities and other 0.93 % 5.69 % $ 43 $ 51 Accounts receivable securitization program — — — — Public notes due December 2021 3.75 % — 300,000 — Short-term debt $ 300,043 $ 51 Bank credit facilities and other consists primarily of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the working capital requirements of the Company including its foreign operations. In July 2020, the Company amended and extended for one year, its trade accounts receivable securitization program (the “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 $450 million. The Securitization Program does not qualify for off balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $683.3 million and $703.8 million at April 3, 2021 and June 27, 2020, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. Interest on borrowings is calculated using a one-month LIBOR rate plus a spread of 1.05%. The facility fee on the unused balance of the facility is up to 0.40%. During the third quarter of fiscal 2021, the Company committed to an early redemption of all $300 million of its outstanding 3.75% Public notes due December 2021. The loss on debt extinguishment, primarily related to a contractual make-whole premium, is expected to be approximately $5 million and will be classified as a component of other income (expense), net upon redemption of the notes, which is expected to occur on April 30, 2021. Long-term debt consists of the following (carrying balances in thousands): April 3, June 27, April 3, June 27, 2021 2020 2021 2020 Interest Rate Carrying Balance Revolving credit facilities: Credit Facility (due June 2023) — 1.28 % $ — $ 230,000 Public notes due: December 2021 — 3.75 % — 300,000 December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 Other long-term debt 1.21 % 1.19 % 1,312 1,491 Long-term debt before discount and debt issuance costs 901,312 1,431,491 Discount and debt issuance costs – unamortized (5,399) (6,700) Long-term debt $ 895,913 $ 1,424,791 The Company has a five-year $1.25 billion senior unsecured revolving credit facility (the “Credit Facility”) with a syndicate of banks, consisting of revolving credit facilities and the issuance of up to $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, which were amended during the first quarter of fiscal 2021, requiring the Company to maintain minimum interest coverage and leverage ratios, which the Company was in compliance with as of April 3, 2021, and June 27, 2020. As of April 3, 2021, and June 27, 2020, there were $1.3 million and $1.6 million, respectively, in letters of credit issued under the Credit Facility. As of April 3, 2021, the carrying value and fair value of the Company’s total debt was $1.20 billion and $1.28 billion, respectively. 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. Fair value for the public notes was estimated based upon quoted market prices and for other forms of debt fair value approximates carrying value due to the market based variable nature of the interest rates on those debt facilities. |
Leases
Leases | 9 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Leases | 7. Leases Substantially all the Company’s leases are classified as operating leases and are predominately related to real property for distribution centers, office space and integration facilities with a lease term of up to 17 years. The Company’s equipment leases are primarily for automobiles and equipment and are not material to the consolidated financial statements. The components of lease cost related to the Company’s operating leases were as follows (in thousands): Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 Operating lease cost $ 18,608 $ 19,257 $ 55,105 $ 57,633 Variable lease cost 5,584 5,496 17,296 15,594 Total lease cost $ 24,192 $ 24,753 $ 72,401 $ 73,227 Future minimum operating lease payments as of April 3, 2021, are as follows (in thousands): Fiscal Year Remainder of fiscal 2021 $ 18,649 2022 63,946 2023 54,508 2024 39,425 2025 32,493 Thereafter 162,426 Total future operating lease payments 371,447 Total imputed interest on operating lease liabilities (64,157) Total operating lease liabilities $ 307,290 Other information pertaining to operating leases as of April 3, 2021, consists of the following: Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 9.2 Weighted-average discount rate 3.8 % Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands): Nine Months Ended April 3, March 28, 2021 2020 Supplemental Cash Flow Information: Cash paid for operating lease liabilities $ 44,219 $ 46,418 Operating lease assets obtained from new operating lease liabilities 36,150 30,750 |
Derivative financial instrument
Derivative financial instruments | 9 Months Ended |
Apr. 03, 2021 | |
Derivative financial instruments | |
Derivative financial instruments | 8. 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, but no longer than one year (“economic hedges”). The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “Other income (expense), net.” The fair value of forward foreign exchange contracts, which are based upon Level 2 criteria under the ASC 820 fair value hierarchy, are classified in the captions “Prepaid and other current assets” or “Accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets as of April 3, 2021, and June 27, 2020. 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 derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase from suppliers. The Company’s foreign operations transactions are denominated primarily in the following currencies: U.S. Dollar, Euro, British Pound, Japanese Yen, Chinese Yuan, Taiwan Dollar, Canadian Dollar and Mexican Peso. The Company also, to a lesser extent, has foreign operations transactions in other EMEA and Asian foreign currencies. The fair values of forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in the Company’s consolidated balance sheets are as follows: April 3, June 27, 2021 2020 (Thousands) Prepaid and other current assets $ 14,781 $ 18,989 Accrued expenses and other 24,196 15,605 The amounts recorded to other income (expense), net, related to derivative financial instruments for economic hedges are as follows: Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands) Net derivative financial instrument (loss) gain $ (2,574) $ (3,247) $ (13,201) $ 7,856 Under the Company’s economic hedging policies, gains and losses on the derivative financial instruments are classified within the same line item in the consolidated statements of operations as the remeasurement of the underlying assets or liabilities being economically hedged. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Apr. 03, 2021 | |
