Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly report | true | |
Document Period End Date | Sep. 30, 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, City or Town | Centennial | |
Entity Address, State or Province | CO | |
Entity Address, Postal Zip Code | 80112 | |
City Area Code | 303 | |
Local Phone Number | 824-4000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | ARW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,159,399 | |
Entity Central Index Key | 0000007536 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Sales | $ 8,007,019 | $ 9,266,432 | $ 25,257,963 | $ 27,801,399 |
Cost of sales | 7,027,422 | 8,079,520 | 22,098,495 | 24,170,769 |
Gross profit | 979,597 | 1,186,912 | 3,159,468 | 3,630,630 |
Operating expenses: | ||||
Selling, general, and administrative expenses | 563,150 | 634,353 | 1,822,783 | 1,931,918 |
Depreciation and amortization | 45,005 | 46,230 | 137,948 | 141,787 |
Restructuring, integration, and other charges (Note K) | 31,359 | 3,635 | 44,252 | 11,027 |
Total operating expenses | 639,514 | 684,218 | 2,004,983 | 2,084,732 |
Operating income | 340,083 | 502,694 | 1,154,485 | 1,545,898 |
Equity in earnings of affiliated companies | 1,392 | 1,718 | 4,373 | 4,726 |
(Loss) gain on investments, net | (6,159) | (3,480) | 4,649 | (11,213) |
Employee benefit plan expense, net | (854) | (890) | (2,510) | (2,614) |
Interest and other financing expense, net | (82,180) | (50,936) | (246,672) | (123,427) |
Income before income taxes | 252,282 | 449,106 | 914,325 | 1,413,370 |
Provision for income taxes | 52,241 | 105,500 | 201,168 | 332,273 |
Consolidated net income | 200,041 | 343,606 | 713,157 | 1,081,097 |
Noncontrolling interests | 1,382 | 1,207 | 4,189 | 3,615 |
Net income attributable to shareholders | $ 198,659 | $ 342,399 | $ 708,968 | $ 1,077,482 |
Net income per share: | ||||
Basic (in dollars per share) | $ 3.57 | $ 5.33 | $ 12.43 | $ 16.31 |
Diluted (in dollars per share) | $ 3.53 | $ 5.27 | $ 12.28 | $ 16.12 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 55,597 | 64,228 | 57,021 | 66,055 |
Diluted (in shares) | 56,298 | 64,979 | 57,715 | 66,845 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Consolidated net income | $ 200,041 | $ 343,606 | $ 713,157 | $ 1,081,097 |
Other comprehensive loss: | ||||
Foreign currency translation adjustment and other, net of taxes | (108,846) | (202,716) | (98,904) | (473,826) |
Unrealized gain on foreign exchange contracts designated as net investment hedges, net of taxes | 4,077 | 11,347 | (399) | 25,023 |
Unrealized gain on interest rate swaps designated as cash flow hedges, net of taxes | 519 | 7,303 | 2,257 | 27,187 |
Employee benefit plan items, net of taxes | (261) | 117 | (831) | 305 |
Other comprehensive loss | (104,511) | (183,949) | (97,877) | (421,311) |
Comprehensive income | 95,530 | 159,657 | 615,280 | 659,786 |
Less: Comprehensive income (loss) attributable to noncontrolling interests | 85 | (878) | 3,360 | (1,475) |
Comprehensive income attributable to shareholders | $ 95,445 | $ 160,535 | $ 611,920 | $ 661,261 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 333,294 | $ 176,915 |
Accounts receivable, net | 10,663,164 | 12,322,717 |
Inventories | 5,805,520 | 5,319,369 |
Other current assets | 503,982 | 521,339 |
Total current assets | 17,305,960 | 18,340,340 |
Property, plant, and equipment, at cost: | ||
Land | 5,691 | 5,691 |
Buildings and improvements | 185,790 | 184,211 |
Machinery and equipment | 1,616,937 | 1,583,661 |
Property, plant, and equipment, gross | 1,808,418 | 1,773,563 |
Less: Accumulated depreciation and amortization | (1,272,214) | (1,177,107) |
Property, plant, and equipment, net | 536,204 | 596,456 |
Investments in affiliated companies | 63,049 | 65,112 |
Intangible assets, net | 134,811 | 159,137 |
Goodwill | 2,021,987 | 2,027,626 |
Other assets | 576,349 | 574,511 |
Total assets | 20,638,360 | 21,763,182 |
LIABILITIES AND EQUITY | ||
Accounts payable | 9,090,554 | 10,460,419 |
Accrued expenses | 1,256,815 | 1,339,302 |
Short-term borrowings, including current portion of long-term debt | 1,588,662 | 589,883 |
Total current liabilities | 11,936,031 | 12,389,604 |
Long-term debt | 2,615,001 | 3,182,964 |
Other liabilities | 533,853 | 579,261 |
Commitments and contingencies (Note K) | ||
Equity: | ||
Common stock, par value $1: Authorized - 160,000 shares in both 2023 and 2022 Issued - 125,424 shares in both 2023 and 2022 | 125,424 | 125,424 |
Capital in excess of par value | 1,205,788 | 1,208,708 |
Treasury stock (71,269 and 66,175 shares in 2023 and 2022, respectively), at cost | (5,307,441) | (4,637,345) |
Retained earnings | 9,923,800 | 9,214,832 |
Accumulated other comprehensive loss | (462,310) | (365,262) |
Total shareholders' equity | 5,485,261 | 5,546,357 |
Noncontrolling interests | 68,214 | 64,996 |
Total equity | 5,553,475 | 5,611,353 |
Total liabilities and equity | $ 20,638,360 | $ 21,763,182 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares shares in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
CONSOLIDATED BALANCE SHEETS | ||
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 | 71,269 | 66,175 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Oct. 01, 2022 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 713,157 | $ 1,081,097 |
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | ||
Depreciation and amortization | 137,948 | 141,787 |
Amortization of stock-based compensation | 34,868 | 35,009 |
Equity in earnings of affiliated companies | (4,373) | (4,726) |
Deferred income taxes | (53,038) | 1,468 |
(Gain) loss on investments, net | (4,649) | 11,213 |
Other | 4,078 | 2,673 |
Change in assets and liabilities: | ||
Accounts receivable, net | 1,585,521 | (628,974) |
Inventories | (525,020) | (1,011,763) |
Accounts payable | (1,355,777) | 166,602 |
Accrued expenses | (88,348) | 192,759 |
Other assets and liabilities | (25,660) | (128,909) |
Net cash provided by (used for) operating activities | 418,707 | (141,764) |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (57,775) | (54,780) |
Proceeds from collections of notes receivable | 237 | 20,805 |
Proceeds from settlement of net investment hedge | 10,725 | 0 |
Net cash used for investing activities | (46,813) | (33,975) |
Cash flows from financing activities: | ||
Change in short-term and other borrowings | 802,032 | 276,516 |
(Repayments of) proceeds from long-term bank borrowings, net | (566,734) | 1,238,268 |
Net proceeds from note offering | 496,268 | 0 |
Redemption of notes | (300,000) | (350,000) |
Proceeds from exercise of stock options | 16,824 | 16,434 |
Repurchases of common stock | (719,708) | (725,254) |
Settlement of forward-starting interest rate swap | 56,711 | 0 |
Other | (142) | (137) |
Net cash (used for) provided by financing activities | (214,749) | 455,827 |
Effect of exchange rate changes on cash | (766) | (168,297) |
Net increase in cash and cash equivalents | 156,379 | 111,791 |
Cash and cash equivalents at beginning of period | 176,915 | 222,194 |
Cash and cash equivalents at end of period | $ 333,294 | $ 333,985 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Common Stock at Par Value | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total |
Balance at Dec. 31, 2021 | $ 125,424 | $ 1,189,845 | $ (3,629,265) | $ 7,787,948 | $ (191,657) | $ 58,551 | $ 5,340,846 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 364,749 | 1,247 | 365,996 | ||||
Other comprehensive income (loss) | (41,312) | (869) | (42,181) | ||||
Amortization of stock-based compensation | 17,351 | 17,351 | |||||
Shares issued for stock-based compensation awards | (20,601) | 31,903 | 11,302 | ||||
Repurchases of common stock | (264,431) | (264,431) | |||||
Balance at Apr. 02, 2022 | 125,424 | 1,186,595 | (3,861,793) | 8,152,697 | (232,969) | 58,929 | 5,428,883 |
Balance at Dec. 31, 2021 | 125,424 | 1,189,845 | (3,629,265) | 7,787,948 | (191,657) | 58,551 | 5,340,846 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 1,081,097 | ||||||
Other comprehensive income (loss) | (421,311) | ||||||
Balance at Oct. 01, 2022 | 125,424 | 1,201,185 | (4,338,414) | 8,865,430 | (607,878) | 56,939 | 5,302,686 |
Balance at Apr. 02, 2022 | 125,424 | 1,186,595 | (3,861,793) | 8,152,697 | (232,969) | 58,929 | 5,428,883 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 370,334 | 1,161 | 371,495 | ||||
Other comprehensive income (loss) | (193,045) | (2,136) | (195,181) | ||||
Amortization of stock-based compensation | 13,885 | 13,885 | |||||
Shares issued for stock-based compensation awards | (1,950) | 6,320 | 4,370 | ||||
Repurchases of common stock | (225,032) | (225,032) | |||||
Distributions | (137) | (137) | |||||
Balance at Jul. 02, 2022 | 125,424 | 1,198,530 | (4,080,505) | 8,523,031 | (426,014) | 57,817 | 5,398,283 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 342,399 | 1,207 | 343,606 | ||||
Other comprehensive income (loss) | (181,864) | (2,085) | (183,949) | ||||
Amortization of stock-based compensation | 3,773 | 3,773 | |||||
Shares issued for stock-based compensation awards | (1,118) | 1,880 | 762 | ||||
Repurchases of common stock | (259,789) | (259,789) | |||||
Balance at Oct. 01, 2022 | 125,424 | 1,201,185 | (4,338,414) | 8,865,430 | (607,878) | 56,939 | 5,302,686 |
Balance at Dec. 31, 2022 | 125,424 | 1,208,708 | (4,637,345) | 9,214,832 | (365,262) | 64,996 | 5,611,353 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 0 | 0 | 0 | 273,750 | 0 | 1,575 | 275,325 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 3,794 | 3,077 | 6,871 |
Amortization of stock-based compensation | 0 | 19,497 | 0 | 0 | 0 | 0 | 19,497 |
Shares issued for stock-based compensation awards | 0 | (25,071) | 31,005 | 0 | 0 | 0 | 5,934 |
