Cover Document
Cover Document - shares | 3 Months Ended | |
Apr. 01, 2023 | Apr. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly report | true | |
Document Period End Date | Apr. 01, 2023 | |
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, $1 par value | |
Trading Symbol | ARW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 56,488,390 | |
Entity Central Index Key | 0000007536 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | ||
Sales | $ 8,736,428 | $ 9,074,125 | |
Cost of sales | 7,622,606 | 7,866,621 | |
Gross profit | 1,113,822 | 1,207,504 | |
Operating expenses: | |||
Selling, general, and administrative expenses | 642,431 | 643,925 | |
Depreciation and amortization | 46,679 | 48,305 | |
Restructuring, integration, and other charges | 2,560 | 4,898 | |
Total operating expenses | 691,670 | 697,128 | |
Operating income | 422,152 | 510,376 | |
Equity in earnings (losses) of affiliated companies | (80) | 843 | |
Gain on investments, net | 10,311 | 2,011 | |
Employee benefit plan expense, net | (853) | (889) | |
Interest and other financing expense, net | (79,658) | (33,985) | |
Income before income taxes | 351,872 | 478,356 | |
Provision for income taxes | 76,547 | 112,360 | |
Consolidated net income | 275,325 | 365,996 | |
Noncontrolling interests | 1,575 | 1,247 | |
Net income attributable to shareholders | $ 273,750 | $ 364,749 | |
Net income per share: | |||
Basic | $ 4.66 | $ 5.38 | |
Diluted | [1] | $ 4.60 | $ 5.31 |
Weighted-average shares outstanding: | |||
Basic | 58,731 | 67,840 | |
Diluted | 59,479 | 68,749 | |
[1]Stock-based compensation awards for the issuance of 127.6 thousand and 86.0 thousand shares for the first quarter of 2023 and 2022, respectively, were excluded from the computation of net income 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 | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Consolidated net income | $ 275,325 | $ 365,996 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment and other, net of taxes | 11,285 | (49,910) |
Unrealized loss on foreign exchange contracts designated as net investment hedges, net of taxes | (433) | (575) |
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net of taxes | (3,709) | 8,205 |
Employee benefit plan items, net of taxes | (272) | 99 |
Other comprehensive income (loss) | 6,871 | (42,181) |
Comprehensive income | 282,196 | 323,815 |
Less: Comprehensive income attributable to noncontrolling interests | 4,652 | 378 |
Comprehensive income attributable to shareholders | $ 277,544 | $ 323,437 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 | |
ASSETS | |||
Cash and cash equivalents | $ 205,554 | $ 176,915 | |
Accounts receivable, net | 10,655,863 | 12,322,717 | |
Inventories | 5,525,782 | 5,319,369 | |
Other current assets | 479,650 | 521,339 | |
Total current assets | 16,866,849 | 18,340,340 | |
Property, plant, and equipment, at cost: | |||
Land | 5,691 | 5,691 | |
Buildings and improvements | 185,790 | 184,211 | |
Machinery and equipment | 1,602,073 | 1,583,661 | |
Property, plant, and equipment, gross | 1,793,554 | 1,773,563 | |
Less: Accumulated depreciation and amortization | (1,214,103) | (1,177,107) | |
Property, plant, and equipment, net | 579,451 | 596,456 | |
Investments in affiliated companies | 59,682 | 65,112 | |
Intangible assets, net | 151,221 | 159,137 | |
Goodwill | [1] | 2,036,077 | 2,027,626 |
Other assets | 583,252 | 574,511 | |
Total assets | 20,276,532 | 21,763,182 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 8,976,296 | 10,460,419 | |
Accrued expenses | 1,269,536 | 1,339,302 | |
Short-term borrowings, including current portion of long-term debt | 144,264 | 589,883 | |
Total current liabilities | 10,390,096 | 12,389,604 | |
Long-term debt | 3,719,056 | 3,182,964 | |
Other liabilities | 567,200 | 579,261 | |
Equity: | |||
Issued - 125,424 shares in both 2023 and 2022 | 125,424 | 125,424 | |
Capital in excess of par value | 1,203,134 | 1,208,708 | |
Treasury stock (68,426 and 66,175 shares in 2023 and 2022, respectively), at cost | (4,925,140) | (4,637,345) | |
Retained earnings | 9,488,582 | 9,214,832 | |
Accumulated other comprehensive loss | (361,468) | (365,262) | |
Total shareholders’ equity | 5,530,532 | 5,546,357 | |
Noncontrolling interests | 69,648 | 64,996 | |
Total equity | 5,600,180 | 5,611,353 | |
Total liabilities and equity | $ 20,276,532 | $ 21,763,182 | |
[1]The total carrying value of goodwill as of April 1, 2023 and December 31, 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $301.9 million was recorded in the global enterprise computing solutions ("ECS") business segment. |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares shares in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 160,000 | 160,000 |
Common stock, shares issued | 125,424 | 125,424 |
Treasury stock, shares at cost | 68,426 | 66,175 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 275,325 | $ 365,996 |
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | ||
Depreciation and amortization | 46,679 | 48,305 |
Amortization of stock-based compensation | 19,497 | 17,351 |
Equity in (earnings) losses of affiliated companies | 80 | (843) |
Deferred income taxes | (7,530) | 1,352 |
Gain on investments, net | (10,311) | (2,011) |
Other | 1,321 | 686 |
Change in assets and liabilities: | ||
Accounts receivable, net | 1,701,889 | 430,710 |
Inventories | (199,521) | (460,902) |
Accounts payable | (1,504,701) | (477,825) |
Accrued expenses | (132,316) | (43,641) |
Other assets and liabilities | 33,392 | (79,426) |
Net cash provided by (used for) operating activities | 223,804 | (200,248) |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (20,114) | (19,270) |
Proceeds from collections of notes receivable | 142 | 20,169 |
Proceeds from settlement of net investment hedge | 10,725 | 0 |
Net cash provided by (used for) investing activities | (9,247) | 899 |
Cash flows from financing activities: | ||
Change in short-term and other borrowings | (146,050) | (14,293) |
Proceeds from long-term bank borrowings, net | 34,360 | 845,000 |
Net proceeds from note offering | 498,600 | 0 |
Redemption of notes | (300,000) | (350,000) |
Proceeds from exercise of stock options | 5,934 | 11,302 |
Repurchases of common stock | (303,801) | (264,431) |
Net cash provided by (used for) financing activities | (210,957) | 227,578 |
Effect of exchange rate changes on cash | 25,039 | (7,632) |
Net increase in cash and cash equivalents | 28,639 | 20,597 |
Cash and cash equivalents at beginning of period | 176,915 | 222,194 |
Cash and cash equivalents at end of period | $ 205,554 | $ 242,791 |
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 Loss | Noncontrolling Interest |
Balance at Dec. 31, 2021 | $ 5,340,846 | $ 125,424 | $ 1,189,845 | $ (3,629,265) | $ 7,787,948 | $ (191,657) | $ 58,551 |
Consolidated net income | 365,996 | 0 | 0 | 0 | 364,749 | 0 | 1,247 |
Other comprehensive income | (42,181) | 0 | 0 | 0 | 0 | (41,312) | (869) |
Amortization of stock-based compensation | 17,351 | 0 | 17,351 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 11,302 | 0 | (20,601) | 31,903 | 0 | 0 | 0 |
Repurchases of common stock | (264,431) | 0 | 0 | (264,431) | 0 | 0 | 0 |
Balance at Apr. 02, 2022 | 5,428,883 | 125,424 | 1,186,595 | (3,861,793) | 8,152,697 | (232,969) | 58,929 |
Balance at Dec. 31, 2022 | 5,611,353 | 125,424 | 1,208,708 | (4,637,345) | 9,214,832 | (365,262) | 64,996 |
Consolidated net income | 275,325 | 0 | 0 | 0 | 273,750 | 0 | 1,575 |
Other comprehensive income | 6,871 | 0 | 0 | 0 | 0 | 3,794 | 3,077 |
