Cover Document
Cover Document - shares | 3 Months Ended | |
Mar. 28, 2020 | Apr. 23, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 28, 2020 | |
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, $1 par value | |
Trading Symbol | ARW | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 78,667,828 | |
Entity Central Index Key | 0000007536 | |
Document Quarterly report | true | |
Document Transition Report | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | ||
Sales | [1] | $ 6,381,417 | $ 7,155,991 |
Cost of sales | 5,653,026 | 6,294,303 | |
Gross profit | 728,391 | 861,688 | |
Operating expenses: | |||
Selling, general, and administrative expenses | 533,839 | 556,076 | |
Depreciation and amortization | 47,110 | 47,526 | |
Loss on disposition of businesses, net | 0 | 866 | |
Restructuring, integration, and other charges | 9,138 | 11,660 | |
Total operating expenses | 590,087 | 616,128 | |
Operating income | 138,304 | 245,560 | |
Equity in earnings (losses) of affiliated companies | 530 | (1,467) | |
Gain (loss) on investments, net | (16,810) | 5,348 | |
Employee benefit plan expense | (1,109) | (1,139) | |
Interest and other financing expense, net | (43,268) | (51,981) | |
Income before income taxes | 77,647 | 196,321 | |
Provision for income taxes | 27,892 | 53,907 | |
Consolidated net income | 49,755 | 142,414 | |
Noncontrolling interests | 252 | 1,679 | |
Net income attributable to shareholders | $ 49,503 | $ 140,735 | |
Net income per share: | |||
Basic | $ 0.62 | $ 1.65 | |
Diluted | [2] | $ 0.61 | $ 1.63 |
Weighted-average shares outstanding: | |||
Basic | 80,407 | 85,400 | |
Diluted | 81,108 | 86,319 | |
[1] | Includes sales related to the United States of $2,412,087 and $2,782,035 for the first quarter of 2020 and 2019 , respectively. | ||
[2] | Stock-based compensation awards for the issuance of 1,307 and 903 shares for the first quarter of 2020 and 2019 , respectively, were excluded from the computation of net income per share on a diluted basis as their effect was anti-dilutive. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Consolidated net income | $ 49,755 | $ 142,414 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment and other | (77,343) | 4,442 |
Unrealized gain on foreign exchange contracts designated as net investment hedges, net of taxes | 15,977 | 5,533 |
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net of taxes | (28,397) | 240 |
Employee benefit plan items, net of taxes | 2,248 | 319 |
Other comprehensive income (loss) | (87,515) | 10,534 |
Comprehensive income (loss) | (37,760) | 152,948 |
Less: Comprehensive income attributable to noncontrolling interests | 10 | 1,031 |
Comprehensive income (loss) attributable to shareholders | $ (37,770) | $ 151,917 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and cash equivalents | $ 200,998 | $ 300,103 | |
Accounts receivable, net | 7,817,019 | 8,482,687 | |
Inventories | 3,334,298 | 3,477,120 | |
Other current assets | 235,743 | 266,249 | |
Total current assets | 11,588,058 | 12,526,159 | |
Property, plant, and equipment, at cost: | |||
Land | 7,728 | 7,793 | |
Buildings and improvements | 185,542 | 173,370 | |
Machinery and equipment | 1,492,802 | 1,481,525 | |
Property, plant, and equipment, gross | 1,686,072 | 1,662,688 | |
Less: Accumulated depreciation and amortization | (882,650) | (859,578) | |
Property, plant, and equipment, net | 803,422 | 803,110 | |
Investments in affiliated companies | 80,337 | 86,942 | |
Intangible assets, net | 260,955 | 271,903 | |
Goodwill | [1] | 2,044,898 | 2,061,322 |
Other assets | 613,790 | 651,360 | |
Total assets | 15,391,460 | 16,400,796 | |
LIABILITIES AND EQUITY | |||
Accounts payable | 6,662,333 | 7,046,221 | |
Accrued expenses | 873,668 | 880,507 | |
Short-term borrowings, including current portion of long-term debt | 377,177 | 331,431 | |
Total current liabilities | 7,913,178 | 8,258,159 | |
Long-term debt | 2,222,789 | 2,640,129 | |
Other liabilities | 605,884 | 636,115 | |
Equity: | |||
Issued - 125,424 shares in both 2020 and 2019, respectively | 125,424 | 125,424 | |
Capital in excess of par value | 1,145,744 | 1,150,006 | |
Treasury stock (46,756 and 44,804 shares in 2020 and 2019, respectively), at cost | (2,471,375) | (2,332,548) | |
Retained earnings | 6,144,816 | 6,131,248 | |
Accumulated other comprehensive loss | (349,484) | (262,211) | |
Total shareholders' equity | 4,595,125 | 4,811,919 | |
Noncontrolling interests | 54,484 | 54,474 | |
Total equity | 4,649,609 | 4,866,393 | |
Total liabilities and equity | $ 15,391,460 | $ 16,400,796 | |
[1] | The total carrying value of goodwill as of March 28, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
CONSOLIDATED BALANCE SHEETS Par
CONSOLIDATED BALANCE SHEETS Parenthetical - $ / shares shares in Thousands | Mar. 28, 2020 | Dec. 31, 2019 |
Common Stock, Par or Stated Value Per Share | $ 1 | $ 1 |
Common Stock, Shares Authorized | 160,000 | 160,000 |
Common Stock, Shares, Issued | 125,424 | 125,424 |
Treasury Stock, Shares | 46,756 | 44,804 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Cash flows from operating activities: | ||
Consolidated net income | $ 49,755 | $ 142,414 |
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: | ||
Depreciation and amortization | 47,110 | 47,526 |
Amortization of stock-based compensation | 13,920 | 19,090 |
Equity in (earnings) losses of affiliated companies | (530) | 1,467 |
Deferred income taxes | 32,613 | 6,968 |
(Gain) loss on investments, net | 16,810 | (5,348) |
Other | (205) | 5,575 |
Change in assets and liabilities, net of effects of acquired and disposed businesses: | ||
Accounts receivable | 558,605 | 949,989 |
Inventories | 133,392 | 134,402 |
Accounts payable | (343,051) | (1,540,008) |
Accrued expenses | (31,326) | (50,292) |
Other assets and liabilities | (10,228) | (40,782) |
Net cash provided by (used for) operating activities | 466,865 | (328,999) |
Cash flows from investing activities: | ||
Acquisition of property, plant, and equipment | (27,971) | (33,815) |
Other | (5,466) | 2,940 |
Net cash used for investing activities | (33,437) | (30,875) |
Cash flows from financing activities: | ||
Change in short-term and other borrowings | (84,354) | (107,244) |
Proceeds from (repayments of) long-term bank borrowings, net | (288,577) | 335,023 |
Proceeds from exercise of stock options | 1,980 | 6,931 |
Repurchases of common stock | (158,989) | (53,925) |
Net cash provided by (used for) financing activities | (529,940) | 180,785 |
Effect of exchange rate changes on cash | (2,593) | 21,661 |
Net decrease in cash and cash equivalents | (99,105) | (157,428) |
Cash and cash equivalents at beginning of period | 300,103 | 509,327 |
Cash and cash equivalents at end of period | $ 200,998 | $ 351,899 |
CONSOLIDATED STATEMENTS OF EQUI
CONSOLIDATED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Common Stock at Par Value | Capital in Excess of Par Value | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
Balance at Dec. 31, 2018 | $ 5,376,366 | $ 125,424 | $ 1,135,934 | $ (1,972,254) | $ 6,335,335 | $ (299,449) | $ 51,376 |
Consolidated net income | 142,414 | 0 | 0 | 0 | 140,735 | 0 | 1,679 |
Other comprehensive income (loss) | 10,534 | 0 | 0 | 0 | 0 | 11,182 | (648) |
Amortization of stock-based compensation | 19,090 | 0 | 19,090 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 6,931 | 0 | (26,267) | 33,198 | 0 | 0 | 0 |
Repurchases of common stock | (53,925) | 0 | 0 | (53,925) | 0 | 0 | 0 |
Balance at Mar. 30, 2019 | 5,501,410 | 125,424 | 1,128,757 | (1,992,981) | 6,476,070 | (288,267) | 52,407 |
Balance at Dec. 31, 2019 | 4,866,393 | 125,424 | 1,150,006 | (2,332,548) | 6,131,248 | (262,211) | 54,474 |
Consolidated net income | 49,755 | 0 | 0 | 0 | 49,503 | 0 | 252 |
Other comprehensive income (loss) | (87,515) | 0 | 0 | 0 | 0 | (87,273) | (242) |
Amortization of stock-based compensation | 13,920 | 0 | 13,920 | 0 | 0 | 0 | 0 |
Shares issued for stock-based compensation awards | 1,980 | 0 | (18,182) | 20,162 | 0 | 0 | 0 |
Repurchases of common stock | (158,989) | 0 | 0 | (158,989) | 0 | 0 | 0 |
Balance at Mar. 28, 2020 | 4,649,609 | 125,424 | 1,145,744 | (2,471,375) | 6,144,816 | (349,484) | 54,484 |
Effect of new accounting principles | $ (35,935) | $ 0 | $ 0 | $ 0 | $ (35,935) | $ 0 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Basis of Presentation The accompanying consolidated financial statements of Arrow Electronics, Inc. (the "company") were prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year. These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2019 , as filed in the company’s Annual Report on Form 10-K. Quarter End The company operates on a quarterly calendar that closes on the Saturday closest to the end of the calendar quarter, except for the fourth quarter, which closes on December 31, 2020. Reclassification Certain prior period amounts were reclassified to conform to the current period presentation. These reclassifications did not have a material impact on previously reported amounts. |
Impact of Recently Issued Accou
Impact of Recently Issued Accounting Standards | 3 Months Ended |
