Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 27, 2015 | Jul. 24, 2015 | Dec. 26, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | AVNET INC | ||
Entity Central Index Key | 8,858 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 27, 2015 | ||
Current Fiscal Year End Date | --06-27 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 5,931,014,369 | ||
Entity Common Stock, Shares Outstanding | 134,457,853 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 932,553 | $ 928,971 |
Receivables, less allowances of $80,721 and $96,382, respectively | 5,054,307 | 5,220,528 |
Inventories | 2,482,183 | 2,613,363 |
Prepaid and other current assets | 173,030 | 191,337 |
Total current assets | 8,642,073 | 8,954,199 |
Property, plant and equipment, net | 568,779 | 534,999 |
Goodwill | 1,278,756 | 1,348,468 |
Intangible assets, net | 99,731 | 184,308 |
Other assets | 210,614 | 228,680 |
Total assets | 10,799,953 | 11,250,654 |
Current liabilities: | ||
Short-term debt | 331,115 | 865,088 |
Accounts payable | 3,338,052 | 3,402,369 |
Accrued expenses and other | 603,129 | 711,369 |
Total current liabilities | 4,272,296 | 4,978,826 |
Long-term debt | 1,646,501 | 1,208,951 |
Other liabilities | 196,135 | 172,684 |
Total liabilities | $ 6,114,932 | $ 6,360,461 |
Commitments and contingencies (Note 11 and 13) | ||
Shareholders’ equity: | ||
Common stock $1.00 par; authorized 300,000,000 shares; issued 135,496,472 shares and 138,285,825 shares, respectively | $ 135,496 | $ 138,286 |
Additional paid-in capital | 1,408,422 | 1,355,663 |
Retained earnings | 3,582,599 | 3,257,407 |
Accumulated other comprehensive (loss) income | (441,038) | 139,512 |
Treasury stock at cost, 31,901 shares and 36,836 shares, respectively | (458) | (675) |
Total shareholders’ equity | 4,685,021 | 4,890,193 |
Total liabilities and shareholders’ equity | $ 10,799,953 | $ 11,250,654 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Current assets: | ||
Allowance for doubtful accounts receivable, current (in dollars) | $ 80,721 | $ 96,382 |
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 | 135,496,472 | 138,285,825 |
Treasury Stock, shares | 31,901 | 36,836 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income Statement [Abstract] | |||
Sales | $ 27,924,657 | $ 27,499,654 | $ 25,458,924 |
Cost of sales | 24,731,537 | 24,273,923 | 22,479,123 |
Gross profit | 3,193,120 | 3,225,731 | 2,979,801 |
Selling, general and administrative expenses | 2,274,642 | 2,341,168 | 2,204,319 |
Restructuring, integration and other expenses | 90,805 | 94,623 | 149,501 |
Operating income | 827,673 | 789,940 | 625,981 |
Other (expense) income, net | (19,043) | (6,092) | (74) |
Interest expense | (95,665) | (104,823) | (107,653) |
Gain on legal settlement, bargain purchase and other (Note 2 and 13) | 22,102 | 31,011 | |
Income before income taxes | 712,965 | 701,127 | 549,265 |
Income tax expense | 141,052 | 155,523 | 99,192 |
Net income | $ 571,913 | $ 545,604 | $ 450,073 |
Earnings per share: | |||
Basic | $ 4.18 | $ 3.95 | $ 3.26 |
Diluted | $ 4.12 | $ 3.89 | $ 3.21 |
Shares used to compute earnings per share: | |||
Basic | 136,688 | 137,991 | 137,951 |
Diluted | 138,791 | 140,119 | 140,003 |
Cash dividends paid per common share | $ 0.64 | $ 0.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 571,913 | $ 545,604 | $ 450,073 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |||
Foreign currency translation adjustments and other | (561,022) | 108,754 | 44,597 |
Pension adjustments, net | (19,528) | 1,863 | 30,130 |
Total comprehensive (loss) income | $ (8,637) | $ 656,221 | $ 524,800 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock | Total |
Stockholders' Equity Attributable to Parent, Beginning Balance at Jun. 30, 2012 | $ 142,586 | $ 1,263,817 | $ 2,545,858 | $ (45,832) | $ (697) | $ 3,905,732 |
Net income | 450,073 | 450,073 | ||||
Translation adjustments | 44,597 | 44,597 | ||||
Pension liability adjustment, net of tax of $7,540, $5,013 and $19,062, respectively | 30,130 | 30,130 | ||||
Repurchases of common stock (Note 4) | (6,620) | (192,965) | (199,585) | |||
Stock-based compensation, including related tax benefits of $4,370, $8,432 and $4,110, respectively | 1,161 | 33,291 | (67) | 34,385 | ||
Acquisition of non-controlling interest (Note 2) | 23,793 | 23,793 | ||||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 29, 2013 | 137,127 | 1,320,901 | 2,802,966 | 28,895 | (764) | 4,289,125 |
Net income | 545,604 | 545,604 | ||||
Translation adjustments | 108,754 | 108,754 | ||||
Pension liability adjustment, net of tax of $7,540, $5,013 and $19,062, respectively | 1,863 | 1,863 | ||||
Cash dividends | (82,755) | (82,755) | ||||
Repurchases of common stock (Note 4) | (208) | (8,408) | (8,616) | |||
Stock-based compensation, including related tax benefits of $4,370, $8,432 and $4,110, respectively | 1,367 | 34,762 | 89 | 36,218 | ||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 28, 2014 | 138,286 | 1,355,663 | 3,257,407 | 139,512 | (675) | 4,890,193 |
Net income | 571,913 | 571,913 | ||||
Translation adjustments | (561,022) | (561,022) | ||||
Pension liability adjustment, net of tax of $7,540, $5,013 and $19,062, respectively | (19,528) | (19,528) | ||||
Cash dividends | (87,330) | (87,330) | ||||
Repurchases of common stock (Note 4) | (4,001) | (159,391) | (163,392) | |||
Stock-based compensation, including related tax benefits of $4,370, $8,432 and $4,110, respectively | 1,211 | 52,759 | 217 | 54,187 | ||
Stockholders' Equity Attributable to Parent, Ending Balance at Jun. 27, 2015 | $ 135,496 | $ 1,408,422 | $ 3,582,599 | $ (441,038) | $ (458) | $ 4,685,021 |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax on pension liability adjustment | $ 7,540 | $ 5,013 | $ 19,062 |
Related tax benefits on stock-based compensation | $ 4,370 | $ 8,432 | $ 4,110 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 571,913 | $ 545,604 | $ 450,073 |
Non-cash and other reconciling items: | |||
Depreciation | 95,645 | 92,464 | 88,333 |
Amortization | 51,674 | 44,724 | 32,343 |
Deferred income taxes | 18,436 | (15,644) | (10,019) |
Stock-based compensation | 62,006 | 45,916 | 43,677 |
Gain on bargain purchase and other (Note 2) | (31,011) | ||
Other, net | 87,649 | 88,687 | 75,327 |
Changes in (net of effects from businesses acquired): | |||
Receivables | (204,114) | (306,873) | (94,203) |
Inventories | (73,226) | (226,141) | 225,667 |
Accounts payable | 156,565 | 48,651 | (78,834) |
Accrued expenses and other, net | (182,665) | (79,970) | (5,156) |
Net cash flows provided by operating activities | 583,883 | 237,418 | 696,197 |
Cash flows from financing activities: | |||
Issuance of notes in a public offering, net of issuance costs | 349,258 | ||
Repayment of notes | (300,000) | ||
Borrowings under accounts receivable securitization program, net | 35,000 | 255,000 | (310,000) |
(Repayments) borrowings of bank and other debt, net | (115,173) | 38,765 | (180,941) |
Repurchases of common stock (Note 4) | (159,984) | (8,616) | (207,192) |
Dividends paid on common stock | (87,330) | (82,755) | |
Other, net | (13,501) | 9,109 | 4,792 |
Net cash flows used for financing activities | (340,988) | (88,497) | (344,083) |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (174,374) | (123,242) | (97,379) |
Acquisitions of businesses, net of cash acquired | (116,882) | (262,306) | |
Other, net | (11,969) | 2,666 | 6,631 |
Net cash flows used for investing activities | (186,343) | (237,458) | (353,054) |
Effect of exchange rate changes on cash and cash equivalents | (52,970) | 8,165 | 3,419 |
Cash and cash equivalents: | |||
— increase (decrease) | 3,582 | (80,372) | 2,479 |
— at beginning of period | 928,971 | 1,009,343 | 1,006,864 |
— at end of period | $ 932,553 | $ 928,971 | $ 1,009,343 |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Jun. 27, 2015 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significant accounting policie s Principles of consolidation — The accompanying consolidated financial statements include the accounts of Avnet, Inc. and all of its majority-owned and controlled subsidiaries (the “Company” or “Avnet”). All intercompany accounts and transactions have been eliminated. Reclassifications — Certain prior period amounts have been reclassified to conform to the current-period presentation. Fiscal year — The Company operates on a “ 52 / 53 week” fiscal year, which ends on the Saturday closest to June 30th. Fiscal 2015, 2014, and 2013 all contained 52 weeks. Unless otherwise noted, all references to “fiscal” or any other “year” shall mean the Company’s fiscal year. Management estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, reported amounts of sales and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ materially from those estimates. Cash and cash equivalents — The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. Inventories — Inventories, comprised principally of finished goods, are stated at cost (first-in, first-out) or market, whichever is lower. The Company regularly reviews the cost of inventory against its estimated market value, considering historical experience and any rights of return or price protection provided by the Company’s suppliers, and records a lower of cost or market write-down if any inventories have a cost in excess of their estimated net realizable value. Investments — Investments in joint ventures and entities (“ventures”) in which the Company has an ownership interest of greater than 50% and exercises control over the ventures are consolidated in the accompanying consolidated financial statements. Non-controlling interests in the years presented are not material and, as a result, are included in the caption “accrued expenses and other” in the accompanying consolidated balance sheets. Investments in ventures in which the Company exercises significant influence but not control are accounted for using the equity method of accounting . Investments in ventures in which the Company’s ownership interest is less than 20% and over which the Company does not exercise significant influence are accounted for using the cost method of accounting . The Company monitors ventures for events or changes in circumstances that indicate that the fair value of a venture is less than its carrying value, in which case the Company would further review the venture to determine if it is other-than-temporarily impaired. During fiscal 2015, 2014 and 2013 the Company did not have any material investments in ventures. Depreciation, amortization and useful lives — The Company reports property, plant and equipment at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, interest capitalized during the construction period, and any expenditure that substantially adds to the value of or substantially extends the useful life of an existing asset. Additionally, the Company capitalizes qualified costs related to software obtained or developed for internal use. Software obtained for internal use has generally been enterprise-level business logistics and finance software that is customized to meet the Company’s specific operational requirements. The Company begins depreciation and amortization (“depreciation”) for property, plant and equipment when an asset is both in the location and condition for its intended use. Property, plant, and equipment is depreciated using the straight-line method over their estimated useful lives. The estimated useful lives for property, plant, and equipment are typically as follows: buildings — 30 years; machinery, fixtures and equipment — 2 - 10 years; information technology hardware and software — 2 - 10 years; and leasehold improvements — over the applicable minimum lease term or economic useful life if shorter. The Company amortizes intangible assets acquired in business combinations using the straight-line method over the estimated economic useful lives of the intangible assets from the date of acquisition, which is generally between 5 - 10 years. Long-lived assets impairment — Long-lived assets, including property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (“asset group”). An impairment is recognized when the estimated undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is less than its carrying amount. An impairment is measured as the amount by which an asset group’s carrying value exceeds its estimated fair value. The Company considers a long-lived asset to be abandoned when it has ceased use of such abandoned asset and if the Company has no intent to use or repurpose the asset in the future. The Company continually evaluates the carrying value and the remain ing economic useful life of long-lived assets and will adjust the carrying value and remaining useful life if and when appropriate. Goodwill — Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. The Company does not amortize goodwill, but instead tests goodwill for impairment at least annually in the fourth quarter and, if necessary, records any impairment resulting from such goodwill impairment testing as a component of operating expenses. Impairment testing is performed at the reporting unit level, and the Company has identified six reporting units, defined as each of the three regions (Americas, EMEA, and Asia Pacific) within the Company’s two reportable segments (EM and TS). The Company will perform an interim impairment test between required annual tests if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. In performing goodwill impairment testing, the Company may first make a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value. If the qualitative assessment indicates it is more-likely-than-not that a reporting unit’s fair value is not greater than its carrying value, the Company must perform a two-step qualitative impairment test. The Company defines the fair value of a reporting unit as the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants at the impairment test date. To determine the fair value of a reporting unit, the Company primarily uses the income approach methodology of valuation, which includes the discounted cash flow method, and the market approach methodology of valuation, which considers values of comparable businesses to estimate the fair value of the Company’s reporting units. Significant management judgment is required when estimating the fair value of the Company’s reporting units from a market participant perspective including the forecasting of future operating results, the discount rates and expected future growth rates used in the discounted cash flow method of valuation, and in the selection of comparable businesses and related market multiples that are used in the market approach. If the estimated fair value of the reporting unit exceeds the carrying value assigned to that reporting unit, goodwill is not impaired and no further impairment testing is required. If the carrying value assigned to a reporting unit exceeds its estimated fair value in the first step, then the Company is required to perform the second step of the goodwill impairment test. In this step, the Company assigns the fair value of the reporting unit calculated in the first step to all of the assets and liabilities of that reporting unit, as if a market participant just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit determined in the first step of the impairment test over the total amount assigned to the assets and liabilities in the second step of the impairment test represents the implied fair value of goodwill. If the carrying value of a reporting unit’s goodwill exceeds the implied fair value of goodwill, the Company would record an impairment loss equal to the difference. If there is no such excess then all goodwill for a reporting unit is considered impaired. Foreign currency translation — The assets and liabilities of foreign operations are translated into U.S. Dollars at the exchange rates in effect at the balance sheet date, with the related translation adjustments reported as a separate component of shareholders’ equity and comprehensive income. Results of operations are translated using the average exchange rates prevailing throughout the period. Transactions denominated in currencies other than the functional currency of the Avnet subsidiaries that are party to the transactions are translated at exchange rates in effect at the balance sheet date or upon settlement of the transaction. Gains and losses from such translation are recorded in the consolidated statements of operations as a component of “other income (expense), net.” In fiscal 2015, 2014 and 2013, gains or losses on foreign currency transactions were not material. Income taxes — The Company follows the asset and liability method of accounting for income taxes. Deferred income tax assets and liabilities are recognized for the estimated future tax impact of differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized within income tax expense in the period in which the new rate is enacted. Based upon historical and estimated levels of future taxable income and analysis of other key factors, the Company may increase or decrease a valuation allowance against its deferred tax assets, as deemed necessary, to state such assets at their estimated net realizable value. The Company establishes contingent liabilities for potentially unfavorable outcomes of positions taken on certain tax matters. These liabilities are based on management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by the relevant tax authorities. There may be differences between the estimated and actual outcomes of these matters that may result in future changes in estimates to such contingent liabilities. To the extent such changes in estimates are required; the Company’s effective tax rate may potentially fluctuate as a result. In accordance with the Company’s accounting policies, accrued interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. Self-insurance — In the United States, the Company is primarily self-insured for workers’ compensation, medical, and general, product and automobile liability costs; however, the Company also has stop-loss insurance policies in place to limit the Company’s exposure to individual and aggregate claims made. Liabilities for these programs are estimated based upon outstanding claims and claims estimated to be incurred but not yet reported based upon historical loss experience. These estimates are subject to variability due to changes in trends of losses for outstanding claims and incurred but not reported claims, including external factors such as the number of and cost of claims, benefit level changes and claim settlement patterns. Revenue recognition — Revenue from the sale of products or services is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Generally, these criteria are met upon either shipment or delivery to customers, depending upon the sales terms. A majority of the Company’s product sales come from products Avnet purchases from a supplier and holds in inventory. A portion of the Company’s sales of products are shipped directly from its suppliers to its customers (“drop-ship”). In such drop-ship arrangements, Avnet negotiates the price with the customer, pays the supplier directly for the products shipped and bears credit risk of collecting payment from its customers. Furthermore, in such drop-shipment arrangements, the Company bears responsibility for accepting returns of products from the customer even if the Company, in turn, has a right to return the products to the original supplier if the products are defective. Under these sales terms, the Company serves as the principal with the customer and, therefore, recognizes the gross sale and cost of sale of the product upon shipment by the supplier. In addition, the Company has certain contractual relationships with its customers and suppliers whereby Avnet assumes an agency relationship in the sales transaction. In such agency arrangements, the Company recognizes the net fee associated with serving as an agent in sales with no associated cost of sales. Revenues from maintenance contracts where Avnet is the principal are recognized ratably over the life of the contracts, generally ranging from one to three years. Revenues are recorded net of discounts, customer rebates and estimated returns. Provisions are made for discounts and customer rebates, which are primarily timing or volume specific, and are estimated based on historical trends and anticipated customer buying patterns. Provisions for returns and other sales adjustments are estimated based on historical sales returns experience, credit memo experience and other known factors. Vendor allowances and consideration — Consideration received from suppliers for price protection, product rebates, marketing/promotional activities, or any other programs are recorded when earned under the terms and conditions of such supplier programs as adjustments to product costs or selling, general and administrative expenses depending upon the nature and contractual requirements related to the consideration received. Some of these supplier programs requires management to make estimates and may extend over one or more reporting periods. Comprehensive income — Comprehensive income represents net income for the year adjusted for certain changes in shareholders’ equity. Accumulated comprehensive income items impacting comprehensive income includes foreign currency translation and the impact of the Company’s pension liability adjustments, net of tax (see Note 4). Stock-based compensation — The Company measures stock-based payments at fair value and generally recognizes the associated operating expense in the consolidated statement of operations over the requisite service period (see Note 12). A stock-based payment is considered vested for accounting expense attribution purposes when the employee’s retention of the award is no longer contingent on providing continued service. Accordingly, the Company recognizes all stock-based compensation expense for an award on the grant date for awards granted to retirement eligible employees or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated requisite service period. The expense attribution approach for retirement eligible employees does not affect the overall amount of compensation expense recognized, but instead accelerates the recognition of expense. Restructuring and Exit Activities — The determination of when the Company accrues for involuntary termination benefits under restructuring plans depends on whether the termination benefits are provided under an on-going benefit arrangement or under a one-time benefit arrangement. The Company accounts for on-going benefit arrangements in accordance with ASC 712 Nonretirement Postemployment Benefits and accounts for one-time benefit arrangements in accordance with ASC 420 Exit or Disposal Cost Obligations . If applicable, the Company records such costs into operating expense over the terminated employee’s future service period beyond any minimum retention period. Other costs associated with restructuring or exit activities may include contract termination costs including operating leases and impairments of long-lived assets, which are expensed in accordance with ASC 420 and ASC 360 Property, Plant and Equipment , respectively. Business Combinations — The Company accounts for business acquisitions using the acquisition method of accounting and records any identifiable definite-lived intangible assets separate from goodwill. Intangible assets are recorded at their fair value based on estimates as of the date of acquisition. Goodwill is recorded as the residual amount of the purchase price consideration less the fair value assigned to the individual identifiable assets acquired and liabilities assumed as of the date of acquisition. Contingent consideration, which represents an obligation of the acquirer to transfer additional assets or equity interests to the former owner as part of the purchase price if specified future events occur or conditions are met, is accounted for at the acquisition date fair value either as a liability or as equity depending on the terms of the acquisition agreement. Concentration of credit risk — Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents and trade accounts receivable. The Company invests its excess cash primarily in overnight time deposits and institutional money market funds with highly rated financial institutions. