Cover Document
Cover Document - shares | 6 Months Ended | |
Jun. 27, 2020 | Jul. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly report | true | |
Document Period End Date | Jun. 27, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-4482 | |
Entity Registrant Name | ARROW ELECTRONICS INC | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-1806155 | |
Entity Address, Address Line One | 9201 East Dry Creek Road | |
Entity Address, Postal Zip Code | 80112 | |
Entity Address, City or Town | Centennial | |
Entity Address, State or Province | CO | |
City Area Code | (303) | |
Local Phone Number | 824-4000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | ARW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 77,626,656 | |
Entity Central Index Key | 0000007536 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | ||
Sales | [1] | $ 6,606,494 | $ 7,344,548 | $ 12,987,911 | $ 14,500,539 |
Cost of sales | 5,856,031 | 6,529,639 | 11,509,057 | 12,823,942 | |
Gross profit | 750,463 | 814,909 | 1,478,854 | 1,676,597 | |
Operating expenses: | |||||
Selling, general, and administrative expenses | 501,470 | 599,212 | 1,035,309 | 1,155,288 | |
Depreciation and amortization | 46,812 | 46,982 | 93,922 | 94,508 | |
Loss on disposition of businesses, net | 0 | 0 | 0 | 866 | |
Impairments (Notes D and E) | 4,918 | 697,993 | 4,918 | 697,993 | |
Restructuring, integration, and other charges | 650 | 19,912 | 9,788 | 31,572 | |
Total operating expenses | 553,850 | 1,364,099 | 1,143,937 | 1,980,227 | |
Operating income (loss) | 196,613 | (549,190) | 334,917 | (303,630) | |
Equity in earnings (losses) of affiliated companies | (283) | 382 | 247 | (1,085) | |
Gain (loss) on investments, net | 10,901 | 1,390 | (5,909) | 6,738 | |
Employee benefit plan expense | (1,173) | (1,139) | (2,282) | (2,278) | |
Interest and other financing expense, net | (31,867) | (51,563) | (75,135) | (103,544) | |
Income (loss) before income taxes | 174,191 | (600,120) | 251,838 | (403,799) | |
Provision (benefit) for income taxes | 40,854 | (52,369) | 68,746 | 1,538 | |
Consolidated net income (loss) | 133,337 | (547,751) | 183,092 | (405,337) | |
Noncontrolling interests | 533 | 1,215 | 785 | 2,894 | |
Net income (loss) attributable to shareholders | $ 132,804 | $ (548,966) | $ 182,307 | $ (408,231) | |
Net income (loss) per share: | |||||
Basic | $ 1.69 | $ (6.48) | $ 2.29 | $ (4.80) | |
Diluted | [2] | $ 1.68 | $ (6.48) | $ 2.28 | $ (4.80) |
Weighted-average shares outstanding: | |||||
Basic | 78,677 | 84,652 | 79,527 | 85,022 | |
Diluted | 79,226 | 84,652 | 80,113 | 85,022 | |
[1] | Includes sales related to the United States of $2,463,885 and $4,875,972 for the second quarter and first six months of 2020 and $2,902,393 and $5,684,428 for the second quarter and first six months 2019, respectively. | ||||
[2] | Stock-based compensation awards for the issuance of 1,625 and 1,471 shares for the second quarter and first six months of 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. As the company reported a net loss attributable to shareholders for the second quarter and first six months of 2019, basic and diluted net loss per share attributable to shareholders are the same and stock-based compensation awards for the issuance of 1,961 and 1,810 shares, respectively, were excluded from the computation of net loss per share on a diluted basis as their effect was anti-dilutive. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Consolidated net income (loss) | $ 133,337 | $ (547,751) | $ 183,092 | $ (405,337) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment and other | 36,636 | 16,021 | (40,707) | 20,463 |
Unrealized gain (loss) on foreign exchange contracts designated as net investment hedges, net of taxes | (2,031) | (1,427) | 13,946 | 4,106 |
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net of taxes | 15 | (6,606) | (28,382) | (6,366) |
Employee benefit plan items, net of taxes | (2,374) | 85 | (126) | 404 |
Other comprehensive income (loss) | 32,246 | 8,073 | (55,269) | 18,607 |
Comprehensive income (loss) | 165,583 | (539,678) | 127,823 | (386,730) |
Less: Comprehensive income attributable to non-controlling interests | 784 | 1,730 | 794 | 2,761 |
Comprehensive income (loss) attributable to shareholders | $ 164,799 | $ (541,408) | $ 127,029 | $ (389,491) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 27, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and cash equivalents | $ 205,828 | $ 300,103 | |
Accounts receivable, net | 7,954,038 | 8,482,687 | |
Inventories | 3,420,912 | 3,477,120 | |
Other current assets | 213,190 | 266,249 | |
Total current assets | 11,793,968 | 12,526,159 | |
Property, plant, and equipment, at cost: | |||
Land | 7,743 | 7,793 | |
Buildings and improvements | 188,563 | 173,370 | |
Machinery and equipment | 1,501,919 | 1,481,525 | |
Property, plant, and equipment, gross | 1,698,225 | 1,662,688 | |
Less: Accumulated depreciation and amortization | (900,035) | (859,578) | |
Property, plant, and equipment, net | 798,190 | 803,110 | |
Investments in affiliated companies | 80,756 | 86,942 | |
Intangible assets, net | 249,528 | 271,903 | |
Goodwill | [1] | 2,052,128 | 2,061,322 |
Other assets | 629,891 | 651,360 | |
Total assets | 15,604,461 | 16,400,796 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 6,967,180 | 7,046,221 | |
Accrued expenses | 920,929 | 880,507 | |
Short-term borrowings, including current portion of long-term debt | 244,323 | 331,431 | |
Total current liabilities | 8,132,432 | 8,258,159 | |
Long-term debt | 2,098,369 | 2,640,129 | |
Other liabilities | 623,712 | 636,115 | |
Equity: | |||
Issued - 125,424 shares in both 2020 and 2019, respectively | 125,424 | 125,424 | |
Capital in excess of par value | 1,151,895 | 1,150,006 | |
Treasury stock (47,806 and 44,804 shares in 2020 and 2019, respectively), at cost | (2,542,629) | (2,332,548) | |
Retained earnings | 6,277,620 | 6,131,248 | |
Accumulated other comprehensive loss | (317,489) | (262,211) | |
Total shareholders' equity | 4,694,821 | 4,811,919 | |
Noncontrolling interests | 55,127 | 54,474 | |
Total equity | 4,749,948 | 4,866,393 | |
Total liabilities and equity | $ 15,604,461 | $ 16,400,796 | |
[1] | The total carrying value of goodwill as of June 27, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares shares in Thousands | Jun. 27, 2020 | Dec. 31, 2019 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 160,000 | 160,000 |
Common Stock, Shares, Issued | 125,424 | 125,424 |
Treasury Stock, Shares | 47,806 | 44,804 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Cash flows from operating activities: | ||
Consolidated net income (loss) | $ 183,092 | $ (405,337) |
Adjustments to reconcile consolidated net income (loss) to net cash provided by operations: | ||
Depreciation and amortization | 93,922 | 94,508 |
Amortization of stock-based compensation | 22,317 | 27,629 |
Equity in (earnings) losses of affiliated companies | (247) | 1,085 |
Deferred income taxes | 46,345 | (71,846) |
Impairments | 4,918 | 697,993 |
(Gain) loss on investments, net | 5,925 | (6,738) |
Other | 48 | 11,956 |
Change in assets and liabilities, net of effects of acquired and disposed businesses: | ||
Accounts receivable, net | 446,168 | 895,553 |
Inventories | 52,927 | 278,142 |
Accounts payable | (51,027) | (1,346,176) |
Accrued expenses | 71,043 | (71,394) |
Other assets and liabilities | 9,679 | (28,956) |
Net cash provided by operating activities | 885,110 | 76,419 |
Cash flows from investing activities: | ||
Proceeds from disposition of businesses | 0 | 9,460 |
Acquisition of property, plant, and equipment | (59,542) | (81,636) |
Other | (5,466) | 2,940 |
Net cash used for investing activities | (65,008) | (69,236) |
Cash flows from financing activities: | ||
Change in short-term and other borrowings | (7,189) | (173,356) |
Proceeds from (repayments of) long-term bank borrowings, net | (411,690) | 118,977 |
Redemption of notes | (209,366) | 0 |
Proceeds from exercise of stock options | 3,730 | 9,622 |
Repurchases of common stock | (231,739) | (200,924) |
Settlement of forward-starting interest rate swap | (48,378) | 0 |
Other | (141) | (147) |
Net cash used for financing activities | (904,773) | (245,828) |
Effect of exchange rate changes on cash | (9,604) | (693) |
Net decrease in cash and cash equivalents | (94,275) | (239,338) |
Cash and cash equivalents at beginning of period | 300,103 | 509,327 |
Cash and cash equivalents at end of period | $ 205,828 | $ 269,989 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock at Par Value | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Balance at Dec. 31, 2018 | $ 5,376,366 | $ 125,424 | $ 1,135,934 | $ (1,972,254) | $ 6,335,335 | $ (299,449) | $ 51,376 |
Consolidated net income (loss) | 142,414 | 0 | 0 | 0 | 140,735 | 0 | 1,679 |
Other comprehensive income (loss) | 10,534 | 0 | 0 | 0 | 0 | 11,182 | (648) |
Amortization of stock-based compensation | 19,090 | 0 | 19,090 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 6,931 | 0 | (26,267) | 33,198 | 0 | 0 | 0 |
Repurchases of common stock | (53,925) | 0 | 0 | (53,925) | 0 | 0 | 0 |
Balance at Mar. 30, 2019 | 5,501,410 | 125,424 | 1,128,757 | (1,992,981) | 6,476,070 | (288,267) | 52,407 |
Balance at Dec. 31, 2018 | 5,376,366 | 125,424 | 1,135,934 | (1,972,254) | 6,335,335 | (299,449) | 51,376 |
Consolidated net income (loss) | (405,337) | ||||||
Other comprehensive income (loss) | 18,607 | ||||||
Balance at Jun. 29, 2019 | 4,822,715 | 125,424 | 1,136,649 | (2,139,743) | 5,927,104 | (280,709) | 53,990 |
Balance at Mar. 30, 2019 | 5,501,410 | 125,424 | 1,128,757 | (1,992,981) | 6,476,070 | (288,267) | 52,407 |
Consolidated net income (loss) | (547,751) | 0 | 0 | 0 | (548,966) | 0 | 1,215 |
Other comprehensive income (loss) | 8,073 | 0 | 0 | 0 | 0 | 7,558 | 515 |
Amortization of stock-based compensation | 8,539 | 0 | 8,539 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 2,693 | 0 | (647) | 3,340 | 0 | 0 | 0 |
Repurchases of common stock | (150,102) | 0 | 0 | (150,102) | 0 | 0 | 0 |
Distributions | (147) | 0 | 0 | 0 | 0 | 0 | (147) |
Balance at Jun. 29, 2019 | 4,822,715 | 125,424 | 1,136,649 | (2,139,743) | 5,927,104 | (280,709) | 53,990 |
Balance at Dec. 31, 2019 | 4,866,393 | 125,424 | 1,150,006 | (2,332,548) | 6,131,248 | (262,211) | 54,474 |
Consolidated net income (loss) | 49,755 | 0 | 0 | 0 | 49,503 | 0 | 252 |
Other comprehensive income (loss) | (87,515) | 0 | 0 | 0 | 0 | (87,273) | (242) |
Amortization of stock-based compensation | 13,920 | 0 | 13,920 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 1,980 | 0 | (18,182) | 20,162 | 0 | 0 | 0 |
Repurchases of common stock | (158,989) | 0 | 0 | (158,989) | 0 | 0 | 0 |
Balance at Mar. 28, 2020 | 4,649,609 | 125,424 | 1,145,744 | (2,471,375) | 6,144,816 | (349,484) | 54,484 |
Balance at Dec. 31, 2019 | 4,866,393 | 125,424 | 1,150,006 | (2,332,548) | 6,131,248 | (262,211) | 54,474 |
Consolidated net income (loss) | 183,092 | ||||||
Other comprehensive income (loss) | (55,269) | ||||||
Balance at Jun. 27, 2020 | 4,749,948 | 125,424 | 1,151,895 | (2,542,629) | 6,277,620 | (317,489) | 55,127 |
Effect of new accounting principles | (35,935) | 0 | 0 | 0 | (35,935) | 0 | 0 |
Balance at Mar. 28, 2020 | 4,649,609 | 125,424 | 1,145,744 | (2,471,375) | 6,144,816 | (349,484) | 54,484 |
Consolidated net income (loss) | 133,337 | 0 | 0 | 0 | 132,804 | 0 | 533 |
Other comprehensive income (loss) | 32,246 | 0 | 0 | 0 | 0 | 31,995 | 251 |
Amortization of stock-based compensation | 8,397 | 0 | 8,397 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 1,750 | 0 | (2,246) | 3,996 | 0 | 0 | 0 |
Repurchases of common stock | (75,250) | 0 | 0 | (75,250) | 0 | 0 | 0 |
Distributions | (141) | 0 | 0 | 0 | 0 | 0 | (141) |
Balance at Jun. 27, 2020 | $ 4,749,948 | $ 125,424 | $ 1,151,895 | $ (2,542,629) | $ 6,277,620 | $ (317,489) | $ 55,127 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying consolidated financial statements of Arrow Electronics, Inc. (the "company") were prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year. These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2019, as filed in the company’s Annual Report on Form 10-K. Quarter End The company operates on a quarterly calendar that closes on the Saturday closest to the end of the calendar quarter, except for the fourth quarter, which closes on December 31, 2020. Reclassification Certain prior period amounts were reclassified to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Impact of Recently Issued Accou
Impact of Recently Issued Accounting Standards | 6 Months Ended |
Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Impact of Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU No. 2020-04") . ASU No. 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The amendments in the ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The company adopted the provisions of ASU No. 2020-04 on a prospective basis in March 2020. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses ("Topic 326"). Topic 326 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. On January 1, 2020, the company adopted Topic 326 using a modified retrospective approach with a cumulative effect adjustment to the opening balance of retained earnings, which increased the allowance for credit losses by $47,011 ($35,935 net of tax). Increases in the allowance for credit losses relate to the required change from an incurred loss model to an expected loss model, and the related change in timing of loss recognition where an allowance for credit losses is now applied to all receivables, at a rate dependent on the credit characteristics of the collective pool each customer is in. Refer to Notes C and G. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 27, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Except for the changes below, no material changes have been made to the company’s significant accounting policies disclosed in Note 1, Summary of Significant Accounting Policies, in its Annual Report on Form 10-K, filed on February 13, 2020, for the year ended December 31, 2019. Trade accounts and notes receivable Trade accounts and notes receivable are reported at amortized cost, net of the allowance for credit losses in the consolidated balance sheets. The allowance for credit losses is a valuation account that is deducted from the receivables' amortized cost basis to present the net amount expected to be collected. Receivables are written off against the allowance when management believes the receivable balance is confirmed to be uncollectible. Management estimates the allowance for credit losses using relevant available information about expected credit losses and an age-based reserve model. Inputs to the model include information about historical credit losses, customer credit ratings, past events, current conditions, and reasonable and supportable forecasts. Adjustments to historical loss information are made for differences in current receivable-specific risk characteristics such as changes in the economic and industry environment, or other relevant factors. Expected credit losses are estimated on a collective (pool) basis, when similar risk characteristics exist, based on customer credit ratings, which include both externally acquired as well as internally determined credit ratings. Receivables that do not share risk characteristics are evaluated on an individual basis. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 6 Months Ended |
Jun. 27, 2020 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | |
Impairments of Long-Lived Assets | Impairment of Long-Lived AssetsDuring the second quarter of 2019, the company committed to a plan to close its personal computer and mobility asset disposition business within the global components business segment. In light of the plan, the company performed an impairment analysis of the long-lived assets of the personal computer and mobility asset disposition business in accordance with Accounting Standards Codification ("ASC") topic 360 and recorded a pre-tax impairment charge of $74,908 to write-down certain assets of the personal computer and mobility asset disposition business to estimated fair value in the second quarter of 2019. The company also recorded $4,918 and $6,910 in impairment charges related to various other long-lived assets in the second quarters of 2020 and 2019, respectively, unrelated to the personal computer and mobility asset disposition business. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global Global ECS Total Balance as of December 31, 2019 (a) $ 883,496 $ 1,177,826 $ 2,061,322 Foreign currency translation adjustment (1,363) (7,831) (9,194) Balance as of June 27, 2020 (a) $ 882,133 $ 1,169,995 $ 2,052,128 (a) The total carrying value of goodwill as of June 27, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. During the first quarter of 2020, as a result of significant declines in macroeconomic conditions and equity valuations, and the implementation of regulatory restrictions brought forth by the COVID-19 pandemic, and due to historically low head-room, the company determined that it was more likely than not that an impairment may exist within the Americas components and eInfochips reporting units. The company performed a quantitative goodwill impairment test for these reporting units and determined goodwill was not impaired. As of March 28, 2020, the fair value of the Americas components and eInfochips reporting units, within the global components business segment, exceeded their carrying values by less than 10%. The company estimated the fair value of these reporting units using the income approach. For the purposes of the income approach, fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. The fair value conclusions as of March 28, 2020 for the Americas components and eInfochips reporting units are highly sensitive to changes in the assumptions used in the income approach which include forecasted revenues, gross profit margins, operating income margins, working capital cash flow, forecasted capital expenditures, perpetual growth rates, and long-term discount rates, among others, all of which require significant judgments by management. The company has used recent historical performance, current forecasted financial information, and broad-based industry and economic statistics as a basis to estimate the key assumptions utilized in the discounted cash flow model. These key assumptions are inherently uncertain and require a high degree of estimation and judgment and are subject to change based on future changes, industry and global economic and geo-political conditions, and the timing and success of the implementation of current strategic initiatives. The impact of the COVID-19 pandemic on estimated future cash flows is highly uncertain and will largely depend on the outcome of future events, which could result in a goodwill impairment going forward. The impacts of COVID-19 were considered in the interim impairment analysis as of March 28, 2020 through the use of probability weighted cash flow scenarios and an increase in the discount rates. The company concluded no further indicators of potential impairment existed, and as such, no interim impairment test was required at June 27, 2020. During the second quarter of 2019, as a result of the company's downward revision of forecasted future earnings and the decision to wind down the company's personal computer and mobility asset disposition business, the company determined that it was more likely than not that an impairment may exist within the Americas components and Asia-Pacific components reporting units. The company evaluated its other four reporting units and concluded an interim impairment analysis was not required based on the results of those reporting units and historical levels of headroom in each of those reporting units. The interim goodwill impairment analysis resulted in a partial goodwill impairment charge of $509,000 ($457,806 net of tax) with approximately $600,000 of goodwill remaining within the Americas components reporting unit and a full impairment charge of $61,175 ($61,175 net of tax) within the Asia-Pacific components reporting unit. Intangible assets, net, are comprised of the following as of June 27, 2020: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 11 years $ 350,931 $ (162,429) $ 188,502 Amortizable trade name 8 years 74,007 (12,981) 61,026 $ 424,938 $ (175,410) $ 249,528 Intangible assets, net, are comprised of the following as of December 31, 2019: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 354,305 $ (148,632) $ 205,673 Amortizable trade name 8 years 76,407 (10,177) 66,230 $ 430,712 $ (158,809) $ 271,903 During the second quarter of 2019, the company initiated actions to further integrate two global components businesses. These businesses held indefinite-lived trade names with a carrying value of $101,000. As a result of the company’s decision to integrate these brands, we determined the useful lives of the trade names were no longer indefinite. Subsequent to the second quarter of 2019, the company began amortizing these trade names over their estimated remaining useful lives. The trade names were tested for impairment during the second quarter of 2019 as a result of the change in estimated useful lives. The company estimated the fair value of the trade names to be $55,000 using the relief from royalty method and recorded a non-cash impairment charge of $46,000 ($34,653 net of tax). The drivers of the impairment were primarily due to the shortened useful lives of the asset and a decline of the forecasted revenues attributable to the trade names as integration to the Arrow brand occurs over the estimated remaining useful lives. During the second quarter of 2020 and 2019, the company recorded amortization expense related to identifiable intangible assets of $9,734 and $11,413, respectively. During the first six months of 2020 and 2019, amortization expense related to identifiable intangible assets was $19,689 and $23,343, respectively. |
Investments in Affiliated Compa
Investments in Affiliated Companies | 6 Months Ended |
Jun. 27, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliated Companies | Investments in Affiliated CompaniesThe company owns a 50% interest in two joint ventures with Marubun Corporation (collectively “Marubun/Arrow”) and a 50% interest in one other joint venture. These investments are accounted for using the equity method. The following table presents the company’s investment in affiliated companies: June 27, December 31, Marubun/Arrow $ 71,957 $ 76,574 Other 8,799 10,368 $ 80,756 $ 86,942 The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Marubun/Arrow $ (217) $ 227 $ 228 $ 1,453 Other (66) 155 19 (2,538) $ (283) $ 382 $ 247 $ (1,085) |
Accounts Receivable
Accounts Receivable | 6 Months Ended |
Jun. 27, 2020 | |
Receivables [Abstract] | |
Accounts Receivable [Text Block] | Accounts Receivable Accounts receivable, net, consists of the following: June 27, December 31, Accounts receivable $ 8,052,930 $ 8,552,120 Allowances for doubtful accounts (98,892) (69,433) $ 7,954,038 $ 8,482,687 The company has notes receivable with certain customers, which are included in “Accounts receivable, net” in the company’s consolidated balance sheets. Allowances for doubtful accounts consists of the following: Balance at December 31, 2019 $ 69,433 Effect of adoption of ASU No. 2016-13 (Note B) 47,011 Charged to income 19,475 Translation Adjustments (1,817) Writeoffs (35,210) Balance at June 27, 2020 $ 98,892 The global economic impact from COVID-19 may adversely affect the credit condition of some of our customers. The company has considered the current credit condition of its customers in estimating the expected credit losses and has not experienced significant changes in customers’ payment trends or significant deterioration in customers’ credit risk as of June 27, 2020. The impact of COVID-19 on our customers’ credit condition is highly uncertain and will largely depend on the outcome of future events, which could cause credit losses to increase. During the first quarter of 2020, the company entered into an EMEA (Europe, the Middle East, and Africa) asset securitization program under which it will continuously sell its interest in designated pools of trade accounts receivables of certain of its subsidiaries in the EMEA region, at a discount, to a special purpose entity, which in turn sells certain of the receivables to unaffiliated financial institutions and conduits administered by such unaffiliated financial institutions on a monthly basis. The company may sell up to €400,000 under the EMEA asset securitization program, which matures in January 2023, subject to extension in accordance with its terms. The program is conducted through Arrow EMEA Funding Corp B.V., an entity structured to be bankruptcy remote. The company is deemed the primary beneficiary of Arrow EMEA Funding Corp B.V. as the company has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivables into the special purpose entity. Accordingly, Arrow EMEA Funding Corp B.V. is included in the company’s consolidated financial statements. Receivables sold under the program are excluded from “Accounts receivable, net” on the company’s consolidated balance sheets and cash receipts are reflected as cash provided by operating activities on the consolidated statements of cash flows. The purchase price is paid in cash when the receivables are sold. Certain unsold receivables held on Arrow EMEA Funding Corp B.V. are pledged as collateral to unaffiliated financial institutions. These unsold receivables are included in “Accounts receivable, net” in the company’s consolidated balance sheets. The company continues servicing the receivables which were sold and in exchange receives a servicing fee under the program. The company does not record a servicing asset or liability on the company’s consolidated balance sheets as the company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. During the second quarter and first six months of 2020, the company sold approximately €410,770 and €899,491, or $448,913 and $977,366, of accounts receivables to unaffiliated financial institutions under the EMEA securitization program. There were €292,403, or $324,227, of receivables sold to unaffiliated financial institutions that were uncollected as of June 27, 2020. Total collateralized accounts receivables of approximately €173,786, or $192,554, were held by Arrow EMEA Funding Corp B.V. at June 27, 2020. Any accounts receivables held by Arrow EMEA Funding Corp B.V. would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings if there are outstanding balances under the EMEA asset securitization program. The assets of the special purpose entity cannot be used by the company for general corporate purposes. Additionally, the financial obligations of Arrow EMEA Funding Corp B.V. to the unaffiliated financial institution under the program are limited to the assets it owns and there is no recourse to the company for receivables that are uncollectible as a result of the insolvency or inability to pay of the account debtors. The EMEA asset securitization program includes terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The company was in material compliance with all covenants as of June 27, 2020 and is currently not aware of any events that would cause non-compliance with any covenants in the future. |
