Document and Entity Information
Document and Entity Information Document - shares | 9 Months Ended | |
Mar. 30, 2024 | Apr. 27, 2024 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 30, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-4224 | |
Entity Registrant Name | AVNET, INC. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-1890605 | |
Entity Address, Address Line One | 2211 South 47th Street | |
Entity Address, City or Town | Phoenix | |
Entity Address, State or Province | AZ | |
Entity Address, Postal Zip Code | 85034 | |
City Area Code | 480 | |
Local Phone Number | 643-2000 | |
Title of 12(b) Security | Common stock, par value $1.00 per share | |
Trading Symbol | AVT | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 90,380,230 | |
Entity Central Index Key | 0000008858 | |
Current Fiscal Year End Date | --06-29 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 30, 2024 | Jul. 01, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 218,473 | $ 288,230 |
Receivables | 4,315,063 | 4,763,788 |
Inventories | 5,751,872 | 5,465,031 |
Prepaid and other current assets | 200,428 | 233,804 |
Total current assets | 10,485,836 | 10,750,853 |
Property, plant and equipment, net | 561,560 | 441,557 |
Goodwill | 780,506 | 780,629 |
Operating lease assets | 219,572 | 221,698 |
Other assets | 277,763 | 282,422 |
Total assets | 12,325,237 | 12,477,159 |
Current liabilities: | ||
Short-term debt | 548,519 | 70,636 |
Accounts payable | 3,324,043 | 3,373,820 |
Accrued expenses and other | 565,047 | 753,130 |
Short-term operating lease liabilities | 55,063 | 51,792 |
Total current liabilities | 4,492,672 | 4,249,378 |
Long-term debt | 2,406,421 | 2,988,029 |
Long-term operating lease liabilities | 183,427 | 190,621 |
Other liabilities | 253,620 | 297,462 |
Total liabilities | 7,336,140 | 7,725,490 |
Commitments and contingencies (Note 7) | ||
Shareholders' equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 90,395,434 shares and 91,504,053 shares, respectively | 90,395 | 91,504 |
Additional paid-in capital | 1,709,747 | 1,691,334 |
Retained earnings | 3,625,012 | 3,378,212 |
Accumulated other comprehensive loss | (436,057) | (409,381) |
Total shareholders' equity | 4,989,097 | 4,751,669 |
Total liabilities and shareholders' equity | $ 12,325,237 | $ 12,477,159 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 30, 2024 | Jul. 01, 2023 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares, issued | 90,395,434 | 91,504,053 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Income Statement [Abstract] | ||||
Sales | $ 5,653,591 | $ 6,514,619 | $ 18,194,153 | $ 19,982,273 |
Revenue, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Cost of sales | $ 4,984,318 | $ 5,702,771 | $ 16,070,591 | $ 17,618,151 |
Cost, Product and Service [Extensible List] | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember | us-gaap:TechnologyServiceMember |
Gross profit | $ 669,273 | $ 811,848 | $ 2,123,562 | $ 2,364,122 |
Selling, general and administrative expenses | 467,275 | 498,219 | 1,419,253 | 1,460,984 |
Restructuring, integration and other expenses | 11,847 | 24,132 | ||
Operating income | 190,151 | 313,629 | 680,177 | 903,138 |
Other (expense) income, net | (14,707) | 1,653 | (17,144) | 3,452 |
Interest and other financing expenses, net | (73,496) | (71,695) | (218,593) | (175,813) |
Gain on legal settlements and other | 86,499 | 61,705 | ||
Income before taxes | 101,948 | 243,587 | 530,939 | 792,482 |
Income tax expense | 13,114 | 56,161 | 114,906 | 176,910 |
Net income | $ 88,834 | $ 187,426 | $ 416,033 | $ 615,572 |
Earnings per share: | ||||
Basic | $ 0.98 | $ 2.05 | $ 4.59 | $ 6.67 |
Diluted | $ 0.97 | $ 2.03 | $ 4.52 | $ 6.58 |
Shares used to compute earnings per share: | ||||
Basic | 90,430 | 91,436 | 90,726 | 92,226 |
Diluted | 91,256 | 92,456 | 92,075 | 93,616 |
Cash dividends paid per common share | $ 0.31 | $ 0.29 | $ 0.93 | $ 0.87 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Net income | $ 88,834 | $ 187,426 | $ 416,033 | $ 615,572 |
Other comprehensive loss, net of tax: | ||||
Pension adjustments | (25) | 387 | 2,167 | 10,586 |
Total other comprehensive (loss) income, net of tax | (78,604) | 45,062 | (26,676) | 96,850 |
Total comprehensive income, net of tax | 10,230 | 232,488 | 389,357 | 712,422 |
Foreign Exchange Forward | ||||
Other comprehensive loss, net of tax: | ||||
Foreign currency translation and other | (89,686) | 60,082 | (27,559) | 101,671 |
Cross-Currency Swap | ||||
Other comprehensive loss, net of tax: | ||||
Foreign currency translation and other | $ 11,107 | $ (15,407) | $ (1,284) | $ (15,407) |
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. 02, 2022 | $ 95,702 | $ 1,656,907 | $ 2,921,399 | $ (481,248) | $ 4,192,760 |
Shares issued Beginning Balance at Jul. 02, 2022 | 95,702,000 | ||||
Net income | 184,261 | 184,261 | |||
Other comprehensive income (loss) | (191,797) | (191,797) | |||
Cash dividends | (26,998) | (26,998) | |||
Repurchases of common stock | $ (3,445) | (144,457) | (147,902) | ||
Repurchase of common stock (in shares) | (3,445,000) | ||||
Stock-based compensation | $ 72 | 8,939 | 9,011 | ||
Stock-based compensation (in shares) | 72,000 | ||||
Shares issued Ending Balance at Oct. 01, 2022 | 92,329,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Oct. 01, 2022 | $ 92,329 | 1,665,846 | 2,934,205 | (673,045) | 4,019,335 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jul. 02, 2022 | $ 95,702 | 1,656,907 | 2,921,399 | (481,248) | 4,192,760 |
Shares issued Beginning Balance at Jul. 02, 2022 | 95,702,000 | ||||
Net income | 615,572 | ||||
Other comprehensive income (loss) | 96,850 | ||||
Shares issued Ending Balance at Apr. 01, 2023 | 91,414,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 01, 2023 | $ 91,414 | 1,678,673 | 3,249,912 | (384,398) | 4,635,601 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Oct. 01, 2022 | $ 92,329 | 1,665,846 | 2,934,205 | (673,045) | 4,019,335 |
Shares issued Beginning Balance at Oct. 01, 2022 | 92,329,000 | ||||
Net income | 243,886 | 243,886 | |||
Other comprehensive income (loss) | 243,585 | 243,585 | |||
Cash dividends | (26,307) | (26,307) | |||
Repurchases of common stock | $ (1,629) | (62,795) | (64,424) | ||
Repurchase of common stock (in shares) | (1,629,000) | ||||
Stock-based compensation | $ 35 | 13,553 | 13,588 | ||
Stock-based compensation (in shares) | 35,000 | ||||
Shares issued Ending Balance at Dec. 31, 2022 | 90,735,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 31, 2022 | $ 90,735 | 1,679,399 | 3,088,989 | (429,460) | 4,429,663 |
Net income | 187,426 | 187,426 | |||
Other comprehensive income (loss) | 45,062 | 45,062 | |||
Cash dividends | (26,503) | (26,503) | |||
Stock-based compensation | $ 679 | (726) | (47) | ||
Stock-based compensation (in shares) | 679,000 | ||||
Shares issued Ending Balance at Apr. 01, 2023 | 91,414,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Apr. 01, 2023 | $ 91,414 | 1,678,673 | 3,249,912 | (384,398) | 4,635,601 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jul. 01, 2023 | $ 91,504 | 1,691,334 | 3,378,212 | (409,381) | $ 4,751,669 |