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition and, in some instances, has obtained credit insurance coverage to reduce such risk. The Company maintains reserves for potential credit losses from customers, but has not historically experienced material losses related to individual customers or groups of customers in any particular end market or geographic area. Fair value — The Company measures financial assets and liabilities at fair value based upon an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability, in an orderly transaction between market participants. ASC 820, Fair Value Measurements , requires inputs used in valuation techniques for measuring fair value on a recurring or non-recurring basis be assigned to a hierarchical level as follows: Level 1 are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 are observable market-based inputs or unobservable inputs that are corroborated by market data and Level 3 are unobservable inputs that are not corroborated by market data. During fiscal 2015, 2014, and 2013, there were no transfers of assets measured at fair value between the three levels of fair value hierarchy. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, receivables and accounts payable approximate their fair values at June 27, 2015 due to the short-term nature of these assets and liabilities. At June 27, 2015 and June 28, 2014, the Company had $11.1 million and $ 19.7 million, respectively, of cash equivalents that were measured at fair value based upon Level 1 criteria. See Note 7 for further discussion of the fair value of the Company’s long-term debt and Note 10 for a discussion of the fair value of the Company’s pension plan assets. Derivative financial instruments — 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 (i.e., offsetting receivables and payables) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign currency exchange contracts typically with maturities of less than 60 days (“economic hedges”). The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “other income (expense), net.” Therefore, the changes in valuation of the underlying items being economically hedged are offset by the changes in fair value of the forward foreign currency exchange contracts. The amounts representing the fair value of forward foreign exchange contracts, based upon Level 2 criteria under the fair value hierarchy, are classified in the captions “other current assets” or “accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets and were not material as of June 27, 2015 and June 28, 2014. The Company did not have material gains or losses related to the forward foreign exchange contracts during fiscal 2015, fiscal 2014 and fiscal 2013. The Company does not hedge its investments in its foreign operations. The Company also does not enter into derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. Accounts receivable securitization — The Company has an accounts receivable securitization program whereby the Company sells certain receivables and retains a subordinated interest and servicing rights to those receivables. The securitization program does not qualify for off balance sheet sales accounting and is accounted for as a secured financing as discussed further in Note 3. Recently issued accounting pronouncements — In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Unrecognized tax benefits are required to be netted against all available same-jurisdiction loss or other tax carryforwards, rather than only against carryforwards that are created by the unrecognized tax benefits. ASU 2013-11 is effective for years, including interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 in the first quarter of fiscal 2015 did not have a material impact on the Company’s consolidated financial statements. In April 2014, the FASB issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which changes the criteria for determining which disposals should be presented as discontinued operations and the related disclosure requirements. ASU 2014-08 is effective for the Company on a prospective basis in the first quarter of fiscal 2016 with early adoption permitted for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The Company early adopted ASU 2014-08 in first quarter of fiscal 2015, which did not have a material impact on the Company’s consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Application of the requirements of ASU 2014-09 may require more judgment and estimates within the revenue recognition process compared to existing GAAP. In July 2015, the FASB approved a one-year delay in the effective date of ASU 2014-09, which makes the effective date for the Company the first quarter of fiscal 2019. The Company may adopt the requirements of ASU 2014-09 using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) adoption with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the potential impact of the future adoption of ASU 2014-09 on its consolidated financial statements, including the method of adoption to be used. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires the presentation of debt issuance costs in the consolidated balance sheets as a reduction to the related debt liability rather than as an asset. Amortization of debt issue costs continues to be classified as interest expense. ASU 2015-03 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The Company early adopted ASU 2015-03 for the fiscal year ended June 27, 2015, and reclassified $4.9 million of debt issuance costs from Other assets to Long-term debt in the Compa ny’s consolidated balance sheet . |
Acquisitions and divestitures
Acquisitions and divestitures | 12 Months Ended |
Jun. 27, 2015 | |
Acquisitions and divestitures | |
Acquisitions and divestitures | 2. Acquisitions and divestitures The Company had no acquisitions in fiscal 2015. As of June 27, 2015, the estimated fair value of all contingent consideration from prior year acquisitions was $31.5 million. 2014 Acquisitions During fiscal 2014 , the Company acquired three businesses with historical annualized sales of approximately $ 492.0 million (unaudited) . Cash paid for acquisitions during fiscal 2014 was $ 116.9 million, net of cash acquired. The Company has not disclosed the pro-forma impact of the fiscal 2014 acquisitions as such impact was not material to the Company’s consolidated financial position or results of operations. During fiscal 2014 and fiscal 2015, there were no material measurement period adjustments for the fiscal 2014 acquisitions. The aggregate consideration, excluding cash acquired, for the fiscal 2014 acquisitions was $ 219.7 million, which consisted of the following (in thousands): Cash paid $ Contingent consideration Total consideration $ The contingent consideration arrangements stipulate that the Company pay up to a maximum of approximately $ 50.0 million of additional consideration to the former shareholders of the acquired businesses based upon the achievement of certain future operating results. The Company estimated the fair value of the contingent consideration of $38.1 million using an income approach, which is based on significant inputs, primarily forecasted future operating results of the acquired businesses, not observable in the market and thus represents a Level 3 measurement as defined in ASC 820. The Company adjusts the fair value of contingent consideration through operating expenses if there are changes to the inputs used in the income approach and as a result of the passage of time. The following table presents the purchase price allocation for fiscal 2014 acquisitions : Acquisition Method Values (Thousands) Cash $ Receivables Inventories Other current assets Property, plant and equipment and other non-current assets Intangible assets Total identifiable assets acquired Accounts payable, accrued liabilities and other current liabilities Short-term debt Other long-term liabilities Total identifiable liabilities assumed Net identifiable assets acquired Goodwill Net assets acquired $ Goodwill of $52.0 million was assigned to the Electronics Marketing (“EM” ) reportable segment and goodwill of $10.6 million was assigne d to the Technology Solutions (“TS” ) reportable segment. The goodwill recognized is attributable primarily to expected synergies of the acquired businesses. The amount of goodwill that is expected to be deductible for income tax purposes is not material. The Company has recogn ized restructuring, integration and other expenses associated with fiscal 2014 acquisitions which are described further in Note 17. Historical Acquisitions Internix, Inc., a company publicly traded on the Tokyo Stock Exchange, was acquired in the first quarter of fiscal 2013 through a tender offer. After assessing the fair value of the identifiable assets acquired and liabilities assumed, the consideration paid was below fair value even though the price paid per share represented a premium to the trading levels at that time. During fiscal 2013, the Company recognized a gain on bargain purchase related to Internix of $32.7 million before and after tax and $0.23 per share on a diluted basis. D uring fiscal 2013, the Company also acquired the remaining non-controlling interest in a consolidated subsidiary for a purchase price that was less than its carrying value. The Company has reflected the difference between the purchase price and the carrying value of the non-controlling interest of $23.8 million as additional paid-in capital in the accompanying consolidated sta tement of shareholders’ equity. |
Accounts receivable securitizat
Accounts receivable securitization | 12 Months Ended |
Jun. 27, 2015 | |
Accounts receivable securitization | |
Accounts receivable securitization | 3. Accounts receivable securitization In August 2014, the Company amended and extended its accounts receivable securitization program (the “Program”) with a group of financial institutions to allow the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of accounts receivable, to provide security or collateral for borrowings up to $900.0 million . The Program does not qualify for off balance sheet sale accounting treatment and, as a result, any borrowings under the Program are recorded as debt on the consolidated balance sheets. Under the Program, the Company legally isolates certain U.S. trade receivables into a wholly-owned and consolidated bankruptcy remote special purpose entity. Such isolated receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $ 1.41 bi llion and $ 1.65 billion at June 27, 2015 and June 28, 2014, respectively. The Program contains certain covenants relating to the quality of the receivables sold. The Program also requires the Company to maintain certain minimum interest coverage and leverage ratios, which the Company was in compliance with as of June 27, 2015. The Program has a two -year term that expires in August 2016. As a result of the two -year term, outstanding borrowings under the Program are classified as long-term debt at June 27, 2015. There we re $ 650.0 million i n borrowings outstanding under the Program as of June 27, 2015 and $615.0 million as of June 28, 2014. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.38% . The facility fee is 0.38% . |
Shareholders' equity
Shareholders' equity | 12 Months Ended |
Jun. 27, 2015 | |
Shareholders' equity | |
Shareholders' equity | 4. Shareholders ’ equity Accumulated comprehensive income (loss) The following table includes the balances within accumulated other comprehensive income (loss): June 27, June 28, June 29, 2015 2014 2013 (Thousands) Accumulated translation adjustments and other $ $ $ Accumulated pension liability adjustments, net of income taxes Total accumulated other comprehensive income (loss) $ $ $ Comprehensive income (loss) includes foreign currency translation adjustments and pension liability adjustments. Amounts reclassified out of accumulated comprehensive income (loss), net of tax, to operating expenses during fiscal 2015, 2014 and 2013 substantially all related to net periodic pension costs as discussed further in Note 10. Share repurchase program In November 2014, the Company ’ s Board of Directors amended the Company ’ s existing share repurchase program to authorize the repurchase of up to $1.0 billion of common stock in the open market , privately negotiated transactions, block trades, accelerated share repurchase transactions or any combination of such method . The timing and actual number of shares repurchased will depend on a variety of factors such as price, corporate and regulatory requirements, and prevailing market conditions. During fiscal 2015, the Company repurchased 4.0 million shares under this program at an average market price of $ 40.84 per share for a total cost of $ 163.4 million . This amount differs from the cash used for repurchases of common stock on the consolidated statement of cash flows to the extent repurchases were not settled at the end of the year. Repurchased shares were retired. Since the beginning of the repurchase program through the end of fiscal 2015, the Company has repurchased 22.1 million shares at an aggregate cost of $ 697.5 million , and $ 302.5 million remains available for future repurchases under the share repurchase program. Common stock dividend During fiscal 2015, the Company has paid dividends of $ 0.64 per common share and $87.3 million in total. |
Property plant and equipment, n
Property plant and equipment, net | 12 Months Ended |
Jun. 27, 2015 | |
Property plant and equipment, net | |
Property, plant and equipment, net | 5. Property, plant and equipment, net Property, plant and equipment are recorded at cost and consist of the following: June 27, 2015 June 28, 2014 (Thousands) Buildings $ $ Machinery, fixtures and equipment Information technology hardware and software Leasehold improvements Depreciable property, plant and equipment, gross Accumulated depreciation Depreciable property, plant and equipment, net Land Construction in progress Property, plant and equipment, net $ $ Depreciation expense related to property, plant and equipment was $ 95.6 million, $92.5 million and $88.3 million in fiscal 2015, 2014 and 2013, respectively. |
Goodwill and intangible assets
Goodwill and intangible assets | 12 Months Ended |
Jun. 27, 2015 | |
Goodwill and intangible assets | |
Goodwill and intangible assets | 6. Goodwill and intangible assets The following table presents the change in goodwill balances by reportable segment for fiscal year 2 015. All of the accumulated impairment was recognized in fiscal 2009. Electronics Technology Marketing Solutions Total (Thousands) Gross goodwill $ $ $ Accumulated impairment Carrying value at June 28, 2014 Additions — — — Adjustments Foreign currency translation Carrying value at June 27, 2015 $ $ $ Gross goodwill $ $ $ Accumulated impairment Carrying value at June 27, 2015 $ $ $ G oodwill adjustments represent the net purchase accounting adjustments for acquisitions during the related measurement periods. Based upon the Company’s annual impairment tests performed in the fourth quarters of fiscal 2015, 2014 and 2013, there was no impairment of goodwill in the respective fiscal years. The goodwill impairment testing requirements and related assumptions used are described further in Note 1. The following table presents the Company’s acquired identifiable intangible assets : June 27, 2015 June 28, 2014 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount Amortization Value (Thousands) Customer related $ $ $ $ $ $ Trade name Other $ $ $ $ $ $ Intangible asset amortization expense was $ 51.7 million, $44.7 million and $32.3 million for fiscal 2015, 2014 and 2013 respectively. Included in fiscal 2015 amortization expense was $8.5 million of accelerated amortization for the reduction in useful lives of certain intangible asset s as a result of restructuring actions discussed further in Note 17. Intangible assets have a weighted average remaining life of approximately 5 years as of June 27, 2015. The following table presents the estimated future amortization expense for the next five fiscal years and thereafter (in thousands): Fiscal Year 2016 2017 2018 2019 2020 Thereafter Total $ |
Debt
Debt | 12 Months Ended |
Jun. 27, 2015 | |
Debt | |
Debt | 7. Debt Short-term debt consists of the following: June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Interest Rate Carrying Balance Bank credit facilities and other % % $ $ Accounts receivable securitization program — % — Notes due September 1, 2015 % — — Short-term debt $ $ Bank credit facilities and other consist of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the working capital requirements of foreign operations. See Note 3 for further information on the accounts receivable securitization program. Long-term debt consists of the following: June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program % — $ $ — 2014 Credit Facility % — — Previous credit facility — % — Notes due: September 1, 2015 — % — September 15, 2016 % % June 15, 2020 % % December 1, 2022 % % Other long-term debt % % Long-term debt before discount Discount and debt issuance costs Long-term debt $ $ At the end of fiscal 2015, the Company had a five -year $ 1.25 billion senior unsecured revolving credit facility (the “2014 Credit Facility” ) with a syndicate of banks, consisting of revolving credit facilities and the issuance of up to $ 150.0 million of letters of credit, which expires in July 2019. Subject to certain conditions, the 2014 Credit Facility may be increased up to $1.50 billion. Under the 2014 Credit Facility, the Company may select from various interest rate options, currencies and maturities. The 2014 Credit Facility contains certain covenants including various limitations on debt incurrence, share repurchases, dividends, investments and capital expenditures. The 2014 Credit Facility also includes financial covenants requiring the Company to maintain minimum interest coverage and leverage rations, which the Company was in compliance with as of June 27, 2015. At June 27, 2015 and June 28, 2014 , there were $1.9 million and $2.0 million, respectively, in letters of credit issued under the 2014 Credit Facility and a previous credit facility . Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter Subtotal Discount and debt issuance costs Total debt $ At June 27, 2015, the carrying value and fair value of the Company’s debt was $1.98 billion and $ 2.04 bi llion, respectively. At June 28, 2014, the carrying value and fair value of the Company’s debt was $ 2.08 billion and $ 2.19 billion, respectively. Fair value was estimated primarily based upon quote d market prices for the Company’ s long-term public notes. |