Debt
Debt | 6 Months Ended |
Jun. 27, 2020 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt Short-term borrowings, including current portion of long-term debt, consists of the following: June 27, December 31, 6.00% notes, due April 2020 $ — $ 209,322 5.125% notes, due March 2021 130,764 — Borrowings on lines of credit 75,000 60,000 Other short-term borrowings 38,559 62,109 $ 244,323 $ 331,431 Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 3.27% and 2.76% at June 27, 2020 and December 31, 2019, respectively. The company has $200,000 in uncommitted lines of credit. There were $75,000 and $60,000 of o utstanding borrowings under the uncommitted lines of credit at June 27, 2020 and December 31, 2019, respectively. These borrowings were provided on a short-term basis and the maturity is agreed upon between the company and the lender. The lines had a weighted-average effective interest rate of 1.55% and 2.61% at June 27, 2020 and December 31, 2019, respectively. The company has a commercial paper program and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1,200,000. The company had no outstanding borrowings under this program at June 27, 2020 and December 31, 2019. The program had a weighted-average effective interest rate of 2.01% and 2.24% at June 27, 2020 and December 31, 2019, respectively. Long-term debt consists of the following: June 27, December 31, Revolving credit facility $ — $ 10,000 North American asset securitization program — 400,000 5.125% notes, due 2021 — 130,691 3.50% notes, due 2022 348,499 348,088 4.50% notes, due 2023 298,421 298,148 3.25% notes, due 2024 495,536 495,045 4.00% notes, due 2025 346,680 346,368 7.50% senior debentures, due 2027 109,898 109,857 3.875% notes, due 2028 494,933 494,648 Other obligations with various interest rates and due dates 4,402 7,284 $ 2,098,369 $ 2,640,129 The 7.50% senior debentures are not redeemable prior to their maturity. All other notes may be called at the option of the company subject to “make whole” clauses. The estimated fair market value of long-term debt, using quoted market prices, is as follows: June 27, December 31, 3.50% notes, due 2022 $ 360,000 $ 358,500 4.50% notes, due 2023 319,500 316,000 3.25% notes, due 2024 528,000 515,500 4.00% notes, due 2025 375,500 367,000 7.50% senior debentures, due 2027 129,500 135,000 3.875% notes, due 2028 521,000 516,500 The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 5.125% notes due March 2021, North American asset securitization program, commercial paper, and other obligations approximate their fair value. The company has a $2,000,000 revolving credit facility maturing in December 2023. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company’s commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a Eurocurrency rate plus a spread (1.18% at June 27, 2020), which is based on the company’s credit ratings, or an effective interest rate of 1.24% at June 27, 2020. The facility fee, which is based on the company’s credit ratings, was .20% of the total borrowing capacity at June 27, 2020. The company had no outstanding borrowings and $10,000 in outstanding borrowings under the revolving credit facility at June 27, 2020 and December 31, 2019, respectively. The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. The company may borrow up to $1,200,000 under the program, which matures in June 2021. The program is conducted through Arrow Electronics Funding Corporation (“AFC”), a wholly-owned, bankruptcy remote subsidiary. The North American asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company’s consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread (.40% at June 27, 2020), or an effective interest rate of .87% at June 27, 2020. The facility fee is .40% of the total borrowing capacity. At June 27, 2020, the company had no outstanding borrowings under the North American asset securitization program. At December 31, 2019, the company had $400,000 in outstanding borrowings under the North American asset securitization program, which was included in “ Long-term debt” in the company’s consolidated balance sheets. Total collateralized accounts receivable of approximately $2,073,200 and $2,217,800 were held by AFC and were included in “ Accounts receivable, net” in the company’s consolidated balance sheets at June 27, 2020 and December 31, 2019, respectively. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the North American asset securitization program. Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The company was in material compliance with all covenants as of June 27, 2020 and is currently not aware of any events that would cause non-compliance with any covenants in the future. During April 2020, the company repaid $209,366 principal amount of its 6.00% notes due April 2020. In the normal course of business, certain of the company’s subsidiaries have agreements to sell, without recourse, selected trade receivables to financial institutions. The company does not retain financial or legal interests in these receivables, and, accordingly they are accounted for as sales of the related receivables and the receivables are removed from the company’s consolidated balance sheets. Interest and other financing expense, net, includes interest and dividend income of $3,461 and $13,426 for the second quarter and first six months of 2020, respectively. Interest and other financing expense, net, includes interest and dividend income of $14,492 and $28,537 for the second quarter and first six months 2019, respectively. |
Financial Instruments Measured
Financial Instruments Measured at Fair Value | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured At Fair Value [Text Block] | Financial Instruments Measured at Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. The following table presents assets (liabilities) measured at fair value on a recurring basis at June 27, 2020: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 21,480 $ — $ — $ 21,480 Equity investments (b) Other assets 37,903 — — 37,903 Interest rate swaps Other assets — 558 — 558 Interest rate swaps Other liabilities — (3,029) — (3,029) Foreign exchange contracts Other current assets/ — 47,867 — 47,867 Foreign exchange contracts Accrued expenses — (2,595) — (2,595) $ 59,383 $ 42,801 $ — $ 102,184 The following table presents assets (liabilities) measured at fair value on a recurring basis at December 31, 2019: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 18,579 $ — $ — $ 18,579 Equity investments (b) Other assets 44,677 — — 44,677 Interest rate swaps Other liabilities — (11,574) — (11,574) Foreign exchange contracts Other current assets/ — 24,092 — 24,092 Foreign exchange contracts Accrued expenses — (2,132) — (2,132) $ 63,256 $ 10,386 $ — $ 73,642 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. (b) The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized gain of $4,964 and an unrealized loss of $5,031 for the second quarter and first six months of 2020, respectively, on equity securities held at the end of the quarter. The company recorded an unrealized gain of $8 and $1,842 for the second quarter and first six months of 2019, respectively, on equity securities held at the end of the quarter. Assets and liabilities that are measured at fair value on a nonrecurring basis relate primarily to goodwill, identifiable intangible assets, and long-lived assets (see Notes D and E). The company tests these assets for impairment if indicators of potential impairment exist or at least annually if indefinite lived. Derivative Instruments The company uses various financial instruments, including derivative instruments, for purposes other than trading. Certain derivative instruments are designated at inception as hedges and measured for effectiveness both at inception and on an ongoing basis. Derivative instruments not designated as hedges are marked-to-market each reporting period with any unrealized gains or losses recognized in earnings. Interest Rate Swaps The company manages the risk of variability in interest rates of future expected debt issuances by entering into various forward-starting interest rate swaps, designated as cash flow hedges. Changes in fair value of interest rate swaps are recorded in the shareholders’ equity section in the company’s consolidated balance sheets in “Accumulated other comprehensive loss” and will be reclassified into income over the life of the anticipated debt issuance or in the period the hedged forecasted cash flows are deemed no longer probable to occur. Gains and losses on interest rate swaps are recorded within the line item “Interest and other financing expense, net” in the consolidated statements of operations. The fair value of interest rate swaps are estimated using market quotes. At June 27, 2020 the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount Weighted Average Interest Rate Date Range of Forecasted Transaction April 2020 December 2024 $300,000 0.97% Jan 2023 - Dec 2025 May 2020 June 2022 $300,000 0.90% Jan 2021 - Jun 2023 At December 31, 2019 the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount Weighted Average Interest Rate Date Range of Forecasted Transaction May 2019 June 2020 $300,000 2.33% Sep 2019 - Jun 2020 In May 2019, the company entered into a series of ten-year forward-starting interest rate swaps (the “2019 swaps”). The 2019 swaps were designated as cash flow hedges managing the risk of variability in interest rates of future expected debt issuance by June 2020. In February 2020, the company determined that certain of the forecasted cash flows were no longer probable and de-designated the hedging relationship. In February 2020, the company re-designated the 2019 swaps in a new cash flow hedge managing the risk of variability in interest rates of future expected debt issuance by June 2023. In May 2020, the company terminated the 2019 swaps for a cash payment of $48,378, which is reported in the "cash flows from financing activities" section of the consolidated statements of cash flows. During the six months ended June 27, 2020, losses of $1,194, before taxes, were reclassified from “Accumulated other comprehensive loss” ("AOCI") to “Interest and other financing expense, net” related to forecasted cash flows that were deemed no longer probable to occur. At June 27, 2020 losses of $35,796, net of taxes, remained in AOCI related to the May 2019 swaps. During the second quarter and six months ended June 27, 2020, losses of $243 and $29,799, respectively, related to interest rate swaps were recorded in other comprehensive loss, net of taxes. During the second quarter ended June 29, 2019, losses of $6,849 related to interest rate swaps were recorded in other comprehensive loss, net of taxes. Foreign Exchange Contracts 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 the product. The company’s transactions in its foreign operations are denominated primarily in the following currencies: Euro, Chinese Renminbi, Indian Rupee, Canadian Dollar, and British Pound. The company enters into foreign exchange forward, option, or swap contracts (collectively, the “foreign exchange contracts”) to facilitate the hedging of foreign currency exposures resulting from inventory purchases and sales and mitigate the impact of changes in foreign currency exchange rates related to these transactions. Foreign exchange contracts generally have terms of no more than six months. Gains or losses on these contracts are deferred and recognized when the underlying future purchase or sale is recognized or when the corresponding asset or liability is revalued. The company does not enter into foreign exchange contracts for trading purposes. The risk of loss on a foreign exchange contract is the risk of