Repurchases of common stock | 0 | 0 | (318,800) | 0 | 0 | 0 | (318,800) |
Balance at Apr. 01, 2023 | 125,424 | 1,203,134 | (4,925,140) | 9,488,582 | (361,468) | 69,648 | 5,600,180 |
Balance at Dec. 31, 2022 | 125,424 | 1,208,708 | (4,637,345) | 9,214,832 | (365,262) | 64,996 | 5,611,353 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 713,157 | ||||||
Other comprehensive income (loss) | (97,877) | ||||||
Balance at Sep. 30, 2023 | 125,424 | 1,205,788 | (5,307,441) | 9,923,800 | (462,310) | 68,214 | 5,553,475 |
Balance at Apr. 01, 2023 | 125,424 | 1,203,134 | (4,925,140) | 9,488,582 | (361,468) | 69,648 | 5,600,180 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 0 | 0 | 0 | 236,559 | 0 | 1,232 | 237,791 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 2,372 | (2,609) | (237) |
Amortization of stock-based compensation | 0 | 8,852 | 0 | 0 | 0 | 0 | 8,852 |
Shares issued for stock-based compensation awards | 0 | (8,922) | 19,369 | 0 | 0 | 0 | 10,447 |
Repurchases of common stock | 0 | 0 | (202,417) | 0 | 0 | 0 | (202,417) |
Distributions | 0 | 0 | 0 | 0 | 0 | (142) | (142) |
Balance at Jul. 01, 2023 | 125,424 | 1,203,064 | (5,108,188) | 9,725,141 | (359,096) | 68,129 | 5,654,474 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Consolidated net income | 0 | 0 | 0 | 198,659 | 0 | 1,382 | 200,041 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | (103,214) | (1,297) | (104,511) |
Amortization of stock-based compensation | 0 | 6,519 | 0 | 0 | 0 | 0 | 6,519 |
Shares issued for stock-based compensation awards | 0 | (3,795) | 4,238 | 0 | 0 | 0 | 443 |
Repurchases of common stock | 0 | 0 | (203,491) | 0 | 0 | 0 | (203,491) |
Balance at Sep. 30, 2023 | $ 125,424 | $ 1,205,788 | $ (5,307,441) | $ 9,923,800 | $ (462,310) | $ 68,214 | $ 5,553,475 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation | |
Basis of Presentation | Note A – 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 | 9 Months Ended |
Sep. 30, 2023 | |
Impact of Recently Issued Accounting Standards | |
Impact of Recently Issued Accounting Standards | Note B – 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 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets | |
Goodwill and Intangible Assets | Note C – Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global (thousands) Components Global ECS Total Balance as of December 31, 2022 (a) $ 873,003 $ 1,154,623 $ 2,027,626 Foreign currency translation adjustment (3,875) (1,764) (5,639) Balance as of September 30, 2023 (a) $ 869,128 $ 1,152,859 $ 2,021,987 (a) The total carrying value of goodwill as of September 30, 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 $302.9 million was recorded in the global enterprise computing solutions (“ECS”) business segment. Intangible assets, net, are comprised of the following as of September 30, 2023: Gross Carrying Accumulated (thousands) Amount Amortization Net Customer relationships $ 263,968 $ (157,138) $ 106,830 Amortizable trade name 74,006 (46,025) 27,981 $ 337,974 $ (203,163) $ 134,811 Intangible assets, net, are comprised of the following as of December 31, 2022: Gross Carrying Accumulated (thousands) Amount 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 third quarter of 2023 and 2022, the company recorded amortization expense related to identifiable intangible assets of $7.9 million and $8.7 million, respectively. During the first nine months of 2023 and 2022, amortization expense related to identifiable intangible assets was $23.8 million and $26.5 million, respectively. |
Investments in Affiliated Compa
Investments in Affiliated Companies | 9 Months Ended |
Sep. 30, 2023 | |
Investments in Affiliated Companies | |
Investments in Affiliated Companies | Note D – 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: September 30, December 31, (thousands) 2023 2022 Marubun/Arrow $ 51,790 $ 54,292 Other 11,259 10,820 $ 63,049 $ 65,112 The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Marubun/Arrow $ 978 $ 1,374 $ 2,946 $ 3,914 Other 414 344 1,427 812 $ 1,392 $ 1,718 $ 4,373 $ 4,726 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 September 30, 2023, and December 31, 2022. |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable | |
Accounts Receivable | Note E – Accounts Receivable Accounts receivable, net, consists of the following: September 30, December 31, (thousands) 2023 2022 Accounts receivable $ 10,807,108 $ 12,416,114 Allowances for doubtful accounts (143,944) (93,397) Accounts receivable, net $ 10,663,164 $ 12,322,717 Changes in the allowance for doubtful accounts consists of the following: Nine Months Ended September 30, October 1, (thousands) 2023 2022 Balance at beginning of period $ 93,397 $ 75,901 Charged to income 64,701 26,869 Translation adjustments (575) (3,660) Writeoffs (13,579) (9,885) Balance at end of period $ 143,944 $ 89,225 The company monitors the current credit condition of its customers and other available information about expected credit losses in estimating its allowance for credit losses. During the first nine months of 2023, increases to the allowance for credit losses charged to income were $37.8 million higher than the prior year period, primarily due to the aging of receivables of certain customers, and the corresponding increase to the allowance in accordance with the company’s policies. With the exception of these few customers, as of September 30, 2023, the company has not experienced significant changes in customers’ payment trends or significant deterioration in customers’ credit risk. 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 the Europe, Middle East, and Africa (“EMEA”) region, at a discount, to a special purpose entity, which in turn sells certain of the receivables to unaffiliated financial institutions and conduits administered by such unaffiliated financial institutions (“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 July 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 Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 EMEA asset securitization, sales of accounts receivable $ 815,812 $ 834,456 $ 2,486,022 $ 1,943,723 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” on 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: September 30, December 31, (thousands) 2023 2022 Receivables sold to unaffiliated financial institutions that were uncollected $ 612,321 $ 628,930 Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. 933,752 932,243 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 securitization program. The assets of the special purpose entity cannot be used by the company for general corporate purposes. Additionally, the financial obligations of Arrow EMEA Funding Corp B.V. to the unaffiliated financial institutions under the program are limited to the assets it owns and there is no recourse to Arrow Electronics, Inc. for receivables that are uncollectible as a result of the insolvency or the inability to pay of the account debtors. The EMEA asset securitization program includes terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. As of September 30, 2023, the company was in compliance with all such financial covenants. |
Supplier Finance Programs
Supplier Finance Programs | 9 Months Ended |
Sep. 30, 2023 | |
Supplier Finance Programs | |
Supplier Finance Programs | Note F – Supplier Finance Programs At 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 September 30, 2023, and December 31, 2022, the company had $944.2 million and $1.5 billion, respectively, in obligations outstanding under these programs included in “Accounts payable” on 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. |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt | |
Debt | Note G – Debt Short-term borrowings, including current portion of long-term debt, consist of the following: September 30, December 31, (thousands) 2023 2022 4.50% notes, due March 2023 $ — $ 299,895 3.25% notes, due September 2024 498,944 — Uncommitted lines of credit 50,000 78,000 Commercial paper 903,223 173,407 Other short-term borrowings 136,495 38,581 $ 1,588,662 $ 589,883 The company has $500.0 million in uncommitted lines of credit. In May 2023, the company increased the borrowing capacity on its uncommitted lines from $200.0 million to $500.0 million. There were $50.0 million and $78.0 million in outstanding borrowings under the uncommitted lines of credit at September 30, 2023 and December 31, 2022, respectively. These borrowings were provided on a short-term basis and the maturity is agreed upon between the company and the lender. The uncommitted lines of credit had an effective interest rate of 6.42% and 5.22% at September 30, 2023 and December 31, 2022, respectively. The company has a commercial paper program, and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1.2 billion. Amounts outstanding under the commercial paper program are backstopped by available commitments under the company’s revolving credit facility. The company had $903.2 million in outstanding borrowings under this program at September 30, 2023 and $173.4 million in outstanding borrowings at December 31, 2022. The commercial paper program had an effective interest rate of 5.95% and 5.15% at September 30, 2023 and December 31, 2022, respectively. Long-term debt consists of the following: September 30, December 31, (thousands) 2023 2022 Revolving Credit Facility $ 54,000 $ — North American asset securitization program 605,000 1,235,000 3.25% notes, due 2024 — 498,122 4.00% notes, due 2025 348,879 348,344 6.125% notes, due 2026 496,304 — 7.50% senior debentures, due 2027 110,164 110,103 3.875% notes, due 2028 496,933 496,448 2.95% notes, due 2032 494,908 494,522 Other obligations with various interest rates and due dates 8,813 425 $ 2,615,001 $ 3,182,964 The 7.50% senior debentures