Accrued expenses and other
Accrued expenses and other | 12 Months Ended |
Jun. 27, 2015 | |
Accrued expenses and other | |
Accrued expenses and other | 8. Accrued expenses and other Accrued expenses and other consist of the following: June 27, 2015 June 28, 2014 (Thousands) Accrued salaries and benefits $ $ Accrued operating costs Accrued interest and banking costs Accrued restructuring costs (Note 17) Accrued income taxes Accrued other Total accrued expenses and other $ $ |
Income taxes
Income taxes | 12 Months Ended |
Jun. 27, 2015 | |
Income taxes | |
Income taxes | 9. Income taxes The components of income tax expen se (“tax provision”) are includ ed in the table below. The tax provision for deferred income taxes results from temporary differences arising pri mari ly from net operating losses, inventories valuation, receivables valuation, certain accrued amounts and depreciation and amortization, net of any changes to valuation allowances. Years Ended June 27, 2015 June 28, 2014 June 29, 2013 (Thousands) Current: Federal $ $ $ State and local Foreign Total current taxes Deferred: Federal State and local Foreign Total deferred taxes Income tax expense $ $ $ The tax provision is computed based upon income before income taxes from both U.S. and foreign operations. U.S. income before income taxes was $180.6 million, $235.4 million and $174.0 million , and foreign income before income taxes was $532.3 million, $465.7 million and $375.3 million in fiscal 2015, 2014 and 2013, respectively. Reconciliations of the federal statutory tax rate to the effective tax rates are as follows: Years Ended June 27, 2015 June 28, 2014 June 29, 2013 Federal statutory rate % % % State and local income taxes, net of federal benefit Foreign tax rates, net of valuation allowances Release of valuation allowance, net of U.S. tax expense Change in contingency reserves Tax audit settlements Other, net Effective tax rate % % % Foreign tax rates represents the impact of the difference between foreign and federal statutory rates applied to foreign income or loss and also include s the impact of valuation allowances established against the Company ’ s otherwise realizable foreign deferred tax assets, which are primarily net operating loss carry-forwards. Avnet’s effective tax rate on income before income taxes was 19.8 % in fiscal 2015 as compared with an effective tax rate of 22.2% in fiscal 2014. Included in the fiscal 2015 effective tax rate is a net tax benefit of $55.1 million, which is comprised primarily of (i) a tax benefit of $51.6 million for the release of a valuation allowance against deferred tax assets that were determined to be realizable, related to a legal entity in EME A, and (ii) a net tax benefit of $16.2 million primarily related to favorable audit settlements, partially offset by $7.6 million of tax expense primarily related to newly established valuation allowances. The fiscal 2015 effective tax rate is low er than the fiscal 2014 effective tax rate primarily due to a greater tax benefit from the valuation allowance released in fiscal 2015 as compared with the amount released in fiscal 2014. The Company applies the guidance in ASC 740 Income Taxes , which requires management to use its judgment to the appropriate weighting of all available evidence when assessing the need for the establishment or the release of valuation allowances. As part of this analysis, the Company examines all available evidence on a jurisdiction by jurisdiction basis and weighs the positive and negative evidence when determining the need for full or partial valuation allowances. The evidence considered for each jurisdiction includes, among other items: (i) the historic levels of income or losses over a range of time periods, which may extend beyond the most recent three fiscal years depending upon the historical volatility of income in an individual jurisdiction; (ii) expectations and risk associated with underlying estimates of future taxable income, including considering the historical trend of down-cycles in the electronic components and computer products industries ; and (iii) prudent and feasible tax planning strategies. As of the end of fiscal 2015, the Company released the remaining valuation allowance against significant net deferred tax assets related to a legal entity in EMEA. In recent fiscal years, such entity experienced improved earnings, which re sulted in the partial release of the valuation allowance to the extent it is more likely than not that the entity will recognize its net deferred tax assets (primarily deferred taxes related to net operating loss carry-forwards). Due to the profitability for this entity in the current year and the projections for the future, management has concluded a full release of the valuation allowance is appropriate. No provision for U.S. income taxes has been made for approximately $3.06 billion of cumulative unremitted earnings of foreign subsidiaries at June 27, 2015 because those earnings are expected to be permanently reinvested outside the U.S. A hypothetical calculation of the deferred tax liability, assuming those earnings were remitted, is not practicable. The significant components of deferred tax assets and liabilities, included primarily in “other assets” on the consolidated balance sheets, are as follows: June 27, June 28, 2015 2014 (Thousands) Deferred tax assets: Federal, state and foreign net operating loss carry-forwards $ $ Inventories valuation Receivables valuation Various accrued liabilities and other Less — valuation allowances Deferred tax liabilities: Depreciation and amortization of property, plant and equipment Net deferred tax assets $ $ The change i n valuation allowances in fiscal 2015 from fiscal 2014 was primarily due to (i) a net reduction of $93.9 million primarily due to the above mentioned release of a valuation allowance in EMEA, $51.6 million of which impacted the effective tax rate while the remainder was offset in deferred income taxes, an d (ii) a $33.1 million reduction primarily due to foreign currency changes on valuation allowances previously established in various foreign jurisdictions , partially offset by a net expense of $23.2 million primarily related to previously established valuation allowances in various foreign jurisdictions . As of June 27, 2015, the Company had foreign net operating loss carry-forwards of approximately $932.8 m illion, of which $21.1 million will expire during fiscal 201 6 and 201 7 , substantially all of which have full valuation allowances, $204.2 million have expiration dates ranging from fiscal 201 8 to 2035 and the remaining $707.5 million have no expiration date. The carrying value of the Company’s foreign net operating loss carry-forwards is dependent upon the Company’s ability to generate sufficient future taxable income in certain foreign tax jurisdictions. In addition, the Company considers historic levels of income or losses, expectations and risk associated with estimates of future taxable income and ongoing prudent and feasible tax planning strategies in assessing a tax for valuation allowance s . Estimated liabilities for unrecognized tax benefits are included in “accrued expenses and other” and “other liabilities” on the consolidated balance sheets. These contingent liabilities relate to various tax matters that result from uncertainties in the application of complex income tax regulations in the numerous jurisdictions in which the Company operates. The change in such liabilities during fiscal 2015 was primarily due to favorable audit settlements, which are included in the “reductions for tax positions taken in prior periods” caption in the following table. As of June 27, 2015, unrecognized tax benefits were $ 1 0 3 . 9 million, of which approximately $69.0 million, if recognized, would favorably impact the effective tax rate and the remaining balance would be substantially offset by valuation allowances. As of June 2 8 , 2014, unrecognized tax benefits were $ 128 . 2 million, of which approximately $112.2 million, if recognized, would favorably impact the effective tax rate, and the remaining balance would be substantially offset by valuation allowances. The estimated liability for unrecognized tax benefits included accrued interest expense and penalties of $22.6 million and $25.3 million, net of applicable state tax benefit s , as of the end of fiscal 2015 and 2014, respectively. Reconciliations of the beginning and ending liability balances for unrecognized tax benefits are as follows: June 27, 2015 June 28, 2014 (Thousands) Balance at beginning of year $ $ Additions for tax positions taken in prior periods, including interest Reductions for tax positions taken in prior periods, including interest Additions for tax positions taken in current period Reductions related to settlements with taxing authorities Reductions related to the lapse of applicable statutes of limitations Adjustments related to foreign currency translation Balance at end of year $ $ The evaluation of income tax positions requires management to estimate the ability of the Company to sustain its position and estimate the final benefit to the Company. To the extent that these estimates do not reflect the actual outcome there could be an impact on the consolidated financial statements in the period in which the position is settled, the applicable statutes of limitations expire or new information becomes available as the impact of these events are recognized in the period in which they occur. It is difficult to estimate the period in which the amount of a tax position will change as settlement may include administrative and legal proceedings whose timing the Company cannot control. The effects of settling tax positions with tax authorities and statute expirations may significantly impact the estimate for unrecognized tax benefits. Within the next twelve months, management estimates that approximately $18.1 million of these liabilities for unrecognized tax benefits will be settled by the expiration of the sta tutes of limitations or through agreement with the tax authorities for tax positions related to valuation matters and positio ns related to acquired entities; such matters are common to multinational companies . The expected cash payment related to the settlement of these contingencies is approximately $3.0 million . The Company conducts business globally and consequently files income tax returns in numerous jurisdictions including those listed in the following table. It is also routinely subject to audit in these and other countries. The Company is no longer subject to audit in its major jurisdictions for periods prior to fiscal 2008. The years remaining subject to audit, by major jurisdiction, are as follows: Jurisdiction Fiscal Year United States (Federal and state) 2012 - 2015 Taiwan and Germany 2010 - 2015 Hong Kong and United Kingdom 2009 - 2015 Netherlands and Singapore 2008 - 2015 Belgium 2014 - 2015 |
Pension and retirement plan
Pension and retirement plan | 12 Months Ended |
Jun. 27, 2015 | |
Pension and retirement plan | |
Pension and retirement plans | 10. Pension and retirement plans Pension Plan The Company’s noncontributory defined benefit pension plan (the “Plan”) covers substantially all U.S. employees. The Plan meets the definition of a defined benefit plan and as a result, the Company must apply ASC 715 Compensation – Retirement Benefits pension accounting to the Plan. The Plan itself, however, is a cash balance plan that is similar in nature to a defined contribution plan in that a participant’s benefit is defined in terms of a stated account balance. A cash balance plan provides the Company with the benefit of applying any earnings on the Plan’s investments beyond the fixed return provided to participants toward the Company’s future cash funding obligations. Employees are eligible to participate in the Plan following the first year of service during which they worked at least 1,000 hours. The Plan provides defined benefits pursuant to a cash balance feature whereby a participant accumulates a benefit based upon a percentage of current salary, which varies with age, and interest credits. The Company uses its fiscal year end as the measurement date for determining pension expense and benefit obligations for each fiscal year. The disclosures below do not include the pension plans of certain non-U.S. subsidiaries and other defined benefit plans, which are not considered material. The following table outlines changes in benefit obligations, plan assets and the funded status of the Plan as of the end of fiscal 2015 and 2014: June 27, June 28, 2015 2014 (Thousands) Changes in benefit obligations: Benefit obligations at beginning of year $ $ Service cost Interest cost Actuarial loss Benefits paid Benefit obligations at end of year $ $ Changes in plan assets: Fair value of plan assets at beginning of year $ $ Actual return on plan assets Benefits paid Contributions Fair value of plan assets at end of year $ $ Funded status of the plan recognized as a non-current liability $ $ Amounts recognized in accumulated other comprehensive income: Unrecognized net actuarial losses $ $ Unamortized prior service credits $ $ Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial gain $ $ Amortization of net actuarial losses Amortization of prior service credits $ $ Included in accumulated other comprehensi ve income at June 27, 2015 is a before tax expense of $185.8 million of net actuarial losses which have not yet been recognized in net periodic pension cost, of which $12.7 million is expected to be recognized as a component of net periodic pension cost during fiscal 201 6 . Also included is a before tax benefit of $4.5 million of prior service credits t h at have not yet been recognized in net periodic pension costs, of which $1.6 million is expected to be recognized as a component of net periodic pension costs during fiscal 201 6 . Weighted average assumptions used to calculate actuarial present values of benefit obligations are as follows: 2015 2014 Discount rate % % The discount rate selected by the Company for the Plan reflects the current rate at which the underlying liability could be settled at the measurement date as of June 27, 2015. The selected discount rate is based primarily upon an average rate determined by matching the expected cash outflows of the Plan to a yield curve constructed from a portfolio of highly rated (minimum AA rating) fixed-income debt instruments with maturities consistent with the expected cash outflows. Weighted average assumptions used to determine net benefit costs are as follows: 2015 2014 Discount rate % % Expected return on plan assets % % Components of net periodic pension cost during the last three fiscal years are as follows: Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Service cost $ $ $ Interest cost Expected return on plan assets Recognized net actuarial loss Amortization of prior service credits Net periodic pension cost $ $ $ The Company made $40.0 million of contributions in fiscal 2015 and fiscal 2014 and expects to make approximately $40.0 million of contributions in fiscal 2016. Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands): 2016 $ 2017 2018 2019 2020 2021 through 2025 The Plan’s assets are held in trust and were allocated as follows as of the measurement date at the end of fiscal 2015 and 2014: 2015 2014 Equity securities % % Fixed income debt securities % % Cash and cash equivalents % % The general investment objectives of the Plan are to maximize returns through a diversified investment portfolio in order to earn annualized returns that meet the long-term cost of funding the Plan’s pension obligations while maintaining reasonable and prudent levels of risk. The target rate of return on Plan assets is currently 8.3 % , which represents the average rate of earnings expected on the funds invested or to be invested to provide for the benefits included in the benefit obligation based upon the targeted investment allocations . This assumption has been determined by combining expectations regarding future rates of return for the investment portfolio along with the historical and expected distribution of investments by asset class and the historical rates of return for each of those asset classes. The mix of equity securities is typically diversified to obtain a blend of domestic and international investments covering multiple industries. The Plan ’s assets do not include any material investments in Avnet common stock. The Plan’s investments in debt securities are also diversified across both public and private fixed income securities. As of June 27, 2015, the Company’s target allocation for the investment portfolio is for equity securities, both domestic and international, to represent approximately 60% of the portfolio . The majority of the remaining portfolio of investments is to be invested in fixed income debt securities with various maturities . The following table sets f orth the fair value of the Plan’ s investments as of June 27, 2015 : Level 1 Level 2 Level 3 Total (Thousands) Cash and cash equivalents $ $ — $ — $ Equities: U.S. common stocks — — International common stocks — — Fixed Income: U.S. government agencies — — U.S. corporate bonds — — Total $ $ $ — $ The following table sets forth the fair value of the Plan ’ s investments as of June 28, 2014: Level 1 Level 2 Level 3 Total (Thousands) Cash and cash equivalents $ $ — $ — $ Equities: U.S. common stocks — — International common stocks — — Fixed Income: U.S. government agencies — — U.S. corporate bonds — — Total $ $ $ — $ The fair value of the Plan’s investments in equity and fixed income investments are stated at unit value, or the equivalent of net asset value, which is a practical expedient for estimating the fair values of those investments. Each of these investments may be redeemed daily without notice and there were no material unfunded commitments as of June 27, 2015 . The fixed income investments provide a steady return with medium volatility and assist with capital preservation and income generation. The equity investments have higher expected volatility and return than the fixed income investments. |
Operating leases
Operating leases | 12 Months Ended |
Jun. 27, 2015 | |
Operating leases | |
Operating leases | 11. Operating leases The Company leases many of its operating facilities and is also committed under lease agreements for transportation and operating equipment. Rent expense charged to operating expenses during the last three fiscal years is as follows: Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Rent expense under operating leases $ $ $ The aggregate future minimum operating lease commitments, principally for buildings, in fiscal 201 6 through 2020 and thereafter, are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter Total $ The preceding table includes the remaining operating lease commitments that are included as a component of the Company’s restructuring liabilities (see Note 17). |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Jun. 27, 2015 | |
Stock-based compensation | |