Shares issued Beginning Balance at Jul. 01, 2023 | 91,504,000 | 91,504,053 | |||
Net income | 209,268 | $ 209,268 | |||
Other comprehensive income (loss) | (93,761) | (93,761) | |||
Cash dividends | (28,320) | (28,320) | |||
Repurchases of common stock | $ (559) | (26,484) | (27,043) | ||
Repurchase of common stock (in shares) | (559,000) | ||||
Stock-based compensation | $ 39 | 10,731 | 10,770 | ||
Stock-based compensation (in shares) | 39,000 | ||||
Shares issued Ending Balance at Sep. 30, 2023 | 90,984,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Sep. 30, 2023 | $ 90,984 | 1,702,065 | 3,532,676 | (503,142) | 4,822,583 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jul. 01, 2023 | $ 91,504 | 1,691,334 | 3,378,212 | (409,381) | $ 4,751,669 |
Shares issued Beginning Balance at Jul. 01, 2023 | 91,504,000 | 91,504,053 | |||
Net income | $ 416,033 | ||||
Other comprehensive income (loss) | $ (26,676) | ||||
Shares issued Ending Balance at Mar. 30, 2024 | 90,395,000 | 90,395,434 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 30, 2024 | $ 90,395 | 1,709,747 | 3,625,012 | (436,057) | $ 4,989,097 |
Stockholders' Equity Attributable to Parent, Beginning Balance at Sep. 30, 2023 | $ 90,984 | 1,702,065 | 3,532,676 | (503,142) | 4,822,583 |
Shares issued Beginning Balance at Sep. 30, 2023 | 90,984,000 | ||||
Net income | 117,931 | 117,931 | |||
Other comprehensive income (loss) | 145,689 | 145,689 | |||
Cash dividends | (27,817) | (27,817) | |||
Repurchases of common stock | $ (1,255) | (58,595) | (59,850) | ||
Repurchase of common stock (in shares) | (1,255,000) | ||||
Stock-based compensation | $ 31 | 11,816 | 11,847 | ||
Stock-based compensation (in shares) | 31,000 | ||||
Shares issued Ending Balance at Dec. 30, 2023 | 89,760,000 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Dec. 30, 2023 | $ 89,760 | 1,713,881 | 3,564,195 | (357,453) | 5,010,383 |
Net income | 88,834 | 88,834 | |||
Other comprehensive income (loss) | (78,604) | (78,604) | |||
Cash dividends | (28,017) | (28,017) | |||
Stock-based compensation | $ 635 | (4,134) | $ (3,499) | ||
Stock-based compensation (in shares) | 635,000 | ||||
Shares issued Ending Balance at Mar. 30, 2024 | 90,395,000 | 90,395,434 | |||
Stockholders' Equity Attributable to Parent, Ending Balance at Mar. 30, 2024 | $ 90,395 | $ 1,709,747 | $ 3,625,012 | $ (436,057) | $ 4,989,097 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 416,033 | $ 615,572 |
Non-cash and other reconciling items: | ||
Depreciation and amortization | 64,151 | 65,039 |
Amortization of Operating Lease Assets | 40,181 | 39,962 |
Deferred income taxes | 12,895 | (11,053) |
Stock-based compensation | 27,150 | 30,057 |
Other, net | 7,932 | 7,986 |
Changes in (net of effects from businesses acquired and divested): | ||
Receivables | 424,437 | (320,097) |
Inventories | (311,104) | (1,033,381) |
Accounts payable | (23,247) | (331,352) |
Accrued expenses and other, net | (242,698) | (10,974) |
Net cash flows provided by (used for) operating activities | 415,730 | (948,241) |
Cash flows from financing activities: | ||
Issuance of notes, net of discounts | 498,615 | |
Borrowings (repayments) under accounts receivable securitization, net | (80,100) | 261,000 |
Borrowings (repayments) under senior unsecured credit facility, net | (49,057) | 763,991 |
Borrowings (repayments) under bank credit facilities and other debt, net | 22,884 | (90,256) |
Repurchases of common stock | (86,027) | (221,282) |
Dividends paid on common stock | (84,154) | (79,807) |
Other, net | (8,033) | (9,814) |
Net cash flows (used for) provided by financing activities | (284,487) | 1,122,447 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (200,210) | (137,804) |
Other, net | 629 | (16,326) |
Net cash flows used for investing activities | (199,581) | (154,130) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Including Disposal Group and Discontinued Operations | (1,419) | 12,168 |
Cash and cash equivalents: | ||
(decrease) increase | (69,757) | 32,244 |
Cash and cash equivalents at beginning of year | 288,230 | 153,693 |
Cash and cash equivalents at end of year | $ 218,473 | $ 185,937 |
Basis of presentation and new a
Basis of presentation and new accounting pronouncements | 9 Months Ended |
Mar. 30, 2024 | |
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. Certain reclassifications have been made to fiscal 2023 balances to correspond to the fiscal 2024 consolidated financial statement presentation. Preparing financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates and assumptions. Interim results of operations do not necessarily indicate the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2023. Recently adopted accounting pronouncements In September 2022, the FASB issued ASU No. 2022-04, Liabilities (subtopic 405-50): Supplier Finance Programs (“ASU No. 2022-04”) to enhance the transparency of certain supplier finance programs to assist financial statement users in understanding the effect of such programs on a company’s working capital, liquidity, and cash flows. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude of such programs. The Company adopted this guidance in the first quarter of fiscal 2024, except for the amendment on roll-forward information, which is effective for the Company in fiscal 2025. The Company’s adoption of ASU No. 2022-04 did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Tax Disclosures In November 2023, the FASB issued ASU No. 2023-07, Segment reporting (Topic 280): Improvements to Reportable Segment Disclosures |
Working capital
Working capital | 9 Months Ended |
Mar. 30, 2024 | |
Working capital | |
Working capital | 2. Working capital Receivables The Company’s receivables and allowance for credit losses were as follows: March 30, July 1, 2024 2023 (Thousands) Receivables $ 4,427,588 $ 4,876,631 Allowance for Credit Losses $ (112,525) $ (112,843) The Company had the following activity in the allowance for credit losses during the first nine months of fiscal 2024 and fiscal 2023: March 30, April 1, 2024 2023 (Thousands) Balance at beginning of the period $ 112,843 $ 113,902 Credit Loss Provisions 7,920 9,079 Credit Loss Recoveries (812) (140) Receivables Write Offs (6,784) (14,868) Foreign Currency Effect and Other (642) 2,249 Balance at end of the period $ 112,525 $ 110,222 Inventories The Company’s inventories are primarily comprised of electronic components purchased from the Company’s suppliers, which are available for sale to customers in the normal course of the Company’s electronic component distribution business. Classified within inventories are electronic components held for supply chain service engagements where the Company is acting as an agent on behalf of an Original Equipment Manufacturer or in some cases the component supplier. Given that these supply chain services involve purchasing and warehousing components as part of the services, the Company classifies the underlying components within inventories on the consolidated balance sheets. Components held for supply chain services where the Company is acting as an agent represented approximately 11% of inventories as of March 30, 2024, and approximately 8% of inventories as of July 1, 2023. |
