0000007536--12-312023Q3ARROW ELECTRONICS, INC.false0000007536arw:SharesApprovedJanuary2023Member2023-01-310000007536arw:ExciseTaxShareRepurchasesMember2023-01-012023-09-300000007536us-gaap:TreasuryStockCommonMember2023-07-022023-09-300000007536us-gaap:CommonStockMember2023-07-022023-09-300000007536arw:CommonStockIssuedMember2023-07-022023-09-300000007536us-gaap:TreasuryStockCommonMember2023-04-022023-07-010000007536us-gaap:CommonStockMember2023-04-022023-07-010000007536arw:CommonStockIssuedMember2023-04-022023-07-010000007536us-gaap:TreasuryStockCommonMember2023-01-012023-04-010000007536us-gaap:CommonStockMember2023-01-012023-04-010000007536arw:CommonStockIssuedMember2023-01-012023-04-010000007536us-gaap:TreasuryStockCommonMember2022-07-032022-10-010000007536us-gaap:CommonStockMember2022-07-032022-10-010000007536arw:CommonStockIssuedMember2022-07-032022-10-010000007536us-gaap:TreasuryStockCommonMember2022-04-032022-07-020000007536us-gaap:CommonStockMember2022-04-032022-07-020000007536arw:CommonStockIssuedMember2022-04-032022-07-020000007536us-gaap:TreasuryStockCommonMember2022-01-012022-04-020000007536us-gaap:CommonStockMember2022-01-012022-04-020000007536arw:CommonStockIssuedMember2022-01-012022-04-020000007536us-gaap:TreasuryStockCommonMember2023-09-300000007536us-gaap:RetainedEarningsMember2023-09-300000007536us-gaap:NoncontrollingInterestMember2023-09-300000007536us-gaap:CommonStockMember2023-09-300000007536us-gaap:AdditionalPaidInCapitalMember2023-09-300000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-09-300000007536us-gaap:TreasuryStockCommonMember2023-07-010000007536us-gaap:RetainedEarningsMember2023-07-010000007536us-gaap:NoncontrollingInterestMember2023-07-010000007536us-gaap:CommonStockMember2023-07-010000007536us-gaap:AdditionalPaidInCapitalMember2023-07-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-0100000075362023-07-010000007536us-gaap:TreasuryStockCommonMember2023-04-010000007536us-gaap:RetainedEarningsMember2023-04-010000007536us-gaap:NoncontrollingInterestMember2023-04-010000007536us-gaap:CommonStockMember2023-04-010000007536us-gaap:AdditionalPaidInCapitalMember2023-04-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-0100000075362023-04-010000007536us-gaap:TreasuryStockCommonMember2022-12-310000007536us-gaap:RetainedEarningsMember2022-12-310000007536us-gaap:NoncontrollingInterestMember2022-12-310000007536us-gaap:CommonStockMember2022-12-310000007536us-gaap:AdditionalPaidInCapitalMember2022-12-310000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310000007536us-gaap:TreasuryStockCommonMember2022-10-010000007536us-gaap:RetainedEarningsMember2022-10-010000007536us-gaap:NoncontrollingInterestMember2022-10-010000007536us-gaap:CommonStockMember2022-10-010000007536us-gaap:AdditionalPaidInCapitalMember2022-10-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-10-010000007536us-gaap:TreasuryStockCommonMember2022-07-020000007536us-gaap:RetainedEarningsMember2022-07-020000007536us-gaap:NoncontrollingInterestMember2022-07-020000007536us-gaap:CommonStockMember2022-07-020000007536us-gaap:AdditionalPaidInCapitalMember2022-07-020000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-0200000075362022-07-020000007536us-gaap:TreasuryStockCommonMember2022-04-020000007536us-gaap:RetainedEarningsMember2022-04-020000007536us-gaap:NoncontrollingInterestMember2022-04-020000007536us-gaap:CommonStockMember2022-04-020000007536us-gaap:AdditionalPaidInCapitalMember2022-04-020000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-0200000075362022-04-020000007536us-gaap:TreasuryStockCommonMember2021-12-310000007536us-gaap:RetainedEarningsMember2021-12-310000007536us-gaap:NoncontrollingInterestMember2021-12-310000007536us-gaap:CommonStockMember2021-12-310000007536us-gaap:AdditionalPaidInCapitalMember2021-12-310000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000007536us-gaap:TreasuryStockCommonMember2022-07-032022-10-010000007536us-gaap:TreasuryStockCommonMember2022-04-032022-07-020000007536us-gaap:TreasuryStockCommonMember2022-01-012022-04-020000007536us-gaap:InterestRateSwapMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000007536us-gaap:ForeignExchangeContractMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalEcsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalComponentsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberarw:GlobalComponentsