Cover Document
Cover Document - shares | 3 Months Ended | |
Apr. 03, 2021 | Apr. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly report | true | |
Document Period End Date | Apr. 3, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-4482 | |
Entity Registrant Name | ARROW ELECTRONICS INC | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 11-1806155 | |
Entity Address, Address Line One | 9201 East Dry Creek Road | |
Entity Address, Postal Zip Code | 80112 | |
Entity Address, City or Town | Centennial | |
Entity Address, State or Province | CO | |
City Area Code | (303) | |
Local Phone Number | 824-4000 | |
Title of 12(b) Security | Common Stock, $1 par value | |
Trading Symbol | ARW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 73,783,032 | |
Entity Central Index Key | 0000007536 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Sales | [1] | $ 8,385,919 | $ 6,381,417 |
Cost of sales | 7,455,809 | 5,653,026 | |
Gross profit | 930,110 | 728,391 | |
Operating expenses: | |||
Selling, general, and administrative expenses | 574,567 | 533,839 | |
Depreciation and amortization | 50,331 | 47,110 | |
Restructuring, integration, and other charges | 5,709 | 9,138 | |
Total operating expenses | 630,607 | 590,087 | |
Operating income | 299,503 | 138,304 | |
Equity in earnings of affiliated companies | 844 | 530 | |
Gain (loss) on investments, net | 2,793 | (16,810) | |
Employee benefit plan expense, net | (1,230) | (1,109) | |
Interest and other financing expense, net | (33,656) | (43,268) | |
Income before income taxes | 268,254 | 77,647 | |
Income Tax Expense (Benefit) | 61,026 | 27,892 | |
Consolidated net income | 207,228 | 49,755 | |
Noncontrolling interests | 907 | 252 | |
Net income attributable to shareholders | $ 206,321 | $ 49,503 | |
Net income per share: | |||
Basic | $ 2.76 | $ 0.62 | |
Diluted | [2] | $ 2.72 | $ 0.61 |
Weighted-average shares outstanding: | |||
Basic | 74,882 | 80,407 | |
Diluted | 75,794 | 81,108 | |
Corporate | |||
Operating expenses: | |||
Operating income | [3] | $ (67,239) | $ (68,896) |
[1] | Includes sales related to the United States of $2,497,998 and $2,412,087 for the first quarter of 2021 and 2020, respectively. | ||
[2] | Stock-based compensation awards for the issuance of 103 and 1,307 shares for the first quarter of 2021 and 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. | ||
[3] | Corporate operating income includes restructuring, integration, and other charges of $5,709 and $9,138 for the first quarter of 2021 and 2020, respectively. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Consolidated net income | $ 207,228 | $ 49,755 |
Other comprehensive loss: | ||
Foreign currency translation adjustment and other, net of taxes | (61,921) | (77,343) |
Unrealized gain on foreign exchange contracts designated as net investment hedges, net of taxes | 5,306 | 15,977 |
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net of taxes | 36,352 | (28,397) |
Employee benefit plan items, net of taxes | (166) | 2,248 |
Other comprehensive loss | (20,429) | (87,515) |
Comprehensive income (loss) | 186,799 | (37,760) |
Less: Comprehensive income (loss) attributable to non-controlling interests | (946) | 10 |
Comprehensive income (loss) attributable to shareholders | $ 187,745 | $ (37,770) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Apr. 03, 2021 | Dec. 31, 2020 | |
ASSETS | |||
Cash and cash equivalents | $ 227,701 | $ 373,615 | |
Accounts receivable, net | 8,503,010 | 9,205,343 | |
Inventories | 3,275,389 | 3,287,308 | |
Other current assets | 360,968 | 286,633 | |
Total current assets | 12,367,068 | 13,152,899 | |
Property, plant, and equipment, at cost: | |||
Land | 5,691 | 7,940 | |
Buildings and improvements | 177,615 | 207,614 | |
Machinery and equipment | 1,521,489 | 1,553,371 | |
Property, plant, and equipment, gross | 1,704,795 | 1,768,925 | |
Less: Accumulated depreciation and amortization | (957,257) | (969,320) | |
Property, plant, and equipment, net | 747,538 | 799,605 | |
Investments in affiliated companies | 77,330 | 76,358 | |
Intangible assets, net | 223,848 | 233,819 | |
Goodwill | [1] | 2,101,938 | 2,115,469 |
Other assets | 655,838 | 675,761 | |
Total assets | 16,173,560 | 17,053,911 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 7,045,759 | 7,937,889 | |
Accrued expenses | 985,928 | 1,034,361 | |
Short-term borrowings, including current portion of long-term debt | 361,327 | 158,633 | |
Total current liabilities | 8,393,014 | 9,130,883 | |
Long-term debt | 1,903,848 | 2,097,940 | |
Other liabilities | 662,252 | 676,136 | |
Commitments and contingencies (Note J) | |||
Equity: | |||
Issued - 125,424 shares in both 2021 and 2020 | 125,424 | 125,424 | |
Capital in excess of par value | 1,166,554 | 1,165,850 | |
Treasury stock (51,426 and 50,581 shares in 2021 and 2020, respectively), at cost | (2,898,830) | (2,776,821) | |
Retained earnings | 6,886,072 | 6,679,751 | |
Accumulated other comprehensive loss | (123,461) | (104,885) | |
Total shareholders’ equity | 5,155,759 | 5,089,319 | |
Noncontrolling interests | 58,687 | 59,633 | |
Total equity | 5,214,446 | 5,148,952 | |
Total liabilities and equity | $ 16,173,560 | $ 17,053,911 | |
[1] | The total carrying value of goodwill as of April 3, 2021 and December 31, 2020 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares shares in Thousands | Apr. 03, 2021 | Dec. 31, 2020 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 160,000 | 160,000 |
Common stock, shares issued | 125,424 | 125,424 |
Treasury stock, shares at cost | 51,426 | 50,581 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 207,228 | $ 49,755 |
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | ||
Depreciation and amortization | 50,331 | 47,110 |
Amortization of stock-based compensation | 13,223 | 13,920 |
Equity in earnings of affiliated companies | (844) | (530) |
Deferred income taxes | 13,663 | 32,613 |
Loss (gain) on investments, net | (2,793) | 16,810 |
Other | 1,374 | (205) |
Change in assets and liabilities, net of effects of acquired and disposed businesses: | ||
Accounts receivable, net | 596,777 | 558,605 |
Inventories | (13,147) | 133,392 |
Accounts payable | (840,124) | (343,051) |
Accrued expenses | 3,643 | (31,326) |
Other assets and liabilities | (33,867) | (10,228) |
Net cash provided by (used for) operating activities | (4,536) | 466,865 |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (20,180) | (27,971) |
Proceeds from sale of property, plant, and equipment | 22,171 | 0 |
Other | 0 | (5,466) |
Net cash provided by (used for) investing activities | 1,991 | (33,437) |
Cash flows from financing activities: | ||
Change in short-term and other borrowings | (12,452) | (84,354) |
Proceeds from (repayments of) long-term bank borrowings, net | 154,674 | (288,577) |
Redemption of notes | (130,860) | 0 |
Proceeds from exercise of stock options | 26,091 | 1,980 |
Repurchases of common stock | (160,619) | (158,989) |
Net cash used for financing activities | (123,166) | (529,940) |
Effect of exchange rate changes on cash | (20,203) | (2,593) |
Net decrease in cash and cash equivalents | (145,914) | (99,105) |
Cash and cash equivalents at beginning of period | 373,615 | 300,103 |
Cash and cash equivalents at end of period | $ 227,701 | $ 200,998 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock at Par Value | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Balance at Dec. 31, 2019 | $ 4,866,393 | $ 125,424 | $ 1,150,006 | $ (2,332,548) | $ 6,131,248 | $ (35,935) | $ (262,211) | $ 54,474 |
Consolidated net income | 49,755 | 0 | 0 | 0 | 49,503 | 0 | 252 | |
Other comprehensive loss | (87,515) | 0 | 0 | 0 | 0 | (87,273) | (242) | |
Amortization of stock-based compensation | 13,920 | 0 | 13,920 | 0 | 0 | 0 | 0 | |
Shares issued for stock-based compensation awards | 1,980 | 0 | (18,182) | 20,162 | 0 | 0 | 0 | |
Repurchases of common stock | (158,989) | 0 | 0 | (158,989) | 0 | 0 | 0 | |
Balance at Mar. 28, 2020 | 4,649,609 | 125,424 | 1,145,744 | (2,471,375) | 6,144,816 | (349,484) | 54,484 | |
Balance at Dec. 31, 2020 | 5,148,952 | 125,424 | 1,165,850 | (2,776,821) | 6,679,751 | (104,885) | 59,633 | |
Consolidated net income | 207,228 | 0 | 0 | 0 | 206,321 | 0 | 907 | |
Other comprehensive loss | (20,429) | 0 | 0 | 0 | 0 | (18,576) | (1,853) | |
Amortization of stock-based compensation | 13,223 | 0 | 13,223 | 0 | 0 | 0 | 0 | |
Shares issued for stock-based compensation awards | 26,091 | 0 | (12,519) | 38,610 | 0 | 0 | 0 | |
Repurchases of common stock | (160,619) | 0 | 0 | (160,619) | 0 | 0 | 0 | |