Amortization of stock-based compensation | 19,497 | 0 | 19,497 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 5,934 | 0 | (25,071) | 31,005 | 0 | 0 | 0 |
Repurchases of common stock | (318,800) | 0 | 0 | (318,800) | 0 | 0 | 0 |
Balance at Apr. 01, 2023 | $ 5,600,180 | $ 125,424 | $ 1,203,134 | $ (4,925,140) | $ 9,488,582 | $ (361,468) | $ 69,648 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 01, 2023 | |
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, 2022, 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, 2023. |
Impact of Recently Issued Accou
Impact of Recently Issued Accounting Standards | 3 Months Ended |
Apr. 01, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Impact of Recently Issued Accounting Standards In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations ("ASU No. 2022-04"). ASU No. 2022-04 requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, and potential magnitude. Effective January 1, 2023 the company adopted the provisions of ASU No. 2022-04 on a retrospective basis. As a result, the company disclosed key terms and amounts outstanding under its supplier finance programs (refer to Note F Supplier Finance Programs). |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 01, 2023 | |
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: (thousands) Global Global ECS Total Balance as of December 31, 2022 (a) $ 873,003 $ 1,154,623 $ 2,027,626 Foreign currency translation adjustment 1,047 7,404 8,451 Balance as of April 1, 2023 (a) $ 874,050 $ 1,162,027 $ 2,036,077 (a) The total carrying value of goodwill as of April 1, 2023 and December 31, 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $301.9 million was recorded in the global enterprise computing solutions ("ECS") business segment. Intangible assets, net, are comprised of the following as of April 1, 2023: (thousands) Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 268,389 $ (150,254) $ 118,135 Amortizable trade name 74,027 (40,941) 33,086 $ 342,416 $ (191,195) $ 151,221 Intangible assets, net, are comprised of the following as of December 31, 2022: (thousands) Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 268,180 $ (144,655) $ 123,525 Amortizable trade name 74,011 (38,399) 35,612 $ 342,191 $ (183,054) $ 159,137 During the first quarter of 2023 and 2022, the company recorded amortization expense related to identifiable intangible assets of $8.0 million and $9.0 million, respectively. |
Investments in Affiliated Compa
Investments in Affiliated Companies | 3 Months Ended |
Apr. 01, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliated Companies | Investments in Affiliated Companies The 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: (thousands) April 1, December 31, Marubun/Arrow $ 48,810 $ 54,292 Other 10,872 10,820 $ 59,682 $ 65,112 The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended (thousands) April 1, April 2, Marubun/Arrow $ (397) $ 794 Other 317 49 $ (80) $ 843 Under the terms of various joint venture agreements, the company is required to pay its pro-rata share of the third-party debt of the joint ventures in the event that the joint ventures are unable to meet their obligations. There were no outstanding borrowings under the third-party debt agreements of the joint ventures as of April 1, 2023 and December 31, 2022. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 01, 2023 | |
Receivables [Abstract] | |
Accounts Receivable [Text Block] | Accounts Receivable Accounts receivable, net, consists of the following: (thousands) April 1, December 31, Accounts receivable $ 10,759,556 $ 12,416,114 Allowances for doubtful accounts (103,693) (93,397) Accounts receivable, net $ 10,655,863 $ 12,322,717 Changes in the allowance for doubtful accounts consists of the following: Quarter Ended (thousands) April 1, April 2, Balance at beginning of period $ 93,397 $ 75,901 Charged to income 14,991 13,768 Translation adjustments 388 190 Writeoffs (5,083) (2,676) Balance at end of period $ 103,693 $ 87,183 The company monitors 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 April 1, 2023. The company has an EMEA asset securitization program under which it continuously sells its interest in designated pools of trade accounts receivable of certain of its subsidiaries in EMEA, 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 ("unaffiliated financial institutions") on a monthly basis. The company may sell up to €600.0 million under the EMEA asset securitization program, which matures in December 2025, subject to extension in accordance with its terms. In January 2023, the company amended a provision in the EMEA asset securitization program to update certain financial ratios. 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 receivable into the special purpose entity. Accordingly, Arrow EMEA Funding Corp B.V. is included in the company’s consolidated financial statements. Sales of accounts receivable to unaffiliated financial institutions under the EMEA asset securitization program: Quarter Ended (thousands) April 1, April 2, EMEA asset securitization, sales of accounts receivable $ 817,833 $ 569,216 Receivables sold to unaffiliated financial institutions 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 by 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. Other amounts related to the EMEA asset securitization program: (thousands) April 1, December 31, Receivables sold to unaffiliated financial institutions that were uncollected $ 644,539 $ 628,930 Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. 1,028,748 932,243 Any accounts receivable 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 |
Supplier Finance Programs
Supplier Finance Programs | 3 Months Ended |
Apr. 01, 2023 | |
Payables and Accruals [Abstract] | |
Supplier Finance Programs | Supplier Finance ProgramsAt the request of certain of the company’s suppliers, the company has entered into agreements (“supplier finance programs”) with third-party finance providers, which facilitate the participating suppliers’ ability to sell their receivables from the company to the third-party financial institutions, at the sole discretion of the suppliers. For agreeing to participate in these programs, the company seeks to secure improved standard payment terms with its suppliers. The company is not involved in negotiating terms of the arrangements between its suppliers and the financial institutions, and has no economic interest in a supplier’s decision to enter into these agreements, or sell receivables from the company. The company's rights and obligations to its suppliers, including amounts due, are not impacted by suppliers’ decisions to sell amounts under the arrangements. However, the company agrees to make all payments to the third-party financial institutions, and the company’s right to offset balances due from suppliers against payment obligations is restricted by the agreements for those payment obligations that have been sold by suppliers. As of April 1, 2023, and December 31, 2022, the company had $971.0 million and $1.5 billion, respectively, in obligations outstanding under these programs included in "Accounts payable" in the company’s consolidated balance sheets and all activity related to the obligations is presented within operating activities on the consolidated statements of cash flows. |
Financial Instruments Measured
Financial Instruments Measured at Fair Value | 3 Months Ended |
Apr. 01, 2023 | |
