Valuation And Qualifying Accounts

12 Months Ended

Jul. 02, 2022

Valuation and Qualifying Accounts

Valuation and Qualifying Accounts

SCHEDULE II

AVNET, INC. AND SUBSIDIARIES

VALUATION AND QUALIFYING ACCOUNTS

Years Ended July 2, 2022, July 3, 2021, and June 27, 2020

	Balance at			Charged to			Charged to						Balance at
	Beginning of			Expense			Other						End of
Account Description	Period			(Income)			Accounts			Deductions			Period
	(Thousands)
Fiscal 2022
Allowance for credit losses	$	88,160		$	47,990	(a)	$	—		$	(22,248)	(b)	$	113,902
Valuation allowance on tax loss carry-forwards		293,569			(65,208)	(c)		(20,472)	(d)		—			207,889
Fiscal 2021
Allowance for credit losses		65,018	(e)		15,842			17,205	(f)		(9,905)	(b)		88,160
Valuation allowance on tax loss carry-forwards		283,721			21,357	(g)		(11,509)	(h)		—			293,569
Fiscal 2020
Allowance for credit losses		53,499			12,111			—			(6,592)	(b)		59,018
Valuation allowance on tax loss carry-forwards		231,463			50,018	(i)		2,240	(h)		—			283,721

(a) Amount includes $17,202 of credit loss provisions associated with accounts receivable from Russian customers that are no longer considered collectible. See Note 4, “Receivables and Russian-Ukraine conflict related expenses” of the Notes to Consolidated Financial Statements of this Form 10-K.

(b) Primarily represents uncollectible receivables written off and the impact of changes in foreign currency rates during the fiscal year.

(c) Primarily represents net release of valuation allowance and impact of current year activities.

(d) Primarily related to impact of pension-related other comprehensive income and foreign currency exchange on valuation allowances.

(e) Beginning balance includes $59,018 of allowance for credit losses associated with trade accounts receivable and $6,000 of allowance for credit losses associated with notes receivable prior to the adoption of a new accounting standard discussed further in (f) below.

(f) See Note 1, “Summary of significant accounting policies, Recently adopted accounting pronouncements” of the Notes to Consolidated Financial Statements of this Form 10-K regarding the adoption of ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments”. The Company adopted the new standard on June 28, 2020, with a cumulative effect adjustment to the opening balance of retained earnings as of the beginning of fiscal 2021.

(g) Primarily represents impact of current year activities.

(h) Primarily related to impact of pension-related other comprehensive income and foreign currency exchange on valuation allowances.

(i) Primarily represents establishment of valuation allowance and impact of current year activities.