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalEcsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalComponentsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalEcsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalComponentsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberarw:GlobalComponentsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalEcsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalComponentsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalEcsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalComponentsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberarw:GlobalComponentsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalEcsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalComponentsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalEcsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMemberus-gaap:EMEAMemberarw:GlobalComponentsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMembersrt:AsiaPacificMemberarw:GlobalComponentsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalEcsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMembersrt:AmericasMemberarw:GlobalComponentsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMember2022-01-012022-10-010000007536arw:NotesDueIn2023Member2023-01-012023-04-010000007536arw:NotesDueIn2022Member2022-02-012022-02-280000007536us-gaap:RetainedEarningsMember2022-07-032022-10-010000007536us-gaap:RetainedEarningsMember2022-04-032022-07-020000007536us-gaap:RetainedEarningsMember2022-01-012022-04-020000007536arw:ShareRepurchaseProgramMember2023-07-022023-09-300000007536arw:ShareRepurchaseProgramMember2023-01-012023-09-300000007536us-gaap:NotesPayableOtherPayablesMember2023-09-300000007536us-gaap:NotesPayableOtherPayablesMember2022-12-310000007536us-gaap:NoncontrollingInterestMember2022-07-032022-10-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-07-032022-10-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-04-032022-07-020000007536us-gaap:NoncontrollingInterestMember2022-01-012022-04-020000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-04-020000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMemberarw:IntraEntityForeignCurrencyTransactionsMember2023-07-022023-09-300000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMemberarw:IntraEntityForeignCurrencyTransactionsMember2023-01-012023-09-300000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMemberarw:IntraEntityForeignCurrencyTransactionsMember2022-07-032022-10-010000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMemberarw:IntraEntityForeignCurrencyTransactionsMember2022-01-012022-10-010000007536us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-07-022023-09-300000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMember2023-07-022023-09-300000007536us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2023-01-012023-09-300000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMember2023-01-012023-09-300000007536us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-07-032022-10-010000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMember2022-07-032022-10-010000007536us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-10-010000007536arw:OtherComprehensiveIncomeBeforeReclassificationsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMemberarw:GlobalEcsMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMemberarw:GlobalComponentsMember2023-07-022023-09-300000007536us-gaap:CorporateMember2023-07-022023-09-300000007536us-gaap:OperatingSegmentsMemberarw:GlobalEcsMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMemberarw:GlobalComponentsMember2023-01-012023-09-300000007536us-gaap:CorporateMember2023-01-012023-09-300000007536us-gaap:OperatingSegmentsMemberarw:GlobalEcsMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMemberarw:GlobalComponentsMember2022-07-032022-10-010000007536us-gaap:CorporateMember2022-07-032022-10-010000007536us-gaap:OperatingSegmentsMemberarw:GlobalEcsMember2022-01-012022-10-010000007536us-gaap:OperatingSegmentsMemberarw:GlobalComponentsMember2022-01-012022-10-010000007536us-gaap:CorporateMember2022-01-012022-10-010000007536us-gaap:NoncontrollingInterestMember2022-04-032022-07-020000007536us-gaap:RevolvingCreditFacilityMember2023-09-300000007536us-gaap:RevolvingCreditFacilityMember2022-12-310000007536us-gaap:RevolvingCreditFacilityMember2022-12-310000007