QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 11-1806155 | ||||||||||||||||
(State or other jurisdiction of | (I.R.S. Employer | ||||||||||||||||
incorporation or organization) | Identification Number) | ||||||||||||||||
9201 East Dry Creek Road | 80112 | ||||||||||||||||
Centennial | CO | (Zip Code) | |||||||||||||||
(Address of principal executive offices) |
(303) | 824-4000 |
Title of each class | Trading Symbol(s) | Name of the exchange on which registered | ||||||||||||
Common Stock, $1 par value | ARW | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | |||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | |||||||||||
Emerging growth company | ☐ |
Quarter Ended | Nine Months Ended | Quarter Ended | ||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | April 1, 2023 | April 2, 2022 | |||||||||||||||||||||||||||||||||||||
Sales | $ | 6,953,740 | $ | 5,936,092 | $ | 19,178,638 | $ | 17,382,370 | Sales | $ | 8,736,428 | $ | 9,074,125 | |||||||||||||||||||||||||||||
Cost of sales | 6,110,382 | 5,162,930 | 16,751,427 | 15,061,519 | Cost of sales | 7,622,606 | 7,866,621 | |||||||||||||||||||||||||||||||||||
Gross profit | 843,358 | 773,162 | 2,427,211 | 2,320,851 | Gross profit | 1,113,822 | 1,207,504 | |||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | |||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative expenses | 552,896 | 510,017 | 1,600,762 | 1,534,534 | Selling, general, and administrative expenses | 642,431 | 643,925 | |||||||||||||||||||||||||||||||||||
Depreciation and amortization | 38,574 | 40,194 | 113,096 | 121,516 | Depreciation and amortization | 46,679 | 48,305 | |||||||||||||||||||||||||||||||||||
Restructuring, integration, and other charges | 15,896 | 24,267 | 55,817 | 61,161 | Restructuring, integration, and other charges | 2,560 | 4,898 | |||||||||||||||||||||||||||||||||||
607,366 | 574,478 | 1,769,675 | 1,717,211 | 691,670 | 697,128 | |||||||||||||||||||||||||||||||||||||
Operating income | 235,992 | 198,684 | 657,536 | 603,640 | Operating income | 422,152 | 510,376 | |||||||||||||||||||||||||||||||||||
Equity in earnings of affiliated companies | 1,216 | 1,311 | 2,865 | 5,394 | ||||||||||||||||||||||||||||||||||||||
Loss on investment, net | 15,000 | — | 14,250 | — | ||||||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 786 | — | 59,545 | — | ||||||||||||||||||||||||||||||||||||||
Equity in earnings (losses) of affiliated companies | Equity in earnings (losses) of affiliated companies | (80) | 843 | |||||||||||||||||||||||||||||||||||||||
Gain on investments, net | Gain on investments, net | 10,311 | 2,011 | |||||||||||||||||||||||||||||||||||||||
Employee benefit plan expense, net | Employee benefit plan expense, net | (853) | (889) | |||||||||||||||||||||||||||||||||||||||
Interest and other financing expense, net | 39,748 | 37,229 | 120,179 | 111,828 | Interest and other financing expense, net | (79,658) | (33,985) | |||||||||||||||||||||||||||||||||||
Income before income taxes | 181,674 | 162,766 | 466,427 | 497,206 | Income before income taxes | 351,872 | 478,356 | |||||||||||||||||||||||||||||||||||
Provision for income taxes | 46,199 | 44,931 | 114,998 | 137,441 | Provision for income taxes | 76,547 | 112,360 | |||||||||||||||||||||||||||||||||||
Consolidated net income | 135,475 | 117,835 | 351,429 | 359,765 | Consolidated net income | 275,325 | 365,996 | |||||||||||||||||||||||||||||||||||
Noncontrolling interests | 845 | 108 | 3,352 | 1,533 | Noncontrolling interests | 1,575 | 1,247 | |||||||||||||||||||||||||||||||||||
Net income attributable to shareholders | $ | 134,630 | $ | 117,727 | $ | 348,077 | $ | 358,232 | Net income attributable to shareholders | $ | 273,750 | $ | 364,749 | |||||||||||||||||||||||||||||
Net income per share: | Net income per share: | |||||||||||||||||||||||||||||||||||||||||
Basic | $ | 1.52 | $ | 1.29 | $ | 3.92 | $ | 3.92 | Basic | $ | 4.66 | $ | 5.38 | |||||||||||||||||||||||||||||
Diluted | $ | 1.50 | $ | 1.28 | $ | 3.87 | $ | 3.87 | Diluted | $ | 4.60 | $ | 5.31 | |||||||||||||||||||||||||||||
Weighted-average shares outstanding: | Weighted-average shares outstanding: | |||||||||||||||||||||||||||||||||||||||||
Basic | 88,453 | 90,937 | 88,870 | 91,412 | Basic | 58,731 | 67,840 | |||||||||||||||||||||||||||||||||||
Diluted | 89,540 | 91,938 | 89,936 | 92,487 | Diluted | 59,479 | 68,749 |
Quarter Ended | Nine Months Ended | ||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||
Consolidated net income | $ | 135,475 | $ | 117,835 | $ | 351,429 | $ | 359,765 | |||||||
Other comprehensive income: | |||||||||||||||
Foreign currency translation adjustment and other | 54,951 | 16,336 | 225,431 | 38,005 | |||||||||||
Unrealized gain (loss) on investment securities, net | 1,357 | 1,273 | 4,639 | (2,408 | ) | ||||||||||
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net | (2,093 | ) | 94 | (2,543 | ) | 278 | |||||||||
Employee benefit plan items, net | 492 | 814 | 1,403 | 5,578 | |||||||||||
Other comprehensive income | 54,707 | 18,517 | 228,930 | 41,453 | |||||||||||
Comprehensive income | 190,182 | 136,352 | 580,359 | 401,218 | |||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 2,049 | 576 | 7,743 | 2,791 | |||||||||||
Comprehensive income attributable to shareholders | $ | 188,133 | $ | 135,776 | $ | 572,616 | $ | 398,427 |
Quarter Ended | ||||||||||||||||||||||||||
April 1, 2023 | April 2, 2022 | |||||||||||||||||||||||||
Consolidated net income | $ | 275,325 | $ | 365,996 | ||||||||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||||||
Foreign currency translation adjustment and other, net of taxes | 11,285 | (49,910) | ||||||||||||||||||||||||
Unrealized loss on foreign exchange contracts designated as net investment hedges, net of taxes | (433) | (575) | ||||||||||||||||||||||||
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net of taxes | (3,709) | 8,205 | ||||||||||||||||||||||||
Employee benefit plan items, net of taxes | (272) | 99 | ||||||||||||||||||||||||
Other comprehensive income (loss) | 6,871 | (42,181) | ||||||||||||||||||||||||
Comprehensive income | 282,196 | 323,815 | ||||||||||||||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | 4,652 | 378 | ||||||||||||||||||||||||
Comprehensive income attributable to shareholders | $ | 277,544 | $ | 323,437 |
September 30, 2017 | December 31, 2016 | |||||||||||||||||||||
(Unaudited) | April 1, 2023 | December 31, 2022 | ||||||||||||||||||||
ASSETS | ASSETS | |||||||||||||||||||||
Current assets: | Current assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 584,339 | $ | 534,320 | Cash and cash equivalents | $ | 205,554 | $ | 176,915 | |||||||||||||
Accounts receivable, net | 7,070,629 | 6,746,687 | Accounts receivable, net | 10,655,863 | 12,322,717 | |||||||||||||||||