Commitments and contingencies | |
Commitments and contingencies | 9. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in, various lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations. For certain of these matters, it is not possible to determine the ultimate outcome, and the Company cannot reasonably estimate the maximum potential exposure or the range of possible loss, particularly with regard to matters in early stages. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position or liquidity, but could possibly be material to its results of operations in any one reporting period. As of April 3, 2021, and June 27, 2020, the Company had aggregate estimated liabilities of $14.7 million and $18.8 million, respectively, classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates. During the first nine months of fiscal 2021, the Company recorded a gain on legal settlement of $8.2 million, which is classified as a component of Restructuring, integration and other expenses. |
Income taxes
Income taxes | 9 Months Ended |
Apr. 03, 2021 | |
Income taxes | |
Income taxes | 10. Income taxes The Company’s effective tax rate on its income before taxes was a benefit of 53.3% in the third quarter of fiscal 2021. During the third quarter of fiscal 2021, the Company’s effective tax rate was favorably impacted primarily by (i) the tax benefit arising from the reduction in value of certain businesses for income tax purposes and (ii) decreases to valuation allowances, partially offset by (iii) increases to unrecognized tax benefit reserves. During the third quarter of fiscal 2020, the Company’s effective tax rate on its loss before taxes was a benefit of 18.6%. During the third quarter of fiscal 2020, the Company’s effective tax rate was unfavorably impacted primarily by (i) the impairment of goodwill that is not deductible for tax purposes, partially offset by (ii) the release of unrecognized tax benefit reserves net of settlements. For the first nine months of fiscal 2021, the Company’s effective tax rate on its income before taxes was a benefit of 32.7%. The effective tax rate for the first nine months of fiscal 2021 was favorably impacted primarily by (i) the tax benefit arising from the reduction in value of certain businesses for income tax purposes, (ii) decreases to valuation allowances, and (iii) the mix of income in lower tax jurisdictions, partially offset by (iv) increases to unrecognized tax benefit reserves. During the first nine months of fiscal 2020, the Company’s effective tax rate on its loss before taxes was a benefit of 26.6%. The effective tax rate for the first nine months of fiscal 2020 was favorably impacted primarily by (i) the release of unrecognized tax benefit reserves net of settlements and (ii) the mix of income in lower tax jurisdictions, partially offset by (iii) goodwill impairment expense that is not deductible for tax purposes and (iv) a valuation allowance against deferred tax assets. |
Pension and retirement plan
Pension and retirement plan | 9 Months Ended |
Apr. 03, 2021 | |
Pension and retirement plan | |
Pension and retirement plans | 11. Pension plan The Company has a noncontributory defined benefit pension plan that covers substantially all current or former U.S. employees (the “Plan”). Components of net periodic pension cost for the Plan was as follows: Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands) Service cost $ 3,938 $ 3,786 $ 11,813 $ 11,358 Total net periodic pension cost within selling, general and administrative expenses 3,938 3,786 11,813 11,358 Interest cost 3,976 5,638 11,928 16,914 Expected return on plan assets (12,421) (12,668) (37,261) (38,003) Amortization of prior service cost 75 534 226 1,603 Recognized net actuarial loss 5,151 3,658 15,453 10,972 Total net periodic pension benefit within other income (expense), net (3,219) (2,838) (9,654) (8,514) Net periodic pension cost $ 719 $ 948 $ 2,159 $ 2,844 The Company made $12.0 million of contributions during the first nine months of fiscal 2021 and expects to make additional contributions to the Plan of $4.0 million in the remainder of fiscal 2021. |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Apr. 03, 2021 | |
Shareholders' equity | |
Shareholders' equity | 12. Shareholders’ equity Share repurchase program In August 2019, the Company’s Board of Directors amended the Company’s existing share repurchase program, increasing the cumulative total of authorized share repurchases to $2.95 billion of common stock in the open market or through privately negotiated transactions. The timing and actual number of shares repurchased will depend on a variety of factors such as share price, expected liquidity, expected compliance with financial debt convents, corporate and regulatory requirements, and prevailing market conditions. During the third quarter ended April 3, 2021, the Company did not repurchase any shares under this program. As of April 3, 2021, the Company had $469.0 million remaining under its share repurchase authorization. Common stock dividend In February 2021, the Company’s Board of Directors approved a dividend of $0.21 per common share and dividend payments of $20.9 million were made in March 2021. |
Earnings per share
Earnings per share | 9 Months Ended |
Apr. 03, 2021 | |
Earnings per share | |