536us-gaap:LineOfCreditMember2022-12-310000007536us-gaap:LineOfCreditMember2023-09-300000007536us-gaap:LineOfCreditMember2023-05-310000007536us-gaap:LineOfCreditMember2023-04-300000007536arw:OtherJointVentureMember2023-07-022023-09-300000007536arw:MarubunArrowMember2023-07-022023-09-300000007536arw:OtherJointVentureMember2023-01-012023-09-300000007536arw:MarubunArrowMember2023-01-012023-09-300000007536arw:OtherJointVentureMember2022-07-032022-10-010000007536arw:MarubunArrowMember2022-07-032022-10-010000007536arw:OtherJointVentureMember2022-01-012022-10-010000007536arw:MarubunArrowMember2022-01-012022-10-010000007536arw:GlobalEcsMember2023-09-300000007536arw:GlobalComponentsMember2023-09-300000007536arw:GlobalEcsMember2022-12-310000007536arw:GlobalComponentsMember2022-12-3100000075362023-06-012023-06-300000007536arw:OtherJointVentureMember2022-12-310000007536arw:MarubunArrowMember2022-12-310000007536arw:OtherJointVentureMember2023-09-300000007536arw:MarubunMember2023-09-300000007536arw:MarubunArrowMember2023-09-300000007536us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-04-010000007536arw:MaturitySeptember2024Memberus-gaap:ForeignExchangeForwardMember2023-09-300000007536arw:MaturityMarch2023Memberus-gaap:ForeignExchangeForwardMember2023-09-300000007536arw:MaturityJanuary2028Memberus-gaap:ForeignExchangeForwardMember2023-09-300000007536arw:MaturityApril2025Memberus-gaap:ForeignExchangeForwardMember2023-09-300000007536arw:AllMaturitiesMemberus-gaap:ForeignExchangeForwardMember2023-09-300000007536arw:MaturitySeptember2024Memberus-gaap:ForeignExchangeForwardMember2022-12-310000007536arw:MaturityMarch2023Memberus-gaap:ForeignExchangeForwardMember2022-12-310000007536arw:MaturityJanuary2028Memberus-gaap:ForeignExchangeForwardMember2022-12-310000007536arw:MaturityApril2025Memberus-gaap:ForeignExchangeForwardMember2022-12-310000007536arw:AllMaturitiesMemberus-gaap:ForeignExchangeForwardMember2022-12-310000007536us-gaap:CashFlowHedgingMember2022-12-310000007536us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-022023-09-300000007536us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-022023-09-300000007536us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000007536us-gaap:InterestRateSwapMemberus-gaap:FairValueHedgingMember2023-09-300000007536arw:MaturityDecember2024Memberus-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-12-310000007536arw:NotesDueIn2023Member2023-09-300000007536arw:NotesDueIn2023Member2023-04-010000007536arw:NotesDueIn2023Member2022-12-310000007536arw:NotesDueIn2022Member2022-02-280000007536us-gaap:RevolvingCreditFacilityMember2023-09-300000007536arw:SeniorDebenturesDueIn2027Member2023-09-300000007536arw:NotesDueIn2032Member2023-09-300000007536arw:NotesDueIn2028Member2023-09-300000007536arw:NotesDueIn2026Member2023-09-300000007536arw:NotesDueIn2025Member2023-09-300000007536arw:SeniorDebenturesDueIn2027Member2022-12-310000007536arw:NotesDueIn2032Member2022-12-310000007536arw:NotesDueIn2028Member2022-12-310000007536arw:NotesDueIn2026Member2022-12-310000007536arw:NotesDueIn2025Member2022-12-310000007536arw:NotesDueIn2026Member2023-04-010000007536us-gaap:RevolvingCreditFacilityMember2023-01-012023-09-300000007536arw:NorthAmericanAssetSecuritizationProgramMember2023-01-012023-09-300000007536us-gaap:CommercialPaperMember2023-09-300000007536arw:NotesDueIn2024Member2023-09-300000007536arw:NotesDueIn2023Member2023-09-300000007536us-gaap:CommercialPaperMember2022-12-310000007536arw:NotesDueIn2024Member2022-12-310000007536arw:NotesDueIn2023Member2022-12-310000007536us-gaap:TreasuryStockCommonMember2023-09-300000007536us-gaap:CommonStockMember2023-09-300000007536arw:CommonStockIssuedMember2023-09-300000007536us-gaap:TreasuryStockCommonMember2023-07-010000007536us-gaap:CommonStockMember2023-07-010000007536arw:CommonStockIssuedMember2023-07-010000007536us-gaap:TreasuryStockCommonMember2023-04-010000007536us-gaap:CommonStockMember2023-04-010000007536arw:CommonStockIssuedMember2023-04-010000007536us-gaap:TreasuryStockCommonMember2022-12-310000007536us-gaap:CommonStockMember2022-12-310000007536arw:CommonStockIssuedMember2022-12-310000007536us-gaap:TreasuryStockCommonMember2022-10-010000007536us-gaap:CommonStockMember2022-10-010000007536arw:CommonStockIssuedMember2022-10-010000007536us-gaap:TreasuryStockCommonMember2022-07-020000007536us-gaap:CommonStockMember2022-07-020000007536arw:CommonStockIssuedMember2022-07-020000007536us-gaap:TreasuryStockCommonMember2022-04-020000007536us-gaap:CommonStockMember2022-04-020000007536arw:CommonStockIssuedMember2022-04-020000007536us-gaap:TreasuryStockCommonMember2021-12-310000007536us-gaap:CommonStockMember2021-12-310000007536arw:CommonStockIssuedMember2021-12-3100000075362022-10-0100000075362021-12-310000007536us-gaap:TreasuryStockCommonMember2023-07-022023-09-300000007536us-gaap:RetainedEarningsMember2023-07-022023-09-300000007536us-gaap:NoncontrollingInterestMember2023-07-022023-09-300000007536us-gaap:CommonStockMember2023-07-022023-09-300000007536us-gaap:AdditionalPaidInCapitalMember2023-07-022023-09-300000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-07-022023-09-300000007536us-gaap:TreasuryStockCommonMember2023-04-022023-07-010000007536us-gaap:RetainedEarningsMember2023-04-022023-07-010000007536us-gaap:NoncontrollingInterestMember2023-04-022023-07-010000007536us-gaap:CommonStockMember2023-04-022023-07-010000007536us-gaap:AdditionalPaidInCapitalMember2023-04-022023-07-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-022023-07-0100000075362023-04-022023-07-010000007536us-gaap:TreasuryStockCommonMember2023-01-012023-04-010000007536us-gaap:RetainedEarningsMember2023-01-012023-04-010000007536us-gaap:NoncontrollingInterestMember2023-01-012023-04-010000007536us-gaap:CommonStockMember2023-01-012023-04-010000007536us-gaap:AdditionalPaidInCapitalMember2023-01-012023-04-010000007536us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-04-0100000075362023-01-012023-04-010000007536us-gaap:AdditionalPaidInCapitalMember2022-07-032022-10-010000007536us-gaap:AdditionalPaidInCapitalMember2022-04-032022-07-0200000075362022-04-032022-07-020000007536us-gaap:AdditionalPaidInCapitalMember2022-01-012022-04-0200000075362022-01-012022-04-020000007536arw:NorthAmericanAssetSecuritizationProgramMember2023-09-300000007536arw:NorthAmericanAssetSecuritizationProgramMember2022-12-310000007536us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:AssetPledgedAsCollateralMember2023-09-300000007536us-gaap:VariableInterestEntityPrimaryBeneficiaryMemberus-gaap:AssetPledgedAsCollateralMember2022-12-3100000075362023-10-260000007536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000007536us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000007536us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-09-300000007536us-gaap:FairValueMeasurementsRecurringMember2023-09-300000007536us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000007536us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000007536us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-12-310000007536us-gaap:FairValueMeasurementsRecurringMember2022-12-310000007536arw:SharesApprovedSeptember2022Member2023-09-300000007536arw:SharesApprovedJuly2021Member2023-09-300000007536arw:SharesApprovedJanuary2023Member2023-09-300000007536arw:SharesApprovedDecember2021Member2023-09-300000007536arw:GlobalEcsMember2023-07-022023-09-300000007536arw:GlobalComponentsMember2023-07-022023-09-300000007536arw:GlobalEcsMember2023-01-012023-09-300000007536arw:GlobalComponentsMember2023-01-012023-09-300000007536us-gaap:TradeNamesMember2023-09-300000007536us-gaap:CustomerRelationshipsMember2023-09-300000007536us-gaap:TradeNamesMember2022-12-310000007536us-gaap:CustomerRelationshipsMember2022-12-3100000075362022-12-310000007536us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-07-022023-09-3000000075362023-07-022023-09-300000007536us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-300000007536us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2023-01-012023-09-3000000075362023-01-012023-09-300000007536us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-032022-10-010000007536us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-07-032022-10-0100000075362022-07-032022-10-010000007536us-gaap:InterestRateSwapMemberus-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-10-010000007536us-gaap:NetInvestmentHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-10-0100000075362022-01-012022-10-0100000075362023-09-300000007536arw:NorcoSiteMemberarw:RemediationProjectManagementRegulatoryOversightAndInvestigativeAndFeasabilityStudiesMember2023-01-012023-09-300000007536arw:HuntsvilleSiteMember2023-01-012023-09-30iso4217:USDiso4217:EURxbrli:sharesiso4217:USDxbrli:sharesxbrli:purearw:segment