are not redeemable prior to their maturity. The 6.125% notes have a call option which allows for redemption at par, without penalty, on or after March 1, 2024. All other notes may be called at the option of the company subject to “make whole” clauses. The estimated fair market value of long-term debt, using quoted market prices, is as follows: September 30, December 31, (thousands) 2023 2022 3.25% notes, due 2024 $ — $ 481,500 4.00% notes, due 2025 339,000 338,000 6.125% notes, due 2026 498,000 — 7.50% senior debentures, due 2027 114,000 116,500 3.875% notes, due 2028 457,000 456,000 2.95% notes, due 2032 390,500 395,500 The carrying amount of the company’s other short-term borrowings, uncommitted lines of credit, revolving credit facility, 3.25% notes due in 2024, North American asset securitization program, commercial paper, and other obligations approximate their fair value. The company has a $2.0 billion revolving credit facility maturing in September 2026. The facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company’s commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a secured overnight financing rate (“SOFR”), plus a spread (1.08% at September 30, 2023), which is based on the company’s credit ratings, plus a credit spread adjustment of 0.10% or an effective interest rate of 6.42% at September 30, 2023. The facility fee, which is based on the company’s credit ratings, was 0.175% of the total borrowing capacity at September 30, 2023. The company had $54.0 million in outstanding borrowings under the revolving credit facility at September 30, 2023 and no outstanding borrowings under the revolving credit facility at December 31, 2022. The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. The company may borrow up to $1.5 billion under the program which matures in September 2025. The program is conducted through Arrow Electronics Funding Corporation (“AFC”), a wholly-owned, bankruptcy remote subsidiary. The North American asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company’s consolidated balance sheets. Interest on borrowings is calculated using a base rate plus a spread (0.40% at September 30, 2023) plus a credit spread adjustment of 0.10% or an effective interest rate of 5.82% at September 30, 2023. The facility fee is 0.40% of the total borrowing capacity. The company had $605.0 million and $1.2 billion in outstanding borrowings under the North American asset securitization program at September 30, 2023 and December 31, 2022, respectively, which was included in “Long-term debt” on the company’s consolidated balance sheets. Total collateralized accounts receivable of approximately $2.4 billion and $3.1 billion were held by AFC and were included in “ Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. As of September 30, 2023, the company was in compliance with all such financial covenants. During the first quarter of 2023, the company completed the sale of $500.0 million principal amount of 6.125% notes due in March 2026. The notes have a call option which allows for redemption at par, without penalty, on or after March 1, 2024. The net proceeds of the offering of $496.3 million were used to repay the $300.0 million principal amount of its 4.50% notes due March 2023 and for general corporate purposes. On the issuance date, the company entered into an interest rate swap, which effectively converts the 6.125% notes to a floating rate based on daily compounding SOFR + 0.508%. Refer to Note H for additional information. During February 2022, the company repaid $350.0 million principal amount of its 3.50% notes due April 2022. In the normal course of business, certain of the company’s subsidiaries have agreements to sell, without recourse, selected trade receivables to financial institutions. The company does not retain financial or legal interests in these receivables, and, accordingly they are accounted for as sales of the related receivables, and the receivables are removed from the company’s consolidated balance sheets. Interest and dividend income of $16.9 million and $47.6 million for the third quarter and first nine months of 2023, respectively, and $8.3 million and $18.8 million for the third quarter and first nine months of 2022, respectively were recorded in “Interest and other financing expense, net” within the company’s consolidated statements of operations. |
Financial Instruments Measured
Financial Instruments Measured at Fair Value | 9 Months Ended |
Sep. 30, 2023 | |
Financial Instruments Measured at Fair Value | |
Financial Instruments Measured At Fair Value | Note H – 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 September 30, 2023: (thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents $ 9,954 $ — $ — $ 9,954 Equity investments (b) Other assets 47,482 — — 47,482 Interest rate swap designated as fair value hedge Other liabilities — (2,043) — (2,043) Foreign exchange contracts designated as net investment hedges Other assets/other current assets — 55,369 — 55,369 $ 57,436 $ 53,326 $ — $ 110,762 The following table presents assets measured at fair value on a recurring basis at December 31, 2022: (thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/other assets $ 6,596 $ — $ — $ 6,596 Equity investments (b) Other assets 50,614 — — 50,614 Interest rate swaps designated as cash flow hedges Other assets — 55,942 — 55,942 Foreign exchange contracts designated as net investment hedges Other assets/other current assets — 60,962 — 60,962 $ 57,210 $ 116,904 $ — $ 174,114 (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 (loss) gain of ($4.2) million and $1.6 million for the third quarter and first nine months of 2023, respectively, on equity securities held at the end of the quarter. The company recorded an unrealized loss of ($2.1) million and ($12.4) million for the third quarter and first nine months of 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 carried at fair value on the consolidated balance sheets with changes in fair value 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 on 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. In June 2023, the company terminated its outstanding forward-starting interest rate swaps and received a cash payment of $56.7 million, which is reported in the “Cash flows from financing activities” section of the consolidated statements of cash flows. The forecasted transactions related to the swaps continue to be probable to occur by December 31, 2025 and the $56.7 million gain on the termination of the interest rate swaps will remain in “Accumulated other comprehensive loss” on the company’s consolidated balance sheets. At December 31, 2022, the company had the following outstanding interest rate swaps designated as cash flow hedges: Notional Amount Weighted-Average Date Range of Trade Date Maturity Date (thousands) Interest Rate Forecasted Transaction April 2020 December 2024 $ 300,000 0.97% Jan 2023 - Dec 2025 The company occasionally enters into interest rate swap transactions, designated as fair value hedges, that convert certain fixed-rate debt to variable-rate debt in order to manage its targeted mix of fixed- and floating-rate debt. 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. As of September 30, 2023, the company had one outstanding interest rate swap designated as a fair value hedge, the terms of which are as follows: Notional Amount Interest Rate due Interest Rate due to Trade Date Maturity Date (thousands) from Counterparty Counterparty February 2023 March 2026 $ 500,000 6.125% SOFR+0.508% The counterparty to the interest rate swap has the option to cancel the swaps after one year, without penalty. 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 September 30, 2023 and December 31, 2022 was $1.1 billion and $1.3 billion, respectively. Gains and losses related to non-designated foreign currency exchange contracts are recorded in “Cost of sales” on 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, on 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, hedging a portion of the company’s net investments in subsidiaries with Euro-denominated net assets: Notional Amount (thousands) Maturity Date September 30, 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 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” on the company’s consolidated balance sheets. Amounts excluded from the assessment of hedge effectiveness are included in “Interest and other financing expense, net” on 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 flows 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: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) Income Statement Line 2023 2022 2023 2022 Gain (Loss) Recognized in Income Foreign exchange contracts, net investment hedge (a) Interest Expense $ 1,804 $ 2,202 $ 5,656 $ 6,604 Interest rate swaps, cash flow hedge Interest Expense (683) (906) (2,199) (2,671) Interest rate swap, fair value hedge (b) Interest Expense (247) — (2,043) — Total $ 874 $ 1,296 $ 1,414 $ 3,933 Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax Foreign exchange contracts, net investment hedge (c) $ 5,448 $ 13,016 $ 3,902 $ 30,031 Interest rate swaps, cash flow hedge — 6,616 585 25,161 Total $ 5,448 $ 19,632 $ 4,487 $ 55,192 (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 amount of fair value hedging adjustments to the carrying value of hedged debt instruments totaled a gain of $0.2 million and $1.1 million for the third quarter and first nine months of 2023, respectively. (c) Includes derivative losses of $0.9 million and $1.0 million for the third quarter of 2023 and 2022, respectively, and $4.3 million and $3.5 million for the first nine months of 2023 and 2022, respectively, which were excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (loss), 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 per Share