Earnings per share | 13. Earnings per share Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands, except per share data) Numerator: Net income (loss) $ 107,484 $ (128,661) $ 107,759 $ (83,242) Denominator: Weighted average common shares for basic earnings per share 99,542 99,479 99,125 101,013 Net effect of dilutive stock-based compensation awards 705 — 888 — Weighted average common shares for diluted earnings per share 100,247 99,479 100,013 101,013 Basic earnings (loss) per share $ 1.08 $ (1.29) $ 1.09 $ (0.82) Diluted earnings (loss) per share $ 1.07 $ (1.29) $ 1.08 $ (0.82) Stock options excluded from earnings per share calculation due to anti-dilutive effect 642 1,431 793 1,018 For the three and nine months ended March 28, 2020, the diluted net loss per share is the same as basic net loss per share as the effect of all potential common shares would be anti-dilutive. |
Additional cash flow informatio
Additional cash flow information | 9 Months Ended |
Apr. 03, 2021 | |
Additional cash flow information | |
Additional cash flow information | 14. Additional cash flow information Non-cash investing and financing activities and supplemental cash flow information were as follows: Nine Months Ended April 3, March 28, 2021 2020 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 5,232 $ 5,366 Supplemental Cash Flow Information: Interest $ 61,127 $ 88,472 Income tax net payments 56,135 14,689 Included in cash and cash equivalents as of April 3, 2021 and June 27, 2020 was $43.2 million and $20.9 million, respectively, of cash equivalents, which was primarily comprised of investment grade money market funds and overnight time deposits. |
Segment information
Segment information | 9 Months Ended |
Apr. 03, 2021 | |
Segment information | |
Segment information | 15. Segment information Electronic Components (“EC”) and Farnell (“Farnell”) are the Company’s reportable segments (“operating groups”). EC markets and sells semiconductors and interconnect, passive and electromechanical devices and integrated components to a diverse customer base serving many end-markets. Farnell distributes electronic components and related products to the electronic system design community utilizing multi-channel sales and marketing resources. Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands) Sales: Electronic Components $ 4,520,608 $ 3,974,669 $ 13,245,143 $ 12,472,484 Farnell 396,106 335,149 1,062,802 1,002,148 4,916,714 4,309,818 14,307,945 13,474,632 Operating income (loss): Electronic Components $ 118,565 $ 84,841 $ 306,927 $ 290,271 Farnell 23,861 23,350 50,412 65,109 142,426 108,191 357,339 355,380 Corporate (31,885) (37,833) (102,114) (95,416) Restructuring, integration and other expenses (17,574) (19,211) (55,943) (58,073) Goodwill and long-lived asset impairment expense — (145,836) — (145,836) Amortization of acquired intangible assets and other (5,283) (21,071) (35,875) (62,603) Operating income (loss) $ 87,684 $ (115,760) $ 163,407 $ (6,548) Sales, by geographic area: Americas (1) $ 1,160,973 $ 1,203,605 $ 3,468,118 $ 3,605,944 EMEA (2) 1,585,631 1,512,476 4,412,652 4,409,258 Asia/Pacific (3) 2,170,110 1,593,737 6,427,175 5,459,430 Sales $ 4,916,714 $ 4,309,818 $ 14,307,945 $ 13,474,632 (1) Includes sales from the United States of $1.08 billion and $1.11 billion for the third quarters ended April 3, 2021, and March 28, 2020, respectively. Includes sales from the United States of $3.24 billion and $3.37 billion for the first nine months of fiscal 2021 and 2020, respectively. (2) Includes sales from Germany and Belgium of $619.4 million and $276.4 million, respectively, for the third quarter ended April 3, 2021; and $1.71 billion and $825.8 million, respectively, for the first nine months of fiscal 2021. Includes sales from Germany and Belgium of $568.0 million and $278.3 million, respectively, for the third quarter ended March 28, 2020; and $1.69 billion and $837.7 million, respectively, for the first nine months of fiscal 2020. (3) Includes sales from China (including Hong Kong), Taiwan and Singapore of $717.7 million, $956.8 million and $249.5 million, respectively, for the third quarter ended April 3, 2021; and $2.02 billion, $2.95 billion and $774.1 million, respectively, for the first nine months of fiscal 2021. Includes sales from China (including Hong Kong), Taiwan and Singapore of $524.1 million, $649.7 million and $239.3 million, respectively, for the third quarter ended March 28, 2020; and $1.76 billion, $2.39 billion and $722.7 million, respectively, for the first nine months of fiscal 2020. April 3, June 27, 2021 2020 (Thousands) Property, plant, and equipment, net, by geographic area: Americas (1) $ 155,834 $ 183,892 EMEA (2) 187,837 183,382 Asia/Pacific 37,412 37,333 Property, plant, and equipment, net $ 381,083 $ 404,607 (1) Includes property, plant and equipment, net, of $152.3 million and $179.4 million as of April 3, 2021, and June 27, 2020, respectively, in the United States. (2) Includes property, plant and equipment, net, of $80.2 million, $83.3 million and $21.3 million in Germany, the United Kingdom and Belgium, respectively, as of April 3, 2021; and $84.9 million, $72.7 million and $22.4 million in Germany, the United Kingdom and Belgium, respectively, as of June 27, 2020. |
Restructuring expenses
Restructuring expenses | 9 Months Ended |
Apr. 03, 2021 | |
Restructuring expenses | |
Restructuring expenses | 16. Restructuring expenses Fiscal 2021 During fiscal 2021, the Company undertook restructuring actions to improve operating efficiencies and reduce operating expenses. Restructuring expenses are included as a component of restructuring, integration and other expenses in the consolidated statements of operations. The activity related to the restructuring liabilities associated with restructuring activities established during fiscal 2021 is presented in the following table: Facility and Contract Severance Exit Costs Total (Thousands) Fiscal 2021 restructuring expenses $ 36,992 $ 2,894 $ 39,886 Cash payments (21,097) (1,497) (22,594) Non-cash amounts — (56) (56) Other, principally foreign currency translation 570 13 583 Balance at April 3, 2021 $ 16,465 $ 1,354 $ 17,819 Severance expense recorded in the first nine months of fiscal 2021 related to the reduction, or planned reduction, of over 300 employees, primarily in executive management, operations, information technology, warehouse, sales and business support functions. Of the $39.9 million in restructuring expenses recorded during the first nine months of fiscal 2021, $22.5 million related to EC, $9.4 million related to Farnell and $8.0 million related to Corporate. The Company expects the majority of the remaining severance amounts to be paid by the end of fiscal 2021. Fiscal 2020 and prior During fiscal 2020 and prior, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during the first nine months of fiscal 2021 related to the remaining restructuring liabilities established during fiscal 2020 and prior: Facility and Contract Severance Exit Costs Total (Thousands) Balance at June 27, 2020 $ 13,574 $ 3,368 $ 16,942 Cash payments (5,569) (1,042) (6,611) Changes in estimates, net (2,901) 10 (2,891) Other, principally foreign currency translation 579 216 795 Balance at April 3, 2021 $ 5,683 $ 2,552 $ 8,235 The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2021. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Apr. 03, 2021 | |