Balance at Apr. 03, 2021 | $ 5,214,446 | $ 125,424 | $ 1,166,554 | $ (2,898,830) | $ 6,886,072 | $ (123,461) | $ 58,687 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying consolidated financial statements of Arrow Electronics, Inc. (the "company") were prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year. These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2020, 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, 2021. Reclassification Certain prior period amounts were reclassified to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global Global ECS Total Balance as of December 31, 2020 (a) $ 894,975 $ 1,220,494 $ 2,115,469 Foreign currency translation adjustment (7,007) (6,524) (13,531) Balance as of April 3, 2021 (a) $ 887,968 $ 1,213,970 $ 2,101,938 (a) The total carrying value of goodwill as of April 3, 2021 and December 31, 2020 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. Intangible assets, net, are comprised of the following as of April 3, 2021: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 329,938 $ (159,928) $ 170,010 Amortizable trade name 8 years 74,444 (20,606) 53,838 $ 404,382 $ (180,534) $ 223,848 Intangible assets, net, are comprised of the following as of December 31, 2020: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 335,027 $ (157,151) $ 177,876 Amortizable trade name 8 years 74,008 (18,065) 55,943 $ 409,035 $ (175,216) $ 233,819 During the first quarter of 2021 and 2020, the company recorded amortization expense related to identifiable intangible assets of $9,326 and $9,955, respectively. |
Investments in Affiliated Compa
Investments in Affiliated Companies | 3 Months Ended |
Apr. 03, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliated Companies | Investments in Affiliated Companies The company owns a 50% interest in each of the 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: April 3, December 31, Marubun/Arrow $ 66,755 $ 65,943 Other 10,575 10,415 $ 77,330 $ 76,358 The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended April 3, March 28, Marubun/Arrow $ 857 $ 445 Other (13) 85 $ 844 $ 530 Under the terms of various joint venture agreements, the company is required to pay its pro-rata share of the third-party debt of the joint ventures in the event that the joint ventures are unable to meet their obligations. There were no outstanding borrowings under the third-party debt agreements of the joint ventures as of April 3, 2021 and December 31, 2020. The company believes there is sufficient equity in each of the joint ventures to meet the obligations. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Apr. 03, 2021 | |
Receivables [Abstract] | |
Accounts Receivable [Text Block] | Accounts Receivable Accounts receivable, net, consists of the following: April 3, December 31, Accounts receivable $ 8,591,443 $ 9,298,135 Allowances for doubtful accounts (88,433) (92,792) Accounts receivable, net $ 8,503,010 $ 9,205,343 Changes in the allowance for doubtful accounts consists of the following: Quarter Ended April 3, March 28, Balance at beginning of period $ 92,792 $ 69,433 Effect of adoption of ASU No. 2016-13 — 47,011 Charged to income 1,137 12,539 Translation Adjustments (1,117) (1,869) Writeoffs (4,379) (13,186) Balance at end of period $ 88,433 $ 113,928 The company has considered the current credit condition of its customers in estimating the expected credit losses and has not experienced significant changes in customers’ payment trends or significant deterioration in customers’ credit risk as of April 3, 2021. The global economic impact from COVID-19 may adversely affect the credit condition of some of our customers. The impact of COVID-19 on our customers’ credit condition is highly uncertain and will largely depend on the outcome of future events, which could cause credit losses to increase. During the first quarter of 2020, the company entered into an EMEA (Europe, the Middle East, and Africa) asset securitization program under which it will continuously sell its interest in designated pools of trade accounts receivables of certain of its subsidiaries in the EMEA region, at a discount, to a special purpose entity, which in turn sells certain of the receivables to unaffiliated financial institutions and conduits administered by such unaffiliated financial institutions ("unaffiliated financial institutions") on a monthly basis. The company may sell up to €400,000 under the EMEA asset securitization program, which matures in January 2023, subject to extension in accordance with its terms. The program is conducted through Arrow EMEA Funding Corp B.V., an entity structured to be bankruptcy remote. The company is deemed the primary beneficiary of Arrow EMEA Funding Corp B.V. as the company has both (i) the power to direct the activities that most significantly impact the entity’s economic performance and (ii) the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivables into the special purpose entity. Accordingly, Arrow EMEA Funding Corp B.V. is included in the company’s consolidated financial statements. Receivables sold 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 on Arrow EMEA Funding Corp B.V. are pledged as collateral to unaffiliated financial institutions. These unsold receivables are included in “Accounts receivable, net” in the company’s consolidated balance sheets. The company continues servicing the receivables, which were sold, and in exchange receives a servicing fee under the program. The company does not record a servicing asset or liability on the company’s consolidated balance sheets as the company estimates that the fee it receives to service these receivables approximates the fair market compensation to provide the servicing activities. During the first quarter of 2021 and 2020, the company sold approximately $517,042 and $528,453 of accounts receivables, respectively, to unaffiliated financial institutions under the EMEA asset securitization program. Other amounts related to the EMEA asset securitization program consist of the following: April 3, December 31, Receivables sold to unaffiliated financial institutions that were uncollected $ 386,596 $ 397,914 Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. 678,520 551,843 Any accounts receivables held by Arrow EMEA Funding Corp B.V. would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings if there are outstanding balances under the EMEA asset securitization program. The assets of the special purpose entity cannot be used by the company for general corporate purposes. Additionally, the financial obligations of Arrow EMEA Funding Corp B.V. to the unaffiliated financial institution under the program are limited to the assets it owns and there is no recourse to the company for receivables that are uncollectible as a result of the insolvency or inability to pay of the account debtors. |
Debt
Debt | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt Short-term borrowings, including current portion of long-term debt, consists of the following: April 3, December 31, 5.125% notes, due March 2021 $ — $ 130,836 3.50% notes, due April 2022 349,129 — Other short-term borrowings 12,198 27,797 $ 361,327 $ 158,633 Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 2.09% and 1.73% at April 3, 2021 and December 31, 2020, respectively. The company has $200,000 in uncommitted lines of credit. There were no outstanding borrowings under the uncommitted lines of credit at April 3, 2021 and December 31, 2020. These borrowings are provided on a short-term basis and the maturity is agreed upon between the company and the lender. The lines had a weighted-average effective interest rate of 1.50% and 1.53% at April 3, 2021 and December 31, 2020, respectively. The company has a commercial paper program and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1,200,000. The company had no outstanding borrowings under this program at April 3, 2021 and December 31, 2020. The program had a weighted-average effective interest rate of .26% and .30% at April 3, 2021 and December 31, 2020, respectively. Long-term debt consists of the following: April 3, December 31, Revolving credit facility $ 55,000 $ — North American asset securitization program 100,000 — 3.50% notes, due 2022 — 348,918 4.50% notes, due 2023 298,844 298,701 3.25% notes, due 2024 496,287 496,034 4.00% notes, due 2025 347,161 346,999 7.50% senior debentures, due 2027 109,960 109,939 3.875% notes, due 2028 495,371 495,223 Other obligations with various interest rates and due dates 1,225 2,126 $ 1,903,848 $ 2,097,940 The 7.50% senior debentures are not redeemable prior to their maturity. All other notes may be called at the option of the company subject to “make whole” clauses. The estimated fair market value of long-term debt, using quoted market prices, is as follows: April 3, December 31, 3.50% notes, due 2022 $ — $ 360,500 4.50% notes, due 2023 318,000 321,500 3.25% notes, due 2024 535,000 540,500 4.00% notes, due 2025 377,000 383,000 7.50% senior debentures, due 2027 138,000 140,000 3.875% notes, due 2028 543,000 564,000 The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 3.50% notes due April 2022, North American asset securitization program, commercial paper, and other obligations approximate their fair value. The company has a $2,000,000 revolving credit facility maturing in December 2023. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company’s commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a Eurocurrency rate plus a spread (1.18% at April 3, 2021), which is based on the company’s credit ratings, or an effective interest rate of 1.25% at April 3, 2021. The facility fee, which is based on the company’s credit ratings, was .20% of the total borrowing capacity at April 3, 2021. The company had $55,000 in outstanding borrowings under the revolving credit facility at April 3, 2021 and no outstanding borrowings under the revolving credit facility at December 31, 2020. The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. In March 2021, the company amended its asset securitization program and, among other things, increased its borrowing capacity from $1,200,000 to $1,250,000 and extended its term to mature in March 2024. The program is conducted through Arrow Electronics Funding Corporation (“AFC”), a wholly-owned, bankruptcy remote subsidiary. The North American asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company’s consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread (.45% at April 3, 2021), or an effective interest rate of .52% at April 3, 2021. The facility fee is .40% of the total borrowing capacity. The company had $100,000 in outstanding borrowings under the North American asset securitization program at April 3, 2021 and no outstanding borrowings under the North American asset securitization program at December 31, 2020, which was included in “ Long-term debt” in the company’s consolidated balance sheets. Total collateralized accounts receivable of approximately $1,874,800 and $2,207,700 were held by AFC and were included in “ Accounts receivable, net” in the company’s consolidated balance sheets at April 3, 2021 and December 31, 2020, respectively. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the North American asset securitization program. Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. As of April 3, 2021, the company was in compliance with all such financial covenants. During March 2021, the company repaid $130,860 principal amount of its 5.125% notes due March 2021. During April 2020, the company repaid $209,366 principal amount of its 6.00% notes due April 2020. In the normal course of business, certain of the company’s subsidiaries have agreements to sell, without recourse, selected trade receivables to financial institutions. The company does not retain financial or legal interests in these receivables, and, accordingly they are accounted for as sales of the related receivables and the receivables are removed from the company’s consolidated balance sheets. Interest and other financing expense, net, includes interest and dividend income of $4,106 and $9,965 for the first quarter of 2021 and 2020, respectively. |
Financial Instruments Measured
Financial Instruments Measured at Fair Value | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured At Fair Value [Text Block] | Financial Instruments Measured at Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. The following table presents assets (liabilities) measured at fair value on a recurring basis at April 3, 2021: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents $ 6,729 $ — $ — $ 6,729 Equity investments (b) Other assets 50,493 — — 50,493 Interest rate swaps designated as cash flow hedges Other assets — 68,503 — 68,503 Foreign exchange contracts designated as net investment hedges Other assets — 21,949 — 21,949 $ 57,222 $ 90,452 $ — $ 147,674 The following table presents assets (liabilities) measured at fair value on a recurring basis at December 31, 2020: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 6,062 $ — $ — $ 6,062 Equity investments (b) Other assets 45,879 — — 45,879 Interest rate swaps designated as cash flow hedges Other assets — 20,983 — 20,983 Foreign exchange contracts designated as net investment hedges Other assets — 12,760 — 12,760 $ 51,941 $ 33,743 $ — $ 85,684 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. (b) The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized gain of $1,402 and an unrealized loss of $9,995 for the first quarter of 2021 and 2020, 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 (see Note B). The company tests these assets for impairment if indicators of potential impairment exist or at least annually if indefinite lived. Derivative Instruments The company uses various financial instruments, including derivative instruments, for purposes other than trading. Certain derivative instruments are designated at inception as hedges and measured for effectiveness both at inception and on an ongoing basis. Derivative instruments not designated as hedges are marked-to-market each reporting period with any unrealized gains or losses recognized in earnings. Interest Rate Swaps The company manages the risk of variability in interest rates of future expected debt issuances by entering into various forward-starting interest rate swaps, designated as cash flow hedges. Changes in fair value of interest rate swaps are recorded in the shareholders’ equity section in the company’s consolidated balance sheets in “Accumulated other comprehensive loss” and will be reclassified into income over the life of the anticipated debt issuance or in the period the hedged forecasted cash flows are deemed no longer probable to occur. Gains and losses on interest rate swaps are recorded within the line item “Interest and other financing expense, net” in the consolidated statements of operations. The fair value of interest rate swaps is estimated using a discounted cash flow analysis on the expected cash flows of each derivative based on observable inputs including interest rate curves and credit spreads. At April 3, 2021 and December 31, 2020, the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount Weighted Average Interest Rate Date Range of Forecasted Transaction April 2020 December 2024 $300,000 0.97% Jan 2023 - Dec 2025 May 2020 June 2022 $300,000 0.90% Jan 2021 - Jun 2023 In May 2019, the company entered into a series of ten-year forward-starting interest rate swaps (the “2019 swaps”). The 2019 swaps were designated as cash flow hedges managing the risk of variability in interest rates of future expected debt issuance by June 2020. In February 2020, the company determined that certain of the forecasted cash flows were no longer probable and de-designated the hedging relationship. In February 2020, the company re-designated the 2019 swaps in a new cash flow hedge to manage the risk of variability in interest rates of future expected debt issuance by June 2023. In May 2020, the company terminated the 2019 swaps for a cash payment of $48,378, which was reported in the "cash flows from financing activities" section of the consolidated statements of cash flows. During the first quarter of 2020, losses of $1,194, before taxes, were reclassified from “Accumulated other comprehensive loss” ("AOCI") to "Interest and other financing expense, net" related to forecasted cash flows that were deemed no longer probable to occur. At April 3, 2021 losses of $34,751, net of taxes, remained in AOCI related to the 2019 swaps. Foreign Exchange Contracts The company’s foreign currency exposure relates primarily to international transactions where the currency collected from customers can be different from the currency used to purchase the product. The company’s transactions in its foreign operations are denominated primarily in the following currencies: Euro, Chinese Renminbi, Norwegian Krone, Indian Rupee, and British Pound. The company enters into foreign exchange forward, option, or swap contracts (collectively, the “foreign exchange contracts”) to facilitate the hedging of foreign currency exposures resulting from inventory purchases and sales and mitigate the impact of changes in foreign currency exchange rates related to these transactions. Foreign exchange contracts generally have terms of no more than six months. Gains or losses on these contracts are deferred and recognized when the underlying future purchase or sale is recognized or when the corresponding asset or liability is revalued. The company does not enter into foreign exchange contracts for trading purposes. The risk of loss on a foreign exchange contract is the risk of nonperformance by the counterparties, which the company minimizes by limiting its counterparties to major financial institutions. The fair value of the foreign exchange contracts is estimated using foreign currency spot rates and forward rates quotes by third-party financial institutions. The notional amount of the foreign exchange contracts inclusive of foreign exchange contracts designated as a net investment hedge at April 3, 2021 and December 31, 2020 was $1,040,328 and $914,930, respectively. Gains and losses related to non-designated foreign currency exchange contracts are recorded in "Cost of sales" in the company’s consolidated statements of operations. Gains and losses related to foreign currency exchange contracts designated as cash flow hedges are recorded in "Cost of sales," "Selling, general, and administrative expenses," and "Interest and other financing expense, net" based upon the nature of the underlying hedged transaction, in the company’s consolidated statements of operations. At April 3, 2021 and December 31, 2020 the company had foreign exchange contracts to sell Euro and buy United States Dollars, with various maturity dates as noted in the table below: Maturity Date Notional Amount March 2023 EUR 50,000 September 2024 EUR 50,000 April 2025 EUR 100,000 January 2028 EUR 100,000 Total EUR 300,000 The contracts above have been designated as a net investment hedge which is in place to hedge a portion of the company’s net investment in subsidiaries with euro-denominated net assets. The change in the fair value of derivatives designated as net investment hedges are recorded in “foreign currency translation adjustment” (“CTA”) within “Accumulated other comprehensive loss" in the company’s consolidated balance sheets. Amounts excluded from the assessment of hedge effectiveness are included in “Interest and other financing expense, net” in the company’s consolidated statements of operations. The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Income Statement Line Quarter Ended April 3, March 28, Gain (Loss) Recognized in Income (Loss) Foreign exchange contracts, net investment hedge (a) Interest Expense $ 2,201 $ 2,201 Interest rate swaps, cash flow hedge Interest Expense (351) (1,529) Total $ 1,850 $ 672 Gain (Loss) Recognized in Other Comprehensive Income Foreign exchange contracts, net investment hedge (b) $ 6,978 $ 17,647 Interest rate swaps, cash flow hedge 36,085 (29,556) Total $ 43,063 $ (11,909) (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) Includes derivative gains (losses) excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (net of tax) of $(5,091) and $17,994 for the first quarter of 2021 and 2020, respectively. Other The carrying amount of cash and cash equivalents, accounts receivable, net, and accounts payable approximate their fair value due to the short maturities of these financial instruments. |