Goodwill
Goodwill | 9 Months Ended |
Mar. 30, 2024 | |
Goodwill | |
Goodwill and intangible assets | 3. Goodwill The following table presents the change in goodwill by reportable segment for the first nine months ended March 30, 2024. Electronic Components Farnell Total (Thousands) Carrying value at July 1, 2023 (1) $ 296,829 $ 483,800 $ 780,629 Foreign currency translation (467) 344 (123) Carrying value at March 30, 2024 (1) $ 296,362 $ 484,144 $ 780,506 (1) Includes accumulated impairments of $1,482,677 from prior fiscal years. |
Debt
Debt | 9 Months Ended |
Mar. 30, 2024 | |
Debt | |
Debt | 4. Debt Short-term debt consists of the following (carrying balances in thousands): March 30, July 1, March 30, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program (due December 2024) 6.18 % — $ 475,700 $ — Other short-term debt 5.61 % 5.08 % 72,819 70,636 Short-term debt $ 548,519 $ 70,636 The Company has a trade accounts receivable securitization program (the “Securitization Program”) in the United States with a group of financial institutions. The Securitization Program allows the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings of up to $700 million. The Securitization Program does not qualify for off balance sheet accounting treatment and any borrowings under the Securitization Program are recorded as debt in the consolidated balance sheets. Under the Securitization Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $1.13 billion and $1.27 billion at March 30, 2024, and July 1, 2023, respectively. The Securitization Program contains certain covenants relating to the quality of the receivables sold. Other short-term debt consists of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the ongoing working capital requirements of the Company, including its foreign operations. Long-term debt consists of the following (carrying balances in thousands): March 30, July 1, March 30, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program — 5.99 % $ — $ 555,800 Credit Facility 5.25 % 4.85 % 745,128 796,552 Other long-term debt 4.74 % — 23,599 — Public notes due: April 2026 4.63 % 4.63 % 550,000 550,000 May 2031 3.00 % 3.00 % 300,000 300,000 June 2032 5.50 % 5.50 % 300,000 300,000 March 2028 6.25 % 6.25 % 500,000 500,000 Long-term debt before discount and debt issuance costs 2,418,727 3,002,352 Discount and debt issuance costs – unamortized (12,306) (14,323) Long-term debt $ 2,406,421 $ 2,988,029 The Company has a five-year $1.50 billion revolving credit facility (the “Credit Facility”) with a syndicate of banks, which expires in August 2027. It consists of revolving credit facilities and the issuance of up to $200.0 million of letters of credit and up to $300.0 million of loans in certain approved currencies. As of March 30, 2024, and July 1, 2023, there were $0.9 million in letters of credit issued under the Credit Facility. Under the Credit Facility, the Company may select from various interest rate options, currencies, and maturities. The Credit Facility contains certain covenants, including various limitations on debt incurrence, share repurchases, dividends, investments, and capital expenditures. The Credit Facility also includes a financial covenant requiring the Company to maintain a leverage ratio not to exceed a certain threshold, which the Company was in compliance with as of March 30, 2024, and July 1, 2023. As of March 30, 2024, the carrying value and fair value of the Company’s total debt was $2.95 billion and $2.90 billion, respectively. At July 1, 2023, the carrying value and fair value of the Company’s total debt was $3.06 billion and $2.98 billion, respectively. Fair value for public notes was estimated based on quoted market prices (Level 1) and, for other forms of debt, fair value approximates carrying value due to the market based variable nature of the interest rates on those debt facilities (Level 2). |
Leases
Leases | 9 Months Ended |
Mar. 30, 2024 | |
Leases [Abstract] | |
Leases | 5. Leases Substantially all the Company’s leases are classified as operating leases and are predominately related to real property for distribution centers, office space, and integration facilities with a lease term of up to 14 years. The Company’s equipment leases are primarily for automobiles and distribution center 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 March 30, April 1, March 30, April 1, 2024 2023 2024 2023 Operating lease cost $ 17,199 $ 14,354 $ 46,904 $ 47,836 Variable lease cost 6,459 5,043 22,303 17,071 Total lease cost $ 23,658 $ 19,397 $ 69,207 $ 64,907 Future minimum operating lease payments as of March 30, 2024, are as follows (in thousands): Fiscal Year Remainder of fiscal 2024 $ 17,512 2025 58,941 2026 47,946 2027 29,411 2028 23,191 Thereafter 102,416 Total future operating lease payments 279,417 Total imputed interest on operating lease liabilities (40,927) Total operating lease liabilities $ 238,490 Other information pertaining to operating leases consists of the following: Nine Months Ended March 30, April 1, 2024 2023 Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 7.7 8.4 Weighted-average discount rate 3.8 % 3.8 % Supplemental Cash Flow Information (in thousands) Cash paid for operating lease liabilities $ 42,996 $ 43,030 Operating lease assets obtained from new operating lease liabilities $ 42,544 $ 34,318 |
Derivative financial instrument
Derivative financial instruments | 9 Months Ended |
Mar. 30, 2024 | |
Derivative financial instruments | |
Derivative financial instruments | 6. Derivative financial instruments Many of the Company’s subsidiaries purchase and sell products in currencies other than their functional currencies, which subjects the Company to the risks associated with fluctuations in currency exchange rates. This foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase from suppliers. The Company’s foreign operations transactions are denominated primarily in the following currencies: U.S. Dollar, Euro, British Pound, Japanese Yen, Chinese Yuan, Taiwan Dollar, Canadian Dollar, and Mexican Peso. The Company also, to a lesser extent, has foreign operations transactions in other EMEA and Asian foreign currencies. The Company uses economic hedges to reduce this risk utilizing natural hedging ( i.e. In fiscal 2023, the Company entered into a fixed-to-fixed rate cross currency swap (the “cross-currency swap”) with a notional amount of $500.0 million, or €472.6 million, that is set to mature in March 2028. The Company designated this derivative contract as a net investment hedge of its European operations and elected the spot method for measuring hedge effectiveness. Changes in fair value of the cross-currency swap is presented in “Accumulated other comprehensive loss” in the consolidated balance sheets. Amounts related to the cross-currency swap recognized directly in net income represent net periodic interest settlements and accruals, which are recognized in “Interest and other financing expenses, net,” on the consolidated statements of operations. The