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Document and Entity Information Document - shares	3 Months Ended
Document and Entity Information Document - shares	Sep. 30, 2017	Oct. 19, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	AVNET INC
Entity Central Index Key	0000008858
Document Type	10-Q
Document Period End Date	Sep. 30, 2017
Current Fiscal Year End Date	--06-30
Amendment Flag	false
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q1
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		120,927,437

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Current assets:
Cash and cash equivalents	$ 539,679	$ 836,384
Marketable securities	197,949	281,326
Receivables, less allowances of $49,505 and $47,272, respectively	3,417,427	3,337,624
Inventories	3,129,032	2,824,709
Prepaid and other current assets	261,600	253,765
Total current assets	7,545,687	7,533,808
Property, plant and equipment, net	510,303	519,575
Goodwill	1,178,005	1,148,347
Intangible assets, net	290,962	277,291
Other assets	248,201	220,568
Total assets	9,773,158	9,699,589
Current liabilities:
Short-term debt	195,498	50,113
Accounts payable	1,917,749	1,861,635
Accrued expenses and other	598,456	542,023
Total current liabilities	2,711,703	2,453,771
Long-term debt	1,495,139	1,729,212
Other liabilities	322,213	334,538
Total liabilities	4,529,055	4,517,521
Commitments and contingencies (Note 7)
Shareholders' equity:
Common stock $1.00 par; authorized 300,000,000 shares; issued 121,235,396 shares and 123,080,952 shares, respectively	121,235	123,081
Additional paid-in capital	1,511,461	1,503,490
Retained earnings	3,765,491	3,799,363
Accumulated other comprehensive loss	(154,084)	(243,866)
Total shareholders' equity	5,244,103	5,182,068
Total liabilities and shareholders' equity	$ 9,773,158	$ 9,699,589

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Current assets:
Allowance for doubtful accounts receivable, current (in dollars)	$ 49,505	$ 47,272
Stockholders' equity:
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares, issued	121,235,396	123,080,952

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Income Statement [Abstract]
Sales	$ 4,660,943	$ 4,118,104
Cost of sales	4,048,388	3,595,449
Gross profit	612,555	522,655
Selling, general and administrative expenses	496,206	363,672
Restructuring, integration and other expenses	46,394	29,469
Operating income	69,955	129,514
Other income (expense), net	15,579	(13,734)
Interest expense	(24,060)	(27,236)
Income from continuing operations before taxes	61,474	88,544
Income tax expense	3,292	20,856
Income from continuing operations, net of tax	58,182	67,688
Income from discontinued operations, net of tax	121	1,155
Net income	$ 58,303	$ 68,843
Earnings per share:
Basic earnings per share-continuing operations	$ 0.48	$ 0.53
Basic earnings per share-discontinued operations	0.00	0.01
Basic earnings per share	0.48	0.54
Diluted earnings per share-continuing operations	0.47	0.52
Diluted earnings per share-discontinued operations	0.00	0.01
Diluted earnings per share	$ 0.47	$ 0.53
Shares used to compute earnings per share:
Basic	122,685	127,531
Diluted	123,984	129,763
Cash dividends paid per common share	$ 0.18	$ 0.17

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 58,303	$ 68,843
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments and other	88,843	31,661
Pension adjustments, net	939	619
Total comprehensive income (loss)	$ 148,085	$ 101,123

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Cash flows from operating activities:
Net income	$ 58,303	$ 68,843
Less: Income from discontinued operations, net of tax	121	1,155
Income from continuing operations	58,182	67,688
Non-cash and other reconciling items:
Depreciation	38,263	19,694
Amortization	25,506	1,930
Deferred income taxes	(23,436)	6,412
Stock-based compensation	8,609	17,576
Other, net	4,902	10,714
Changes in (net of effects from businesses acquired):
Receivables	(32,409)	(64,587)
Inventories	(266,998)	182,240
Accounts payable	37,252	(164,777)
Accrued expenses and other, net	22,140	33,522
Net cash flows (used) provided by operating activities - continuing operations	(127,989)	110,412
Net cash flows used by operating activities - discontinued operations		(110,548)
Net cash flows used by operating activities	(127,989)	(136)
Cash flows from financing activities:
Repayment of notes		(300,000)
Borrowings (repayments) under accounts receivable securitization, net	28,000	(150,265)
Borrowings (repayment) of senior unsecured credit facility, net	(92,471)
Borrowings (repayments) under bank credit facilities and other debt, net	(24,888)	669,803
Repurchases of common stock	(68,113)
Dividends paid on common stock	(22,012)	(21,676)
Other, net	(579)	682
Net cash flows (used) provided by financing activities - continuing operations	(180,063)	198,544
Net cash flows used by financing activities - discontinued operations		(4,756)
Net cash flows (used) provided by financing activities	(180,063)	193,788
Cash flows from investing activities:
Purchases of property, plant and equipment	(26,659)	(34,729)
Acquisitions of business, net of cash acquired (Note 2)	14,661
Other, net	1,211	432
Net cash flows used for investing activities - continuing operations	(40,109)	(34,297)
Net cash flows provided (used) by investing activities - discontinued operations	45,391	(95)
Net cash flows provided (used) by investing activities	5,282	(34,392)
Effect of currency exchange rate changes on cash and cash equivalents	6,065	5,807
Cash and cash equivalents:
Net change in cash and cash equivalents	(296,705)	165,067
Cash and cash equivalents at beginning of period	836,384	1,031,478
Cash and cash equivalents at end of period	$ 539,679	$ 1,196,545

Basis of presentation and new accounting pronouncements	3 Months Ended
Basis of presentation and new accounting pronouncements	Sep. 30, 2017
Basis of presentation and new accounting pronouncements
Basis of presentation and new accounting pronouncements	1. Basis of presentation and new accounting pronouncements In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc.’s and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income (loss) and cash flows. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2017. Certain reclassifications have been made in prior periods and the fiscal year to date current periods to conform to the current period presentation. New accounting pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and makes certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2017-12 on its consolidated financial statements. There have been no material changes or additions to the recently issued accounting pronouncements as previously reported in Part II, Item 7, of the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2017 that affect or may affect the Company’s financial statements.

Acquisitions

3 Months Ended

Sep. 30, 2017

Acquisitions

Acquisitions

2. Acquisitions

Premier Farnell

On October 17, 2016, the Company acquired all of the outstanding shares of Premier Farnell Plc (“PF”), a global distributor of electronic components and related products. The cash consideration paid for the acquisition was approximately $841 million, which consisted of £1.85 per share of PF common stock. Additionally, Avnet assumed $242.8 million of debt at fair value.

The PF acquisition was accounted for as a business combination. The purchase price of this acquisition was allocated to the assets acquired and liabilities assumed based on their estimated fair values on the transaction date. During the first quarter of fiscal 2018, the Company finalized its estimated acquisition date fair values for assets acquired and liabilities assumed, which resulted in a decrease in goodwill of $15.3 million, a net increase in intangible assets of $24.9 million, and an increase in other long-term liabilities of $9.6 million.

The following table summarizes the final purchase price allocation (in thousands):


Cash	$	46,354
Trade and other receivables, net		187,303
Inventories		328,037
Property, plant and equipment		52,621
Intangible assets		319,966
Total identifiable assets acquired	$	934,281

Accounts payable, accrued liabilities and other current liabilities	$	160,572
Short-term debt		242,814
Other long-term liabilities		150,109
Total identifiable liabilities acquired	$	553,495
Net identifiable assets acquired		380,786
Goodwill		460,534
Net assets acquired	$	841,320

Approximately $10.0 million of goodwill associated with the PF acquisition is expected to be deductible for tax purposes.

