-- Fourth-Quarter Sales In Line with
Guidance -- -- Fourth-Quarter Earnings Per Share of $3.54
and Non-GAAP Earnings Per Share of $3.98, Both Above High End of
Guidance --
Arrow Electronics, Inc. (NYSE:ARW) today announced financial
results for its fourth quarter and fiscal year ended Dec. 31,
2023.
“The company delivered fourth-quarter sales in line with our
expectations, with earnings per share above the high end of our
guidance range in challenging electronic components and IT spending
markets,” said Sean Kerins, Arrow’s president and chief executive
officer.
“Despite excess inventory throughout the supply chain leading to
softer demand in our components business, and a mixed IT spending
environment for our enterprise computing solutions business,
full-year 2023 results were solid. Arrow generated healthy cashflow
from operations that enabled the company to repurchase
approximately $750 million of shares throughout the year,” said Mr.
Kerins. “Looking ahead, and given the current market dynamics,
we’ll manage our cost structure and working capital prudently while
continuing to remain committed to growth initiatives where our
differentiation provides value to our suppliers and customers.”
Arrow Consolidated
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
(in millions except per share
data)
2023
2022
2023
2022
Consolidated sales
$
7,849
$
9,323
$
33,107
$
37,124
Net income attributable to
shareholders
195
349
904
1,427
Net income per diluted share
3.54
5.66
15.84
21.80
Non-GAAP net income attributable to
shareholders(1)
219
351
977
1,465
Non-GAAP net income per diluted share
3.98
5.69
17.12
22.38
In the fourth quarter of 2023, sales decreased 16 percent year
over year. Changes in foreign currencies had positive impacts on
growth of approximately $126 million on sales and $0.08 on earnings
per share on a diluted basis compared to the fourth quarter of
2022.
Full-year 2023 sales decreased 11 percent year over year.
Changes in foreign currencies had immaterial impacts on sales and
earnings per share on a diluted basis compared to 2022.
Global Components
“During the quarter, we experienced continued weakness in our
industrial end markets for components. We saw relative strength in
aerospace and defense, and medical device verticals in the west
along with sequential growth in data center and transportation
markets in Asia,” said Mr. Kerins.
Global Components
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
(in millions)
2023
2022
2023
2022
Global components sales
$
5,636
$
6,827
$
25,420
$
28,788
Global components operating income, as
reported
281
443
1,459
1,961
Global components non-GAAP operating
income
288
449
1,486
1,988
In the fourth quarter of 2023, global component sales decreased
17 percent year over year. Americas components fourth-quarter sales
decreased 23 percent year over year. Europe components
fourth-quarter sales decreased 14 percent year over year and
decreased 17 percent year over year on a constant currency basis.
Asia-Pacific components fourth-quarter sales decreased 15 percent
year over year.
Global Enterprise Computing
Solutions
“In our enterprise computing solutions business, momentum
continued to build in infrastructure software, as-a-service
solutions and related services,” said Mr. Kerins. “In EMEA, we
achieved year-on-year billings growth in the fourth quarter while
our North America results reflected a more muted IT spending
environment.”
Global Enterprise Computing
Solutions
Quarter Ended
Year Ended
December 31,
December 31,
December 31,
December 31,
(in millions)
2023
2022
2023
2022
Global ECS sales
$
2,213
$
2,496
$
7,687
$
8,336
Global ECS operating income, as
reported
145
155
367
409
Global ECS non-GAAP operating income
146
156
372
416
In the fourth quarter of 2023, global enterprise computing
solutions (“ECS”) sales decreased 11 percent year over year and
decreased 13 percent year over year on a constant currency basis.
Europe ECS fourth-quarter sales decreased 2 percent year over year
and decreased 7 percent year over year on a constant currency
basis. Americas ECS fourth-quarter sales decreased 18 percent year
over year.
Other Financial Metrics
“For the full-year 2023, we generated $705 million in cash flow
from operations,” said Raj Agrawal, Arrow’s senior vice president
and chief financial officer. “Focusing on execution in the fourth
quarter enabled us to reduce inventory by more than $600 million
sequentially. We generated $287 million in cash flow from
operations and repurchased approximately $50 million of shares in
the fourth quarter. We now have remaining purchase authorization of
approximately $580 million.”
1 A reconciliation of non-GAAP financial measures to GAAP
financial measures is presented in the reconciliation tables
included herein.