Stock-based compensation | 12. Stock-based compensation The Company measures all stock-based payments at fair value and recognizes related expense within operating expenses in the consolidated statements of operations over the requisite service period (generally the vesting period). During fiscal 2015, 2014, and 2013, the Company recorded stock-based compensation expense of $62.0 million, $45. 9 million and $43.7 million, respectively, for all forms of stock-based compensation awards. Stock plan At June 27, 2015, the Company had 9.7 million shares of common stock reserved for stock-based payment s, which consisted of 2.0 million shares for unvested or unexercised stock options, 4.8 million shares available for stock-based awards under plans approved by shareholders, 2.6 million shares for restricted stock units and performance shares units granted but not yet vested, and 0.3 million shares available for future purchases under the Company ’ s Employee Stock Purchase Plan (“ESPP” ). Stock options Stock option grants have a contractual life of ten years, vest in 25% increments on each anniversary of the grant date, commencing with the first anniversary, and require an exercise price of 100% of the fair market value of common stock at the date of grant. Stock-based compensation expense associated with stock options during fiscal 2015, 2014 and 2013 was $3.6 million, $4.7 million and $4.0 million, respectively. The fair value of stock options is estimated as of the date of grant using the Black-Scholes model based on the assumptions in the following table. The assumption for the expected term is based on evaluations of historical and expected future employee exercise behavior. The risk-free interest rate is based on U.S. Treasury rates as of the date of grant with maturity dates approximately equal to the expected term at the grant date. The historical volatility of Avnet’s common stock is used as the basis for the volatility assumption. The Company estimates dividend yield based upon expectations of future dividends as of the grant date. Years Ended June 27, June 28, June 29, 2015 2014 2013 Expected term (years) Risk-free interest rate % % % Weighted average volatility % % % Dividend yield % % — % The following is a summary of the changes in outstanding options for fiscal 2015: Weighted Weighted Average Average Remaining Shares Exercise Price Contractual Life Outstanding at June 28, 2014 $ 81 Months Granted 110 Months Exercised 36 Months Forfeited or expired — — — Outstanding at June 27, 2015 $ 71 Months Exercisable at June 27, 2015 $ 54 Months The weighted-average grant-date fair values of stock options granted during fiscal 2015, 2014 and 2013 were $ 11.68 , $11.45 and $11.33 , respectively. At June 27, 2015, the aggregate intrinsic value of all outstanding stock option awards was $18.5 million a nd all exercisable stock option awards was $14.0 million. The following is a summary of the changes in non-vested stock options for the fiscal year ended June 27, 2015: Weighted Average Grant-Date Shares Fair Value Non-vested stock options at June 28, 2014 $ Granted Vested Forfeited — — Non-vested stock options at June 27, 2015 $ As of June 27, 2015, there was $2.9 million of total unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted-average period of 2.1 years. The total fair value of s tock option s vested, as of the vesting dates, during fiscal 2015, 2014 and 2013 were $4.0 million, $3.7 million and $3.4 million, respectively. Cash received from stock option exercises during fiscal 2015, 2014 and 2013 totaled $2.6 million, $4.7 million, and $2.1 million, respectively. The impact of these cash receipts is included in “Other, net” as financing activity in the accompanying consolidated statements of cash flows. Restricted stock units Delivery of restricted stock unit s, and the associated compensation expense, is recognized over the vesting period and is generally subject to the employee’s continued service and employment by the Company, except for employees who are retirement eligible under the terms of the restricted stock units . As of June 27, 2015, 1.9 million shares previously awarded have not yet vested. Stock-based compensation expense associated with restricted stock unit s was $50.5 million, $34.4 million and $26.8 million for fiscal years 2015, 2014 and 2013, respectively. The following is a summary of the changes in non-vested restricted stock units for the fiscal year ended June 27, 2015: Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock units at June 28, 2014 $ Granted Vested Forfeited $ Non-vested restricted stock units at June 27, 2015 $ As of June 27, 2015, there was $ 45.2 million of total unrecognized compensation expense related to non-vested restricted stock units, which is expected to be recognized over a weighted-average period of 1.9 years. The total fair value of restricted stock units vested during fiscal 2015, 2014 and 2013 was $36.2 million, $30.5 million and $25.4 million, respectively. Performance shares units Eligible employees, including Avnet’s executive officers, may receive a portion of thei r long-term stock-based compensation through the performance share program, which allows for the vesting of shares based upon achievement of certain market and performance-based criteria (“Performance Share Program”). The Performance Share Program provides for the vesting to each grantee of a number of shares of Avnet’s common stock at the end of a three -year performance period based upon the Company’s achievement of certain performance goals established by the Compensation Committee of the Board of Directors for each Performance Share Program three-year performance period. The performance goals consist of measures of economic profit and total shareholder return. During fiscal 2015, 2014 and 2013, the Company granted 0.2 million, 0.2 million and 0.3 million performance share units, respectively, of which none have been forfeited. The actual amount of performance shares units vested at the end of each three-year period is measured based upon the actual level of achievement of the defined performance goals and can range from 0 % to 200 % of the award grant. During fiscal 2015, 2014 and 2013, the Company recognized stock-based compensation expense associated with the Performance Share Program of $6.8 million, $5.8 million and $11.9 million, respectively. Director stock-based compensation Non-employee directors are awarded shares equal to a fixed dollar amount of Avnet common stock each year as part of their director compensation. Directors may elect to receive this compensation in the form of common stock or they may elect to defer their compensation to be paid in common stock at a later date. During fiscal 2015, 2014 and 2013, compensation expense associated with the outside director stock-based compensation awards was $1.1 million, $1.0 million and $1.0 million, respectively. Employee stock purchase plan The Company has an Employee Stock Purchase Plan (“ESPP” ) under the terms of which eligible employees of the Company are allowed to purchase shares of common stock at a price equal to 95% of the fair market value on the last day of each monthly offering period. The ESPP is not compensatory for accounting purposes based on its terms. |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Jun. 27, 2015 | |
Commitments and contingencies | |
Commitments and contingencies | 13. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in various lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. The Company also is currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations, including import/export, environmental, anticorruption and competition. For certain of these matters it is not possible to determine the ultimate outcome, and the Company cannot reasonably estimate the maximum potential exposure or the range of possible loss for such matters due primarily to being in the preliminary stages of the related proceedings and investigations. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position or liquidity, but could possibly be material to our results of operations in any one reporting period. A s of June 27, 2015, the Company has aggregate estimated liabilities of approximately $17.0 million classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of that date. O f this amount, $10.0 million relates to a contingent liability for potential unpaid import duties associated with the acquisition of Bell Microproducts Inc. for estimated duties, interest and penalties that may be imposed from an ongoing compliance audit by Customs and Border Protection. During fiscal 2014, the Company received award payments of $22.1 million related to the settlement of a class action proceeding against certain manufacturers of LCD flat panel displays, which is classified within “gain on legal settlement, bargain purchase and other” in the consolidated statements of operations. |
Earnings per share
Earnings per share | 12 Months Ended |
Jun. 27, 2015 | |
Earnings per share | |
Earnings per share | 14. Earnings per share Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands, except per share data) Numerator: Net income $ $ $ Denominator: Weighted average common shares for basic earnings per share Net effect of dilutive stock options, restricted stock units and performance shares units Weighted average common shares for diluted earnings per share Basic earnings per share $ $ $ Diluted earnings per share $ $ $ Stock options excluded from earnings per share calculation due to anti-dilutive effect — — |
Additional cash flow informatio
Additional cash flow information | 12 Months Ended |
Jun. 27, 2015 | |
Additional cash flow information | |
Additional cash flow information | 15. Additional cash flow information The “Other, net” component of non-cash and other reconciling items within operating activities in the consolidated statements of cash flows consisted of the following: Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Provision for doubtful accounts receivable $ $ $ Periodic pension cost (Note 10) Other, net Total $ $ $ Interest and income taxes paid during the last three fiscal years were as follows: Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Interest $ $ $ Income taxes $ $ $ The Company includes book overdrafts as part of accounts payable on its consolidated balance sheets and reflects changes in such balances as part of cash flows from operating activities in its consolidated statements of cash flows. |
Segment information
Segment information | 12 Months Ended |
Jun. 27, 2015 | |
Segment information | |
Segment information | 16. Segment information Electronics Marketing (“EM”) and Technology Solutions (“TS”) are the Company’s reportable segments (“operating groups”). EM markets and sells semiconductors and interconnect, passive and electromechanical devices and embedded products to a diverse customer base serving many end-markets. TS focuses on the value-added distribution of enterprise computing servers and systems, software, storage, services and complex solutions from the world’s foremost technology manufacturers. TS also provides the latest hard disk drives, microprocessor, motherboard and DRAM module technologies to manufacturers of general-purpose computers and system builders. Years Ended June 27, June 28, June 29, 2015 2014 2013 (Millions) Sales: Electronics Marketing $ $ $ Technology Solutions $ $ $ Operating income (loss): Electronics Marketing $ $ $ Technology Solutions Corporate Restructuring, integration and other expenses (Note 17) Amortization of acquired intangible assets and other $ $ $ Assets: Electronics Marketing $ $ $ Technology Solutions Corporate $ $ $ Capital expenditures: Electronics Marketing $ $ $ Technology Solutions Corporate $ $ $ Depreciation & amortization expense: Electronics Marketing $ $ $ Technology Solutions Corporate $ $ $ Sales, by geographic area: Americas (1) $ $ $ EMEA (2) Asia/Pacific (3) $ $ $ Property, plant and equipment, net, by geographic area: Americas (4) $ $ $ EMEA (5) Asia/Pacific $ $ $ (1) Includes sales in the United States of $9.96 billion, $9.68 billion and $9.43 billion for fiscal 2015, 2014 and 2013, respectively. (2) Includes sales in Germany and the United Kingdom of $ 2.93 billion and $1.46 billion, respectively, for fiscal 2015. Includes sales in Germany and the United Kingdom of $3.31 billion and $1.36 billion, respectively, for fiscal 2014. Includes sales in Germany and the United Kingdom of $2.78 billion and $1.22 billion, respectively, for fiscal 2013. (3) Includes sales of $3.42 billion, $2.84 billion and $1.18 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2015. Includes sales of $2.63 billion, $2.93 billion and $1.19 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2014. Includes sales of $2.28 billion, $2.44 billion and $ 1. 16 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2013. (4) Includes property, plant and equipment, net, of $352.2 million, $298.1 million and $273.4 million in the United States for fiscal 2015, 2014 and 2013, respectively. (5) Includes property, plant and equipment, net, of $74.2 million and $74.7 million in Germany and Belgium, respectively, for fiscal 2015. Fiscal 2014 includes property, plant and equipment, net, of $95.5 million in Germany and $61.0 million in Belgium. Fiscal 2013 includes property, plant and equipment, net, of $92.7 million in Germany and $45.1 million in Belgium. Listed in the table below are the Company’ s major product categories and the related sales for each of the past three fiscal years : Years Ended June 27, June 28, June 29, 2015 2014 2013 (Millions) Semiconductors $ $ $ Computer products Connectors, passives, electromechanical and other $ $ $ Certain prior year product sales have been reclassified into different product categories to conform to the fiscal 2015 product categorization. |
Restructuring, integration and
Restructuring, integration and other expenses | 12 Months Ended |
Jun. 27, 2015 | |
Restructuring, integration and other expenses | |
Restructuring, integration and other expenses | 17. Restructuring, integration and other expenses Fiscal 2015 During fiscal 2015, the Company took certain actions in an effort to reduce future operating costs . These actions included restructuring activities for certain regional and global businesses to better align such operations, products and services with the known and anticipated demands of the Company’s suppliers and customers. In addition, the Company incurred integration and other costs primarily associated with acquired businesses and certain global and regional businesses. The following table presents the restructuring, integration and other expenses incurred during fiscal 2015: Year Ended June 27, 2015 Restructuring expenses $ Integration costs Other costs including acquisition costs Changes in estimates for prior year restructuring liabilities Restructuring, integration and other expenses before tax $ Restructuring, integration and other expenses after tax $ Restructuring, integration and other expenses per share on a diluted basis $ The activity related to the restructuring liabilities established during fiscal 2015 is presented in the following table: Facility Asset Severance Exit Costs Impairments Other Total (Thousands) Fiscal 2015 restructuring expenses $ $ $ $ $ Cash payments — Non-cash amounts — — Other, principally foreign currency translation — Balance at June 27, 2015 $ $ $ — $ — $ Severance expense recorded in fiscal 2015 related to the reduction, or planned reduction, of over 500 employees, primarily in operations, sales and business support functions, in connection with cost reduction actions taken in both operating groups. Facility exit costs primarily consist of liabilities for remaining lease obligations. Asset impairments relate to the impairment of acquired intangible assets and property, plant and equipment as a result of the underlying restructuring actions taken in fiscal 2015. Other restructuring costs related primarily to other miscellaneous restructuring a nd exit costs. Of the $58.7 million in restructuring expenses recorded during fiscal 2015, $26.0 million related to EM, $ 31.9 million related to TS and $ 0.8 m illion related to corporate business support functions. As of June 27, 2015, management expects the majority of the remaining severance, facility exit costs and other liabilities to be paid by the end of fiscal 2016. Integration costs are primarily related to the integration of acquired businesses, integration of regional and global business units and incremental costs incurred as part of the consolidation, relocation and closure of warehouse and office facilities. Integration costs include consulting costs for information technology system and business operation integration assistance, facility moving costs, legal fees, travel, meeting, marketing and communication costs that are incrementally incurred as a result of such integration activities. Also included in integration costs are incremental salary costs specific to integration, consolidation and closure activities. Other costs consists primarily of professional fees incurred for acquisitions, additional costs incurred for businesses divested or exited in current or prior periods, any ongoing facilities operating costs associated with the consolidation, relocation and closure of facilities once such facilities have been vacated or substantially vacated, and other miscellaneous costs that relate to restructuring, integration and other expenses. Integration and other costs in fiscal 2015 were comprised of many different costs, none of which were individually material. Fiscal 2014 During fiscal 2014, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expense s. The following table presents the restructuring, integration and other expenses incurred during fiscal 2014: Year Ended June 28, 2014 (Thousands) Restructuring expenses $ Integration costs Other costs including acquisition costs Changes in estimates for prior year restructuring liabilities Restructuring, integration and other expenses before tax $ Restructuring, integration and other expenses after tax $ Restructuring, integration and other expenses per share on a diluted basis $ The fiscal 2015 activity related to the remaining restructuring liabilities established during fiscal 2014 is presented in the following table: Facility Severance Exit Costs Other Total (Thousands) Balance at June 28, 2014 $ $ $ $ Cash payments Changes in estimates, net — Non-cash amounts — Other, principally foreign currency translation — Balance at June 27, 2015 $ $ $ $ Of the $65.7 million in restructuring expenses recorded during fiscal 2014, $41.3 million related to EM, $23.1 million related to TS and $1.3 million related to corporate business support functions. As of June 27, 2015, management expects the majority of the remaining severance, facility exit and other liabilities to be utilized by the end of fiscal 2016. Fiscal 2013 and prior During fiscal 2013 and prior fiscal years , the Company incurred expenses to reduce costs, including costs related to the acquisition and integration activities associated with acquired businesses as follows: Year Ended June 29, 2013 (Thousands) Restructuring expenses $ Integration costs Other costs including acquisition costs Changes in estimates for prior year restructuring liabilities Restructuring, integration and other expenses before tax $ Restructuring, integration and other expenses after tax $ Restructuring, integration and other expenses per share on a diluted basis $ Of the $120.0 million in restructuring expenses recorded during fiscal 2013 and prior , $68.9 million related to EM and $48.0 million related to TS. As of June 28, 2014, there was $ 13.1 million of restructuring liabilities remaining related to restructuring actions taken in fiscal years 2013 and prior, the majority of which relates to facility exit costs. The remaining balance for such historical restructuring liabilities as of June 27, 2015 was $5.8 million, which is expected to be paid by the end of fiscal 2016. |
Valuation And Qualifying Acccou
Valuation And Qualifying Acccounts | 12 Months Ended |
Jun. 27, 2015 | |
Valuation and Qualifying Accounts | |
Valuation and Qualifying Accounts | SCHEDULE II AVNET, INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended June 27, 2015, June 28, 2014 and June 29, 2013 Balance at Charged to Charged to Balance at Beginning of Expense Other End of Account Description Period (Income) Accounts Deductions Period (Thousands) Fiscal 2015 Allowance for doubtful accounts $ $ $ — $ (a) $ Valuation allowance on foreign tax loss carry-forwards (b) (c) — Fiscal 2014 Allowance for doubtful accounts — (a) Valuation allowance on foreign tax loss carry-forwards (d) (e) — Fiscal 2013 Allowance for doubtful accounts — (a) Valuation allowance on foreign tax loss carry-forwards (f) (g) — (a) Uncollectible receivables written off. (b) Represents a reduction primarily due to the release of a valuation allowance in EMEA, of which $60.8 million impacted the effective tax rate offset by $9.2 million, which impacted deferred taxes associated with the release of the valuation allowance . (c) Primarily related to impact of foreign currency exchange rates on valuation allowances previously established in various foreign jurisdictions. (d) Represents a reduction primarily due to the release of a valuation allowance in EMEA, of which $39.6 million impacted the effective tax rate offset by $6.0 million, which impacted deferred taxes associated with the release of the valuation allowance . (e) Primarily related to rate changes on valuation allowances previously established in various foreign jurisdictions. (f) Represent s a reduction primarily due to the release of a valuation allowance in EMEA, of which $31.9 million impacted the effective tax rate offset by $4.8 million, which impacted deferred taxes associated with the release of the valuation allowance . (g) Primarily related to additional valuation allowances for newly acquired companies and companies with a history of losses. |
Summary of significant accoun27
Summary of significant accounting policies (Policies) | 12 Months Ended |
Jun. 27, 2015 | |
Summary of significant accounting policies | |
Principles of consolidation | Principles of consolidation — The accompanying consolidated financial statements include the accounts of Avnet, Inc. and all of its majority-owned and controlled subsidiaries (the “Company” or “Avnet”). All intercompany accounts and transactions have been eliminated. |
Reclassifications | Reclassifications — Certain prior period amounts have been reclassified to conform to the current-period presentation. |
Fiscal year | Fiscal year — The Company operates on a “ 52 / 53 week” fiscal year, which ends on the Saturday closest to June 30th. Fiscal 2015, 2014, and 2013 all contained 52 weeks. Unless otherwise noted, all references to “fiscal” or any other “year” shall mean the Company’s fiscal year. |
Management estimates | Management estimates — The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities, reported amounts of sales and expenses during the reporting period and the disclosure of contingent assets and liabilities at the date of the financial statements. Actual results could differ materially from those estimates. |
