Exhibit 99.1
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
----------------------- -----------------------
2003 2002 2003 2002
---------- ---------- ---------- ----------
Sales $2,480,824 $1,890,959 $8,679,313 $7,390,154
---------- ---------- ---------- ----------
Costs and expenses:
Cost of products sold 2,093,596 1,574,128 7,258,360 6,130,581
Selling, general and
administrative expenses 288,998 256,569 1,112,192 1,020,527
Depreciation and amortization 16,376 15,641 66,845 66,141
Restructuring charges 7,623 - 37,965 -
Acquisition indemnification
charge - - 13,002 -
Integration charge - - 6,904 -
Severance charge - - - 5,375
---------- ---------- ---------- ----------
2,406,593 1,846,338 8,495,268 7,222,624
---------- ---------- ---------- ----------
Operating income 74,231 44,621 184,045 167,530
Equity in earnings of
affiliated companies 1,661 641 4,797 2,607
Loss on prepayment of debt (A) 337 2,111 6,571 20,887
Interest expense, net 33,620 32,145 134,987 152,590
---------- ---------- ---------- ----------
Income (loss) before income taxes
and minority interest 41,935 11,006 47,284 (3,340)
Provision for (benefit from)
income taxes 15,620 3,788 21,206 (1,772)
---------- ---------- ---------- ----------
Income (loss) before minority
interest 26,315 7,218 26,078 (1,568)
Minority interest 303 (376) 378 (706)
---------- ---------- ---------- ----------
Income (loss) from continuing
operations 26,012 7,594 25,700 (862)
Loss from discontinued operations,
net of taxes (including loss from
disposal of $6,120, net of tax
benefit of $4,114,
in 2002) (B) - - - (5,911)
---------- ---------- ---------- ----------
Income (loss) before cumulative
effect of change in accounting
principle 26,012 7,594 25,700 (6,773)
Cumulative effect of change in
accounting principle (C) - - - (603,709)
---------- ---------- ---------- ----------
Net income (loss) $ 26,012 $ 7,594 $ 25,700 $ (610,482)
========== ========== ========== ==========
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands except per share data)
Three Months Ended Year Ended
December 31, December 31,
------------------ ------------------
2003 2002 2003 2002
-------- -------- -------- -------
Net income (loss) per basic share:
Income (loss) from continuing operations $ .26 $ .08 $ .26 $ (.01)
Loss from discontinued operations (B) - - - (.06)
Cumulative effect of change in
accounting principle (C) - - - (6.05)
-------- -------- -------- -------
Net income (loss) per basic share $ .26 $ .08 $ .26 $ (6.12)
======== ======== ======== =======
Net income (loss) per diluted share:
Income (loss) from continuing operations $ .26 $ .08 $ .25 $ (.01)
Loss from discontinued operations (B) - - - (.06)
Cumulative effect of change in
accounting principle (C) - - - (6.05)
-------- -------- -------- -------
Net income (loss) per diluted share $ .26 $ .08 $ .25 $ (6.12)
======== ======== ======== =======
Average number of shares outstanding:
Basic 100,329 99,921 100,142 99,786
Diluted 101,587 100,441 100,917 99,786
See accompanying notes.
ARROW ELECTRONICS, INC.
NOTES
(A) As required by Statement of Financial Accounting Standards No. 145,
"Recission of FASB Statements No. 4, 44, and 64, Amendment of FASB
Statement No. 13, and Technical Corrections," the company has recorded
any loss on the early retirement of debt as a component of continuing
operations. In prior periods such losses were recorded as an
extraordinary item, net of taxes, as required by Statement of Financial
Accounting Standards No. 4. Accordingly, all prior periods have been
restated to present the losses on the early retirement of debt as
required by Statement of Financial Accounting Standards No. 145.
(B) In May 2002, the company sold substantially all of the assets of
Gates/Arrow Distributing, a business unit within the company's North
American Computer Products group that sold commodity computer products
such as printers, monitors, other peripherals, and software to
value-added resellers in North America. This business is accounted for
as a discontinued operation in accordance with Statement of Financial
Accounting Standards No. 144, "Accounting for the Impairment or
Disposal of Long-Lived Assets." Accordingly, its results have been
included in the consolidated statement of operations as a single line
item and all prior period information has been restated to reflect this
presentation.
(C) The company adopted Statement of Financial Accounting Standards No.
142, "Goodwill and Other Intangible Assets," as of January 1, 2002. As
a result of the evaluation process, the company recorded an impairment
charge of $603.7 million ($6.05 per share on a basic and diluted basis
for the year ended December 31, 2002). In accordance with the
transitional rules, the company has recorded the impairment charge as a
cumulative effect of change in accounting principle effective with the
first quarter of 2002.
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEET
(In thousands)
December 31, December 31,
2003 2002
------------ ------------
Assets
Current assets:
Cash and short-term investments $ 612,404 $ 694,092
Accounts receivable, net 1,770,690 1,378,562
Inventories 1,327,523 1,201,271
Other 59,030 59,810
---------- ----------
Total current assets 3,769,647 3,333,735
Property, plant and equipment, net 288,129 299,518
Investments in affiliated companies 36,738 32,527
Cost in excess of net assets of
companies acquired 923,256 748,368
Other assets 315,218 253,457
---------- ----------
$5,332,988 $4,667,605
========== ==========
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable $1,211,724 $ 917,271
Accrued expenses 414,551 258,774
Short-term borrowings, including current
portion of long-term debt 14,349 286,348
---------- ----------
Total current liabilities 1,640,624 1,462,393
Long-term debt 2,016,627 1,807,113
Other 170,406 162,850
Shareholders' equity 1,505,331 1,235,249
---------- ----------
$5,332,988 $4,667,605
========== ==========
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
Three Months Ended Year Ended
December 31, December 31,
-------------------------- --------------------------
2003(A) 2002 2003(B) 2002(C)
----------- ----------- ----------- -----------
Sales:
Components $ 1,776,111 $ 1,317,213 $ 6,419,537 $ 5,322,196
Computer products 704,713 573,746 2,259,776 2,067,958
----------- ----------- ----------- -----------
Consolidated $ 2,480,824 $ 1,890,959 $ 8,679,313 $ 7,390,154
=========== =========== =========== ===========
Operating income:
Components $ 71,379 $ 40,004 $ 237,930 $ 183,680
Computer products 30,540 23,514 78,180 58,501
Corporate (27,688) (18,897) (132,065) (74,651)
----------- ----------- ----------- -----------
Consolidated $ 74,231 $ 44,621 $ 184,045 $ 167,530
=========== =========== =========== ===========
(A) Includes a restructuring charge of $7.6 million.
(B) Includes restructuring charges totaling $38.0 million, an acquisition
indemnification charge of $13.0 million, and an integration charge of $6.9
million.
(C) Includes a severance charge of $5.4 million.