fair value of the cross-currency swaps is based on Level 2 criteria under the ASC 820 fair value hierarchy. The Company uses these derivative financial instruments to manage risks associated with foreign currency exchange rates and interest rates. The Company does not enter derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. The locations and fair values of the Company’s derivative financial instruments in the Company’s consolidated balance sheets are as follows: March 30, July 1, 2024 2023 (Thousands) Economic hedges Prepaid and other current assets $ 8,456 $ 69,104 Accrued expenses and other $ 12,144 $ 68,594 Cross-currency swap Other liabilities $ 24,134 $ 22,849 The locations of derivative financial instruments on the Company’s consolidated statements of operations are as follows: Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands) Economic hedges Other (expense) income, net $ (1,134) $ 18,359 $ (21,867) $ 29,543 Cross currency swap Interest and other financing expense, net $ 1,116 $ (524) $ 3,352 $ (524) |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Mar. 30, 2024 | |
Commitments and contingencies | |
Commitments and contingencies | 7. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in, various lawsuits, claims, investigations, and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Company’s financial condition, liquidity, or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations. For certain of these matters, it is not possible to determine the ultimate outcome, and the Company cannot reasonably estimate the maximum potential exposure or the range of possible loss, particularly regarding matters in early stages. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position or liquidity but could possibly be material to its results of operations in any single reporting period. As of March 30, 2024, and July 1, 2023, the Company had aggregate estimated liabilities of $17.2 million and $22.7 million, respectively, classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates. Gain on Legal Settlements and Other During the first nine months of fiscal 2024 and the first nine months of fiscal 2023, the Company recorded a gain on legal settlements and other of $86.5 million and $61.7 million, respectively, in connection with the settlement of claims filed against certain manufacturers of capacitors. During the first nine months of fiscal 2024 and fiscal 2023, the Company received $90.7 million and $51.2 million, respectively, in cash related to these settlements, which were classified as operating cash flows in the Company’s Consolidated Statements of Cash Flows. During the first quarter of fiscal 2024, the Company reached an $86.5 million settlement with a manufacturer of capacitors which was also realized in cash that same quarter. This settlement is included in the gains on legal settlements discussed above. |
Income taxes
Income taxes | 9 Months Ended |
Mar. 30, 2024 | |
Income taxes | |
Income taxes | 8 . Income taxes The below discussion of the effective tax rate for the periods presented in the consolidated statements of operations is in comparison to the 21% U.S. statutory federal income tax rate. The Company’s effective tax rate on its income before taxes was 12.9% in the third quarter of fiscal 2024. During the third quarter of fiscal 2024, the Company’s effective tax rate was favorably impacted primarily by (i) decreases to unrecognized tax benefit reserves net of settlements and (ii) the mix of income in lower tax foreign jurisdictions. During the third quarter of fiscal 2023, the Company’s effective tax rate on its income before taxes was 23.1%. During the third quarter of fiscal 2023, the Company’s effective tax rate was unfavorably impacted primarily by (i) the impact of U.S state taxes and (ii) the mix of income in higher tax jurisdictions, partially offset by (iii) decreases to unrecognized tax benefit reserves net of settlements. For the first nine months of fiscal 2024, the Company’s effective tax rate on its income before taxes was 21.6%. The effective tax rate for the first nine months of fiscal 2024 was unfavorably impacted primarily by (i) the impact of U.S. state taxes, partially offset by (ii) decreases to valuation allowances. During the first nine months of fiscal 2023, the Company’s effective tax rate on its income before taxes was 22.3%. The effective tax rate for the first nine months of fiscal 2023 was unfavorably impacted primarily by (i) the mix of income in higher tax jurisdictions and (ii) the impact of U.S. state taxes, partially offset by (iii) decreases to unrecognized tax benefit reserves net of settlements. The Organization for Economic Co-operation and Development (OECD) has introduced a framework to implement a global minimum corporate tax of 15%, referred to as Pillar Two. It is uncertain whether the U.S. will enact legislation to adopt Pillar Two. Pillar Two rules have been enacted in certain countries where the Company has operations and those will be effective in fiscal year 2025. The Company is currently evaluating the application, implementation, and tax impact of the Pillar Two rules for reporting and compliance purposes. |
Pension and retirement plan
Pension and retirement plan | 9 Months Ended |
Mar. 30, 2024 | |
Pension and retirement plan | |
Pension and retirement plans | 9. Pension plan The Company has a noncontributory defined benefit pension plan that covers substantially all current and some former U.S. employees (the “Plan”). Components of net periodic pension cost for the Plan was as follows: Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands) Service cost within selling, general and administrative expenses $ 2,563 $ 3,003 $ 7,689 $ 9,011 Interest cost 6,145 6,682 18,434 20,047 Expected return on plan assets (9,986) (12,215) (29,956) (36,645) Amortization of prior service cost 1 1 3 3 Recognized net actuarial loss 56 617 167 1,852 Total net periodic pension benefit within other (expense) income, net (3,784) (4,915) (11,352) (14,743) Net periodic pension benefit $ (1,221) $ (1,912) $ (3,663) $ (5,732) The Company made $6.0 million of contributions during the first nine months of fiscal 2024 and expects to make additional contributions to the Plan of $2.0 million in the fourth quarter of fiscal 2024. |
Shareholders' equity
Shareholders' equity | 9 Months Ended |
Mar. 30, 2024 | |
Shareholders' equity | |
Shareholders' equity | 10. Shareholders’ equity Share repurchase program During the third quarter of fiscal 2024, the Company did not repurchase any Common stock dividend In February 2024, the Company’s Board of Directors approved a dividend of $0.31 per common share and dividend payments of $28.0 million were made in March 2024. |
Earnings per share
Earnings per share | 9 Months Ended |
Mar. 30, 2024 | |
Earnings per share | |