Inventories | 3,168,769 | 2,855,645 | Inventories | 5,525,782 | 5,319,369 | |||||||||||||||||
Other current assets | 215,431 | 180,069 | Other current assets | 479,650 | 521,339 | |||||||||||||||||
Total current assets | 11,039,168 | 10,316,721 | Total current assets | 16,866,849 | 18,340,340 | |||||||||||||||||
Property, plant, and equipment, at cost: | Property, plant, and equipment, at cost: | |||||||||||||||||||||
Land | 12,852 | 23,456 | Land | 5,691 | 5,691 | |||||||||||||||||
Buildings and improvements | 158,865 | 175,141 | Buildings and improvements | 185,790 | 184,211 | |||||||||||||||||
Machinery and equipment | 1,306,891 | 1,297,657 | Machinery and equipment | 1,602,073 | 1,583,661 | |||||||||||||||||
1,478,608 | 1,496,254 | 1,793,554 | 1,773,563 | |||||||||||||||||||
Less: Accumulated depreciation and amortization | (663,229 | ) | (739,955 | ) | Less: Accumulated depreciation and amortization | (1,214,103) | (1,177,107) | |||||||||||||||
Property, plant, and equipment, net | 815,379 | 756,299 | Property, plant, and equipment, net | 579,451 | 596,456 | |||||||||||||||||
Investments in affiliated companies | 86,626 | 88,401 | Investments in affiliated companies | 59,682 | 65,112 | |||||||||||||||||
Intangible assets, net | 307,385 | 336,882 | Intangible assets, net | 151,221 | 159,137 | |||||||||||||||||
Goodwill | 2,470,576 | 2,392,220 | Goodwill | 2,036,077 | 2,027,626 | |||||||||||||||||
Other assets | 337,832 | 315,843 | Other assets | 583,252 | 574,511 | |||||||||||||||||
Total assets | $ | 15,056,966 | $ | 14,206,366 | Total assets | $ | 20,276,532 | $ | 21,763,182 | |||||||||||||
LIABILITIES AND EQUITY | LIABILITIES AND EQUITY | |||||||||||||||||||||
Current liabilities: | Current liabilities: | |||||||||||||||||||||
Accounts payable | $ | 5,799,723 | $ | 5,774,151 | Accounts payable | $ | 8,976,296 | $ | 10,460,419 | |||||||||||||
Accrued expenses | 799,066 | 821,244 | Accrued expenses | 1,269,536 | 1,339,302 | |||||||||||||||||
Short-term borrowings, including current portion of long-term debt | 380,208 | 93,827 | Short-term borrowings, including current portion of long-term debt | 144,264 | 589,883 | |||||||||||||||||
Total current liabilities | 6,978,997 | 6,689,222 | Total current liabilities | 10,390,096 | 12,389,604 | |||||||||||||||||
Long-term debt | 2,802,960 | 2,696,334 | Long-term debt | 3,719,056 | 3,182,964 | |||||||||||||||||
Other liabilities | 349,717 | 355,190 | Other liabilities | 567,200 | 579,261 | |||||||||||||||||
Commitments and contingencies (Note L) | ||||||||||||||||||||||
Equity: | Equity: | |||||||||||||||||||||
Shareholders' equity: | ||||||||||||||||||||||
Shareholders’ equity: | Shareholders’ equity: | |||||||||||||||||||||
Common stock, par value $1: | Common stock, par value $1: | |||||||||||||||||||||
Authorized - 160,000 shares in both 2017 and 2016 | ||||||||||||||||||||||
Issued - 125,424 shares in both 2017 and 2016 | 125,424 | 125,424 | ||||||||||||||||||||
Authorized - 160,000 shares in both 2023 and 2022 | Authorized - 160,000 shares in both 2023 and 2022 | |||||||||||||||||||||
Issued - 125,424 shares in both 2023 and 2022 | Issued - 125,424 shares in both 2023 and 2022 | 125,424 | 125,424 | |||||||||||||||||||
Capital in excess of par value | 1,107,125 | 1,112,114 | Capital in excess of par value | 1,203,134 | 1,208,708 | |||||||||||||||||
Treasury stock (37,463 and 36,511 shares in 2017 and 2016, respectively), at cost | (1,739,473 | ) | (1,637,476 | ) | ||||||||||||||||||
Treasury stock (68,426 and 66,175 shares in 2023 and 2022, respectively), at cost | Treasury stock (68,426 and 66,175 shares in 2023 and 2022, respectively), at cost | (4,925,140) | (4,637,345) | |||||||||||||||||||
Retained earnings | 5,545,307 | 5,197,230 | Retained earnings | 9,488,582 | 9,214,832 | |||||||||||||||||
Accumulated other comprehensive loss | (159,315 | ) | (383,854 | ) | Accumulated other comprehensive loss | (361,468) | (365,262) | |||||||||||||||
Total shareholders' equity | 4,879,068 | 4,413,438 | ||||||||||||||||||||
Total shareholders’ equity | Total shareholders’ equity | 5,530,532 | 5,546,357 | |||||||||||||||||||
Noncontrolling interests | 46,224 | 52,182 | Noncontrolling interests | 69,648 | 64,996 | |||||||||||||||||
Total equity | 4,925,292 | 4,465,620 | Total equity | 5,600,180 | 5,611,353 | |||||||||||||||||
Total liabilities and equity | $ | 15,056,966 | $ | 14,206,366 | Total liabilities and equity | $ | 20,276,532 | $ | 21,763,182 |
Quarter Ended | ||||||||||||||
April 1, 2023 | April 2, 2022 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||
Consolidated net income | $ | 275,325 | $ | 365,996 | ||||||||||
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | ||||||||||||||
Depreciation and amortization | 46,679 | 48,305 | ||||||||||||
Amortization of stock-based compensation | 19,497 | 17,351 | ||||||||||||
Equity in (earnings) losses of affiliated companies | 80 | (843) | ||||||||||||
Deferred income taxes | (7,530) | 1,352 | ||||||||||||
Gain on investments, net | (10,311) | (2,011) | ||||||||||||
Other | 1,321 | 686 | ||||||||||||
Change in assets and liabilities: | ||||||||||||||
Accounts receivable, net | 1,701,889 | 430,710 | ||||||||||||
Inventories | (199,521) | (460,902) | ||||||||||||
Accounts payable | (1,504,701) | (477,825) | ||||||||||||
Accrued expenses | (132,316) | (43,641) | ||||||||||||
Other assets and liabilities | 33,392 | (79,426) | ||||||||||||
Net cash provided by (used for) operating activities | 223,804 | (200,248) | ||||||||||||
Cash flows from investing activities: | ||||||||||||||
Acquisition of property, plant, and equipment | (20,114) | (19,270) | ||||||||||||
Proceeds from collections of notes receivable | 142 | 20,169 | ||||||||||||
Proceeds from settlement of net investment hedge | 10,725 | — | ||||||||||||
Net cash provided by (used for) investing activities | (9,247) | 899 | ||||||||||||
Cash flows from financing activities: | ||||||||||||||
Change in short-term and other borrowings | (146,050) | (14,293) | ||||||||||||
Proceeds from long-term bank borrowings, net | 34,360 | 845,000 | ||||||||||||
Net proceeds from note offering | 498,600 | — | ||||||||||||
Redemption of notes | (300,000) | (350,000) | ||||||||||||
Proceeds from exercise of stock options | 5,934 | 11,302 | ||||||||||||
Repurchases of common stock | (303,801) | (264,431) | ||||||||||||
Net cash provided by (used for) financing activities | (210,957) | 227,578 | ||||||||||||
Effect of exchange rate changes on cash | 25,039 | (7,632) | ||||||||||||
Net increase in cash and cash equivalents | 28,639 | 20,597 | ||||||||||||
Cash and cash equivalents at beginning of period | 176,915 | 222,194 | ||||||||||||
Cash and cash equivalents at end of period | $ | 205,554 | $ | 242,791 |
Nine Months Ended | ||||||||