Summary of significant accounting policies | |
Basis of presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc. and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income and cash flows. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates and assumptions. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2020. Certain reclassifications have been made in prior periods to conform to the current period presentation. |
Fiscal year | Fiscal year The Company operates on a “52/53 week” fiscal year, and fiscal 2021 contains 53 weeks compared to fiscal 2020, which contained 52 weeks. As a result, the first nine months of fiscal 2021 ended April 3, 2021, contained 40 weeks compared to the first nine months of fiscal 2020 ended March 28, 2020, which contained 39 weeks. |
Recently adopted accounting pronouncements | Recently adopted accounting pronouncements In August 2018, the FASB issued ASU No. 2018-15, Intangibles—Goodwill and Other— Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract (a consensus of the FASB Emerging Issues Task Force) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments Recently issued accounting pronouncements In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting Reference Rate Reform (Topic 848): Scope In December 2019, the FASB issued ASU No. 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) In August 2018, the FASB issued ASU No. 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans |
Receivables | Receivables |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Receivables | |
Schedule of receivables and allowance for credit losses | April 3, June 27, 2021 2020 (Thousands) Receivables $ 3,451,466 $ 2,993,404 Allowance for Credit Losses (85,789) (65,018) April 3, 2021 (Thousands) Balance at June 27, 2020 $ 65,018 Effect of adoption of new credit loss accounting standard (Note 1) 17,205 Credit Loss Provisions 7,370 Credit Loss Recoveries (192) Receivables Write offs (5,666) Foreign Currency Effect and Other 2,054 Balance at April 3, 2021 $ 85,789 |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Goodwill and intangible assets | |
Change in goodwill balances by reportable segment | Electronic Components Farnell Total (Thousands) Carrying value at June 27, 2020 (1) $ 297,836 $ 475,898 $ 773,734 Foreign currency translation 12,142 52,584 64,726 Carrying value at April 3, 2021 (1) $ 309,978 $ 528,482 $ 838,460 (1) 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 | April 3, 2021 June 27, 2020 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount (1) Amortization Value (Thousands) Customer related $ 324,923 $ (312,189) $ 12,734 $ 300,937 $ (266,759) $ 34,178 Trade name 57,259 (42,788) 14,471 51,698 (32,493) 19,205 Technology and other 57,756 (51,191) 6,565 53,641 (41,587) 12,054 $ 439,938 $ (406,168) $ 33,770 $ 406,276 $ (340,839) $ 65,437 (1) |
Estimated future amortization expense | The following table presents the estimated future amortization expense for the remainder of fiscal 2021 and the next five fiscal years (in thousands): Fiscal Year Remainder of fiscal 2021 $ 5,261 2022 15,431 2023 6,610 2024 3,156 2025 1,472 2026 1,472 Thereafter 368 Total $ 33,770 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Debt | |
Short-term debt | Short-term debt consists of the following (carrying balances in thousands): April 3, June 27, April 3, June 27, 2021 2020 2021 2020 Interest Rate Carrying Balance Bank credit facilities and other 0.93 % 5.69 % $ 43 $ 51 Accounts receivable securitization program — — — — Public notes due December 2021 3.75 % — 300,000 — Short-term debt $ 300,043 $ 51 |
Long-term debt | Long-term debt consists of the following (carrying balances in thousands): April 3, June 27, April 3, June 27, 2021 2020 2021 2020 Interest Rate Carrying Balance Revolving credit facilities: Credit Facility (due June 2023) — 1.28 % $ — $ 230,000 Public notes due: December 2021 — 3.75 % — 300,000 December 2022 4.88 % 4.88 % 350,000 350,000 April 2026 4.63 % 4.63 % 550,000 550,000 Other long-term debt 1.21 % 1.19 % 1,312 1,491 Long-term debt before discount and debt issuance costs 901,312 1,431,491 Discount and debt issuance costs – unamortized (5,399) (6,700) Long-term debt $ 895,913 $ 1,424,791 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Leases [Abstract] | |
Schedule of lease cost | The components of lease cost related to the Company’s operating leases were as follows (in thousands): Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 Operating lease cost $ 18,608 $ 19,257 $ 55,105 $ 57,633 Variable lease cost 5,584 5,496 17,296 15,594 Total lease cost $ 24,192 $ 24,753 $ 72,401 $ 73,227 |
Schedule of future minimum operating lease payments | Future minimum operating lease payments as of April 3, 2021, are as follows (in thousands): Fiscal Year Remainder of fiscal 2021 $ 18,649 2022 63,946 2023 54,508 2024 39,425 2025 32,493 Thereafter 162,426 Total future operating lease payments 371,447 Total imputed interest on operating lease liabilities (64,157) Total operating lease liabilities $ 307,290 |
Schedule of other information pertaining to operating leases | Other information pertaining to operating leases as of April 3, 2021, consists of the following: Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 9.2 Weighted-average discount rate 3.8 % |