First-Quarter 2024
Outlook
- Consolidated sales of $6.70 billion to $7.30 billion, with
global components sales of $5.00 billion to $5.40 billion, and
global enterprise computing solutions sales of $1.70 billion to
$1.90 billion
- Net income per share on a diluted basis of $1.95 to $2.15, and
non-GAAP net income per share on a diluted basis of $2.20 to
$2.40
- Average tax rate in the range of 23 to 25 percent
- Interest expense of approximately $80 million
- Changes in foreign currencies to increase sales by
approximately $13 million, and earnings per share on a diluted
basis by $0.01 compared to the first quarter of 2023
- Changes in foreign currencies to increase quarter-over-quarter
growth in sales by $31 million and earnings per share on a diluted
basis by $0.02 compared to the fourth quarter of 2023
First-Quarter 2024 GAAP to
non-GAAP Outlook Reconciliation
NON-GAAP SALES RECONCILIATION
Quarter Ended
Quarter Ended
(in billions)
March 30, 2024
April 1, 2023
% Change
March 30, 2024
December 31, 2023
% Change
Global components sales, GAAP
$
5.00 - 5.40
$
6.86
(27%) - (21%)
$
5.00 - 5.40
$
5.64
(11%) - (4%)
Impact of changes in foreign
currencies
—
(0.01
)
—
0.02
Global components sales, constant
currency
$
5.00 - 5.40
$
6.85
(27%) - (21%)
$
5.00 - 5.40
$
5.66
(12%) - (5%)
Global ECS sales, GAAP
$
1.70 - 1.90
$
1.88
(10%) - 1%
$
1.70 - 1.90
$
2.21
(23%) - (14%)
Impact of changes in foreign
currencies
—
0.02
—
0.01
Global ECS sales, constant currency
$
1.70 - 1.90
$
1.90
(11%) - 0%
$
1.70 - 1.90
$
2.22
(23%) - (14%)
NON-GAAP EARNINGS
RECONCILIATION
Reported GAAP measure
Intangible amortization
expense
Restructuring & integration
charges
Non-GAAP measure
Net income per diluted share
$1.95 to $2.15
$0.10
$0.15
$2.20 to $2.40
Earnings Presentation
Please refer to the earnings presentation, that can be found at
investor.arrow.com, as a supplement to the company’s earnings
release. The company uses its website as a tool to disclose
important information about the company and to comply with its
disclosure obligations under Regulation Fair Disclosure.
Webcast and Conference Call
Information
Arrow Electronics will host a conference call to discuss
fourth-quarter and full-year 2023 financial results on Feb 8, 2024,
at 1:00 PM ET.
A live webcast of the conference call will be available via the
events section of investor.arrow.com or by accessing the webcast
link directly at https://events.q4inc.com/attendee/921341362.
Shortly after the conclusion of the conference call, a webcast
replay will be available on the Arrow website for one year.
Interested parties may pre-register online at
https://registrations.events/direct/Q4I97132 to obtain a
user-specific access code and dial-in information to access the
live conference call.
About Arrow Electronics
Arrow Electronics guides innovation forward for thousands of
leading technology manufacturers and service providers. With 2023
sales of $33 billion, Arrow develops technology solutions that help
improve business and daily life. Learn more at arrow.com.
Information Relating to Forward-Looking
Statements
This press release includes “forward-looking” statements, as the
term is defined under the federal securities laws, including but
not limited to statements regarding: Arrow’s future financial
performance, including its outlook on financial results for the
first quarter of fiscal 2024 such as sales, net income per diluted
share, non-GAAP net income per diluted share, average tax rate,
average diluted shares outstanding, interest and other expense,
impact to sales due to changes in foreign currencies, intangible
amortization expense per diluted share, restructuring &
integration charges per diluted share, and expectations regarding
market demand and shareholder returns. These and other
forward-looking statements are subject to numerous assumptions,
risks, and uncertainties, which could cause actual results or facts
to differ materially from such statements for a variety of reasons,
including, but not limited to: unfavorable economic conditions;
disruptions or inefficiencies in the supply chain; political
instability; impacts of military conflict and sanctions; industry
conditions; changes in product supply, pricing and customer demand;
competition; other vagaries in the global components and the global
ECS markets; deteriorating economic conditions, including economic
recession, inflation, tax rates, foreign currency exchange rates,
or the availability of capital; the effects of natural or man-made
catastrophic events; changes in relationships with key suppliers;
increased profit margin pressure; changes in legal and regulatory
matters; non-compliance with certain regulations, such as export,
antitrust, and anti-corruption laws; foreign tax and other loss
contingencies; breaches of security or privacy of business
information; outbreaks, epidemics, pandemics, or public health
crises; and the company's ability to generate positive cash flow.