Dragon Innovation

In August 2017, the Company acquired Dragon Innovation, Inc. (“Dragon”), a provider of manufacturing logistics services to entrepreneurs. The impact of this acquisition was not material to the Company’s consolidated balance sheets or statements of operations.

Discontinued operations

3 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups

Discontinued operations

3. Discontinued operations and gain on sale

In February 2017, the Company completed the sale of its Technology Solutions (“TS”) business to Tech Data Corporation (the “Buyer”). Included in the gain on sale recorded in fiscal 2017 were estimates for certain income taxes due on the gain and additional cash consideration expected from the Buyer related to a closing date net working capital sales price adjustment (the “closing date adjustment”). The Company is finalizing the closing date adjustment with the Buyer as provided for in the sales agreement and has included an estimate of this amount as the principal component of the $261.6 million of prepaid and other current assets as of September 30, 2017. The final closing date adjustment, as determined through the established process outlined in the sales agreement, may be materially different from the Company’s estimate. The impact of any probable changes in the closing date adjustment will be recorded as an adjustment to the gain on sale from discontinued operations in the period such change occurs. Additionally, the income taxes associated with the gain will be impacted by the final geographic allocation of the sales price, which must be agreed to with the Buyer as required in the sales agreement and may be materially different from the Company’s estimates. The impact of any changes in estimated income taxes on the gain will be recorded as an adjustment to the gain on sale from discontinued operations in the period such change in estimate occurs. The Company expects the closing date adjustment and the income tax on the gain to be finalized by the end of fiscal 2018.

The Company received 2.8 million shares of the Buyer’s common stock at closing (the “Shares”), which has been recorded within “Marketable securities” on the Company’s Consolidated Balance Sheets. Unrealized and realized gains or losses due to changes in fair value based upon Level 1 quoted active market prices of the Shares are recorded in “Other income (expense), net” on the Consolidated Statements of Operations. The sales agreement includes time based contractual restrictions related to the Company’s sale of the Shares and as such, the Company entered into economic hedges to reduce the Company’s exposure to price fluctuations of the Shares during the restricted period, which fixes the net amount that the Company will realize upon the sale of the Shares at approximately $247 million. The Company records changes in fair value related to the economic share price hedges within “Other income (expense), net”, offsetting the changes in fair value of the underlying Shares. During the three months ended September 30, 2017, the Company sold 0.6 million Shares, the net proceeds of which have been included in Cash flows from investing activities – discontinued operations.

In connection with the sale of the TS business, the Company entered into a Transition Services Agreement (“TSA”), pursuant to which the Buyer will pay the Company to provide certain information technology, distribution, facilities, finance and human resources related services for various periods of time depending upon the services not to exceed approximately two years from the closing date. Expenses incurred by the Company to provide such services under the TSA are classified within selling, general and administrative expenses and amounts billed to the Buyer to provide such services are classified as a reduction of such expenses. As of September 30, 2017, the Buyer terminated substantially all TSA services outside of certain information technology services and all remaining TSA services are expected to be terminated by the end of fiscal 2018.

Financial results of the TS business for the first quarter ended October 1, 2016 are presented as “Income from discontinued operations, net of tax” on the Consolidated Statements of Operations and are summarized as follows:



	First Quarter Ended
	October 1, 2016
	(Thousands)
Sales	$	1,922,202
Cost of sales		1,728,929
Gross profit		193,273
Selling, general and administrative expenses		166,025
Restructuring, integration and other expenses		4,224
Operating income		23,024
Interest and other expense, net		5
Income from discontinued operations before income taxes		23,029
Income tax expense		21,874
Income from discontinued operations, net of taxes	$	1,155

Included within selling, general and administrative expenses of discontinued operations was $12.5 million of estimated corporate expenses, excluding general overhead, specific to or benefiting the TS business for the first quarter ended October 1, 2016.

Goodwill and long-lived assets

3 Months Ended

Sep. 30, 2017

Goodwill and long-lived assets

Goodwill and long-lived assets

4. Goodwill and long-lived assets

Goodwill

The following table presents the change in goodwill by reportable segment for the three months ended September 30, 2017. All of the accumulated impairment was recognized in fiscal 2009.


	Electronic		Premier
	Components		Farnell		Total
	(Thousands)
Gross goodwill	$	1,680,158	$	513,299	$	2,193,457
Accumulated impairment		(1,045,110)		—		(1,045,110)
Carrying value at July 1, 2017		635,048		513,299		1,148,347
Additions from acquisitions		21,539		—		21,539
Foreign currency translation		5,772		17,739		23,511
Measurement period adjustments		(64)		(15,328)		(15,392)
Carrying value at September 30, 2017	$	662,295	$	515,710	$	1,178,005
Gross goodwill	$	1,707,405	$	515,710	$	2,223,115
Accumulated impairment		(1,045,110)		—		(1,045,110)
Carrying value at September 30, 2017	$	662,295	$	515,710	$	1,178,005

The Company’s reporting units passed goodwill impairment testing using a quantitative impairment model in the fourth quarter of fiscal 2017, however, the Company’s Electronic Components (“EC”) Americas reporting units had an estimated fair value that was not substantially in excess of its carrying value. The Company evaluates each quarter if facts and circumstances indicate that it is more likely than not that the fair value of reporting units is less than its carrying value, which would require the Company to perform an interim goodwill impairment test. Indicators the Company evaluates to determine whether an interim goodwill impairment test is necessary include, but are not limited to (i) a sustained decrease in share price or market capitalization, (ii) changes in the macroeconomic or industry environments, (iii) the results of and the amount of time passed since the last goodwill impairment test and (iv) the long-term expected financial performance of its reporting units. During the first quarter of fiscal 2018, the Company concluded that an interim goodwill impairment test was not required.

Intangible Assets

The following table presents the Company’s acquired intangible assets at September 30, 2017, and July 1, 2017, respectively.


	September 30, 2017						July 1, 2017
	Acquired		Accumulated		Net Book		Acquired		Accumulated		Net Book
	Amount		Amortization		Value		Amount		Amortization		Value
	(Thousands)
Customer related	$	307,712	$	(101,512)	$	206,200	$	277,865	$	(79,578)	$	198,287
Trade name		55,947		(10,122)		45,825		46,915		(6,720)		40,195
Technology and other		53,580		(14,643)		38,937		50,369		(11,560)		38,809
	$	417,239	$	(126,277)	$	290,962	$	375,149	$	(97,858)	$	277,291

Intangible asset amortization expense from continuing operations was $25.5 million and $1.9 million for the first quarters of fiscal 2018 and 2017, respectively. Intangible assets have a weighted average remaining useful life of approximately 4 years. The following table presents the estimated future amortization expense for the remainder of fiscal 2018, the next five fiscal years and thereafter (in thousands):


Fiscal Year
Remainder of fiscal 2018		65,198
2019		85,462
2020		83,476
2021		40,219
2022		12,677
2023		3,693
Thereafter		237
Total	$	290,962

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Debt

3 Months Ended

Sep. 30, 2017

Debt

Debt

5. Debt

Short-term debt consists of the following (in thousands):


	September 30, 2017		July 1, 2017		September 30, 2017		July 1, 2017
	Interest Rate				Carrying Balance
Bank credit facilities and other	2.15	%	2.27	%	$	25,498	$	50,113
Accounts receivable securitization program	1.70	%	—			170,000		—
Short-term debt					$	195,498	$	50,113

Bank credit facilities and other consists primarily of various committed and uncommitted lines of credit and other forms of bank debt with financial institutions utilized primarily to support the working capital requirements of the Company including its foreign operations.