Schedule of supplemental cash flow information | Supplemental cash flow information related to the Company’s operating leases was as follows (in thousands): Nine Months Ended April 3, March 28, 2021 2020 Supplemental Cash Flow Information: Cash paid for operating lease liabilities $ 44,219 $ 46,418 Operating lease assets obtained from new operating lease liabilities 36,150 30,750 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Derivative financial instruments | |
Schedule of derivative instruments in the balance sheet | April 3, June 27, 2021 2020 (Thousands) Prepaid and other current assets $ 14,781 $ 18,989 Accrued expenses and other 24,196 15,605 |
Schedule of gain (loss) on derivatives | Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands) Net derivative financial instrument (loss) gain $ (2,574) $ (3,247) $ (13,201) $ 7,856 |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Pension and retirement plan | |
Components of net periodic pension costs | Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands) Service cost $ 3,938 $ 3,786 $ 11,813 $ 11,358 Total net periodic pension cost within selling, general and administrative expenses 3,938 3,786 11,813 11,358 Interest cost 3,976 5,638 11,928 16,914 Expected return on plan assets (12,421) (12,668) (37,261) (38,003) Amortization of prior service cost 75 534 226 1,603 Recognized net actuarial loss 5,151 3,658 15,453 10,972 Total net periodic pension benefit within other income (expense), net (3,219) (2,838) (9,654) (8,514) Net periodic pension cost $ 719 $ 948 $ 2,159 $ 2,844 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Earnings per share | |
Basic and diluted earnings per share calculation | Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands, except per share data) Numerator: Net income (loss) $ 107,484 $ (128,661) $ 107,759 $ (83,242) Denominator: Weighted average common shares for basic earnings per share 99,542 99,479 99,125 101,013 Net effect of dilutive stock-based compensation awards 705 — 888 — Weighted average common shares for diluted earnings per share 100,247 99,479 100,013 101,013 Basic earnings (loss) per share $ 1.08 $ (1.29) $ 1.09 $ (0.82) Diluted earnings (loss) per share $ 1.07 $ (1.29) $ 1.08 $ (0.82) Stock options excluded from earnings per share calculation due to anti-dilutive effect 642 1,431 793 1,018 |
Additional cash flow informat_2
Additional cash flow information (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Additional cash flow information | |
Interest and income taxes paid | Nine Months Ended April 3, March 28, 2021 2020 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 5,232 $ 5,366 Supplemental Cash Flow Information: Interest $ 61,127 $ 88,472 Income tax net payments 56,135 14,689 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Segment information | |
Table of the Company's segments and the related financial information for each | Third Quarters Ended Nine Months Ended April 3, March 28, April 3, March 28, 2021 2020 2021 2020 (Thousands) Sales: Electronic Components $ 4,520,608 $ 3,974,669 $ 13,245,143 $ 12,472,484 Farnell 396,106 335,149 1,062,802 1,002,148 4,916,714 4,309,818 14,307,945 13,474,632 Operating income (loss): Electronic Components $ 118,565 $ 84,841 $ 306,927 $ 290,271 Farnell 23,861 23,350 50,412 65,109 142,426 108,191 357,339 355,380 Corporate (31,885) (37,833) (102,114) (95,416) Restructuring, integration and other expenses (17,574) (19,211) (55,943) (58,073) Goodwill and long-lived asset impairment expense — (145,836) — (145,836) Amortization of acquired intangible assets and other (5,283) (21,071) (35,875) (62,603) Operating income (loss) $ 87,684 $ (115,760) $ 163,407 $ (6,548) Sales, by geographic area: Americas (1) $ 1,160,973 $ 1,203,605 $ 3,468,118 $ 3,605,944 EMEA (2) 1,585,631 1,512,476 4,412,652 4,409,258 Asia/Pacific (3) 2,170,110 1,593,737 6,427,175 5,459,430 Sales $ 4,916,714 $ 4,309,818 $ 14,307,945 $ 13,474,632 (1) Includes sales from the United States of $1.08 billion and $1.11 billion for the third quarters ended April 3, 2021, and March 28, 2020, respectively. Includes sales from the United States of $3.24 billion and $3.37 billion for the first nine months of fiscal 2021 and 2020, respectively. (2) Includes sales from Germany and Belgium of $619.4 million and $276.4 million, respectively, for the third quarter ended April 3, 2021; and $1.71 billion and $825.8 million, respectively, for the first nine months of fiscal 2021. Includes sales from Germany and Belgium of $568.0 million and $278.3 million, respectively, for the third quarter ended March 28, 2020; and $1.69 billion and $837.7 million, respectively, for the first nine months of fiscal 2020. (3) Includes sales from China (including Hong Kong), Taiwan and Singapore of $717.7 million, $956.8 million and $249.5 million, respectively, for the third quarter ended April 3, 2021; and $2.02 billion, $2.95 billion and $774.1 million, respectively, for the first nine months of fiscal 2021. Includes sales from China (including Hong Kong), Taiwan and Singapore of $524.1 million, $649.7 million and $239.3 million, respectively, for the third quarter ended March 28, 2020; and $1.76 billion, $2.39 billion and $722.7 million, respectively, for the first nine months of fiscal 2020. |
Table of Assets by reportable segment and long-lived assets by geographic area | April 3, June 27, 2021 2020 (Thousands) Property, plant, and equipment, net, by geographic area: Americas (1) $ 155,834 $ 183,892 EMEA (2) 187,837 183,382 Asia/Pacific 37,412 37,333 Property, plant, and equipment, net $ 381,083 $ 404,607 (1) Includes property, plant and equipment, net, of $152.3 million and $179.4 million as of April 3, 2021, and June 27, 2020, respectively, in the United States. (2) Includes property, plant and equipment, net, of $80.2 million, $83.3 million and $21.3 million in Germany, the United Kingdom and Belgium, respectively, as of April 3, 2021; and $84.9 million, $72.7 million and $22.4 million in Germany, the United Kingdom and Belgium, respectively, as of June 27, 2020. |