Net Income per Share | 9 Months Ended |
Sep. 30, 2023 | |
Net Income per Share | |
Net Income per Share | Note I – Net Income per Share Basic net income per share is computed by dividing net income attributable to shareholders by the weighted-average number of common shares outstanding for the period. Diluted net income per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. The dilutive effect of equity awards is calculated using the treasury stock method. The following table presents the computation of net income per share on a basic and diluted basis: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands except per share data) 2023 2022 2023 2022 Net income attributable to shareholders $ 198,659 $ 342,399 $ 708,968 $ 1,077,482 Weighted-average shares outstanding - basic 55,597 64,228 57,021 66,055 Net effect of various dilutive stock-based compensation awards 701 751 694 790 Weighted-average shares outstanding - diluted 56,298 64,979 57,715 66,845 Net income per share: Basic $ 3.57 $ 5.33 $ 12.43 $ 16.31 Diluted (a) $ 3.53 $ 5.27 $ 12.28 $ 16.12 (a) Equity awards excluded from diluted net income per share as their effect would have been anti-dilutive - 203 43 53 |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity | |
Shareholders' Equity | Note J – Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) The following table presents the changes in Accumulated other comprehensive income (loss), excluding noncontrolling interests: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Foreign Currency Translation Adjustment and Other: Other comprehensive loss before reclassifications (a) $ (107,891) $ (200,163) $ (98,801) $ (467,465) Amounts reclassified into income 342 (468) 726 (1,271) Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications (b) 5,448 13,016 3,902 30,031 Amounts reclassified into income (1,371) (1,669) (4,301) (5,008) Unrealized Gain on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive income before reclassifications (b) — 6,616 585 25,161 Amounts reclassified into income 519 687 1,672 2,026 Employee Benefit Plan Items, Net: Amounts reclassified into income (261) 117 (831) 305 Net change in Accumulated other comprehensive loss $ (103,214) $ (181,864) $ (97,048) $ (416,221) (a) Foreign currency translation adjustment includes intra-entity foreign currency transactions that are of a long-term investment nature of ($21.0) million and $7.1 million for the third quarter and first nine months of 2023, and $20.2 million and $48.5 million for the third quarter and first nine months of 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: Common Common Stock Treasury Stock (thousands) Issued 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 Shares issued for stock-based compensation awards — (264) 264 Repurchases of common stock — 1,600 (1,600) Common stock outstanding at July 1, 2023 125,424 69,762 55,662 Shares issued for stock-based compensation awards — (45) 45 Repurchases of common stock — 1,552 (1,552) Common stock outstanding at September 30, 2023 125,424 71,269 54,155 Common Common Stock Treasury Stock (thousands) Issued 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 Shares issued for stock-based compensation awards — (96) 96 Repurchases of common stock — 1,929 (1,929) Common stock outstanding at July 2, 2022 125,424 60,821 64,603 Shares issued for stock-based compensation awards — (25) 25 Repurchases of common stock — 2,528 (2,528) Common stock outstanding at October 1, 2022 125,424 63,324 62,100 Share-Repurchase Program The following table shows the company’s share-repurchase program as of September 30, 2023: Approximate Dollar Value of Dollar Value Dollar Value of Shares that May Approved for Shares Yet be Purchased Share-Repurchase Details by Month of Board Approval (thousands) Repurchase Repurchased Under the Program July 2021 $ 600,000 $ 600,000 $ — December 2021 600,000 600,000 — September 2022 600,000 600,000 — January 2023 1,000,000 378,414 621,586 Total (a) $ 2,800,000 $ 2,178,414 $ 621,586 (a) The dollar value of shares repurchased includes an accrual of $6.2 million for excise taxes during the first nine months of 2023 which is recorded within “Treasury stock” on the company’s consolidated balance sheets. The company repurchased 1.6 million shares and 5.7 million shares of common stock for $200.0 million and $700.9 million, in the third quarter and first nine months of 2023, respectively, under the share-repurchase program, excluding excise taxes. On January 31, 2023, the company’s Board of Directors approved a $1.0 billion increase to the company’s share-repurchase program. As of September 30, 2023, approximately $621.6 million remained available for repurchase under the share-repurchase program. The company’s share-repurchase program does not have an expiration date. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Contingencies | |
Contingencies | Note K – Contingencies Environmental Matters In connection with the purchase of Wyle Electronics (“Wyle”) in August 2000, the company entered into a settlement agreement under which, the company accepted responsibility for any potential subsequent costs incurred for environmental clean-up associated with any then-existing contamination or violation of environmental regulations. The company is aware of two facilities (in Huntsville, Alabama (the “Huntsville Site”) and Norco, California (the “Norco Site”)) at which contaminated soil and groundwater was identified and required environmental remediation. 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 $47.2 million from certain insurance carriers relating to environmental clean-up matters at the Norco and Huntsville sites, and continues to pursue additional recoveries from one insurer related solely to the Huntsville site. 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. 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. Environmental liabilities are included in “Accrued expenses” and “Other liabilities” on the company’s consolidated balance sheets. The company has determined that there is no amount within the environmental liability ranges discussed below that is a better estimate than any other amount, and therefore has recorded the accruals at the minimum amount of the ranges. The liabilities were estimated based on current costs and are not discounted. The costs related to these environmental matters (referred to as “environmental costs”) include remediation, project management, regulatory oversight, and investigative and feasibility study activities. The company expects the liabilities associated with such ongoing remediation to be resolved over an extended period of time and the 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, orders by administrative agencies, 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 the Huntsville and Norco sites. During the third quarter and first nine months of 2023, the company recorded charges of $20.9 million and $23.3 million, respectively, related to increases in the environmental liabilities for the Norco and Huntsville sites. The company recorded charges of $1.9 million and $2.2 million, for the third quarter and first nine months of 2022. These costs are included in “Restructuring, integration, and other charges” on the company’s consolidated statements of operations. 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. Due to the effectiveness of the pilot testing, the pilot testing process has been expanded and remains underway with annual application of bioremediation reagents, semi-annual groundwater monitoring, as well as data collection to direct future bioremediation injections. Approximately $8.6 million has been spent to date. The subsequent environmental costs at the site are estimated to be between $5.8 million and $17.5 million. 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. 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. Routine progress monitoring of groundwater and soil gas continue on-site and off-site. Approximately $82.2 million has been spent to date. The subsequent environmental costs at the site are estimated to be between $23.0 million and $39.3 million. It is reasonably possible that the company will need to adjust the liabilities noted above for the Norco and Huntsville sites to reflect the effects of new or additional information, to the extent that such information impacts the costs, timing or duration of the required actions. Future changes in estimates of the costs, timing or duration of the required actions could have a material adverse effect on the company’s consolidated financial position, results of operations or cash flows. Other During the third quarter of 2023, the company received $62.2 million in settlement funds in connection with claims filed against certain manufacturers of aluminum, tantalum, and film capacitors who allegedly colluded to fix the price of capacitors from 2001 through 2014. These amounts were recorded as a reduction to “Selling, general, and administrative expenses” in the company’s consolidated statements of operations. 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 | 9 Months Ended |
Sep. 30, 2023 | |
Segment and Geographic Information | |