For a further discussion of these and other factors that could
cause the company's future results to differ materially from any
forward-looking statements, see the section entitled “Risk Factors”
in the company's most recent Annual Report on Form 10-K, as well as
in other filings the company makes with the Securities and Exchange
Commission. Shareholders and other readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date on which they are made. The company
undertakes no obligation to update publicly or revise any of the
forward-looking statements.
Certain Non-GAAP Financial
Information
In addition to disclosing financial results that are determined
in accordance with accounting principles generally accepted in the
United States (“GAAP”), the company also provides certain non-GAAP
financial information. The company provides the following non-GAAP
metrics: non-GAAP sales, operating income (included by business
segment), income before income taxes, provision for income taxes,
consolidated net income, noncontrolling interests, net income
attributable to shareholders, effective tax rate and net income per
share on a diluted basis. The foregoing non-GAAP measures are
adjusted by certain of the following, as applicable: impact of
changes in foreign currencies (referred to as “changes in foreign
currencies” or “on a constant currency basis”) by re-translating
prior-period results at current period foreign exchange rates;
identifiable intangible asset amortization, restructuring,
integration, and other charges; net gains and losses on
investments; and impact of tax legislation changes. Management
believes that providing this additional information is useful to
the reader to better assess and understand the company’s operating
performance and future prospects in the same manner as management,
especially when comparing results with previous periods. Management
typically monitors the business as adjusted for these items, in
addition to GAAP results, to understand and compare operating
results across accounting periods, for internal budgeting purposes,
for short- and long-term operating plans, and to evaluate the
company's financial performance. However, analysis of results on a
non-GAAP basis should be used as a complement to, in conjunction
with, and not as a substitute for, data presented in accordance
with GAAP.
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(In thousands except per share
data)
Quarter Ended
Year Ended
December 31, 2023 (Unaudited)
December 31, 2022 (Unaudited)
December 31, 2023
December 31, 2022
Sales
$
7,849,157
$
9,323,023
$
33,107,120
$
37,124,422
Cost of sales
6,859,607
8,117,028
28,958,102
32,287,797
Gross profit
989,550
1,205,995
4,149,018
4,836,625
Operating expenses:
Selling, general, and administrative
expenses
590,039
635,090
2,412,822
2,567,008
Depreciation and amortization
43,168
45,595
181,116
187,382
Restructuring, integration, and other
charges
39,664
2,714
83,916
13,741
672,871
683,399
2,677,854
2,768,131
Operating income
316,679
522,596
1,471,164
2,068,494
Equity in earnings of affiliated
companies
2,034
2,938
6,407
7,664
Gain (loss) on investments, net
14,635
8,356
19,284
(2,857
)
Employee benefit plan expense, net
(1,267
)
(889
)
(3,777
)
(3,503
)
Interest and other financing expense,
net
(82,052
)
(62,221
)
(328,724
)
(185,648
)
Income before income taxes
250,029
470,780
1,164,354
1,884,150
Provision for income taxes
53,823
116,719
254,991
448,992
Consolidated net income
196,206
354,061
909,363
1,435,158
Noncontrolling interests
1,669
4,659
5,858
8,274
Net income attributable to
shareholders
$
194,537
$
349,402
$
903,505
$
1,426,884
Net income per share:
Basic
$
3.58
$
5.71
$
16.03
$
22.01
Diluted
$
3.54
$
5.66
$
15.84
$
21.80
Weighted-average shares outstanding:
Basic
54,396
61,175
56,359
64,838
Diluted
55,015
61,739
57,035
65,453
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par
value)
December 31, 2023
December 31, 2022
ASSETS
Current assets:
Cash and cash equivalents
$
218,053
$
176,915
Accounts receivable, net
12,238,073
12,322,717
Inventories
5,187,225
5,319,369
Other current assets
684,126
521,339
Total current assets
18,327,477
18,340,340
Property, plant, and equipment, at
cost:
Land
5,691
5,691