Mar. 28, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies [Text Block] | Impact of Recently Issued Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update ("ASU") No. 2020-04, Reference Rate Reform (Topic 848) Facilitation of the Effects of Reference Rate Reform on Financial Reporting ("ASU No. 2020-04") . ASU No. 2020-04 provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another rate that is expected to be discontinued. The amendments in the ASU are effective for all entities as of March 12, 2020 through December 31, 2022. The company adopted the provisions of ASU No. 2020-04 on a prospective basis in March 2020. In June 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (“Topic 326”). Topic 326 revises the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. On January 1, 2020, the company adopted Topic 326 using a modified retrospective approach with a cumulative effect adjustment to the opening balance of retained earnings, which increased the allowance for credit losses by $47,011 ( $35,935 net of tax). Increases in the allowance for credit losses relate to the required change from an incurred loss model to an expected loss model, and the related change in timing of loss recognition where an allowance for credit losses is now applied to all receivables, at a rate dependent on the credit characteristics of the collective pool each customer is in. Refer to Notes C and F. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 28, 2020 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Except for the changes below, no material changes have been made to the company’s significant accounting policies disclosed in Note 1, Summary of Significant Accounting Policies, in its Annual Report on Form 10-K, filed on February 13, 2020, for the year ended December 31, 2019. Trade accounts and notes receivable Trade accounts and notes receivable are reported at amortized cost, net of the allowance for credit losses in the consolidated balance sheets. The allowance for credit losses is a valuation account that is deducted from the receivables' amortized cost basis to present the net amount expected to be collected. Receivables are written off against the allowance when management believes the receivable balance is confirmed to be uncollectible. Management estimates the allowance for credit losses using relevant available information about expected credit losses and an age-based reserve model. Inputs to the model include information about historical credit losses, customer credit ratings, past events, current conditions, and reasonable and supportable forecasts. Adjustments to historical loss information are made for differences in current receivable-specific risk characteristics such as changes in environmental conditions, economic and industry changes, or other relevant factors. Expected credit losses are estimated on a collective (pool) basis, when similar risk characteristics exist, based on customer credit ratings, which include both externally acquired as well as internally determined credit ratings. Receivables that do not share risk characteristics are evaluated on an individual basis. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill and Intangible Assets Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global Components Global ECS Total Balance as of December 31, 2019 (a) $ 883,496 $ 1,177,826 $ 2,061,322 Foreign currency translation adjustment (2,418 ) (14,006 ) (16,424 ) Balance as of March 28, 2020 (a) $ 881,078 $ 1,163,820 $ 2,044,898 (a) The total carrying value of goodwill as of March 28, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. During the first quarter of 2020, as a result of significant declines in macroeconomic conditions and equity valuations, and the implementation of regulatory restrictions brought forth by the COVID-19 pandemic, and due to historically low head-room, the company determined that it was more likely than not that an impairment may exist within the Americas components and eInfochips reporting units. The company performed a quantitative goodwill impairment test for these reporting units and determined goodwill was not impaired. The fair value of the Americas components and eInfochips reporting units within the global components business segment exceeded their carrying values by approximately 4% and 2% , respectively. The company estimated the fair value of these reporting units using the income approach. For the purposes of the income approach, fair value was determined based on the present value of estimated future cash flows, discounted at an appropriate risk adjusted rate. The fair value conclusions as of March 28, 2020 for the Americas components and eInfochips reporting units are highly sensitive to changes in the assumptions used in the income approach which include forecasted revenues, gross profit margins, operating income margins, working capital cash flow, forecasted capital expenditures, perpetual growth rates, and long-term discount rates, among others, all of which require significant judgments by management. The company has used recent historical performance, current forecasted financial information, and broad-based industry and economic statistics as a basis to estimate the key assumptions utilized in the discounted cash flow model. These key assumptions are inherently uncertain and require a high degree of estimation and judgment and are subject to change based on future changes, industry and global economic and geo-political conditions, and the timing and success of the implementation of current strategic initiatives. The impact of the COVID-19 pandemic on estimated future cash flows is highly uncertain and will largely depend on the outcome of future events, which could result in a goodwill impairment going forward. The impacts of COVID-19 were considered in the impairment analysis through the use of probability weighted cash flow scenarios and an increase in the discount rates. Intangible assets, net, are comprised of the following as of March 28, 2020 : Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 11 years $ 351,092 $ (153,741 ) $ 197,351 Amortizable trade name 8 years 76,407 (12,803 ) 63,604 $ 427,499 $ (166,544 ) $ 260,955 Intangible assets, net, are comprised of the following as of December 31, 2019 : Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 354,305 $ (148,632 ) $ 205,673 Amortizable trade name 8 years 76,407 (10,177 ) 66,230 $ 430,712 $ (158,809 ) $ 271,903 During the first quarter of 2020 and 2019 , the company recorded amortization expense related to identifiable intangible assets of $9,955 and $11,930 |
Investments in Affiliated Compa
Investments in Affiliated Companies | 3 Months Ended |
Mar. 28, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Affiliated Companies [Text Block] | Investments in Affiliated Companies The company owns a 50% interest in two joint ventures with Marubun Corporation (collectively “Marubun/Arrow”) and a 50% interest in one other joint venture. These investments are accounted for using the equity method. The following table presents the company’s investment in affiliated companies: March 28, December 31, Marubun/Arrow $ 71,646 $ 76,574 Other 8,691 10,368 $ 80,337 $ 86,942 The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended March 28, March 30, Marubun/Arrow $ 445 $ 1,226 Other 85 (2,693 ) $ 530 $ (1,467 ) 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. At March 28, 2020 and December 31, 2019 , the company’s pro-rata share of this debt was approximately $6,000 and $1,700 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Mar. 28, 2020 | |
Receivables [Abstract] | |
Accounts Receivable [Text Block] | Accounts Receivable Accounts receivable, net, consists of the following: March 28, December 31, Accounts receivable $ 7,930,947 $ 8,552,120 Allowances for doubtful accounts (113,928 ) (69,433 ) $ 7,817,019 $ 8,482,687 The company has notes receivable with certain customers, which are included in “Accounts receivable, net” in the company’s consolidated balance sheets. Allowances for doubtful accounts consists of the following: Balance at December 31, 2019 $ 69,433 Effect of adoption of ASU No. 2016-13 (Note B) 47,011 Charged to income 12,539 Translation Adjustments (1,869 ) Writeoffs (13,186 ) Balance at March 28, 2020 $ 113,928 The global economic impact from COVID-19 may adversely affect the credit condition of some of our customers. The company has considered the current credit condition of its customers in estimating the expected credit losses as of March 28, 2020. The impact of the COVID-19 on our customers credit condition is highly uncertain and will largely depend on the outcome of future events, which could result increases in credit losses. During the first quarter of 2020, the company entered into an EMEA asset securitization program under which it will continuously sell its interest in designated pools of trade accounts receivable 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 an unaffiliated financial institution and a conduit administered by an unaffiliated financial institution on a monthly basis. The company may sell up to €400,000 under the EMEA asset securitization program, which matures in January 2023. The program is conducted through Arrow EMEA Funding Corp B.V., a bankruptcy remote entity. The company is deemed the primary beneficiary of Arrow EMEA Funding Corp B.V. as the company has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive the benefits that could potentially be significant to the entity from the transfer of the trade accounts receivable into the special purpose entity. Accordingly, Arrow EMEA Funding Corp B.V. is included in the company’s consolidated financial statements. Receivables sold under the program are excluded from “Accounts receivable, net” on the company’s consolidated balance sheets and cash receipts are reflected as cash provided by operating activities on the consolidated statements of cash flows. The entire 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 the unaffiliated financial institution. These unsold receivables are included in “Accounts receivable, net” in the company’s consolidated balance sheets. The company continues servicing the receivables sold and in exchange receives a servicing fee under the program. Servicing fees related to the EMEA securitization program are not material. 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 three months ended March 28, 2020 , the company sold approximately €488,721 , or $528,453 , of accounts receivable under the EMEA securitization program. There were €346,709 , or $382,089 , of receivables outstanding as of March 28, 2020 . Total collateralized accounts receivable of approximately €155,212 , or $170,961 , were held by Arrow EMEA Funding Corp B.V. at March 28, 2020 . Any accounts receivable held by Arrow EMEA Funding Corp B.V. would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings if there are outstanding balances under the EMEA asset securitization program. The assets of the special purpose entity cannot be used by the company for general corporate purposes. Additionally, the financial obligations of Arrow EMEA Funding Corp B.V. to the unaffiliated financial institution under the program are limited to the assets it owns and there is no recourse to the company for receivables that are uncollectible as a result of the insolvency or inability to pay of the account debtors. The EMEA asset securitization program includes terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The company was in material compliance with all covenants as of March 28, 2020 and is currently not aware of any events that would cause non-compliance with any covenants in the future. |
Debt
Debt | 3 Months Ended |
Mar. 28, 2020 | |
Debt Disclosure [Abstract] | |