Segment and Geographic Information | Note L – 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. The 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, operating income for the segments excludes unallocated corporate overhead costs, depreciation on corporate fixed assets, and restructuring, integration and other costs, as they are not attributable to the individual operating segments and are included in the corporate line item. Sales, by segment by geographic area, are as follows: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Sales: Components: Americas $ 1,869,934 $ 2,445,647 $ 6,169,949 $ 7,265,552 EMEA 1,987,423 1,935,827 6,387,047 5,671,234 Asia/Pacific 2,387,835 2,918,873 7,226,871 9,024,188 Global components $ 6,245,192 $ 7,300,347 $ 19,783,867 $ 21,960,974 ECS: Americas $ 1,015,924 $ 1,234,158 $ 3,014,544 $ 3,442,803 EMEA 745,903 731,927 2,459,552 2,397,622 Global ECS $ 1,761,827 $ 1,966,085 $ 5,474,096 $ 5,840,425 Consolidated $ 8,007,019 $ 9,266,432 $ 25,257,963 $ 27,801,399 Operating income (loss), by segment, are as follows: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Operating income (loss): Global components (a) $ 379,053 $ 494,587 $ 1,177,906 $ 1,518,423 Global ECS (b) 54,624 83,976 221,951 253,744 Corporate (c) (93,594) (75,869) (245,372) (226,269) Consolidated $ 340,083 $ 502,694 $ 1,154,485 $ 1,545,898 (a) Global components operating income includes $62.2 million in settlement charges recorded as a reduction to operating expense for the third quarter and first nine months of 2023. Refer to Note K for additional information. Charges to increase the allowance for credit losses increased $16.8 million and $11.0 million for the third quarter and first nine months of 2023, respectively, relative to the year-earlier periods. (b) Global ECS operating income includes charges to increase the allowance for credit losses, which increased by $20.0 million and $26.8 million for the third quarter and first nine months of 2023, respectively, relative to the year-earlier periods. (c) Corporate operating loss includes restructuring, integration, and other charges of $31.4 million and $44.3 million for the third quarter and first nine months of 2023, respectively, and $3.6 million and $11.0 million for the third quarter and first nine months of 2022, respectively . |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Basis of Presentation | |
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, 3.25% notes due in 2024, North American asset securitization program, commercial paper, and other obligations approximate their fair value. |
Fair Value of Financial Instruments Policy | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets | |
Schedule of goodwill of companies acquired | Global (thousands) Components Global ECS Total Balance as of December 31, 2022 (a) $ 873,003 $ 1,154,623 $ 2,027,626 Foreign currency translation adjustment (3,875) (1,764) (5,639) Balance as of September 30, 2023 (a) $ 869,128 $ 1,152,859 $ 2,021,987 (a) The total carrying value of goodwill as of September 30, 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 $302.9 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 September 30, 2023: Gross Carrying Accumulated (thousands) Amount Amortization Net Customer relationships $ 263,968 $ (157,138) $ 106,830 Amortizable trade name 74,006 (46,025) 27,981 $ 337,974 $ (203,163) $ 134,811 Intangible assets, net, are comprised of the following as of December 31, 2022: Gross Carrying Accumulated (thousands) Amount 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) | 9 Months Ended |
Sep. 30, 2023 | |
Investments in Affiliated Companies | |
Schedule of investment in affiliated companies | September 30, December 31, (thousands) 2023 2022 Marubun/Arrow $ 51,790 $ 54,292 Other 11,259 10,820 $ 63,049 $ 65,112 |
Schedule of equity in earnings (losses) of affiliated companies | Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Marubun/Arrow $ 978 $ 1,374 $ 2,946 $ 3,914 Other 414 344 1,427 812 $ 1,392 $ 1,718 $ 4,373 $ 4,726 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounts Receivable | |
Schedule of accounts receivable, net | September 30, December 31, (thousands) 2023 2022 Accounts receivable $ 10,807,108 $ 12,416,114 Allowances for doubtful accounts (143,944) (93,397) Accounts receivable, net $ 10,663,164 $ 12,322,717 |
Schedule of changes in the allowance for doubtful accounts | Nine Months Ended September 30, October 1, (thousands) 2023 2022 Balance at beginning of period $ 93,397 $ 75,901 Charged to income 64,701 26,869 Translation adjustments (575) (3,660) Writeoffs (13,579) (9,885) Balance at end of period $ 143,944 $ 89,225 |
Sales of accounts receivable to unaffiliated financial institutions under the EMEA asset securitization program | Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 EMEA asset securitization, sales of accounts receivable $ 815,812 $ 834,456 $ 2,486,022 $ 1,943,723 |
Schedule of other amounts related to the EMEA asset securitization program | September 30, December 31, (thousands) 2023 2022 Receivables sold to unaffiliated financial institutions that were uncollected $ 612,321 $ 628,930 Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. 933,752 932,243 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt | |
Schedule of short-term borrowings, including current portion of long-term debt | September 30, December 31, (thousands) 2023 2022 4.50% notes, due March 2023 $ — $ 299,895 3.25% notes, due September 2024 498,944 — Uncommitted lines of credit 50,000 78,000 Commercial paper 903,223 173,407 Other short-term borrowings 136,495 38,581 $ 1,588,662 $ 589,883 |
Schedule of long-term debt | September 30, December 31, (thousands) 2023 2022 Revolving Credit Facility $ 54,000 $ — North American asset securitization program 605,000 1,235,000 3.25% notes, due 2024 — 498,122 4.00% notes, due 2025 348,879 348,344 6.125% notes, due 2026 496,304 — 7.50% senior debentures, due 2027 110,164 110,103 3.875% notes, due 2028 496,933 496,448 2.95% notes, due 2032 494,908 494,522 Other obligations with various interest rates and due dates 8,813 425 $ 2,615,001 $ 3,182,964 |
Schedule of estimated fair market value of long-term debt, using quoted market prices | September 30, December 31, (thousands) 2023 2022 3.25% notes, due 2024 $ — $ 481,500 4.00% notes, due 2025 339,000 338,000 6.125% notes, due 2026 498,000 — 7.50% senior debentures, due 2027 114,000 116,500 3.875% notes, due 2028 457,000 456,000 2.95% notes, due 2032 390,500 395,500 |
Financial Instruments Measure_2
Financial Instruments Measured at Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Financial Instruments Measured at Fair Value | |
Schedule of assets measured at fair value on a recurring basis | (thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents $ 9,954 $ — $ — $ 9,954 Equity investments (b) Other assets 47,482 — — 47,482 Interest rate swap designated as fair value hedge Other liabilities — (2,043) — (2,043) Foreign exchange contracts designated as net investment hedges Other assets/other current assets — 55,369 — 55,369 $ 57,436 $ 53,326 $ — $ 110,762 (thousands) Balance Sheet Location Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/other assets $ 6,596 $ — $ — $ 6,596 Equity investments (b) Other assets 50,614 — — 50,614 Interest rate swaps designated as cash flow hedges Other assets — 55,942 — 55,942 Foreign exchange contracts designated as net investment hedges Other assets/other current assets — 60,962 — 60,962 $ 57,210 $ 116,904 $ — $ 174,114 (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 (loss) gain of ($4.2) million and $1.6 million for the third quarter and first nine months of 2023, respectively, on equity securities held at the end of the quarter. The company recorded an unrealized loss of ($2.1) million and ($12.4) million for the third quarter and first nine months of 2022, respectively, on equity securities held at the end of the quarter. |
Schedule of effects of derivative instruments on the company's consolidated statements of operations and other comprehensive income | Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) Income Statement Line 2023 2022 2023 2022 Gain (Loss) Recognized in Income Foreign exchange contracts, net investment hedge (a) Interest Expense $ 1,804 $ 2,202 $ 5,656 $ 6,604 Interest rate swaps, cash flow hedge Interest Expense (683) (906) (2,199) (2,671) Interest rate swap, fair value hedge (b) Interest Expense (247) — (2,043) — Total $ 874 $ 1,296 $ 1,414 $ 3,933 Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax Foreign exchange contracts, net investment hedge (c) $ 5,448 $ 13,016 $ 3,902 $ 30,031 Interest rate swaps, cash flow hedge — 6,616 585 25,161 Total $ 5,448 $ 19,632 $ 4,487 $ 55,192 (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 amount of fair value hedging adjustments to the carrying value of hedged debt instruments totaled a gain of $0.2 million and $1.1 million for the third quarter and first nine months of 2023, respectively. (c) Includes derivative losses of $0.9 million and $1.0 million for the third quarter of 2023 and 2022, respectively, and $4.3 million and $3.5 million for the first nine months of 2023 and 2022, respectively, which were excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (loss), net of tax. |
Interest rate swap | Designated as hedging instrument | |
Financial Instruments Measured at Fair Value | |
Description of types of hedging instruments used | Notional Amount Weighted-Average Date Range of Trade Date Maturity Date (thousands) Interest Rate Forecasted Transaction April 2020 December 2024 $ 300,000 0.97% Jan 2023 - Dec 2025 Notional Amount Interest Rate due Interest Rate due to Trade Date Maturity Date (thousands) from Counterparty Counterparty February 2023 March 2026 $ 500,000 6.125% SOFR+0.508% |
Foreign exchange contract | Designated as hedging instrument | |
Financial Instruments Measured at Fair Value | |
Description of types of hedging instruments used | Notional Amount (thousands) Maturity Date September 30, 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 per Share (Tables)
Net Income per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Net Income per Share | |