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 measured at fair value on a recurring basis at April 1, 2023: (thousands) Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents $ 7,951 $ — $ — $ 7,951 Equity investments (b) Other assets 56,031 — — 56,031 Interest rate swaps designated as cash flow hedges Other assets — 50,225 — 50,225 Interest rate swap designated as fair value hedge Other assets — 2,742 — 2,742 Foreign exchange contracts designated as net investment hedges Other assets — 51,716 — 51,716 $ 63,982 $ 104,683 $ — $ 168,665 The following table presents assets measured at fair value on a recurring basis at December 31, 2022: (thousands) Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 6,596 $ — $ — $ 6,596 Equity investments (b) Other assets 50,614 — — 50,614 Interest rate swaps designated as cash flow hedges Other assets — 55,942 — 55,942 Foreign exchange contracts designated as net investment hedges Other assets — 60,962 — 60,962 $ 57,210 $ 116,904 $ — $ 174,114 (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 (loss) of $8.5 million and $(5.7) million for the first quarter of 2023 and 2022, 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 and identifiable intangible assets (refer to Note C). 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 designated as cash flow hedges 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. Reclassified gains and losses 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 is estimated using a discounted cash flow analysis on the expected cash flows of each derivative based on observable inputs, including interest rate curves and credit spreads. At April 1, 2023 and December 31, 2022, the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount (thousands) Weighted-Average Interest Rate Date Range of Forecasted Transaction April 2020 December 2024 $300,000 0.97% Jan 2023 - Dec 2025 The company occasionally enters into interest rate swap transactions that convert certain fixed-rate debt to variable-rate debt in order to manage its targeted mix of fixed- and floating-rate debt. During the first quarter of 2023, the company entered into an interest rate swap designated as a fair value hedge intended to hedge a portion of its interest rate exposure by converting the fixed rate on the company's $500.0 million 6.125% notes due in March 2026, to a floating interest rate based on the benchmark SOFR swap rate. For qualifying interest rate fair value hedges, gains or losses on derivatives are included in “Interest and other financing expense, net” in the consolidated statements of operations. The change in fair value of the hedged item attributable to the risk being hedged is reported as an adjustment to its carrying value and is also included in “Interest and other financing expense, net”. When a derivative is no longer designated as a hedge, any remaining difference between the carrying value and par value of the hedged item is amortized in “Interest and other financing expense, net” over the remaining life of the hedged item using the effective interest method. The counterparty to the interest rate swap has the option to cancel the swaps after one year, without penalty. As of April 1, 2023, the company had one outstanding interest rate swap designated as a fair value hedge, the terms of which are as follows: Trade Date Maturity Date Notional Amount (thousands) Interest Rate due from Counterparty Interest Rate due to Counterparty February 2023 March 2026 $500,000 6.125% SOFR + 0.508% 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 primary exposures to such transactions are denominated in the following currencies: Euro, Indian Rupee, and Chinese Renminbi. 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. 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 is estimated using foreign currency spot rates and forward rates quotes by third-party financial institutions. The notional amount of the foreign exchange contracts inclusive of foreign exchange contracts designated as a net investment hedge at April 1, 2023 and December 31, 2022 was $1.2 billion and $1.3 billion, 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. 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, and were not material to the financial statements for the periods presented. The following foreign exchange contracts were designated as net investment hedges: Notional Amount (thousands) Maturity Date April 1, 2023 December 31, 2022 March 2023 EUR — EUR 50,000 September 2024 EUR 50,000 EUR 50,000 April 2025 EUR 100,000 EUR 100,000 January 2028 EUR 100,000 EUR 100,000 Total EUR 250,000 EUR 300,000 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. During the first quarter of 2023, a foreign exchange contract designated as a net investment hedge matured and the company received $10.7 million, which is reported in the “cash flow from investing activities” section of the consolidated statements of cash flows. The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Income Statement Line Quarter Ended (thousands) April 1, April 2, Gain (Loss) Recognized in Income Foreign exchange contracts, net investment hedge (a) Interest Expense $ 2,048 $ 2,201 Interest rate swaps, cash flow hedge Interest Expense (839) (868) Interest rate swap, fair value hedge (b) Interest Expense 2,742 — Total $ 3,951 $ 1,333 Gain (Loss) Recognized in Other Comprehensive Income before reclassifications, net of tax Foreign exchange contracts, net investment hedge (c) $ 1,125 $ 1,094 Interest rate swaps, cash flow hedge (4,347) 7,547 Total $ (3,222) $ 8,641 (a) Represents derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to “Interest and other financing expenses, net”. (b) The cumulative amount of fair value hedging adjustments to the carrying value of hedged debt instruments totaled a loss of $2.5 million for the first quarter of 2023. (c) Includes derivative losses of $1.7 million and $5.0 million for the first quarter of 2023 and 2022, respectively, which were excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income, net of tax. 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. |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Apr. 01, 2023 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share [Text Block] | Net Income per Share The following table presents the computation of net income per share on a basic and diluted basis: Quarter Ended (thousands except per share data) April 1, April 2, Net income attributable to shareholders $ 273,750 $ 364,749 Weighted-average shares outstanding - basic 58,731 67,840 Net effect of various dilutive stock-based compensation awards 748 909 Weighted-average shares outstanding - diluted 59,479 68,749 Net income per share: Basic $ 4.66 $ 5.38 Diluted (a) $ 4.60 $ 5.31 (a) Stock-based compensation awards for the issuance of 127.6 thousand and 86.0 thousand shares for the first quarter of 2023 and 2022, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 01, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) The following table presents the changes in Accumulated other comprehensive income (loss), excluding noncontrolling interests: Quarter Ended (thousands) April 1, April 2, Foreign Currency Translation Adjustment and Other: Other comprehensive income (loss) before reclassifications (a) $ 8,008 $ (48,700) Amounts reclassified into income 200 (341) Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications (b) 1,125 1,094 Amounts reclassified into income (1,558) (1,669) Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive income (loss) before reclassifications (b) (4,347) 7,547 Amounts reclassified into income 638 658 Employee Benefit Plan Items, Net: Amounts reclassified into