Cash and cash equivalents | Cash and cash equivalents — The Company considers all highly liquid investments with an original maturity of three months or less to be cash equivalents. |
Inventories | Inventories — Inventories, comprised principally of finished goods, are stated at cost (first-in, first-out) or market, whichever is lower. The Company regularly reviews the cost of inventory against its estimated market value, considering historical experience and any rights of return or price protection provided by the Company’s suppliers, and records a lower of cost or market write-down if any inventories have a cost in excess of their estimated net realizable value. |
Investments | Investments — Investments in joint ventures and entities (“ventures”) in which the Company has an ownership interest of greater than 50% and exercises control over the ventures are consolidated in the accompanying consolidated financial statements. Non-controlling interests in the years presented are not material and, as a result, are included in the caption “accrued expenses and other” in the accompanying consolidated balance sheets. Investments in ventures in which the Company exercises significant influence but not control are accounted for using the equity method of accounting . Investments in ventures in which the Company’s ownership interest is less than 20% and over which the Company does not exercise significant influence are accounted for using the cost method of accounting . The Company monitors ventures for events or changes in circumstances that indicate that the fair value of a venture is less than its carrying value, in which case the Company would further review the venture to determine if it is other-than-temporarily impaired. During fiscal 2015, 2014 and 2013 the Company did not have any material investments in ventures. |
Depreciation and amortization | Depreciation, amortization and useful lives — The Company reports property, plant and equipment at cost, less accumulated depreciation. Cost includes the price paid to acquire or construct the assets, required installation costs, interest capitalized during the construction period, and any expenditure that substantially adds to the value of or substantially extends the useful life of an existing asset. Additionally, the Company capitalizes qualified costs related to software obtained or developed for internal use. Software obtained for internal use has generally been enterprise-level business logistics and finance software that is customized to meet the Company’s specific operational requirements. The Company begins depreciation and amortization (“depreciation”) for property, plant and equipment when an asset is both in the location and condition for its intended use. Property, plant, and equipment is depreciated using the straight-line method over their estimated useful lives. The estimated useful lives for property, plant, and equipment are typically as follows: buildings — 30 years; machinery, fixtures and equipment — 2 - 10 years; information technology hardware and software — 2 - 10 years; and leasehold improvements — over the applicable minimum lease term or economic useful life if shorter. The Company amortizes intangible assets acquired in business combinations using the straight-line method over the estimated economic useful lives of the intangible assets from the date of acquisition, which is generally between 5 - 10 years. |
Long-lived assets | Long-lived assets impairment — Long-lived assets, including property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. For purposes of recognition and measurement of an impairment loss, long-lived assets are grouped with other assets and liabilities at the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities (“asset group”). An impairment is recognized when the estimated undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is less than its carrying amount. An impairment is measured as the amount by which an asset group’s carrying value exceeds its estimated fair value. The Company considers a long-lived asset to be abandoned when it has ceased use of such abandoned asset and if the Company has no intent to use or repurpose the asset in the future. The Company continually evaluates the carrying value and the remain ing economic useful life of long-lived assets and will adjust the carrying value and remaining useful life if and when appropriate. |
Goodwill | Goodwill — Goodwill represents the excess of the purchase price of acquired businesses over the estimated fair value assigned to the individual assets acquired and liabilities assumed. The Company does not amortize goodwill, but instead tests goodwill for impairment at least annually in the fourth quarter and, if necessary, records any impairment resulting from such goodwill impairment testing as a component of operating expenses. Impairment testing is performed at the reporting unit level, and the Company has identified six reporting units, defined as each of the three regions (Americas, EMEA, and Asia Pacific) within the Company’s two reportable segments (EM and TS). The Company will perform an interim impairment test between required annual tests if facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit that has goodwill is less than its carrying value. In performing goodwill impairment testing, the Company may first make a qualitative assessment of whether it is more-likely-than-not that a reporting unit’s fair value is less than its carrying value. If the qualitative assessment indicates it is more-likely-than-not that a reporting unit’s fair value is not greater than its carrying value, the Company must perform a two-step qualitative impairment test. The Company defines the fair value of a reporting unit as the price that would be received to sell the reporting unit as a whole in an orderly transaction between market participants at the impairment test date. To determine the fair value of a reporting unit, the Company primarily uses the income approach methodology of valuation, which includes the discounted cash flow method, and the market approach methodology of valuation, which considers values of comparable businesses to estimate the fair value of the Company’s reporting units. Significant management judgment is required when estimating the fair value of the Company’s reporting units from a market participant perspective including the forecasting of future operating results, the discount rates and expected future growth rates used in the discounted cash flow method of valuation, and in the selection of comparable businesses and related market multiples that are used in the market approach. If the estimated fair value of the reporting unit exceeds the carrying value assigned to that reporting unit, goodwill is not impaired and no further impairment testing is required. If the carrying value assigned to a reporting unit exceeds its estimated fair value in the first step, then the Company is required to perform the second step of the goodwill impairment test. In this step, the Company assigns the fair value of the reporting unit calculated in the first step to all of the assets and liabilities of that reporting unit, as if a market participant just acquired the reporting unit in a business combination. The excess of the fair value of the reporting unit determined in the first step of the impairment test over the total amount assigned to the assets and liabilities in the second step of the impairment test represents the implied fair value of goodwill. If the carrying value of a reporting unit’s goodwill exceeds the implied fair value of goodwill, the Company would record an impairment loss equal to the difference. If there is no such excess then all goodwill for a reporting unit is considered impaired. |
Foreign currency translation | Foreign currency translation — The assets and liabilities of foreign operations are translated into U.S. Dollars at the exchange rates in effect at the balance sheet date, with the related translation adjustments reported as a separate component of shareholders’ equity and comprehensive income. Results of operations are translated using the average exchange rates prevailing throughout the period. Transactions denominated in currencies other than the functional currency of the Avnet subsidiaries that are party to the transactions are translated at exchange rates in effect at the balance sheet date or upon settlement of the transaction. Gains and losses from such translation are recorded in the consolidated statements of operations as a component of “other income (expense), net.” In fiscal 2015, 2014 and 2013, gains or losses on foreign currency transactions were not material. |
Income taxes | Income taxes — The Company follows the asset and liability method of accounting for income taxes. Deferred income tax assets and liabilities are recognized for the estimated future tax impact of differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities of a change in tax rates is recognized within income tax expense in the period in which the new rate is enacted. Based upon historical and estimated levels of future taxable income and analysis of other key factors, the Company may increase or decrease a valuation allowance against its deferred tax assets, as deemed necessary, to state such assets at their estimated net realizable value. The Company establishes contingent liabilities for potentially unfavorable outcomes of positions taken on certain tax matters. These liabilities are based on management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by the relevant tax authorities. There may be differences between the estimated and actual outcomes of these matters that may result in future changes in estimates to such contingent liabilities. To the extent such changes in estimates are required; the Company’s effective tax rate may potentially fluctuate as a result. In accordance with the Company’s accounting policies, accrued interest and penalties related to unrecognized tax benefits are recorded as a component of income tax expense. |
Self-insurance | Self-insurance — In the United States, the Company is primarily self-insured for workers’ compensation, medical, and general, product and automobile liability costs; however, the Company also has stop-loss insurance policies in place to limit the Company’s exposure to individual and aggregate claims made. Liabilities for these programs are estimated based upon outstanding claims and claims estimated to be incurred but not yet reported based upon historical loss experience. These estimates are subject to variability due to changes in trends of losses for outstanding claims and incurred but not reported claims, including external factors such as the number of and cost of claims, benefit level changes and claim settlement patterns. |
Revenue recognition | Revenue recognition — Revenue from the sale of products or services is recognized when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the sales price is fixed or determinable and collectability is reasonably assured. Generally, these criteria are met upon either shipment or delivery to customers, depending upon the sales terms. A majority of the Company’s product sales come from products Avnet purchases from a supplier and holds in inventory. A portion of the Company’s sales of products are shipped directly from its suppliers to its customers (“drop-ship”). In such drop-ship arrangements, Avnet negotiates the price with the customer, pays the supplier directly for the products shipped and bears credit risk of collecting payment from its customers. Furthermore, in such drop-shipment arrangements, the Company bears responsibility for accepting returns of products from the customer even if the Company, in turn, has a right to return the products to the original supplier if the products are defective. Under these sales terms, the Company serves as the principal with the customer and, therefore, recognizes the gross sale and cost of sale of the product upon shipment by the supplier. In addition, the Company has certain contractual relationships with its customers and suppliers whereby Avnet assumes an agency relationship in the sales transaction. In such agency arrangements, the Company recognizes the net fee associated with serving as an agent in sales with no associated cost of sales. Revenues from maintenance contracts where Avnet is the principal are recognized ratably over the life of the contracts, generally ranging from one to three years. Revenues are recorded net of discounts, customer rebates and estimated returns. Provisions are made for discounts and customer rebates, which are primarily timing or volume specific, and are estimated based on historical trends and anticipated customer buying patterns. Provisions for returns and other sales adjustments are estimated based on historical sales returns experience, credit memo experience and other known factors. |
Vendor allowances and consideration | Vendor allowances and consideration — Consideration received from suppliers for price protection, product rebates, marketing/promotional activities, or any other programs are recorded when earned under the terms and conditions of such supplier programs as adjustments to product costs or selling, general and administrative expenses depending upon the nature and contractual requirements related to the consideration received. Some of these supplier programs requires management to make estimates and may extend over one or more reporting periods. |
Comprehensive income | Comprehensive income — Comprehensive income represents net income for the year adjusted for certain changes in shareholders’ equity. Accumulated comprehensive income items impacting comprehensive income includes foreign currency translation and the impact of the Company’s pension liability adjustments, net of tax (see Note 4). |
Share-based compensation | Stock-based compensation — The Company measures stock-based payments at fair value and generally recognizes the associated operating expense in the consolidated statement of operations over the requisite service period (see Note 12). A stock-based payment is considered vested for accounting expense attribution purposes when the employee’s retention of the award is no longer contingent on providing continued service. Accordingly, the Company recognizes all stock-based compensation expense for an award on the grant date for awards granted to retirement eligible employees or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated requisite service period. The expense attribution approach for retirement eligible employees does not affect the overall amount of compensation expense recognized, but instead accelerates the recognition of expense. |
Restructuring and exit activities | Restructuring and Exit Activities — The determination of when the Company accrues for involuntary termination benefits under restructuring plans depends on whether the termination benefits are provided under an on-going benefit arrangement or under a one-time benefit arrangement. The Company accounts for on-going benefit arrangements in accordance with ASC 712 Nonretirement Postemployment Benefits and accounts for one-time benefit arrangements in accordance with ASC 420 Exit or Disposal Cost Obligations . If applicable, the Company records such costs into operating expense over the terminated employee’s future service period beyond any minimum retention period. Other costs associated with restructuring or exit activities may include contract termination costs including operating leases and impairments of long-lived assets, which are expensed in accordance with ASC 420 and ASC 360 Property, Plant and Equipment , respectively. |
Business Combinations | Business Combinations — The Company accounts for business acquisitions using the acquisition method of accounting and records any identifiable definite-lived intangible assets separate from goodwill. Intangible assets are recorded at their fair value based on estimates as of the date of acquisition. Goodwill is recorded as the residual amount of the purchase price consideration less the fair value assigned to the individual identifiable assets acquired and liabilities assumed as of the date of acquisition. Contingent consideration, which represents an obligation of the acquirer to transfer additional assets or equity interests to the former owner as part of the purchase price if specified future events occur or conditions are met, is accounted for at the acquisition date fair value either as a liability or as equity depending on the terms of the acquisition agreement. |
Concentration of credit risk | Concentration of credit risk — Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash and cash equivalents and trade accounts receivable. The Company invests its excess cash primarily in overnight time deposits and institutional money market funds with highly rated financial institutions. To reduce credit risk, management performs ongoing credit evaluations of its customers’ financial condition and, in some instances, has obtained credit insurance coverage to reduce such risk. The Company maintains reserves for potential credit losses from customers, but has not historically experienced material losses related to individual customers or groups of customers in any particular end market or geographic area. |
Fair value of financial instruments | Fair value — The Company measures financial assets and liabilities at fair value based upon an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability, in an orderly transaction between market participants. ASC 820, Fair Value Measurements , requires inputs used in valuation techniques for measuring fair value on a recurring or non-recurring basis be assigned to a hierarchical level as follows: Level 1 are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. Level 2 are observable market-based inputs or unobservable inputs that are corroborated by market data and Level 3 are unobservable inputs that are not corroborated by market data. During fiscal 2015, 2014, and 2013, there were no transfers of assets measured at fair value between the three levels of fair value hierarchy. The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, receivables and accounts payable approximate their fair values at June 27, 2015 due to the short-term nature of these assets and liabilities. At June 27, 2015 and June 28, 2014, the Company had $11.1 million and $ 19.7 million, respectively, of cash equivalents that were measured at fair value based upon Level 1 criteria. See Note 7 for further discussion of the fair value of the Company’s long-term debt and Note 10 for a discussion of the fair value of the Company’s pension plan assets. |
Derivative financial instruments | Derivative financial instruments — 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 (i.e., offsetting receivables and payables) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign currency exchange contracts typically with maturities of less than 60 days (“economic hedges”). The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “other income (expense), net.” Therefore, the changes in valuation of the underlying items being economically hedged are offset by the changes in fair value of the forward foreign currency exchange contracts. The amounts representing the fair value of forward foreign exchange contracts, based upon Level 2 criteria under the fair value hierarchy, are classified in the captions “other current assets” or “accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets and were not material as of June 27, 2015 and June 28, 2014. The Company did not have material gains or losses related to the forward foreign exchange contracts during fiscal 2015, fiscal 2014 and fiscal 2013. The Company does not hedge its investments in its foreign operations. The Company also does not enter into derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties. |
Accounts receivable securitization | Accounts receivable securitization — The Company has an accounts receivable securitization program whereby the Company sells certain receivables and retains a subordinated interest and servicing rights to those receivables. The securitization program does not qualify for off balance sheet sales accounting and is accounted for as a secured financing as discussed further in Note 3. |