Schedule of computation of net income per share on a basic and diluted basis | Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands except per share data) 2023 2022 2023 2022 Net income attributable to shareholders $ 198,659 $ 342,399 $ 708,968 $ 1,077,482 Weighted-average shares outstanding - basic 55,597 64,228 57,021 66,055 Net effect of various dilutive stock-based compensation awards 701 751 694 790 Weighted-average shares outstanding - diluted 56,298 64,979 57,715 66,845 Net income per share: Basic $ 3.57 $ 5.33 $ 12.43 $ 16.31 Diluted (a) $ 3.53 $ 5.27 $ 12.28 $ 16.12 (a) Equity awards excluded from diluted net income per share as their effect would have been anti-dilutive - 203 43 53 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Shareholders' Equity | |
Schedule of changes in accumulated other comprehensive income (loss), excluding noncontrolling interests | Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Foreign Currency Translation Adjustment and Other: Other comprehensive loss before reclassifications (a) $ (107,891) $ (200,163) $ (98,801) $ (467,465) Amounts reclassified into income 342 (468) 726 (1,271) Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications (b) 5,448 13,016 3,902 30,031 Amounts reclassified into income (1,371) (1,669) (4,301) (5,008) Unrealized Gain on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive income before reclassifications (b) — 6,616 585 25,161 Amounts reclassified into income 519 687 1,672 2,026 Employee Benefit Plan Items, Net: Amounts reclassified into income (261) 117 (831) 305 Net change in Accumulated other comprehensive loss $ (103,214) $ (181,864) $ (97,048) $ (416,221) (a) Foreign currency translation adjustment includes intra-entity foreign currency transactions that are of a long-term investment nature of ($21.0) million and $7.1 million for the third quarter and first nine months of 2023, and $20.2 million and $48.5 million for the third quarter and first nine months of 2022, respectively . (b) For additional information related to net investment hedges and interest rate swaps refer to Note H. |
Schedule of activity in the number of shares outstanding | Common Common Stock Treasury Stock (thousands) Issued 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 Shares issued for stock-based compensation awards — (264) 264 Repurchases of common stock — 1,600 (1,600) Common stock outstanding at July 1, 2023 125,424 69,762 55,662 Shares issued for stock-based compensation awards — (45) 45 Repurchases of common stock — 1,552 (1,552) Common stock outstanding at September 30, 2023 125,424 71,269 54,155 Common Common Stock Treasury Stock (thousands) Issued 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 Shares issued for stock-based compensation awards — (96) 96 Repurchases of common stock — 1,929 (1,929) Common stock outstanding at July 2, 2022 125,424 60,821 64,603 Shares issued for stock-based compensation awards — (25) 25 Repurchases of common stock — 2,528 (2,528) Common stock outstanding at October 1, 2022 125,424 63,324 62,100 |
Schedule of company's share-repurchase program | Approximate Dollar Value of Dollar Value Dollar Value of Shares that May Approved for Shares Yet be Purchased Share-Repurchase Details by Month of Board Approval (thousands) Repurchase Repurchased Under the Program July 2021 $ 600,000 $ 600,000 $ — December 2021 600,000 600,000 — September 2022 600,000 600,000 — January 2023 1,000,000 378,414 621,586 Total (a) $ 2,800,000 $ 2,178,414 $ 621,586 (a) The dollar value of shares repurchased includes an accrual of $6.2 million for excise taxes during the first nine months of 2023 which is recorded within “Treasury stock” on the company’s consolidated balance sheets. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment and Geographic Information | |
Schedule of segment reporting information | Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Sales: Components: Americas $ 1,869,934 $ 2,445,647 $ 6,169,949 $ 7,265,552 EMEA 1,987,423 1,935,827 6,387,047 5,671,234 Asia/Pacific 2,387,835 2,918,873 7,226,871 9,024,188 Global components $ 6,245,192 $ 7,300,347 $ 19,783,867 $ 21,960,974 ECS: Americas $ 1,015,924 $ 1,234,158 $ 3,014,544 $ 3,442,803 EMEA 745,903 731,927 2,459,552 2,397,622 Global ECS $ 1,761,827 $ 1,966,085 $ 5,474,096 $ 5,840,425 Consolidated $ 8,007,019 $ 9,266,432 $ 25,257,963 $ 27,801,399 Operating income (loss), by segment, are as follows: Quarter Ended Nine Months Ended September 30, October 1, September 30, October 1, (thousands) 2023 2022 2023 2022 Operating income (loss): Global components (a) $ 379,053 $ 494,587 $ 1,177,906 $ 1,518,423 Global ECS (b) 54,624 83,976 221,951 253,744 Corporate (c) (93,594) (75,869) (245,372) (226,269) Consolidated $ 340,083 $ 502,694 $ 1,154,485 $ 1,545,898 (a) Global components operating income includes $62.2 million in settlement charges recorded as a reduction to operating expense for the third quarter and first nine months of 2023. Refer to Note K for additional information. Charges to increase the allowance for credit losses increased $16.8 million and $11.0 million for the third quarter and first nine months of 2023, respectively, relative to the year-earlier periods. (b) Global ECS operating income includes charges to increase the allowance for credit losses, which increased by $20.0 million and $26.8 million for the third quarter and first nine months of 2023, respectively, relative to the year-earlier periods. (c) Corporate operating loss includes restructuring, integration, and other charges of $31.4 million and $44.3 million for the third quarter and first nine months of 2023, respectively, and $3.6 million and $11.0 million for the third quarter and first nine months of 2022, respectively . |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | $ 2,027,626 | |
Foreign currency translation adjustment | (5,639) | |
Balance as of September 30, 2023 | 2,021,987 | |
Accumulated impairment charges | 1,600,000 | $ 1,600,000 |
Global Components | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | 873,003 | |
Foreign currency translation adjustment | (3,875) | |
Balance as of September 30, 2023 | 869,128 | |
Accumulated impairment charges | 1,300,000 | 1,300,000 |
Global ECS | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2022 | 1,154,623 | |
Foreign currency translation adjustment | (1,764) | |
Balance as of September 30, 2023 | 1,152,859 | |
Accumulated impairment charges | $ 302,900 | $ 302,900 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Goodwill and Intangible Assets | |||||
Gross Carrying Amount | $ 337,974 | $ 337,974 | $ 342,191 | ||
Accumulated Amortization | (203,163) | (203,163) | (183,054) | ||
Net | 134,811 | 134,811 | 159,137 | ||
Amortization of Intangible Assets | 7,900 | $ 8,700 | 23,800 | $ 26,500 | |
Customer relationships | |||||
Goodwill and Intangible Assets | |||||
Gross Carrying Amount | 263,968 | 263,968 | 268,180 | ||
Accumulated Amortization | (157,138) | (157,138) | (144,655) | ||
Net | 106,830 | 106,830 | 123,525 | ||
Amortizable trade name | |||||
Goodwill and Intangible Assets | |||||
Gross Carrying Amount | 74,006 | 74,006 | 74,011 | ||
Accumulated Amortization | (46,025) | (46,025) | (38,399) | ||
Net | $ 27,981 | $ 27,981 | $ 35,612 |
Investments in Affiliated Com_3
Investments in Affiliated Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Investments in Affiliated Companies | |||||
Investments in affiliated companies | $ 63,049 | $ 63,049 | $ 65,112 | ||
Equity in earnings of affiliated companies | 1,392 | $ 1,718 | 4,373 | $ 4,726 | |
Equity method investment, pro rata share of debt obligations of joint venture | $ 0 | $ 0 | 0 | ||
Marubun/Arrow | |||||
Investments in Affiliated Companies | |||||
Equity method investment, ownership percentage | 50% | 50% | |||
Investments in affiliated companies | $ 51,790 | $ 51,790 | 54,292 | ||
Equity in earnings of affiliated companies | $ 978 | 1,374 | $ 2,946 | 3,914 | |
Other joint venture | |||||
Investments in Affiliated Companies | |||||
Equity method investment, ownership percentage | 50% | 50% | |||
Investments in affiliated companies | $ 11,259 | $ 11,259 | $ 10,820 | ||
Equity in earnings of affiliated companies | $ 414 | $ 344 | $ 1,427 | $ 812 |
Accounts Receivable (Details)
Accounts Receivable (Details) $ in Thousands, € in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | |
Accounts Receivable | ||||||
Accounts receivable | $ 10,807,108 | $ 10,807,108 | $ 12,416,114 | |||
Allowances for doubtful accounts | 143,944 | $ 89,225 | 143,944 | $ 89,225 | 93,397 | |
Accounts receivable, net | 10,663,164 | 10,663,164 | 12,322,717 | |||
Allowance for credit loss charged to income | 37,800 | |||||
Agreement amount with purchaser to transfer financial assets accounted for as sales | € | € 600 | |||||
EMEA asset securitization, sales of accounts receivable | 815,812 | 834,456 | 2,486,022 | 1,943,723 | ||
Receivables sold to unaffiliated financial institutions that were uncollected | 612,321 | 612,321 | 628,930 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Balance at beginning of period | 93,397 | 75,901 | ||||
Charged to income | 64,701 | 26,869 | ||||
Translation adjustments | (575) | (3,660) | ||||
Writeoffs | (13,579) | (9,885) | ||||
Balance at end of period | 143,944 | $ 89,225 | 143,944 | $ 89,225 | ||
Variable interest entity, primary beneficiary | Asset pledged as collateral | ||||||
Accounts Receivable | ||||||
Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. | $ 933,752 | $ 933,752 | $ 932,243 |
Supplier Finance Programs (Deta
Supplier Finance Programs (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Supplier Finance Programs | ||
Supplier finance programs obligations | $ 944.2 | $ 1,500 |
Debt - ST Debt (Details)
