arw-20220402

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 April 2, 2022


☐			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

(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 x No o

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 x No o

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. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No x

There were 66,036,987 shares of Common Stock outstanding as of April 28, 2022.

Index

ARROW ELECTRONICS, INC.

INDEX



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	21

	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	30

	Item 4.	Controls and Procedures	30

Part II.	Other Information

	Item 1A.	Risk Factors	31

	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31



	Item 6.	Exhibits	32

Signature			33

Index

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)


	Quarter Ended
	April 2, 2022		April 3, 2021
Sales	$	9,074,125	$	8,385,919
Cost of sales	7,866,621		7,455,809
Gross profit	1,207,504		930,110
Operating expenses:
Selling, general, and administrative expenses	643,925		574,567
Depreciation and amortization	48,305		50,331


Restructuring, integration, and other charges	4,898		5,709
	697,128		630,607
Operating income	510,376		299,503
Equity in earnings of affiliated companies	843		844
Gain on investments, net	2,011		2,793

Employee benefit plan expense, net	(889)		(1,230)
Interest and other financing expense, net	(33,985)		(33,656)
Income before income taxes	478,356		268,254
Provision for income taxes	112,360		61,026
Consolidated net income	365,996		207,228
Noncontrolling interests	1,247		907
Net income attributable to shareholders	$	364,749	$	206,321
Net income per share:
Basic	$	5.38	$	2.76
Diluted	$	5.31	$	2.72
Weighted-average shares outstanding:
Basic	67,840		74,882
Diluted	68,749		75,794

See accompanying notes.

Index

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)


	Quarter Ended
	April 2, 2022		April 3, 2021
Consolidated net income	$	365,996	$	207,228
Other comprehensive loss:

Foreign currency translation adjustment and other, net of taxes	(49,910)		(61,921)
Unrealized gain (loss) on foreign exchange contracts designated as net investment hedges, net of taxes	(575)		5,306

SEC Form 10-Q filed by Arrow Electronics Inc.