nonperformance by the counterparties, which the company minimizes by limiting its counterparties to major financial institutions. The fair value of the foreign exchange contracts are estimated using market quotes. The notional amount of the foreign exchange contracts inclusive of foreign exchange contracts designated as a net investment hedge at June 27, 2020 and December 31, 2019 was $1,031,031 and $929,966, respectively. Gains and losses related to non-designated foreign currency exchange contracts are recorded in “Cost of sales” in the company’s consolidated statements of operations. Gains and losses related to foreign currency exchange contracts designated as cash flow hedges are recorded in “Cost of sales,” “Selling, general, and administrative expenses,” and “Interest and other financing expense, net” based upon the nature of the underlying hedged transaction, in the company’s consolidated statements of operations and were not material for the second quarter and first six months of 2020 and 2019. During the first quarter of 2019, the company entered into a series of foreign exchange contracts to sell Euro and buy United States Dollars, with various maturity dates as noted in the table below: Maturity Date Notional Amount March 2023 EUR 50,000 September 2024 EUR 50,000 April 2025 EUR 100,000 January 2028 EUR 100,000 Total EUR 300,000 The contracts above have been designated as a net investment hedge which is in place to hedge a portion of the company’s net investment in subsidiaries with euro-denominated net assets. The change in the fair value of derivatives designated as net investment hedges are recorded in “ foreign currency translation adjustment” ( “ CTA”) within “ Accumulated other comprehensive loss” in the company’s consolidated balance sheets. Amounts excluded from the assessment of hedge effectiveness are included in “ Interest and other financing expense, net” in the company’s consolidated statements of operations. The total gains (losses) recorded in CTA within other comprehensive loss related to net investment hedges were $(361) and $17,286 for the second quarter and first six months of 2020, and $224 and $6,816 for the second quarter and first six months of 2019, net of taxes, respectively. Derivative amounts excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (net of tax) were gains (losses) of $519 and $18,513 for the second quarter and first six months of 2020, $3,634 and $4,776 for the second quarter and first six months of 2019, respectively. Derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to "Interest and other financing expenses, net" were gains of $2,201 and $4,402 for the second quarter and first six months of 2020, and $2,192 and $3,598 for the second quarter and first six months of 2019, respectively. The company recorded an asset of $44,504 and $21,718 as of June 27, 2020 and December 31, 2019, respectively, related to the net investment hedges. The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Gain (Loss) Recognized in Income Foreign exchange contracts $ 4,128 $ 774 $ 8,621 $ 4,263 Interest rate swaps (338) (322) (1,867) (641) Total $ 3,790 $ 452 $ 6,754 $ 3,622 Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax Foreign exchange contracts $ 897 $ 1,294 $ 16,997 $ 7,247 Interest rate swaps (243) (6,849) (29,799) (6,849) Total $ 654 $ (5,555) $ (12,802) $ 398 Other The carrying amount of cash and cash equivalents, accounts receivable, net, and accounts payable approximate their fair value due to the short maturities of these financial instruments. |
Restructuring, Integration, and
Restructuring, Integration, and Other Charges | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring, Integration and Other Charges [Text Block] | Restructuring, Integration, and Other Charges Restructuring initiatives are due to the company’s continued efforts to lower cost and drive operational efficiency. Integration costs are primarily related to the integration of acquired businesses within the company’s pre-existing business and the consolidation of certain operations. The following table presents the components of the restructuring, integration, and other charges: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Restructuring and integration charges - current period actions $ 1,284 $ 5,071 $ 4,989 $ 8,078 Restructuring and integration charges (credits) - actions taken in prior periods (2,054) 1,424 (533) 1,363 Other charges 1,420 13,417 5,332 22,131 $ 650 $ 19,912 $ 9,788 $ 31,572 Restructuring and Integration Accrual Summary The restructuring and integration accrual was $6,937 and $9,667 at June 27, 2020 and December 31, 2019, respectively. During the second quarter and first six months of 2020, the company made $2,250 and $6,413 of payments related to restructuring and integration accruals, respectively. Substantially all amounts accrued at June 27, 2020, and all restructuring and integration charges for the first six months of 2020, relate to the termination of personnel and are expected to be spent in cash within two years. Other Charges Included in restructuring, integration, and other charges for the second quarter and the first six months of 2020 are other expenses of $1,420 and $5,332, respectively. The following items were included in other charges and credits recorded to restructuring, integration, and other charges for the second quarter and six months ended June 27, 2020: • personnel charges for the second quarter and first six months of 2020 of $591 and $3,030 related to the operating expense reduction program previously disclosed on July 15, 2019. The accrual related to the operating expense reduction program was $17,314 at June 27, 2020, and all accrued amounts are expected to be paid within five years. Included in restructuring, integration, and other charges for the second quarter and first six months of 2019 are other expenses of $13,417 and $22,131, respectively. The following items were included in other charges and credits recorded to restructuring, integration, and other charges for the second quarter and six months ended June 29, 2019: • relocation and other charges associated with centralization efforts to maximize operating efficiencies for the second quarter and first six months of $3,174 and $8,733, respectively. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share [Text Block] | Net Income (Loss) per Share The following table presents the computation of net income (loss) per share on a basic and diluted basis (shares in thousands): Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Net income (loss) attributable to shareholders $ 132,804 $ (548,966) $ 182,307 $ (408,231) Weighted-average shares outstanding - basic 78,677 84,652 79,527 85,022 Net effect of various dilutive stock-based compensation awards 549 — 586 — Weighted-average shares outstanding - diluted $ 79,226 $ 84,652 $ 80,113 $ 85,022 Net income (loss) per share: Basic $ 1.69 $ (6.48) $ 2.29 $ (4.80) Diluted (a) $ 1.68 $ (6.48) $ 2.28 $ (4.80) (a) Stock-based compensation awards for the issuance of 1,625 and 1,471 shares for the second quarter and first six months of 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. As the company reported a net loss attributable to shareholders for the second quarter and first six months of 2019, basic and diluted net loss per share attributable to shareholders are the same and stock-based compensation awards for the issuance of 1,961 and 1,810 shares, respectively, were excluded from the computation of net loss per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 27, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Accumulated Other Comprehensive Loss The following table presents the changes in Accumulated other comprehensive loss, excluding noncontrolling interests: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Foreign Currency Translation Adjustment and Other: Other comprehensive gain (loss) before reclassifications (a) $ 36,940 $ 15,560 $ (40,267) $ 20,836 Amounts reclassified into income (555) (54) (449) (240) Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income (loss) before reclassifications (361) 224 17,286 6,816 Amounts reclassified into income (1,670) (1,651) (3,340) (2,710) Unrealized Loss on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive loss before reclassifications (243) (6,849) (29,799) (6,849) Amounts reclassified into income 258 243 1,417 483 Employee Benefit Plan Items, Net: Amounts reclassified into income (2,374) 85 (126) 404 Net change in Accumulated other comprehensive income (loss) $ 31,995 $ 7,558 $ (55,278) $ 18,740 (a) Includes intra-entity foreign currency transactions that are of a long-term investment nature of $(5,183) and $4,134 for the second quarter and first six months of 2020 and $(9,079) and $780 for the second quarter and first six months of 2019, respectively. Share-Repurchase Program The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of June 27, 2020: Month of Board Approval Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate December 2016 $ 400,000 $ 400,000 $ — December 2018 600,000 486,572 113,428 Total $ 1,000,000 $ 886,572 $ 113,428 The amounts repurchased during 2020 were pursuant to the company’s $600,000 share-repurchase program that was approved by the Board on December 11, 2018. During July 2020, the company's Board approved an additional $600,000 share-repurchase program. The 2018 and 2020 share-repurchase programs have no fixed expiration dates and are discretionary in nature. The Board has the ability to modify, suspend, or discontinue the programs at any time. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies [Text Block] | Contingencies Environmental Matters In connection with the purchase of Wyle Electronics ("Wyle") in August 2000, the company acquired certain of the then outstanding obligations of Wyle, including Wyle's indemnification obligations to the purchasers of its Wyle Laboratories division for environmental clean-up costs associated with any then existing contamination or violation of environmental regulations. Under the terms of the company's purchase of Wyle from the sellers, the sellers agreed to indemnify the company for certain costs associated with the Wyle environmental obligations, among other things. In 2012, the company entered into a settlement agreement with the sellers pursuant to which the sellers paid $110,000 and the company released the sellers from their indemnification obligation. As part of the settlement agreement the company accepted responsibility for any potential subsequent costs incurred related to the Wyle matters. The company is aware of two Wyle Laboratories facilities (in Huntsville, Alabama and Norco, California) at which contaminated groundwater was identified and will require environmental remediation. In addition, the company was named as a defendant in several lawsuits related to the Norco facility and a third site in El Segundo, California which have now been settled to the satisfaction of the parties. The company expects these environmental liabilities to be resolved over an extended period of time. Costs are recorded for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accruals for environmental liabilities are adjusted periodically as facts and circumstances change, assessment and remediation efforts progress, or as additional technical or legal information becomes available. Environmental liabilities are difficult to assess and estimate due to various unknown factors such as the timing and extent of remediation, improvements in remediation technologies, and the extent to which environmental laws and regulations may change in the future. Accordingly, the company cannot presently estimate the ultimate potential costs related to these sites until such time as a substantial portion of the investigation at the sites is completed and remedial action plans are developed and, in some instances, implemented. To the extent that future environmental costs exceed amounts currently accrued by the company, net income would be adversely impacted and such impact could be material. Accruals for environmental liabilities are included in “Accrued expenses” and “Other liabilities” in the company’s consolidated balance sheets. The company has determined that there is no amount within the environmental liability range that is a better estimate than any other amount, and therefore has recorded the accruals at the minimum amount of the ranges. As successor-in-interest to Wyle, the company is the beneficiary of various Wyle insurance policies that covered liabilities arising out of operations at Norco and Huntsville. To date, the company has recovered approximately $37,000 from certain insurance carriers relating to environmental clean-up matters at the Norco site. The company is considering the best way to pursue its potential claims against insurers regarding liabilities arising out of operations at Huntsville. The resolution of these matters will likely take several years. The company has not recorded a receivable for any potential future insurance recoveries