Debt [Text Block] | Debt Short-term borrowings, including current portion of long-term debt, consists of the following: March 28, December 31, 6.00% notes, due April 2020 $ 209,366 $ 209,322 5.125% notes, due March 2021 130,727 — Borrowings on lines of credit — 60,000 Other short-term borrowings 37,084 62,109 $ 377,177 $ 331,431 Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 2.41% and 2.76% at March 28, 2020 and December 31, 2019 , respectively. The company has $200,000 in uncommitted lines of credit. There were no o utstanding borrowings under the uncommitted lines of credit at March 28, 2020 . There were $60,000 of o utstanding borrowings under the uncommitted lines of credit at December 31, 2019 . These borrowings were provided on a short-term basis and the maturity is agreed upon between the company and the lender. The lines had a weighted-average effective interest rate of 2.48% and 2.61% at March 28, 2020 and December 31, 2019 , respectively. The company has a commercial paper program and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1,200,000 . The company had no outstanding borrowings under this program at March 28, 2020 and December 31, 2019 . The program had a weighted-average effective interest rate of 2.01% and 2.24% at March 28, 2020 and December 31, 2019 , respectively. Long-term debt consists of the following: March 28, December 31, Revolving credit facility $ 122,500 $ 10,000 North American Asset securitization program — 400,000 5.125% notes, due 2021 — 130,691 3.50% notes, due 2022 348,292 348,088 4.50% notes, due 2023 298,284 298,148 3.25% notes, due 2024 495,289 495,045 4.00% notes, due 2025 346,523 346,368 7.50% senior debentures, due 2027 109,878 109,857 3.875% notes, due 2028 494,789 494,648 Other obligations with various interest rates and due dates 7,234 7,284 $ 2,222,789 $ 2,640,129 The 7.50% senior debentures are not redeemable prior to their maturity. All other notes may be called at the option of the company subject to “make whole” clauses. The estimated fair market value of long-term debt, using quoted market prices, is as follows: March 28, December 31, 3.50% notes, due 2022 $ 363,000 $ 358,500 4.50% notes, due 2023 324,500 316,000 3.25% notes, due 2024 462,000 515,500 4.00% notes, due 2025 375,000 367,000 7.50% senior debentures, due 2027 125,500 135,000 3.875% notes, due 2028 496,000 516,500 The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 6.00% notes due April 2020, 5.125% notes due March 2021, North American asset securitization program, commercial paper, and other obligations approximate their fair value. The company has a $2,000,000 revolving credit facility maturing in December 2023. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company’s commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a Eurocurrency rate plus a spread ( 1.18% at March 28, 2020 ), which is based on the company’s credit ratings, or an effective interest rate of 1.27% at March 28, 2020 . The facility fee, which is based on the company’s credit ratings, was .20% of the total borrowing capacity at March 28, 2020 . The company had $122,500 and $10,000 in outstanding borrowings under the revolving credit facility at March 28, 2020 and December 31, 2019 , respectively. The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. The company may borrow up to $1,200,000 under the program, which matures in June 2021. The program is conducted through Arrow Electronics Funding Corporation (“AFC”), a wholly-owned, bankruptcy remote subsidiary. The asset securitization program does not qualify for true sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company’s consolidated balance sheets. Interest on borrowings is calculated using a base rate plus a spread ( .40% at March 28, 2020 ), or an effective interest rate of 1.37% at March 28, 2020 . The facility fee is .40% of the total borrowing capacity. At March 28, 2020 , the company had no outstanding borrowings under the North American asset securitization program. At December 31, 2019 , the company had $400,000 in outstanding borrowings under the North American asset securitization program, which was included in “ Long-term debt” in the company’s consolidated balance sheets. Total collateralized accounts receivable of approximately $2,099,700 and $2,217,800 , respectively, were held by AFC and were included in “ Accounts receivable, net” in the company’s consolidated balance sheets. 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 asset securitization program. Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. The company was in compliance with all covenants as of March 28, 2020 and is currently not aware of any events that would cause non-compliance with any covenants in the future. During April 2020, the company repaid $209,366 principal amount of its 6.00% notes due April 2020. In the normal course of business, certain of the company’s subsidiaries have agreements to sell, without recourse, selected trade receivables to financial institutions. The company does not retain financial or legal interests in these receivables, and, accordingly they are accounted for as sales of the related receivables and the receivables are removed from the company’s consolidated balance sheets. Financing costs related to these transactions were not material and are included in “ Interest and other financing expense, net” in the company’s consolidated statements of operations. Interest and other financing expense, net, includes interest and dividend income of $9,965 and $14,045 for the first quarter of 2020 and 2019, respectively. |
Financial Instruments Measured
Financial Instruments Measured at Fair Value | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments Measured At Fair Value [Text Block] | Financial Instruments Measured at Fair Value Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. The following table presents assets (liabilities) measured at fair value on a recurring basis at March 28, 2020 : Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ other assets $ 18,169 $ — $ — $ 18,169 Equity investments (b) Other assets 32,888 — — 32,888 Interest rate swaps Other liabilities — (50,530 ) — (50,530 ) Foreign exchange contracts Other current assets/ other assets — 51,188 — 51,188 Foreign exchange contracts Accrued expenses — (7,398 ) — (7,398 ) $ 51,057 $ (6,740 ) $ — $ 44,317 The following table presents assets (liabilities) measured at fair value on a recurring basis at December 31, 2019 : Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ other assets $ 18,579 $ — $ — $ 18,579 Equity investments (b) Other assets 44,677 — — 44,677 Interest rate swaps Other liabilities — (11,574 ) — (11,574 ) Foreign exchange contracts Other current assets/ other assets — 24,092 — 24,092 Foreign exchange contracts Accrued expenses — (2,132 ) — (2,132 ) $ 63,256 $ 10,386 $ — $ 73,642 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. (b) The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized loss of $9,995 and an unrealized gain of $1,824 for the first quarter of 2020 and 2019, respectively, on equity securities held at the end of the quarter. 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 In May 2019, the company entered into a series of ten-year forward-starting interest rate swaps (the “2019 swaps”) which locked in an average treasury rate of 2.33% on a total aggregate notional amount of $300,000 and expire in June 2020. The 2019 swaps were designated as cash flow hedges managing the risk of variability in interest rates of future expected debt issuance by June 2020. In February 2020, the company determined that certain of the forecasted cash flows were no longer probable and de-designated the hedging relationship. In February 2020, the company re-designated the 2019 swaps in a new cash flow hedge managing the risk of variability in interest rates of future expected debt issuance by June 2023. The fair value of interest rate swaps are estimated using market quotes. The changes in fair value of the 2019 swaps is 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. During the first quarter of 2020 , losses of $29,556 related to the 2019 swaps were recorded in other comprehensive loss, net of taxes. Also during the first quarter of 2020 , losses of $1,194 , before taxes, were reclassified from “Accumulated other comprehensive loss” to “ Interest and other financing expense, net” related to forecasted cash flows that were deemed no longer probable to occur. The company recorded a liability related to the 2019 swaps of $50,522 and $11,563 as of March 28, 2020 and December 31, 2019 , respectively. In April 2020, the company entered into a series of ten-year forward-starting interest rate swaps (the “2020 swaps”) which locked in an average swap rate of 0.97% on a total aggregate notional amount of $300,000 and expire in December 2024. The 2020 swaps were designated as cash flow hedges managing the risk of variability in interest rates of future expected debt issuance between January 2023 and December 2025. 