income (272) 99 Net change in Accumulated other comprehensive income (loss) $ 3,794 $ (41,312) (a) Foreign currency translation adjustment includes intra-entity foreign currency transactions that are of a long-term investment nature of $5.6 million and $(8.3) million for the first quarter of 2023 and 2022, respectively. (b) For additional information related to net investment hedges and interest rate swaps refer to Note H. Common Stock Outstanding Activity The following table sets forth the activity in the number of shares outstanding: (thousands) Common Stock Issued Treasury Stock Common Stock Outstanding Common stock outstanding at December 31, 2022 125,424 66,175 59,249 Shares issued for stock-based compensation awards — (313) 313 Repurchases of common stock — 2,564 (2,564) Common stock outstanding at April 1, 2023 125,424 68,426 56,998 (thousands) Common Stock Issued Treasury Stock Common Stock Outstanding Common stock outstanding at December 31, 2021 125,424 57,358 68,066 Shares issued for stock-based compensation awards — (385) 385 Repurchases of common stock — 2,015 (2,015) Common stock outstanding at April 2, 2022 125,424 58,988 66,436 Share-Repurchase Program The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of April 1, 2023: Share-Repurchase Details by Month of Board Approval (thousands) Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate July 2021 $ 600,000 $ 600,000 $ — December 2021 600,000 600,000 — September 2022 600,000 571,503 28,497 January 2023 1,000,000 — 1,000,000 Total $ 2,800,000 $ 1,771,503 $ 1,028,497 |
Contingencies
Contingencies | 3 Months Ended |
Apr. 01, 2023 | |
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 $110.0 million 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 (the "Huntsville Site") and Norco, California (the "Norco Site")) at which contaminated soil and groundwater was identified and will require environmental remediation. The company expects the liabilities associated with such ongoing remediation 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 $47.0 million from certain insurance carriers relating to environmental clean up matters at the Norco and Huntsville sites. The company filed suit against two insurers regarding liabilities arising out of operations at Huntsville and reached a confidential settlement with one of the insurers in 2020. The resolution of this matter against the remaining insurer 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 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 with annual application of bioremediation reagents, semi-annual groundwater monitoring, as well as data collection to direct future bioremediation injections. Approximately $8.2 million has been spent to date, and the company currently anticipates no additional investigative-related expenditures. The cost of subsequent remediation at the site is estimated to be between $2.1 million and $10.0 million. 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 (“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 $81.0 million was spent to date on remediation, project management, regulatory oversight, and investigative and feasibility study activities. The company currently estimates that remediation, project management, regulatory oversight, and investigative activities will continue and give rise to an additional $6.0 million to $17.0 million in costs. 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 From time to time, in the normal course of business, the company may become liable with respect to other pending and threatened litigation, environmental, regulatory, labor, product, and tax matters. While such matters are subject to inherent uncertainties, it is not currently anticipated that any such matters will materially impact the company’s consolidated financial position, liquidity, or results of operations. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Apr. 01, 2023 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information [Text Block] | Segment and Geographic Information The company is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company has one of the world's broadest portfolios of product offerings available from leading electronic components and enterprise computing solutions suppliers, coupled with a range of services, solutions and tools that enables its suppliers to distribute their technologies and help its industrial and commercial customers to source, build upon, and leverage these technologies to grow their businesses, reduce their time to market, and enhance their overall competitiveness. The company is a trusted partner in a complex value chain and is uniquely positioned through its electronics components and IT content portfolios to increase value for stakeholders. The company has two business segments, the global components business segment and the global enterprise computing solutions (“ECS”) business segment. The company's global components business segment, enabled by a comprehensive range of value-added capabilities and services, markets and distributes electronic components to original equipment manufacturers ("OEMs") and contract manufacturers ("CMs"). The company's global ECS business segment is a leading value-added provider of comprehensive computing solutions and services. Global ECS' portfolio of computing solutions includes datacenter, cloud, security, and analytics solutions. Global ECS brings broad market access, extensive supplier relationships, scale, and resources to help its value-added resellers ("VARs") and managed service providers ("MSPs") meet the needs of their end-users. 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 (thousands) April 1, April 2, Components: Americas $ 2,233,453 $ 2,340,543 EMEA 2,246,145 1,927,003 Asia/Pacific 2,376,195 2,931,529 Global components $ 6,855,793 $ 7,199,075 ECS: Americas $ 998,114 $ 1,047,849 EMEA 882,521 827,201 Global ECS $ 1,880,635 $ 1,875,050 Consolidated $ 8,736,428 $ 9,074,125 Operating income (loss), by segment, are as follows: Quarter Ended (thousands) April 1, April 2, Operating income (loss): Global components $ 417,539 $ 499,342 Global ECS 81,099 85,798 Corporate (a) (76,486) (74,764) Consolidated $ 422,152 $ 510,376 (a) Corporate operating income (loss) includes restructuring, integration, and other charges of $2.6 million and $4.9 million for the first quarter of 2023 and 2022, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
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, 2022, as filed in the company’s Annual Report on Form 10-K. |
Fiscal Period Policy | 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, 2023. |
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 other short-term borrowings, uncommitted lines of credit, revolving credit facility, 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. |
Debt (Policies)
Debt (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Debt Disclosure [Abstract] | |
Fair Value of Debt Policy | The carrying amount of the company’s other short-term borrowings, uncommitted lines of credit, revolving credit facility, North American asset securitization program, commercial paper, and other obligations approximate their fair value. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures (Policies) | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures [Abstract] | |
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) | 3 Months Ended |
Apr. 01, 2023 | |