related to the Norco and Huntsville environmental matters, as the realization of the claims for recovery are not deemed probable at this time. Environmental Matters - Huntsville In February 2015, the company and the Alabama Department of Environmental Management (“ADEM”) finalized and executed a consent decree in connection with the Huntsville, Alabama site. Characterization of the extent of contaminated soil and groundwater is complete and has been approved by ADEM. Health-risk evaluations and a Corrective Action Development Plan were approved by ADEM in 2018, opening the way for pilot testing of on-site remediation in late 2019. Pilot testing is currently underway. Approximately $6,900 was spent to date and the company currently anticipates no additional investigative and related expenditures. The cost of subsequent remediation at the site is estimated to be between $3,500 and $10,000. Despite the amount of work undertaken and planned to date, the company is unable to estimate any potential costs in addition to those discussed above because the complete scope of the work is not yet known, and, accordingly, the associated costs have yet to be determined. Environmental Matters - Norco In October 2003, the company entered into a consent decree with Wyle Laboratories and the California Department of Toxic Substance Control (the “DTSC”) in connection with the Norco site. Subsequent to the decree, a Remedial Investigation Work Plan was approved by DTSC in April 2005, the required investigations were performed, and a final Remedial Investigation Report was submitted early in 2008. In 2008, a hydraulic containment system (“HCS”) was installed as an interim remedial measure to capture and treat groundwater before it moves into the adjacent off-site area. In September 2013, the DTSC approved the final Remedial Action Plan (“RAP”) for actions in five on-site areas and one off-site area. As of 2018, the remediation measures described in the RAP had been implemented and were being monitored. A Five Year Review (“FYR”) of the HCS submitted to DTSC in December 2016 found that while significant progress was made in on-site and off-site groundwater remediation, contaminants were not sufficiently reduced in a key off-site area identified in the RAP. This exception triggered the need for additional off-site remediation that began in 2018 and was completed in mid-2019. Routine progress monitoring of groundwater and soil gas continue on-site and off-site. Approximately $75,100 was spent to date on remediation, project management, regulatory oversight, and investigative and feasibility study activities. The company currently estimates that these activities will give rise to an additional $6,800 to $17,700. Project management and regulatory oversight include costs incurred by project consultants for project management and costs billed by DTSC to provide regulatory oversight. Despite the amount of work undertaken and planned to date, the company is unable to estimate any potential costs in addition to those discussed above because the complete scope of the work under the RAP is not yet known, and, accordingly, the associated costs have yet to be determined. Other In 2019, the company determined that from 2015 to 2019 a limited number of non-executive employees, without first obtaining required authorization from the company or the United States government, had facilitated product shipments with an aggregate total invoiced value of approximately $4,770, to resellers for reexports to persons covered by the Iran Threat Reduction and Syria Human Rights Act of 2012 or other United States sanctions and export control laws. The company has voluntarily reported these activities to the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) and the United States Department of Commerce’s Bureau of Industry and Security (“BIS”), and conducted an internal investigation and terminated or disciplined the employees involved. BIS has closed its investigation and issued the company a warning letter without referring the matter for further proceedings. No penalties have been imposed by BIS. The company has cooperated fully and intends to continue to cooperate fully with OFAC with respect to its review, which may result in the imposition of penalties, which we are currently not able to estimate. During the first six months of 2020, the company recorded reserves and other adjustments of approximately $32,700 primarily related to foreign tax and other loss contingencies. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information [Text Block] | Segment and Geographic InformationThe company is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company distributes electronic components to original equipment manufacturers and contract manufacturers through its global components business segment and provides enterprise computing solutions to value-added resellers and managed service providers through its global ECS business segment. As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, selected fixed assets and related depreciation, as well as borrowings, are not directly attributable to the individual operating segments and are included in the corporate business segment. Sales, by segment by geographic area, are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Components: Americas $ 1,488,901 $ 1,876,799 $ 3,041,699 $ 3,783,828 EMEA (a) 1,118,417 1,415,888 2,428,407 2,919,254 Asia/Pacific 2,113,937 1,978,248 3,801,750 3,759,780 Global components $ 4,721,255 $ 5,270,935 $ 9,271,856 $ 10,462,862 ECS: Americas $ 1,223,256 $ 1,372,456 $ 2,351,944 $ 2,573,363 EMEA (a) 661,983 701,157 1,364,111 1,464,314 Global ECS $ 1,885,239 $ 2,073,613 $ 3,716,055 $ 4,037,677 Consolidated (b) $ 6,606,494 $ 7,344,548 $ 12,987,911 $ 14,500,539 (a) Defined as Europe, the Middle East, and Africa. (b) Includes sales related to the United States of $2,463,885 and $4,875,972 for the second quarter and first six months of 2020 and $2,902,393 and $5,684,428 for the second quarter and first six months 2019, respectively. Operating income (loss), by segment, are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Operating income (loss): Global components (c) $ 181,836 $ (566,116) $ 346,603 $ (331,584) Global ECS (d) 72,921 98,388 115,354 185,106 Corporate (e) (58,144) (81,462) (127,040) (157,152) Consolidated $ 196,613 $ (549,190) $ 334,917 $ (303,630) (c) Global components operating income includes impairments of $697,993 for the second quarter and first six months 2019. Also included in the second quarter of 2019 is a non-recurring charge of $20,114 related to a subset of inventory held by its digital business and a non-recurring charge of $15,851 related to the receivables and inventory of its financing solutions business. During the second quarter of 2019 the company made the decision to narrow its digital inventory offerings and will no longer provide notes to its components customers. (d) Global ECS operating income for the first six months of 2020 includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. Global ECS operating income for the second quarter of 2020 includes $4,918 in impairment charges related to various long-lived assets. (e) Includes restructuring, integration, and other charges of $650 and $9,788 for the second quarter and first six months of 2020 and $19,912 and $31,572 for the second quarter and first six months 2019, respectively. Also included in the first six months of 2019 was a net loss on disposition of businesses of $866. Total assets, by segment, is as follows: June 27, December 31, Global components $ 10,466,895 $ 10,253,006 Global ECS 4,403,385 5,479,919 Corporate 734,181 667,871 Consolidated $ 15,604,461 $ 16,400,796 Net property, plant, and equipment, by geographic area, is as follows: June 27, December 31, Americas (f) $ 566,705 $ 594,357 EMEA 177,158 157,550 Asia/Pacific 54,327 51,203 Consolidated $ 798,190 $ 803,110 (f) Includes net property, plant, and equipment related to the United States of $564,435 and $591,818 at June 27, 2020 and December 31, 2019, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure | Income Taxes The principal causes of the difference between the U.S. federal statutory tax rate of 21% and effective income tax rates are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Provision (benefit) at statutory tax rate $ 36,580 $ (126,025) $ 52,886 $ (84,798) State taxes, net of federal benefit 2,083 (11,533) 4,091 (7,504) International effective tax rate differential 2,147 3,238 915 8,217 U.S. Tax on foreign earnings 30 4,953 3,166 9,880 Changes in tax accruals 1,387 902 7,595 920 Tax credits (756) (1,971) (1,511) (4,001) Non-deductible portion of impairment of goodwill — 76,153 — 76,153 Other (617) 1,914 1,604 2,671 Provision (benefit) for income taxes $ 40,854 $ (52,369) $ 68,746 $ 1,538 |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 27, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for Credit Losses Policy [Policy Text Block] | Trade accounts and notes receivable are reported at amortized cost, net of the allowance for credit losses in the consolidated balance sheets. The allowance for credit losses is a valuation account that is deducted from the receivables' amortized cost basis to present the net amount expected to be collected. Receivables are written off against the allowance when management believes the receivable balance is confirmed to be uncollectible. Management estimates the allowance for credit losses using relevant available information about expected credit losses and an age-based reserve model. Inputs to the model include information about historical credit losses, customer credit ratings, past events, current conditions, and reasonable and supportable forecasts. Adjustments to historical loss information are made for differences in current receivable-specific risk characteristics such as changes in the economic and industry environment, or other relevant factors. Expected credit losses are estimated on a collective (pool) basis, when similar risk characteristics exist, based on customer credit ratings, which include both externally acquired as well as internally determined credit ratings. Receivables that do not share risk characteristics are evaluated on an individual basis. |
Basis of Accounting Policy | The accompanying consolidated financial statements of Arrow Electronics, Inc. (the "company") were prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year. These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2019, as filed in the company’s Annual Report on Form 10-K. |
Fiscal Period Policy | The company operates on a quarterly calendar that closes on the Saturday closest to the end of the calendar quarter, except for the fourth quarter, which closes on December 31, 2020. |
Goodwill and Intangible Assets Policy | Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. |
Fair Value of Debt Policy | The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 5.125% notes due March 2021, North American asset securitization program, commercial paper, and other obligations approximate their fair value. |
Fair Value of Financial Instruments Policy | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill of companies acquired | Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global Global ECS Total Balance as of December 31, 2019 (a) $ 883,496 $ 1,177,826 $ 2,061,322 Foreign currency translation adjustment (1,363) (7,831) (9,194) Balance as of June 27, 2020 (a) $ 882,133 $ 1,169,995 $ 2,052,128 (a) The total carrying value of goodwill as of June 27, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
Schedule of Intangible assets, net | Intangible assets, net, are comprised of the following as of June 27, 2020: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 11 years $ 350,931 $ (162,429) $ 188,502 Amortizable trade name 8 years 74,007 (12,981) 61,026 $ 424,938 $ (175,410) $ 249,528 Intangible assets, net, are comprised of the following as of December 31, 2019: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 354,305 $ (148,632) $ 205,673 Amortizable trade name 8 years 76,407 (10,177) 66,230 $ 430,712 $ (158,809) $ 271,903 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | The following table presents the company’s investment in affiliated companies: June 27, December 31, Marubun/Arrow $ 71,957 $ 76,574 Other 8,799 10,368 $ 80,756 $ 86,942 |
Equity in Earnings of Affiliated Companies | The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Marubun/Arrow $ (217) $ 227 $ 228 $ 1,453 Other (66) 155 19 (2,538) $ (283) $ 382 $ 247 $ (1,085) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Text Block] | Accounts receivable, net, consists of the following: June 27, December 31, Accounts receivable $ 8,052,930 $ 8,552,120 Allowances for doubtful accounts (98,892) (69,433) $ 7,954,038 $ 8,482,687 The company has notes receivable with certain customers, which are included in “Accounts receivable, net” in the company’s consolidated balance sheets. Allowances for doubtful accounts consists of the following: Balance at December 31, 2019 $ 69,433 Effect of adoption of ASU No. 2016-13 (Note B) 47,011 Charged to income 19,475 Translation Adjustments (1,817) Writeoffs (35,210) Balance at June 27, 2020 $ 98,892 |