Earnings per share | 11. Earnings per share Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands, except per share data) Numerator: Net income $ 88,834 $ 187,426 $ 416,033 $ 615,572 Denominator: Weighted average common shares for basic earnings per share 90,430 91,436 90,726 92,226 Net effect of dilutive stock-based compensation awards 826 1,020 1,349 1,390 Weighted average common shares for diluted earnings per share 91,256 92,456 92,075 93,616 Basic earnings per share $ 0.98 $ 2.05 $ 4.59 $ 6.67 Diluted earnings per share $ 0.97 $ 2.03 $ 4.52 $ 6.58 Stock options excluded from earnings per share calculation due to an anti-dilutive effect 122 128 122 146 |
Additional cash flow informatio
Additional cash flow information | 9 Months Ended |
Mar. 30, 2024 | |
Additional cash flow information | |
Additional cash flow information | 12. Additional cash flow information Non-cash investing and financing activities and supplemental cash flow information were as follows: Nine Months Ended March 30, April 1, 2024 2023 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 13,406 $ 21,322 Supplemental Cash Flow Information: Interest $ 263,735 $ 172,425 Income tax payments, net $ 173,387 $ 154,997 Included in cash and cash equivalents as of March 30, 2024, and July 1, 2023, was $4.9 million and $3.7 million, respectively, of cash equivalents, which was primarily comprised of investment grade money market funds and overnight time deposits. |
Segment information
Segment information | 9 Months Ended |
Mar. 30, 2024 | |
Segment information | |
Segment information | 13. Segment information Electronic Components (“EC”) and Farnell (“Farnell”) are the Company’s reportable segments (“operating groups”). Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands) Sales Electronic Components $ 5,245,771 $ 6,059,635 $ 16,972,294 $ 18,693,353 Farnell 407,820 454,984 1,221,859 1,288,920 5,653,591 6,514,619 18,194,153 19,982,273 Operating income: Electronic Components $ 216,837 $ 305,244 $ 737,487 $ 869,206 Farnell 16,321 40,911 49,703 129,428 233,158 346,155 787,190 998,634 Corporate expenses (30,448) (31,650) (80,579) (90,321) Restructuring, integration, and other expenses (11,847) — (24,132) — Amortization of acquired intangible assets (712) (876) (2,302) (5,175) Operating income $ 190,151 $ 313,629 $ 680,177 $ 903,138 Sales, by geographic area: Americas $ 1,403,364 $ 1,714,943 $ 4,565,394 $ 5,075,022 EMEA 2,053,095 2,393,406 6,474,695 6,778,823 Asia 2,197,132 2,406,270 7,154,064 8,128,428 Sales $ 5,653,591 $ 6,514,619 $ 18,194,153 $ 19,982,273 |
Restructuring expenses
Restructuring expenses | 9 Months Ended |
Mar. 30, 2024 | |
Restructuring expenses | |
Restructuring expenses | 14. Restructuring expenses Fiscal 2024 During fiscal 2024, the Company executed certain restructuring actions to reduce future operating expenses including specific restructuring actions to reduce expenses within the Farnell operating group. The following table presents the activity during the first nine months of fiscal 2024 related to the restructuring liabilities established during fiscal 2024: Severance Other Total (Thousands) Fiscal 2024 restructuring expenses $ 16,578 $ 998 $ 17,576 Cash payments (6,839) — (6,839) Other, principally foreign currency translation 17 — 17 Balance at March 30, 2024 $ 9,756 $ 998 $ 10,754 Severance expense recorded in the first nine months of fiscal 2024 related to the reduction, or planned reduction, of approximately 400 employees, primarily in operations, warehouse, and business support functions. Of the $17.6 million in restructuring expenses recorded in the first nine months of fiscal 2024, $3.1 million related to EC, $9.1 million related to Farnell, and $5.4 million related to Corporate. The Company expects the majority of the remaining severance amounts to be paid by December 2024. Fiscal 2023 During fiscal 2023, the Company incurred restructuring expenses primarily related to the planned closure of a Farnell distribution center intended to reduce future operating expenses. The Company expects the majority of the remaining amounts to be paid by December 2024. The following table presents the activity during the first nine months of fiscal 2024 related to the remaining restructuring liabilities established during fiscal 2023: Facility Severance Exit Costs Total (Thousands) Balance at July 1, 2023 $ 15,507 $ 504 $ 16,011 Cash payments (15,316) — (15,316) Other, principally foreign currency translation 126 2 128 Balance at March 30, 2024 $ 317 $ 506 $ 823 |
Basis of presentation and new_2
Basis of presentation and new accounting pronouncements (Policies) | 9 Months Ended |
Mar. 30, 2024 | |
Basis of presentation and new accounting pronouncements | |
Basis of presentation | In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc. and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income, and cash flows. All such adjustments are of a normal recurring nature. Certain reclassifications have been made to fiscal 2023 balances to correspond to the fiscal 2024 consolidated financial statement presentation. Preparing financial statements in accordance with generally accepted accounting principles in the United States (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates and assumptions. Interim results of operations do not necessarily indicate the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2023. |
New accounting pronouncements | Recently adopted accounting pronouncements In September 2022, the FASB issued ASU No. 2022-04, Liabilities (subtopic 405-50): Supplier Finance Programs (“ASU No. 2022-04”) to enhance the transparency of certain supplier finance programs to assist financial statement users in understanding the effect of such programs on a company’s working capital, liquidity, and cash flows. The new guidance requires qualitative and quantitative disclosure sufficient to enable users of the financial statements to understand the nature, activity during the period, changes from period to period, and potential magnitude of such programs. The Company adopted this guidance in the first quarter of fiscal 2024, except for the amendment on roll-forward information, which is effective for the Company in fiscal 2025. The Company’s adoption of ASU No. 2022-04 did not have a material impact on the Company’s consolidated financial statements. Recently issued accounting pronouncements In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Tax Disclosures In November 2023, the FASB issued ASU No. 2023-07, Segment reporting (Topic 280): Improvements to Reportable Segment Disclosures |
Working capital (Tables)
Working capital (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Working capital | |
Schedule of receivables and allowance for credit losses | March 30, July 1, 2024 2023 (Thousands) Receivables $ 4,427,588 $ 4,876,631 Allowance for Credit Losses $ (112,525) $ (112,843) March 30, April 1, 2024 2023 (Thousands) Balance at beginning of the period $ 112,843 $ 113,902 Credit Loss Provisions 7,920 9,079 Credit Loss Recoveries (812) (140) Receivables Write Offs (6,784) (14,868) Foreign Currency Effect and Other (642) 2,249 Balance at end of the period $ 112,525 $ 110,222 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Goodwill | |