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: (thousands) Global Global ECS Total Balance as of December 31, 2022 (a) $ 873,003 $ 1,154,623 $ 2,027,626 Foreign currency translation adjustment 1,047 7,404 8,451 Balance as of April 1, 2023 (a) $ 874,050 $ 1,162,027 $ 2,036,077 (a) The total carrying value of goodwill as of April 1, 2023 and December 31, 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $301.9 million 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 April 1, 2023: (thousands) Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 268,389 $ (150,254) $ 118,135 Amortizable trade name 74,027 (40,941) 33,086 $ 342,416 $ (191,195) $ 151,221 Intangible assets, net, are comprised of the following as of December 31, 2022: (thousands) Gross Carrying Amount Accumulated Amortization Net Customer relationships $ 268,180 $ (144,655) $ 123,525 Amortizable trade name 74,011 (38,399) 35,612 $ 342,191 $ (183,054) $ 159,137 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | The following table presents the company’s investment in affiliated companies: (thousands) April 1, December 31, Marubun/Arrow $ 48,810 $ 54,292 Other 10,872 10,820 $ 59,682 $ 65,112 |
Equity in Earnings of Affiliated Companies | The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended (thousands) April 1, April 2, Marubun/Arrow $ (397) $ 794 Other 317 49 $ (80) $ 843 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Text Block] | Accounts receivable, net, consists of the following: (thousands) April 1, December 31, Accounts receivable $ 10,759,556 $ 12,416,114 Allowances for doubtful accounts (103,693) (93,397) Accounts receivable, net $ 10,655,863 $ 12,322,717 |
Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for doubtful accounts consists of the following: Quarter Ended (thousands) April 1, April 2, Balance at beginning of period $ 93,397 $ 75,901 Charged to income 14,991 13,768 Translation adjustments 388 190 Writeoffs (5,083) (2,676) Balance at end of period $ 103,693 $ 87,183 |
Transfer of Financial Assets Accounted for as Sales | Sales of accounts receivable to unaffiliated financial institutions under the EMEA asset securitization program: Quarter Ended (thousands) April 1, April 2, EMEA asset securitization, sales of accounts receivable $ 817,833 $ 569,216 |
Schedule of Fair Value Assumption, Date of Securitization or Asset-backed Financing Arrangement, Transferor's Continuing Involvement, Servicing Assets or Liabilities | Other amounts related to the EMEA asset securitization program: (thousands) April 1, December 31, Receivables sold to unaffiliated financial institutions that were uncollected $ 644,539 $ 628,930 Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. 1,028,748 932,243 |
ST Debt (Tables)
ST Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
ST Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings, including current portion of long-term debt, consist of the following: (thousands) April 1, December 31, 4.50% notes, due March 2023 $ — $ 299,895 Uncommitted lines of credit — 78,000 Commercial paper 119,980 173,407 Other short-term borrowings 24,284 38,581 $ 144,264 $ 589,883 |
LT Debt (Tables)
LT Debt (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Schedule of Long-term Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: (thousands) April 1, December 31, Revolving credit facility $ 15,000 $ — North American asset securitization program 1,255,000 1,235,000 3.25% notes, due 2024 498,394 498,122 4.00% notes, due 2025 348,521 348,344 6.125% notes, due 2026 496,916 — 7.50% senior debentures, due 2027 110,123 110,103 3.875% notes, due 2028 496,608 496,448 2.95% notes, due 2032 497,196 494,522 Other obligations with various interest rates and due dates 1,298 425 $ 3,719,056 $ 3,182,964 |
Schedule of Fair Value of Debt [Text Block] | The estimated fair market value of long-term debt, using quoted market prices, is as follows: (thousands) April 1, December 31, 3.25% notes, due 2024 $ 486,500 $ 481,500 4.00% notes, due 2025 340,000 338,000 6.125% notes, due 2026 501,500 — 7.50% senior debentures, due 2027 118,500 116,500 3.875% notes, due 2028 475,500 456,000 2.95% notes, due 2032 420,500 395,500 |
Financial Instruments Measure_2
Financial Instruments Measured at Fair Value (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
Fair Value Disclosures | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis Table [Text Block] | The following table presents assets measured at fair value on a recurring basis at April 1, 2023: (thousands) Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents $ 7,951 $ — $ — $ 7,951 Equity investments (b) Other assets 56,031 — — 56,031 Interest rate swaps designated as cash flow hedges Other assets — 50,225 — 50,225 Interest rate swap designated as fair value hedge Other assets — 2,742 — 2,742 Foreign exchange contracts designated as net investment hedges Other assets — 51,716 — 51,716 $ 63,982 $ 104,683 $ — $ 168,665 The following table presents assets measured at fair value on a recurring basis at December 31, 2022: (thousands) Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 6,596 $ — $ — $ 6,596 Equity investments (b) Other assets 50,614 — — 50,614 Interest rate swaps designated as cash flow hedges Other assets — 55,942 — 55,942 Foreign exchange contracts designated as net investment hedges Other assets — 60,962 — 60,962 $ 57,210 $ 116,904 $ — $ 174,114 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. |
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: Income Statement Line Quarter Ended (thousands) April 1, April 2, Gain (Loss) Recognized in Income Foreign exchange contracts, net investment hedge (a) Interest Expense $ 2,048 $ 2,201 Interest rate swaps, cash flow hedge Interest Expense (839) (868) Interest rate swap, fair value hedge (b) Interest Expense 2,742 — Total $ 3,951 $ 1,333 Gain (Loss) Recognized in Other Comprehensive Income before reclassifications, net of tax Foreign exchange contracts, net investment hedge (c) $ 1,125 $ 1,094 Interest rate swaps, cash flow hedge (4,347) 7,547 Total $ (3,222) $ 8,641 (a) Represents derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to “Interest and other financing expenses, net”. (b) The cumulative amount of fair value hedging adjustments to the carrying value of hedged debt instruments totaled a loss of $2.5 million for the first quarter of 2023. (c) Includes derivative losses of $1.7 million and $5.0 million for the first quarter of 2023 and 2022, respectively, which were excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income, net of tax. |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |
Fair Value Disclosures | |
Description of Derivative Hedging Instruments | The following foreign exchange contracts were designated as net investment hedges: Notional Amount (thousands) Maturity Date April 1, 2023 December 31, 2022 March 2023 EUR — EUR 50,000 September 2024 EUR 50,000 EUR 50,000 April 2025 EUR 100,000 EUR 100,000 January 2028 EUR 100,000 EUR 100,000 Total EUR 250,000 EUR 300,000 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 per share on a basic and diluted basis: Quarter Ended (thousands except per share data) April 1, April 2, Net income attributable to shareholders $ 273,750 $ 364,749 Weighted-average shares outstanding - basic 58,731 67,840 Net effect of various dilutive stock-based compensation awards 748 909 Weighted-average shares outstanding - diluted 59,479 68,749 Net income per share: Basic $ 4.66 $ 5.38 Diluted (a) $ 4.60 $ 5.31 (a) Stock-based compensation awards for the issuance of 127.6 thousand and 86.0 thousand shares for the first quarter of 2023 and 2022, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity Components