Recently issued accounting pronouncements | Recently issued accounting pronouncements — In July 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists (“ASU 2013-11”). ASU 2013-11 requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. Unrecognized tax benefits are required to be netted against all available same-jurisdiction loss or other tax carryforwards, rather than only against carryforwards that are created by the unrecognized tax benefits. ASU 2013-11 is effective for years, including interim periods within those years, beginning after December 15, 2013. The adoption of ASU 2013-11 in the first quarter of fiscal 2015 did not have a material impact on the Company’s consolidated financial statements. In April 2014, the FASB issued Accounting Standards Update No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity (“ASU 2014-08”), which changes the criteria for determining which disposals should be presented as discontinued operations and the related disclosure requirements. ASU 2014-08 is effective for the Company on a prospective basis in the first quarter of fiscal 2016 with early adoption permitted for disposals (or classifications as held for sale) that have not been reported in financial statements previously issued. The Company early adopted ASU 2014-08 in first quarter of fiscal 2015, which did not have a material impact on the Company’s consolidated financial statements. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), to supersede nearly all existing revenue recognition guidance under GAAP. The core principles of ASU 2014-09 are to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. Application of the requirements of ASU 2014-09 may require more judgment and estimates within the revenue recognition process compared to existing GAAP. In July 2015, the FASB approved a one-year delay in the effective date of ASU 2014-09, which makes the effective date for the Company the first quarter of fiscal 2019. The Company may adopt the requirements of ASU 2014-09 using either of two acceptable adoption methods: (i) retrospective adoption to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU 2014-09; or (ii) adoption with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined within ASU 2014-09. The Company is currently evaluating the potential impact of the future adoption of ASU 2014-09 on its consolidated financial statements, including the method of adoption to be used. In April 2015, the FASB issued Accounting Standards Update 2015-03, Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”). ASU 2015-03 requires the presentation of debt issuance costs in the consolidated balance sheets as a reduction to the related debt liability rather than as an asset. Amortization of debt issue costs continues to be classified as interest expense. ASU 2015-03 is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The Company early adopted ASU 2015-03 for the fiscal year ended June 27, 2015, and reclassified $4.9 million of debt issuance costs from Other assets to Long-term debt in the Compa ny’s consolidated balance sheet . |
Acquisitions and divestitures (
Acquisitions and divestitures (Tables) - 2014 Acquisitions | 12 Months Ended |
Jun. 27, 2015 | |
Business Acquisition [Line Items] | |
Schedule of Contingent Consideration | The aggregate consideration, excluding cash acquired, for the fiscal 2014 acquisitions was $ 219.7 million, which consisted of the following (in thousands): Cash paid $ Contingent consideration Total consideration $ |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Acquisition Method Values (Thousands) Cash $ Receivables Inventories Other current assets Property, plant and equipment and other non-current assets Intangible assets Total identifiable assets acquired Accounts payable, accrued liabilities and other current liabilities Short-term debt Other long-term liabilities Total identifiable liabilities assumed Net identifiable assets acquired Goodwill Net assets acquired $ |
Shareholders' equity (Tables)
Shareholders' equity (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Shareholders' equity | |
Schedule of Accumulated Other Comprehensive Income (Loss) | June 27, June 28, June 29, 2015 2014 2013 (Thousands) Accumulated translation adjustments and other $ $ $ Accumulated pension liability adjustments, net of income taxes Total accumulated other comprehensive income (loss) $ $ $ |
Property plant and equipment,30
Property plant and equipment, net (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Property plant and equipment, net | |
Summary of Property, plant and equipment | June 27, 2015 June 28, 2014 (Thousands) Buildings $ $ Machinery, fixtures and equipment Information technology hardware and software Leasehold improvements Depreciable property, plant and equipment, gross Accumulated depreciation Depreciable property, plant and equipment, net Land Construction in progress Property, plant and equipment, net $ $ |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Goodwill and intangible assets | |
Change in goodwill balances by reportable segment | Electronics Technology Marketing Solutions Total (Thousands) Gross goodwill $ $ $ Accumulated impairment Carrying value at June 28, 2014 Additions — — — Adjustments Foreign currency translation Carrying value at June 27, 2015 $ $ $ Gross goodwill $ $ $ Accumulated impairment Carrying value at June 27, 2015 $ $ $ |
Company's identifiable acquired intangible assets | June 27, 2015 June 28, 2014 Acquired Accumulated Net Book Acquired Accumulated Net Book Amount Amortization Value Amount Amortization Value (Thousands) Customer related $ $ $ $ $ $ Trade name Other $ $ $ $ $ $ |
Estimated future amortization expense | The following table presents the estimated future amortization expense for the next five fiscal years and thereafter (in thousands): Fiscal Year 2016 2017 2018 2019 2020 Thereafter Total $ |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Debt | |
Short-term debt | June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Interest Rate Carrying Balance Bank credit facilities and other % % $ $ Accounts receivable securitization program — % — Notes due September 1, 2015 % — — Short-term debt $ $ |
Long-term debt | June 27, 2015 June 28, 2014 June 27, 2015 June 28, 2014 Interest Rate Carrying Balance Revolving credit facilities: Accounts receivable securitization program % — $ $ — 2014 Credit Facility % — — Previous credit facility — % — Notes due: September 1, 2015 — % — September 15, 2016 % % June 15, 2020 % % December 1, 2022 % % Other long-term debt % % Long-term debt before discount Discount and debt issuance costs Long-term debt $ $ |
Aggregate debt maturities | Aggregate debt maturities for the next five fiscal years and thereafter are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter Subtotal Discount and debt issuance costs Total debt $ |
Accrued expenses and other (Tab
Accrued expenses and other (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Accrued expenses and other | |
Schedule of accrued expenses and other | June 27, 2015 June 28, 2014 (Thousands) Accrued salaries and benefits $ $ Accrued operating costs Accrued interest and banking costs Accrued restructuring costs (Note 17) Accrued income taxes Accrued other Total accrued expenses and other $ $ |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Income taxes | |
Components of income tax expense ("tax provision") | Years Ended June 27, 2015 June 28, 2014 June 29, 2013 (Thousands) Current: Federal $ $ $ State and local Foreign Total current taxes Deferred: Federal State and local Foreign Total deferred taxes Income tax expense $ $ $ |
Reconciliations of the federal statutory tax rate to the effective tax rates | Years Ended June 27, 2015 June 28, 2014 June 29, 2013 Federal statutory rate % % % State and local income taxes, net of federal benefit Foreign tax rates, net of valuation allowances Release of valuation allowance, net of U.S. tax expense Change in contingency reserves Tax audit settlements Other, net Effective tax rate % % % |
Components of deferred tax assets and liabilities | June 27, June 28, 2015 2014 (Thousands) Deferred tax assets: Federal, state and foreign net operating loss carry-forwards $ $ Inventories valuation Receivables valuation Various accrued liabilities and other Less — valuation allowances Deferred tax liabilities: Depreciation and amortization of property, plant and equipment Net deferred tax assets $ $ |
Reconciliation of the beginning and ending liability balances for unrecognized tax benefits | June 27, 2015 June 28, 2014 (Thousands) Balance at beginning of year $ $ Additions for tax positions taken in prior periods, including interest Reductions for tax positions taken in prior periods, including interest Additions for tax positions taken in current period Reductions related to settlements with taxing authorities Reductions related to the lapse of applicable statutes of limitations Adjustments related to foreign currency translation Balance at end of year $ $ |
Years remaining subject to audit, by major jurisdiction | Jurisdiction Fiscal Year United States (Federal and state) 2012 - 2015 Taiwan and Germany 2010 - 2015 Hong Kong and United Kingdom 2009 - 2015 Netherlands and Singapore 2008 - 2015 Belgium 2014 - 2015 |
Pension and retirement plans (T
Pension and retirement plans (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |
Table outlining changes in benefit obligations, plan assets and the funded status of the Plan | June 27, June 28, 2015 2014 (Thousands) Changes in benefit obligations: Benefit obligations at beginning of year $ $ Service cost Interest cost Actuarial loss Benefits paid Benefit obligations at end of year $ $ Changes in plan assets: Fair value of plan assets at beginning of year $ $ Actual return on plan assets Benefits paid Contributions Fair value of plan assets at end of year $ $ Funded status of the plan recognized as a non-current liability $ $ Amounts recognized in accumulated other comprehensive income: Unrecognized net actuarial losses $ $ Unamortized prior service credits $ $ Other changes in plan assets and benefit obligations recognized in other comprehensive income: Net actuarial gain $ $ Amortization of net actuarial losses Amortization of prior service credits $ $ |
Weighted average assumptions used to calculate actuarial present values of benefit obligations | 2015 2014 Discount rate % % |
Weighted average assumptions used to determine net benefit costs | 2015 2014 Discount rate % % Expected return on plan assets % % |
Components of net periodic pension costs | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Service cost $ $ $ Interest cost Expected return on plan assets Recognized net actuarial loss Amortization of prior service credits Net periodic pension cost $ $ $ |
Benefit payments expected to be paid to Plan participants | Benefit payments are expected to be paid to Plan participants as follows for the next five fiscal years and the aggregate for the five years thereafter (in thousands): 2016 $ 2017 2018 2019 2020 2021 through 2025 |
Plan's assets allocation | 2015 2014 Equity securities % % Fixed income debt securities % % Cash and cash equivalents % % |
Pension Plan | |
Defined Benefit Plan Disclosure [Line Items] | |
Fair value of Plan investments | The following table sets f orth the fair value of the Plan’ s investments as of June 27, 2015 : Level 1 Level 2 Level 3 Total (Thousands) Cash and cash equivalents $ $ — $ — $ Equities: U.S. common stocks — — International common stocks — — Fixed Income: U.S. government agencies — — U.S. corporate bonds — — Total $ $ $ — $ The following table sets forth the fair value of the Plan ’ s investments as of June 28, 2014: Level 1 Level 2 Level 3 Total (Thousands) Cash and cash equivalents $ $ — $ — $ Equities: U.S. common stocks — — International common stocks — — Fixed Income: U.S. government agencies — — U.S. corporate bonds — — Total $ $ $ — $ |
Operating leases (Tables)
Operating leases (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Leases [Abstract] | |
Rent expense charged to operations | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Rent expense under operating leases $ $ $ |
Minimum operating lease commitments principally for buildings | The aggregate future minimum operating lease commitments, principally for buildings, in fiscal 201 6 through 2020 and thereafter, are as follows (in thousands): 2016 $ 2017 2018 2019 2020 Thereafter Total $ |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Stock-based compensation | |
Summary of the assumptions used to estimate the fair value of stock options | Years Ended June 27, June 28, June 29, 2015 2014 2013 Expected term (years) Risk-free interest rate % % % Weighted average volatility % % % Dividend yield % % — % |
Summary of the changes in outstanding options | Weighted Weighted Average Average Remaining Shares Exercise Price Contractual Life Outstanding at June 28, 2014 $ 81 Months Granted 110 Months Exercised 36 Months Forfeited or expired — — — Outstanding at June 27, 2015 $ 71 Months Exercisable at June 27, 2015 $ 54 Months |
Summary of the changes in non-vested stock options | Weighted Average Grant-Date Shares Fair Value Non-vested stock options at June 28, 2014 $ Granted Vested Forfeited — — Non-vested stock options at June 27, 2015 $ |
Summary of the changes in non-vested restricted incentive shares | Weighted Average Grant-Date Shares Fair Value Non-vested restricted stock units at June 28, 2014 $ Granted Vested Forfeited $ Non-vested restricted stock units at June 27, 2015 $ |
Earnings per share (Tables)
Earnings per share (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Earnings per share | |
Basic and diluted earnings per share calculation | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands, except per share data) Numerator: Net income $ $ $ Denominator: Weighted average common shares for basic earnings per share Net effect of dilutive stock options, restricted stock units and performance shares units Weighted average common shares for diluted earnings per share Basic earnings per share $ $ $ Diluted earnings per share $ $ $ Stock options excluded from earnings per share calculation due to anti-dilutive effect — — |
Additional cash flow informat39
Additional cash flow information (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Additional cash flow information | |
Noncash and other reconciling items within operating activities | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Provision for doubtful accounts receivable $ $ $ Periodic pension cost (Note 10) Other, net Total $ $ $ |
Interest and income taxes paid | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Thousands) Interest $ $ $ Income taxes $ $ $ |
Segment information (Tables)
Segment information (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Segment information | |
Table of the Company's segments and the related financial information for each | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Millions) Sales: Electronics Marketing $ $ $ Technology Solutions $ $ $ Operating income (loss): Electronics Marketing $ $ $ Technology Solutions Corporate Restructuring, integration and other expenses (Note 17) Amortization of acquired intangible assets and other $ $ $ Assets: Electronics Marketing $ $ $ Technology Solutions Corporate $ $ $ Capital expenditures: Electronics Marketing $ $ $ Technology Solutions Corporate $ $ $ Depreciation & amortization expense: Electronics Marketing $ $ $ Technology Solutions Corporate $ $ $ Sales, by geographic area: Americas (1) $ $ $ EMEA (2) Asia/Pacific (3) $ $ $ Property, plant and equipment, net, by geographic area: Americas (4) $ $ $ EMEA (5) Asia/Pacific $ $ $ (1) Includes sales in the United States of $9.96 billion, $9.68 billion and $9.43 billion for fiscal 2015, 2014 and 2013, respectively. (2) Includes sales in Germany and the United Kingdom of $ 2.93 billion and $1.46 billion, respectively, for fiscal 2015. Includes sales in Germany and the United Kingdom of $3.31 billion and $1.36 billion, respectively, for fiscal 2014. Includes sales in Germany and the United Kingdom of $2.78 billion and $1.22 billion, respectively, for fiscal 2013. (3) Includes sales of $3.42 billion, $2.84 billion and $1.18 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2015. Includes sales of $2.63 billion, $2.93 billion and $1.19 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2014. Includes sales of $2.28 billion, $2.44 billion and $ 1. 16 billion in Taiwan, China (including Hong Kong) and Singapore, respectively, for fiscal 2013. (4) Includes property, plant and equipment, net, of $352.2 million, $298.1 million and $273.4 million in the United States for fiscal 2015, 2014 and 2013, respectively. (5) Includes property, plant and equipment, net, of $74.2 million and $74.7 million in Germany and Belgium, respectively, for fiscal 2015. Fiscal 2014 includes property, plant and equipment, net, of $95.5 million in Germany and $61.0 million in Belgium. Fiscal 2013 includes property, plant and equipment, net, of $92.7 million in Germany and $45.1 million in Belgium. |
Table of the Company's major product categories and the related sales for each | Years Ended June 27, June 28, June 29, 2015 2014 2013 (Millions) Semiconductors $ $ $ Computer products Connectors, passives, electromechanical and other $ $ $ |
Restructuring, integration an41
Restructuring, integration and other expenses (Tables) | 12 Months Ended |
Jun. 27, 2015 | |
Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Table presenting the restructuring, integration and other expenses incurred | Year Ended June 27, 2015 Restructuring expenses $ Integration costs Other costs including acquisition costs Changes in estimates for prior year restructuring liabilities Restructuring, integration and other expenses before tax $ Restructuring, integration and other expenses after tax $ Restructuring, integration and other expenses per share on a diluted basis $ |
Activity related to the restructuring reserves | Facility Asset Severance Exit Costs Impairments Other Total (Thousands) Fiscal 2015 restructuring expenses $ $ $ $ $ Cash payments — Non-cash amounts — — Other, principally foreign currency translation — Balance at June 27, 2015 $ $ $ — $ — $ |
Fiscal Year 2014 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Table presenting the restructuring, integration and other expenses incurred | Year Ended June 28, 2014 (Thousands) Restructuring expenses $ Integration costs Other costs including acquisition costs Changes in estimates for prior year restructuring liabilities Restructuring, integration and other expenses before tax $ Restructuring, integration and other expenses after tax $ Restructuring, integration and other expenses per share on a diluted basis $ |
Activity related to the restructuring reserves | Facility Severance Exit Costs Other Total (Thousands) Balance at June 28, 2014 $ $ $ $ Cash payments Changes in estimates, net — Non-cash amounts — Other, principally foreign currency translation — Balance at June 27, 2015 $ $ $ $ |
Fiscal Year 2013 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Table presenting the restructuring, integration and other expenses incurred | Year Ended June 29, 2013 (Thousands) Restructuring expenses $ Integration costs Other costs including acquisition costs Changes in estimates for prior year restructuring liabilities Restructuring, integration and other expenses before tax $ Restructuring, integration and other expenses after tax $ Restructuring, integration and other expenses per share on a diluted basis $ |
Summary of significant accoun42
Summary of significant accounting policies (Details) | 12 Months Ended | ||
Jun. 27, 2015USD ($)item | Jun. 28, 2014USD ($) | Jun. 29, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Fiscal year | 364 days | 364 days | 364 days |
Number of reporting units | item | 6 | ||
number of regions | item | 3 | ||
Number of reportable segments | item | 2 | ||
Provision for income taxes on unremitted earnings of foreign subsidiaries | $ 0 | ||
Cumulative unremitted earnings of foreign subsidiaries | $ 3,060,000,000 | ||
Forward exchange contracts, maximum maturities | 60 days | ||
Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Fiscal year | 364 days | ||
Ownership interest in joint venture | 50.00% | ||
Intangible asset, useful life | 5 years | ||
Life of Maintenance Revenue Contracts | 1 year | ||
Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Fiscal year | 371 days | ||
Ownership interest in joint ventures without significant influence | 20.00% | ||
Intangible asset, useful life | 10 years | ||
Life of Maintenance Revenue Contracts | 3 years | ||
Level 1 | |||
Property, Plant and Equipment [Line Items] | |||
Fair value of Cash equivalents recorded based upon level 1 | $ 11,100,000 | $ 19,700,000 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 30 years | ||
Machinery Fixtures And Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Machinery Fixtures And Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years | ||
Information Technology Hardware and Software | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 10 years | ||
Information Technology Hardware and Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Useful life | 2 years |
Acquisitions and divestitures43
Acquisitions and divestitures (2014 Acquisitions) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2014USD ($)item | Jun. 29, 2013USD ($) | Jun. 27, 2015USD ($) | |
Business Acquisition [Line Items] | |||
Acquisitions of operations and investments, net of cash acquired | $ 116,882 | $ 262,306 | |
Contingent consideration | |||
Contingent consideration | $ 31,500 | ||
Assets Acquired and Liabilities Assumed | |||
Goodwill | 1,348,468 | 1,278,756 | |
Electronics Marketing | |||
Assets Acquired and Liabilities Assumed | |||
Goodwill | 668,457 | 639,106 | |
Technology Solutions | |||
Assets Acquired and Liabilities Assumed | |||
Goodwill | $ 680,011 | $ 639,650 | |
2014 Acquisitions | |||
Business Acquisition [Line Items] | |||
Number of businesses acquired | item | 3 | ||
Business acquisition, aggregate annualized revenue of acquired businesses | $ 492,000 | ||
Acquisitions of operations and investments, net of cash acquired | 116,900 | ||
Contingent consideration | |||
Cash paid | 181,645 | ||
Contingent consideration | 38,081 | ||