ST Debt (Tables)
ST Debt (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
ST Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings, including current portion of long-term debt, consists of the following: June 27, December 31, 6.00% notes, due April 2020 $ — $ 209,322 5.125% notes, due March 2021 130,764 — Borrowings on lines of credit 75,000 60,000 Other short-term borrowings 38,559 62,109 $ 244,323 $ 331,431 |
LT Debt (Tables)
LT Debt (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Schedule of Long-term Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: June 27, December 31, Revolving credit facility $ — $ 10,000 North American asset securitization program — 400,000 5.125% notes, due 2021 — 130,691 3.50% notes, due 2022 348,499 348,088 4.50% notes, due 2023 298,421 298,148 3.25% notes, due 2024 495,536 495,045 4.00% notes, due 2025 346,680 346,368 7.50% senior debentures, due 2027 109,898 109,857 3.875% notes, due 2028 494,933 494,648 Other obligations with various interest rates and due dates 4,402 7,284 $ 2,098,369 $ 2,640,129 |
Schedule of Fair Value of Debt [Text Block] | The estimated fair market value of long-term debt, using quoted market prices, is as follows: June 27, December 31, 3.50% notes, due 2022 $ 360,000 $ 358,500 4.50% notes, due 2023 319,500 316,000 3.25% notes, due 2024 528,000 515,500 4.00% notes, due 2025 375,500 367,000 7.50% senior debentures, due 2027 129,500 135,000 3.875% notes, due 2028 521,000 516,500 |
Financial Instruments Measure_2
Financial Instruments Measured at Fair Value (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Fair Value Disclosures | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis Table [Text Block] | The following table presents assets (liabilities) measured at fair value on a recurring basis at June 27, 2020: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 21,480 $ — $ — $ 21,480 Equity investments (b) Other assets 37,903 — — 37,903 Interest rate swaps Other assets — 558 — 558 Interest rate swaps Other liabilities — (3,029) — (3,029) Foreign exchange contracts Other current assets/ — 47,867 — 47,867 Foreign exchange contracts Accrued expenses — (2,595) — (2,595) $ 59,383 $ 42,801 $ — $ 102,184 The following table presents assets (liabilities) measured at fair value on a recurring basis at December 31, 2019: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 18,579 $ — $ — $ 18,579 Equity investments (b) Other assets 44,677 — — 44,677 Interest rate swaps Other liabilities — (11,574) — (11,574) Foreign exchange contracts Other current assets/ — 24,092 — 24,092 Foreign exchange contracts Accrued expenses — (2,132) — (2,132) $ 63,256 $ 10,386 $ — $ 73,642 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. (b) The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized gain of $4,964 and an unrealized loss of $5,031 for the second quarter and first six months of 2020, respectively, on equity securities held at the end of the quarter. The company recorded an unrealized gain of $8 and $1,842 for the second quarter and first six months of 2019, respectively, on equity securities held at the end of the quarter. |
Description of Derivative Hedging Instruments | At June 27, 2020 the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount Weighted Average Interest Rate Date Range of Forecasted Transaction April 2020 December 2024 $300,000 0.97% Jan 2023 - Dec 2025 May 2020 June 2022 $300,000 0.90% Jan 2021 - Jun 2023 At December 31, 2019 the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount Weighted Average Interest Rate Date Range of Forecasted Transaction May 2019 June 2020 $300,000 2.33% Sep 2019 - Jun 2020 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block] | The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Gain (Loss) Recognized in Income Foreign exchange contracts $ 4,128 $ 774 $ 8,621 $ 4,263 Interest rate swaps (338) (322) (1,867) (641) Total $ 3,790 $ 452 $ 6,754 $ 3,622 Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax Foreign exchange contracts $ 897 $ 1,294 $ 16,997 $ 7,247 Interest rate swaps (243) (6,849) (29,799) (6,849) Total $ 654 $ (5,555) $ (12,802) $ 398 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |
Fair Value Disclosures | |
Description of Derivative Hedging Instruments | During the first quarter of 2019, the company entered into a series of foreign exchange contracts to sell Euro and buy United States Dollars, with various maturity dates as noted in the table below: Maturity Date Notional Amount March 2023 EUR 50,000 September 2024 EUR 50,000 April 2025 EUR 100,000 January 2028 EUR 100,000 Total EUR 300,000 |
Restructuring, Integration, a_2
Restructuring, Integration, and Other Charges (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs [Text Block] | The following table presents the components of the restructuring, integration, and other charges: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Restructuring and integration charges - current period actions $ 1,284 $ 5,071 $ 4,989 $ 8,078 Restructuring and integration charges (credits) - actions taken in prior periods (2,054) 1,424 (533) 1,363 Other charges 1,420 13,417 5,332 22,131 $ 650 $ 19,912 $ 9,788 $ 31,572 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Losses) Per Share, Basic and Diluted [Table Text Block] | The following table presents the computation of net income (loss) per share on a basic and diluted basis (shares in thousands): Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Net income (loss) attributable to shareholders $ 132,804 $ (548,966) $ 182,307 $ (408,231) Weighted-average shares outstanding - basic 78,677 84,652 79,527 85,022 Net effect of various dilutive stock-based compensation awards 549 — 586 — Weighted-average shares outstanding - diluted $ 79,226 $ 84,652 $ 80,113 $ 85,022 Net income (loss) per share: Basic $ 1.69 $ (6.48) $ 2.29 $ (4.80) Diluted (a) $ 1.68 $ (6.48) $ 2.28 $ (4.80) (a) Stock-based compensation awards for the issuance of 1,625 and 1,471 shares for the second quarter and first six months of 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. As the company reported a net loss attributable to shareholders for the second quarter and first six months of 2019, basic and diluted net loss per share attributable to shareholders are the same and stock-based compensation awards for the issuance of 1,961 and 1,810 shares, respectively, were excluded from the computation of net loss per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity Components
Shareholders' Equity Components of Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Changes in Components of Accumulated Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents the changes in Accumulated other comprehensive loss, excluding noncontrolling interests: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Foreign Currency Translation Adjustment and Other: Other comprehensive gain (loss) before reclassifications (a) $ 36,940 $ 15,560 $ (40,267) $ 20,836 Amounts reclassified into income (555) (54) (449) (240) Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income (loss) before reclassifications (361) 224 17,286 6,816 Amounts reclassified into income (1,670) (1,651) (3,340) (2,710) Unrealized Loss on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive loss before reclassifications (243) (6,849) (29,799) (6,849) Amounts reclassified into income 258 243 1,417 483 Employee Benefit Plan Items, Net: Amounts reclassified into income (2,374) 85 (126) 404 Net change in Accumulated other comprehensive income (loss) $ 31,995 $ 7,558 $ (55,278) $ 18,740 |
Share-Repurchase Programs [Table Text Block] | The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of June 27, 2020: Month of Board Approval Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate December 2016 $ 400,000 $ 400,000 $ — December 2018 600,000 486,572 113,428 Total $ 1,000,000 $ 886,572 $ 113,428 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Text Block] | Sales, by segment by geographic area, are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Components: Americas $ 1,488,901 $ 1,876,799 $ 3,041,699 $ 3,783,828 EMEA (a) 1,118,417 1,415,888 2,428,407 2,919,254 Asia/Pacific 2,113,937 1,978,248 3,801,750 3,759,780 Global components $ 4,721,255 $ 5,270,935 $ 9,271,856 $ 10,462,862 ECS: Americas $ 1,223,256 $ 1,372,456 $ 2,351,944 $ 2,573,363 EMEA (a) 661,983 701,157 1,364,111 1,464,314 Global ECS $ 1,885,239 $ 2,073,613 $ 3,716,055 $ 4,037,677 Consolidated (b) $ 6,606,494 $ 7,344,548 $ 12,987,911 $ 14,500,539 (a) Defined as Europe, the Middle East, and Africa. (b) Includes sales related to the United States of $2,463,885 and $4,875,972 for the second quarter and first six months of 2020 and $2,902,393 and $5,684,428 for the second quarter and first six months 2019, respectively. Operating income (loss), by segment, are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Operating income (loss): Global components (c) $ 181,836 $ (566,116) $ 346,603 $ (331,584) Global ECS (d) 72,921 98,388 115,354 185,106 Corporate (e) (58,144) (81,462) (127,040) (157,152) Consolidated $ 196,613 $ (549,190) $ 334,917 $ (303,630) (c) Global components operating income includes impairments of $697,993 for the second quarter and first six months 2019. Also included in the second quarter of 2019 is a non-recurring charge of $20,114 related to a subset of inventory held by its digital business and a non-recurring charge of $15,851 related to the receivables and inventory of its financing solutions business. During the second quarter of 2019 the company made the decision to narrow its digital inventory offerings and will no longer provide notes to its components customers. (d) Global ECS operating income for the first six months of 2020 includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. Global ECS operating income for the second quarter of 2020 includes $4,918 in impairment charges related to various long-lived assets. (e) Includes restructuring, integration, and other charges of $650 and $9,788 for the second quarter and first six months of 2020 and $19,912 and $31,572 for the second quarter and first six months 2019, respectively. Also included in the first six months of 2019 was a net loss on disposition of businesses of $866. |
Reconciliation of Assets from Segment to Consolidated [Text Block] | Total assets, by segment, is as follows: June 27, December 31, Global components $ 10,466,895 $ 10,253,006 Global ECS 4,403,385 5,479,919 Corporate 734,181 667,871 Consolidated $ 15,604,461 $ 16,400,796 |
Disclosure on Geographic Areas, Long-Lived Assets | Net property, plant, and equipment, by geographic area, is as follows: June 27, December 31, Americas (f) $ 566,705 $ 594,357 EMEA 177,158 157,550 Asia/Pacific 54,327 51,203 Consolidated $ 798,190 $ 803,110 (f) Includes net property, plant, and equipment related to the United States of $564,435 and $591,818 at June 27, 2020 and December 31, 2019, respectively. |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The principal causes of the difference between the U.S. federal statutory tax rate of 21% and effective income tax rates are as follows: Quarter Ended Six Months Ended June 27, June 29, June 27, June 29, Provision (benefit) at statutory tax rate $ 36,580 $ (126,025) $ 52,886 $ (84,798) State taxes, net of federal benefit 2,083 (11,533) 4,091 (7,504) International effective tax rate differential 2,147 3,238 915 8,217 U.S. Tax on foreign earnings 30 4,953 3,166 9,880 Changes in tax accruals 1,387 902 7,595 920 Tax credits (756) (1,971) (1,511) (4,001) Non-deductible portion of impairment of goodwill — 76,153 — 76,153 Other (617) 1,914 1,604 2,671 Provision (benefit) for income taxes $ 40,854 $ (52,369) $ 68,746 $ 1,538 |
Impact of Recently Issued Acc_2
Impact of Recently Issued Accounting Standards (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, before Tax | $ 47,011 |
Cumulative Effect on Retained Earnings, net of Tax | 35,935 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, net of Tax | $ 35,935 |
Impairment of Long-Lived Asse_2
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 27, 2020 | Jun. 29, 2019 | |
Impairment or Disposal of Tangible Assets Disclosure [Abstract] | ||
Impairment of Long-Lived Assets Held-for-use | $ 74,908 | |
Impairment of Long-Lived Assets to be Disposed of | $ 4,918 | $ 6,910 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2019 | Jun. 27, 2020 | Mar. 28, 2020 | ||
Goodwill [Roll Forward] | ||||
Balance as of December 31, 2019 | [1] | $ 2,061,322 | ||
Foreign currency translation adjustment | (9,194) | |||
Balance as of June 27, 2020 | [1] | 2,052,128 | ||
Accumulated impairment charges | 1,588,955 | |||
Global Components | ||||
Goodwill [Roll Forward] | ||||
Balance as of December 31, 2019 | [1] | 883,496 | ||
Foreign currency translation adjustment | (1,363) | |||
Balance as of June 27, 2020 | [1] | 882,133 | ||