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, Indian Rupee, Chinese Renminbi, Canadian Dollar, and British Pound. The company enters into foreign exchange forward, option, or swap contracts (collectively, the “foreign exchange contracts”) to facilitate the hedging of foreign currency exposures resulting from inventory purchases and sales and mitigate the impact of changes in foreign currency exchange rates related to these transactions. Foreign exchange contracts generally have terms of no more than six months. Gains or losses on these contracts are deferred and recognized when the underlying future purchase or sale is recognized or when the corresponding asset or liability is revalued. The company does not enter into foreign exchange contracts for trading purposes. The risk of loss on a foreign exchange contract is the risk of nonperformance by the counterparties, which the company minimizes by limiting its counterparties to major financial institutions. The fair value of the foreign exchange contracts are estimated using market quotes. The notional amount of the foreign exchange contracts inclusive of foreign exchange contracts designated as a net investment hedge at March 28, 2020 and December 31, 2019 was $891,291 and $929,966 , respectively. Gains and losses related to non-designated foreign currency exchange contracts are recorded in “Cost of sales” in the company’s consolidated statements of operations. Gains and losses related to foreign currency exchange contracts designated as cash flow hedges are recorded in “Cost of sales,” “Selling, general, and administrative expenses,” and “Interest and other financing expense, net” based upon the nature of the underlying hedged transaction, in the company’s consolidated statements of operations and were not material for the first quarter of 2020 and 2019 . During the first quarter of 2019, the company entered into a series of foreign exchange contracts to sell Euro and buy United States Dollars, with various maturity dates as noted in the table below: Maturity Date Notional Amount March 2023 EUR 50,000 September 2024 EUR 50,000 April 2025 EUR 100,000 January 2028 EUR 100,000 Total EUR 300,000 The contracts above have been designated as a net investment hedge which is in place to hedge a portion of the company’s net investment in subsidiaries with euro-denominated net assets. The change in the fair value of derivatives designated as net investment hedges will be recorded in “ foreign currency translation adjustment” ( “ CTA”) within “ Accumulated other comprehensive income (loss)” in the company’s consolidated balance sheets. Amounts excluded from the assessment of hedge effectiveness will be included in “ Interest and other financing expense, net” in the company’s consolidated statements of operations. The total gains recorded in CTA within other comprehensive income (loss) related to net investment hedges were $17,647 and $6,592 for the first quarter of 2020 and 2019 , net of taxes, respectively. For the first quarter of 2020 and 2019 , derivative amounts excluded from the assessment of effectiveness for the net investment hedges and recognized in other comprehensive income (net of tax) were gains of $17,994 and $1,142 . For the first quarter of 2020 and 2019 , derivative amounts excluded from the assessment of effectiveness for the net investment hedges reclassified from CTA to “ Interest and other financing expense, net” were gains of $2,201 and $1,406 . The company recorded an asset of $44,979 and $21,718 as of March 28, 2020 and December 31, 2019 , respectively, related to the net investment hedges. The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Quarter Ended March 28, March 30, Gain (Loss) Recognized in Income Foreign exchange contracts $ 4,493 $ 3,489 Interest rate swaps (1,529 ) (319 ) Total $ 2,964 $ 3,170 Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax Foreign exchange contracts $ 16,100 $ 5,953 Interest rate swaps (29,556 ) — Total $ (13,456 ) $ 5,953 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 | 3 Months Ended |
Mar. 28, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring, Integration and Other Charges [Text Block] | Restructuring, Integration, and Other Charges Restructuring initiatives are due to the company’s continued efforts to lower cost and drive operational efficiency. Integration costs are primarily related to the integration of acquired businesses within the company’s pre-existing business and the consolidation of certain operations. The following table presents the components of the restructuring, integration, and other charges: Quarter Ended March 28, March 30, Restructuring and integration charges - current period actions $ 3,705 $ 3,007 Restructuring and integration charges (credits) - actions taken in prior periods 1,521 (61 ) Other charges 3,912 8,714 $ 9,138 $ 11,660 Restructuring and Integration Accrual Summary The restructuring and integration accrual was $9,916 and $9,667 at March 28, 2020 and December 31, 2019 , respectively. During the three months ended March 28, 2020 , the company made $4,163 of payments related to restructuring and integration accruals. Substantially all amounts accrued at March 28, 2020 , and all restructuring and integration charges for the three months ending March 28, 2020 , relate to the termination of personnel and are expected to be spent in cash within two years . Other Charges Included in restructuring, integration, and other charges for the first quarter of 2020 are other expenses of $3,912 . The following items were included in other charges and credits recorded to restructuring, integration, and other charges for the three months ended March 28, 2020 : • personnel charges for the first quarter of $2,439 related to the operating expense reduction program previously disclosed on July 15, 2019. The accrual related to the operating expense reduction program was $20,554 at March 28, 2020 , and all accrued amounts are expected to be paid within five years . Included in restructuring, integration, and other charges for the first quarter of 2019 are other expenses of $8,714 . The following items were included in other charges and credits recorded to restructuring, integration, and other charges for the three months ended March 30, 2019 : • acquisition-related charges for the first quarter of $1,022 related to professional and other fees directly related to recent acquisition activity as well as contingent consideration for acquisitions completed in prior years; and • $5,559 in charges related to relocation and other centralization efforts to maximize operating efficiencies. |
Net Income per Share
Net Income per Share | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Net Income 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 March 28, March 30, Net income attributable to shareholders $ 49,503 $ 140,735 Weighted-average shares outstanding - basic 80,407 85,400 Net effect of various dilutive stock-based compensation awards 701 919 Weighted-average shares outstanding - diluted $ 81,108 $ 86,319 Net income per share: Basic $ 0.62 $ 1.65 Diluted (a) $ 0.61 $ 1.63 (a) Stock-based compensation awards for the issuance of 1,307 and 903 shares for the first quarter of 2020 and 2019 , 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 |
Mar. 28, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Stockholders' Equity Note Disclosure [Text Block] | Shareholders’ Equity Accumulated Other Comprehensive Loss The following table presents the changes in Accumulated other comprehensive loss, excluding noncontrolling interests: Quarter Ended March 28, March 30, Foreign Currency Translation Adjustment and Other: Other comprehensive gain (loss) before reclassifications (a) $ (77,207 ) $ 5,276 Amounts reclassified into income 106 (186 ) Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications 17,647 6,592 Amounts reclassified into income (1,670 ) (1,059 ) Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive loss before reclassifications (29,556 ) — Amounts reclassified into income 1,159 240 Employee Benefit Plan Items, Net: Amounts reclassified into income 2,248 319 Net change in Accumulated other comprehensive income (loss) $ (87,273 ) $ 11,182 (a) Includes intra-entity foreign currency transactions that are of a long-term investment nature of $9,317 and $9,859 for the first quarter of 2020 and 2019 , respectively. Share-Repurchase Program The following table shows the company’s Board of Directors (the “Board”) approved share-repurchase programs as of March 28, 2020 : Month of Board Approval Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate Dollar Value of Shares that May Yet be Purchased Under the Program December 2016 $ 400,000 $ 400,000 $ — December 2018 600,000 411,574 188,426 Total $ 1,000,000 $ 811,574 $ 188,426 |
Contingencies
Contingencies | 3 Months Ended |
Mar. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies [Text Block] | Contingencies Environmental Matters In connection with the purchase of Wyle Electronics ("Wyle") in August 2000, the company acquired certain of the then outstanding obligations of Wyle, including Wyle's indemnification obligations to the purchasers of its Wyle Laboratories division for environmental clean-up costs associated with any then existing contamination or violation of environmental regulations. Under the terms of the company's purchase of Wyle from the sellers, the sellers agreed to indemnify the company for certain costs associated with the Wyle environmental obligations, among other things. In 2012, the company entered into a settlement agreement with the sellers pursuant to which the sellers paid $110,000 and the company released the sellers from their indemnification obligation. As part of the settlement agreement the company accepted responsibility for any potential subsequent costs incurred related to the Wyle matters. The company is aware of two Wyle Laboratories facilities (in Huntsville, Alabama and Norco, California) at which contaminated groundwater was identified and will require environmental remediation. In addition, the company was named as a defendant in several lawsuits related to the Norco facility and a third site in El Segundo, California which have now been settled to the satisfaction of the parties. The company expects these environmental liabilities to be resolved over an extended period of time. Costs are recorded for environmental matters when it is probable that a liability has been incurred and the amount of the liability can be reasonably estimated. Accruals for environmental liabilities are adjusted periodically as facts and circumstances change, assessment and remediation efforts progress, or as additional technical or legal information becomes available. Environmental liabilities are difficult to assess and estimate due to various unknown factors such as the timing and extent of remediation, improvements in remediation technologies, and the extent to which environmental laws and regulations may change in the future. Accordingly, the company cannot presently estimate the ultimate potential costs related to these sites until such time as a substantial portion of the investigation at the sites is completed and remedial action plans are developed and, in some instances, implemented. To the extent that future environmental costs exceed amounts currently accrued by the company, net income would be adversely impacted and such impact could be material. Accruals for environmental liabilities are included in “Accrued expenses” and “Other liabilities” in the company’s consolidated balance sheets. The company has determined that there is no amount within the environmental liability range that is a better estimate than any other amount, and therefore has recorded the accruals at the minimum amount of the ranges. As successor-in-interest to Wyle, the company is the beneficiary of various Wyle insurance policies that covered liabilities arising out of operations at Norco and Huntsville. To date, the company has recovered approximately $37,000 