Change in goodwill balances by reportable segment | Electronic Components Farnell Total (Thousands) Carrying value at July 1, 2023 (1) $ 296,829 $ 483,800 $ 780,629 Foreign currency translation (467) 344 (123) Carrying value at March 30, 2024 (1) $ 296,362 $ 484,144 $ 780,506 (1) Includes accumulated impairments of $1,482,677 from prior fiscal years. |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Debt | |
Short-term debt | Short-term debt consists of the following (carrying balances in thousands): March 30, July 1, March 30, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program (due December 2024) 6.18 % — $ 475,700 $ — Other short-term debt 5.61 % 5.08 % 72,819 70,636 Short-term debt $ 548,519 $ 70,636 |
Long-term debt | Long-term debt consists of the following (carrying balances in thousands): March 30, July 1, March 30, July 1, 2024 2023 2024 2023 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program — 5.99 % $ — $ 555,800 Credit Facility 5.25 % 4.85 % 745,128 796,552 Other long-term debt 4.74 % — 23,599 — Public notes due: April 2026 4.63 % 4.63 % 550,000 550,000 May 2031 3.00 % 3.00 % 300,000 300,000 June 2032 5.50 % 5.50 % 300,000 300,000 March 2028 6.25 % 6.25 % 500,000 500,000 Long-term debt before discount and debt issuance costs 2,418,727 3,002,352 Discount and debt issuance costs – unamortized (12,306) (14,323) Long-term debt $ 2,406,421 $ 2,988,029 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
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 March 30, April 1, March 30, April 1, 2024 2023 2024 2023 Operating lease cost $ 17,199 $ 14,354 $ 46,904 $ 47,836 Variable lease cost 6,459 5,043 22,303 17,071 Total lease cost $ 23,658 $ 19,397 $ 69,207 $ 64,907 |
Schedule of future minimum operating lease payments | Future minimum operating lease payments as of March 30, 2024, are as follows (in thousands): Fiscal Year Remainder of fiscal 2024 $ 17,512 2025 58,941 2026 47,946 2027 29,411 2028 23,191 Thereafter 102,416 Total future operating lease payments 279,417 Total imputed interest on operating lease liabilities (40,927) Total operating lease liabilities $ 238,490 |
Schedule of other information pertaining to operating leases | Other information pertaining to operating leases consists of the following: Nine Months Ended March 30, April 1, 2024 2023 Operating Lease Term and Discount Rate Weighted-average remaining lease term in years 7.7 8.4 Weighted-average discount rate 3.8 % 3.8 % Supplemental Cash Flow Information (in thousands) Cash paid for operating lease liabilities $ 42,996 $ 43,030 Operating lease assets obtained from new operating lease liabilities $ 42,544 $ 34,318 |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Derivative financial instruments | |
Schedule of derivative instruments in the balance sheet | March 30, July 1, 2024 2023 (Thousands) Economic hedges Prepaid and other current assets $ 8,456 $ 69,104 Accrued expenses and other $ 12,144 $ 68,594 Cross-currency swap Other liabilities $ 24,134 $ 22,849 |
Schedule of gain (loss) on derivatives | Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands) Economic hedges Other (expense) income, net $ (1,134) $ 18,359 $ (21,867) $ 29,543 Cross currency swap Interest and other financing expense, net $ 1,116 $ (524) $ 3,352 $ (524) |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Pension and retirement plan | |
Components of net periodic pension costs | Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands) Service cost within selling, general and administrative expenses $ 2,563 $ 3,003 $ 7,689 $ 9,011 Interest cost 6,145 6,682 18,434 20,047 Expected return on plan assets (9,986) (12,215) (29,956) (36,645) Amortization of prior service cost 1 1 3 3 Recognized net actuarial loss 56 617 167 1,852 Total net periodic pension benefit within other (expense) income, net (3,784) (4,915) (11,352) (14,743) Net periodic pension benefit $ (1,221) $ (1,912) $ (3,663) $ (5,732) |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Earnings per share | |
Basic and diluted earnings per share calculation | Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands, except per share data) Numerator: Net income $ 88,834 $ 187,426 $ 416,033 $ 615,572 Denominator: Weighted average common shares for basic earnings per share 90,430 91,436 90,726 92,226 Net effect of dilutive stock-based compensation awards 826 1,020 1,349 1,390 Weighted average common shares for diluted earnings per share 91,256 92,456 92,075 93,616 Basic earnings per share $ 0.98 $ 2.05 $ 4.59 $ 6.67 Diluted earnings per share $ 0.97 $ 2.03 $ 4.52 $ 6.58 Stock options excluded from earnings per share calculation due to an anti-dilutive effect 122 128 122 146 |
Additional cash flow informat_2
Additional cash flow information (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Additional cash flow information | |
Interest and income taxes paid | Nine Months Ended March 30, April 1, 2024 2023 (Thousands) Non-cash Investing Activities: Capital expenditures incurred but not paid $ 13,406 $ 21,322 Supplemental Cash Flow Information: Interest $ 263,735 $ 172,425 Income tax payments, net $ 173,387 $ 154,997 |
Segment information (Tables)
Segment information (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Segment information | |
Table of the reportable segments | Third Quarters Ended Nine Months Ended March 30, April 1, March 30, April 1, 2024 2023 2024 2023 (Thousands) Sales Electronic Components $ 5,245,771 $ 6,059,635 $ 16,972,294 $ 18,693,353 Farnell 407,820 454,984 1,221,859 1,288,920 5,653,591 6,514,619 18,194,153 19,982,273 Operating income: Electronic Components $ 216,837 $ 305,244 $ 737,487 $ 869,206 Farnell 16,321 40,911 49,703 129,428 233,158 346,155 787,190 998,634 Corporate expenses (30,448) (31,650) (80,579) (90,321) Restructuring, integration, and other expenses (11,847) — (24,132) — Amortization of acquired intangible assets (712) (876) (2,302) (5,175) Operating income $ 190,151 $ 313,629 $ 680,177 $ 903,138 Sales, by geographic area: Americas $ 1,403,364 $ 1,714,943 $ 4,565,394 $ 5,075,022 EMEA 2,053,095 2,393,406 6,474,695 6,778,823 Asia 2,197,132 2,406,270 7,154,064 8,128,428 Sales $ 5,653,591 $ 6,514,619 $ 18,194,153 $ 19,982,273 |
Restructuring expenses (Tables)
Restructuring expenses (Tables) | 9 Months Ended |
Mar. 30, 2024 | |
Fiscal Year 2024 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Severance Other Total (Thousands) Fiscal 2024 restructuring expenses $ 16,578 $ 998 $ 17,576 Cash payments (6,839) — (6,839) Other, principally foreign currency translation 17 — 17 Balance at March 30, 2024 $ 9,756 $ 998 $ 10,754 |
Fiscal Year 2023 Restructuring Liabilities | |
Restructuring Cost and Reserve [Line Items] | |
Activity related to the restructuring reserves | Facility Severance Exit Costs Total (Thousands) Balance at July 1, 2023 $ 15,507 $ 504 $ 16,011 Cash payments (15,316) — (15,316) Other, principally foreign currency translation 126 2 128 Balance at March 30, 2024 $ 317 $ 506 $ 823 |
Working capital - Receivables (
Working capital - Receivables (Details) - USD ($) $ in Thousands | Mar. 30, 2024 | Jul. 01, 2023 | Apr. 01, 2023 | Jul. 02, 2022 |
Working capital | ||||
Receivables | $ 4,427,588 | $ 4,876,631 | ||
Allowance for Credit Losses | $ (112,525) | $ (112,843) | $ (110,222) | $ (113,902) |