Restructuring, Integration, and
Restructuring, Integration, and Other Charges (Credits) | 3 Months Ended |
Apr. 03, 2021 | |
Restructuring Charges [Abstract] | |
Restructuring, Integration and Other Charges (Credits) [Text Block] | Restructuring, Integration, and Other Charges Restructuring initiatives are due to the company’s continued efforts to lower cost and drive operational efficiency. Integration costs are primarily related to the integration of acquired businesses within the company’s pre-existing business and the consolidation of certain operations. The following table presents the components of the restructuring, integration, and other charges: Quarter Ended April 3, March 28, Restructuring and integration charges - current period actions $ 4,850 $ 3,705 Restructuring and integration charges - actions taken in prior periods 1,400 1,521 Other charges (credits) (541) 3,912 $ 5,709 $ 9,138 Restructuring and Integration Accrual Summary |
Net Income (Loss) per Share
Net Income (Loss) per Share | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Net Income (Loss) per Share [Text Block] | Net Income per Share The following table presents the computation of net income per share on a basic and diluted basis (shares in thousands): Quarter Ended April 3, March 28, Net income attributable to shareholders $ 206,321 $ 49,503 Weighted-average shares outstanding - basic 74,882 80,407 Net effect of various dilutive stock-based compensation awards 912 701 Weighted-average shares outstanding - diluted 75,794 81,108 Net income per share: Basic $ 2.76 $ 0.62 Diluted (a) $ 2.72 $ 0.61 (a) Stock-based compensation awards for the issuance of 103 and 1,307 shares for the first quarter of 2021 and 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Apr. 03, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Accumulated Other Comprehensive Income (Loss) The following table presents the changes in Accumulated other comprehensive loss, excluding noncontrolling interests: Quarter Ended April 3, March 28, Foreign Currency Translation Adjustment and Other: Other comprehensive loss before reclassifications (a) $ (59,548) $ (77,207) Amounts reclassified into income (520) 106 Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications 6,978 17,647 Amounts reclassified into income (1,672) (1,670) Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive income (loss) before reclassifications 36,085 (29,556) Amounts reclassified into income 267 1,159 Employee Benefit Plan Items, Net: Amounts reclassified into income (166) 2,248 Net change in Accumulated other comprehensive income (loss) $ (18,576) $ (87,273) (a) Includes intra-entity foreign currency transactions that are of a long-term investment nature of $(2,597) and $9,317 for the first quarter of 2021 and 2020, respectively. Share-Repurchase Program The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of April 3, 2021: Month of Board Approval Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate December 2018 $ 600,000 $ 600,000 $ — July 2020 600,000 286,534 313,466 Total $ 1,200,000 $ 886,534 $ 313,466 |
Contingencies
Contingencies | 3 Months Ended |
Apr. 03, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies [Text Block] | Contingencies Environmental Matters In connection with the purchase of Wyle Electronics ("Wyle") in August 2000, the company acquired certain of the then outstanding obligations of Wyle, including Wyle's indemnification obligations to the purchasers of its Wyle Laboratories division for environmental clean-up costs associated with any then existing contamination or violation of environmental regulations. Under the terms of the company's purchase of Wyle from the sellers, the sellers agreed to indemnify the company for certain costs associated with the Wyle environmental obligations, among other things. In 2012, the company entered into a settlement agreement with the sellers pursuant to which the sellers paid $110,000 and the company released the sellers from their indemnification obligation. As part of the settlement agreement the company accepted responsibility for any potential subsequent costs incurred related to the Wyle matters. The company is aware of two Wyle Laboratories facilities (in Huntsville, Alabama and Norco, California) at which contaminated groundwater was identified and require environmental remediation. In addition, the company was named as a defendant in several lawsuits related to the Norco facility and a third site in El Segundo, California which have been settled to the satisfaction of the parties. The company expects these environmental liabilities to be resolved over an extended period of time. Costs are recorded for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accruals for environmental liabilities are adjusted periodically as facts and circumstances change, assessment and remediation efforts progress, or as additional technical or legal information becomes available. Environmental liabilities are difficult to assess and estimate due to various unknown factors such as the timing and extent of remediation, improvements in remediation technologies, and the extent to which environmental laws and regulations may change in the future. Accordingly, the company cannot presently estimate the ultimate potential costs related to these sites until such time as a substantial portion of the investigation at the sites is completed and remedial action plans are developed and, in some instances, implemented. To the extent that future environmental costs exceed amounts currently accrued by the company, net income would be adversely impacted and such impact could be material. Accruals for environmental liabilities are included in “Accrued expenses” and “Other liabilities” in the company’s consolidated balance sheets. The company has determined that there is no amount within the environmental liability range that is a better estimate than any other amount, and therefore has recorded the accruals at the minimum amount of the ranges. As successor-in-interest to Wyle, the company is the beneficiary of various Wyle insurance policies that covered liabilities arising out of operations at Norco and Huntsville. To date, the company has recovered approximately $42,000 from certain insurance carriers relating to environmental clean-up matters at the Norco and Huntsville sites. The company filed suit against two insurers regarding liabilities arising out of operations at Huntsville and reached a confidential settlement with one of the insurers during the third quarter of 2020. The resolution of this matter against the remaining insurer will likely take several years. The company has not recorded a receivable for any potential future insurance recoveries related to the Norco and Huntsville environmental matters, as the realization of the claims for recovery are not deemed probable at this time. Environmental Matters - Huntsville In February 2015, the company and the Alabama Department of Environmental Management (“ADEM”) finalized and executed a consent decree in connection with the Huntsville, Alabama site. Characterization of the extent of contaminated soil and groundwater is complete and has been approved by ADEM. Health-risk evaluations and a Corrective Action Development Plan were approved by ADEM in 2018, opening the way for pilot testing of on-site remediation in late 2019. Pilot testing is currently underway, and the extent and timing of future testing and further remediation procedures will be dependent on the outcome of the results of testing currently being performed. Approximately $7,200 was spent to date and the company currently anticipates no additional investigative and related expenditures. The cost of subsequent remediation at the site is estimated to be between $3,200 and $10,000. Despite the amount of work undertaken and planned to date, the company is unable to estimate any potential costs in addition to those discussed above