September 30, 2017 | October 1, 2016 | |||||||
Cash flows from operating activities: | ||||||||
Consolidated net income | $ | 351,429 | $ | 359,765 | ||||
Adjustments to reconcile consolidated net income to net cash provided by operations: | ||||||||
Depreciation and amortization | 113,096 | 121,516 | ||||||
Amortization of stock-based compensation | 30,301 | 29,783 | ||||||
Equity in earnings of affiliated companies | (2,865 | ) | (5,394 | ) | ||||
Loss on extinguishment of debt | 59,545 | — | ||||||
Deferred income taxes | 13,262 | 30,191 | ||||||
Loss on investments, net | 14,250 | — | ||||||
Other | 7,415 | 4,464 | ||||||
Change in assets and liabilities, net of effects of acquired businesses: | ||||||||
Accounts receivable | (59,084 | ) | 335,455 | |||||
Inventories | (255,820 | ) | (117,674 | ) | ||||
Accounts payable | (113,804 | ) | (513,365 | ) | ||||
Accrued expenses | (41,810 | ) | (102,915 | ) | ||||
Other assets and liabilities | (114,136 | ) | (1,121 | ) | ||||
Net cash provided by operating activities | 1,779 | 140,705 | ||||||
Cash flows from investing activities: | ||||||||
Cash consideration paid for acquired businesses | (3,628 | ) | (68,946 | ) | ||||
Acquisition of property, plant, and equipment | (149,597 | ) | (126,341 | ) | ||||
Proceeds from sale of property, plant, and equipment | 24,433 | — | ||||||
Other | (2,467 | ) | (12,000 | ) | ||||
Net cash used for investing activities | (131,259 | ) | (207,287 | ) | ||||
Cash flows from financing activities: | ||||||||
Change in short-term and other borrowings | (14,423 | ) | 31,941 | |||||
Proceeds from (repayments of) long-term bank borrowings, net | (82,766 | ) | 320,000 | |||||
Proceeds from note offerings, net | 987,144 | — | ||||||
Redemption of notes | (555,886 | ) | — | |||||
Proceeds from exercise of stock options | 21,423 | 16,686 | ||||||
Repurchases of common stock | (149,125 | ) | (167,178 | ) | ||||
Purchase of shares from noncontrolling interest | (23,350 | ) | — | |||||
Other | (1,620 | ) | (3,000 | ) | ||||
Net cash provided by financing activities | 181,397 | 198,449 | ||||||
Effect of exchange rate changes on cash | (1,898 | ) | (20,542 | ) | ||||
Net increase in cash and cash equivalents | 50,019 | 111,325 | ||||||
Cash and cash equivalents at beginning of period | 534,320 | 273,090 | ||||||
Cash and cash equivalents at end of period | $ | 584,339 | $ | 384,415 |
Common Stock at Par Value | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2022 | $ | 125,424 | $ | 1,208,708 | $ | (4,637,345) | $ | 9,214,832 | $ | (365,262) | $ | 64,996 | $ | 5,611,353 | |||||||||||||||||||||||||||
Consolidated net income | — | — | — | 273,750 | — | 1,575 | 275,325 | ||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 3,794 | 3,077 | 6,871 | ||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | 19,497 | — | — | — | — | 19,497 | ||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation awards | — | (25,071) | 31,005 | — | — | — | 5,934 | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | (318,800) | — | — | — | (318,800) | ||||||||||||||||||||||||||||||||||
Balance at April 1, 2023 | $ | 125,424 | $ | 1,203,134 | $ | (4,925,140) | $ | 9,488,582 | $ | (361,468) | $ | 69,648 | $ | 5,600,180 | |||||||||||||||||||||||||||
Common Stock at Par Value | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||
Balance at December 31, 2021 | $ | 125,424 | $ | 1,189,845 | $ | (3,629,265) | $ | 7,787,948 | $ | (191,657) | $ | 58,551 | $ | 5,340,846 | |||||||||||||||||||||||||||
Consolidated net income | — | — | — | 364,749 | — | 1,247 | 365,996 | ||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (41,312) | (869) | (42,181) | ||||||||||||||||||||||||||||||||||
Amortization of stock-based compensation | — | 17,351 | — | — | — | — | 17,351 | ||||||||||||||||||||||||||||||||||
Shares issued for stock-based compensation awards | — | (20,601) | 31,903 | — | — | — | 11,302 | ||||||||||||||||||||||||||||||||||
Repurchases of common stock | — | — | (264,431) | — | — | — | (264,431) | ||||||||||||||||||||||||||||||||||
Balance at April 2, 2022 | $ | 125,424 | $ | 1,186,595 | $ | (3,861,793) | $ | 8,152,697 | $ | (232,969) | $ | 58,929 | $ | 5,428,883 | |||||||||||||||||||||||||||
Global Components | Global ECS | Total | ||||||||||
Balance as of December 31, 2016 (a) | $ | 1,239,741 | $ | 1,152,479 | $ | 2,392,220 | ||||||
Acquisitions and related adjustments | (102 | ) | 6,251 | 6,149 | ||||||||
Foreign currency translation adjustment | 17,451 | 54,756 | 72,207 | |||||||||
Balance as of September 30, 2017 (a) | $ | 1,257,090 | $ | 1,213,486 | $ | 2,470,576 |
(thousands) | Global Components | Global ECS | Total | |||||||||||||||||
Balance as of December 31, 2022 (a) | $ | 873,003 | $ | 1,154,623 | $ | 2,027,626 | ||||||||||||||
Foreign currency translation adjustment | 1,047 | 7,404 | 8,451 | |||||||||||||||||
Balance as of April 1, 2023 (a) | $ | 874,050 | $ | 1,162,027 | $ | 2,036,077 |
(thousands) | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||||||
Customer relationships | $ | 268,389 | $ | (150,254) | $ | 118,135 | ||||||||||||||||||||
Amortizable trade name | 74,027 | (40,941) | 33,086 | |||||||||||||||||||||||
$ | 342,416 | $ | (191,195) | $ | 151,221 |
Weighted-Average Life | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||
Non-amortizable trade names | indefinite | $ | 101,000 | $ | — | $ | 101,000 | |||||||
Customer relationships | 10 years | 476,656 | (274,847 | ) | 201,809 | |||||||||
Developed technology | 5 years | 6,340 | (2,973 | ) | 3,367 | |||||||||
Amortizable trade name | 5 years | 2,409 | (1,200 | ) | 1,209 | |||||||||
$ | 586,405 | $ | (279,020 | ) | $ | 307,385 |
Weighted-Average Life | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||
Non-amortizable trade names | indefinite | $ | 101,000 | $ | — | $ | 101,000 | |||||||
Customer relationships | 10 years | 476,176 | (247,206 | ) | 228,970 | |||||||||
Developed technology | 5 years | 9,140 | (4,435 | ) | 4,705 | |||||||||
Other intangible assets | (b) | 6,721 | (4,514 | ) | 2,207 | |||||||||
$ | 593,037 | $ | (256,155 | ) | $ | 336,882 |
(thousands) | Gross Carrying Amount | Accumulated Amortization | Net | |||||||||||||||||||||||
Customer relationships | $ | 268,180 | $ | (144,655) | $ | 123,525 | ||||||||||||||||||||
Amortizable trade name | 74,011 | (38,399) | 35,612 | |||||||||||||||||||||||
$ | 342,191 | $ | (183,054) | $ | 159,137 |
(thousands) | April 1, 2023 | December 31, 2022 | |||||||||
Marubun/Arrow | $ | 48,810 | $ | 54,292 | |||||||
Other | 10,872 | 10,820 | |||||||||
$ | 59,682 | $ | 65,112 |
September 30, 2017 | December 31, 2016 | |||||||
Marubun/Arrow | $ | 68,179 | $ | 65,237 | ||||
Other | 18,447 | 23,164 | ||||||
$ | 86,626 | $ | 88,401 |
Quarter Ended | |||||||||||||||||||||||