Working capital - Allowance for
Working capital - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Receivables, Allowance for Credit Loss [Roll Forward] | ||
Receivables, Allowance for Credit Loss, Beginning Balance | $ 112,843 | $ 113,902 |
Credit Loss Provisions | 7,920 | 9,079 |
Credit Loss Recoveries | (812) | (140) |
Receivables Write Offs | (6,784) | (14,868) |
Foreign Currency Effect and Other | (642) | 2,249 |
Receivables, Allowance for Credit Loss, Ending Balance | $ 112,525 | $ 110,222 |
Working Capital - Inventory (De
Working Capital - Inventory (Details) | 9 Months Ended | 12 Months Ended |
Mar. 30, 2024 | Jul. 01, 2023 | |
Working capital | ||
Inventory held for supply chain services | 11% | 8% |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2024 | Jul. 01, 2023 | |
Carrying amount of goodwill, by reportable segment | ||
Carrying value | $ 780,629 | |
Foreign currency translation | (123) | |
Carrying value | 780,506 | |
Accumulated Impairment | 1,482,677 | $ 1,482,677 |
Electronic Components | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 296,829 | |
Foreign currency translation | (467) | |
Carrying value | 296,362 | |
Farnell | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 483,800 | |
Foreign currency translation | 344 | |
Carrying value | $ 484,144 |
Debt - short-term debt (Details
Debt - short-term debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 30, 2024 | Jul. 01, 2023 | |
Components of short-term debt | ||
Short-term debt | $ 548,519 | $ 70,636 |
Other Short -Term Debt | ||
Components of short-term debt | ||
Short-term Debt, Weighted Average Interest Rate | 5.61% | 5.08% |
Short-term debt | $ 72,819 | $ 70,636 |
Revolving credit facilities | Accounts receivable securitization program | ||
Components of short-term debt | ||
stated interest rate | 6.18% | |
Short-term debt | $ 475,700 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Mar. 30, 2024 | Jul. 01, 2023 | |
Debt Instrument [Line Items] | ||
Long-term debt before discount and debt issuance costs | $ 2,418,727 | $ 3,002,352 |
Discount and debt issuance costs - unamortized | (12,306) | (14,323) |
Long-term debt | $ 2,406,421 | $ 2,988,029 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.74% | |
Long-term debt before discount and debt issuance costs | $ 23,599 | |
Revolving credit facilities | Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Credit Facility | 700,000 | |
Long-term Debt, Weighted Average Interest Rate | 5.99% | |
Long-term debt before discount and debt issuance costs | $ 555,800 | |
Revolving credit facilities | Line of credit | ||
Debt Instrument [Line Items] | ||
Credit Facility | $ 1,500,000 | |
Long-term Debt, Weighted Average Interest Rate | 5.25% | 4.85% |
Long-term debt before discount and debt issuance costs | $ 745,128 | $ 796,552 |
Letter of Credit | Line of credit | ||
Debt Instrument [Line Items] | ||
Credit Facility | $ 200,000 | |
Notes due | Notes Due April 2026 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.63% | 4.63% |
Long-term debt before discount and debt issuance costs | $ 550,000 | $ 550,000 |
Notes due | Notes Due May 2031 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 3% | 3% |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 300,000 |
Notes due | Notes Due June 2032 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 5.50% | 5.50% |
Long-term debt before discount and debt issuance costs | $ 300,000 | $ 300,000 |
Notes due | Notes Due March 2028 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 6.25% | 6.25% |
Long-term debt before discount and debt issuance costs | $ 500,000 | $ 500,000 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 30, 2024 | Jul. 01, 2023 | |
Company's total debt | ||
Debt, Long-term and Short-term, Combined Amount | $ 2,950 | $ 3,060 |
Total fair value | 2,900 | 2,980 |
Revolving credit facilities | Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | 700 | |
Accounts Receivable from Securitization | 1,130 | 1,270 |
Revolving credit facilities | Line of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 1,500 | |
Term | 5 years | |
Letter of Credit | Line of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 200 | |
Letters of credit outstanding, amount | 0.9 | $ 0.9 |
Notes Payable In Certain Approved Currencies | Line of credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 300 | |
Notes due | Notes Due March 2028 | ||
Debt Instrument [Line Items] | ||
stated interest rate | 6.25% | 6.25% |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||||
Lessee, Operating Lease, Term of Contract | 14 years | 14 years | ||
Lease Cost | ||||
Operating lease cost | $ 17,199 | $ 14,354 | $ 46,904 | $ 47,836 |
Variable lease cost | 6,459 | 5,043 | 22,303 | 17,071 |
Total lease cost | $ 23,658 | $ 19,397 | $ 69,207 | $ 64,907 |
Leases (Operating Lease Commitm
Leases (Operating Lease Commitments) (Details) $ in Thousands | Mar. 30, 2024 USD ($) |
Leases [Abstract] | |
Remainder of fiscal 2024 | $ 17,512 |
2025 | 58,941 |
2026 | 47,946 |
2027 | 29,411 |
2028 | 23,191 |
Thereafter | 102,416 |
Total future operating lease payments | 279,417 |
Total imputed interest on operating lease liabilities | (40,927) |
Total operating lease liabilities | $ 238,490 |
Leases (Other Lease Information
Leases (Other Lease Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 30, 2024 | Apr. 01, 2023 | |
Leases [Abstract] | ||
Operating lease weighted-average remaining lease term | 7 years 8 months 12 days | 8 years 4 months 24 days |
Operating lease weighted-average discount rate | 3.80% | 3.80% |
Cash paid for operating lease liabilities | $ 42,996 | $ 43,030 |
Operating lease assets obtained from new operating lease liabilities | $ 42,544 | $ 34,318 |
Derivative financial instrume_3
Derivative financial instruments Textuals (Details) $ in Thousands, € in Millions | 9 Months Ended | ||
Mar. 30, 2024 USD ($) | Jul. 01, 2023 USD ($) | Jul. 01, 2023 EUR (€) | |
Cross-Currency Swap | |||
Derivative notional amounts | |||
Total notional amount | $ 500,000 | € 472.6 | |
Minimum | Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Maximum maturity of foreign exchange contracts (less than one year) | 60 days | ||
Maximum | Foreign Exchange Forward | |||
Derivatives, Fair Value [Line Items] | |||
Maximum maturity of foreign exchange contracts (less than one year) | 1 year | ||
Designated as Hedging Instrument | Net Investment Hedging | Cross-Currency Swap | |||
Derivative fair value | |||
Derivative liabilities fair value | $ 24,134 | 22,849 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | ||
Not Designated as Hedging Instrument Economic Hedge | Foreign Exchange Forward | |||
Derivative fair value | |||
Derivative assets fair value | $ 8,456 | $ 69,104 | |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current | Prepaid Expense and Other Assets, Current |
Derivative liabilities fair value | $ 12,144 | $ 68,594 | |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued Liabilities, Current | Accrued Liabilities, Current | Accrued Liabilities, Current |
Derivative financial instrume_4