because the complete scope of the work is not yet known, and, accordingly, the associated costs have yet to be determined. Environmental Matters - Norco In October 2003, the company entered into a consent decree with Wyle Laboratories and the California Department of Toxic Substance Control (“DTSC”) in connection with the Norco site. Subsequent to the decree, a Remedial Investigation Work Plan was approved by DTSC in April 2005, the required investigations were performed, and a final Remedial Investigation Report was submitted early in 2008. In 2008, a hydraulic containment system (the “HCS”) was installed as an interim remedial measure to capture and treat groundwater before it moves into the adjacent off-site area. In September 2013, the DTSC approved the final Remedial Action Plan (the “RAP”) for actions in five on-site areas and one off-site area. As of 2018, the remediation measures described in the RAP had been implemented and were being monitored. A Five Year Review (“FYR”) of the HCS submitted to DTSC in December 2016 found that while significant progress was made in on-site and off-site groundwater remediation, contaminants were not sufficiently reduced in a key off-site area identified in the RAP. This exception triggered the need for additional off-site remediation that began in 2018 and was completed in mid-2019. Routine progress monitoring of groundwater and soil gas continue on-site and off-site. Approximately $76,000 was spent to date on remediation, project management, regulatory oversight, and investigative and feasibility study activities. The company currently estimates that these activities will give rise to an additional $5,500 to $17,000. Project management and regulatory oversight include costs incurred by project consultants for project management and costs billed by DTSC to provide regulatory oversight. Despite the amount of work undertaken and planned to date, the company is unable to estimate any potential costs in addition to those discussed above because the complete scope of the work under the RAP is not yet known, and, accordingly, the associated costs have yet to be determined. Other In 2019, the company determined that from 2015 to 2019 a limited number of non-executive employees, without first obtaining required authorization from the company or the United States government, had facilitated product shipments with an aggregate total invoiced value of approximately $4,770, to resellers for reexports to persons covered by the Iran Threat Reduction and Syria Human Rights Act of 2012 or other United States sanctions and export control laws. The company has voluntarily reported these activities to the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) and the United States Department of Commerce’s Bureau of Industry and Security (“BIS”), and conducted an internal investigation and terminated or disciplined the employees involved. BIS has closed its investigation and issued the company a warning letter without referring the matter for further proceedings. No penalties have been imposed by BIS. The company has cooperated fully and intends to continue to cooperate fully with OFAC with respect to its ongoing review, which may result in the imposition of penalties, which the company is currently not able to estimate. During the first quarter of 2020, the company recorded reserves and other adjustments of approximately $32,700 primarily related to foreign tax and other loss contingencies. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information [Text Block] | Segment and Geographic Information The company is a global provider of products, services, and solutions to industrial and commercial users of electronic components and enterprise computing solutions. The company distributes electronic components to original equipment manufacturers and contract manufacturers through its global components business segment and provides enterprise computing solutions to value-added resellers and managed service providers through its global ECS business segment. As a result of the company’s philosophy of maximizing operating efficiencies through the centralization of certain functions, selected fixed assets and related depreciation, as well as borrowings, are not directly attributable to the individual operating segments and are included in the corporate business segment. Sales to external customers are based on the company location that maintains the customer relationship and transacts the external sale. Sales, by segment by geographic area, are as follows: Quarter Ended April 3, March 28, Components: Americas $ 1,701,173 $ 1,552,798 EMEA 1,568,602 1,309,990 Asia/Pacific 3,173,478 1,687,813 Global components $ 6,443,253 $ 4,550,601 ECS: Americas $ 1,151,338 $ 1,128,688 EMEA 791,328 702,128 Global ECS $ 1,942,666 $ 1,830,816 Consolidated (a) $ 8,385,919 $ 6,381,417 (a) Includes sales related to the United States of $2,497,998 and $2,412,087 for the first quarter of 2021 and 2020, respectively. Operating income, by segment, are as follows: Quarter Ended April 3, March 28, Operating income (loss): Global components $ 289,383 $ 164,767 Global ECS (a) 77,359 42,433 Corporate (b) (67,239) (68,896) Consolidated $ 299,503 $ 138,304 (a) Global ECS operating income includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies for the first quarter of 2020. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. (b) Corporate operating income includes restructuring, integration, and other charges of $5,709 and $9,138 for the first quarter of 2021 and 2020, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting Policy | The accompanying consolidated financial statements of Arrow Electronics, Inc. (the "company") were prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year. These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2020, as filed in the company’s Annual Report on Form 10-K. |
Fiscal Period Policy | The company operates on a quarterly calendar that closes on the Saturday closest to the end of the calendar quarter, except for the fourth quarter, which closes on December 31, 2021. |
Goodwill and Intangible Assets Policy | Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. |
Fair Value of Debt Policy | The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 3.50% notes due April 2022, North American asset securitization program, commercial paper, and other obligations approximate their fair value. |
Fair Value of Financial Instruments Policy | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. |
Debt (Policies)
Debt (Policies) | 3 Months Ended |
Apr. 03, 2021 | |
Debt Disclosure [Abstract] | |
Fair Value of Debt Policy | The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 3.50% notes due April 2022, North American asset securitization program, commercial paper, and other obligations approximate their fair value. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill of companies acquired | Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global Global ECS Total Balance as of December 31, 2020 (a) $ 894,975 $ 1,220,494 $ 2,115,469 Foreign currency translation adjustment (7,007) (6,524) (13,531) Balance as of April 3, 2021 (a) $ 887,968 $ 1,213,970 $ 2,101,938 (a) The total carrying value of goodwill as of April 3, 2021 and December 31, 2020 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
Schedule of Intangible assets, net | Intangible assets, net, are comprised of the following as of April 3, 2021: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 329,938 $ (159,928) $ 170,010 Amortizable trade name 8 years 74,444 (20,606) 53,838 $ 404,382 $ (180,534) $ 223,848 Intangible assets, net, are comprised of the following as of December 31, 2020: Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 335,027 $ (157,151) $ 177,876 Amortizable trade name 8 years 74,008 (18,065) 55,943 $ 409,035 $ (175,216) $ 233,819 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | The following table presents the company’s investment in affiliated companies: April 3, December 31, Marubun/Arrow $ 66,755 $ 65,943 Other 10,575 10,415 $ 77,330 $ 76,358 |
Equity in Earnings of Affiliated Companies | The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended April 3, March 28, Marubun/Arrow $ 857 $ 445 Other (13) 85 $ 844 $ 530 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Text Block] | Accounts receivable, net, consists of the following: April 3, December 31, Accounts receivable $ 8,591,443 $ 9,298,135 Allowances for doubtful accounts (88,433) (92,792) Accounts receivable, net $ 8,503,010 $ 9,205,343 |
Accounts Receivable, Allowance for Credit Loss | Changes in the allowance for doubtful accounts consists of the following: Quarter Ended April 3, March 28, Balance at beginning of period $ 92,792 $ 69,433 Effect of adoption of ASU No. 2016-13 — 47,011 Charged to income 1,137 12,539 Translation Adjustments (1,117) (1,869) Writeoffs (4,379) (13,186) Balance at end of period $ 88,433 $ 113,928 |
Transfer of Financial Assets Accounted for as Sales | Other amounts related to the EMEA asset securitization program consist of the following: April 3, December 31, Receivables sold to unaffiliated financial institutions that were uncollected $ 386,596 $ 397,914 Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. 678,520 551,843 |