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission file number 1-4482

ARROW ELECTRONICS, INC.

(Exact name of registrant as specified in its charter)

New York

    

11-1806155

(State or other jurisdiction of

(I.R.S. Employer

incorporation or organization)

Identification Number)

9201 East Dry Creek Road

    

80112

Centennial CO

(Zip Code)

(Address of principal executive offices)

(303) 824-4000

(Registrant’s telephone number, including area code)

No Changes

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of the exchange on which registered

Common Stock, $1 par value

ARW

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes    No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes    No 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes    No 

There were 54,159,399 shares of Common Stock outstanding as of October 26, 2023.

Table of Contents

ARROW ELECTRONICS, INC.

Table of Contents

    

    

Part I.

Financial Information

Item 1.

Financial Statements

Consolidated Statements of Operations

3

Consolidated Statements of Comprehensive Income

4

Consolidated Balance Sheets

5

Consolidated Statements of Cash Flows

6

Consolidated Statements of Equity

7

Notes to Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

23

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

33

Item 4.

Controls and Procedures

34

Part II.

Other Information

Item 1.

Legal Proceedings

35

Item 1A.

Risk Factors

35

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

35

Item 5.

Other Information

35

Item 6.

Exhibits

36

Signature

37

2

Table of Contents

PART I. FINANCIAL INFORMATION

Item 1.    Financial Statements

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)

Quarter Ended

Nine Months Ended

September 30,

October 1,

September 30,

October 1,

    

2023

    

2022

    

2023

    

2022

    

Sales

$

8,007,019

$

9,266,432

$

25,257,963

$

27,801,399

Cost of sales

 

7,027,422

 

8,079,520

 

22,098,495

 

24,170,769

Gross profit

 

979,597

 

1,186,912

 

3,159,468

 

3,630,630

Operating expenses:

 

  

 

  

 

  

 

  

Selling, general, and administrative expenses

 

563,150

 

634,353

 

1,822,783

 

1,931,918

Depreciation and amortization

 

45,005

 

46,230

 

137,948

 

141,787

Restructuring, integration, and other charges (Note K)

 

31,359

 

3,635

 

44,252

 

11,027

 

639,514

 

684,218

 

2,004,983

 

2,084,732

Operating income

 

340,083

 

502,694

 

1,154,485

 

1,545,898

Equity in earnings of affiliated companies

 

1,392

 

1,718

 

4,373

 

4,726

(Loss) gain on investments, net

 

(6,159)

 

(3,480)

 

4,649

 

(11,213)

Employee benefit plan expense, net

 

(854)

 

(890)

 

(2,510)

 

(2,614)

Interest and other financing expense, net

 

(82,180)

 

(50,936)

 

(246,672)

 

(123,427)

Income before income taxes

 

252,282

 

449,106

 

914,325

 

1,413,370

Provision for income taxes

 

52,241

 

105,500

 

201,168

 

332,273

Consolidated net income

 

200,041

 

343,606

 

713,157

 

1,081,097

Noncontrolling interests

 

1,382

 

1,207

 

4,189

 

3,615

Net income attributable to shareholders

$

198,659

$

342,399

$

708,968

$

1,077,482

Net income per share:

 

  

 

  

 

  

 

  

Basic

$

3.57

$

5.33

$

12.43

$

16.31

Diluted

$

3.53

$

5.27

$

12.28

$

16.12

Weighted-average shares outstanding:

 

  

 

  

 

  

 

  

Basic

 

55,597

 

64,228

 

57,021

 

66,055

Diluted

 

56,298

 

64,979

 

57,715

 

66,845

See accompanying notes.

3

Table of Contents

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

Quarter Ended

Nine Months Ended

September 30,

October 1,

September 30,

October 1,

   

2023

   

2022

   

2023

   

2022

    

Consolidated net income

$

200,041

$

343,606

$

713,157

$

1,081,097

Other comprehensive loss:

 

  

 

  

 

  

 

  

Foreign currency translation adjustment and other, net of taxes

 

(108,846)

 

(202,716)

 

(98,904)

 

(473,826)

Unrealized gain on foreign exchange contracts designated as net investment hedges, net of taxes

 

4,077

 

11,347

 

(399)

 

25,023

Unrealized gain on interest rate swaps designated as cash flow hedges, net of taxes

 

519

 

7,303

 

2,257

 

27,187

Employee benefit plan items, net of taxes

 

(261)

 

117

 

(831)

 

305

Other comprehensive loss

 

(104,511)

 

(183,949)

 

(97,877)

 

(421,311)

Comprehensive income

 

95,530

 

159,657

 

615,280

 

659,786

Less: Comprehensive income (loss) attributable to noncontrolling interests

 

85

 

(878)

 

3,360

 

(1,475)

Comprehensive income attributable to shareholders

$

95,445

$

160,535

$

611,920

$

661,261

See accompanying notes.