Derivative financial instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Designated as Hedging Instrument | Net Investment Hedging | Cross-Currency Swap | ||||
Derivative [Line Items] | ||||
Interest and other financing expense, net | $ 1,116 | $ (524) | ||
Not Designated as Hedging Instrument Economic Hedge | Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Net derivative financial instrument gain (loss) | $ (1,134) | $ 18,359 | ||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | Jul. 01, 2023 | |
Loss Contingency, Estimate [Abstract] | ||||
Estimate of possible loss | $ 17.2 | $ 22.7 | ||
Gain on legal settlement and other | 86.5 | $ 61.7 | ||
Proceeds from legal settlement | $ 90.7 | $ 51.2 | ||
Legal settlement | $ 86.5 |
Income taxes (Details)
Income taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Income taxes | ||||
Effective tax rate | 12.90% | 23.10% | 21.60% | 22.30% |
Pension and retirement plans (P
Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Components of net periodic pension costs | ||||
Service cost within selling, general and administrative expenses | $ 2,563 | $ 3,003 | $ 7,689 | $ 9,011 |
Interest cost | 6,145 | 6,682 | 18,434 | 20,047 |
Expected return on plan assets | (9,986) | (12,215) | (29,956) | (36,645) |
Amortization of prior service cost | 1 | 1 | 3 | 3 |
Recognized net actuarial loss | 56 | 617 | 167 | 1,852 |
Net periodic pension cost (benefit) | (1,221) | (1,912) | (3,663) | (5,732) |
Other Income, net | ||||
Components of net periodic pension costs | ||||
Net periodic pension cost (benefit) | (3,784) | $ (4,915) | (11,352) | $ (14,743) |
Plan | ||||
Components of net periodic pension costs | ||||
Contributions | 6,000 | |||
Estimated future employer pension plan contributions | $ 2,000 | $ 2,000 |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Feb. 24, 2024 | Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Shareholders' equity | |||||
Shares repurchased during period (in shares) | 0 | ||||
Remaining authorized repurchase amount | $ 232,500 | $ 232,500 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.31 | ||||
Cash dividend paid per share | $ 0.31 | $ 0.29 | $ 0.93 | $ 0.87 | |
Dividends paid on common stock | $ 28,000 | $ 84,154 | $ 79,807 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 30, 2024 | Dec. 30, 2023 | Sep. 30, 2023 | Apr. 01, 2023 | Dec. 31, 2022 | Oct. 01, 2022 | Mar. 30, 2024 | Apr. 01, 2023 | |
Numerator: | ||||||||
Net income | $ 88,834 | $ 117,931 | $ 209,268 | $ 187,426 | $ 243,886 | $ 184,261 | $ 416,033 | $ 615,572 |
Denominator: | ||||||||
Weighted average common shares for basic earnings per share | 90,430 | 91,436 | 90,726 | 92,226 | ||||
Net effect of dilutive stock based compensation awards | 826 | 1,020 | 1,349 | 1,390 | ||||
Weighted average common shares for diluted earnings per share | 91,256 | 92,456 | 92,075 | 93,616 | ||||
Basic earnings per share | $ 0.98 | $ 2.05 | $ 4.59 | $ 6.67 | ||||
Diluted earnings per share | $ 0.97 | $ 2.03 | $ 4.52 | $ 6.58 | ||||
Stock Options | ||||||||
Denominator: | ||||||||
antidilutive Securities | 122 | 128 | 122 | 146 |
Additional cash flow informat_3
Additional cash flow information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Jul. 01, 2023 | |
Interest and income taxes paid | |||
Capital expenditures incurred but not paid | $ 13,406 | $ 21,322 | |
Interest | 263,735 | 172,425 | |
Income tax payments, net | 173,387 | $ 154,997 | |
Cash equivalents | $ 4,900 | $ 3,700 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Sales, by segment | ||||
Sales | $ 5,653,591 | $ 6,514,619 | $ 18,194,153 | $ 19,982,273 |
Operating income (loss): | ||||
Restructuring, integration and other expenses | (11,847) | (24,132) | ||
Amortization of acquired intangible assets | (712) | (876) | (2,302) | (5,175) |
Operating income | 190,151 | 313,629 | 680,177 | 903,138 |
Segment | ||||
Operating income (loss): | ||||
Operating income | 233,158 | 346,155 | 787,190 | 998,634 |
Corporate | ||||
Operating income (loss): | ||||
Corporate expenses | (30,448) | (31,650) | (80,579) | (90,321) |
Electronic Components | Segment | ||||
Sales, by segment | ||||
Sales | 5,245,771 | 6,059,635 | 16,972,294 | 18,693,353 |
Operating income (loss): | ||||
Operating income | 216,837 | 305,244 | 737,487 | 869,206 |
Farnell | Segment | ||||
Sales, by segment | ||||
Sales | 407,820 | 454,984 | 1,221,859 | 1,288,920 |
Operating income (loss): | ||||
Operating income | $ 16,321 | $ 40,911 | $ 49,703 | $ 129,428 |
Segment information (Sales, by
Segment information (Sales, by geographic area) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 30, 2024 | Apr. 01, 2023 | Mar. 30, 2024 | Apr. 01, 2023 | |
Sales, by geographic area: | ||||
Sales | $ 5,653,591 | $ 6,514,619 | $ 18,194,153 | $ 19,982,273 |
Americas | ||||
Sales, by geographic area: | ||||
Sales | 1,403,364 | 1,714,943 | 4,565,394 | 5,075,022 |
EMEA | ||||
Sales, by geographic area: | ||||
Sales | 2,053,095 | 2,393,406 | 6,474,695 | 6,778,823 |
Asia | ||||
Sales, by geographic area: | ||||
Sales | $ 2,197,132 | $ 2,406,270 | $ 7,154,064 | $ 8,128,428 |
Restructuring expenses (Details
Restructuring expenses (Details) $ in Thousands | 9 Months Ended |
Mar. 30, 2024 USD ($) | |
Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | $ 17,576 |
Cash payments | (6,839) |
Other, principally foreign currency translation | 17 |
Ending Balance | 10,754 |
Fiscal Year 2023 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 16,011 |
Cash payments | (15,316) |
Other, principally foreign currency translation | 128 |
Ending Balance | 823 |
Severance | Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 16,578 |
Cash payments | (6,839) |
Other, principally foreign currency translation | 17 |
Ending Balance | 9,756 |
Severance | Fiscal Year 2023 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 15,507 |
Cash payments | (15,316) |
Other, principally foreign currency translation | 126 |
Ending Balance | 317 |
Facility Exit Costs | Fiscal Year 2023 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Beginning Balance | 504 |
Other, principally foreign currency translation | 2 |
Ending Balance | 506 |
Other Restructuring | Fiscal Year 2024 Restructuring Liabilities | |
Activity related to the restructuring reserves | |
Restructuring expenses | 998 |
Ending Balance | $ 998 |
Restructuring expenses (Textual
Restructuring expenses (Textuals) (Details) - USD ($) | 9 Months Ended | |
Mar. 30, 2024 | Jul. 01, 2023 | |
Fiscal Year 2024 Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Number of employee reductions under Severance charges | 400 | |
Restructuring expenses | $ 17,576,000 | |
Restructuring Reserve | 10,754,000 | |
Fiscal Year 2024 Restructuring Liabilities | Electronic Components | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 3,100,000 | |
Fiscal Year 2024 Restructuring Liabilities | Farnell | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 9,100,000 | |
Fiscal Year 2024 Restructuring Liabilities | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 5,400,000 | |
Fiscal Year 2023 Restructuring Liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Reserve | $ 823,000 | $ 16,011,000 |