(thousands) | April 1, 2023 | April 2, 2022 | |||||||||||||||||||||
Marubun/Arrow | $ | (397) | $ | 794 | |||||||||||||||||||
Other | 317 | 49 | |||||||||||||||||||||
$ | (80) | $ | 843 |
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
Marubun/Arrow | $ | 1,886 | $ | 1,549 | $ | 5,168 | $ | 5,059 | ||||||||
Other | (670 | ) | (238 | ) | (2,303 | ) | 335 | |||||||||
$ | 1,216 | $ | 1,311 | $ | 2,865 | $ | 5,394 |
(thousands) | April 1, 2023 | December 31, 2022 | |||||||||
Accounts receivable | $ | 10,759,556 | $ | 12,416,114 | |||||||
Allowances for doubtful accounts | (103,693) | (93,397) | |||||||||
Accounts receivable, net | $ | 10,655,863 | $ | 12,322,717 |
Quarter Ended | |||||||||||
(thousands) | April 1, 2023 | April 2, 2022 | |||||||||
Balance at beginning of period | $ | 93,397 | $ | 75,901 | |||||||
Charged to income | 14,991 | 13,768 | |||||||||
Translation adjustments | 388 | 190 | |||||||||
Writeoffs | (5,083) | (2,676) | |||||||||
Balance at end of period | $ | 103,693 | $ | 87,183 |
September 30, 2017 | December 31, 2016 | |||||||
Accounts receivable | $ | 7,124,677 | $ | 6,798,943 | ||||
Allowances for doubtful accounts | (54,048 | ) | (52,256 | ) | ||||
Accounts receivable, net | $ | 7,070,629 | $ | 6,746,687 |
Quarter Ended | |||||||||||||||||||||||
(thousands) | April 1, 2023 | April 2, 2022 | |||||||||||||||||||||
EMEA asset securitization, sales of accounts receivable | $ | 817,833 | $ | 569,216 |
(thousands) | April 1, 2023 | December 31, 2022 | ||||||||||||
Receivables sold to unaffiliated financial institutions that were uncollected | $ | 644,539 | $ | 628,930 | ||||||||||
Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. | 1,028,748 | 932,243 |
(thousands) | April 1, 2023 | December 31, 2022 | ||||||||||||
4.50% notes, due March 2023 | $ | — | $ | 299,895 | ||||||||||
Uncommitted lines of credit | — | 78,000 | ||||||||||||
Commercial paper | 119,980 | 173,407 | ||||||||||||
Other short-term borrowings | 24,284 | 38,581 | ||||||||||||
$ | 144,264 | $ | 589,883 |
September 30, 2017 | December 31, 2016 | |||||||
3.00% notes, due 2018 | $ | 299,643 | $ | — | ||||
Other short-term borrowings | 80,565 | 93,827 | ||||||
$ | 380,208 | $ | 93,827 |
September 30, 2017 | December 31, 2016 | |||||||
Revolving credit facility | $ | 96,200 | $ | — | ||||
Asset securitization program | 255,000 | 460,000 | ||||||
6.875% senior debentures, due 2018 | — | 199,348 | ||||||
3.00% notes, due 2018 | — | 299,013 | ||||||
6.00% notes, due 2020 | 208,928 | 299,183 | ||||||
5.125% notes, due 2021 | 130,364 | 248,843 | ||||||
3.50% notes, due 2022 | 346,330 | 345,776 | ||||||
4.50% notes, due 2023 | 297,001 | 296,646 | ||||||
3.25% notes, due 2024 | 492,846 | — | ||||||
4.00% notes, due 2025 | 345,040 | 344,625 | ||||||
7.50% senior debentures, due 2027 | 109,673 | 198,514 | ||||||
3.875% notes, due 2028 | 493,449 | — | ||||||
Interest rate swaps designated as fair value hedges | 180 | 152 | ||||||
Other obligations with various interest rates and due dates | 27,949 | 4,234 | ||||||
$ | 2,802,960 | $ | 2,696,334 |
(thousands) | April 1, 2023 | December 31, 2022 | ||||||||||||
Revolving credit facility | $ | 15,000 | $ | — | ||||||||||
North American asset securitization program | 1,255,000 | 1,235,000 | ||||||||||||
3.25% notes, due 2024 | 498,394 | 498,122 | ||||||||||||
4.00% notes, due 2025 | 348,521 | 348,344 | ||||||||||||
6.125% notes, due 2026 | 496,916 | — | ||||||||||||
7.50% senior debentures, due 2027 | 110,123 | 110,103 | ||||||||||||
3.875% notes, due 2028 | 496,608 | 496,448 | ||||||||||||
2.95% notes, due 2032 | 497,196 | 494,522 | ||||||||||||
Other obligations with various interest rates and due dates | 1,298 | 425 | ||||||||||||
$ | 3,719,056 | $ | 3,182,964 |
(thousands) | April 1, 2023 | December 31, 2022 | ||||||||||||
3.25% notes, due 2024 | $ | 486,500 | $ | 481,500 | ||||||||||
4.00% notes, due 2025 | 340,000 | 338,000 | ||||||||||||
6.125% notes, due 2026 | 501,500 | — | ||||||||||||
7.50% senior debentures, due 2027 | 118,500 | 116,500 | ||||||||||||
3.875% notes, due 2028 | 475,500 | 456,000 | ||||||||||||
2.95% notes, due 2032 | 420,500 | 395,500 |
September 30, 2017 | December 31, 2016 | |||||||
6.875% senior debentures, due 2018 | $ | — | $ | 212,500 | ||||
3.00% notes, due 2018 | 301,500 | 303,500 | ||||||
6.00% notes, due 2020 | 226,500 | 325,500 | ||||||
5.125% notes, due 2021 | 140,500 | 265,500 | ||||||
3.50% notes, due 2022 | 358,000 | 349,500 | ||||||
4.50% notes, due 2023 | 318,500 | 305,500 | ||||||
3.25% notes, due 2024 | 494,000 | — | ||||||
4.00% notes, due 2025 | 357,500 | 345,000 | ||||||
7.50% senior debentures, due 2027 | 136,500 | 238,000 | ||||||
3.875% notes, due 2028 | 499,000 | — |
(thousands) | Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
Cash equivalents (a) | Cash and cash equivalents | $ | 7,951 | $ | — | $ | — | $ | 7,951 | |||||||||||||||||||||||
Equity investments (b) | Other assets | 56,031 | — | — | 56,031 | |||||||||||||||||||||||||||
Interest rate swaps designated as cash flow hedges | Other assets | — | 50,225 | — | 50,225 | |||||||||||||||||||||||||||
Interest rate swap designated as fair value hedge | Other assets | — | 2,742 | — | 2,742 | |||||||||||||||||||||||||||
Foreign exchange contracts designated as net investment hedges | Other assets | — | 51,716 | — | 51,716 | |||||||||||||||||||||||||||
$ | 63,982 | $ | 104,683 | $ | — | $ | 168,665 |
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash equivalents | Other assets | $ | 854 | $ | — | $ | — | $ | 854 | |||||||||
Available-for-sale securities | Other assets | 45,112 | — | — | 45,112 | |||||||||||||
Interest rate swaps | Other assets | — | 180 | — | 180 | |||||||||||||
Foreign exchange contracts | Other current assets | — | 6,809 | — | 6,809 | |||||||||||||
Foreign exchange contracts | Accrued expenses | — | (6,733 | ) | — | (6,733 | ) | |||||||||||
Contingent consideration | Accrued expenses | — | — | (3,100 | ) | (3,100 | ) | |||||||||||
$ | 45,966 | $ | 256 | $ | (3,100 | ) | $ | 43,122 |
(thousands) | Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||
Cash equivalents (a) | Cash and cash equivalents/ other assets | $ | 6,596 | $ | — | $ | — | $ | 6,596 | |||||||||||||||||||||||
Equity investments (b) | Other assets | 50,614 | — | — | 50,614 | |||||||||||||||||||||||||||
Interest rate swaps designated as cash flow hedges | Other assets | — | 55,942 | — | 55,942 | |||||||||||||||||||||||||||
Foreign exchange contracts designated as net investment hedges | Other assets /other current assets | — | 60,962 | — | 60,962 | |||||||||||||||||||||||||||
$ | 57,210 | $ | 116,904 | $ | — | $ | 174,114 |
Balance Sheet Location | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash equivalents | Other assets | $ | 2,660 | $ | — | $ | — | $ | 2,660 | |||||||||