The Company has an accounts receivable securitization program (the “Program”) in the United States with a group of financial institutions to allow the Company to transfer, on an ongoing revolving basis, an undivided interest in a designated pool of trade accounts receivable, to provide security or collateral for borrowings up to a maximum of $400.0 million. The Program does not qualify for off balance sheet accounting treatment and any borrowings under the Program are recorded as debt in the consolidated balance sheets. Under the Program, the Company legally sells and isolates certain U.S. trade accounts receivable into a wholly owned and consolidated bankruptcy remote special purpose entity. Such receivables, which are recorded within “Receivables” in the consolidated balance sheets, totaled $734.2 million and $807.5 million at September 30, 2017, and July 1, 2017, 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 September 30, 2017, and July 1, 2017. The Program expires in August 2018 and as a result the Company has classified outstanding balances as short-term debt as of September 30, 2017. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread of 0.40% with a facility fee of 0.40%.

Long-term debt consists of the following (in thousands):


	September 30, 2017		July 1, 2017		September 30, 2017		July 1, 2017
	Interest Rate				Carrying Balance
Revolving credit facilities:
Accounts receivable securitization program	—		1.53	%	$	—	$	142,000
Credit Facility	4.30	%	2.77	%		7,500		99,970
Notes due:
June 2020	5.88	%	5.88	%		300,000		300,000
December 2021	3.75	%	3.75	%		300,000		300,000
December 2022	4.88	%	4.88	%		350,000		350,000
April 2026	4.63	%	4.63	%		550,000		550,000
Other long-term debt	1.36	%	1.36	%		532		642
Long-term debt before discount and debt issuance costs						1,508,032		1,742,612
Discount and debt issuance costs - unamortized						(12,893)		(13,400)
Long-term debt					$	1,495,139	$	1,729,212

The Company has a five-year $1.25 billion senior unsecured revolving credit facility (the “Credit Facility”) with a syndicate of banks, consisting of revolving credit facilities and the issuance of up to $150.0 million of letters of credit, which expires in July 2019. Subject to certain conditions, the Credit Facility may be increased up to $1.50 billion. Under the Credit Facility, the Company may select from various interest rate options, currencies and maturities. The Credit Facility contains certain covenants including various limitations on debt incurrence, share repurchases, dividends, investments and capital expenditures. The Credit Facility also includes financial covenants requiring the Company to maintain minimum interest coverage and leverage ratios, which the Company was in compliance with as of September 30, 2017, and July 1, 2017. As of September 30, 2017, and July 1, 2017, there were $2.0 million and $3.1 million, respectively, in letters of credit issued under the Credit Facility.

As of September 30, 2017, the carrying value and fair value of the Company’s total debt was $1.69 billion and $1.76 billion, respectively. At July 1, 2017, the carrying value and fair value of the Company’s total debt was $1.78 billion and $1.85 billion, respectively. Fair value for the notes was estimated based upon quoted market prices and for other forms of debt fair value approximates carrying value due to the market based variable nature of the interest rates on those debt agreements.

Derivative financial instruments

3 Months Ended

Sep. 30, 2017

Derivative financial instruments

Derivative financial instruments

6. Derivative financial instruments

Many of the Company’s subsidiaries purchase and sell products in currencies other than their functional currencies. This subjects the Company to the risks associated with fluctuations in foreign currency exchange rates. The Company reduces this risk by utilizing natural hedging (e.g., offsetting receivables and payables in the same foreign currency) as well as by creating offsetting positions through the use of derivative financial instruments, primarily forward foreign exchange contracts typically with maturities of less than 60 days (“economic hedges”), but no longer than one year. The Company continues to have exposure to foreign currency risks to the extent they are not economically hedged. The Company adjusts any economic hedges to fair value through the consolidated statements of operations primarily within “other income (expense), net.” The fair value of forward foreign exchange contracts, which are based upon Level 2 criteria under the ASC 820 fair value hierarchy, are classified in the captions “other current assets” or “accrued expenses and other,” as applicable, in the accompanying consolidated balance sheets as of September 30, 2017, and July 1, 2017. The Company’s master netting and other similar arrangements with various financial institutions related to derivative financial instruments allow for the right of offset. The Company’s policy is to present derivative financial instruments with the same counterparty as either a net asset or liability when the right of offset exists.

The Company generally does not hedge its investments in its foreign operations. The Company does not enter into derivative financial instruments for trading or speculative purposes and monitors the financial stability and credit standing of its counterparties.

The Company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase from suppliers. The Company’s foreign operations transactions are denominated primarily in the following currencies: U.S. Dollar, Euro, British Pound, Canadian Dollar, Japanese Yen, Chinese Yuan, Taiwan Dollar and Mexican Peso. The Company also, to a lesser extent, has foreign operations transactions in other European and Asia/Pacific foreign currencies.

The fair values of derivative financial instruments in the Company’s consolidated balance sheets are as follows:


	September 30,		July 1,
	2017		2017
	(Thousands)
Forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in:
Other current assets	$	3,653	$	7,297
Accrued expenses		5,108		4,142

In addition to amounts included in the above table, there was approximately $0.1 million and $34.0 million as of September 30, 2017 and July 1, 2017, respectively, of accrued expenses related to an economic hedge derivative financial instrument used to hedge the fair value changes in marketable securities discussed further in Note 3.

The amounts recorded to other income (expense), net related to derivative financial instruments for economic hedges are as follows:


	First Quarters Ended
	September 30,		October 1,
	2017		2016
	(Thousands)
Net derivative financial instrument (loss) gain	$	1,859	$	(9,508)

For the three months ended October 1, 2016, $8.0 million of derivative financial instrument losses in other income (expenses), net, have been excluded from the above table associated with foreign currency derivative financial instruments purchased to economically hedge the British Pound purchase price of the PF acquisition in fiscal 2017.

Under the Company’s economic hedging policies, gains and losses on the derivative financial instruments are classified within the same line item in the consolidated statements of operations and as the underlying assets or liabilities being economically hedged.

Commitments and contingencies	3 Months Ended
Commitments and contingencies	Sep. 30, 2017
Commitments and contingencies
Commitments and contingencies	7. Commitments and contingencies From time to time, the Company may become a party to, or be otherwise involved in various lawsuits, claims, investigations and other legal proceedings arising in the ordinary course of conducting its business. While litigation is subject to inherent uncertainties, management does not anticipate that any such matters will have a material adverse effect on the Company’s financial condition, liquidity or results of operations. The Company is also currently subject to various pending and potential legal matters and investigations relating to compliance with governmental laws and regulations, including import/export and environmental matters. For certain of these matters it is not possible to determine the ultimate outcome, and the Company cannot reasonably estimate the maximum potential exposure or the range of possible loss for such matters due primarily to being in the early stages of the related proceedings and investigations. The Company currently believes that the resolution of such matters will not have a material adverse effect on the Company’s financial position or liquidity, but could possibly be material to its results of operations in any one reporting period. As of September 30, 2017, the Company had aggregate estimated liabilities of $14.2 million, classified within accrued expenses and other for such compliance-related matters that were reasonably estimable as of such dates.

Income taxes	3 Months Ended
Income taxes	Sep. 30, 2017
Income taxes
Income taxes	8. Income taxes The Company’s effective tax rate on its income before income taxes from continuing operations was 5.4% in the first quarter of fiscal 2018 as compared with 23.6% in the first quarter of fiscal 2017. During the first quarter of fiscal 2018, the Company’s effective tax rate was favorably impacted primarily by (i) the mix of income in lower tax jurisdictions and (ii) the release of unrecognized tax benefit reserves primarily due to the negotiation of a favorable outcome in a foreign jurisdiction. During the first quarter of fiscal 2017, the Company’s effective tax rate was favorably impacted primarily by the mix of income in lower tax jurisdictions.

