arw-20210403

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 3, 2021


☐			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 73,783,032 shares of Common Stock outstanding as of April 29, 2021.

ARROW ELECTRONICS, INC.

INDEX



Part I.	Financial Information

	Item 1.	Financial Statements
		Consolidated Statements of Operations	3
		Consolidated Statements of Comprehensive Income (Loss)	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

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 3, 2021		March 28, 2020
Sales	$	8,385,919	$	6,381,417
Cost of sales	7,455,809		5,653,026
Gross profit	930,110		728,391
Operating expenses:
Selling, general, and administrative expenses	574,567		533,839
Depreciation and amortization	50,331		47,110


Restructuring, integration, and other charges	5,709		9,138
	630,607		590,087
Operating income	299,503		138,304
Equity in earnings of affiliated companies	844		530
Gain (loss) on investments, net	2,793		(16,810)

Employee benefit plan expense, net	(1,230)		(1,109)
Interest and other financing expense, net	(33,656)		(43,268)
Income before income taxes	268,254		77,647
Provision for income taxes	61,026		27,892
Consolidated net income	207,228		49,755
Noncontrolling interests	907		252
Net income attributable to shareholders	$	206,321	$	49,503
Net income per share:
Basic	$	2.76	$	0.62
Diluted	$	2.72	$	0.61
Weighted-average shares outstanding:
Basic	74,882		80,407
Diluted	75,794		81,108

See accompanying notes.

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(In thousands)

(Unaudited)


	Quarter Ended
	April 3, 2021		March 28, 2020
Consolidated net income	$	207,228	$	49,755
Other comprehensive loss:

Foreign currency translation adjustment and other, net of taxes	(61,921)		(77,343)
Unrealized gain on foreign exchange contracts designated as net investment hedges, net of taxes	5,306		15,977
Unrealized gain (loss) on interest rate swaps designated as cash flow hedges, net of taxes	36,352		(28,397)
Employee benefit plan items, net of taxes	(166)		2,248
Other comprehensive loss	(20,429)		(87,515)
Comprehensive income (loss)	186,799		(37,760)
Less: Comprehensive income (loss) attributable to non-controlling interests	(946)		10
Comprehensive income (loss) attributable to shareholders	$	187,745	$	(37,770)

See accompanying notes.

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)


	April 3, 2021		December 31, 2020
ASSETS
Current assets:
Cash and cash equivalents	$	227,701	$	373,615
Accounts receivable, net	8,503,010		9,205,343
Inventories	3,275,389		3,287,308
Other current assets	360,968		286,633
Total current assets	12,367,068

SEC Form 10-Q filed by Arrow Electronics, Inc.