Available-for-sale securities | Other assets | 37,915 | — | — | 37,915 | |||||||||||||
Interest rate swaps | Other assets | — | 152 | — | 152 | |||||||||||||
Foreign exchange contracts | Other current assets | — | 4,685 | — | 4,685 | |||||||||||||
Foreign exchange contracts | Accrued expenses | — | (3,444 | ) | — | (3,444 | ) | |||||||||||
Contingent consideration | Accrued expenses / Other liabilities | — | — | (4,027 | ) | (4,027 | ) | |||||||||||
$ | 40,575 | $ | 1,393 | $ | (4,027 | ) | $ | 37,941 |
September 30, 2017 | December 31, 2016 | |||||||||||||||
Marubun | Mutual Funds | Marubun | Mutual Funds | |||||||||||||
Cost basis | $ | 10,016 | $ | 17,743 | $ | 10,016 | $ | 18,097 | ||||||||
Unrealized holding gain | 7,763 | 9,590 | 3,806 | 5,996 | ||||||||||||
Fair value | $ | 17,779 | $ | 27,333 | $ | 13,822 | $ | 24,093 |
Trade Date | Maturity Date | Notional Amount (thousands) | Weighted-Average Interest Rate | Date Range of Forecasted Transaction | ||||||||||||||||||||||
April 2020 | December 2024 | $300,000 | 0.97% | Jan 2023 - Dec 2025 | ||||||||||||||||||||||
Trade Date | Maturity Date | Notional Amount (thousands) | Interest Rate due from Counterparty | Interest Rate due to Counterparty | ||||||||||||||||||||||
February 2023 | March 2026 | $500,000 | 6.125% | SOFR + 0.508% | ||||||||||||||||||||||
Maturity Date | Notional Amount | Interest rate due from counterparty | Interest rate due to counterparty | |||
April 2020 | 50,000 | 6.000% | 6 mo. USD LIBOR + 3.896% |
Notional Amount (thousands) | ||||||||||||||
Maturity Date | April 1, 2023 | December 31, 2022 | ||||||||||||
March 2023 | EUR | — | EUR | 50,000 | ||||||||||
September 2024 | EUR | 50,000 | EUR | 50,000 | ||||||||||
April 2025 | EUR | 100,000 | EUR | 100,000 | ||||||||||
January 2028 | EUR | 100,000 | EUR | 100,000 | ||||||||||
Total | EUR | 250,000 | EUR | 300,000 |
Income Statement Line | Quarter Ended | |||||||||||||||||||||||||||||||
(thousands) | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||||||||||
Gain (Loss) Recognized in Income | ||||||||||||||||||||||||||||||||
Foreign exchange contracts, net investment hedge (a) | Interest Expense | $ | 2,048 | $ | 2,201 | |||||||||||||||||||||||||||
Interest rate swaps, cash flow hedge | Interest Expense | (839) | (868) | |||||||||||||||||||||||||||||
Interest rate swap, fair value hedge (b) | Interest Expense | 2,742 | — | |||||||||||||||||||||||||||||
Total | $ | 3,951 | $ | 1,333 | ||||||||||||||||||||||||||||
Gain (Loss) Recognized in Other Comprehensive Income before reclassifications, net of tax | ||||||||||||||||||||||||||||||||
Foreign exchange contracts, net investment hedge (c) | $ | 1,125 | $ | 1,094 | ||||||||||||||||||||||||||||
Interest rate swaps, cash flow hedge | (4,347) | 7,547 | ||||||||||||||||||||||||||||||
Total | $ | (3,222) | $ | 8,641 |
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
Loss Recognized in Consolidated Net Income | ||||||||||||||||
Foreign exchange contracts | $ | (4,283 | ) | $ | (2,394 | ) | $ | (15,445 | ) | $ | (1,873 | ) | ||||
Interest rate swaps | (210 | ) | (153 | ) | (532 | ) | (452 | ) | ||||||||
Total | $ | (4,493 | ) | $ | (2,547 | ) | $ | (15,977 | ) | $ | (2,325 | ) | ||||
Loss Recognized in Other Comprehensive Income before reclassifications | ||||||||||||||||
Foreign exchange contracts | $ | (374 | ) | $ | (55 | ) | $ | (1,241 | ) | $ | (588 | ) | ||||
Interest rate swaps | $ | (3,619 | ) | $ | — | $ | (4,672 | ) | $ | — |
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
Restructuring and integration charges - current period actions | $ | 12,050 | $ | 12,028 | $ | 34,296 | $ | 22,131 | ||||||||
Restructuring and integration charges (credits) - actions taken in prior periods | 250 | (487 | ) | 6,348 | 3,474 | |||||||||||
Other charges | 3,596 | 12,726 | 15,173 | 35,556 | ||||||||||||
$ | 15,896 | $ | 24,267 | $ | 55,817 | $ | 61,161 |
Personnel Costs | Facilities Costs | Other | Total | |||||||||||||
Restructuring and integration charges | $ | 29,030 | $ | 4,222 | $ | 1,044 | $ | 34,296 | ||||||||
Payments | (14,203 | ) | (2,575 | ) | (834 | ) | (17,612 | ) | ||||||||
Foreign currency translation | 868 | 83 | 20 | 971 | ||||||||||||
Balance as of September 30, 2017 | $ | 15,695 | $ | 1,730 | $ | 230 | $ | 17,655 |
Personnel Costs | Facilities Costs | Other | Total | |||||||||||||
Balance as of December 31, 2016 | $ | 11,694 | $ | 3,793 | $ | 316 | $ | 15,803 | ||||||||
Restructuring and integration charges (credits) | 6,422 | (472 | ) | (18 | ) | 5,932 | ||||||||||
Payments | (11,347 | ) | (2,688 | ) | (119 | ) | (14,154 | ) | ||||||||
Foreign currency translation | 436 | 187 | 31 | 654 | ||||||||||||
Balance as of September 30, 2017 | $ | 7,205 | $ | 820 | $ | 210 | $ | 8,235 |
Quarter Ended | ||||||||||||||||||||||||||
(thousands except per share data) | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||||
Net income attributable to shareholders | $ | 273,750 | $ | 364,749 | ||||||||||||||||||||||
Weighted-average shares outstanding - basic | 58,731 | 67,840 | ||||||||||||||||||||||||
Net effect of various dilutive stock-based compensation awards | 748 | 909 | ||||||||||||||||||||||||
Weighted-average shares outstanding - diluted | 59,479 | 68,749 | ||||||||||||||||||||||||
Net income per share: | ||||||||||||||||||||||||||
Basic | $ | 4.66 | $ | 5.38 | ||||||||||||||||||||||
Diluted (a) | $ | 4.60 | $ | 5.31 |
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
Net income attributable to shareholders | $ | 134,630 | $ | 117,727 | $ | 348,077 | $ | 358,232 | ||||||||
Weighted-average shares outstanding - basic | 88,453 | 90,937 | 88,870 | 91,412 | ||||||||||||
Net effect of various dilutive stock-based compensation awards | 1,087 | 1,001 | 1,066 | 1,075 | ||||||||||||
Weighted-average shares outstanding - diluted | 89,540 | 91,938 | 89,936 | 92,487 | ||||||||||||
Net income per share: | ||||||||||||||||
Basic | $ | 1.52 | $ | 1.29 | $ | 3.92 | $ | 3.92 | ||||||||
Diluted (a) | $ | 1.50 | $ | 1.28 | $ | 3.87 | $ | 3.87 |
Quarter Ended | ||||||||||||||||||||||||||||||||||||||||||
(thousands) | (thousands) | April 1, 2023 | April 2, 2022 | |||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustment and Other: | Foreign Currency Translation Adjustment and Other: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications (a) | Other comprehensive income (loss) before reclassifications (a) | $ | 8,008 | $ | (48,700) | |||||||||||||||||||||||||||||||||||||
Amounts reclassified into income | Amounts reclassified into income | 200 | (341) | |||||||||||||||||||||||||||||||||||||||
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income before reclassifications (b) | Other comprehensive income before reclassifications (b) | 1,125 | 1,094 | |||||||||||||||||||||||||||||||||||||||