ST Debt (Tables)
ST Debt (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
ST Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings, including current portion of long-term debt, consists of the following: April 3, December 31, 5.125% notes, due March 2021 $ — $ 130,836 3.50% notes, due April 2022 349,129 — Other short-term borrowings 12,198 27,797 $ 361,327 $ 158,633 |
LT Debt (Tables)
LT Debt (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Schedule of Long-term Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: April 3, December 31, Revolving credit facility $ 55,000 $ — North American asset securitization program 100,000 — 3.50% notes, due 2022 — 348,918 4.50% notes, due 2023 298,844 298,701 3.25% notes, due 2024 496,287 496,034 4.00% notes, due 2025 347,161 346,999 7.50% senior debentures, due 2027 109,960 109,939 3.875% notes, due 2028 495,371 495,223 Other obligations with various interest rates and due dates 1,225 2,126 $ 1,903,848 $ 2,097,940 |
Schedule of Fair Value of Debt [Text Block] | The estimated fair market value of long-term debt, using quoted market prices, is as follows: April 3, December 31, 3.50% notes, due 2022 $ — $ 360,500 4.50% notes, due 2023 318,000 321,500 3.25% notes, due 2024 535,000 540,500 4.00% notes, due 2025 377,000 383,000 7.50% senior debentures, due 2027 138,000 140,000 3.875% notes, due 2028 543,000 564,000 |
Financial Instruments Measure_2
Financial Instruments Measured at Fair Value (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Fair Value Disclosures | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis Table [Text Block] | The following table presents assets (liabilities) measured at fair value on a recurring basis at April 3, 2021: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents $ 6,729 $ — $ — $ 6,729 Equity investments (b) Other assets 50,493 — — 50,493 Interest rate swaps designated as cash flow hedges Other assets — 68,503 — 68,503 Foreign exchange contracts designated as net investment hedges Other assets — 21,949 — 21,949 $ 57,222 $ 90,452 $ — $ 147,674 The following table presents assets (liabilities) measured at fair value on a recurring basis at December 31, 2020: Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ $ 6,062 $ — $ — $ 6,062 Equity investments (b) Other assets 45,879 — — 45,879 Interest rate swaps designated as cash flow hedges Other assets — 20,983 — 20,983 Foreign exchange contracts designated as net investment hedges Other assets — 12,760 — 12,760 $ 51,941 $ 33,743 $ — $ 85,684 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. |
Description of Derivative Hedging Instruments | At April 3, 2021 and December 31, 2020, the company had the following outstanding interest rate swaps designated as cash flow hedges: Trade Date Maturity Date Notional Amount Weighted Average Interest Rate Date Range of Forecasted Transaction April 2020 December 2024 $300,000 0.97% Jan 2023 - Dec 2025 May 2020 June 2022 $300,000 0.90% Jan 2021 - Jun 2023 |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block] | The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Income Statement Line Quarter Ended April 3, March 28, Gain (Loss) Recognized in Income (Loss) Foreign exchange contracts, net investment hedge (a) Interest Expense $ 2,201 $ 2,201 Interest rate swaps, cash flow hedge Interest Expense (351) (1,529) Total $ 1,850 $ 672 Gain (Loss) Recognized in Other Comprehensive Income Foreign exchange contracts, net investment hedge (b) $ 6,978 $ 17,647 Interest rate swaps, cash flow hedge 36,085 (29,556) Total $ 43,063 $ (11,909) (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) Includes derivative gains (losses) excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (net of tax) of $(5,091) and $17,994 for the first quarter of 2021 and 2020, respectively. |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |
Fair Value Disclosures | |
Description of Derivative Hedging Instruments | At April 3, 2021 and December 31, 2020 the company had foreign exchange contracts to sell Euro and buy United States Dollars, with various maturity dates as noted in the table below: Maturity Date Notional Amount March 2023 EUR 50,000 September 2024 EUR 50,000 April 2025 EUR 100,000 January 2028 EUR 100,000 Total EUR 300,000 |
Restructuring, Integration, a_2
Restructuring, Integration, and Other Charges (Credits) (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs (Credits) [Text Block] | The following table presents the components of the restructuring, integration, and other charges: Quarter Ended April 3, March 28, Restructuring and integration charges - current period actions $ 4,850 $ 3,705 Restructuring and integration charges - actions taken in prior periods 1,400 1,521 Other charges (credits) (541) 3,912 $ 5,709 $ 9,138 |
Net Income (Loss) per Share (Ta
Net Income (Loss) per Share (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Losses) Per Share, Basic and Diluted [Table Text Block] | The following table presents the computation of net income per share on a basic and diluted basis (shares in thousands): Quarter Ended April 3, March 28, Net income attributable to shareholders $ 206,321 $ 49,503 Weighted-average shares outstanding - basic 74,882 80,407 Net effect of various dilutive stock-based compensation awards 912 701 Weighted-average shares outstanding - diluted 75,794 81,108 Net income per share: Basic $ 2.76 $ 0.62 Diluted (a) $ 2.72 $ 0.61 (a) Stock-based compensation awards for the issuance of 103 and 1,307 shares for the first quarter of 2021 and 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity Components
Shareholders' Equity Components of Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Changes in Components of Accumulated Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents the changes in Accumulated other comprehensive loss, excluding noncontrolling interests: Quarter Ended April 3, March 28, Foreign Currency Translation Adjustment and Other: Other comprehensive loss before reclassifications (a) $ (59,548) $ (77,207) Amounts reclassified into income (520) 106 Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications 6,978 17,647 Amounts reclassified into income (1,672) (1,670) Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive income (loss) before reclassifications 36,085 (29,556) Amounts reclassified into income 267 1,159 Employee Benefit Plan Items, Net: Amounts reclassified into income (166) 2,248 Net change in Accumulated other comprehensive income (loss) $ (18,576) $ (87,273) (a) Includes intra-entity foreign currency transactions that are of a long-term investment nature of $(2,597) and $9,317 for the first quarter of 2021 and 2020, respectively. |
Share-Repurchase Programs [Table Text Block] | The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of April 3, 2021: Month of Board Approval Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate December 2018 $ 600,000 $ 600,000 $ — July 2020 600,000 286,534 313,466 Total $ 1,200,000 $ 886,534 $ 313,466 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Apr. 03, 2021 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Text Block] | Sales, by segment by geographic area, are as follows: Quarter Ended April 3, March 28, Components: Americas $ 1,701,173 $ 1,552,798 EMEA 1,568,602 1,309,990 Asia/Pacific 3,173,478 1,687,813 Global components $ 6,443,253 $ 4,550,601 ECS: Americas $ 1,151,338 $ 1,128,688 EMEA 791,328 702,128 Global ECS $ 1,942,666 $ 1,830,816 Consolidated (a) $ 8,385,919 $ 6,381,417 (a) Includes sales related to the United States of $2,497,998 and $2,412,087 for the first quarter of 2021 and 2020, respectively. Operating income, by segment, are as follows: Quarter Ended April 3, March 28, Operating income (loss): Global components $ 289,383 $ 164,767 Global ECS (a) 77,359 42,433 Corporate (b) (67,239) (68,896) Consolidated $ 299,503 $ 138,304 (a) Global ECS operating income includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies for the first quarter of 2020. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. (b) Corporate operating income includes restructuring, integration, and other charges of $5,709 and $9,138 for the first quarter of 2021 and 2020, respectively. |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021USD ($) | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2020 (a) | $ 2,115,469 | [1] |
Foreign currency translation adjustment | (13,531) | |
Balance as of April 3, 2021 (a) | 2,101,938 | [1] |
Accumulated impairment charges | 1,588,955 | |
Global Components | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2020 (a) | 894,975 | [1] |
Foreign currency translation adjustment | (7,007) | |
Balance as of April 3, 2021 (a) | 887,968 | [1] |
Accumulated impairment charges | 1,287,100 | |
Global ECS | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2020 (a) | 1,220,494 | [1] |
Foreign currency translation adjustment | (6,524) | |
Balance as of April 3, 2021 (a) | 1,213,970 | [1] |
Accumulated impairment charges | $ 301,855 | |
[1] | The total carrying value of goodwill as of April 3, 2021 and December 31, 2020 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
Goodwill - Intangibles (Details
Goodwill - Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 404,382 | $ 409,035 | |