Accumulated impairment charges | 1,287,100 | |||
Global ECS | ||||
Goodwill [Roll Forward] | ||||
Balance as of December 31, 2019 | [1] | 1,177,826 | ||
Foreign currency translation adjustment | (7,831) | |||
Balance as of June 27, 2020 | [1] | 1,169,995 | ||
Accumulated impairment charges | $ 301,855 | |||
Americas | Global Components | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Impairment Loss | $ 509,000 | |||
Balance as of June 27, 2020 | 600,000 | |||
Goodwill, Impairment Loss, Net of Tax | 457,806 | |||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 10.00% | |||
Americas | Asia Pacific | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Impairment Loss, Net of Tax | $ 61,175 | |||
[1] | The total carrying value of goodwill as of June 27, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
Goodwill - Intangibles (Details
Goodwill - Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | $ 424,938 | $ 424,938 | $ 430,712 | |||
Accumulated Amortization | (175,410) | (175,410) | (158,809) | |||
Net | 249,528 | 249,528 | $ 271,903 | |||
Amortization of Intangible Assets | $ 9,734 | $ 11,413 | 19,689 | $ 23,343 | ||
Amortizable trade name | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | $ 101,000 | |||||
Impairment of Intangible Assets, Finite-lived | 55,000 | $ 55,000 | ||||
Impairment of Intangible Assets (Excluding Goodwill) | 46,000 | |||||
Customer relationships | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Life | 11 years | 12 years | ||||
Gross Carrying Amount | $ 350,931 | 350,931 | $ 354,305 | |||
Accumulated Amortization | (162,429) | (162,429) | (148,632) | |||
Net | $ 188,502 | 188,502 | $ 205,673 | |||
Amortizable trade name | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted-Average Life | 8 years | 8 years | ||||
Gross Carrying Amount | $ 74,007 | 74,007 | $ 76,407 | |||
Accumulated Amortization | (12,981) | (12,981) | (10,177) | |||
Net | $ 61,026 | $ 61,026 | $ 66,230 | |||
Net of Tax [Member] | Amortizable trade name | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 34,653 |
Investments in Affiliated Com_3
Investments in Affiliated Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investments in affiliated companies | $ 80,756 | $ 80,756 | $ 86,942 | ||
Equity in earnings (losses) of affiliated companies | (283) | $ 382 | 247 | $ (1,085) | |
Equity Method Investment Pro Rata Share of Debt Obligations of Joint Venture | 3,100 | 3,100 | 1,700 | ||
Marubun Arrow [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in affiliated companies | 71,957 | 71,957 | 76,574 | ||
Equity in earnings (losses) of affiliated companies | $ (217) | 227 | $ 228 | 1,453 | |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% | |||
Other joint ventures [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investments in affiliated companies | $ 8,799 | $ 8,799 | $ 10,368 | ||
Equity in earnings (losses) of affiliated companies | $ (66) | $ 155 | $ 19 | $ (2,538) | |
Equity Method Investment, Ownership Percentage | 50.00% | 50.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) € in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 27, 2020USD ($) | Jun. 27, 2020EUR (€) | Mar. 28, 2020USD ($) | Jun. 27, 2020USD ($) | Jun. 27, 2020EUR (€) | Jun. 27, 2020USD ($) | Jun. 27, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Accounts receivable | $ 8,052,930 | $ 8,552,120 | ||||||
Allowances for doubtful accounts | $ (98,892) | $ (69,433) | $ (98,892) | (98,892) | (69,433) | |||
Accounts receivable, net | 7,954,038 | $ 8,482,687 | ||||||
Agreement Amount with Purchaser to Transfer Financial Assets Accounted For As Sales | € | € 400,000 | |||||||
Accounts receivables sold to unaffiliated financial institutions | 448,913 | € 410,770 | 977,366 | € 899,491 | ||||
Receivables sold to unaffiliated financial institutions that were uncollected | 324,227 | 292,403 | ||||||
Collateralized accounts receivable | $ 192,554 | € 173,786 | ||||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||||
Balance at December 31, 2019 | 69,433 | 69,433 | ||||||
Effect of adoption of ASU No. 2016-13 (Note B) | $ 47,011 | |||||||
Charged to income | 19,475 | |||||||
Translation adjustments | (1,817) | |||||||
Writeoffs | (35,210) | |||||||
Balance at June 27, 2020 | $ 98,892 | $ 98,892 |
Debt - ST Debt (Details)
Debt - ST Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Short-term Debt [Line Items] | |||
Debt, Current | $ 244,323 | $ 331,431 | |
Redemption of notes | 209,366 | $ 0 | |
6.00% notes, due April 2020 | |||
Short-term Debt [Line Items] | |||
Debt, Current | $ 0 | 209,322 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | ||
Redemption of notes | $ 209,366 | ||
Borrowings on lines of credit | |||
Short-term Debt [Line Items] | |||
Debt, Current | 75,000 | $ 60,000 | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.55% | 2.61% | |
Commercial paper | |||
Short-term Debt [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.01% | 2.24% | |
Short-term borrowings in various countries | |||
Short-term Debt [Line Items] | |||
Debt, Current | $ 38,559 | $ 62,109 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 3.27% | 2.76% | |
5.125% notes, due 2021 | |||
Short-term Debt [Line Items] | |||
Debt, Current | $ 130,764 | $ 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% |
Debt - LT Debt (Details)
Debt - LT Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 2,098,369 | $ 2,098,369 | $ 2,640,129 | ||
Accounts receivable, net | 7,954,038 | 7,954,038 | 8,482,687 | ||
Interest and dividend income | 3,461 | $ 14,492 | 13,426 | $ 28,537 | |
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | 0 | 0 | 10,000 | ||
Maximum Borrowing Capacity | $ 2,000,000 | $ 2,000,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 1.24% | 1.24% | |||
Debt Instrument, Basis Spread on Variable Rate | 1.18% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||||
North American Asset securitization program | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 0 | 400,000 | ||
Maximum Borrowing Capacity | $ 1,200,000 | $ 1,200,000 | |||
Debt Instrument, Interest Rate, Effective Percentage | 0.87% | 0.87% | |||
Debt Instrument, Basis Spread on Variable Rate | 0.40% | ||||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||||
Accounts receivable, net | $ 2,073,200 | $ 2,073,200 | 2,217,800 | ||
5.125% notes, due 2021 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 0 | $ 0 | 130,691 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | 5.125% | |||
3.50% notes, due 2022 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 348,499 | $ 348,499 | 348,088 | ||
Debt Instrument, Fair Value Disclosure | $ 360,000 | $ 360,000 | 358,500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | |||
4.50% notes, due 2023 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 298,421 | $ 298,421 | 298,148 | ||
Debt Instrument, Fair Value Disclosure | $ 319,500 | $ 319,500 | 316,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | |||
3.25% notes, due 2024 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 495,536 | $ 495,536 | 495,045 | ||
Debt Instrument, Fair Value Disclosure | $ 528,000 | $ 528,000 | 515,500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | 3.25% | |||
4.00% notes, due 2025 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 346,680 | $ 346,680 | 346,368 | ||
Debt Instrument, Fair Value Disclosure | $ 375,500 | $ 375,500 | 367,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | |||
7.50% senior debentures, due 2027 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 109,898 | $ 109,898 | 109,857 | ||
Debt Instrument, Fair Value Disclosure | $ 129,500 | $ 129,500 | 135,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | 7.50% | |||
3.875% notes, due 2028 | |||||
Debt Instrument [Line Items] | |||||
Long-term debt | $ 494,933 | $ 494,933 | 494,648 | ||
Debt Instrument, Fair Value Disclosure | $ 521,000 | $ 521,000 | 516,500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | 3.875% | |||
Other obligations with various interest rates and due dates | |||||
Debt Instrument [Line Items] | |||||
Other Notes Payable, Noncurrent | $ 4,402 | $ 4,402 | $ 7,284 |
Financial Instruments Measure_3
Financial Instruments Measured at Fair Value - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized Gain on Securities | $ 4,964 | $ 8 | $ 1,842 | |||
Unrealized Loss on Securities | $ (5,031) | |||||
Fair Value, Recurring [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and Cash Equivalents | 21,480 | 21,480 | $ 18,579 | |||
Equity investments | 37,903 | 37,903 | 44,677 | |||
Interest rate swaps - asset | 558 | 558 | ||||
Interest rate swaps- liability | (3,029) | (3,029) | (11,574) | |||
Foreign exchange contracts - asset | 47,867 | 47,867 | 24,092 | |||
Foreign exchange contracts - liability | (2,595) | (2,595) | (2,132) | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 102,184 | 102,184 | 73,642 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and Cash Equivalents | [1] | 21,480 | 21,480 | 18,579 | ||
Equity investments | [2] | 37,903 | 37,903 | 44,677 | ||
Interest rate swaps - asset | 0 | 0 | ||||
Interest rate swaps- liability | 0 | 0 | 0 | |||
Foreign exchange contracts - asset | 0 | 0 | 0 | |||
Foreign exchange contracts - liability | 0 | 0 | 0 | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 59,383 | 59,383 | 63,256 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | |||
Equity investments | 0 | 0 | 0 | |||
Interest rate swaps - asset | 558 | 558 | ||||
Interest rate swaps- liability | (3,029) | (3,029) | (11,574) | |||
Foreign exchange contracts - asset | 47,867 | 47,867 | 24,092 | |||
Foreign exchange contracts - liability | (2,595) | (2,595) | (2,132) | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 42,801 | 42,801 | 10,386 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Cash and Cash Equivalents | 0 | 0 | 0 | |||
Equity investments | 0 | 0 | 0 | |||
Interest rate swaps - asset | 0 | 0 | ||||
Interest rate swaps- liability | 0 | 0 | 0 | |||
Foreign exchange contracts - asset | 0 | 0 | 0 | |||
Foreign exchange contracts - liability | 0 | 0 | 0 | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | $ 0 | $ 0 | $ 0 | |||
[1] | Cash equivalents include highly liquid investments with an original maturity of less than three months. | |||||
[2] | The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized gain of $4,964 and an unrealized loss of $5,031 for the second quarter and first six months of 2020, respectively, on equity securities held at the end of the quarter. The company recorded an unrealized gain of $8 and $1,842 for the second quarter and first six months of 2019, respectively, on equity securities held at the end of the quarter. |
Financial Instruments Measure_4
Financial Instruments Measured at Fair Value - Derivatives (Details) € in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Jun. 27, 2020USD ($) | Jun. 29, 2019USD ($) | Jun. 27, 2020EUR (€) | Dec. 31, 2019USD ($) | |
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 1,031,031 | $ 1,031,031 | $ 929,966 | |||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (2,031) | $ (1,427) | 13,946 | $ 4,106 | ||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments, after Tax | 519 | 3,634 | 18,513 | 4,776 | ||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3,790 | 452 | 6,754 | 3,622 | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 654 | (5,555) | (12,802) | 398 | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 15 | (6,606) | (28,382) | (6,366) | ||
Payments for Derivative Instrument, Financing Activities | 48,378 | 0 | ||||
Interest Rate Swap [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (338) | (322) | (1,867) | (641) | ||
Foreign Exchange Contract [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 4,128 | 774 | 8,621 | 4,263 | ||
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 897 | 1,294 | 16,997 | 7,247 | ||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (361) | 224 | 17,286 | 6,816 | ||
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | 2,201 | 2,192 | 4,402 | 3,598 | ||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | 44,504 | 44,504 | $ 21,718 | |||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (243) | (6,849) | (29,799) | |||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | (243) | $ (6,849) | (29,799) | $ (6,849) | ||
Maturity March 2023 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | € 50,000 | |||||
Maturity September 2024 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 50,000 | |||||
Maturity April 2025 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 100,000 | |||||
Maturity January 2028 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 100,000 | |||||
All Maturities [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | € 300,000 | |||||
May 2019 | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 300,000 | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 2.33% | 2.33% | 2.33% | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Before Tax | $ (1,194) | |||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | $ (35,796) | (35,796) | ||||