Shareholders' Equity Components of Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 income (loss), excluding noncontrolling interests: Quarter Ended (thousands) April 1, April 2, Foreign Currency Translation Adjustment and Other: Other comprehensive income (loss) before reclassifications (a) $ 8,008 $ (48,700) Amounts reclassified into income 200 (341) Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications (b) 1,125 1,094 Amounts reclassified into income (1,558) (1,669) Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive income (loss) before reclassifications (b) (4,347) 7,547 Amounts reclassified into income 638 658 Employee Benefit Plan Items, Net: Amounts reclassified into income (272) 99 Net change in Accumulated other comprehensive income (loss) $ 3,794 $ (41,312) (a) Foreign currency translation adjustment includes intra-entity foreign currency transactions that are of a long-term investment nature of $5.6 million and $(8.3) million for the first quarter of 2023 and 2022, respectively. (b) For additional information related to net investment hedges and interest rate swaps refer to Note H. |
Share-Repurchase Programs [Table Text Block] | The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of April 1, 2023: Share-Repurchase Details by Month of Board Approval (thousands) Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate July 2021 $ 600,000 $ 600,000 $ — December 2021 600,000 600,000 — September 2022 600,000 571,503 28,497 January 2023 1,000,000 — 1,000,000 Total $ 2,800,000 $ 1,771,503 $ 1,028,497 |
Schedule of Stock by Class | The following table sets forth the activity in the number of shares outstanding: (thousands) Common Stock Issued Treasury Stock Common Stock Outstanding Common stock outstanding at December 31, 2022 125,424 66,175 59,249 Shares issued for stock-based compensation awards — (313) 313 Repurchases of common stock — 2,564 (2,564) Common stock outstanding at April 1, 2023 125,424 68,426 56,998 (thousands) Common Stock Issued Treasury Stock Common Stock Outstanding Common stock outstanding at December 31, 2021 125,424 57,358 68,066 Shares issued for stock-based compensation awards — (385) 385 Repurchases of common stock — 2,015 (2,015) Common stock outstanding at April 2, 2022 125,424 58,988 66,436 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Apr. 01, 2023 | |
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 (thousands) April 1, April 2, Components: Americas $ 2,233,453 $ 2,340,543 EMEA 2,246,145 1,927,003 Asia/Pacific 2,376,195 2,931,529 Global components $ 6,855,793 $ 7,199,075 ECS: Americas $ 998,114 $ 1,047,849 EMEA 882,521 827,201 Global ECS $ 1,880,635 $ 1,875,050 Consolidated $ 8,736,428 $ 9,074,125 Operating income (loss), by segment, are as follows: Quarter Ended (thousands) April 1, April 2, Operating income (loss): Global components $ 417,539 $ 499,342 Global ECS 81,099 85,798 Corporate (a) (76,486) (74,764) Consolidated $ 422,152 $ 510,376 (a) Corporate operating income (loss) includes restructuring, integration, and other charges of $2.6 million and $4.9 million for the first quarter of 2023 and 2022, respectively. |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 USD ($) | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 (a) | $ 2,027,626 | [1] |
Foreign currency translation adjustment | 8,451 | |
Balance as of April 1, 2023 (a) | 2,036,077 | [1] |
Accumulated impairment charges | 1,600,000 | |
Global Components | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 (a) | 873,003 | [1] |
Foreign currency translation adjustment | 1,047 | |
Balance as of April 1, 2023 (a) | 874,050 | [1] |
Accumulated impairment charges | 1,300,000 | |
Global ECS | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 (a) | 1,154,623 | [1] |
Foreign currency translation adjustment | 7,404 | |
Balance as of April 1, 2023 (a) | 1,162,027 | [1] |
Accumulated impairment charges | $ 301,900 | |
[1]The total carrying value of goodwill as of April 1, 2023 and December 31, 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $301.9 million was recorded in the global enterprise computing solutions ("ECS") business segment. |
Goodwill - Intangibles (Details
Goodwill - Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 342,416 | $ 342,191 | |
Accumulated Amortization | (191,195) | (183,054) | |
Net | 151,221 | 159,137 | |
Amortization of Intangible Assets | 8,000 | $ 9,000 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 268,389 | 268,180 | |
Accumulated Amortization | (150,254) | (144,655) | |
Net | 118,135 | 123,525 | |
Amortizable trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 74,027 | 74,011 | |
Accumulated Amortization | (40,941) | (38,399) | |
Net | $ 33,086 | $ 35,612 |
Investments in Affiliated Com_3
Investments in Affiliated Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in affiliated companies | $ 59,682 | $ 65,112 | |
Income (Loss) from Equity Method Investments | (80) | $ 843 | |
Equity Method Investment Pro Rata Share of Debt Obligations of Joint Venture | $ 0 | 0 | |
Marubun Arrow [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50% | ||
Investments in affiliated companies | $ 48,810 | 54,292 | |
Income (Loss) from Equity Method Investments | $ (397) | 794 | |
Other joint ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50% | ||
Investments in affiliated companies | $ 10,872 | $ 10,820 | |
Income (Loss) from Equity Method Investments | $ 317 | $ 49 |
Accounts Receivable (Details)
Accounts Receivable (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||
Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Apr. 01, 2023 EUR (€) | Dec. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable | $ 10,759,556 | $ 12,416,114 | ||
Allowances for doubtful accounts | 103,693 | $ 87,183 | 93,397 | |
Accounts receivable, net | 10,655,863 | 12,322,717 | ||
Agreement Amount with Purchaser to Transfer Financial Assets Accounted For As Sales | € | € 600,000 | |||
Receivables sold to unaffiliated financial institutions during the period | 817,833 | 569,216 | ||
Receivables sold to unaffiliated financial institutions that were uncollected | 644,539 | 628,930 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | 93,397 | 75,901 | ||
Charged to income | 14,991 | 13,768 | ||
Translation adjustments | 388 | 190 | ||
Writeoffs | (5,083) | (2,676) | ||
Balance at end of period | 103,693 | $ 87,183 | ||
Variable Interest Entity, Primary Beneficiary | Asset Pledged as Collateral | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. | $ 1,028,748 | $ 932,243 |
Supplier Finance Programs (Deta
Supplier Finance Programs (Details) - USD ($) $ in Thousands | Apr. 01, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Supplier Finance Programs Obligations | $ 971,000 | $ 1,500,000 |
Debt - ST Debt (Details)
Debt - ST Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Short-term Debt [Line Items] | |||
Debt, Current | $ 144,264 | $ 589,883 | |
Other short-term borrowings | $ 24,284 | $ 38,581 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 3.84% | 1.98% | |
Interest Rate Swap [Member] | Fair Value Hedging | |||
Short-term Debt [Line Items] | |||
Derivative, Variable Interest Rate | 50.80% | ||
Borrowings on lines of credit | |||
Short-term Debt [Line Items] | |||
Line of Credit, Current | $ 0 | $ 78,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 5.41% | 5.22% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | ||
Commercial paper | |||
Short-term Debt [Line Items] | |||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 5.90% | 5.15% | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 119,980 | $ 173,407 | |