Accumulated Amortization | (180,534) | (175,216) | |
Net | 223,848 | $ 233,819 | |
Amortization of Intangible Assets | $ 9,326 | $ 9,955 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Life | 12 years | 12 years | |
Gross Carrying Amount | $ 329,938 | $ 335,027 | |
Accumulated Amortization | (159,928) | (157,151) | |
Net | $ 170,010 | $ 177,876 | |
Amortizable trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Life | 8 years | 8 years | |
Gross Carrying Amount | $ 74,444 | $ 74,008 | |
Accumulated Amortization | (20,606) | (18,065) | |
Net | $ 53,838 | $ 55,943 |
Investments in Affiliated Com_3
Investments in Affiliated Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 8.40% | ||
Investments in affiliated companies | $ 77,330 | $ 76,358 | |
Income (Loss) from Equity Method Investments | 844 | $ 530 | |
Equity Method Investment Pro Rata Share of Debt Obligations of Joint Venture | $ 0 | ||
Marubun Arrow [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Investments in affiliated companies | $ 66,755 | 65,943 | |
Income (Loss) from Equity Method Investments | $ 857 | 445 | |
Other joint ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Ownership Percentage | 50.00% | ||
Investments in affiliated companies | $ 10,575 | $ 10,415 | |
Income (Loss) from Equity Method Investments | $ (13) | $ 85 |
Accounts Receivable (Details)
Accounts Receivable (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||||
Apr. 03, 2021USD ($) | Mar. 28, 2020USD ($) | Apr. 03, 2021USD ($) | Apr. 03, 2021EUR (€) | Jan. 01, 2021USD ($) | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable | $ 8,591,443 | $ 9,298,135 | ||||
Allowances for doubtful accounts | $ 88,433 | $ 113,928 | 88,433 | $ 92,792 | 92,792 | |
Accounts receivable, net | 8,503,010 | 9,205,343 | ||||
Agreement Amount with Purchaser to Transfer Financial Assets Accounted For As Sales | € | € 400,000 | |||||
Receivables sold to unaffiliated financial institutions during the period | 517,042 | 528,453 | ||||
Receivables sold to unaffiliated financial institutions that were uncollected | 386,596 | 397,914 | ||||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Balance at beginning of period | 92,792 | 69,433 | ||||
Charged to income | 1,137 | 12,539 | ||||
Translation Adjustments | (1,117) | (1,869) | ||||
Writeoffs | (4,379) | (13,186) | ||||
Balance at end of period | 88,433 | 113,928 | ||||
Asset Pledged as Collateral | Variable Interest Entity, Primary Beneficiary | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Collateralized accounts receivable held by Arrow EMEA funding Corp B.V. | 678,520 | $ 551,843 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowances for doubtful accounts | 0 | 47,011 | $ 0 | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Balance at beginning of period | $ 47,011 | |||||
Balance at end of period | $ 0 |
Debt - ST Debt (Details)
Debt - ST Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Apr. 03, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | ||
Debt, Current | $ 361,327 | $ 158,633 |
5.125% notes, due 2021 | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | |
Redemption of notes | $ 130,860 | |
Borrowings on lines of credit | ||
Short-term Debt [Line Items] | ||
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 1.50% | 1.53% |
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 0 | $ 0 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 0.26% | 0.30% |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |
Other short-term borrowings | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 12,198 | $ 27,797 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.09% | 1.73% |
6.00% notes, due April 2020 | ||
Short-term Debt [Line Items] | ||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Redemption of notes | $ 209,366 | |
5.125% notes, due 2021 | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 0 | 130,836 |
3.50% notes, due 2022 | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 349,129 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | |
North American Asset securitization program | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,250,000 |
Debt - LT Debt (Details)
Debt - LT Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 1,903,848 | $ 2,097,940 | |
Accounts receivable, net | 8,503,010 | 9,205,343 | |
Interest and dividend income | 4,106 | $ 9,965 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | 55,000 | 0 | |
Maximum Borrowing Capacity | $ 2,000,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.25% | ||
Debt Instrument, Basis Spread on Variable Rate | 1.18% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||
North American Asset securitization program | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 100,000 | 0 | |
Maximum Borrowing Capacity | $ 1,250,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.52% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.45% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||
Accounts receivable, net | $ 1,874,800 | 2,207,700 | |
Line of Credit Facility, Prior Maximum Borrowing Capacity | 1,200,000 | ||
3.50% notes, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | 0 | 348,918 | |
Debt Instrument, Fair Value Disclosure | $ 0 | 360,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
4.50% notes, due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 298,844 | 298,701 | |
Debt Instrument, Fair Value Disclosure | $ 318,000 | 321,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
3.25% notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 496,287 | 496,034 | |
Debt Instrument, Fair Value Disclosure | $ 535,000 | 540,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||
4.00% notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 347,161 | 346,999 | |
Debt Instrument, Fair Value Disclosure | $ 377,000 | 383,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||
7.50% senior debentures, due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 109,960 | 109,939 | |
Debt Instrument, Fair Value Disclosure | $ 138,000 | 140,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
3.875% notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Excluding Current Maturities | $ 495,371 | 495,223 | |
Debt Instrument, Fair Value Disclosure | $ 543,000 | 564,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | ||
Other obligations with various interest rates and due dates | |||
Debt Instrument [Line Items] | |||
Other obligations with various interest rates and due dates | $ 1,225 | $ 2,126 |
Financial Instruments Measure_3
Financial Instruments Measured at Fair Value - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 03, 2021 | Mar. 28, 2020 | Dec. 31, 2020 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized Gain on Securities | $ 1,402 | |||
Unrealized Loss on Securities | $ 9,995 | |||
Equity Method Investment, Ownership Percentage | 8.40% | |||
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | $ 6,729 | $ 6,062 | ||
Equity investments | 50,493 | 45,879 | ||
Interest rate swaps designated as cash flow hedges - asset | 68,503 | 20,983 | ||
Foreign exchange contracts designated as net investment hedges | 21,949 | 12,760 | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 147,674 | 85,684 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | [1] | 6,729 | 6,062 | |
Equity investments | [2] | 50,493 | 45,879 | |
Interest rate swaps designated as cash flow hedges - asset | 0 | 0 | ||
Foreign exchange contracts designated as net investment hedges | 0 | 0 | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 57,222 | 51,941 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Interest rate swaps designated as cash flow hedges - asset | 68,503 | 20,983 | ||
Foreign exchange contracts designated as net investment hedges | 21,949 | 12,760 | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 90,452 | 33,743 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Interest rate swaps designated as cash flow hedges - asset | 0 | 0 | ||
Foreign exchange contracts designated as net investment hedges | 0 | 0 | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | $ 0 | $ 0 | ||
[1] | Cash equivalents include highly liquid investments with an original maturity of less than three months. | |||
[2] | The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized gain of $1,402 and an unrealized loss of $9,995 for the first quarter of 2021 and 2020, respectively, on equity securities held at the end of the quarter. |
Financial Instruments Measure_4
Financial Instruments Measured at Fair Value - Derivatives (Details) € in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Apr. 03, 2021USD ($) | Mar. 28, 2020USD ($) | Dec. 31, 2020USD ($) | Apr. 03, 2021EUR (€) | Dec. 31, 2020EUR (€) | ||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 1,040,328 | $ 914,930 | ||||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 5,306 | $ 15,977 | ||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments, after Tax | (5,091) | 17,994 | ||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 1,850 | 672 | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 43,063 | (11,909) | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 36,352 | (28,397) | ||||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | [1] | 2,201 | 2,201 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | [2] | 6,978 | 17,647 | |||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (351) | (1,529) | ||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 36,085 | (29,556) | ||||