Pension and retirement plan

3 Months Ended

Sep. 30, 2017

Pension and retirement plan

Pension and retirement plans

9. Pension plan

The Company has a noncontributory defined benefit pension plan (the “Plan”) that covers substantially all U.S. employees excluding U.S. employees of the acquired PF business and a closed noncontributory defined benefit pension plan in the U.S. covering all U.S. PF employees (collectively, the “Plans”). Components of net period pension cost for the Plans were as follows:


	First Quarters Ended
	September 30,		October 1,
	2017		2016 (1)
	(Thousands)
Service cost	$	3,868	$	10,848
Interest cost		5,783		3,774
Expected return on plan assets		(13,757)		(10,588)
Amortization of prior service credits		(393)		(393)
Recognized net actuarial loss		3,746		3,851
Net periodic pension (benefit) cost	$	(753)	$	7,492

⁽¹⁾

Includes discontinued operations

The Company contributed $8.0 million to the Plans during the first quarter of fiscal 2018 and expects to make an additional contribution to the Plans of $8.0 million in the remainder of fiscal 2018. No contributions were made to the acquired PF plan as that plan has been closed. The Company expects to combine the Plans into a single plan to provide pension benefits to eligible U.S. employees beginning in January 2018.

The Plans meet the definition of defined benefit plans and as a result, the Company applies ASC 715 pension accounting to the Plans. The Plans, however, are cash balance plans that are similar in nature to defined contribution plans in that a participant’s benefit is defined in terms of stated account balances. The cash balance plans provides the Company with the benefit of applying any earnings on the Plan’s investments beyond the fixed return provided to participants, toward the Company’s future cash funding obligations.

Amounts reclassified out of accumulated other comprehensive income (loss), net of tax, to operating expenses during the first quarters of fiscal 2018 and fiscal 2017 were not material and substantially all related to net periodic pension costs including recognition of actuarial losses and amortization of prior service credits.

In connection with the sale of the TS business, a significant number of former employees became terminated vested employees under the Plan. If the aggregate amount of former employee withdrawals from their Plan balances reach a certain threshold during a fiscal year, a settlement charge is required under ASC 715 pension accounting in the period that such aggregate withdrawals exceed the threshold. The Company expects that this threshold will be exceeded in fiscal 2018 resulting in settlement charges of up to approximately $15 million.

Shareholders' equity	3 Months Ended
Shareholders' equity	Sep. 30, 2017
Shareholders' equity
Shareholders' equity	10. Shareholders’ equity Share repurchase program In February 2017, the Company’s Board of Directors amended the Company’s existing share repurchase program to authorize the repurchase of up to $1.75 billion of common stock in the open market or through privately negotiated transactions. The timing and actual number of shares repurchased will depend on a variety of factors such as share price, corporate and regulatory requirements, and prevailing market conditions. During the three months ended September 30, 2017, the Company repurchased 1.9 million shares under this program for a total cost of $72.1 million. Common stock dividend In August 2017, the Company’s Board of Directors approved a dividend of $0.18 per common share and dividend payments of $22.0 million were made in September 2017.

Earnings per share

3 Months Ended

Sep. 30, 2017

Earnings per share

Earnings per share

11. Earnings per share


	First Quarters Ended
	September 30,		October 1,
	2017		2016
	(Thousands, except per share data)
Numerator:
Income from continuing operations	$	58,182	$	67,688
Income from discontinued operations		121		1,155
Net income	$	58,303	$	68,843
Denominator:
Weighted average common shares for basic earnings per share		122,685		127,531
Net effect of dilutive stock based compensation awards		1,299		2,232
Weighted average common shares for diluted earnings per share		123,984		129,763
Basic earnings per share - continuing operations	$	0.48	$	0.53
Basic earnings per share - discontinued operations		0.00		0.01
Basic earnings per share	$	0.48	$	0.54
Diluted earnings per share - continuing operations	$	0.47	$	0.52
Diluted earnings per share - discontinued operations		0.00		0.01
Diluted earnings per share	$	0.47	$	0.53
Stock options excluded from earnings per share calculation due to anti-dilutive effect		2,033		674

See Note 3 for additional information on income from discontinued operations.

Additional cash flow information

3 Months Ended

Sep. 30, 2017

Additional cash flow information

Additional cash flow information

12. Additional cash flow information

Non-cash investing activities and supplemental cash flow information were as follows:


	Three Months Ended
	September 30,		October 1,
	2017		2016
	(Thousands)
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	23,176	$	7,406
Supplemental Cash Flow Information:
Interest	$	5,107	$	18,840
Income taxes	$	18,362	$	15,216

Non-cash financing activities of $4.0 million related to share repurchases that have been accrued, but not yet paid for as of September 30, 2017. Non-cash investing activities of $4.1 million related to share sales that have been accrued, but not yet received, as of September 30, 2017.

Included in cash and cash equivalents as of September 30, 2017, and July 1, 2017, was $5.5 million and $208.3 million, respectively, of cash equivalents, which was primarily comprised of investment grade money market funds and overnight time deposits.

Segment information

3 Months Ended

Sep. 30, 2017

Segment information

Segment information

13. Segment information

Electronic Components (“EC”) and Premier Farnell (“PF”) are the Company’s reportable segments (“operating groups”). EC markets and sells semiconductors and interconnect, passive and electromechanical devices and integrated components to a diverse customer base serving many end-markets. PF distributes electronic components and related products to the electronic system design community utilizing multi-channel sales and marketing resources.


	First Quarters Ended
	September 30,		October 1,
	2017		2016
	(Thousands)
Sales:
Electronic Components	$	4,307,251	$	4,118,104
Premier Farnell		353,692		—
		4,660,943		4,118,104
Operating income (loss):
Electronic Components	$	139,601	$	185,051
Premier Farnell		34,795		—
		174,396		185,051
Corporate (1)		(32,462)		(23,690)
Restructuring, integration and other expenses		(46,394)		(29,469)
Amortization of acquired intangible assets and other		(25,585)		(2,378)
Operating Income	$	69,955	$	129,514

Sales, by geographic area:
Americas (2)	$	1,185,485	$	1,250,508
EMEA (3)		1,692,985		1,265,294
Asia/Pacific (4)		1,782,473		1,602,302
Sales	$	4,660,943	$	4,118,104

(1)Corporate is not a reportable segment and represents certain centrally incurred overhead expenses and assets that are not included in the EC and PF measures of profitability or assets. Corporate amounts represent a reconciling item between segment measures and total Avnet amounts reported in the consolidated financial statements.

(2)Includes sales from the United States of $1.10 billion and $1.17 billion for the first quarters ended September 30, 2017, and October 1, 2016, respectively.

(3)Includes sales from Germany and Belgium of $681.0 million and $262.5 million, respectively, for the first quarter ended September 30, 2017. Includes sales from Germany and Belgium of $521.4 million and $202.7 million, respectively, for the first quarter ended October 1, 2016.

(4)Includes sales from China (including Hong Kong) and Taiwan of $655.4 million and $657.5 million, respectively, for the first quarter ended September 30, 2017. Includes sales from China (including Hong Kong) and Taiwan of $624.8 million and $589.5 million, respectively, for the first quarter ended October 1, 2016.


	September 30,		July 1,
	2017		2017
	(Thousands)
Property, plant, and equipment, net, by geographic area:
Americas (1)	$	278,435	$	296,038
EMEA (2)		193,756		186,127
Asia/Pacific		38,112		37,410
Property, plant, and equipment, net	$	510,303	$	519,575

(1)Includes property, plant and equipment, net, of $272.5 million and $289.1 million as of September 30, 2017, and July 1, 2017, respectively, in the United States.

(2)Includes property, plant and equipment, net, of $91.9 million, $52.2 million and $40.6 million in Germany, UK and Belgium, respectively, as of September 30, 2017, and $85.6 million, $52.1 million and $39.8 million in Germany, UK and Belgium, respectively, as of July 1, 2017.

