AVNET INC Goodwill & Intangibles Disclosure
6. Goodwill, intangible assets, and impairments
Goodwill
The following table presents the change in goodwill balances by reportable segment for fiscal year 2023.
| Electronic |
|
| ||||||
Components | Farnell | Total | |||||||
(Thousands) | |||||||||
Carrying value at July 2, 2022 (1) | $ | 291,526 | $ | 467,307 | $ | 758,833 | |||
Foreign currency translation |
| 5,303 |
| 16,493 |
| 21,796 | |||
Carrying value at July 1, 2023 (1) | $ | 296,829 | $ | 483,800 | $ | 780,629 | |||
| (1) | Includes accumulated impairment of $1,482,677 from prior fiscal years. |
Intangible Assets
The net book value of intangible assets was $6.5 million as of July 1, 2023, which is not material to the consolidated financial statements. Intangible asset amortization expense was $6.0 million, $15.0 million, and $41.0 million for fiscal 2023, 2022, and 2021, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Aug 18, 2023 | Showing above |
| 2022 | Aug 12, 2022 | |
| 2021 | Aug 13, 2021 | |
| 2020 | Aug 14, 2020 | |
| 2019 | Aug 15, 2019 | |
| 2018 | Aug 17, 2018 | |
| 2017 | Aug 17, 2017 | |
| 2016 | Aug 12, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.