Debt - ST Debt (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Feb. 28, 2022 | Apr. 01, 2023 | Sep. 30, 2023 | May 31, 2023 | Apr. 30, 2023 | Dec. 31, 2022 | |
Debt | ||||||
Short-term borrowings, including current portion of long-term debt | $ 1,588,662 | $ 589,883 | ||||
Other short-term borrowings | $ 136,495 | $ 38,581 | ||||
Interest rate swap | Fair value hedging | ||||||
Debt | ||||||
Derivative, variable interest rate | 0.508% | 0.508% | ||||
4.50% notes, due 2023 | ||||||
Debt | ||||||
Debt instrument, interest rate, stated percentage | 4.50% | 4.50% | 4.50% | |||
Repayments of senior debt | $ 300,000 | |||||
3.25% notes, due 2024 | ||||||
Debt | ||||||
Short-term borrowings, including current portion of long-term debt | $ 498,944 | $ 0 | ||||
Debt instrument, interest rate, stated percentage | 3.25% | 3.25% | ||||
Lines of credit | ||||||
Debt | ||||||
Lines of credit facility, maximum borrowing capacity | $ 500,000 | $ 500,000 | $ 200,000 | |||
Short-term debt, weighted average interest rate, at point in time | 6.42% | 5.22% | ||||
Line of credit, current | $ 50,000 | $ 78,000 | ||||
3.50% notes, due 2022 | ||||||
Debt | ||||||
Debt instrument, interest rate, stated percentage | 3.50% | |||||
Repayments of senior debt | $ 350,000 | |||||
Commercial paper | ||||||
Debt | ||||||
Lines of credit facility, maximum borrowing capacity | 1,200,000 | |||||
Short-term borrowings, including current portion of long-term debt | $ 903,223 | $ 173,407 | ||||
Short-term debt, weighted average interest rate, at point in time | 5.95% | 5.15% | ||||
4.50% notes, due 2023 | ||||||
Debt | ||||||
Short-term borrowings, including current portion of long-term debt | $ 0 | $ 299,895 | ||||
Debt instrument, interest rate, stated percentage | 3.25% | 3.25% |
Debt - LT Debt (Details)
Debt - LT Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Apr. 01, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Debt | ||||||
Long-term debt | $ 2,615,001 | $ 2,615,001 | $ 3,182,964 | |||
Accounts receivable, net | 10,663,164 | 10,663,164 | 12,322,717 | |||
Investment income, interest and dividend | 16,900 | $ 8,300 | 47,600 | $ 18,800 | ||
Net proceeds from note offering | $ 496,300 | 496,268 | $ 0 | |||
Revolving Credit Facility | ||||||
Debt | ||||||
Maximum borrowing capacity | 2,000,000 | 2,000,000 | ||||
Long-term debt | $ 54,000 | $ 54,000 | 0 | |||
Debt instrument, interest rate, effective percentage | 6.42% | 6.42% | ||||
Facility fee | 0.175% | |||||
Debt instrument, basis spread on variable rate | 0.10% | |||||
Derivative, basis spread on variable rate | 1.08% | 1.08% | ||||
North American asset securitization program | ||||||
Debt | ||||||
Maximum borrowing capacity | $ 1,500,000 | $ 1,500,000 | ||||
Long-term debt | $ 605,000 | $ 605,000 | 1,235,000 | |||
Debt instrument, interest rate, effective percentage | 5.82% | 5.82% | ||||
Facility fee | 0.40% | |||||
Debt instrument, basis spread on variable rate | 0.10% | |||||
Accounts receivable, net | $ 2,400,000 | $ 2,400,000 | 3,100,000 | |||
3.25% notes, due 2024 | ||||||
Debt | ||||||
Long-term debt | 498,122 | |||||
Debt instrument, fair value | $ 0 | $ 0 | $ 481,500 | |||
Debt instrument, interest rate, stated percentage | 3.25% | 3.25% | 3.25% | |||
4.00% notes, due 2025 | ||||||
Debt | ||||||
Long-term debt | $ 348,879 | $ 348,879 | $ 348,344 | |||
Debt instrument, fair value | $ 339,000 | $ 339,000 | $ 338,000 | |||
Debt instrument, interest rate, stated percentage | 4% | 4% | 4% | |||
6.125% notes, due 2026 | ||||||
Debt | ||||||
Long-term debt | $ 496,304 | $ 496,304 | $ 0 | |||
Debt instrument, fair value | $ 498,000 | $ 498,000 | $ 0 | |||
Debt instrument, face amount | $ 500,000 | |||||
Debt instrument, interest rate, stated percentage | 6.125% | 6.125% | 6.125% | 6.125% | ||
7.50% senior debentures, due 2027 | ||||||
Debt | ||||||
Long-term debt | $ 110,164 | $ 110,164 | $ 110,103 | |||
Debt instrument, fair value | $ 114,000 | $ 114,000 | $ 116,500 | |||
Debt instrument, interest rate, stated percentage | 7.50% | 7.50% | 7.50% | |||
3.875% notes, due 2028 | ||||||
Debt | ||||||
Long-term debt | $ 496,933 | $ 496,933 | $ 496,448 | |||
Debt instrument, fair value | $ 457,000 | $ 457,000 | $ 456,000 | |||
Debt instrument, interest rate, stated percentage | 3.875% | 3.875% | 3.875% | |||
2.95% notes, due 2032 | ||||||
Debt | ||||||
Long-term debt | $ 494,908 | $ 494,908 | $ 494,522 | |||
Debt instrument, fair value | $ 390,500 | $ 390,500 | $ 395,500 | |||
Debt instrument, interest rate, stated percentage | 2.95% | 2.95% | 2.95% | |||
Other obligations with various interest rates and due dates | ||||||
Debt | ||||||
Other obligations with various interest rates and due dates | $ 8,813 | $ 8,813 | $ 425 | |||
Revolving Credit Facility | ||||||
Debt | ||||||
Long-term debt | $ 54,000 | $ 54,000 | $ 0 |
Financial Instruments Measure_3
Financial Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | Dec. 31, 2022 | |
Financial Instruments Measured at Fair Value | ||||||
Debt and equity securities, unrealized gain (loss) | $ (4,200) | $ (2,100) | $ 1,600 | $ (12,400) | ||
Proceeds from hedge financing activities | $ 56,700 | |||||
Gain loss on sale of derivatives | $ 56,700 | |||||
Marubun | ||||||
Financial Instruments Measured at Fair Value | ||||||
Equity method investment, ownership percentage | 8.40% | 8.40% | ||||
Fair value, measurements, recurring | ||||||
Financial Instruments Measured at Fair Value | ||||||
Cash equivalents | $ 9,954 | $ 9,954 | $ 6,596 | |||
Equity investments | 47,482 | 47,482 | 50,614 | |||
Interest rate swap designated as fair value hedge | (2,043) | (2,043) | ||||
Interest rate swaps designated as cash flow hedges | 55,942 | |||||
Foreign exchange contracts designated as net investment hedges | 55,369 | 55,369 | 60,962 | |||
Total fair value assets and liabilities measured on recurring basis | 110,762 | 110,762 | 174,114 | |||
Fair value, measurements, recurring | Fair value, inputs, level 1 | ||||||
Financial Instruments Measured at Fair Value | ||||||
Cash equivalents | 9,954 | 9,954 | 6,596 | |||
Equity investments | 47,482 | 47,482 | 50,614 | |||
Interest rate swap designated as fair value hedge | 0 | 0 | ||||
Interest rate swaps designated as cash flow hedges | 0 | |||||
Foreign exchange contracts designated as net investment hedges | 0 | 0 | 0 | |||
Total fair value assets and liabilities measured on recurring basis | 57,436 | 57,436 | 57,210 | |||
Fair value, measurements, recurring | Fair value, inputs, level 2 | ||||||
Financial Instruments Measured at Fair Value | ||||||
Cash equivalents | 0 | 0 | 0 | |||
Equity investments | 0 | 0 | 0 | |||
Interest rate swap designated as fair value hedge | (2,043) | (2,043) | ||||
Interest rate swaps designated as cash flow hedges | 55,942 | |||||
Foreign exchange contracts designated as net investment hedges | 55,369 | 55,369 | 60,962 | |||
Total fair value assets and liabilities measured on recurring basis | 53,326 | 53,326 | 116,904 | |||
Fair value, measurements, recurring | Fair value, inputs, level 3 | ||||||
Financial Instruments Measured at Fair Value | ||||||
Cash equivalents | 0 | 0 | 0 | |||
Equity investments | 0 | 0 | 0 | |||
Interest rate swap designated as fair value hedge | 0 | 0 | ||||
Interest rate swaps designated as cash flow hedges | 0 | |||||
Foreign exchange contracts designated as net investment hedges | 0 | 0 | 0 | |||
Total fair value assets and liabilities measured on recurring basis | $ 0 | $ 0 | $ 0 |
Financial Instruments Measure_4
Financial Instruments Measured at Fair Value - Derivatives (Details) € in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 USD ($) | Apr. 01, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 EUR (€) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 EUR (€) | |
Financial Instruments Measured at Fair Value | ||||||||
Derivative Instruments, Gain (Loss) Recognized in Income | $ 874 | $ 1,296 | $ 1,414 | $ 3,933 | ||||
Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax | 5,448 | 19,632 | 4,487 | 55,192 | ||||
Proceeds from settlement of net investment hedge | $ 10,700 | 10,725 | 0 | |||||
Derivative, Notional Amount | 1,100,000 | 1,100,000 | $ 1,300,000 | |||||
Other comprehensive income (loss), derivative, excluded component, increase (decrease), before adjustments, after tax | 900 | 1,000 | 4,300 | 3,500 | ||||
Change in unrealized gain (loss) on hedged item in fair value hedge | 200 | 1,100 | ||||||
Net investment hedging | Designated as hedging instrument | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative Instruments, Gain (Loss) Recognized in Income | 1,804 | 2,202 | 5,656 | 6,604 | ||||
Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax | $ 5,448 | 13,016 | $ 3,902 | 30,031 | ||||
Fair value hedging | Interest rate swap | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, fixed interest rate | 6.125% | 6.125% | 6.125% | |||||
Derivative, variable interest rate | 0.508% | 0.508% | 0.508% | 0.508% | ||||
Derivative, Notional Amount | $ 500,000 | $ 500,000 | ||||||
Fair value hedging | Designated as hedging instrument | Interest rate swap | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative Instruments, Gain (Loss) Recognized in Income | (247) | (2,043) | ||||||
Cash flow hedging | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, Notional Amount | $ 300,000 | |||||||
Cash flow hedging | Designated as hedging instrument | Interest rate swap | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative Instruments, Gain (Loss) Recognized in Income | $ (683) | (906) | (2,199) | (2,671) | ||||
Derivative Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax | $ 6,616 | $ 585 | $ 25,161 | |||||