Restructuring expenses (Tables)
Restructuring expenses (Tables) | 9 Months Ended |
Apr. 03, 2021 | |
Fiscal Year 2021 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility and Contract Severance Exit Costs Total (Thousands) Fiscal 2021 restructuring expenses $ 36,992 $ 2,894 $ 39,886 Cash payments (21,097) (1,497) (22,594) Non-cash amounts — (56) (56) Other, principally foreign currency translation 570 13 583 Balance at April 3, 2021 $ 16,465 $ 1,354 $ 17,819 |
Fiscal Year 2020 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 27, 2020 $ 13,574 $ 3,368 $ 16,942 Cash payments (5,569) (1,042) (6,611) Changes in estimates, net (2,901) 10 (2,891) Other, principally foreign currency translation 579 216 795 Balance at April 3, 2021 $ 5,683 $ 2,552 $ 8,235 |
Basis of presentation and new_2
Basis of presentation and new accounting pronouncements (Details) - USD ($) $ in Thousands | Jun. 27, 2020 | Apr. 03, 2021 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Allowance for credit losses | $ 65,018 | $ 85,789 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Allowance for credit losses | 17,205 | |
Allowance for credit losses net of tax | 14,500 | |
Allowance for credit losses tax | $ 2,700 |
Receivables (Details)
Receivables (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jun. 27, 2020 |
Receivables | ||
Receivables | $ 3,451,466 | $ 2,993,404 |
Allowance for Credit Losses | $ (85,789) | $ (65,018) |
Receivables - Allowance for Cre
Receivables - Allowance for Credit Losses (Details) $ in Thousands | 9 Months Ended |
Apr. 03, 2021USD ($) | |
Receivables, Allowance for Credit Loss [Roll Forward] | |
Effect of adoption of new credit loss accounting standard (Note 1) | $ 65,018 |
Credit Loss Provisions | 7,370 |
Credit Loss Recoveries | (192) |
Receivables Write offs | (5,666) |
Foreign Currency Effect and Other | 2,054 |
Receivables, Allowance for Credit Loss, Ending Balance | 85,789 |
ASU 2016-13 | Cumulative Effect, Period of Adoption, Adjustment | |
Receivables, Allowance for Credit Loss [Roll Forward] | |
Effect of adoption of new credit loss accounting standard (Note 1) | $ 17,205 |
Goodwill and intangible asset_2
Goodwill and intangible assets (Details) - USD ($) $ in Thousands | 9 Months Ended | ||||
Apr. 03, 2021 | Jun. 27, 2020 | Jun. 29, 2019 | Jun. 30, 2018 | Jul. 04, 2009 | |
Carrying amount of goodwill, by reportable segment | |||||
Carrying value | $ 773,734 | ||||
Foreign currency translation | 64,726 | ||||
Carrying value | 838,460 | ||||
Accumulated Impairment | $ 118,731 | $ 137,396 | $ 181,440 | $ 1,045,110 | |
Electronic Components | |||||
Carrying amount of goodwill, by reportable segment | |||||
Carrying value | 297,836 | ||||
Foreign currency translation | 12,142 | ||||
Carrying value | 309,978 | ||||
Farnell | |||||
Carrying amount of goodwill, by reportable segment | |||||
Carrying value | 475,898 | ||||
Foreign currency translation | 52,584 | ||||
Carrying value | $ 528,482 |
Goodwill and intangible asset_3
Goodwill and intangible assets Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2020 | Apr. 03, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | $ 406,276 | $ 439,938 |
Accumulated Amortization | (340,839) | (406,168) |
Net Book Value | 65,437 | 33,770 |
Intangible asset impairment | 17,473 | |
Customer related | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | 300,937 | 324,923 |
Accumulated Amortization | (266,759) | (312,189) |
Net Book Value | 34,178 | 12,734 |
Trade name | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | 51,698 | 57,259 |
Accumulated Amortization | (32,493) | (42,788) |
Net Book Value | 19,205 | 14,471 |
Technology and other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquired amount | 53,641 | 57,756 |
Accumulated Amortization | (41,587) | (51,191) |
Net Book Value | $ 12,054 | $ 6,565 |
Goodwill and intangible asset_4
Goodwill and intangible assets Textuals (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Intangible asset amortization expense | $ 5,300 | $ 21,000 | $ 35,730 | $ 62,240 |
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average life of intangible assets | 3 years |
Goodwill and intangible asset_5
Goodwill and intangible assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jun. 27, 2020 |
Fiscal Year: | ||
Remainder of fiscal 2021 | $ 5,261 | |
2022 | 15,431 | |
2023 | 6,610 | |
2024 | 3,156 | |
2025 | 1,472 | |
2026 | 1,472 | |
Thereafter | 368 | |
Net Book Value | $ 33,770 | $ 65,437 |
Debt - short-term debt (Details
Debt - short-term debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 03, 2021 | Jun. 27, 2020 | |
Components of short-term debt | ||
Short-term debt | $ 300,043 | $ 51 |
Bank credit facilities and other | ||
Components of short-term debt | ||
Short-term Debt, Weighted Average Interest Rate | 0.93% | 5.69% |
Short-term debt | $ 43 | $ 51 |
Notes Due December 2021 | ||
Components of short-term debt | ||
Short-term Debt, Weighted Average Interest Rate | 3.75% | |
Short-term debt | $ 300,000 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Apr. 03, 2021 | Jun. 27, 2020 | |
Debt Instrument [Line Items] | ||
Long-term debt before discount and debt issuance costs | $ 901,312 | $ 1,431,491 |
Discount and debt issuance costs - unamortized | (5,399) | (6,700) |
Long-term debt | $ 895,913 | $ 1,424,791 |
Revolving credit facilities | Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 1.28% | |
Long-term debt before discount and debt issuance costs | $ 230,000 | |
Notes due | Notes Due December 2021 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 3.75% | |
Long-term debt before discount and debt issuance costs | $ 300,000 | |
Notes due | Notes Due December 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.88% | 4.88% |
Long-term debt before discount and debt issuance costs | $ 350,000 | $ 350,000 |
Notes due | Notes Due April 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.63% | 4.63% |
Long-term debt before discount and debt issuance costs | $ 550,000 | $ 550,000 |
Notes due | Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 1.21% | 1.19% |
