Working capital

3 Months Ended

Oct. 03, 2026

Working capital

Working capital

2. Working capital

Receivables

The Company’s receivables and allowance for credit losses were as follows:

	October 3,		June 27,
	2026		2026
	(Thousands)
Gross receivables	$	7,858,797	$	6,980,935
Allowance for credit losses		(100,760)		(97,970)
Receivables	$	7,758,037	$	6,882,965

The Company had the following activity in the allowance for credit losses during the first quarters of fiscal 2027 and fiscal 2026:

	October 3,		September 27,
	2026		2025
	(Thousands)
Balance at beginning of the period	$	97,970	$	108,195
Credit Loss Provisions (Releases)		4,092		(1,737)
Credit Loss Recoveries		171		62
Receivables Write Offs		(858)		(1,107)
Foreign Currency Effect and Other		(615)		(540)
Balance at end of the period	$	100,760	$	104,873

The Company has legally transferred and de-recognized certain of its receivables on a non-recourse basis to financial institutions for cash. At October 3, 2026 and June 27, 2026, the Company had $2.48 billion and $1.98 billion, respectively, of transferred and de-recognized receivables that were not yet settled.

Inventories

The Company’s inventories are primarily comprised of electronic components purchased from the Company’s suppliers, which are available for sale to customers in the normal course of the Company’s electronic component distribution business.

Classified within inventories are electronic components held for supply chain service engagements (components) where the Company is acting as an agent on behalf of a customer or in some cases the component supplier. Given that these supply chain services involve purchasing, warehousing and providing logistics services for components as part of the services, the Company classifies the underlying components within inventories on the consolidated balance sheets. Components held for supply chain services where the Company is acting as an agent represented approximately 11.5% and 7.0% of inventories as of October 3, 2026, and June 27, 2026, respectively.