Amounts reclassified into income | Amounts reclassified into income | (1,558) | (1,669) | |||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: | Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: | |||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications (b) | Other comprehensive income (loss) before reclassifications (b) | (4,347) | 7,547 | |||||||||||||||||||||||||||||||||||||||
Amounts reclassified into income | Amounts reclassified into income | 638 | 658 | |||||||||||||||||||||||||||||||||||||||
Employee Benefit Plan Items, Net: | Employee Benefit Plan Items, Net: | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified into income | Amounts reclassified into income | (272) | 99 | |||||||||||||||||||||||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | Net change in Accumulated other comprehensive income (loss) | $ | 3,794 | $ | (41,312) | |||||||||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation Adjustment and Other: | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications (a) | $ | 57,988 | $ | 15,822 | $ | 227,928 | $ | 35,610 | ||||||||||||||||||||||||||||||||||
Amounts reclassified into income | (4,241 | ) | 46 | (6,888 | ) | 1,137 | ||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investment Securities, Net: | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 1,357 | 1,273 | 4,639 | (2,408 | ) | |||||||||||||||||||||||||||||||||||||
Amounts reclassified into income | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss before reclassifications | (2,223 | ) | — | (2,870 | ) | — | ||||||||||||||||||||||||||||||||||||
Amounts reclassified into income | 130 | 94 | 327 | 278 | ||||||||||||||||||||||||||||||||||||||
Employee Benefit Plan Items, Net: | ||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | (51 | ) | 25 | (94 | ) | 97 | ||||||||||||||||||||||||||||||||||||
Amounts reclassified into income (loss) | 543 | 789 | 1,497 | 5,481 | ||||||||||||||||||||||||||||||||||||||
Net change in Accumulated other comprehensive income (loss) | $ | 53,503 | $ | 18,049 | $ | 224,539 | $ | 40,195 |
Month of Board Approval | Dollar Value Approved for Repurchase | Dollar Value of Shares Repurchased | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | |||||||||
September 2015 | $ | 400,000 | $ | 400,000 | $ | — | ||||||
December 2016 | 400,000 | 16,081 | 383,919 | |||||||||
Total | $ | 800,000 | $ | 416,081 | $ | 383,919 |
(thousands) | Common Stock Issued | Treasury Stock | Common Stock Outstanding | ||||||||||||||
Common stock outstanding at December 31, 2022 | 125,424 | 66,175 | 59,249 | ||||||||||||||
Shares issued for stock-based compensation awards | — | (313) | 313 | ||||||||||||||
Repurchases of common stock | — | 2,564 | (2,564) | ||||||||||||||
Common stock outstanding at April 1, 2023 | 125,424 | 68,426 | 56,998 |
(thousands) | Common Stock Issued | Treasury Stock | Common Stock Outstanding | ||||||||||||||
Common stock outstanding at December 31, 2021 | 125,424 | 57,358 | 68,066 | ||||||||||||||
Shares issued for stock-based compensation awards | — | (385) | 385 | ||||||||||||||
Repurchases of common stock | — | 2,015 | (2,015) | ||||||||||||||
Common stock outstanding at April 2, 2022 | 125,424 | 58,988 | 66,436 |
Share-Repurchase Details by Month of Board Approval (thousands) | Dollar Value Approved for Repurchase | Dollar Value of Shares Repurchased | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | |||||||||||||||||
July 2021 | $ | 600,000 | $ | 600,000 | $ | — | ||||||||||||||
December 2021 | 600,000 | 600,000 | — | |||||||||||||||||
September 2022 | 600,000 | 571,503 | 28,497 | |||||||||||||||||
January 2023 | 1,000,000 | — | 1,000,000 | |||||||||||||||||
Total | $ | 2,800,000 | $ | 1,771,503 | $ | 1,028,497 |
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
Sales: | ||||||||||||||||
Global components | $ | 4,864,361 | $ | 3,904,447 | $ | 13,385,514 | $ | 11,413,348 | ||||||||
Global ECS | 2,089,379 | 2,031,645 | 5,793,124 | 5,969,022 | ||||||||||||
Consolidated | $ | 6,953,740 | $ | 5,936,092 | $ | 19,178,638 | $ | 17,382,370 | ||||||||
Operating income (loss): | ||||||||||||||||
Global components | $ | 212,993 | $ | 175,507 | $ | 583,690 | $ | 524,662 | ||||||||
Global ECS | 94,797 | 96,181 | 282,379 | 283,792 | ||||||||||||
Corporate (a) | (71,798 | ) | (73,004 | ) | (208,533 | ) | (204,814 | ) | ||||||||
Consolidated | $ | 235,992 | $ | 198,684 | $ | 657,536 | $ | 603,640 |
September 30, 2017 | December 31, 2016 | |||||||
Global components | $ | 9,674,716 | $ | 8,360,926 | ||||
Global ECS | 4,590,887 | 5,053,172 | ||||||
Corporate | 791,363 | 792,268 | ||||||
Consolidated | $ | 15,056,966 | $ | 14,206,366 |
Quarter Ended | ||||||||||||||||||||||||||
(thousands) | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||||
Components: | ||||||||||||||||||||||||||
Americas | $ | 2,233,453 | $ | 2,340,543 | ||||||||||||||||||||||
EMEA | 2,246,145 | 1,927,003 | ||||||||||||||||||||||||
Asia/Pacific | 2,376,195 | 2,931,529 | ||||||||||||||||||||||||
Global components | $ | 6,855,793 | $ | 7,199,075 | ||||||||||||||||||||||
ECS: | ||||||||||||||||||||||||||
Americas | $ | 998,114 | $ | 1,047,849 | ||||||||||||||||||||||
EMEA | 882,521 | 827,201 | ||||||||||||||||||||||||
Global ECS | $ | 1,880,635 | $ | 1,875,050 | ||||||||||||||||||||||
Consolidated | $ | 8,736,428 | $ | 9,074,125 |
Quarter Ended | Nine Months Ended | |||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | |||||||||||||
Americas (b) | $ | 3,217,537 | $ | 2,897,810 | $ | 8,829,813 | $ | 8,327,845 | ||||||||
EMEA (c) | 1,886,440 | 1,548,067 | 5,406,330 | 4,990,973 | ||||||||||||
Asia/Pacific | 1,849,763 | 1,490,215 | 4,942,495 | 4,063,552 | ||||||||||||
Consolidated | $ | 6,953,740 | $ | 5,936,092 | $ | 19,178,638 | $ | 17,382,370 |
Quarter Ended | ||||||||||||||||||||||||||
(thousands) | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||||
Operating income (loss): | ||||||||||||||||||||||||||
Global components | $ | 417,539 | $ | 499,342 | ||||||||||||||||||||||
Global ECS | 81,099 | 85,798 | ||||||||||||||||||||||||
Corporate (a) | (76,486) | (74,764) | ||||||||||||||||||||||||
Consolidated | $ | 422,152 | $ | 510,376 |
September 30, 2017 | December 31, 2016 | |||||||
Americas (d) | $ | 671,668 | $ | 631,386 | ||||
EMEA | 104,028 | 90,834 | ||||||
Asia/Pacific | 39,683 | 34,079 | ||||||
Consolidated | $ | 815,379 | $ | 756,299 |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2017 | October 1, 2016 | % Change | September 30, 2017 | October 1, 2016 | % Change | ||||||||||||||||
Consolidated sales, as reported | $ | 6,954 | $ | 5,936 | 17.1 | % | $ | 19,179 | $ | 17,382 | 10.3 | % | |||||||||
Impact of changes in foreign currencies | — | 83 | — | (47 | ) | ||||||||||||||||
Impact of acquisitions | — | 1 | — | 48 | |||||||||||||||||