Line of Credit Facility, Maximum Borrowing Capacity | 1,200,000 | ||
4.50% notes, due 2023 | |||
Short-term Debt [Line Items] | |||
Debt, Current | 0 | $ 299,895 | |
Repayments of Senior Debt | $ 300,000 | ||
3.50% notes, due April 2022 | |||
Short-term Debt [Line Items] | |||
Repayments of Senior Debt | $ 350,000 | ||
4.50% notes, due 2023 | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
3.50% notes, due April 2022 | |||
Short-term Debt [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% |
Debt - LT Debt (Details)
Debt - LT Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 3,719,056 | $ 3,182,964 | |
Accounts receivable, net | 10,655,863 | 12,322,717 | |
Interest and dividend income | 14,300 | $ 4,500 | |
Net proceeds from note offering | $ 498,600 | $ 0 | |
Interest Rate Swap [Member] | Fair Value Hedging | |||
Debt Instrument [Line Items] | |||
Derivative, Variable Interest Rate | 50.80% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 15,000 | 0 | |
Maximum Borrowing Capacity | $ 2,000,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.88% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.175% | ||
Derivative, Basis Spread on Variable Rate | 1.08% | ||
North American Asset securitization program | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 1,255,000 | 1,235,000 | |
Maximum Borrowing Capacity | $ 1,500,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 5.30% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.10% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||
Accounts receivable, net | $ 2,800,000 | 3,100,000 | |
3.25% notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | 498,394 | 498,122 | |
Debt Instrument, Fair Value Disclosure | $ 486,500 | 481,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||
4.00% notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 348,521 | 348,344 | |
Debt Instrument, Fair Value Disclosure | $ 340,000 | 338,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4% | ||
Notes Due in 2026 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 496,916 | 0 | |
Debt Instrument, Fair Value Disclosure | $ 501,500 | 0 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.125% | ||
Debt Instrument, Face Amount | $ 500,000 | ||
7.50% senior debentures, due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | 110,123 | 110,103 | |
Debt Instrument, Fair Value Disclosure | $ 118,500 | 116,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
3.875% notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 496,608 | 496,448 | |
Debt Instrument, Fair Value Disclosure | $ 475,500 | 456,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | ||
Notes Due in 2032 - 2.95% | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 497,196 | 494,522 | |
Debt Instrument, Fair Value Disclosure | $ 420,500 | 395,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | ||
Other obligations with various interest rates and due dates | |||
Debt Instrument [Line Items] | |||
Other obligations with various interest rates and due dates | $ 1,298 | $ 425 |
Financial Instruments Measure_3
Financial Instruments Measured at Fair Value - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt and Equity Securities, Unrealized Gain (Loss) | $ 8,500 | $ (5,700) | |||
Marubun [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 8.40% | ||||
Fair Value, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and Cash Equivalents | $ 7,951 | $ 6,596 | |||
Equity investments | 56,031 | 50,614 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 50,225 | 55,942 | |||
Interest rate swaps designated as cash flow hedges - asset | 2,742 | ||||
Foreign exchange contracts designated as net investment hedges | 51,716 | 60,962 | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 168,665 | 174,114 | |||
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 | 7,951 | 6,596 | [1] | ||
Equity investments | [2] | 56,031 | 50,614 | ||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | |||
Interest rate swaps designated as cash flow hedges - asset | 0 | ||||
Foreign exchange contracts designated as net investment hedges | 0 | 0 | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 63,982 | 57,210 | |||
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 | |||
Equity investments | 0 | 0 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 50,225 | 55,942 | |||
Interest rate swaps designated as cash flow hedges - asset | 2,742 | ||||
Foreign exchange contracts designated as net investment hedges | 51,716 | 60,962 | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 104,683 | 116,904 | |||
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 | |||
Equity investments | 0 | 0 | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 0 | 0 | |||
Interest rate swaps designated as cash flow hedges - asset | 0 | ||||
Foreign exchange contracts designated as net investment hedges | 0 | 0 | |||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | $ 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 (loss) of $8.5 million and $(5.7) million for the first quarter of 2023 and 2022, 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 | |||||
Apr. 01, 2023 USD ($) | Apr. 02, 2022 USD ($) | Apr. 01, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | ||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 1,200,000 | $ 1,300,000 | ||||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | (433) | $ (575) | ||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments, after Tax | (1,700) | (5,000) | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3,951 | 1,333 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | (3,222) | 8,641 | ||||
Proceeds from settlement of net investment hedge | 10,725 | 0 | ||||
Hedged Asset, Fair Value Hedge, Cumulative Increase (Decrease) | (2,500) | |||||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | [1] | 2,048 | 2,201 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | [2] | 1,125 | 1,094 | |||
Cash Flow Hedging [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | 300,000 | $ 300,000 | ||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (839) | (868) | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | (4,347) | 7,547 | ||||
Fair Value Hedging | Interest Rate Swap [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 500,000 | |||||
Derivative, Fixed Interest Rate | 6.125% | 6.125% | ||||
Derivative, Variable Interest Rate | 50.80% | 50.80% | ||||
Fair Value Hedging | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | $ 2,742 | $ 0 | ||||
Maturity March 2023 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | € 0 | € 50,000 | ||||
Maturity September 2024 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 50,000 | 50,000 | ||||
Maturity April 2025 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 100,000 | 100,000 | ||||
Maturity January 2028 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 100,000 | 100,000 | ||||
All Maturities [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | € 250,000 | € 300,000 | ||||
April 2020 Swaps | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Average Fixed Interest Rate | 0.97% | 0.97% | 0.97% | 0.97% | ||
[1]Represents derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to “Interest and other financing expenses, net”.[2]Includes derivative losses of $1.7 million and $5.0 million for the first quarter of 2023 and 2022, respectively, which were excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income, net of tax. |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | ||