Maturity March 2023 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | € 50,000 | € 50,000 | ||||
Maturity September 2024 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 50,000 | 50,000 | ||||
Maturity April 2025 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 100,000 | 100,000 | ||||
Maturity January 2028 [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | 100,000 | 100,000 | ||||
All Maturities [Member] | Foreign Exchange Forward [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | € | € 300,000 | € 300,000 | ||||
May 2019 | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Before Tax | $ (1,194) | |||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (34,751) | |||||
Payments for Derivative Instrument, Financing Activities | 48,378 | |||||
May 2020 Swaps | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 300,000 | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 0.90% | 0.90% | 0.90% | 0.90% | ||
April 2020 Swaps | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative, Notional Amount | $ 300,000 | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 0.97% | 0.97% | 0.97% | 0.97% | ||
[1] | Represents derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to Interest and other financing expenses, net. | |||||
[2] | Includes derivative gains (losses) excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (net of tax) of $(5,091) and $17,994 for the first quarter of 2021 and 2020, respectively. |
Restructuring, Integration, a_3
Restructuring, Integration, and Other Charges (Credits) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration charges | $ 5,709 | $ 9,138 |
Other charges (credits) | (541) | 3,912 |
Restructuring and integration charges - current period actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration charges | 4,850 | 3,705 |
Restructuring and integration charges - actions taken in prior periods | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration charges | $ 1,400 | $ 1,521 |
Restructuring, Integration, a_4
Restructuring, Integration, and Other Charges (Credits) - Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Dec. 31, 2020 | |
Restructuring, Integration, and Other Charges (Credits) | ||
Restructuring and integration accrual | $ 11,473 | $ 9,735 |
Payments for restructuring and integration | $ (4,109) | |
Number of Years for the Accrual to Be Spent | 1 year |
Net Income (Loss) per Share (De
Net Income (Loss) per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Earnings (Losses) Per Share, Diluted [Line Items] | |||
Net Income (Loss) Attributable to shareholders | $ 206,321 | $ 49,503 | |
Weighted-average shares outstanding - basic | 74,882 | 80,407 | |
Net effect of various dilutive stock-based compensation awards | 912 | 701 | |
Weighted-average shares outstanding - diluted | 75,794 | 81,108 | |
Net income (loss) per share: | |||
Basic | $ 2.76 | $ 0.62 | |
Diluted | [1] | $ 2.72 | $ 0.61 |
Share-based Payment Arrangement [Member] | |||
Net income (loss) per share: | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 103 | 1,307 | |
[1] | Stock-based compensation awards for the issuance of 103 and 1,307 shares for the first quarter of 2021 and 2020, respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | $ (61,921) | $ (77,343) | |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | 5,306 | 15,977 | |
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: | 36,352 | (28,397) | |
Employee Benefit Plan Items, Net: | (166) | 2,248 | |
Net change in Accumulated other comprehensive income (loss) | (18,576) | (87,273) | |
Other comprehensive gain (loss) before reclassifications [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | [1] | (59,548) | (77,207) |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | 6,978 | 17,647 | |
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: | 36,085 | (29,556) | |
Other comprehensive gain (loss) before reclassifications [Member] | Intra-entity foreign currency transactions [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | (2,597) | 9,317 | |
Amounts reclassified into income [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other: | (520) | 106 | |
Unrealized Gain on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: | (1,672) | (1,670) | |
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: | 267 | 1,159 | |
Employee Benefit Plan Items, Net: | $ (166) | $ 2,248 | |
[1] | Includes intra-entity foreign currency transactions that are of a long-term investment nature of $(2,597) and $9,317 for the first quarter of 2021 and 2020, respectively. |
Shareholders' Equity Share-Repu
Shareholders' Equity Share-Repurchase Programs (Details) $ in Thousands | Apr. 03, 2021USD ($) |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 1,200,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 886,534 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 313,466 |
Shares Approved December 2018 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | 600,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 600,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 |
Shares Approved July 2020 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | 600,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 286,534 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 313,466 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 03, 2021 | Mar. 30, 2013 | Jun. 27, 2020 | |
Site Contingency [Line Items] | |||
Litigation Settlement, Amount | $ 110,000 | ||
Environmental Costs Recovered | $ 42,000 | ||
Sales covered by the Iran Threat Reduction and Syria Human Rights Act of 2012 | $ 4,770 | ||
Huntsville Site [Member] | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense To Date | 7,200 | ||
Additional Expected Project Expenditures Low Estimate | 3,200 | ||
Additional Expected Project Expenditures High Estimate | 10,000 | ||
Norco Site [Member] | Remediation, Project Management, Regulatory Oversight, and Investigative and Feasability Studies [Member] | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense To Date | 76,000 | ||
Additional Expected Project Expenditures Low Estimate | 5,500 | ||
Additional Expected Project Expenditures High Estimate | 17,000 | ||
Global ECS | |||
Site Contingency [Line Items] | |||
Foreign tax and other loss contingencies, net of taxes | $ 32,700 |
Segment and Geographic Inform_3
Segment and Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Sales: | |||
Sales | [1] | $ 8,385,919 | $ 6,381,417 |
Operating income (loss): | |||
Operating income (loss) | 299,503 | 138,304 | |
Restructuring, integration, and other charges | 5,709 | 9,138 | |
Global Components | |||
Sales: | |||
Sales | 6,443,253 | 4,550,601 | |
Operating income (loss): | |||
Operating income (loss) | 289,383 | 164,767 | |
Global ECS | |||
Sales: | |||
Sales | 1,942,666 | 1,830,816 | |
Operating income (loss): | |||
Operating income (loss) | [2] | 77,359 | 42,433 |
Foreign tax and other loss contingencies | 29,858 | ||
Corporate | |||
Operating income (loss): | |||
Operating income (loss) | [3] | $ (67,239) | $ (68,896) |
[1] | Includes sales related to the United States of $2,497,998 and $2,412,087 for the first quarter of 2021 and 2020, respectively. | ||
[2] | Global ECS operating income includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies for the first quarter of 2020. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year. | ||
[3] | Corporate operating income includes restructuring, integration, and other charges of $5,709 and $9,138 for the first quarter of 2021 and 2020, respectively. |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Sales (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 03, 2021 | Mar. 28, 2020 | ||
Revenues From External Customers [Line Items] | |||
Sales | [1] | $ 8,385,919 | $ 6,381,417 |
United States [Member] | |||
Revenues From External Customers [Line Items] | |||
Sales | 2,497,998 | 2,412,087 | |
Global Components | |||
Revenues From External Customers [Line Items] | |||
Sales | 6,443,253 | 4,550,601 | |
Global Components | Americas | |||
Revenues From External Customers [Line Items] | |||
Sales | 1,701,173 | 1,552,798 | |
Global Components | EMEA [Member] | |||
Revenues From External Customers [Line Items] | |||
Sales | 1,568,602 | 1,309,990 | |
Global Components | Asia Pacific | |||
Revenues From External Customers [Line Items] | |||
Sales | 3,173,478 | 1,687,813 | |
Global ECS | |||
Revenues From External Customers [Line Items] | |||
Sales | 1,942,666 | 1,830,816 | |
Global ECS | Americas | |||
Revenues From External Customers [Line Items] | |||
Sales | 1,151,338 | 1,128,688 | |
Global ECS | EMEA [Member] | |||
Revenues From External Customers [Line Items] | |||
Sales | $ 791,328 | $ 702,128 | |
[1] | Includes sales related to the United States of $2,497,998 and $2,412,087 for the first quarter of 2021 and 2020, respectively. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 03, 2021 | Mar. 28, 2020 | |
Income Tax Disclosure [Abstract] | ||
Income Tax Expense (Benefit) | $ 61,026 | $ 27,892 |