from certain insurance carriers relating to environmental clean-up matters at the Norco site. The company is considering the best way to pursue its potential claims against insurers regarding liabilities arising out of operations at Huntsville. The resolution of these matters will likely take several years. The company has not recorded a receivable for any potential future insurance recoveries related to the Norco and Huntsville environmental matters, as the realization of the claims for recovery are not deemed probable at this time. Environmental Matters - Huntsville In February 2015, the company and the Alabama Department of Environmental Management (“ADEM”) finalized and executed a consent decree in connection with the Huntsville, Alabama site. Characterization of the extent of contaminated soil and groundwater is complete and has been approved by ADEM. Health-risk evaluations and a Corrective Action Development Plan were approved by ADEM in 2018, opening the way for pilot testing of on-site remediation in late 2019. Pilot testing is currently underway. Approximately $6,900 was spent to date and the company currently anticipates no additional investigative and related expenditures. The cost of subsequent remediation at the site is estimated to be between $3,500 and $10,000 . Despite the amount of work undertaken and planned to date, the company is unable to estimate any potential costs in addition to those discussed above because the complete scope of the work is not yet known, and, accordingly, the associated costs have yet to be determined. Environmental Matters - Norco In October 2003, the company entered into a consent decree with Wyle Laboratories and the California Department of Toxic Substance Control (the “DTSC”) in connection with the Norco site. Subsequent to the decree, a Remedial Investigation Work Plan was approved by DTSC in April 2005, the required investigations were performed, and a final Remedial Investigation Report was submitted early in 2008. In 2008, a hydraulic containment system (“HCS”) was installed as an interim remedial measure to capture and treat groundwater before it moves into the adjacent off-site area. In September 2013, the DTSC approved the final Remedial Action Plan (“RAP”) for actions in five on-site areas and one off-site area. As of 2018, the remediation measures described in the RAP had been implemented and were being monitored. A Five Year Review (“FYR”) of the HCS submitted to DTSC in December 2016 found that while significant progress was made in on-site and off-site groundwater remediation, contaminants were not sufficiently reduced in a key off-site area identified in the RAP. This exception triggered the need for additional off-site remediation that began in 2018 and was completed in mid-2019. Routine progress monitoring of groundwater and soil gas continue on-site and off-site. Approximately $74,300 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 $7,400 to $18,300 . 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”), conducted an internal investigation and terminated or disciplined the employees involved. The company has cooperated fully and intends to continue to cooperate fully with OFAC and BIS with respect to their review, which may result in the imposition of penalties, which we are currently not able to estimate. During the first quarter, 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. From time to time, in the normal course of business, the company may become liable with respect to other pending and threatened litigation, environmental, regulatory, labor, product, and tax matters. While such matters are subject to inherent uncertainties, it is not currently anticipated that any such matters will materially impact the company’s consolidated financial position, liquidity, or results of operations. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Mar. 28, 2020 | |
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, by segment by geographic area, are as follows: Quarter Ended March 28, March 30, Components: Americas $ 1,552,798 $ 1,907,029 EMEA (a) 1,309,990 1,503,366 Asia/Pacific 1,687,813 1,781,532 Global components $ 4,550,601 $ 5,191,927 ECS: Americas $ 1,128,688 $ 1,200,907 EMEA (a) 702,128 763,157 Global ECS $ 1,830,816 $ 1,964,064 Consolidated (b) $ 6,381,417 $ 7,155,991 (a) Defined as Europe, the Middle East, and Africa. (b) Includes sales related to the United States of $2,412,087 and $2,782,035 for the first quarter of 2020 and 2019 , respectively. Operating income (loss), by segment, are as follows: Quarter Ended March 28, March 30, Operating income (loss): Global components $ 164,767 $ 234,532 Global ECS (d) 42,433 86,718 Corporate (c) (68,896 ) (75,690 ) Consolidated $ 138,304 $ 245,560 (c) Includes restructuring, integration, and other charges of $9,138 and $11,660 for the first quarter of 2020 and 2019 , respectively. Also included in the first quarter of 2019 was a net loss on disposition of businesses of $866 . (d) 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. Total assets, by segment, is as follows: March 28, December 31, Global components $ 10,157,804 $ 10,253,006 Global ECS 4,577,125 5,479,919 Corporate 656,531 667,871 Consolidated $ 15,391,460 $ 16,400,796 Net property, plant, and equipment, by geographic area, is as follows: March 28, December 31, Americas (e) $ 582,770 $ 594,357 EMEA 167,223 157,550 Asia/Pacific 53,429 51,203 Consolidated $ 803,422 $ 803,110 (e) Includes net property, plant, and equipment related to the United States of $580,429 and $591,818 at March 28, 2020 and December 31, 2019 , respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for Credit Losses Policy [Policy Text Block] | Trade accounts and notes receivable are reported at amortized cost, net of the allowance for credit losses in the consolidated balance sheets. The allowance for credit losses is a valuation account that is deducted from the receivables' amortized cost basis to present the net amount expected to be collected. Receivables are written off against the allowance when management believes the receivable balance is confirmed to be uncollectible. Management estimates the allowance for credit losses using relevant available information about expected credit losses and an age-based reserve model. Inputs to the model include information about historical credit losses, customer credit ratings, past events, current conditions, and reasonable and supportable forecasts. Adjustments to historical loss information are made for differences in current receivable-specific risk characteristics such as changes in environmental conditions, economic and industry changes, or other relevant factors. Expected credit losses are estimated on a collective (pool) basis, when similar risk characteristics exist, based on customer credit ratings, which include both externally acquired as well as internally determined credit ratings. Receivables that do not share risk characteristics are evaluated on an individual basis. |
Basis of Accounting Policy | The accompanying consolidated financial statements of Arrow Electronics, Inc. (the "company") were prepared in accordance with accounting principles generally accepted in the United States ("GAAP") and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year. These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2019 , as filed in the company’s Annual Report on Form 10-K. |
Fiscal Period Policy | The company operates on a quarterly calendar that closes on the Saturday closest to the end of the calendar quarter, except for the fourth quarter, which closes on December 31, 2020. |
Goodwill and Intangible Assets Policy | Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. |
Fair Value of Debt Policy | The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 6.00% notes due April 2020, 5.125% notes due March 2021, North American asset securitization program, commercial paper, and other obligations approximate their fair value. |
Fair Value of Financial Instruments Policy | Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The company utilizes a fair value hierarchy, which maximizes the use of observable inputs and minimizes the use of unobservable inputs when measuring fair value. The fair value hierarchy has three levels of inputs that may be used to measure fair value: Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 Quoted prices in markets that are not active; or other inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill of companies acquired | Goodwill of companies acquired, allocated to the company’s business segments, is as follows: Global Components Global ECS Total Balance as of December 31, 2019 (a) $ 883,496 $ 1,177,826 $ 2,061,322 Foreign currency translation adjustment (2,418 ) (14,006 ) (16,424 ) Balance as of March 28, 2020 (a) $ 881,078 $ 1,163,820 $ 2,044,898 (a) The total carrying value of goodwill as of March 28, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
Schedule of Intangible assets, net | Intangible assets, net, are comprised of the following as of March 28, 2020 : Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 11 years $ 351,092 $ (153,741 ) $ 197,351 Amortizable trade name 8 years 76,407 (12,803 ) 63,604 $ 427,499 $ (166,544 ) $ 260,955 Intangible assets, net, are comprised of the following as of December 31, 2019 : Weighted-Average Life Gross Carrying Amount Accumulated Amortization Net Customer relationships 12 years $ 354,305 $ (148,632 ) $ 205,673 Amortizable trade name 8 years 76,407 (10,177 ) 66,230 $ 430,712 $ (158,809 ) $ 271,903 |
Investments in Affiliated Com_2
Investments in Affiliated Companies (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments [Table Text Block] | The following table presents the company’s investment in affiliated companies: March 28, December 31, Marubun/Arrow $ 71,646 $ 76,574 Other 8,691 10,368 $ 80,337 $ 86,942 |
Equity in Earnings of Affiliated Companies | The equity in earnings (losses) of affiliated companies consists of the following: Quarter Ended March 28, March 30, Marubun/Arrow $ 445 $ 1,226 Other 85 (2,693 ) $ 530 $ (1,467 ) |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Text Block] | Accounts receivable, net, consists of the following: March 28, December 31, Accounts receivable $ 7,930,947 $ 8,552,120 Allowances for doubtful accounts (113,928 ) (69,433 ) $ 7,817,019 $ 8,482,687 The company has notes receivable with certain customers, which are included in “Accounts receivable, net” in the company’s consolidated balance sheets. Allowances for doubtful accounts consists of the following: Balance at December 31, 2019 $ 69,433 Effect of adoption of ASU No. 2016-13 (Note B) 47,011 Charged to income 12,539 Translation Adjustments (1,869 ) Writeoffs (13,186 ) Balance at March 28, 2020 $ 113,928 |