4

Table of Contents

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)

September 30,

December 31,

    

2023

    

2022

    

ASSETS

    

  

    

  

    

Current assets:

 

  

 

  

 

Cash and cash equivalents

$

333,294

$

176,915

Accounts receivable, net

 

10,663,164

 

12,322,717

Inventories

 

5,805,520

 

5,319,369

Other current assets

 

503,982

 

521,339

Total current assets

 

17,305,960

 

18,340,340

Property, plant, and equipment, at cost:

 

  

 

  

Land

 

5,691

 

5,691

Buildings and improvements

 

185,790

 

184,211

Machinery and equipment

 

1,616,937

 

1,583,661

 

1,808,418

 

1,773,563

Less: Accumulated depreciation and amortization

 

(1,272,214)

 

(1,177,107)

Property, plant, and equipment, net

 

536,204

 

596,456

Investments in affiliated companies

 

63,049

 

65,112

Intangible assets, net

 

134,811

 

159,137

Goodwill

 

2,021,987

 

2,027,626

Other assets

 

576,349

 

574,511

Total assets

$

20,638,360

$

21,763,182

LIABILITIES AND EQUITY

 

  

 

  

Current liabilities:

 

  

 

  

Accounts payable

$

9,090,554

$

10,460,419

Accrued expenses

 

1,256,815

 

1,339,302

Short-term borrowings, including current portion of long-term debt

 

1,588,662

 

589,883

Total current liabilities

 

11,936,031

 

12,389,604

Long-term debt

 

2,615,001

 

3,182,964

Other liabilities

 

533,853

 

579,261

Commitments and contingencies (Note K)

Equity:

 

  

 

  

Shareholders’ equity:

 

  

 

  

Common stock, par value $1:

 

  

 

  

Authorized - 160,000 shares in both 2023 and 2022

 

  

 

  

Issued - 125,424 shares in both 2023 and 2022

 

125,424

 

125,424

Capital in excess of par value

 

1,205,788

 

1,208,708

Treasury stock (71,269 and 66,175 shares in 2023 and 2022, respectively), at cost

 

(5,307,441)

 

(4,637,345)

Retained earnings

 

9,923,800

 

9,214,832

Accumulated other comprehensive loss

 

(462,310)

 

(365,262)

Total shareholders’ equity

 

5,485,261

 

5,546,357

Noncontrolling interests

 

68,214

 

64,996

Total equity

 

5,553,475

 

5,611,353

Total liabilities and equity

$

20,638,360

$

21,763,182

See accompanying notes.

5

Table of Contents

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Nine Months Ended

September 30,

October 1,

    

2023

    

2022

    

Cash flows from operating activities:

    

  

    

  

    

Consolidated net income

$

713,157

$

1,081,097

Adjustments to reconcile consolidated net income to net cash provided by (used for) operations:

 

  

 

  

Depreciation and amortization

 

137,948

 

141,787

Amortization of stock-based compensation

 

34,868

 

35,009

Equity in earnings of affiliated companies

 

(4,373)

 

(4,726)

Deferred income taxes

 

(53,038)

 

1,468

(Gain) loss on investments, net

 

(4,649)

 

11,213

Other

 

4,078

 

2,673

Change in assets and liabilities:

 

 

  

Accounts receivable, net

 

1,585,521

 

(628,974)

Inventories

 

(525,020)

 

(1,011,763)

Accounts payable

 

(1,355,777)

 

166,602

Accrued expenses

 

(88,348)

 

192,759

Other assets and liabilities

 

(25,660)

 

(128,909)

Net cash provided by (used for) operating activities

 

418,707

 

(141,764)

Cash flows from investing activities:

 

  

 

  

Acquisition of property, plant, and equipment

 

(57,775)

 

(54,780)

Proceeds from collections of notes receivable

 

237

 

20,805

Proceeds from settlement of net investment hedge

 

10,725

 

Net cash used for investing activities

 

(46,813)

 

(33,975)

Cash flows from financing activities:

 

  

 

  

Change in short-term and other borrowings

 

802,032

 

276,516

(Repayments of) proceeds from long-term bank borrowings, net

 

(566,734)

 

1,238,268

Net proceeds from note offering

 

496,268

 

Redemption of notes

 

(300,000)

 

(350,000)

Proceeds from exercise of stock options

 

16,824

 

16,434

Repurchases of common stock

 

(719,708)

 

(725,254)

Settlement of forward-starting interest rate swap

 

56,711

 

Other

 

(142)

 

(137)

Net cash (used for) provided by financing activities

 

(214,749)

 

455,827

Effect of exchange rate changes on cash

 

(766)

 

(168,297)

Net increase in cash and cash equivalents

 

156,379

 

111,791

Cash and cash equivalents at beginning of period

176,915

222,194

Cash and cash equivalents at end of period

$

333,294

$

333,985

See accompanying notes.