Long-term debt before discount and debt issuance costs | $ 1,312 | $ 1,491 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Thousands | Apr. 30, 2021 | Aug. 01, 2020 | Apr. 03, 2021 | Jun. 27, 2020 |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 300,043 | $ 51 | ||
Company's total debt | ||||
Debt, Long-term and Short-term, Combined Amount | 1,200,000 | 1,420,000 | ||
Total fair value | $ 1,280,000 | 1,520,000 | ||
Notes Due December 2021 | ||||
Debt Instrument [Line Items] | ||||
Spread over base rate | 3.75% | |||
Short-term debt | $ 300,000 | |||
Notes Due December 2021 | Forecast | ||||
Debt Instrument [Line Items] | ||||
Loss on extinguishment of debt | $ (5,000) | |||
Bank credit facilities and other | ||||
Debt Instrument [Line Items] | ||||
Short-term debt | 43 | 51 | ||
Revolving credit facilities | Accounts receivable securitization program | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | 450,000 | |||
Term | 1 year | |||
Accounts Receivable from Securitization | $ 683,300 | 703,800 | ||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | |||
Revolving credit facilities | Accounts receivable securitization program | one-month LIBOR | ||||
Debt Instrument [Line Items] | ||||
Spread over base rate | 1.05% | |||
Revolving credit facilities | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | $ 1,250,000 | |||
Term | 5 years | |||
Line of credit facility contingent increase to maximum borrowing capacity | $ 1,500,000 | |||
Letter of Credit | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | 200,000 | |||
Letters of credit outstanding, amount | 1,300 | $ 1,600 | ||
Notes Payable In Certain Approved Currencies | Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing amount | $ 300,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||||
Lease term | 17 years | 17 years | ||
Lease Cost | ||||
Operating lease cost | $ 18,608 | $ 19,257 | $ 55,105 | $ 57,633 |
Variable lease cost | 5,584 | 5,496 | 17,296 | 15,594 |
Total lease cost | $ 24,192 | $ 24,753 | $ 72,401 | $ 73,227 |
Leases (Operating Lease Commitm
Leases (Operating Lease Commitments) (Details) $ in Thousands | Apr. 03, 2021USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2021 | $ 18,649 |
2022 | 63,946 |
2023 | 54,508 |
2024 | 39,425 |
2025 | 32,493 |
Thereafter | 162,426 |
Total future operating lease payments | 371,447 |
Total imputed interest on operating lease liabilities | (64,157) |
Total operating lease liabilities | $ 307,290 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Leases [Abstract] | ||
Operating lease weighted-average remaining lease term | 9 years 2 months 12 days | |
Operating lease weighted-average discount rate | 3.80% | |
Cash paid for operating lease liabilities | $ 44,219 | $ 46,418 |
Operating lease assets obtained from new operating lease liabilities | $ 36,150 | $ 30,750 |
Derivative financial instrume_3
Derivative financial instruments Textuals (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Apr. 03, 2021 | Jun. 27, 2020 | |
Derivative fair value | ||
Derivative assets fair value | $ 14,781 | $ 18,989 |
Derivative liabilities fair value | $ 24,196 | $ 15,605 |
Minimum | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than one year) | 60 days | |
Maximum | Foreign Exchange Forward | ||
Derivatives, Fair Value [Line Items] | ||
Maximum maturity of foreign exchange contracts (less than one year) | 1 year |
Derivative financial instrume_4
Derivative financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Derivative financial instruments | ||||
Net derivative financial instrument (loss) gain | $ (2,574) | $ (3,247) | $ (13,201) | $ 7,856 |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Apr. 03, 2021 | Jun. 27, 2020 | |
Loss Contingency, Estimate [Abstract] | ||
Estimate of possible loss | $ 14.7 | $ 18.8 |
Gain on legal settlement | $ 8.2 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Income taxes | ||||
Effective tax rate | (53.30%) | (18.60%) | (32.70%) | (26.60%) |
Pension and retirement plans (P
Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Components of net periodic pension costs | ||||
Service cost | $ 3,938 | $ 3,786 | $ 11,813 | $ 11,358 |
Interest cost | 3,976 | 5,638 | 11,928 | 16,914 |
Expected return on plan assets | (12,421) | (12,668) | (37,261) | (38,003) |
Amortization of prior service cost | 75 | 534 | 226 | 1,603 |
Recognized net actuarial loss | 5,151 | 3,658 | 15,453 | 10,972 |
Net periodic pension cost | 719 | 948 | 2,159 | 2,844 |
Selling, General and Administrative Expenses | ||||
Components of net periodic pension costs | ||||
Net periodic pension cost | 3,938 | 3,786 | 11,813 | 11,358 |
Other Income, net | ||||
Components of net periodic pension costs | ||||
Net periodic pension cost | (3,219) | $ (2,838) | (9,654) | $ (8,514) |
Plan | ||||
Components of net periodic pension costs | ||||
Contributions | 12,000 | |||
Estimated future employer pension plan contributions | $ 4,000 | $ 4,000 |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2021 | Feb. 18, 2021 | Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 |
Shareholders' equity | ||||||
Authorized repurchase of common stock under Share Repurchase Program | $ 2,950,000 | $ 2,950,000 | ||||
Remaining authorized repurchase amount | $ 469,000 | $ 469,000 | ||||
Cash dividends paid per common share | $ 0.21 | $ 0.21 | $ 0.21 | $ 0.63 | $ 0.63 | |
Dividends paid on common stock | $ 20,900 | $ 62,400 | $ 63,235 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Apr. 03, 2021 | Jan. 02, 2021 | Oct. 03, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Apr. 03, 2021 | Mar. 28, 2020 | |
Numerator: | ||||||||
Net income (loss) | $ 107,484 | $ 19,163 | $ (18,889) | $ (128,661) | $ 3,668 | $ 41,752 | $ 107,759 | $ (83,242) |
Denominator: | ||||||||
Weighted average common shares for basic earnings per share | 99,542 | 99,479 | 99,125 | 101,013 | ||||
Net effect of dilutive stock based compensation awards | 705 | 888 | ||||||
Weighted average common shares for diluted earnings per share | 100,247 | 99,479 | 100,013 | 101,013 | ||||
Basic earnings (loss) per share | $ 1.08 | $ (1.29) | $ 1.09 | $ (0.82) | ||||
Diluted earnings (loss) per share | $ 1.07 | $ (1.29) | $ 1.08 | $ (0.82) | ||||