Restructuring expenses

3 Months Ended

Sep. 30, 2017

Restructuring expenses

Restructuring expenses

14. Restructuring expenses

Fiscal 2018

During fiscal 2018, the Company took certain restructuring actions in an effort to integrate acquisitions and reduce future operating expenses. Restructuring expenses are included as a component of restructuring, integration and other expenses in the consolidated statements of operations. The activity related to the restructuring liabilities established during fiscal 2018 is presented in the following table:


			Facility			Asset
	Severance		Exit Costs		Impairments		Other		Total
	(Thousands)
Fiscal 2018 restructuring expenses	$	20,583		—		583		120	$	21,286
Cash payments		(3,054)		—		—		(13)		(3,067)
Non-cash amounts		—		—		(583)		—		(583)
Other, principally foreign currency translation		(39)		—		—		(1)		(40)
Balance at September 30, 2017	$	17,490	$	—	$	—	$	106	$	17,596

Severance expense recorded in the first quarter of fiscal 2018 related to the reduction, or planned reduction of 461 employees, primarily in executive management, operations, warehouse, sales and business support functions. Facility exit costs (if any) primarily consist of liabilities for remaining lease obligations for exited facilities. Asset impairments relate to the impairment of property, plant and equipment as a result of the underlying restructuring activities. Other restructuring costs related primarily to other miscellaneous restructuring and exit costs. Of the $21.3 million in restructuring expenses recorded during the first quarter of fiscal 2018, $17.7 million related to EC, $2.4 million related to PF and $1.2 million related to corporate executive and business support functions. The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2018.

Fiscal 2017

During fiscal 2017, the Company incurred restructuring expenses related to various restructuring actions intended to achieve planned synergies from acquired businesses and to reduce future operating expenses. The following table presents the activity during the first three months of fiscal 2018 related to the remaining restructuring liabilities from continuing operations established during fiscal 2017:


			Facility
	Severance		Exit Costs		Other		Total
	(Thousands)
Balance at July 1, 2017	$	12,186	$	76	$	—	$	12,262
Cash payments		(4,506)		(73)		—		(4,579)
Changes in estimates, net		64		—		—		64
Non-cash amounts		—		—		—		—
Other, principally foreign currency translation		132		2		—		134
Balance at September 30, 2017	$	7,876	$	5	$	—	$	7,881

The Company expects the majority of the remaining amounts to be paid by the end of fiscal 2018.

Basis of presentation and new accounting pronouncements (Policies)	3 Months Ended
	Sep. 30, 2017
Basis of presentation and new accounting pronouncements
Basis of presentation	In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments necessary to present fairly Avnet, Inc.’s and its consolidated subsidiaries’ (collectively, the “Company” or “Avnet”) financial position, results of operations, comprehensive income (loss) and cash flows. All such adjustments are of a normal recurring nature. The preparation of financial statements in accordance with generally accepted accounting principles in the U.S. (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results may differ from these estimates. Interim results of operations are not necessarily indicative of the results to be expected for the full fiscal year. The information included in this Form 10-Q should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2017. Certain reclassifications have been made in prior periods and the fiscal year to date current periods to conform to the current period presentation.
New accounting pronouncements	New accounting pronouncements In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities (“ASU 2017-12”), which improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements and makes certain targeted improvements to simplify the application of the hedge accounting guidance in current GAAP. This update is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of the adoption of ASU 2017-12 on its consolidated financial statements. There have been no material changes or additions to the recently issued accounting pronouncements as previously reported in Part II, Item 7, of the Company’s Annual Report on Form 10-K for the fiscal year ended July 1, 2017 that affect or may affect the Company’s financial statements.

Acquisitions (Tables)

3 Months Ended

Sep. 30, 2017

Acquisitions

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed


Cash	$	46,354
Trade and other receivables, net		187,303
Inventories		328,037
Property, plant and equipment		52,621
Intangible assets		319,966
Total identifiable assets acquired	$	934,281

Accounts payable, accrued liabilities and other current liabilities	$	160,572
Short-term debt		242,814
Other long-term liabilities		150,109
Total identifiable liabilities acquired	$	553,495
Net identifiable assets acquired		380,786
Goodwill		460,534
Net assets acquired	$	841,320

Discontinued Operations (Tables)

3 Months Ended

Sep. 30, 2017

Discontinued Operations and Disposal Groups

Schedule of summarized results of discontinued operations



	First Quarter Ended
	October 1, 2016
	(Thousands)
Sales	$	1,922,202
Cost of sales		1,728,929
Gross profit		193,273
Selling, general and administrative expenses		166,025
Restructuring, integration and other expenses		4,224
Operating income		23,024
Interest and other expense, net		5
Income from discontinued operations before income taxes		23,029
Income tax expense		21,874
Income from discontinued operations, net of taxes	$	1,155

Goodwill and long-lived assets (Tables)

3 Months Ended

Sep. 30, 2017

Goodwill and long-lived assets

Change in goodwill balances by reportable segment


	Electronic		Premier
	Components		Farnell		Total
	(Thousands)
Gross goodwill	$	1,680,158	$	513,299	$	2,193,457
Accumulated impairment		(1,045,110)		—		(1,045,110)
Carrying value at July 1, 2017		635,048		513,299		1,148,347
Additions from acquisitions		21,539		—		21,539
Foreign currency translation		5,772		17,739		23,511
Measurement period adjustments		(64)		(15,328)		(15,392)
Carrying value at September 30, 2017	$	662,295	$	515,710	$	1,178,005
Gross goodwill	$	1,707,405	$	515,710	$	2,223,115
Accumulated impairment		(1,045,110)		—		(1,045,110)
Carrying value at September 30, 2017	$	662,295	$	515,710	$	1,178,005

Company's identifiable acquired intangible assets


	September 30, 2017						July 1, 2017
	Acquired		Accumulated		Net Book		Acquired		Accumulated		Net Book
	Amount		Amortization		Value		Amount		Amortization		Value
	(Thousands)
Customer related	$	307,712	$	(101,512)	$	206,200	$	277,865	$	(79,578)	$	198,287
Trade name		55,947		(10,122)		45,825		46,915		(6,720)		40,195
Technology and other		53,580		(14,643)		38,937		50,369		(11,560)		38,809
	$	417,239	$	(126,277)	$	290,962	$	375,149	$	(97,858)	$	277,291

Estimated future amortization expense

The following table presents the estimated future amortization expense for the remainder of fiscal 2018, the next five fiscal years and thereafter (in thousands):


Fiscal Year
Remainder of fiscal 2018		65,198
2019		85,462
2020		83,476
2021		40,219
2022		12,677
2023		3,693
Thereafter		237
Total	$	290,962

Debt (Tables)

3 Months Ended

Sep. 30, 2017

Debt

Short-term debt

Short-term debt consists of the following (in thousands):


	September 30, 2017		July 1, 2017		September 30, 2017		July 1, 2017
	Interest Rate				Carrying Balance
Bank credit facilities and other	2.15	%	2.27	%	$	25,498	$	50,113
Accounts receivable securitization program	1.70	%	—			170,000		—
Short-term debt					$	195,498	$	50,113

Long-term debt

Long-term debt consists of the following (in thousands):


	September 30, 2017		July 1, 2017		September 30, 2017		July 1, 2017
	Interest Rate				Carrying Balance
Revolving credit facilities:
Accounts receivable securitization program	—		1.53	%	$	—	$	142,000
Credit Facility	4.30	%	2.77	%		7,500		99,970
Notes due:
June 2020	5.88	%	5.88	%		300,000		300,000
December 2021	3.75	%	3.75	%		300,000		300,000
December 2022	4.88	%	4.88	%		350,000		350,000
April 2026	4.63	%	4.63	%		550,000		550,000
Other long-term debt	1.36	%	1.36	%		532		642
Long-term debt before discount and debt issuance costs						1,508,032		1,742,612
Discount and debt issuance costs - unamortized						(12,893)		(13,400)
Long-term debt					$	1,495,139	$	1,729,212