ST Debt (Tables)
ST Debt (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
ST Debt [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | Short-term borrowings, including current portion of long-term debt, consists of the following: March 28, December 31, 6.00% notes, due April 2020 $ 209,366 $ 209,322 5.125% notes, due March 2021 130,727 — Borrowings on lines of credit — 60,000 Other short-term borrowings 37,084 62,109 $ 377,177 $ 331,431 |
LT Debt (Tables)
LT Debt (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Schedule of Long-term Debt Instruments [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Long-term debt consists of the following: March 28, December 31, Revolving credit facility $ 122,500 $ 10,000 North American Asset securitization program — 400,000 5.125% notes, due 2021 — 130,691 3.50% notes, due 2022 348,292 348,088 4.50% notes, due 2023 298,284 298,148 3.25% notes, due 2024 495,289 495,045 4.00% notes, due 2025 346,523 346,368 7.50% senior debentures, due 2027 109,878 109,857 3.875% notes, due 2028 494,789 494,648 Other obligations with various interest rates and due dates 7,234 7,284 $ 2,222,789 $ 2,640,129 |
Schedule of Fair Value of Debt [Text Block] | The estimated fair market value of long-term debt, using quoted market prices, is as follows: March 28, December 31, 3.50% notes, due 2022 $ 363,000 $ 358,500 4.50% notes, due 2023 324,500 316,000 3.25% notes, due 2024 462,000 515,500 4.00% notes, due 2025 375,000 367,000 7.50% senior debentures, due 2027 125,500 135,000 3.875% notes, due 2028 496,000 516,500 |
Financial Instruments Measure_2
Financial Instruments Measured at Fair Value (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Fair Value Disclosures | |
Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis Table [Text Block] | The following table presents assets (liabilities) measured at fair value on a recurring basis at March 28, 2020 : Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ other assets $ 18,169 $ — $ — $ 18,169 Equity investments (b) Other assets 32,888 — — 32,888 Interest rate swaps Other liabilities — (50,530 ) — (50,530 ) Foreign exchange contracts Other current assets/ other assets — 51,188 — 51,188 Foreign exchange contracts Accrued expenses — (7,398 ) — (7,398 ) $ 51,057 $ (6,740 ) $ — $ 44,317 The following table presents assets (liabilities) measured at fair value on a recurring basis at December 31, 2019 : Balance Sheet Level 1 Level 2 Level 3 Total Cash equivalents (a) Cash and cash equivalents/ other assets $ 18,579 $ — $ — $ 18,579 Equity investments (b) Other assets 44,677 — — 44,677 Interest rate swaps Other liabilities — (11,574 ) — (11,574 ) Foreign exchange contracts Other current assets/ other assets — 24,092 — 24,092 Foreign exchange contracts Accrued expenses — (2,132 ) — (2,132 ) $ 63,256 $ 10,386 $ — $ 73,642 (a) Cash equivalents include highly liquid investments with an original maturity of less than three months. (b) The company has an 8.4% equity ownership interest in Marubun Corporation and a portfolio of mutual funds with quoted market prices. The company recorded an unrealized loss of $9,995 and an unrealized gain of $1,824 for the first quarter of 2020 and 2019, respectively, on equity securities held at the end of the quarter. |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block] | The effects of derivative instruments on the company’s consolidated statements of operations and other comprehensive income are as follows: Quarter Ended March 28, March 30, Gain (Loss) Recognized in Income Foreign exchange contracts $ 4,493 $ 3,489 Interest rate swaps (1,529 ) (319 ) Total $ 2,964 $ 3,170 Gain (Loss) Recognized in Other Comprehensive Income (Loss) before reclassifications, net of tax Foreign exchange contracts $ 16,100 $ 5,953 Interest rate swaps (29,556 ) — Total $ (13,456 ) $ 5,953 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |
Fair Value Disclosures | |
Description of Derivative Hedging Instruments | During the first quarter of 2019, the company entered into a series of foreign exchange contracts to sell Euro and buy United States Dollars, with various maturity dates as noted in the table below: Maturity Date Notional Amount March 2023 EUR 50,000 September 2024 EUR 50,000 April 2025 EUR 100,000 January 2028 EUR 100,000 Total EUR 300,000 |
Restructuring, Integration, a_2
Restructuring, Integration, and Other Charges (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Restructuring Charges [Abstract] | |
Schedule of Restructuring and Related Costs [Text Block] | The following table presents the components of the restructuring, integration, and other charges: Quarter Ended March 28, March 30, Restructuring and integration charges - current period actions $ 3,705 $ 3,007 Restructuring and integration charges (credits) - actions taken in prior periods 1,521 (61 ) Other charges 3,912 8,714 $ 9,138 $ 11,660 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings 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 March 28, March 30, Net income attributable to shareholders $ 49,503 $ 140,735 Weighted-average shares outstanding - basic 80,407 85,400 Net effect of various dilutive stock-based compensation awards 701 919 Weighted-average shares outstanding - diluted $ 81,108 $ 86,319 Net income per share: Basic $ 0.62 $ 1.65 Diluted (a) $ 0.61 $ 1.63 (a) Stock-based compensation awards for the issuance of 1,307 and 903 shares for the first quarter of 2020 and 2019 , 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 |
Mar. 28, 2020 | |
Changes in Components of Accumulated Other Comprehensive Income [Abstract] | |
Components of Accumulated Other Comprehensive Income [Table Text Block] | The following table presents the changes in Accumulated other comprehensive loss, excluding noncontrolling interests: Quarter Ended March 28, March 30, Foreign Currency Translation Adjustment and Other: Other comprehensive gain (loss) before reclassifications (a) $ (77,207 ) $ 5,276 Amounts reclassified into income 106 (186 ) Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net: Other comprehensive income before reclassifications 17,647 6,592 Amounts reclassified into income (1,670 ) (1,059 ) Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net: Other comprehensive loss before reclassifications (29,556 ) — Amounts reclassified into income 1,159 240 Employee Benefit Plan Items, Net: Amounts reclassified into income 2,248 319 Net change in Accumulated other comprehensive income (loss) $ (87,273 ) $ 11,182 (a) Includes intra-entity foreign currency transactions that are of a long-term investment nature of $9,317 and $9,859 for the first quarter of 2020 and 2019 , 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 March 28, 2020 : Month of Board Approval Dollar Value Approved for Repurchase Dollar Value of Shares Repurchased Approximate Dollar Value of Shares that May Yet be Purchased Under the Program December 2016 $ 400,000 $ 400,000 $ — December 2018 600,000 411,574 188,426 Total $ 1,000,000 $ 811,574 $ 188,426 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Mar. 28, 2020 | |
Segment Reporting Information [Line Items] | |
Schedule of Segment Reporting Information, by Segment [Text Block] | Sales, by segment by geographic area, are as follows: Quarter Ended March 28, March 30, Components: Americas $ 1,552,798 $ 1,907,029 EMEA (a) 1,309,990 1,503,366 Asia/Pacific 1,687,813 1,781,532 Global components $ 4,550,601 $ 5,191,927 ECS: Americas $ 1,128,688 $ 1,200,907 EMEA (a) 702,128 763,157 Global ECS $ 1,830,816 $ 1,964,064 Consolidated (b) $ 6,381,417 $ 7,155,991 (a) Defined as Europe, the Middle East, and Africa. (b) Includes sales related to the United States of $2,412,087 and $2,782,035 for the first quarter of 2020 and 2019 , respectively. Operating income (loss), by segment, are as follows: Quarter Ended March 28, March 30, Operating income (loss): Global components $ 164,767 $ 234,532 Global ECS (d) 42,433 86,718 Corporate (c) (68,896 ) (75,690 ) Consolidated $ 138,304 $ 245,560 (c) Includes restructuring, integration, and other charges of $9,138 and $11,660 for the first quarter of 2020 and 2019 , respectively. Also included in the first quarter of 2019 was a net loss on disposition of businesses of $866 . |
Reconciliation of Assets from Segment to Consolidated [Text Block] | Total assets, by segment, is as follows: March 28, December 31, Global components $ 10,157,804 $ 10,253,006 Global ECS 4,577,125 5,479,919 Corporate 656,531 667,871 Consolidated $ 15,391,460 $ 16,400,796 |
Disclosure on Geographic Areas, Long-Lived Assets | Net property, plant, and equipment, by geographic area, is as follows: March 28, December 31, Americas (e) $ 582,770 $ 594,357 EMEA 167,223 157,550 Asia/Pacific 53,429 51,203 Consolidated $ 803,422 $ 803,110 (e) Includes net property, plant, and equipment related to the United States of $580,429 and $591,818 at March 28, 2020 and December 31, 2019 , respectively. |
Impact of Recently Issued Acc_2
Impact of Recently Issued Accounting Standards Impact of Recently Issued Accounting Standards (Details) $ in Thousands | 3 Months Ended |
Mar. 28, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, before Tax | $ 47,011 |
Cumulative Effect on Retained Earnings, net of Tax | 35,935 |
Retained Earnings | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, net of Tax | $ 35,935 |
Goodwill (Details)
Goodwill (Details) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020USD ($) | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2019 | $ 2,061,322 | [1] |
Foreign currency translation adjustment | (16,424) | |
Balance as of March 28, 2020 | 2,044,898 | [1] |
Accumulated impairment charges | 1,588,955 | |
Global Components | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2019 | 883,496 | [1] |
Foreign currency translation adjustment | (2,418) | |
Balance as of March 28, 2020 | 881,078 | [1] |
Accumulated impairment charges | 1,287,100 | |
Global ECS | ||
Goodwill [Roll Forward] | ||
Balance as of December 31, 2019 | 1,177,826 | [1] |
Foreign currency translation adjustment | (14,006) | |
Balance as of March 28, 2020 | 1,163,820 | [1] |
Accumulated impairment charges | $ 301,855 | |
eInfochips | ||