Maturity March 2023 | Foreign exchange forward | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, Notional Amount | € | € 0 | € 50,000 | ||||||
Maturity September 2024 | Foreign exchange forward | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, Notional Amount | € | 50,000 | 50,000 | ||||||
Maturity April 2025 | Foreign exchange forward | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, Notional Amount | € | 100,000 | 100,000 | ||||||
Maturity January 2028 | Foreign exchange forward | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, Notional Amount | € | 100,000 | 100,000 | ||||||
All Maturities | Foreign exchange forward | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, Notional Amount | € | € 250,000 | € 300,000 | ||||||
Maturity December 2024 | Cash flow hedging | Designated as hedging instrument | Interest rate swap | ||||||||
Financial Instruments Measured at Fair Value | ||||||||
Derivative, average fixed interest rate | 0.97% | 0.97% |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Net Income per Share | ||||
Net income attributable to shareholders | $ 198,659 | $ 342,399 | $ 708,968 | $ 1,077,482 |
Weighted-average shares outstanding - basic | 55,597 | 64,228 | 57,021 | 66,055 |
Net effect of various dilutive stock-based compensation awards | 701 | 751 | 694 | 790 |
Weighted-average shares outstanding - diluted | 56,298 | 64,979 | 57,715 | 66,845 |
Net income per share: | ||||
Basic | $ 3.57 | $ 5.33 | $ 12.43 | $ 16.31 |
Diluted | $ 3.53 | $ 5.27 | $ 12.28 | $ 16.12 |
Equity awards excluded from diluted net income per share as their effect would have been anti-dilutive | 0 | 203 | 43 | 53 |
Shareholders' Equity - Componen
Shareholders' Equity - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign Currency Translation Adjustment and Other | $ (108,846) | $ (202,716) | $ (98,904) | $ (473,826) |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | 4,077 | 11,347 | (399) | 25,023 |
Unrealized Gain on Interest Rate Swaps Designated as Cash Flow Hedges, Net | 519 | 7,303 | 2,257 | 27,187 |
Employee Benefit Plan Items, Net | 261 | (117) | 831 | (305) |
Net change in Accumulated other comprehensive loss | (103,214) | (181,864) | (97,048) | (416,221) |
Other comprehensive loss before reclassifications | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign Currency Translation Adjustment and Other | (107,891) | (200,163) | (98,801) | (467,465) |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | 5,448 | 13,016 | 3,902 | 30,031 |
Unrealized Gain on Interest Rate Swaps Designated as Cash Flow Hedges, Net | 0 | 6,616 | 585 | 25,161 |
Amounts reclassified into income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign Currency Translation Adjustment and Other | 342 | (468) | 726 | (1,271) |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | (1,371) | (1,669) | (4,301) | (5,008) |
Unrealized Gain on Interest Rate Swaps Designated as Cash Flow Hedges, Net | 519 | 687 | 1,672 | 2,026 |
Employee Benefit Plan Items, Net | (261) | 117 | (831) | 305 |
Intra-entity foreign currency transactions | Other comprehensive loss before reclassifications | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Foreign Currency Translation Adjustment and Other | $ (21,000) | $ 20,200 | $ 7,100 | $ 48,500 |
Shareholders' Equity-Common Sto
Shareholders' Equity-Common Stock Rollforward (Details) - shares shares in Thousands | 3 Months Ended | |||||
Sep. 30, 2023 | Jul. 01, 2023 | Apr. 01, 2023 | Oct. 01, 2022 | Jul. 02, 2022 | Apr. 02, 2022 | |
Common Stock Issued | ||||||
Common stock outstanding, Beginning balance | 125,424 | 125,424 | 125,424 | 125,424 | 125,424 | 125,424 |
Shares issued for stock-based compensation awards | 0 | 0 | 0 | 0 | 0 | 0 |
Repurchases of common stock | 0 | 0 | 0 | 0 | 0 | 0 |
Common stock outstanding, Ending balance | 125,424 | 125,424 | 125,424 | 125,424 | 125,424 | 125,424 |
Treasury Stock | ||||||
Common stock outstanding, Beginning balance | 69,762 | 68,426 | 66,175 | 60,821 | 58,988 | 57,358 |
Shares issued for stock-based compensation awards | (45) | (264) | (313) | (25) | (96) | (385) |
Repurchases of common stock | (1,552) | (1,600) | (2,564) | (2,528) | (1,929) | (2,015) |
Common stock outstanding, Ending balance | 71,269 | 69,762 | 68,426 | 63,324 | 60,821 | 58,988 |
Common Stock Outstanding | ||||||
Common stock outstanding, Beginning balance | 55,662 | 56,998 | 59,249 | 64,603 | 66,436 | 68,066 |
Shares issued for stock-based compensation awards | 45 | 264 | 313 | 25 | 96 | 385 |
Repurchases of common stock | (1,552) | (1,600) | (2,564) | (2,528) | (1,929) | (2,015) |
Common stock outstanding, Ending balance | 54,155 | 55,662 | 56,998 | 62,100 | 64,603 | 66,436 |
Shareholders' Equity Share-Repu
Shareholders' Equity Share-Repurchase Programs (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2023 | Oct. 01, 2022 | Jan. 31, 2023 | |
Share-Repurchase Programs [Line Items] | ||||
Dollar Value Approved for Repurchase | $ 2,800,000 | $ 2,800,000 | ||
Dollar Value of Shares Repurchased | 2,178,414 | 2,178,414 | ||
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 621,586 | 621,586 | ||
Payments for repurchase of common stock | 719,708 | $ 725,254 | ||
July 2021 | ||||
Share-Repurchase Programs [Line Items] | ||||
Dollar Value Approved for Repurchase | 600,000 | 600,000 | ||
Dollar Value of Shares Repurchased | 600,000 | 600,000 | ||
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 0 | 0 | ||
December 2021 | ||||
Share-Repurchase Programs [Line Items] | ||||
Dollar Value Approved for Repurchase | 600,000 | 600,000 | ||
Dollar Value of Shares Repurchased | 600,000 | 600,000 | ||
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 0 | 0 | ||
September 2022 | ||||
Share-Repurchase Programs [Line Items] | ||||
Dollar Value Approved for Repurchase | 600,000 | 600,000 | ||
Dollar Value of Shares Repurchased | 600,000 | 600,000 | ||
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | 0 | 0 | ||
January 2023 | ||||
Share-Repurchase Programs [Line Items] | ||||
Dollar Value Approved for Repurchase | 1,000,000 | 1,000,000 | $ 1,000,000 | |
Dollar Value of Shares Repurchased | 378,414 | 378,414 | ||
Approximate Dollar Value of Shares that May Yet be Purchased Under the Program | $ 621,586 | $ 621,586 | ||
Share repurchase program | ||||
Share-Repurchase Programs [Line Items] | ||||
Stock repurchased during period, shares | 1.6 | 5.7 | ||
Payments for repurchase of common stock | $ 200,000 | $ 700,900 | ||
Excise tax share repurchases | ||||
Share-Repurchase Programs [Line Items] | ||||
Stock repurchased during period, shares | 6.2 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Contingencies | ||||
Proceeds from legal settlements | $ 62.2 | |||
Recovery of direct costs | $ 47.2 | |||
Environmental liabilities | $ 20.9 | $ 1.9 | 23.3 | $ 2.2 |
Huntsville Site | ||||
Contingencies | ||||
Environmental remediation expense | 8.6 | |||
Project expenditures, low estimate | 5.8 | |||
Project expenditures, high estimate | 17.5 | |||
Norco Site | Remediation project management regulatory oversight and investigative and feasibility studies | ||||
Contingencies | ||||
Environmental remediation expense | 82.2 | |||
Project expenditures, low estimate | 23 | |||
Project expenditures, high estimate | $ 39.3 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Oct. 01, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Oct. 01, 2022 USD ($) | |
Segment and Geographic Information | ||||
Number of reportable segments | segment | 2 | |||
Sales: | ||||
Sales | $ 8,007,019 | $ 9,266,432 | $ 25,257,963 | $ 27,801,399 |
Operating income (loss): | ||||
Operating income (loss) | 340,083 | 502,694 | 1,154,485 | 1,545,898 |
Proceeds from legal settlements | 62,200 | |||
Restructuring, integration, and other charges | 31,359 | 3,635 | 44,252 | 11,027 |
Operating segments | ||||
Sales: | ||||
Sales | 8,007,019 | 9,266,432 | 25,257,963 | 27,801,399 |
Global components | ||||
Operating income (loss): | ||||
Proceeds from legal settlements | 62,200 | 62,200 | ||
Increase in charges to increase allowance for credit losses | 16,800 | 11,000 | ||
Global components | Operating segments | ||||
Sales: | ||||
Sales | 6,245,192 | 7,300,347 | 19,783,867 | 21,960,974 |
Operating income (loss): | ||||
Operating income (loss) | 379,053 | 494,587 | 1,177,906 | 1,518,423 |
Global components | Operating segments | Americas | ||||
Sales: | ||||
Sales | 1,869,934 | 2,445,647 | 6,169,949 | 7,265,552 |
Global components | Operating segments | EMEA | ||||
Sales: | ||||
Sales | 1,987,423 | 1,935,827 | 6,387,047 | 5,671,234 |
Global components | Operating segments | Asia-Pacific | ||||
Sales: | ||||
Sales | 2,387,835 | 2,918,873 | 7,226,871 | 9,024,188 |
Global ECS | ||||
Operating income (loss): | ||||
Increase in charges to increase allowance for credit losses | 20,000 | 26,800 | ||
Global ECS | Operating segments | ||||
Sales: | ||||
Sales | 1,761,827 | 1,966,085 | 5,474,096 | 5,840,425 |
Operating income (loss): | ||||
Operating income (loss) | 54,624 | 83,976 | 221,951 | 253,744 |
Global ECS | Operating segments | Americas | ||||
Sales: | ||||
Sales | 1,015,924 | 1,234,158 | 3,014,544 | 3,442,803 |
Global ECS | Operating segments | EMEA | ||||
Sales: | ||||
Sales | 745,903 | 731,927 | 2,459,552 | 2,397,622 |
Corporate | ||||
Operating income (loss): | ||||
Operating income (loss) | (93,594) | (75,869) | (245,372) | (226,269) |
Restructuring, integration, and other charges | $ 31,400 | $ 3,600 | $ 44,300 | $ 11,000 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Oct. 01, 2022 | Sep. 30, 2023 | Oct. 01, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 198,659 | $ 342,399 | $ 708,968 | $ 1,077,482 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Rule 10b5-1 Arrangement Modified | false |
Non Rule 10b5-1 Arrangement Modified | false |