Total consideration | 219,726 | ||
Contingent consideration, maximum additional payment | 50,000 | ||
Assets Acquired and Liabilities Assumed | |||
Cash | 64,763 | ||
Receivables | 36,216 | ||
Inventories | 95,202 | ||
Other current assets | 6,597 | ||
Property, plant and equipment and other non-current assets | 28,155 | ||
Intangible assets | 53,502 | ||
Total identifiable assets acquired | 284,435 | ||
Accounts payable, accrued liabilities and other current liabilities | (66,848) | ||
Short-term debt | (45,942) | ||
Other long-term liabilities | (14,535) | ||
Total identifiable liabilities assumed | (127,325) | ||
Net identifiable assets acquired | 157,110 | ||
Goodwill | 62,616 | ||
Net assets acquired | 219,726 | ||
2014 Acquisitions | Electronics Marketing | |||
Assets Acquired and Liabilities Assumed | |||
Goodwill | 52,000 | ||
2014 Acquisitions | Technology Solutions | |||
Assets Acquired and Liabilities Assumed | |||
Goodwill | $ 10,600 |
Acquisitions and divestitures44
Acquisitions and divestitures (2013 Acquisitions) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 28, 2014 | Jun. 29, 2013 | Jun. 27, 2015 | |
Contingent consideration | |||
Contingent consideration | $ 31,500 | ||
Acquisitions of operations and investments, net of cash acquired | $ 116,882 | $ 262,306 | |
Assets Acquired and Liabilities Assumed | |||
Goodwill | 1,348,468 | 1,278,756 | |
Acquisition of non-controlling interest | 23,793 | ||
Electronics Marketing | |||
Assets Acquired and Liabilities Assumed | |||
Goodwill | 668,457 | 639,106 | |
Technology Solutions | |||
Assets Acquired and Liabilities Assumed | |||
Goodwill | $ 680,011 | $ 639,650 | |
Internix, Inc [Member] | |||
Assets Acquired and Liabilities Assumed | |||
Gain on bargain purchase | $ 32,700 | ||
Gain on bargain purchase per share on a diluted basis | $ 0.23 |
Accounts receivable securitiz45
Accounts receivable securitization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Accounts receivable securitization program maximum borrowing amount | $ 900 | |
Accounts receivable collateral for borrowings | $ 1,410 | $ 1,650 |
Accounts receivable securitization program loan term | 2 years | |
Accounts receivable securitization program, borrowings outstanding | $ 650 | $ 615 |
Program facility fee | 0.38% | |
Base Rate | ||
Spread over base rate | 0.38% | |
Maximum | ||
Accounts receivable securitization program loan term | 2 years |
Shareholders' equity (Details)
Shareholders' equity (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 |
Illustration of accumulated balances of comprehensive income | |||
Accumulated translation adjustments and other | $ (316,873) | $ 244,149 | $ 135,395 |
Accumulated pension liability adjustments, net of income taxes | (124,165) | (104,637) | (106,500) |
Accumulated Other Comprehensive Income (Loss), Net of Tax, Total | $ (441,038) | $ 139,512 | $ 28,895 |
Shareholders' equity (Share rep
Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2015 | Jun. 27, 2015 | Jun. 28, 2014 | Nov. 30, 2014 | Aug. 31, 2012 | |
Shareholders' equity | |||||
Authorized repurchase of common stock under Share Repurchase Program | $ 1,000,000 | $ 1,000,000 | |||
Shares repurchased during period (in shares) | 1.6 | 4 | |||
Average market price per share repurchased during period (in dollars per share) | $ 40.84 | ||||
Cost of repurchase | $ 64,200 | $ 163,400 | |||
Aggregate number of shares repurchased since inception (in shares) | 22.1 | ||||
Aggregate cost of shares repurchased since inception | $ 697,500 | ||||
Remaining authorized repurchase amount | $ 302,500 | ||||
Cash dividends paid per common share | $ 0.64 | $ 0.60 | |||
Dividends paid on common stock | $ 87,330 | $ 82,755 |
Property plant and equipment,48
Property plant and equipment, net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | $ 1,213,926 | $ 1,217,080 | |
Accumulated depreciation | (773,013) | (783,485) | |
Property, plant and equipment, net | 568,779 | 534,999 | $ 492,600 |
Depreciable property, plant and equipment, net | 440,913 | 433,595 | |
Land | 40,032 | 31,730 | |
Construction in progress | 87,834 | 69,674 | |
Depreciation and amortization expense | 95,645 | 92,464 | $ 88,333 |
Building | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 122,035 | 132,291 | |
Machinery Fixtures And Equipment | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 238,864 | 266,416 | |
Information Technology Hardware and Software | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | 712,099 | 699,466 | |
Leasehold Improvements | |||
Summary of Property, plant and equipment | |||
Depreciable property, plant and equipment, gross | $ 140,928 | $ 118,907 |
Goodwill and intangible asset49
Goodwill and intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Carrying amount of goodwill, by reportable segment | ||
Carrying value | $ 1,348,468 | |
Adjustments | 568 | |
Foreign currency translation | (70,280) | |
Carrying value | 1,278,756 | |
Gross Goodwill | 2,658,490 | $ 2,728,202 |
Accumulated Impairment | (1,379,734) | (1,379,734) |
Electronics Marketing | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 668,457 | |
Adjustments | 561 | |
Foreign currency translation | (29,912) | |
Carrying value | 639,106 | |
Gross Goodwill | 1,684,216 | 1,713,567 |
Accumulated Impairment | (1,045,110) | (1,045,110) |
Technology Solutions | ||
Carrying amount of goodwill, by reportable segment | ||
Carrying value | 680,011 | |
Adjustments | 7 | |
Foreign currency translation | (40,368) | |
Carrying value | 639,650 | |
Gross Goodwill | 974,274 | 1,014,635 |
Accumulated Impairment | $ (334,624) | $ (334,624) |
Goodwill and intangible asset50
Goodwill and intangible assets Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Acquired Amount | $ 295,470 | $ 344,322 |
Accumulated Amortization | (195,739) | (160,014) |
Net Book Value | 99,731 | 184,308 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Acquired Amount | 276,921 | 319,496 |
Accumulated Amortization | (190,593) | (155,604) |
Net Book Value | 86,328 | 163,892 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Acquired Amount | 6,240 | 5,993 |
Accumulated Amortization | (3,792) | (1,555) |
Net Book Value | 2,448 | 4,438 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Acquired Amount | 12,309 | 18,833 |
Accumulated Amortization | (1,354) | (2,855) |
Net Book Value | $ 10,955 | $ 15,978 |
Goodwill and intangible asset51
Goodwill and intangible assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Fiscal Year: | ||
2,016 | $ 28,332 | |
2,017 | 23,562 | |
2,018 | 15,230 | |
2,019 | 11,579 | |
2,020 | 9,776 | |
Thereafter | 11,252 | |
Net Book Value | $ 99,731 | $ 184,308 |
Goodwill and intangible asset52
Goodwill and intangible assets Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Goodwill and intangible assets | |||
Impairment of goodwill | $ 0 | $ 0 | $ 0 |
Weighted average life of intangible assets | 5 years | ||
Intangible asset amortization expense | $ 51,674 | $ 44,724 | $ 32,343 |
Debt - short-term debt (Details
Debt - short-term debt (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Components of short-term debt | ||
Debt, Current, Total | $ 331,115 | $ 865,088 |
Bank credit facilities and other | ||
Components of short-term debt | ||
Current portion of long-term debt, stated interest rate | 5.54% | 3.20% |
Short-term borrowings | $ 81,115 | $ 250,088 |
Accounts receivable securitization program | ||
Components of short-term debt | ||
Current portion of long-term debt, stated interest rate | 0.60% | |
Debt, Current, Total | $ 615,000 | |
Notes Due September 1, 2015 | ||
Components of short-term debt | ||
Current portion of long-term debt, stated interest rate | 6.00% | |
Debt, Current, Total | $ 250,000 |
Debt - long-term debt (Details)
Debt - long-term debt (Details) - USD ($) | Jun. 27, 2015 | Jun. 28, 2014 |
Debt Instrument [Line Items] | ||
Long Term Debt Noncurrent Before Discount On Notes | $ 1,651,828,000 | $ 1,215,867,000 |
Discount and debt issuance costs | (5,327,000) | (6,916,000) |
Long-term debt | $ 1,646,501,000 | $ 1,208,951,000 |
Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 0.60% | |
Notes Due September 1, 2015 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 6.00% | |
Revolving credit facilities | Accounts receivable securitization program | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 0.59% | |
Long Term Debt Noncurrent Before Discount On Notes | $ 650,000 | |
Revolving credit facilities | 2014 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 1.45% | |
Long Term Debt Noncurrent Before Discount On Notes | $ 50,000 | |
Revolving credit facilities | Previous credit facility | ||
Debt Instrument [Line Items] | ||
Long-term Debt, Weighted Average Interest Rate | 3.55% | |
Long Term Debt Noncurrent Before Discount On Notes | $ 12,000 | |
Notes due | Notes Due September 1, 2015 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 6.00% | |
Long Term Debt Noncurrent Before Discount On Notes | $ 250,000,000 | |
Notes due | Notes due September 15, 2016 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 6.63% | 6.63% |
Long Term Debt Noncurrent Before Discount On Notes | $ 300,000,000 | $ 300,000,000 |
Notes due | Notes due June 15, 2020 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 5.88% | 5.88% |
Long Term Debt Noncurrent Before Discount On Notes | $ 300,000,000 | $ 300,000,000 |
Notes due | 4.875% Notes due December 1, 2022 | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 4.88% | 4.88% |
Long Term Debt Noncurrent Before Discount On Notes | $ 350,000,000 | $ 350,000,000 |
Other long-term debt | ||
Debt Instrument [Line Items] | ||
Long-term debt, stated interest rate | 2.06% | 1.40% |
Long Term Debt Noncurrent Before Discount On Notes | $ 1,828 | $ 3,867 |
Debt (Maturity Schedule) (Detai
Debt (Maturity Schedule) (Details) $ in Thousands | Jun. 27, 2015USD ($) |
Debt | |
2,016 | $ 331,115 |
2,017 | 951,459 |
2,018 | 257 |
2,019 | 94 |
2,020 | 350,018 |
Thereafter | 350,000 |
Subtotal | 1,982,943 |
Discount on debt issuance costs | (5,327) |
Total debt | $ 1,977,616 |
Debt (Textuals) (Details)
Debt (Textuals) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Company's total debt | ||
Total carrying value | $ 1,980 | $ 2,080 |
Total fair value | 2,040 | 2,190 |
2014 Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | $ 1,250 | |
Term | 5 years | |
Line of credit facility contingent increase to maximum borrowing capacity | $ 1,500 | |
2014 Credit Facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Maximum borrowing amount | 150 | |
Letters of credit outstanding, amount | $ 1.9 | |
Previous credit facility | Letter of Credit | ||
Debt Instrument [Line Items] | ||
Letters of credit outstanding, amount | $ 2 |
Accrued expenses and other (Det
Accrued expenses and other (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Accrued expenses and other | ||
Accrued salaries and benefits | $ 295,642 | $ 339,885 |
Accrued operating costs | 71,441 | 117,556 |
Accrued interest and banking costs | 22,354 | 32,878 |
Accrued restructuring costs (Note 17) | 26,302 | 40,917 |
Accrued income taxes | 27,816 | 40,829 |
Accrued other | 159,574 | 139,304 |
Total accrued expenses and other | $ 603,129 | $ 711,369 |
Income taxes (Provision for Inc
Income taxes (Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Current: | |||
Federal | $ 41,757 | $ 71,714 | $ 17,212 |
State and Local | 4,496 | 8,038 | 7,034 |
Foreign | 76,363 | 91,415 | 84,965 |
Total current taxes | 122,616 | 171,167 | 109,211 |
Deferred: | |||
Federal | 39,246 | 11,305 | 2,619 |
State and Local | 5,264 | 3,810 | 2,390 |
Foreign | (26,074) | (30,759) | (15,028) |
Total deferred taxes | 18,436 | (15,644) | (10,019) |
Income tax expense | $ 141,052 | $ 155,523 | $ 99,192 |
Income taxes (Effective Tax Rat
Income taxes (Effective Tax Rate) (Details) | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Reconciliation between federal statutory tax rate and effective tax rate | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State and local income taxes, net of federal benefit | 1.60% | 1.30% | 1.10% |
Foreign tax rates, net of valuation allowances | (8.80%) | (9.30%) | (7.20%) |
Release of valuation allowance, net of U.S tax expense | (7.20%) | (4.80%) | (6.40%) |
Change in contingency reserves | 0.50% | (0.10%) | 0.40% |
Tax audit settlements | (2.30%) | (0.60%) | (6.00%) |
Other, net | 1.00% | 0.70% | 1.20% |
Effective Income Tax Rate Reconciliation, Percent, Total | 19.80% | 22.20% | 18.10% |
Income taxes (Deferred Assets a
Income taxes (Deferred Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 |
Deferred tax assets: | ||
Federal, state and foreign tax loss carry-forwards | $ 249,385 | $ 336,334 |
Inventories valuation | 16,806 | 18,442 |
Receivables valuation | 16,989 | 26,022 |
Various accrued liabilities and other | 14,427 | (1,673) |
Deferred tax assets, gross | 297,607 | 379,125 |
Less - valuation allowance | (111,381) | (182,123) |
Deferred tax assets, net | 186,226 | 197,002 |
Deferred tax liabilities: | ||
Depreciation and amortization of property, plant and equipment and intangible assets | (67,828) | (46,294) |
Net deferred tax assets | $ 118,398 | $ 150,708 |
Income taxes (Unrecognized Tax
Income taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Reconciliation of the beginning and ending accrual balance for unrecognized tax benefits | ||
Balance at beginning of year | $ 128,221 | $ 123,930 |
Additions for tax positions taken in prior periods, including interest | 7,713 | 15,966 |
Reductions for tax positions taken in prior periods, including interest | (17,810) | (880) |
Additions for tax positions taken in current period | 4,233 | 8,364 |
Reductions related to settlements with taxing authorities | (243) | (14,250) |
Reductions related to the lapse of applicable statutes of limitations | (6,028) | (7,571) |
Adjustments related to foreign currency translation | (12,163) | 2,662 |
Balance at end of year | $ 103,923 | $ 128,221 |
Income taxes - Textuals (Detail
Income taxes - Textuals (Details) - USD ($) | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income taxes | |||
Income (loss) before income taxes, Domestic | $ 180,600,000 | $ 235,400,000 | $ 174,000,000 |
Income (loss) before income taxes, Foreign | $ 532,300,000 | $ 465,700,000 | $ 375,300,000 |
Effective tax rate | 19.80% | 22.20% | 18.10% |
Net tax benefit impacting tax rate | $ 55,100,000 | ||
Tax benefit release of valuation allowance against deferred tax assets | 51,600,000 | ||
Foreign income tax expense (benefit) | 16,200,000 | ||
Income tax expense related to valuation allowances | 7,600,000 | ||
Reduction in deferred tax valuation allowance | 93,900,000 | ||
Valuation allowance impacted effective tax rate | 51,600,000 | ||
Increase in valuation allowance for newly acquired companies and companies with a history of losses | 33,100,000 | ||
Net Expense related to valuation allowance in various foreign jusidictions | 23,200,000 | ||
Net operating loss carry forward | 932,800,000 | ||
Operating loss carry forward, subject to expiration | 21,100,000 | ||
Deferred tax assets operating loss carry forwards expiring in next three years and after | 204,200,000 | ||
Operating loss carry forward, not subject to expiration | 707,500,000 | ||
Unrecognized tax benefits | 103,923,000 | $ 128,221,000 | $ 123,930,000 |
Recognized tax benefits | 69,000,000 | 112,200,000 | |
Accrued interest expense and penalties | 22,600,000 | $ 25,300,000 | |
Tax contingencies settled | 18,100,000 | ||
Expected cash payment for settlement | 3,000,000 | ||
Provision for income taxes on unremitted earnings of foreign subsidiaries | 0 | ||
Cumulative unremitted earnings of foreign subsidiaries | $ 3,060,000,000 |
Pension and retirement plans (P
Pension and retirement plans (Pension Plans) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Changes in benefit obligations: | |||
Benefit obligations at beginning of year | $ 457,167 | $ 391,880 | |
Service cost | 39,492 | 36,733 | $ 36,920 |
Interest cost | 17,797 | 17,155 | 14,653 |
Actuarial loss (gain) | 21,796 | 34,726 | |
Benefits paid | (22,846) | (23,327) | |
Benefit obligations at end of year | 513,406 | 457,167 | 391,880 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 449,960 | 365,373 | |
Actual return on plan assets | 17,294 | 67,914 | |
Benefits paid | (22,846) | (23,327) | |
Current year-to-date contributions | 40,000 | 40,000 | |
Fair value of plan assets at end of year | 484,408 | 449,960 | $ 365,373 |
Funded status of the plan recognized as a non-current asset (liability) | (28,998) | (7,207) | |
Amounts recognized in accumulated other comprehensive income: | |||
Unrecognized net actuarial loss | 185,819 | 158,103 | |
Unamortized prior service credit | (4,476) | (6,050) | |
Amount recognized in accumulated other comprehensive income | 181,343 | 152,053 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income: | |||
Net actuarial (gain) loss | 40,723 | (2,280) | |
Amortization of net actuarial loss | (13,007) | (12,686) | |
Amortization of prior service credit | 1,573 | 1,573 | |
Other changes in plan assets and benefit obligations recognized in other comprehensive income | $ 29,289 | $ (13,393) | |
Weighted average assumptions used to calculate actuarial present values of benefit obligations | |||
Discount rate | 4.30% | 4.00% | |
Weighted average assumptions used to determine net benefit costs | |||
Discount rate | 4.00% | 4.50% | |
Expected return on plan assets | 8.50% | 8.50% |
Pension and retirement plans 64
Pension and retirement plans (Periodic Pension Cost) (Details) - Pension Plan - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Components of net periodic pension costs | |||
Service cost | $ 39,492 | $ 36,733 | $ 36,920 |
Interest cost | 17,797 | 17,155 | 14,653 |
Expected return on plan assets | (36,221) | (30,908) | (27,905) |
Recognized net actuarial loss | 13,007 | 12,686 | 14,898 |
Amortization of prior service credit | (1,573) | (1,573) | (1,573) |
Net periodic pension cost | $ 32,502 | $ 34,093 | $ 36,993 |
Pension and retirement plans (B
Pension and retirement plans (Benefit Payments) (Details) - Pension Plan $ in Thousands | Jun. 27, 2015USD ($) |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | |
2,016 | $ 30,389 |
2,017 | 27,730 |
2,018 | 31,864 |
2,019 | 36,713 |
2,020 | 41,131 |
2021 through 2025 | $ 289,430 |
Pension and retirement plans 66
Pension and retirement plans (Plan Asset Allocations) (Details) - Pension Plan | Jun. 27, 2015 | Jun. 28, 2014 |
Equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 76.00% | 75.00% |
Fixed income debt securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 23.00% | 24.00% |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 1.00% | 1.00% |
Pension and retirement plans (F
Pension and retirement plans (Fair Value) (Details) - USD ($) $ in Thousands | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 484,408 | $ 449,960 | $ 365,373 |
Level 1 | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,111 | 3,025 | |
Level 1 | Cash and cash equivalents | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,111 | 3,025 | |
Fair Value, Inputs, Level 2 [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 482,297 | 446,935 | |
Fair Value, Inputs, Level 2 [Member] | Equity securities | US Common Stocks [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 287,495 | 267,741 | |
Fair Value, Inputs, Level 2 [Member] | Equity securities | International Common Stocks [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 79,704 | 71,273 | |
Fair Value, Inputs, Level 2 [Member] | U.S. government agencies [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,912 | 10,439 | |
Fair Value, Inputs, Level 2 [Member] | U.S. corporate bonds [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 106,186 | 97,482 | |
Estimate of Fair Value Measurement [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 484,408 | ||
Estimate of Fair Value Measurement [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 449,960 | ||
Estimate of Fair Value Measurement [Member] | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,111 | ||
Estimate of Fair Value Measurement [Member] | Cash and cash equivalents | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 3,025 | ||
Estimate of Fair Value Measurement [Member] | Equity securities | US Common Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 287,495 | ||
Estimate of Fair Value Measurement [Member] | Equity securities | US Common Stocks [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 267,741 | ||
Estimate of Fair Value Measurement [Member] | Equity securities | International Common Stocks [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 79,704 | ||
Estimate of Fair Value Measurement [Member] | Equity securities | International Common Stocks [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 71,273 | ||
Estimate of Fair Value Measurement [Member] | U.S. government agencies [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8,912 | ||
Estimate of Fair Value Measurement [Member] | U.S. government agencies [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 10,439 | ||
Estimate of Fair Value Measurement [Member] | U.S. corporate bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 106,186 | ||
Estimate of Fair Value Measurement [Member] | U.S. corporate bonds [Member] | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 97,482 |