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Derivative financial instruments (Tables)

3 Months Ended

Sep. 30, 2017

Derivative financial instruments

Schedule of derivative instruments in the balance sheet


	September 30,		July 1,
	2017		2017
	(Thousands)
Forward foreign currency exchange contracts not receiving hedge accounting treatment recorded in:
Other current assets	$	3,653	$	7,297
Accrued expenses		5,108		4,142

Schedule of gain (loss) on derivatives


	First Quarters Ended
	September 30,		October 1,
	2017		2016
	(Thousands)
Net derivative financial instrument (loss) gain	$	1,859	$	(9,508)

Pension and retirement plans (Tables)

3 Months Ended

Sep. 30, 2017

Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract]

Components of net periodic pension costs


	First Quarters Ended
	September 30,		October 1,
	2017		2016 (1)
	(Thousands)
Service cost	$	3,868	$	10,848
Interest cost		5,783		3,774
Expected return on plan assets		(13,757)		(10,588)
Amortization of prior service credits		(393)		(393)
Recognized net actuarial loss		3,746		3,851
Net periodic pension (benefit) cost	$	(753)	$	7,492

⁽¹⁾

Includes discontinued operations

Earnings per share (Tables)

3 Months Ended

Sep. 30, 2017

Earnings per share

Basic and diluted earnings per share calculation


	First Quarters Ended
	September 30,		October 1,
	2017		2016
	(Thousands, except per share data)
Numerator:
Income from continuing operations	$	58,182	$	67,688
Income from discontinued operations		121		1,155
Net income	$	58,303	$	68,843
Denominator:
Weighted average common shares for basic earnings per share		122,685		127,531
Net effect of dilutive stock based compensation awards		1,299		2,232
Weighted average common shares for diluted earnings per share		123,984		129,763
Basic earnings per share - continuing operations	$	0.48	$	0.53
Basic earnings per share - discontinued operations		0.00		0.01
Basic earnings per share	$	0.48	$	0.54
Diluted earnings per share - continuing operations	$	0.47	$	0.52
Diluted earnings per share - discontinued operations		0.00		0.01
Diluted earnings per share	$	0.47	$	0.53
Stock options excluded from earnings per share calculation due to anti-dilutive effect		2,033		674

Additional cash flow information (Tables)

3 Months Ended

Sep. 30, 2017

Additional cash flow information

Interest and income taxes paid


	Three Months Ended
	September 30,		October 1,
	2017		2016
	(Thousands)
Non-cash Investing Activities:
Capital expenditures incurred but not paid	$	23,176	$	7,406
Supplemental Cash Flow Information:
Interest	$	5,107	$	18,840
Income taxes	$	18,362	$	15,216

Segment information (Tables)

3 Months Ended

Sep. 30, 2017

Segment information

Table of the Company's segments and the related financial information for each


	First Quarters Ended
	September 30,		October 1,
	2017		2016
	(Thousands)
Sales:
Electronic Components	$	4,307,251	$	4,118,104
Premier Farnell		353,692		—
		4,660,943		4,118,104
Operating income (loss):
Electronic Components	$	139,601	$	185,051
Premier Farnell		34,795		—
		174,396		185,051
Corporate (1)		(32,462)		(23,690)
Restructuring, integration and other expenses		(46,394)		(29,469)
Amortization of acquired intangible assets and other		(25,585)		(2,378)
Operating Income	$	69,955	$	129,514

Sales, by geographic area:
Americas (2)	$	1,185,485	$	1,250,508
EMEA (3)		1,692,985		1,265,294
Asia/Pacific (4)		1,782,473		1,602,302
Sales	$	4,660,943	$	4,118,104

(2)Includes sales from the United States of $1.10 billion and $1.17 billion for the first quarters ended September 30, 2017, and October 1, 2016, respectively.

Table of Assets by reportable segment and long-lived assets by geographic area


	September 30,		July 1,
	2017		2017
	(Thousands)
Property, plant, and equipment, net, by geographic area:
Americas (1)	$	278,435	$	296,038
EMEA (2)		193,756		186,127
Asia/Pacific		38,112		37,410
Property, plant, and equipment, net	$	510,303	$	519,575

(1)Includes property, plant and equipment, net, of $272.5 million and $289.1 million as of September 30, 2017, and July 1, 2017, respectively, in the United States.

Restructuring expenses (Tables)

3 Months Ended

Sep. 30, 2017

Fiscal Year 2018 Restructuring Liabilities

Restructuring Cost and Reserve [Line Items]


			Facility			Asset
	Severance		Exit Costs		Impairments		Other		Total
	(Thousands)
Fiscal 2018 restructuring expenses	$	20,583		—		583		120	$	21,286
Cash payments		(3,054)		—		—		(13)		(3,067)
Non-cash amounts		—		—		(583)		—		(583)
Other, principally foreign currency translation		(39)		—		—		(1)		(40)
Balance at September 30, 2017	$	17,490	$	—	$	—	$	106	$	17,596

Fiscal Year 2017 Restructuring Liabilities

Restructuring Cost and Reserve [Line Items]


			Facility
	Severance		Exit Costs		Other		Total
	(Thousands)
Balance at July 1, 2017	$	12,186	$	76	$	—	$	12,262
Cash payments		(4,506)		(73)		—		(4,579)
Changes in estimates, net		64		—		—		64
Non-cash amounts		—		—		—		—
Other, principally foreign currency translation		132		2		—		134
Balance at September 30, 2017	$	7,876	$	5	$	—	$	7,881

Acquisitions (PF Acquisition) (Details) $ in Thousands		3 Months Ended
Acquisitions (PF Acquisition) (Details) $ in Thousands	Oct. 17, 2016 USD ($)	Sep. 30, 2017 USD ($)	Jul. 01, 2017 USD ($)	Oct. 17, 2016 £ / shares	Oct. 17, 2016 USD ($)
Assets Acquired and Liabilities Assumed
Goodwill		$ 1,178,005	$ 1,148,347
PF
Business Acquisition [Line Items]
Cash consideration paid	$ 841,000
Business Acquisition, Share Price \| £ / shares				£ 1.85
debt assumed					$ 242,800
Allocation of purchase price adjustment to goodwill		15,300
Allocation of purchase price adjustment to other long-term liabilities		9,600
Allocation of purchase price adjustment to intangibles		$ 24,900
Assets Acquired and Liabilities Assumed
Cash					46,354
Trade and other receivable, net					187,303
Inventories					328,037
Property, plant and equipment					52,621
Intangible assets					319,966
Total identifiable assets acquired					934,281
Accounts payable, accrued liabilities and other current liabilities					160,572
Short-term debt					242,814
Other long-term liabilities					150,109
Total identifiable liabilities assumed					(553,495)
Net identifiable assets acquired					380,786
Goodwill					460,534
Net assets acquired					841,320
Goodwill acquired expected to be tax deductible					$ 10,000

Discontinued Operations - Consideration (Details) - USD ($) $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended
	Feb. 25, 2017	Sep. 30, 2017	Jul. 01, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Prepaid and other current assets		$ 261,600	$ 253,765
Disposal Group, Held-for-sale, Not Discontinued Operations \| TS Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Consideration in sale of business	$ 2,800
Value of shares received as consideration in sale of business	$ 247,000
Securities sold		0.6

Discontinued Operations - Economic Hedge (Details)	1 Months Ended
Discontinued Operations - Economic Hedge (Details)	Feb. 25, 2017
Maximum
Derivative Instruments, Gain (Loss) [Line Items]
Business sale length of contract for certain services	2 years