6

Table of Contents

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF EQUITY

(In thousands)

(Unaudited)

    

    

    

    

    

Accumulated 

    

    

Common 

Capital in 

Other 

Stock at Par

Excess of Par

Treasury 

Retained 

Comprehensive 

Noncontrolling 

 

Value

 

Value

Stock

Earnings

 

Loss

Interests

Total

Balance at December 31, 2022

$

125,424

$

1,208,708

$

(4,637,345)

$

9,214,832

$

(365,262)

$

64,996

$

5,611,353

Consolidated net income

 

 

 

 

273,750

 

 

1,575

 

275,325

Other comprehensive income

 

 

 

 

 

3,794

 

3,077

 

6,871

Amortization of stock-based compensation

 

 

19,497

 

 

 

 

 

19,497

Shares issued for stock-based compensation awards

 

 

(25,071)

 

31,005

 

 

 

 

5,934

Repurchases of common stock

 

 

 

(318,800)

 

 

 

 

(318,800)

Balance at April 1, 2023

$

125,424

$

1,203,134

$

(4,925,140)

$

9,488,582

$

(361,468)

$

69,648

$

5,600,180

Consolidated net income

236,559

1,232

237,791

Other comprehensive income (loss)

 

 

 

 

2,372

 

(2,609)

 

(237)

Amortization of stock-based compensation

 

8,852

 

 

 

 

 

8,852

Shares issued for stock-based compensation awards

 

(8,922)

 

19,369

 

 

 

 

10,447

Repurchases of common stock

 

 

(202,417)

 

 

 

 

(202,417)

Distributions

 

 

 

 

 

(142)

 

(142)

Balance at July 1, 2023

$

125,424

$

1,203,064

$

(5,108,188)

$

9,725,141

$

(359,096)

$

68,129

$

5,654,474

Consolidated net income

 

198,659

1,382

200,041

Other comprehensive loss

 

(103,214)

(1,297)

(104,511)

Amortization of stock-based compensation

 

6,519

6,519

Shares issued for stock-based compensation awards

 

(3,795)

4,238

443

Repurchases of common stock

 

(203,491)

(203,491)

Balance at September 30, 2023

$

125,424

$

1,205,788

$

(5,307,441)

$

9,923,800

$

(462,310)

$

68,214

$

5,553,475

    

    

    

    

    

Accumulated 

    

    

Common 

Capital in 

Other 

Stock at Par 

Excess of Par 

Treasury 

Retained 

Comprehensive 

Noncontrolling 

Value

Value

Stock

Earnings

 

Loss

Interests

Total

Balance at December 31, 2021

$

125,424

$

1,189,845

$

(3,629,265)

$

7,787,948

$

(191,657)

$

58,551

$

5,340,846

Consolidated net income

 

 

 

 

364,749

 

 

1,247

 

365,996

Other comprehensive loss

 

 

 

 

 

(41,312)

 

(869)

 

(42,181)

Amortization of stock-based compensation

 

 

17,351

 

 

 

 

 

17,351

Shares issued for stock-based compensation awards

 

 

(20,601)

 

31,903

 

 

 

 

11,302

Repurchases of common stock

 

 

 

(264,431)

 

 

 

 

(264,431)

Balance at April 2, 2022

$

125,424

$

1,186,595

$

(3,861,793)

$

8,152,697

$

(232,969)

$

58,929

$

5,428,883

Consolidated net income

 

 

 

 

370,334

 

 

1,161

 

371,495

Other comprehensive loss

 

 

 

 

 

(193,045)

 

(2,136)

 

(195,181)

Amortization of stock-based compensation

 

 

13,885

 

 

 

 

 

13,885

Shares issued for stock-based compensation awards

 

 

(1,950)

 

6,320

 

 

 

 

4,370

Repurchases of common stock

 

 

 

(225,032)

 

 

 

 