Consolidated sales, as adjusted | $ | 6,954 | $ | 6,020 | 15.5 | % | $ | 19,179 | $ | 17,383 | 10.3 | % | |||||||||
Global components sales, as reported | $ | 4,864 | $ | 3,904 | 24.6 | % | $ | 13,386 | $ | 11,413 | 17.3 | % | |||||||||
Impact of changes in foreign currencies | — | 56 | — | (13 | ) | ||||||||||||||||
Impact of acquisitions | — | 1 | — | 10 | |||||||||||||||||
Global components sales, as adjusted | $ | 4,864 | $ | 3,961 | 22.8 | % | $ | 13,386 | $ | 11,410 | 17.3 | % | |||||||||
Global ECS sales, as reported | $ | 2,089 | $ | 2,032 | 2.8 | % | $ | 5,793 | $ | 5,969 | (2.9 | )% | |||||||||
Impact of changes in foreign currencies | — | 27 | — | (34 | ) | ||||||||||||||||
Impact of acquisitions | — | — | — | 38 | |||||||||||||||||
Global ECS sales, as adjusted | $ | 2,089 | $ | 2,059 | 1.5 | % | $ | 5,793 | $ | 5,973 | (3.0 | )% |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(millions) | April 1, 2023 | April 2, 2022 | % Change | ||||||||||||||||||||||||||||||||
Consolidated sales, as reported | $ | 8,736 | $ | 9,074 | (3.7)% | ||||||||||||||||||||||||||||||
Impact of changes in foreign currencies | — | (203) | |||||||||||||||||||||||||||||||||
Consolidated sales, constant currency | $ | 8,736 | $ | 8,871 | (1.5)% | ||||||||||||||||||||||||||||||
Global components sales, as reported | $ | 6,856 | $ | 7,199 | (4.8)% | ||||||||||||||||||||||||||||||
Impact of changes in foreign currencies | — | (146) | |||||||||||||||||||||||||||||||||
Global components sales, constant currency | $ | 6,856 | $ | 7,053 | (2.8)% | ||||||||||||||||||||||||||||||
Global ECS sales, as reported | $ | 1,881 | $ | 1,875 | flat | ||||||||||||||||||||||||||||||
Impact of changes in foreign currencies | — | (57) | |||||||||||||||||||||||||||||||||
Global ECS sales, constant currency | $ | 1,881 | $ | 1,818 | 3.4% |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2017 | October 1, 2016 | % Change | September 30, 2017 | October 1, 2016 | % Change | ||||||||||||||||
Consolidated gross profit, as reported | $ | 843 | $ | 773 | 9.1 | % | $ | 2,427 | $ | 2,321 | 4.6 | % | |||||||||
Impact of changes in foreign currencies | — | 12 | — | (9 | ) | ||||||||||||||||
Impact of acquisitions | — | 1 | — | 13 | |||||||||||||||||
Consolidated gross profit, as adjusted | $ | 843 | $ | 786 | 7.3 | % | $ | 2,427 | $ | 2,325 | 4.4 | % | |||||||||
Consolidated gross profit as a percentage of sales, as reported | 12.1 | % | 13.0 | % | (90) bps | 12.7 | % | 13.4 | % | (70) bps | |||||||||||
Consolidated gross profit as a percentage of sales, as adjusted | 12.1 | % | 13.1 | % | (100) bps | 12.7 | % | 13.4 | % | (70) bps |
Quarter Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2017 | October 1, 2016 | % Change | September 30, 2017 | October 1, 2016 | % Change | ||||||||||||||||
Selling, general, and administrative expenses, as reported | $ | 553 | $ | 510 | 8.4 | % | $ | 1,601 | $ | 1,535 | 4.3 | % | |||||||||
Depreciation and amortization, as reported | 39 | 40 | (4.0 | )% | 113 | 122 | (6.9 | )% | |||||||||||||
Operating expenses, as reported* | 591 | 550 | 7.5 | % | 1,714 | 1,656 | 3.5 | % | |||||||||||||
Impact of changes in foreign currencies | — | 8 | — | (7 | ) | ||||||||||||||||
Impact of acquisitions | — | 1 | — | 9 | |||||||||||||||||
Operating expenses, as adjusted* | $ | 591 | $ | 559 | 5.8 | % | $ | 1,714 | $ | 1,658 | 3.4 | % | |||||||||
Operating expenses as a percentage of sales, as reported | 8.5 | % | 9.3 | % | (80) bps | 8.9 | % | 9.5 | % | (60) bps | |||||||||||
Operating expenses as a percentage of sales, as adjusted | 8.5 | % | 9.3 | % | (80) bps | 8.9 | % | 9.5 | % | (60) bps |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(millions) | April 1, 2023 | April 2, 2022 | % Change | ||||||||||||||||||||||||||||||||
Gross profit, as reported | $ | 1,114 | $ | 1,208 | (7.8)% | ||||||||||||||||||||||||||||||
Impact of changes in foreign currencies | — | (27) | |||||||||||||||||||||||||||||||||
Gross profit, constant currency | $ | 1,114 | $ | 1,181 | (5.7)% | ||||||||||||||||||||||||||||||
Gross profit as a percentage of sales, as reported | 12.7 | % | 13.3 | % | (60) bps | ||||||||||||||||||||||||||||||
Gross profit as a percentage of sales, constant currency | 12.7 | % | 13.3 | % | (60) bps |
Quarter Ended | |||||||||||||||||||||||||||||||||||
(millions) | April 1, 2023 | April 2, 2022 | % Change | ||||||||||||||||||||||||||||||||
Operating expenses, as reported | $ | 692 | $ | 697 | (0.8)% | ||||||||||||||||||||||||||||||
Identifiable intangible asset amortization | (8) | (9) | |||||||||||||||||||||||||||||||||
Restructuring, integration, and other charges | (3) | (5) | |||||||||||||||||||||||||||||||||
Impact of changes in foreign currencies | — | (15) | |||||||||||||||||||||||||||||||||
Non-GAAP operating expenses | $ | 681 | $ | 668 | 1.9% | ||||||||||||||||||||||||||||||
Operating expenses as a percentage of sales | 7.9 | % | 7.7 | % | 20 bps | ||||||||||||||||||||||||||||||
Non-GAAP operating expenses as a percentage of sales, constant currency | 7.8 | % | 7.5 | % | 30 bps | ||||||||||||||||||||||||||||||
Quarter Ended | |||||||||||||||||||||||||||||||||||
(millions) | April 1, 2023 | April 2, 2022 | % Change | ||||||||||||||||||||||||||||||||
Consolidated operating income, as reported | $ | 422 | $ | 510 | (17.3)% | ||||||||||||||||||||||||||||||
Identifiable intangible asset amortization | 8 | 9 | |||||||||||||||||||||||||||||||||
Restructuring, integration, and other charges | 3 | 5 | |||||||||||||||||||||||||||||||||
Non-GAAP consolidated operating income | $ | 433 | $ | 524 | (17.5)% | ||||||||||||||||||||||||||||||
Consolidated operating income as a percentage of sales | 4.8 | % | 5.6 | % | (80) bps | ||||||||||||||||||||||||||||||
Non-GAAP consolidated operating income as a percentage of sales | 5.0 | % | 5.8 | % | (80) bps | ||||||||||||||||||||||||||||||
Global components operating income, as reported | $ | 418 | $ | 499 | (16.4)% | ||||||||||||||||||||||||||||||
Identifiable intangible asset amortization | 7 | 7 | |||||||||||||||||||||||||||||||||
Non-GAAP global components operating income | $ | 424 | $ | 506 | (16.2)% | ||||||||||||||||||||||||||||||
Global components operating income as a percentage of sales | 6.1 | % | 6.9 | % | (80) bps | ||||||||||||||||||||||||||||||
Non-GAAP global components operating income as a percentage of sales | 6.2 | % | 7.0 | % | (80) bps | ||||||||||||||||||||||||||||||
Global ECS operating income, as reported | $ | 81 | $ | 86 | (5.5)% | ||||||||||||||||||||||||||||||
Identifiable intangible asset amortization | 1 | 2 | |||||||||||||||||||||||||||||||||
Non-GAAP global ECS operating income | $ | 82 | $ | 88 | (6.4)% | ||||||||||||||||||||||||||||||