Buildings and improvements
195,579
184,211
Machinery and equipment
1,632,606
1,583,661
1,833,876
1,773,563
Less: Accumulated depreciation and
amortization
(1,303,136
)
(1,177,107
)
Property, plant, and equipment, net
530,740
596,456
Investments in affiliated companies
62,741
65,112
Intangible assets, net
127,440
159,137
Goodwill
2,050,426
2,027,626
Other assets
627,344
574,511
Total assets
$
21,726,168
$
21,763,182
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable
$
10,070,015
$
10,460,419
Accrued expenses
1,463,915
1,339,302
Short-term borrowings, including current
portion of long-term debt
1,653,954
589,883
Total current liabilities
13,187,884
12,389,604
Long-term debt
2,153,553
3,182,964
Other liabilities
507,424
579,261
Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2023
and 2022
Issued - 57,691 and 125,424 shares in 2023
and 2022, respectively
57,691
125,424
Capital in excess of par value
553,340
1,208,708
Treasury stock (3,880 and 66,175 shares in
2023 and 2022, respectively), at cost
(297,745
)
(4,637,345
)
Retained earnings
5,790,217
9,214,832
Accumulated other comprehensive loss
(298,039
)
(365,262
)
Total shareholders’ equity
5,805,464
5,546,357
Noncontrolling interests
71,843
64,996
Total equity
5,877,307
5,611,353
Total liabilities and equity
$
21,726,168
$
21,763,182
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
(Unaudited)
Quarter Ended
December 31, 2023
December 31, 2022
Cash flows from operating activities:
Consolidated net income
$
196,206
$
354,061
Adjustments to reconcile consolidated net
income to net cash provided by operations:
Depreciation and amortization
43,168
45,595
Amortization of stock-based
compensation
6,701
7,921
Equity in earnings of affiliated
companies
(2,034
)
(2,938
)
Deferred income taxes
(40,942
)
(14,518
)
Gain on investments, net
(7,817
)
(8,356
)
Other
18,512
939
Change in assets and liabilities:
Accounts receivable, net
(1,396,096
)
(801,426
)
Inventories
664,333
(154,022
)
Accounts payable
898,395
779,217
Accrued expenses
126,949
(90,566
)
Other assets and liabilities
(220,633
)
(7,220
)
Net cash provided by operating
activities
286,742
108,687
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(25,510
)
(24,056
)
Proceeds from collections of notes
receivable
—
320
Net cash used for investing activities
(25,510
)
(23,736
)
Cash flows from financing activities:
Change in short-term and other
borrowings
63,980
(17,700
)
Repayments of long-term bank borrowings,
net
(465,147
)
(5,018
)
Proceeds from exercise of stock
options
186
906
Repurchases of common stock
(50,492
)
(324,233
)
Net cash used for financing activities
(451,473
)
(346,045
)
Effect of exchange rate changes on
cash
75,000
104,024
Net decrease in cash and cash
equivalents
(115,241
)
(157,070
)
Cash and cash equivalents at beginning of
period
333,294
333,985
Cash and cash equivalents at end of
period
$
218,053
$
176,915
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In thousands)
Year Ended
December 31, 2023
December 31, 2022
Cash flows from operating activities:
Consolidated net income
$
909,363
$
1,435,158
Adjustments to reconcile consolidated net
income to net cash provided by (used for) operations:
Depreciation and amortization
181,116
187,382
Amortization of stock-based
compensation
41,569
42,930
Equity in earnings of affiliated
companies
(6,407
)
(7,664
)
Deferred income taxes
(93,980
)
(13,050
)
(Gain) loss on investments, net
(12,466
)
2,857
Other
22,590
3,612
Change in assets and liabilities:
Accounts receivable, net
189,425
(1,430,400
)
Inventories
139,313
(1,165,785
)
Accounts payable
(457,382
)
945,819
Accrued expenses
38,601
102,193
Other assets and liabilities
(246,293
)
(136,129
)
Net cash provided by (used for) operating
activities
705,449
(33,077
)
Cash flows from investing activities:
Acquisition of property, plant, and
equipment
(83,285
)
(78,836
)
Proceeds from collections of notes
receivable
237
21,125
Proceeds from settlement of net investment
hedge
10,725
—
Net cash used for investing activities
(72,323
)
(57,711
)
Cash flows from financing activities:
Change in short-term and other
borrowings
866,012
258,816
(Repayments of) proceeds from long-term
bank borrowings, net
(1,031,881
)
1,233,250