Pension and Retirement Plans -
Pension and Retirement Plans - Textuals (Details) $ in Thousands | 12 Months Ended | ||
Jul. 02, 2016USD ($) | Jun. 27, 2015USD ($)item | Jun. 28, 2014USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |||
The minimum hours that must be worked in a year, in order that the employee becomes eligible to join the pension plan in the following year. | item | 1,000 | ||
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Unrecognized net actuarial losses, pre-tax | $ 185,819 | $ 158,103 | |
Unrecognized actuarial losses expected to be recognized in net periodic pension cost during following year | 12,700 | ||
Unrecognized prior service credit, pre-tax | 4,476 | 6,050 | |
Unrecognized prior service credit Expected to be recognized net periodic pension cost during following year | 1,600 | ||
Contributions | $ 40,000 | $ 40,000 | |
Pension Plan | Forecast | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Contributions | $ 40,000 | ||
Equity securities | Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target allocation percentage of investments equity securities | 60.00% |
Operating leases (Details)
Operating leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Operating leases | |||
Rent expense under operating leases | $ 95,255 | $ 106,620 | $ 94,087 |
Operating leases (Operating Lea
Operating leases (Operating Lease Commitments) (Details) $ in Thousands | Jun. 27, 2015USD ($) |
Minimum operating lease commitments, principally for buildings | |
2,016 | $ 99,210 |
2,017 | 78,765 |
2,018 | 54,600 |
2,019 | 41,698 |
2,020 | 32,622 |
Thereafter | 92,771 |
Total | $ 399,666 |
Stock-based compensation (Fair
Stock-based compensation (Fair Value Assumptions) (Details) | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Volatility assumption on the basis of Avnet's Stock | |||
Expected term (years) | 6 years | 6 years | 6 years |
Risk-free interest rate | 1.90% | 1.70% | 0.90% |
Weighted average volatility | 31.60% | 34.30% | 35.00% |
Dividend yield | 1.80% | 1.50% |
Stock-based compensation (Optio
Stock-based compensation (Options Outstanding) (Details) - $ / shares | 12 Months Ended | |
Jun. 27, 2015 | Jun. 28, 2014 | |
Shares | ||
Beginning balance | 1,809,176 | |
Granted | 331,048 | |
Exercised | (124,846) | |
Ending balance | 2,015,378 | 1,809,176 |
Exercisable at June 27, 2015 | 1,079,878 | |
Weighted Average Exercise Price | ||
Beginning balance | $ 30.84 | |
Granted | 41.07 | |
Exercised | 24.65 | |
Ending balance | 32.90 | $ 30.84 |
Exercisable at June 28, 2014 | $ 29.10 | |
Weighted Average Remaining Contractual Life | ||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 71 months | 81 months |
Granted | 110 months | |
Exercised | 36 months | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 71 months | 81 months |
Exercisable | 54 months |
Stock-based compensation (Non v
Stock-based compensation (Non vested) (Details) - $ / shares | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Shares | |||
Beginning balance | 988,656 | ||
Granted | 331,048 | ||
Vested | (384,204) | ||
Ending balance | 935,500 | 988,656 | |
Weighted Average Grant-Date Fair Value | |||
Beginning balance | $ 10.86 | ||
Granted | 11.68 | $ 11.45 | $ 11.33 |
Vested | 10.37 | ||
Ending balance | $ 11.35 | $ 10.86 |
Stock-based compensation (Non-V
Stock-based compensation (Non-Vested restricted Incentive Shares) (Details) - Restricted incentive shares - $ / shares | 12 Months Ended |
Jun. 27, 2015 | |
Shares | |
Beginning balance | 2,001,887 |
Granted | 1,107,134 |
Vested | (1,076,621) |
Forfeited | (102,048) |
Ending balance | (1,930,352) |
Weighted Average Grant-Date Fair Value | |
Beginning balance | $ 33.60 |
Granted | 39.60 |
Vested | 33.59 |
Forfeited | 35.09 |
Ending balance | $ 36.15 |
Stock-based compensation (Textu
Stock-based compensation (Textuals) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 62 | $ 45.9 | $ 43.7 |
Common stock of shares reserved for stock option and stock incentive plans | 9,700,000 | ||
Stock options granted but not yet vested and vested but not yet exercised | 2,015,378 | 1,809,176 | |
Employee Stock Purchase Plan, number of shares available for future award | 300,000 | ||
Contractual life of stock option grants | 10 years | ||
Percentage vesting increment on each anniversary of the grant date | 25.00% | ||
Exercise price as a percentage of share fair market value at date of grant | 100.00% | ||
Granted | $ 11.68 | $ 11.45 | $ 11.33 |
Intrinsic values of share options outstanding | $ 18.5 | ||
Intrinsic values of share options exercisable | 14 | ||
Total fair value of shares vested | 4 | $ 3.7 | $ 3.4 |
Cash received from exercise of stock options | $ 2.6 | 4.7 | 2.1 |
Performance shares vesting range, minimum | 0.00% | ||
Performance shares vesting range, maximum | 200.00% | ||
Employee Stock Purchase Plan, share purchase price as a percentage of fair market value at end of offering period | 95.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 3.6 | 4.7 | 4 |
Shares available for grant | 2,000,000 | ||
Total unrecognized compensation cost related to non vested awards | $ 2.9 | ||
Weighted average period for expected recognition of compensation cost | 2 years 1 month 6 days | ||
Stock Based Award | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 4,800,000 | ||
Restricted incentive shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 50.5 | 34.4 | 26.8 |
Total unrecognized compensation cost related to non vested awards | $ 45.2 | ||
Weighted average period for expected recognition of compensation cost | 1 year 10 months 24 days | ||
Granted, but not yet vested | 1,900,000 | ||
Fair value of shares vested | $ 36.2 | 30.5 | 25.4 |
Performance shares granted | 1,107,134 | ||
Performance shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 6.8 | $ 5.8 | $ 11.9 |
Shares available for grant | 2,600,000 | ||
Vesting period | 3 years | ||
Performance shares granted | 200,000 | 200,000 | 300,000 |
Director stock-based compensation | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1.1 | $ 1 | $ 1 |
Commitments and contingencies (
Commitments and contingencies (Textuals) (Details) $ in Millions | Jun. 27, 2015USD ($) |
Loss Contingency, Estimate [Abstract] | |
Estimate of possible loss | $ 17 |
Bell | |
Loss Contingency, Estimate [Abstract] | |
Compliance liabilities | $ 10 |
Commitments and contingencies77
Commitments and contingencies (Litigation settlement Textuals 2) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 28, 2014 | Jun. 29, 2013 | |
Award payment | ||
Gain on legal settlement | $ 22,102 | $ 31,011 |
LCD Class Action Settlement | ||
Award payment | ||
Gain on legal settlement | $ 22,100 |
Earnings per share (Details)
Earnings per share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Numerator: | |||
Net income | $ 571,913 | $ 545,604 | $ 450,073 |
Denominator: | |||
Weighted average common shares for basic earnings per share | 136,688,000 | 137,991,000 | 137,951,000 |
Net effect of dilutive stock option, restricted stock and performance share awards | 2,103,000 | 2,128,000 | 2,052,000 |
Weighted average common shares for diluted earnings per share | 138,791,000 | 140,119,000 | 140,003,000 |
Basic earnings per share | $ 4.18 | $ 3.95 | $ 3.26 |
Diluted earnings per share | $ 4.12 | $ 3.89 | $ 3.21 |
Antidilutive shares | 565,800 |
Additional cash flow informat79
Additional cash flow information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Other non-cash and reconciling items | |||
Provision for doubtful accounts receivable | $ 20,084 | $ 17,943 | $ 30,802 |
Periodic pension cost | 32,502 | 34,093 | 36,993 |
Other, net | 35,063 | 36,651 | 7,532 |
Total | 87,649 | 88,687 | 75,327 |
Interest and income taxes paid | |||
Interest | 113,476 | 111,608 | 106,735 |
Income taxes | $ 125,403 | $ 181,117 | $ 141,196 |
Segment information (Details)
Segment information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Sales, by segment | |||
Sales | $ 27,924,657 | $ 27,499,654 | $ 25,458,924 |
Operating income (expense): | |||
Operating income (expense) before restructuring charges, integration, amortization of acquired intangible assets, and other | 972,500 | 931,300 | 807,900 |
Restructuring, integration and other expenses (Note 13) | (90,805) | (94,623) | (149,501) |
Amortization of acquired intangible assets and other | (54,000) | (46,800) | (32,400) |
Operating income | 827,673 | 789,940 | 625,981 |
Assets: | |||
Assets | 10,799,953 | 11,250,654 | 10,474,700 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 174,374 | 123,242 | 97,379 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 147,300 | 137,200 | 120,700 |
Sales, by geographic area: | |||
Sales | 27,924,657 | 27,499,654 | 25,458,924 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 568,779 | 534,999 | 492,600 |
Americas | |||
Sales, by segment | |||
Sales | 11,144,000 | 10,929,500 | 10,716,600 |
Sales, by geographic area: | |||
Sales | 11,144,000 | 10,929,500 | 10,716,600 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 358,100 | 306,200 | 283,000 |
United States | |||
Sales, by segment | |||
Sales | 9,960,000 | 9,680,000 | 9,430,000 |
Sales, by geographic area: | |||
Sales | 9,960,000 | 9,680,000 | 9,430,000 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 352,200 | 298,100 | 273,400 |
EMEA | |||
Sales, by segment | |||
Sales | 7,876,200 | 8,246,100 | 7,277,900 |
Sales, by geographic area: | |||
Sales | 7,876,200 | 8,246,100 | 7,277,900 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 182,300 | 199,400 | 177,900 |
Germany | |||
Sales, by segment | |||
Sales | 2,930,000 | 3,310,000 | 2,780,000 |
Sales, by geographic area: | |||
Sales | 2,930,000 | 3,310,000 | 2,780,000 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 74,200 | 95,500 | 92,700 |
United Kingdom | |||
Sales, by segment | |||
Sales | 1,460,000 | 1,360,000 | 1,220,000 |
Sales, by geographic area: | |||
Sales | 1,460,000 | 1,360,000 | 1,220,000 |
Belgium | |||
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 74,700 | 61,000 | 45,100 |
Asia Pacific | |||
Sales, by segment | |||
Sales | 8,904,500 | 8,324,100 | 7,464,400 |
Sales, by geographic area: | |||
Sales | 8,904,500 | 8,324,100 | 7,464,400 |
Property, plant and equipment, net, by geographic area | |||
Property, plant and equipment, net | 28,400 | 29,400 | 31,700 |
Taiwan | |||
Sales, by segment | |||
Sales | 3,420,000 | 2,630,000 | 2,280,000 |
Sales, by geographic area: | |||
Sales | 3,420,000 | 2,630,000 | 2,280,000 |
China (including Hong Kong) | |||
Sales, by segment | |||
Sales | 2,840,000 | 2,930,000 | 2,440,000 |
Sales, by geographic area: | |||
Sales | 2,840,000 | 2,930,000 | 2,440,000 |
SINGAPORE | |||
Sales, by segment | |||
Sales | 1,180,000 | 1,190,000 | 1,160,000 |
Sales, by geographic area: | |||
Sales | 1,180,000 | 1,190,000 | 1,160,000 |
Corporate | |||
Operating income (expense): | |||
Operating income (expense) before restructuring charges, integration, amortization of acquired intangible assets, and other | (150,600) | (134,400) | (126,900) |
Assets: | |||
Assets | 693,300 | 275,100 | 320,000 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 33,300 | 41,400 | 46,700 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 37,000 | 29,400 | 21,600 |
Electronics Marketing | |||
Sales, by segment | |||
Sales | 17,344,700 | 16,544,400 | 15,094,400 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 99,000 | 38,000 | 24,100 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 45,200 | 48,800 | 51,800 |
Sales, by geographic area: | |||
Sales | 17,344,700 | 16,544,400 | 15,094,400 |
Electronics Marketing | Segment | |||
Operating income (expense): | |||
Operating income (expense) before restructuring charges, integration, amortization of acquired intangible assets, and other | 797,400 | 747,900 | 635,700 |
Assets: | |||
Assets | 6,497,700 | 6,840,200 | 6,316,300 |
Technology Solutions | |||
Sales, by segment | |||
Sales | 10,580,000 | 10,955,300 | 10,364,500 |
Capital expenditures: | |||
Purchases of property, plant and equipment | 42,100 | 43,800 | 26,600 |
Depreciation & amortization expense: | |||
Depreciation and amortization expense | 65,100 | 59,000 | 47,300 |
Sales, by geographic area: | |||
Sales | 10,580,000 | 10,955,300 | 10,364,500 |
Technology Solutions | Segment | |||
Operating income (expense): | |||
Operating income (expense) before restructuring charges, integration, amortization of acquired intangible assets, and other | 325,700 | 317,800 | 299,100 |
Assets: | |||
Assets | $ 3,609,000 | $ 4,140,200 | $ 3,838,400 |
Segment information (Sales) (De
Segment information (Sales) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Sales by major product categories | |||
Sales | $ 27,924,657 | $ 27,499,654 | $ 25,458,924 |
Semiconductors | |||
Sales by major product categories | |||
Sales | 15,715,800 | 14,558,400 | 13,720,800 |
Computer Products | |||
Sales by major product categories | |||
Sales | 9,614,200 | 10,571,600 | 9,346,000 |
Connectors, passives, electromechanical and other | |||
Sales by major product categories | |||
Sales | $ 2,594,700 | $ 2,369,700 | $ 2,392,100 |
Segment information - Textuals
Segment information - Textuals (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Segment Reporting Information [Line Items] | |||
Sales | $ 27,924,657 | $ 27,499,654 | $ 25,458,924 |
Property, plant and equipment, net | 568,779 | 534,999 | 492,600 |
United States | |||
Segment Reporting Information [Line Items] | |||
Sales | 9,960,000 | 9,680,000 | 9,430,000 |
Property, plant and equipment, net | 352,200 | 298,100 | 273,400 |
Germany | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,930,000 | 3,310,000 | 2,780,000 |
Property, plant and equipment, net | 74,200 | 95,500 | 92,700 |
Belgium | |||
Segment Reporting Information [Line Items] | |||
Property, plant and equipment, net | 74,700 | 61,000 | 45,100 |
United Kingdom | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,460,000 | 1,360,000 | 1,220,000 |
Taiwan | |||
Segment Reporting Information [Line Items] | |||
Sales | 3,420,000 | 2,630,000 | 2,280,000 |
China (including Hong Kong) | |||
Segment Reporting Information [Line Items] | |||
Sales | 2,840,000 | 2,930,000 | 2,440,000 |
SINGAPORE | |||
Segment Reporting Information [Line Items] | |||
Sales | 1,180,000 | 1,190,000 | 1,160,000 |
Semiconductors | |||
Segment Reporting Information [Line Items] | |||
Sales | 15,715,800 | 14,558,400 | 13,720,800 |
Computer Products | |||
Segment Reporting Information [Line Items] | |||
Sales | 9,614,200 | 10,571,600 | 9,346,000 |
Connectors, passives, electromechanical and other | |||
Segment Reporting Information [Line Items] | |||
Sales | $ 2,594,700 | $ 2,369,700 | $ 2,392,100 |
Restructuring, integration an83
Restructuring, integration and other expenses (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Charges related to the acquisition and integration activities [Abstract] | |||
Restructuring expenses | $ 58,677 | ||
Restructuring, integration and other expenses before tax | 90,805 | $ 94,623 | $ 149,501 |
Fiscal 2015 [Member] | |||
Charges related to the acquisition and integration activities [Abstract] | |||
Restructuring expenses | 58,677 | ||
Integration costs | 19,144 | ||
Other costs including acquisition costs | 13,724 | ||
Changes in estimates for prior restructuring liabilities | (740) | ||
Restructuring, integration and other expenses before tax | 90,805 | ||
Restructuring, integration and other expenses after tax | $ 65,897 | ||
Restructuring, integration and other expenses per share on a diluted basis (in dollars per share) | $ 0.47 | ||
Fiscal 2014 [Member] | |||
Charges related to the acquisition and integration activities [Abstract] | |||
Restructuring expenses | 65,749 | ||
Integration costs | 20,455 | ||
Other costs including acquisition costs | 8,767 | ||
Changes in estimates for prior restructuring liabilities | (348) | ||
Restructuring, integration and other expenses before tax | 94,623 | ||
Restructuring, integration and other expenses after tax | $ 70,773 | ||
Restructuring, integration and other expenses per share on a diluted basis (in dollars per share) | $ 0.50 | ||
Fiscal 2013 [Member] | |||
Charges related to the acquisition and integration activities [Abstract] | |||
Restructuring expenses | 120,048 | ||
Integration costs | 35,742 | ||
Other costs including acquisition costs | (3,224) | ||
Changes in estimates for prior restructuring liabilities | (3,065) | ||
Restructuring, integration and other expenses before tax | 149,501 | ||
Restructuring, integration and other expenses after tax | $ 116,382 | ||
Restructuring, integration and other expenses per share on a diluted basis (in dollars per share) | $ 0.83 |
Restructuring, integration an84
Restructuring, integration and other expenses (Details) - USD ($) $ in Thousands | 12 Months Ended |
Jun. 27, 2015 | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | $ 58,677 |
Activity related to the restructuring reserves | |
Restructuring expenses | 58,677 |
Cash payments | (15,732) |
Non-cash amounts | (23,805) |
Other, principally foreign currency translation | (4,674) |
Ending Balance | 14,466 |
Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Beginning Balance | 27,785 |
Cash payments | (19,256) |
Changes in estimates, net | 413 |
Non-cash amounts | (916) |
Other, principally foreign currency translation | (1,980) |
Ending Balance | 6,046 |
Employee Severance | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 25,889 |
Activity related to the restructuring reserves | |
Restructuring expenses | 25,889 |
Cash payments | (10,132) |
Other, principally foreign currency translation | (4,501) |
Ending Balance | 11,256 |
Employee Severance | Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Beginning Balance | 23,744 |
Cash payments | (17,772) |
Changes in estimates, net | 322 |
Non-cash amounts | (92) |
Other, principally foreign currency translation | (1,664) |
Ending Balance | 4,538 |
Facility Closing | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 8,823 |
Activity related to the restructuring reserves | |
Restructuring expenses | 8,823 |
Cash payments | (5,431) |
Other, principally foreign currency translation | (182) |
Ending Balance | 3,210 |
Facility Closing | Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Beginning Balance | 3,697 |
Cash payments | (1,483) |
Changes in estimates, net | 91 |
Non-cash amounts | (824) |
Other, principally foreign currency translation | (316) |
Ending Balance | 1,165 |
Asset Impairments | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 18,170 |
Activity related to the restructuring reserves | |
Restructuring expenses | 18,170 |
Cash payments | (169) |
Non-cash amounts | (18,010) |
Other, principally foreign currency translation | 9 |
Other Restructuring | Fiscal Year 2015 [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Fiscal 2015 restructuring expenses | 5,795 |
Activity related to the restructuring reserves | |
Restructuring expenses | 5,795 |
Non-cash amounts | (5,795) |
Other Restructuring | Fiscal Year 2014 [Member] | |
Activity related to the restructuring reserves | |
Beginning Balance | 344 |
Cash payments | (1) |
Ending Balance | $ 343 |
Restructuring, integration an85
Restructuring, integration and other expenses (Textuals) (Details) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015USD ($)employee | Jun. 28, 2014USD ($) | Jun. 29, 2013USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 58,677 | ||
Restructuring Reserve | $ 14,466 | ||
Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of employee reductions under Severance charges | employee | 500 | ||
Fiscal Year 2013 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 5,800 | $ 13,100 | |
EM | Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 26,000 | ||
EM | Fiscal Year 2014 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 41,300 | ||
EM | Fiscal Year 2013 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 68,900 | ||
TS | Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 31,900 | ||
TS | Fiscal Year 2014 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | 23,100 | ||
TS | Fiscal Year 2013 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 48,000 | ||
Business Support | Fiscal Year 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 800 | ||
Business Support | Fiscal Year 2014 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges | $ 1,300 |
Valuation And Qualifying Accc86
Valuation And Qualifying Acccounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Charged to expense (income), Income from reduction in valuation allowance | |||
Tax benefit release of valuation allowance against deferred tax assets | $ 60,800 | $ 39,600 | $ 31,900 |
Impact to deferred taxes associated with the release of valuation allowance | 9,200 | 6,000 | 4,800 |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginnig of Period | 96,382 | 95,656 | 106,319 |
Charged to Expense (Income) | 20,084 | 17,943 | 30,802 |
Deductions | (35,745) | (17,217) | (41,465) |
Balance at End of Period | 80,721 | 96,382 | 95,656 |
Valuation Allowance, Operating Loss Carryforwards [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginnig of Period | 182,123 | 230,821 | 244,093 |
Charged to Expense (Income) | (37,564) | (52,719) | (41,572) |
Charged to Other Accounts | (33,178) | 4,021 | 28,300 |
Balance at End of Period | $ 111,381 | $ 182,123 | $ 230,821 |