Global ECS operating income as a percentage of sales | 4.3 | % | 4.6 | % | (30) bps | ||||||||||||||||||||||||||||||
Non-GAAP global ECS operating income as a percentage of sales | 4.4 | % | 4.7 | % | (30) bps | ||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2017 | October 1, 2016 | % Change | September 30, 2017 | October 1, 2016 | % Change | ||||||||||||||||
Consolidated operating income, as reported | $ | 236 | $ | 199 | 18.8 | % | $ | 658 | $ | 604 | 8.9 | % | |||||||||
Identifiable intangible asset amortization | 13 | 14 | 38 | 41 | |||||||||||||||||
Restructuring, integration, and other charges | 16 | 24 | 56 | 61 | |||||||||||||||||
Consolidated operating income, as adjusted* | $ | 265 | $ | 237 | 11.7 | % | $ | 751 | $ | 706 | 6.4 | % | |||||||||
Consolidated operating income as a percentage of sales, as reported | 3.4 | % | 3.3 | % | 10 bps | 3.4 | % | 3.5 | % | (10) bps | |||||||||||
Consolidated operating income, as adjusted, as a percentage of sales, as reported | 3.8 | % | 4.0 | % | (20) bps | 3.9 | % | 4.1 | % | (20) bps |
Quarter Ended | |||||||||||||||||||||||
April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||
Effective income tax rate | 21.8 | % | 23.5 | % | |||||||||||||||||||
Identifiable intangible asset amortization | 0.1 | % | — | % | |||||||||||||||||||
Restructuring, integration, and other charges | 0.1 | % | — | % | |||||||||||||||||||
Gain on investments, net | (0.1) | % | — | % | |||||||||||||||||||
Non-GAAP effective income tax rate | 21.8 | % | 23.5 | % |
Quarter Ended | |||||||||||||||||||||||||||||||||||||||
(millions) | (millions) | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||||||||||||||||
Net income attributable to shareholders, as reported | Net income attributable to shareholders, as reported | $ | 274 | $ | 365 | ||||||||||||||||||||||||||||||||||
Identifiable intangible asset amortization* | Identifiable intangible asset amortization* | 8 | 9 | ||||||||||||||||||||||||||||||||||||
Restructuring, integration, and other charges | Restructuring, integration, and other charges | 3 | 5 | ||||||||||||||||||||||||||||||||||||
Gain on investments, net | Gain on investments, net | (10) | (2) | ||||||||||||||||||||||||||||||||||||
Quarter Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||
September 30, 2017 | October 1, 2016 | September 30, 2017 | October 1, 2016 | ||||||||||||||||||||||||||||||||||||
Net income attributable to shareholders, as reported | $ | 135 | $ | 118 | $ | 348 | $ | 358 | |||||||||||||||||||||||||||||||
Identifiable intangible asset amortization* | 12 | 13 | 37 | 40 | |||||||||||||||||||||||||||||||||||
Restructuring, integration, and other charges | 16 | 24 | 56 | 61 | |||||||||||||||||||||||||||||||||||
Loss on extinguishment of debt | 1 | — | 60 | — | |||||||||||||||||||||||||||||||||||
Loss on investment | 15 | — | 14 | — | |||||||||||||||||||||||||||||||||||
Tax effect of adjustments above | (16 | ) | (12 | ) | (60 | ) | (31 | ) | Tax effect of adjustments above | — | (3) | ||||||||||||||||||||||||||||
Net income attributable to shareholders, as adjusted | $ | 163 | $ | 143 | $ | 455 | $ | 428 | |||||||||||||||||||||||||||||||
Non-GAAP net income attributable to shareholders | Non-GAAP net income attributable to shareholders | $ | 274 | $ | 373 |
(millions) | April 1, 2023 | December 31, 2022 | Change | |||||||||||||||||
Working capital | $ | 7,205 | $ | 7,182 | $ | 23 | ||||||||||||||
Cash and cash equivalents | 206 | 177 | 29 | |||||||||||||||||
Short-term debt | 144 | 590 | (446) | |||||||||||||||||
Long-term debt | 3,719 | 3,183 | 536 | |||||||||||||||||
Borrowing Capacity | Outstanding Borrowings | Average Daily Balance Outstanding | ||||||||||||||||||||||||||||||
Quarter Ended | ||||||||||||||||||||||||||||||||
(millions) | April 1, 2023 | December 31, 2022 | April 1, 2023 | April 2, 2022 | ||||||||||||||||||||||||||||
North American asset securitization program | $ | 1,500 | $ | 1,255 | $ | 1,235 | $ | 1,291 | $ | 682 | ||||||||||||||||||||||
Revolving credit facility | 2,000 | 15 | — | 274 | 12 | |||||||||||||||||||||||||||
Commercial paper program (a) | 1,200 | 120 | 173 | 762 | 342 | |||||||||||||||||||||||||||
Uncommitted lines of credit | 200 | — | 78 | 11 | 5 | |||||||||||||||||||||||||||
(millions) | Activity | Date | Notional Amount | |||||||||||||||||
4.50% notes, due March 2023 | Repaid | March 2023 | $ | 300 | ||||||||||||||||
6.125% notes, due March 2026 (a) | Issued | March 2023 | $ | 500 | ||||||||||||||||
3.50% notes, due April 2022 | Repaid | February 2022 | $ | 350 | ||||||||||||||||
North American asset securitization program | Increase in Capacity | September 2022 | $ | 250 | ||||||||||||||||
EMEA asset securitization program | Increase in Capacity | September 2022 | € | 200 |
(millions) | April 1, 2023 | April 2, 2022 | Change | |||||||||||||||||
Net cash provided by (used for) operating activities | $ | 224 | $ | (200) | $ | 424 | ||||||||||||||
Net cash provided by (used for) investing activities | (9) | 1 | (10) | |||||||||||||||||
Net cash provided by (used for) financing activities | (211) | 228 | (439) |
Month of Board Approval | Dollar Value Approved for Repurchase | Dollar Value of Shares Repurchased | Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | |||||||||
September 2015 | $ | 400,000 | $ | 400,000 | $ | — | ||||||
December 2016 | 400,000 | 16,081 | 383,919 | |||||||||
Total | $ | 800,000 | $ | 416,081 | $ | 383,919 |
(thousands except share and per share data) | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program | Approximate Dollar Value of Shares that May Yet be Purchased Under the Programs (a) | ||||||||||||||||||||||
January 1 through January 28, 2023 | 800,389 | $ | 112.44 | 800,389 | $ | 1,238,746 | ||||||||||||||||||||
January 29 through February 25, 2023 | 246,891 | 123.54 | 246,891 | 1,208,245 | ||||||||||||||||||||||
February 26 through April 1, 2023 | 1,516,630 | 118.52 | 1,516,630 | 1,028,497 | ||||||||||||||||||||||
Total | 2,563,910 | 2,563,910 |
Month | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Program (b) | Approximate Dollar Value of Shares that May Yet be Purchased Under the Programs | ||||||||||
July 2 through July 29, 2017 | — | $ | — | — | $ | 408,913,216 | ||||||||
July 30 through August 26, 2017 | 173,548 | 75.84 | 171,500 | 395,919,107 | ||||||||||
August 27 through September 30, 2017 | 157,864 | 77.92 | 154,090 | 383,919,118 | ||||||||||
Total | 331,412 | 325,590 |
Number |
Exhibit | ||||||||||||||
Inline XBRL | ||||||||||||||
Cover Page Interactive Data File (formatted as Inline XBRL | ||||||||||||||
and contained in Exhibit 101). | ||||||||||||||
ARROW ELECTRONICS, INC. | ||||||||||||||
Date: | May 4, 2023 | By: | /s/ Rajesh K. Agrawal | |||||||||||
Rajesh K. Agrawal | ||||||||||||||
Senior Vice President and Chief Financial Officer | ||||||||||||||