Goodwill [Roll Forward] | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 2.00% | |
Americas | Global Components | ||
Goodwill [Roll Forward] | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 4.00% | |
[1] | The total carrying value of goodwill as of March 28, 2020 and December 31, 2019 in the table above is reflected net of $1,588,955 of accumulated impairment charges, of which $1,287,100 was recorded in the global components business segment and $301,855 was recorded in the global enterprise computing solutions ("ECS") business segment. |
Goodwill - Intangibles (Details
Goodwill - Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 427,499 | $ 430,712 | |
Accumulated Amortization | (166,544) | (158,809) | |
Net | 260,955 | $ 271,903 | |
Amortization of Intangible Assets | $ 9,955 | $ 11,930 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Life | 11 years | 12 years | |
Gross Carrying Amount | $ 351,092 | $ 354,305 | |
Accumulated Amortization | (153,741) | (148,632) | |
Net | $ 197,351 | $ 205,673 | |
Amortizable trade name | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-Average Life | 8 years | 8 years | |
Gross Carrying Amount | $ 76,407 | $ 76,407 | |
Accumulated Amortization | (12,803) | (10,177) | |
Net | $ 63,604 | $ 66,230 |
Investments in Affiliated Com_3
Investments in Affiliated Companies (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Investments in affiliated companies | $ 80,337 | $ 86,942 | |
Equity in earnings (losses) of affiliated companies | 530 | $ (1,467) | |
Equity Method Investment Pro Rata Share of Debt Obligations of Joint Venture | 6,000 | 1,700 | |
Marubun Arrow [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in affiliated companies | 71,646 | 76,574 | |
Equity in earnings (losses) of affiliated companies | $ 445 | 1,226 | |
Equity Method Investment, Ownership Percentage | 50.00% | ||
Other joint ventures [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Investments in affiliated companies | $ 8,691 | $ 10,368 | |
Equity in earnings (losses) of affiliated companies | $ 85 | $ (2,693) | |
Equity Method Investment, Ownership Percentage | 50.00% |
Accounts Receivable (Details)
Accounts Receivable (Details) € in Thousands, $ in Thousands | 3 Months Ended | |||
Mar. 28, 2020USD ($) | Mar. 28, 2020EUR (€) | Mar. 28, 2020USD ($) | Dec. 31, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accounts receivable | $ 7,930,947 | $ 8,552,120 | ||
Allowances for doubtful accounts | $ (69,433) | (113,928) | (69,433) | |
Accounts receivable, net | 7,817,019 | $ 8,482,687 | ||
Agreement Amount with Purchaser to Transfer Financial Assets Accounted For As Sales | € | € 400,000 | |||
Transfer of Financial Assets Accounted for as Sales, Amount Derecognized | 488,721 | 528,453 | ||
Transfer of Financial Assets Accounted for as Sales, Cash Proceeds Received for Assets Derecognized, Amount | 346,709 | 382,089 | ||
Pledged Assets Separately Reported, Finance Receivables Pledged as Collateral, at Fair Value | € 155,212 | $ 170,961 | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at December 31, 2019 | 69,433 | |||
Effect of adoption of ASU No. 2016-13 (Note B) | 47,011 | |||
Charged to income | 12,539 | |||
Translation adjustments | (1,869) | |||
Writeoffs | (13,186) | |||
Balance at March 28, 2020 | $ 113,928 |
Debt - ST Debt (Details)
Debt - ST Debt (Details) - USD ($) $ in Thousands | Mar. 28, 2020 | Dec. 31, 2019 |
Short-term Debt [Line Items] | ||
Debt, Current | $ 377,177 | $ 331,431 |
6.00% notes, due April 2020 | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 209,366 | 209,322 |
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |
Borrowings on lines of credit | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 0 | $ 60,000 |
Line of Credit Facility, Maximum Borrowing Capacity | $ 200,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.48% | 2.61% |
Commercial paper | ||
Short-term Debt [Line Items] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 1,200,000 | |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.01% | 2.24% |
Short-term borrowings in various countries | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 37,084 | $ 62,109 |
Short-term Debt, Weighted Average Interest Rate, at Point in Time | 2.41% | 2.76% |
5.125% notes, due 2021 | ||
Short-term Debt [Line Items] | ||
Debt, Current | $ 130,727 | $ 0 |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% |
Debt - LT Debt (Details)
Debt - LT Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,222,789 | $ 2,640,129 | |
Accounts receivable, net | 7,817,019 | 8,482,687 | |
Interest and dividend income | 9,965 | $ 14,045 | |
Revolving credit facility | |||
Debt Instrument [Line Items] | |||
Long-term debt | 122,500 | 10,000 | |
Maximum Borrowing Capacity | $ 2,000,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.27% | ||
Debt Instrument, Basis Spread on Variable Rate | 1.18% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.20% | ||
North American Asset securitization program | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 400,000 | |
Maximum Borrowing Capacity | $ 1,200,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 1.37% | ||
Debt Instrument, Basis Spread on Variable Rate | 0.40% | ||
Line of Credit Facility, Commitment Fee Percentage | 0.40% | ||
Accounts receivable, net | $ 2,099,700 | 2,217,800 | |
5.125% notes, due 2021 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 0 | 130,691 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.125% | ||
3.50% notes, due 2022 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 348,292 | 348,088 | |
Debt Instrument, Fair Value Disclosure | $ 363,000 | 358,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | ||
4.50% notes, due 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 298,284 | 298,148 | |
Debt Instrument, Fair Value Disclosure | $ 324,500 | 316,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | ||
3.25% notes, due 2024 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 495,289 | 495,045 | |
Debt Instrument, Fair Value Disclosure | $ 462,000 | 515,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.25% | ||
4.00% notes, due 2025 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 346,523 | 346,368 | |
Debt Instrument, Fair Value Disclosure | $ 375,000 | 367,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | ||
7.50% senior debentures, due 2027 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 109,878 | 109,857 | |
Debt Instrument, Fair Value Disclosure | $ 125,500 | 135,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 7.50% | ||
3.875% notes, due 2028 | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 494,789 | 494,648 | |
Debt Instrument, Fair Value Disclosure | $ 496,000 | 516,500 | |
Debt Instrument, Interest Rate, Stated Percentage | 3.875% | ||
Other obligations with various interest rates and due dates | |||
Debt Instrument [Line Items] | |||
Other Notes Payable, Noncurrent | $ 7,234 | $ 7,284 | |
6.00% notes, due April 2020 | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% |
Financial Instruments Measure_3
Financial Instruments Measured at Fair Value - Fair Value Hierarchy (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Unrealized Gain on Securities | $ 1,824 | |||
Unrealized Loss on Securities | $ 9,995 | |||
Fair Value, Recurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | 18,169 | $ 18,579 | ||
Equity investments | 32,888 | 44,677 | ||
Interest rate swaps- liability | (50,530) | (11,574) | ||
Foreign exchange contracts - asset | 51,188 | 24,092 | ||
Foreign exchange contracts - liability | (7,398) | (2,132) | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 44,317 | 73,642 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | [1] | 18,169 | 18,579 | |
Equity investments | [2] | 32,888 | 44,677 | |
Interest rate swaps- liability | 0 | 0 | ||
Foreign exchange contracts - asset | 0 | 0 | ||
Foreign exchange contracts - liability | 0 | 0 | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | 51,057 | 63,256 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Interest rate swaps- liability | (50,530) | (11,574) | ||
Foreign exchange contracts - asset | 51,188 | 24,092 | ||
Foreign exchange contracts - liability | (7,398) | (2,132) | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | (6,740) | 10,386 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Equity investments | 0 | 0 | ||
Interest rate swaps- liability | 0 | 0 | ||
Foreign exchange contracts - asset | 0 | 0 | ||
Foreign exchange contracts - liability | 0 | 0 | ||
Total Fair Value Assets And Liabilities Measured On Recurring Basis | $ 0 | $ 0 | ||
Marubun [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investment Ownership Percentage | 8.40% | |||
[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 loss of $9,995 and an unrealized gain of $1,824 for the first quarter of 2020 and 2019, respectively, on equity securities held at the end of the quarter. |
Financial Instruments Measure_4
Financial Instruments Measured at Fair Value - Derivatives (Details) € in Thousands, $ in Thousands | 3 Months Ended | ||||
Mar. 28, 2020USD ($) | Mar. 30, 2019USD ($) | Mar. 28, 2020EUR (€) | Mar. 28, 2020USD ($) | Dec. 31, 2019USD ($) | |
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | $ 891,291 | $ 929,966 | |||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | $ 15,977 | $ 5,533 | |||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), before Adjustments, after Tax | 17,994 | 1,142 | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 2,964 | 3,170 | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | (13,456) | 5,953 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (28,397) | 240 | |||
Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | (1,529) | (319) | |||
Foreign Exchange Contract [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 4,493 | 3,489 | |||
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | 16,100 | 5,953 | |||
Net Investment Hedging [Member] | Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivatives used in Net Investment Hedge, Net of Tax, Period Increase (Decrease) | 17,647 | 6,592 | |||
Derivative, Excluded Component, Gain (Loss), Recognized in Earnings | 2,201 | 1,406 | |||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | 44,979 | 21,718 | |||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Before Tax | (1,194) | ||||
Derivative Instruments in Hedges, Net Investment in Foreign Operations, Assets, Fair Value, Net | (50,522) | $ (11,563) | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (29,556) | ||||