(225,032)

Distributions

 

 

 

 

 

 

(137)

 

(137)

Balance at July 2, 2022

$

125,424

$

1,198,530

$

(4,080,505)

$

8,523,031

$

(426,014)

$

57,817

$

5,398,283

Consolidated net income

 

 

 

 

342,399

 

 

1,207

 

343,606

Other comprehensive loss

 

 

 

 

 

(181,864)

 

(2,085)

 

(183,949)

Amortization of stock-based compensation

 

 

3,773

 

 

 

 

 

3,773

Shares issued for stock-based compensation awards

 

 

(1,118)

 

1,880

 

 

 

 

762

Repurchases of common stock

 

 

 

(259,789)

 

 

 

 

(259,789)

Balance at October 1, 2022

$

125,424

$

1,201,185

$

(4,338,414)

$

8,865,430

$

(607,878)

$

56,939

$

5,302,686

See accompanying notes.

7

Table of Contents

ARROW ELECTRONICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note A – Basis of Presentation

The accompanying consolidated financial statements of Arrow Electronics, Inc. (the “company”) were prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and reflect all adjustments of a normal recurring nature, which are, in the opinion of management, necessary for a fair presentation of the consolidated financial position and results of operations at, and for the periods presented. The consolidated results of operations for the interim periods are not necessarily indicative of results for the full year.

These consolidated financial statements do not include all of the information or notes necessary for a complete presentation and, accordingly, should be read in conjunction with the company’s audited consolidated financial statements and accompanying notes for the year ended December 31, 2022, as filed in the company’s Annual Report on Form 10-K.

Quarter End

The company operates on a quarterly calendar that closes on the Saturday closest to the end of the calendar quarter, except for the fourth quarter, which closes on December 31, 2023.

Note B – Impact of Recently Issued Accounting Standards

In September 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-04, Liabilities—Supplier Finance Programs (Subtopic 405-50) Disclosure of Supplier Finance Program Obligations (“ASU No. 2022-04”). ASU No. 2022-04 requires that a buyer in a supplier finance program disclose sufficient information about the program to allow a user of financial statements to understand the program’s nature, activity during the period, and potential magnitude. Effective January 1, 2023, the company adopted the provisions of ASU No. 2022-04 on a retrospective basis. As a result, the company disclosed key terms and amounts outstanding under its supplier finance programs (refer to Note F).

Note C – Goodwill and Intangible Assets

Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist.

Goodwill of companies acquired, allocated to the company’s business segments, is as follows:

    

Global 

    

    

(thousands)

Components

Global ECS

Total

Balance as of December 31, 2022 (a)

$

873,003

$

1,154,623

$

2,027,626

Foreign currency translation adjustment

 

(3,875)

 

(1,764)

 

(5,639)

Balance as of September 30, 2023 (a)

$

869,128

$

1,152,859

$

2,021,987

(a)The total carrying value of goodwill as of September 30, 2023, and December 31, 2022 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components business segment and $302.9 million was recorded in the global enterprise computing solutions (“ECS”) business segment.

8

Table of Contents

ARROW ELECTRONICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Intangible assets, net, are comprised of the following as of September 30, 2023:

    

Gross 

    

    

Carrying 

Accumulated 

(thousands)

Amount

Amortization

Net

Customer relationships

$

263,968

$

(157,138)

$

106,830

Amortizable trade name

 

74,006

 

(46,025)

 

27,981

$

337,974

$

(203,163)

$

134,811

Intangible assets, net, are comprised of the following as of December 31, 2022:

    

Gross 

    

    

Carrying 

Accumulated 

(thousands)

Amount

Amortization

Net

Customer relationships

$

268,180

$

(144,655)

$

123,525

Amortizable trade name

 

74,011

 

(38,399)

 

35,612

$

342,191

$

(183,054)

$

159,137

During the third quarter of 2023 and 2022, the company recorded amortization expense related to identifiable intangible assets of $7.9 million and $8.7 million, respectively. During the first nine months of 2023 and 2022, amortization expense related to identifiable intangible assets was $23.8 million and $26.5 million, respectively.

Note D – Investments in Affiliated Companies

The company owns a 50% interest in two joint ventures with Marubun Corporation (collectively “Marubun/Arrow”) and a 50% interest in one other joint venture. These investments are accounted for using the equity method.

The following table presents the company’s investment in affiliated companies:

    

September 30,

    

December 31,

(thousands)

2023

2022

Marubun/Arrow

$