Stock Options | ||||||||
Denominator: | ||||||||
antidilutive Securities | 642 | 1,431 | 793 | 1,018 |
Additional cash flow informat_3
Additional cash flow information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Jun. 27, 2020 | |
Interest and income taxes paid | |||
Capital expenditures incurred but not paid | $ 5,232 | $ 5,366 | |
Interest | 61,127 | 88,472 | |
Income tax net payments | 56,135 | $ 14,689 | |
Cash equivalents | $ 43,200 | $ 20,900 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Sales, by segment | ||||
Sales | $ 4,916,714 | $ 4,309,818 | $ 14,307,945 | $ 13,474,632 |
Operating income (loss): | ||||
Restructuring, integration and other expenses | (17,574) | (19,211) | (55,943) | (58,073) |
Goodwill and long-lived asset impairment expense | 145,836 | 145,836 | ||
Amortization of acquired intangible assets and other | (5,283) | (21,071) | (35,875) | (62,603) |
Operating income (loss) | 87,684 | (115,760) | 163,407 | (6,548) |
Segment | ||||
Operating income (loss): | ||||
Operating income (loss) | 142,426 | 108,191 | 357,339 | 355,380 |
Corporate | ||||
Operating income (loss): | ||||
Corporate | (31,885) | (37,833) | (102,114) | (95,416) |
Electronic Components | Segment | ||||
Sales, by segment | ||||
Sales | 4,520,608 | 3,974,669 | 13,245,143 | 12,472,484 |
Operating income (loss): | ||||
Operating income (loss) | 118,565 | 84,841 | 306,927 | 290,271 |
Farnell | Segment | ||||
Sales, by segment | ||||
Sales | 396,106 | 335,149 | 1,062,802 | 1,002,148 |
Operating income (loss): | ||||
Operating income (loss) | $ 23,861 | $ 23,350 | $ 50,412 | $ 65,109 |
Segment information (Sales, by
Segment information (Sales, by geographic area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Apr. 03, 2021 | Mar. 28, 2020 | |
Sales, by geographic area: | ||||
Sales | $ 4,916,714 | $ 4,309,818 | $ 14,307,945 | $ 13,474,632 |
Americas | ||||
Sales, by geographic area: | ||||
Sales | 1,160,973 | 1,203,605 | 3,468,118 | 3,605,944 |
United States | ||||
Sales, by geographic area: | ||||
Sales | 1,080,000 | 1,110,000 | 3,240,000 | 3,370,000 |
EMEA | ||||
Sales, by geographic area: | ||||
Sales | 1,585,631 | 1,512,476 | 4,412,652 | 4,409,258 |
Germany | ||||
Sales, by geographic area: | ||||
Sales | 619,400 | 568,000 | 1,710,000 | 1,690,000 |
Belgium | ||||
Sales, by geographic area: | ||||
Sales | 276,400 | 278,300 | 825,800 | 837,700 |
Asia Pacific | ||||
Sales, by geographic area: | ||||
Sales | 2,170,110 | 1,593,737 | 6,427,175 | 5,459,430 |
Taiwan | ||||
Sales, by geographic area: | ||||
Sales | 956,800 | 649,700 | 2,950,000 | 2,390,000 |
China (including Hong Kong) | ||||
Sales, by geographic area: | ||||
Sales | 717,700 | 524,100 | 2,020,000 | 1,760,000 |
SINGAPORE | ||||
Sales, by geographic area: | ||||
Sales | $ 249,500 | $ 239,300 | $ 774,100 | $ 722,700 |
Segment information (Property,
Segment information (Property, plant and equipment, net, by geographic area) (Details) - USD ($) $ in Thousands | Apr. 03, 2021 | Jun. 27, 2020 |
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | $ 381,083 | $ 404,607 |
Americas | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 155,834 | 183,892 |
United States | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 152,300 | 179,400 |
EMEA | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 187,837 | 183,382 |
Germany | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 80,200 | 84,900 |
United Kingdom | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 83,300 | 72,700 |
Belgium | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | 21,300 | 22,400 |
Asia Pacific | ||
Property, plant and equipment, net, by geographic area | ||
Property, plant and equipment, net | $ 37,412 | $ 37,333 |
Restructuring expenses (Details
Restructuring expenses (Details) $ in Thousands | 9 Months Ended |
Apr. 03, 2021USD ($) | |
Fiscal Year 2021 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | $ 39,886 |
Cash payments | (22,594) |
Non-cash amounts | (56) |
Other, principally foreign currency translation | 583 |
Ending Balance | 17,819 |
Fiscal Year 2020 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 16,942 |
Cash payments | (6,611) |
Changes in estimates, net | (2,891) |
Other, principally foreign currency translation | 795 |
Ending Balance | 8,235 |
Severance | Fiscal Year 2021 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 36,992 |
Cash payments | (21,097) |
Other, principally foreign currency translation | 570 |
Ending Balance | 16,465 |
Severance | Fiscal Year 2020 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 13,574 |
Cash payments | (5,569) |
Changes in estimates, net | (2,901) |
Other, principally foreign currency translation | 579 |
Ending Balance | 5,683 |
Facility and Contract Exit Costs | Fiscal Year 2021 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 2,894 |
Cash payments | (1,497) |
Non-cash amounts | (56) |
Other, principally foreign currency translation | 13 |
Ending Balance | 1,354 |
Facility and Contract Exit Costs | Fiscal Year 2020 And Prior Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 3,368 |
Cash payments | (1,042) |
Changes in estimates, net | 10 |
Other, principally foreign currency translation | 216 |
Ending Balance | $ 2,552 |
Restructuring expenses (Textual
Restructuring expenses (Textuals) (Details) $ in Thousands | 9 Months Ended | |
Apr. 03, 2021USD ($)employee | Jun. 27, 2020USD ($) | |
Fiscal Year 2021 Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 39,886 | |
Restructuring Reserve | 17,819 | |
Fiscal Year 2021 Restructuring Liabilities | Electronic Components | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 22,500 | |
Fiscal Year 2021 Restructuring Liabilities | Farnell | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 9,400 | |
Fiscal Year 2021 Restructuring Liabilities | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 8,000 | |
Fiscal Year 2021 Restructuring Liabilities | Minimum | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of employee reductions under Severance charges | employee | 300 | |
Fiscal Year 2020 And Prior Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 8,235 | $ 16,942 |