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income, Effective Portion, Net | $ (29,556) | $ 0 | |||
Maturity March 2023 [Member] | Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | € | € 50,000 | ||||
Maturity September 2024 [Member] | Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | € | 50,000 | ||||
Maturity April 2025 [Member] | Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | € | 100,000 | ||||
Maturity January 2028 [Member] | Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | € | 100,000 | ||||
All Maturities [Member] | Foreign Exchange Forward [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | € | € 300,000 | ||||
Interest rate CF hedge 2024 swaps [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 0.97% | 0.97% | |||
Interest rate CF hedge June 2020 swaps [Member] | Cash Flow Hedging [Member] | Interest Rate Swap [Member] | |||||
Derivatives, Fair Value [Line Items] | |||||
Derivative, Notional Amount | $ 300,000 | ||||
Derivative, Average Fixed Interest Rate | 2.33% | 2.33% |
Restructuring, Integration, a_3
Restructuring, Integration, and Other Charges (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 28, 2020 | Mar. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Other charges | $ 3,912 | $ 8,714 |
Restructuring, integration, and other charges | 9,138 | 11,660 |
Acquisition-related charges | 1,022 | |
Relocation and other centralization charges | 5,559 | |
Restructuring Charges From Current Period [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration charges (credits) | 3,705 | 3,007 |
Restructuring Charges From Prior Periods [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and integration charges (credits) | 1,521 | $ (61) |
Expense reduction program | Personnel charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Other charges | $ 2,439 |
Restructuring, Integration, a_4
Restructuring, Integration, and Other Charges - Accrual (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and integration accrual | $ 9,916 | $ 9,667 | |
Payments for restructuring and integration | (4,163) | ||
Accrued expenses | $ 873,668 | $ 880,507 | |
Number of Years for the Accrual to Be Spent | 2 years | ||
Restructuring Charges From Current Period [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and integration charges (credits) | $ 3,705 | $ 3,007 | |
Restructuring Charges From Prior Periods [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and integration charges (credits) | 1,521 | $ (61) | |
Expense reduction program | Personnel charges | |||
Restructuring Cost and Reserve [Line Items] | |||
Accrued expenses | $ 20,554 | ||
Number of Years for the Accrual to Be Spent | 5 years |
Net Income per Share (Details)
Net Income per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Mar. 28, 2020 | Mar. 30, 2019 | ||
Earnings Per Share, Diluted [Line Items] | |||
Net income attributable to shareholders | $ 49,503 | $ 140,735 | |
Weighted-average shares outstanding - basic | 80,407 | 85,400 | |
Net effect of various dilutive stock-based compensation awards | 701 | 919 | |
Weighted-average shares outstanding - diluted | 81,108 | 86,319 | |
Net income per share: | |||
Basic | $ 0.62 | $ 1.65 | |
Diluted | [1] | $ 0.61 | $ 1.63 |
Share-based Payment Arrangement [Member] | |||
Net income per share: | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,307 | 903 | |
[1] | Stock-based compensation awards for the issuance of 1,307 and 903 shares for the first quarter of 2020 and 2019 , 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 | ||
Mar. 28, 2020 | Mar. 30, 2019 | ||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other | $ (77,343) | $ 4,442 | |
Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | 15,977 | 5,533 | |
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net | (28,397) | 240 | |
Employee Benefit Plan Items, Net | 2,248 | 319 | |
Net change in Accumulated other comprehensive income (loss) | (87,273) | 11,182 | |
Other comprehensive income before reclassifications [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other | [1] | (77,207) | 5,276 |
Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | 17,647 | 6,592 | |
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net | (29,556) | 0 | |
Other comprehensive income before reclassifications [Member] | Intra-entity foreign currency transactions [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other | 9,317 | 9,859 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Changes In Components Of OCI [Line Items] | |||
Foreign Currency Translation Adjustment and Other | 106 | (186) | |
Unrealized Gain (Loss) on Foreign Exchange Contracts Designated as Net Investment Hedges, Net | (1,670) | (1,059) | |
Unrealized Gain (Loss) on Interest Rate Swaps Designated as Cash Flow Hedges, Net | 1,159 | 240 | |
Employee Benefit Plan Items, Net | $ 2,248 | $ 319 | |
[1] | Includes intra-entity foreign currency transactions that are of a long-term investment nature of $9,317 and $9,859 for the first quarter of 2020 and 2019 , respectively. |
Shareholders' Equity Share-Repu
Shareholders' Equity Share-Repurchase Programs (Details) $ in Thousands | Mar. 28, 2020USD ($) |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 1,000,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 811,574 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 188,426 |
Shares Approved December 2016 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | 400,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 400,000 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 0 |
Shares Approved December 2018 [Member] | |
Share-Repurchase Programs [Line Items] | |
Stock Repurchase Program, Authorized Amount | 600,000 |
Stock Repurchase Program, Dollar Value of Shares Repurchased | 411,574 |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 188,426 |
Contingencies (Details)
Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 28, 2020 | Mar. 31, 2012 | Dec. 31, 2019 | |
Site Contingency [Line Items] | |||
Litigation Settlement, Amount | $ 110,000 | ||
Environmental Costs Recovered | $ 37,000 | ||
Sales covered by the Iran Threat Reduction and Syria Human Rights Act of 2012 | $ 4,770 | ||
Huntsville Site [Member] | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense To Date | 6,900 | ||
Additional Expected Project Expenditures Low Estimate | 3,500 | ||
Additional Expected Project Expenditures High Estimate | 10,000 | ||
Norco Site [Member] | Remediation, Project Management, Regulatory Oversight, and Investigative and Feasability Studies [Member] | |||
Site Contingency [Line Items] | |||
Environmental Remediation Expense To Date | 74,300 | ||
Additional Expected Project Expenditures Low Estimate | 7,400 | ||
Additional Expected Project Expenditures High Estimate | 18,300 | ||
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 | ||||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | |||
Sales: | |||||
Sales | [1] | $ 6,381,417 | $ 7,155,991 | ||
Operating income (loss): | |||||
Operating income (loss) | 138,304 | 245,560 | |||
Loss on disposition of businesses, net | 0 | 866 | |||
Restructuring, integration, and other charges | 9,138 | 11,660 | |||
Assets | 15,391,460 | $ 16,400,796 | |||
Global Components | |||||
Sales: | |||||
Sales | 4,550,601 | 5,191,927 | |||
Operating income (loss): | |||||
Operating income (loss) | 164,767 | 234,532 | |||
Assets | 10,157,804 | 10,253,006 | |||
Global ECS | |||||
Sales: | |||||
Sales | 1,830,816 | 1,964,064 | |||
Operating income (loss): | |||||
Operating income (loss) | 42,433 | [2] | 86,718 | ||
Assets | 4,577,125 | 5,479,919 | |||
Foreign tax and other loss contingencies | 29,858 | ||||
Corporate | |||||
Operating income (loss): | |||||
Operating income (loss) | [3] | (68,896) | (75,690) | ||
Loss on disposition of businesses, net | $ 866 | ||||
Restructuring, integration, and other charges | 9,138 | ||||
Assets | $ 656,531 | $ 667,871 | |||
[1] | Includes sales related to the United States of $2,412,087 and $2,782,035 for the first quarter of 2020 and 2019 , respectively. | ||||
[2] | Includes reserves and other adjustments of approximately $29,858 primarily related to foreign tax and other loss contingencies for the first quarter of 2020 | ||||
[3] | Includes restructuring, integration, and other charges of $9,138 and $11,660 for the first quarter of 2020 and 2019 , respectively. Also included in the first quarter of 2019 was a net loss on disposition of businesses of $866 . |
Segment and Geographic Inform_4
Segment and Geographic Information - Geographic Sales & PP&E (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 28, 2020 | Mar. 30, 2019 | Dec. 31, 2019 | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | [1] | $ 6,381,417 | $ 7,155,991 | |
Property, plant, and equipment, net | 803,422 | $ 803,110 | ||
Americas | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant, and equipment, net | [2] | 582,770 | 594,357 | |
EMEA [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant, and equipment, net | 167,223 | 157,550 | ||
Asia Pacific | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Property, plant, and equipment, net | 53,429 | 51,203 | ||
United States [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | 2,412,087 | 2,782,035 | ||
Property, plant, and equipment, net | 580,429 | $ 591,818 | ||
Global Components | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | 4,550,601 | 5,191,927 | ||
Global Components | Americas | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | 1,552,798 | 1,907,029 | ||
Global Components | EMEA [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | [3] | 1,309,990 | 1,503,366 | |
Global Components | Asia Pacific | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | 1,687,813 | 1,781,532 | ||
Global ECS | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | 1,830,816 | 1,964,064 | ||
Global ECS | Americas | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | 1,128,688 | 1,200,907 | ||
Global ECS | EMEA [Member] | ||||
Revenues From External Customers And Long Lived Assets [Line Items] | ||||
Sales | [3] | $ 702,128 | $ 763,157 | |
[1] | Includes sales related to the United States of $2,412,087 and $2,782,035 for the first quarter of 2020 and 2019 , respectively. | |||
[2] | Includes net property, plant, and equipment related to the United States of $580,429 and $591,818 at March 28, 2020 and December 31, 2019 , respectively. | |||
[3] | Defined as Europe, the Middle East, and Africa. |