Earnings (Losses) Per Share, Diluted [Line Items] | |||
Net income attributable to shareholders | $ 273,750 | $ 364,749 | |
Weighted-average shares outstanding - basic | 58,731,000 | 67,840,000 | |
Net effect of various dilutive stock-based compensation awards | 748,000 | 909,000 | |
Weighted-average shares outstanding - diluted | 59,479,000 | 68,749,000 | |
Net income per share: | |||
Basic | $ 4.66 | $ 5.38 | |
Diluted | [1] | $ 4.60 | $ 5.31 |
Share-based Payment Arrangement [Member] | |||
Net income per share: | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 127,600 | 86,000 | |
[1]Stock-based compensation awards for the issuance of 127.6 thousand and 86.0 thousand shares for the first quarter of 2023 and 2022, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | ||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | $ 11,285 | $ (49,910) | |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | (433) | (575) | |
Employee Benefit Plan Items, Net: | (272) | 99 | |
Net change in Accumulated other comprehensive income (loss) | 3,794 | (41,312) | |
Other comprehensive gain (loss) before reclassifications [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | [1] | 8,008 | (48,700) |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | 1,125 | 1,094 | |
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), Reclassification, before Tax | (4,347) | 7,547 | |
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: | 5,600 | (8,300) | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | 200 | (341) | |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | (1,558) | (1,669) | |
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | 638 | 658 | |
Employee Benefit Plan Items, Net: | $ (272) | $ 99 | |
[1]Foreign currency translation adjustment includes intra-entity foreign currency transactions that are of a long-term investment nature of $5.6 million and $(8.3) million for the first quarter of 2023 and 2022, respectively.(b) For additional information related to net investment hedges and interest rate swaps refer to Note H. |
Shareholders' Equity-Common Sto
Shareholders' Equity-Common Stock Rollforward (Details) - shares shares in Thousands | 3 Months Ended | |||
Apr. 01, 2023 | Apr. 02, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Common Stock at Par Value | ||||
Share-Repurchase Programs [Line Items] | ||||
Common Stock, Shares, Outstanding | 56,998 | 66,436 | 59,249 | 68,066 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | (313) | (385) | ||
Treasury Stock, Shares, Acquired | (2,564) | (2,015) | ||
Treasury Stock | ||||
Share-Repurchase Programs [Line Items] | ||||
Common Stock, Shares, Outstanding | 68,426 | 58,988 | 66,175 | 57,358 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | (313) | (385) | ||
Treasury Stock, Shares, Acquired | (2,564) | (2,015) | ||
common stock issued | ||||
Share-Repurchase Programs [Line Items] | ||||
Common Stock, Shares, Outstanding | 125,424 | 125,424 | 125,424 | 125,424 |
Shares Issued, Shares, Share-Based Payment Arrangement, after Forfeiture | 0 | |||
Treasury Stock, Shares, Acquired | 0 | 0 |
Shareholders' Equity Share-Repu
Shareholders' Equity Share-Repurchase Programs (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Share-Repurchase Programs [Line Items] | ||
Dollar Value Approved for Repurchase | $ 2,800,000 | |
Dollar Value of Shares Repurchased | 1,771,503 | |
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 1,028,497 | |
Payments for Repurchase of Common Stock | 303,801 | $ 264,431 |
Stock Repurchased During Period, Value | 318,800 | 264,431 |
Share repurchase program | ||
Share-Repurchase Programs [Line Items] | ||
Payments for Repurchase of Common Stock | $ 300,200 | $ 250,000 |
Stock Repurchased During Period, Shares | 2,600 | 2,000 |
Shares Approved July 2021 [Member] | ||
Share-Repurchase Programs [Line Items] | ||
Dollar Value Approved for Repurchase | $ 600,000 | |
Dollar Value of Shares Repurchased | 600,000 | |
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 0 | |
December 2021 | ||
Share-Repurchase Programs [Line Items] | ||
Dollar Value Approved for Repurchase | 600,000 | |
Dollar Value of Shares Repurchased | 600,000 | |
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 0 | |
September 2022 | ||
Share-Repurchase Programs [Line Items] | ||
Dollar Value Approved for Repurchase | 600,000 | |
Dollar Value of Shares Repurchased | 571,503 | |
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 28,497 | |
January 2023 | ||
Share-Repurchase Programs [Line Items] | ||
Dollar Value Approved for Repurchase | 1,000,000 | |
Dollar Value of Shares Repurchased | 0 | |
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | $ 1,000,000 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Mar. 31, 2012 | |
Site Contingency [Line Items] | ||
Litigation Settlement, Amount Awarded from Other Party | $ 110,000 | |
Environmental Costs Recovered | $ 47,000 | |
Huntsville Site [Member] | ||
Site Contingency [Line Items] | ||
Environmental Remediation Expense To Date | 8,200 | |
Additional Expected Project Expenditures Low Estimate | 2,100 | |
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 | 81,000 | |
Additional Expected Project Expenditures Low Estimate | 6,000 | |
Additional Expected Project Expenditures High Estimate | $ 17,000 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 01, 2023 | Apr. 02, 2022 | ||
Sales: | |||
Sales | $ 8,736,428 | $ 9,074,125 | |
Operating income (loss): | |||
Operating income (loss) | 422,152 | 510,376 | |
Restructuring, integration, and other charges | 2,560 | 4,898 | |
Type of Restructuring [Domain] | |||
Operating income (loss): | |||
Restructuring, integration, and other charges | 4,900 | ||
Global Components | |||
Sales: | |||
Sales | 6,855,793 | 7,199,075 | |
Global ECS | |||
Sales: | |||
Sales | 1,880,635 | 1,875,050 | |
Other Segments | Global Components | |||
Operating income (loss): | |||
Operating income (loss) | 417,539 | 499,342 | |
Other Segments | Global ECS | |||
Operating income (loss): | |||
Operating income (loss) | 81,099 | 85,798 | |
Other Segments | Corporate | |||
Operating income (loss): | |||
Operating income (loss) | [1] | $ (76,486) | $ (74,764) |
[1]Corporate operating income (loss) includes restructuring, integration, and other charges of $2.6 million and $4.9 million for the first quarter of 2023 and 2022, respectively. |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Revenues From External Customers [Line Items] | ||
Sales | $ 8,736,428 | $ 9,074,125 |
Restructuring, integration, and other charges | 2,560 | 4,898 |
Global Components | ||
Revenues From External Customers [Line Items] | ||
Sales | 6,855,793 | 7,199,075 |
Global Components | Americas | ||
Revenues From External Customers [Line Items] | ||
Sales | 2,233,453 | 2,340,543 |
Global Components | EMEA [Member] | ||
Revenues From External Customers [Line Items] | ||
Sales | 2,246,145 | 1,927,003 |
Global Components | Asia Pacific | ||
Revenues From External Customers [Line Items] | ||
Sales | 2,376,195 | 2,931,529 |
Global ECS | ||
Revenues From External Customers [Line Items] | ||
Sales | 1,880,635 | 1,875,050 |
Global ECS | Americas | ||
Revenues From External Customers [Line Items] | ||
Sales | 998,114 | 1,047,849 |
Global ECS | EMEA [Member] | ||
Revenues From External Customers [Line Items] | ||
Sales | $ 882,521 | $ 827,201 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 01, 2023 | Apr. 02, 2022 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 76,547 | $ 112,360 |