Payments for Derivative Instrument, Financing Activities | 48,378 | |||||
May 2020 Swaps | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 300,000 | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 0.90% | 0.90% | 0.90% | |||
April 2020 Swaps | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 300,000 | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 0.97% | 0.97% | 0.97% |
Restructuring, Integration, a_3
Restructuring, Integration, and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring, integration, and other charges | $ 650 | $ 19,912 | $ 9,788 | $ 31,572 |
Relocation and other centralization charges | 3,174 | 8,733 | ||
Other charges | 1,420 | 13,417 | 5,332 | 22,131 |
Restructuring Charges From Current Period [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and integration charges (credits) | 1,284 | 5,071 | 4,989 | 8,078 |
Restructuring Charges From Prior Periods [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and integration charges (credits) | (2,054) | $ 1,424 | (533) | $ 1,363 |
Expense reduction program | Personnel charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Other charges | $ 591 | $ 3,030 |
Restructuring, Integration, a_4
Restructuring, Integration, and Other Charges - Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 27, 2020 | Jun. 27, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and integration accrual | $ 6,937 | $ 6,937 | $ 9,667 |
Payments for restructuring and integration | (2,250) | $ (6,413) | |
Number of Years for the Accrual to Be Spent | 2 years | ||
Accrued expenses | 920,929 | $ 920,929 | $ 880,507 |
Expense reduction program | Personnel charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of Years for the Accrual to Be Spent | 5 years | ||
Accrued expenses | $ 17,314 | $ 17,314 |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | ||
Earnings (Losses) Per Share, Diluted [Line Items] | |||||
Net income (loss) attributable to shareholders | $ 132,804 | $ (548,966) | $ 182,307 | $ (408,231) | |
Weighted-average shares outstanding - basic | 78,677 | 84,652 | 79,527 | 85,022 | |
Net effect of various dilutive stock-based compensation awards | 549 | 0 | 586 | 0 | |
Weighted-average shares outstanding - diluted | 79,226 | 84,652 | 80,113 | 85,022 | |
Net income (loss) per share: | |||||
Basic | $ 1.69 | $ (6.48) | $ 2.29 | $ (4.80) | |
Diluted | [1] | $ 1.68 | $ (6.48) | $ 2.28 | $ (4.80) |
Share-based Payment Arrangement [Member] | |||||
Net income (loss) per share: | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,625 | 1,961 | 1,471 | 1,810 | |
[1] | Stock-based compensation awards for the issuance of 1,625 and 1,471 shares for the second quarter and first six months of 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. As the company reported a net loss attributable to shareholders for the second quarter and first six months of 2019, basic and diluted net loss per share attributable to shareholders are the same and stock-based compensation awards for the issuance of 1,961 and 1,810 shares, respectively, were excluded from the computation of net loss per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | ||
Changes In Components Of OCI [Line Items] | |||||
Foreign Currency Translation Adjustment and Other | $ 36,636 | $ 16,021 | $ (40,707) | $ 20,463 | |
Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | (2,031) | (1,427) | 13,946 | 4,106 | |
Unrealized Loss on Interest Rate Swaps Designated as Cash Flow Hedges, Net | 15 | (6,606) | (28,382) | (6,366) | |
Employee Benefit Plan Items, Net | (2,374) | 85 | (126) | 404 | |
Net change in Accumulated other comprehensive income (loss) | 31,995 | 7,558 | (55,278) | 18,740 | |
Other comprehensive gain (loss) before reclassifications [Member] | |||||
Changes In Components Of OCI [Line Items] | |||||
Foreign Currency Translation Adjustment and Other | [1] | 36,940 | 15,560 | (40,267) | 20,836 |
Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | (361) | 224 | 17,286 | 6,816 | |
Unrealized Loss on Interest Rate Swaps Designated as Cash Flow Hedges, Net | (243) | (6,849) | (29,799) | (6,849) | |
Other comprehensive gain (loss) before reclassifications [Member] | Intra-entity foreign currency transactions [Member] | |||||
Changes In Components Of OCI [Line Items] | |||||
Foreign Currency Translation Adjustment and Other | (5,183) | (9,079) | 4,134 | 780 | |
Amounts reclassified into income [Member] | |||||
Changes In Components Of OCI [Line Items] | |||||
Foreign Currency Translation Adjustment and Other | (555) | (54) | (449) | (240) | |
Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | (1,670) | (1,651) | (3,340) | (2,710) | |
Unrealized Loss on Interest Rate Swaps Designated as Cash Flow Hedges, Net | 258 | 243 | 1,417 | 483 | |
Employee Benefit Plan Items, Net | $ (2,374) | $ 85 | $ (126) | $ 404 | |
[1] | Includes intra-entity foreign currency transactions that are of a long-term investment nature of $(5,183) and $4,134 for the second quarter and first six months of 2020 and $(9,079) and $780 for the second quarter and first six months of 2019, respectively. |
Shareholders' Equity Share-Repu
Shareholders' Equity Share-Repurchase Programs (Details) $ in Thousands | Jun. 27, 2020USD ($) |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 1,000,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 886,572 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 113,428 |
Shares Approved December 2016 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | 400,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 400,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 |
Shares Approved December 2018 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | 600,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 486,572 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 113,428 |
Shares Approved July 2020 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 600,000 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 27, 2020 | Jun. 30, 2012 | Dec. 31, 2019 | |
Site Contingency [Line Items] | |||
Litigation Settlement, Amount | $ 110,000 | ||
Environmental Costs Recovered | $ 37,000 | ||
Sales covered by the Iran Threat Reduction and Syria Human Rights Act of 2012 | $ 4,770 | ||
Huntsville Site [Member] | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense To Date | 6,900 | ||
Additional Expected Project Expenditures Low Estimate | 3,500 | ||
Additional Expected Project Expenditures High Estimate | 10,000 | ||
Norco Site [Member] | Remediation, Project Management, Regulatory Oversight, and Investigative and Feasability Studies [Member] | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense To Date | 75,100 | ||
Additional Expected Project Expenditures Low Estimate | 6,800 | ||
Additional Expected Project Expenditures High Estimate | 17,700 | ||
Global ECS | |||
Site Contingency [Line Items] | |||
Foreign tax and other loss contingencies, net of taxes | $ 32,700 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | ||
Sales: | ||||||
Sales | [1] | $ 6,606,494 | $ 7,344,548 | $ 12,987,911 | $ 14,500,539 | |
Operating income (loss): | ||||||
Operating income (loss) | 196,613 | (549,190) | 334,917 | (303,630) | ||
Loss on disposition of businesses, net | 0 | 0 | 0 | 866 | ||
Restructuring, integration, and other charges | 650 | 19,912 | 9,788 | 31,572 | ||
Assets | 15,604,461 | 15,604,461 | $ 16,400,796 | |||
Impairment of Long-Lived Assets to be Disposed of | 4,918 | 6,910 | ||||
Global Components | ||||||
Sales: | ||||||
Sales | 4,721,255 | 5,270,935 | 9,271,856 | 10,462,862 | ||
Operating income (loss): | ||||||
Operating income (loss) | [2] | 181,836 | (566,116) | 346,603 | (331,584) | |
Impairments | 697,993 | |||||
Inventory Write-down | 20,114 | |||||
Receivables and Inventory Write-down charge (credit) | 15,851 | |||||
Assets | 10,466,895 | 10,466,895 | 10,253,006 | |||
Global ECS | ||||||
Sales: | ||||||
Sales | 1,885,239 | 2,073,613 | 3,716,055 | 4,037,677 | ||
Operating income (loss): | ||||||
Operating income (loss) | [3] | 72,921 | 98,388 | 115,354 | 185,106 | |
Assets | 4,403,385 | 4,403,385 | 5,479,919 | |||
Foreign tax and other loss contingencies | 29,858 | |||||
Impairment of Long-Lived Assets to be Disposed of | 4,918 | |||||
Corporate | ||||||
Operating income (loss): | ||||||
Operating income (loss) | [4] | (58,144) | (81,462) | (127,040) | (157,152) | |
Loss on disposition of businesses, net | 866 | |||||
Restructuring, integration, and other charges | 650 | $ 19,912 | 9,788 | $ 31,572 | ||
Assets | $ 734,181 | $ 734,181 | $ 667,871 | |||
[1] | Includes sales related to the United States of $2,463,885 and $4,875,972 for the second quarter and first six months of 2020 and $2,902,393 and $5,684,428 for the second quarter and first six months 2019, respectively. | |||||
[2] | Global components operating income includes impairments of $697,993 for the second quarter and first six months 2019. Also included in the second quarter of 2019 is a non-recurring charge of $20,114 related to a subset of inventory held by its digital business and a non-recurring charge of $15,851 related to the receivables and inventory of its financing solutions business. During the second quarter of 2019 the company made the decision to narrow its digital inventory offerings and will no longer provide notes to its components customers. | |||||
[3] | Global ECS operating income for the first six months of 2020 includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. Global ECS operating income for the second quarter of 2020 includes $4,918 in impairment charges related to various long-lived assets. | |||||
[4] | Includes restructuring, integration, and other charges of $650 and $9,788 for the second quarter and first six months of 2020 and $19,912 and $31,572 for the second quarter and first six months 2019, respectively. Also included in the first six months of 2019 was a net loss on disposition of businesses of $866. |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Sales & PP&E (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | Dec. 31, 2019 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | [1] | $ 6,606,494 | $ 7,344,548 | $ 12,987,911 | $ 14,500,539 | |
Property, plant, and equipment, net | 798,190 | 798,190 | $ 803,110 | |||
Americas | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Property, plant, and equipment, net | [2] | 566,705 | 566,705 | 594,357 | ||
EMEA [Member] | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Property, plant, and equipment, net | 177,158 | 177,158 | 157,550 | |||
Asia Pacific | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Property, plant, and equipment, net | 54,327 | 54,327 | 51,203 | |||
United States [Member] | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | 2,463,885 | 2,902,393 | 4,875,972 | 5,684,428 | ||
Property, plant, and equipment, net | 564,435 | 564,435 | $ 591,818 | |||
Global Components | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | 4,721,255 | 5,270,935 | 9,271,856 | 10,462,862 | ||
Global Components | Americas | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | 1,488,901 | 1,876,799 | 3,041,699 | 3,783,828 | ||
Global Components | EMEA [Member] | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | [3] | 1,118,417 | 1,415,888 | 2,428,407 | 2,919,254 | |
Global Components | Asia Pacific | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | 2,113,937 | 1,978,248 | 3,801,750 | 3,759,780 | ||
Global ECS | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | 1,885,239 | 2,073,613 | 3,716,055 | 4,037,677 | ||
Global ECS | Americas | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | 1,223,256 | 1,372,456 | 2,351,944 | 2,573,363 | ||
Global ECS | EMEA [Member] | ||||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||||
Sales | [3] | $ 661,983 | $ 701,157 | $ 1,364,111 | $ 1,464,314 | |
[1] | Includes sales related to the United States of $2,463,885 and $4,875,972 for the second quarter and first six months of 2020 and $2,902,393 and $5,684,428 for the second quarter and first six months 2019, respectively. | |||||
[2] | Includes net property, plant, and equipment related to the United States of $564,435 and $591,818 at June 27, 2020 and December 31, 2019, respectively. | |||||
[3] | Defined as Europe, the Middle East, and Africa. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 27, 2020 | Jun. 29, 2019 | Jun. 27, 2020 | Jun. 29, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Provision (benefit) at statutory tax rate | $ 36,580 | $ (126,025) | $ 52,886 | $ (84,798) |
State taxes, net of federal benefit | 2,083 | (11,533) | 4,091 | (7,504) |
International effective tax rate differential | 2,147 | 3,238 | 915 | 8,217 |
U.S Tax on foreign earnings | 30 | 4,953 | 3,166 | 9,880 |
Changes in tax accruals | 1,387 | 902 | 7,595 | 920 |
Tax credits | (756) | (1,971) | (1,511) | (4,001) |
Non-deductible portion of impairment of goodwill | 0 | 76,153 | 0 | 76,153 |
Other | (617) | 1,914 | 1,604 | 2,671 |
Provision (benefit) for income taxes | $ 40,854 | $ (52,369) | $ 68,746 | $ 1,538 |