Discontinued Operations - Operations (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Income from discontinued operations, net of tax	$ 121	$ 1,155
Net income from discontinued operations	121	1,155
Disposal Group, Held-for-sale, Not Discontinued Operations \| TS Business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Revenues discontinued operations		1,922,202
Cost of sales		1,728,929
Gross profit		193,273
Selling, general and administrative expenses		166,025
Restructuring, integration and other expenses		4,224
Operating income		23,024
Interest and other expense, net		5
Income from discontinued operations before income taxes		23,029
Income tax expense discontinued operations		21,874
Income from discontinued operations, net of tax		1,155
Net income from discontinued operations		$ 1,155
Disposal Group, Held-for-sale, Not Discontinued Operations \| TS Business \| Selling, General and Administrative Expenses
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Corporate expenses	$ 12,500

Goodwill and long-lived assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Jul. 01, 2017
Carrying amount of goodwill, by reportable segment
Carrying value	$ 1,148,347
Additions from acquisitions	21,539
Measurement period adjustments	(15,392)
Foreign currency translation	23,511
Carrying value	1,178,005
Gross Goodwill	2,223,115	$ 2,193,457
Accumulated Impairment	(1,045,110)	(1,045,110)
Electronic Components
Carrying amount of goodwill, by reportable segment
Carrying value	635,048
Additions from acquisitions	21,539
Measurement period adjustments	(64)
Foreign currency translation	5,772
Carrying value	662,295
Gross Goodwill	1,707,405	1,680,158
Accumulated Impairment	(1,045,110)	(1,045,110)
Premier Farnell
Carrying amount of goodwill, by reportable segment
Carrying value	513,299
Measurement period adjustments	(15,328)
Foreign currency translation	17,739
Carrying value	515,710
Gross Goodwill	$ 515,710	$ 513,299

Goodwill and long-lived assets Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Finite-Lived Intangible Assets [Line Items]
Acquired amount	$ 417,239	$ 375,149
Accumulated Amortization	(126,277)	(97,858)
Net Book Value	290,962	277,291
Customer related
Finite-Lived Intangible Assets [Line Items]
Acquired amount	307,712	277,865
Accumulated Amortization	(101,512)	(79,578)
Net Book Value	206,200	198,287
Trade name
Finite-Lived Intangible Assets [Line Items]
Acquired amount	55,947	46,915
Accumulated Amortization	(10,122)	(6,720)
Net Book Value	45,825	40,195
Technology and other
Finite-Lived Intangible Assets [Line Items]
Acquired amount	53,580	50,369
Accumulated Amortization	(14,643)	(11,560)
Net Book Value	$ 38,937	$ 38,809

Goodwill and long-lived assets Textuals (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Goodwill and long-lived assets
Weighted average life of intangible assets	4 years
Intangible asset amortization expense	$ 25,506	$ 1,930

Goodwill and long-lived assets (Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Fiscal Year:
Remainder of fiscal 2018	$ 65,198
2019	85,462
2020	83,476
2021	40,219
2022	12,677
2023	3,693
Thereafter	237
Net Book Value	$ 290,962	$ 277,291

Debt - short-term debt (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
Debt - short-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Oct. 01, 2016	Jul. 01, 2017
Components of short-term debt
Debt, Current, Total	$ 195,498		$ 50,113
Repayment of notes		$ 300,000
Bank credit facilities and other
Components of short-term debt
Short-term Debt, Weighted Average Interest Rate	2.15%		2.27%
Short-term borrowings	$ 25,498		$ 50,113
Accounts receivable securitization program
Components of short-term debt
Short-term Debt, Weighted Average Interest Rate	1.70%
Current portion of long-term debt	$ 170,000

Debt - long-term debt (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
Debt - long-term debt (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Debt Instrument [Line Items]
Long-term debt before discount and debt issuance costs	$ 1,508,032	$ 1,742,612
Discount and debt issuance costs - unamortized	(12,893)	(13,400)
Long-term debt	$ 1,495,139	$ 1,729,212
Revolving credit facilities
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	4.30%	2.77%
Long-term debt before discount and debt issuance costs	$ 7,500	$ 99,970
Revolving credit facilities \| Accounts receivable securitization program
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate		1.53%
Long-term debt before discount and debt issuance costs		$ 142,000
Notes due \| Notes Due June 2020
Debt Instrument [Line Items]
Long-term debt, stated interest rate	5.88%	5.88%
Long-term debt before discount and debt issuance costs	$ 300,000	$ 300,000
Notes due \| Notes Due December 2021
Debt Instrument [Line Items]
Long-term debt, stated interest rate	3.75%	3.75%
Long-term debt before discount and debt issuance costs	$ 300,000	$ 300,000
Notes due \| Notes Due December 2022
Debt Instrument [Line Items]
Long-term debt, stated interest rate	4.88%	4.88%
Long-term debt before discount and debt issuance costs	$ 350,000	$ 350,000
Notes due \| Notes Due April 2026
Debt Instrument [Line Items]
Long-term debt, stated interest rate	4.63%	4.63%
Long-term debt before discount and debt issuance costs	$ 550,000	$ 550,000
Other long-term debt
Debt Instrument [Line Items]
Long-term Debt, Weighted Average Interest Rate	1.36%	1.36%
Long-term debt before discount and debt issuance costs	$ 532	$ 642

Debt (Textuals) (Details) - USD ($) $ in Thousands	3 Months Ended
Debt (Textuals) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Company's total debt
Debt, Long-term and Short-term, Combined Amount	$ 1,690,000	$ 1,780,000
Total fair value	1,760,000	1,850,000
Bank credit facilities and other
Debt Instrument [Line Items]
Short-term borrowings	25,498	50,113
Revolving credit facilities
Debt Instrument [Line Items]
Maximum borrowing amount	$ 1,250,000
Term	5 years
Line of credit facility contingent increase to maximum borrowing capacity	$ 1,500,000
Revolving credit facilities \| Accounts receivable securitization program
Debt Instrument [Line Items]
Maximum borrowing amount	400,000
Accounts Receivable from Securitization	$ 734,200	807,500
Line of Credit Facility, Commitment Fee Percentage	0.40%
Revolving credit facilities \| Accounts receivable securitization program \| Base Rate or Commercial Paper
Debt Instrument [Line Items]
Spread over base rate	0.40%
Letter of Credit
Debt Instrument [Line Items]
Maximum borrowing amount	$ 150,000
Letters of credit outstanding, amount	$ 2,000	$ 3,100
Notes due \| Notes Due December 2021
Debt Instrument [Line Items]
Long-term debt, stated interest rate	3.75%	3.75%
Notes due \| Notes Due April 2026
Debt Instrument [Line Items]
Long-term debt, stated interest rate	4.63%	4.63%

Derivative financial instruments Textuals (Details) - USD ($)	3 Months Ended
	Sep. 30, 2017	Jul. 01, 2017
Derivative fair value
Derivative assets fair value	$ 3,653,000	$ 7,297,000
Derivative liabilities fair value	$ 5,108,000	4,142,000
Minimum \| Foreign Exchange Forward
Derivatives, Fair Value [Line Items]
Maximum maturity of foreign exchange contracts (less than one year)	60 days
Maximum \| Foreign Exchange Forward
Derivatives, Fair Value [Line Items]
Maximum maturity of foreign exchange contracts (less than one year)	1 year
Not Designated as Hedging Instrument \| Equity securities \| Foreign Exchange Forward \| Accrued Expenses
Derivative fair value
Derivative liabilities fair value	$ 100,000	$ 34,000,000

Derivative financial instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Not Designated as Hedging Instrument \| Foreign Exchange Forward
Derivative Instruments, Gain (Loss) [Line Items]
Net derivative financial instrument (loss) gain	$ 1,859	$ (9,508)
Other expenses, net
Derivative Instruments, Gain (Loss) [Line Items]
Derivative financial loss		$ 8,000

Commitments and contingencies (Textuals) (Details) $ in Millions	Sep. 30, 2017 USD ($)
Loss Contingency, Estimate [Abstract]
Estimate of possible loss	$ 14.2

Income taxes textuals (Details)	3 Months Ended
Income taxes textuals (Details)	Sep. 30, 2017	Oct. 01, 2016
Income taxes
Effective tax rate	5.40%	23.60%

Pension and retirement plans (Periodic Pension Cost) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Jun. 30, 2018
Components of net periodic pension costs
Service cost	$ 3,868	$ 10,848
Interest cost	5,783	3,774
Expected return on plan assets	(13,757)	(10,588)
Amortization of prior service credits	(393)	(393)
Recognized net actuarial loss	3,746	3,851
Net periodic pension (benefit) cost	(753)	$ 7,492
Plan
Components of net periodic pension costs
Contributions	8,000
Defined benefit plans, estimated future employer contributions each remaining quarter of current fiscal year	8,000
Acquired PF Plan
Components of net periodic pension costs
Contributions	$ 0
Maximum \| Forecast
Components of net periodic pension costs
Settlement			$ 15,000

Shareholders' equity (Share repurchase program textuals) (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	1 Months Ended	3 Months Ended
	Aug. 26, 2017	Sep. 30, 2017	Oct. 01, 2016
Shareholders' equity
Authorized repurchase of common stock under Share Repurchase Program		$ 1,750,000
Shares repurchased during period (in shares)		1.9
Cost of repurchase		$ 72,100
Cash dividends paid per common share	$ 0.18	$ 0.18	$ 0.17
Dividends paid on common stock		$ 22,012	$ 21,676

Earnings per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Numerator:
Income from continuing operations	$ 58,182	$ 67,688
Income from discontinued operations	121	1,155
Net income	$ 58,303	$ 68,843
Denominator:
Weighted average common shares for basic earnings per share	122,685	127,531
Net effect of dilutive stock based compensation awards	1,299	2,232
Weighted average common shares for diluted earnings per share	123,984	129,763
Basic earnings per share-continuing operations	$ 0.48	$ 0.53
Basic earnings per share-discontinued operations	0.00	0.01
Basic earnings per share	0.48	0.54
Diluted earnings per share-continuing operations	0.47	0.52
Diluted earnings per share-discontinued operations	0.00	0.01
Diluted earnings per share	$ 0.47	$ 0.53
Stock options excluded from earnings per share calculation due to antidilutive effect	2,033	674

Additional cash flow information (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016	Jul. 01, 2017
Interest and income taxes paid
Interest	$ 5,107	$ 18,840
Income taxes paid	18,362	15,216
Capital expenditures incurred but not paid	23,176	$ 7,406
Unsettled repurchases of common stock	4,000
Trading shares sold, but payment not yet received	4,100
Cash equivalents	$ 5,500		$ 208,300

Segment information (Details) - USD ($) $ in Thousands	3 Months Ended
Segment information (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Oct. 01, 2016
Sales, by segment
Sales	$ 4,660,943	$ 4,118,104
Operating income (expense):
Restructuring, integration and other expenses (Note 14)	(46,394)	(29,469)
Amortization of acquired intangible assets and other	(25,585)	(2,378)
Operating income	69,955	129,514
Segment
Operating income (expense):
Operating income	174,396	185,051
Electronic Components
Operating income (expense):
Operating income	139,601	185,051
Electronic Components \| Segment
Sales, by segment
Sales	4,307,251	4,118,104
Premier Farnell
Operating income (expense):
Operating income	34,795
Premier Farnell \| Segment
Sales, by segment
Sales	353,692
Business Support \| Corporate
Operating income (expense):
Corporate	$ (32,462)	$ (23,690)

Segment information (Sales, by geographic area) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Oct. 01, 2016
Sales, by geographic area:
Sales	$ 4,660,943	$ 4,118,104
Americas
Sales, by geographic area:
Sales	1,185,485	1,250,508
United States
Sales, by geographic area:
Sales	1,100,000	1,170,000
EMEA
Sales, by geographic area:
Sales	1,692,985	1,265,294
Germany
Sales, by geographic area:
Sales	681,000	521,400
Belgium
Sales, by geographic area:
Sales	262,500	202,700
Asia Pacific
Sales, by geographic area:
Sales	1,782,473	1,602,302
Taiwan
Sales, by geographic area:
Sales	657,500	589,500
China (including Hong Kong)
Sales, by geographic area:
Sales	$ 655,400	$ 624,800

Segment information (Property, plant and equipment, net, by geographic area) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 01, 2017
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	$ 510,303	$ 519,575
Americas
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	278,435	296,038
United States
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	272,500	289,100
EMEA
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	193,756	186,127
Germany
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	91,900	85,600
United Kingdom
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	52,200	52,100
Belgium
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	40,600	39,800
Asia Pacific
Property, plant and equipment, net, by geographic area
Property, plant and equipment, net	$ 38,112	$ 37,410

Restructuring expenses (Details) $ in Thousands	3 Months Ended
Restructuring expenses (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Fiscal Year 2018 Restructuring Liabilities
Activity related to the restructuring reserves
Restructuring expenses	$ 21,286
Cash payments	(3,067)
Non-cash amounts	(583)
Other, principally foreign currency translation	(40)
Ending Balance	17,596
Fiscal Year 2017 Restructuring Liabilities
Activity related to the restructuring reserves
Beginning Balance	12,262
Cash payments	(4,579)
Changes in estimates, net	64
Other, principally foreign currency translation	134
Ending Balance	7,881
Employee Severance \| Fiscal Year 2018 Restructuring Liabilities
Activity related to the restructuring reserves
Restructuring expenses	20,583
Cash payments	(3,054)
Other, principally foreign currency translation	(39)
Ending Balance	17,490
Employee Severance \| Fiscal Year 2017 Restructuring Liabilities
Activity related to the restructuring reserves
Beginning Balance	12,186
Cash payments	(4,506)
Changes in estimates, net	64
Other, principally foreign currency translation	132
Ending Balance	7,876
Facility Closing \| Fiscal Year 2017 Restructuring Liabilities
Activity related to the restructuring reserves
Beginning Balance	76
Cash payments	(73)
Other, principally foreign currency translation	2
Ending Balance	5
Asset Impairments \| Fiscal Year 2018 Restructuring Liabilities
Activity related to the restructuring reserves
Restructuring expenses	583
Non-cash amounts	(583)
Other Restructuring \| Fiscal Year 2018 Restructuring Liabilities
Activity related to the restructuring reserves
Restructuring expenses	120
Cash payments	(13)
Other, principally foreign currency translation	(1)
Ending Balance	$ 106

Restructuring expenses (Textuals) (Details) $ in Thousands	3 Months Ended
Restructuring expenses (Textuals) (Details) $ in Thousands	Sep. 30, 2017 USD ($) employee	Jul. 01, 2017 USD ($)
Fiscal Year 2018 Restructuring Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 21,286
Restructuring Reserve	17,596
Fiscal Year 2018 Restructuring Liabilities \| Electronic Components
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	17,700
Fiscal Year 2018 Restructuring Liabilities \| Premier Farnell
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	2,400
Fiscal Year 2018 Restructuring Liabilities \| Business Support
Restructuring Cost and Reserve [Line Items]
Restructuring expenses	$ 1,200
Fiscal Year 2018 Restructuring Liabilities \| Minimum
Restructuring Cost and Reserve [Line Items]
Number of employee reductions under Severance charges \| employee	461
Fiscal Year 2017 Restructuring Liabilities
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve	$ 7,881	$ 12,262