Redemption of notes
(300,000
)
(350,000
)
Net proceeds from note offering
496,268
—
Proceeds from exercise of stock
options
17,010
17,340
Repurchases of common stock
(770,200
)
(1,049,487
)
Settlement of forward-starting interest
rate swap
56,711
—
Other
(142
)
(137
)
Net cash (used for) provided by financing
activities
(666,222
)
109,782
Effect of exchange rate changes on
cash
74,234
(64,273
)
Net increase (decrease) in cash and cash
equivalents
41,138
(45,279
)
Cash and cash equivalents at beginning of
period
176,915
222,194
Cash and cash equivalents at end of
period
$
218,053
$
176,915
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Quarter Ended
December 31, 2023
December 31, 2022
% Change
Consolidated sales, as reported
$
7,849,157
$
9,323,023
(15.8
)%
Impact of changes in foreign
currencies
—
126,441
Consolidated sales, constant currency
$
7,849,157
$
9,449,464
(16.9
)%
Global components sales, as reported
$
5,636,032
$
6,827,029
(17.4
)%
Impact of changes in foreign
currencies
—
75,974
Global components sales, constant
currency
$
5,636,032
$
6,903,003
(18.4
)%
Americas components sales, as reported
$
1,784,764
$
2,326,995
(23.3
)%
Impact of changes in foreign
currencies
—
99
Americas components sales, constant
currency
$
1,784,764
$
2,327,094
(23.3
)%
Asia components sales, as reported
$
2,163,421
$
2,543,294
(14.9
)%
Impact of changes in foreign
currencies
—
(7,158
)
Asia components sales, constant
currency
$
2,163,421
$
2,536,136
(14.7
)%
Europe components sales, as reported
$
1,687,847
$
1,956,740
(13.7
)%
Impact of changes in foreign
currencies
—
83,033
Europe components sales, constant
currency
$
1,687,847
$
2,039,773
(17.3
)%
Global ECS sales, as reported
$
2,213,125
$
2,495,994
(11.3
)%
Impact of changes in foreign
currencies
—
50,467
Global ECS sales, constant currency
$
2,213,125
$
2,546,461
(13.1
)%
Americas ECS sales, as reported
$
1,145,754
$
1,404,224
(18.4
)%
Impact of changes in foreign
currencies
—
200
Americas ECS sales, constant currency
$
1,145,754
$
1,404,424
(18.4
)%
Europe ECS sales, as reported
$
1,067,371
$
1,091,770
(2.2
)%
Impact of changes in foreign
currencies
—
50,267
Europe ECS sales, constant currency
$
1,067,371
$
1,142,037
(6.5
)%
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
Year Ended
December 31, 2023
December 31, 2022
% Change
Consolidated sales, as reported
$
33,107,120
$
37,124,422
(10.8
)%
Impact of changes in foreign
currencies
—
51,829
Consolidated sales, constant currency
$
33,107,120
$
37,176,251
(10.9
)%
Global components sales, as reported
$
25,419,899
$
28,788,003
(11.7
)%
Impact of changes in foreign
currencies
—
7,690
Global components sales, constant
currency
$
25,419,899
$
28,795,693
(11.7
)%
Americas components sales, as reported
$
7,954,713
$
9,592,547
(17.1
)%
Impact of changes in foreign
currencies
—
(2,166
)
Americas components sales, constant
currency
$
7,954,713
$
9,590,381
(17.1
)%
Asia components sales, as reported
$
9,390,292
$
11,567,482
(18.8
)%
Impact of changes in foreign
currencies
—
(122,448
)
Asia components sales, constant
currency
$
9,390,292
$
11,445,034
(18.0
)%
Europe components sales, as reported
$
8,074,894
$
7,627,974
5.9
%
Impact of changes in foreign
currencies
—
132,304
Europe components sales, constant
currency
$
8,074,894
$
7,760,278
4.1
%
Global ECS sales, as reported
$
7,687,221
$
8,336,419
(7.8
)%
Impact of changes in foreign
currencies
—
44,139
Global ECS sales, constant currency
$
7,687,221
$
8,380,558
(8.3
)%
Americas ECS sales, as reported
$
4,160,298
$
4,847,027
(14.2
)%
Impact of changes in foreign
currencies
—
(18,850
)
Americas ECS sales, constant currency
$
4,160,298
$
4,828,177
(13.8
)%
Europe ECS sales, as reported
$
3,526,923
$
3,489,392
1.1
%
Impact of changes in foreign
currencies
—
62,989
Europe ECS sales, constant currency
$
3,526,923
$
3,552,381
(0.7
)%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Three months ended December 31,
2023
Reported
Intangible
Restructuring
GAAP
amortization
& Integration
Non-GAAP
measure
expense
charges
Other(1)
measure
Operating income
$
316,679
$
7,491
$
39,664
$
—
$
363,834
Income before income taxes
250,029
7,491
39,664
(14,635
)
282,549
Provision for income taxes
53,823
1,863
9,331
(3,500
)
61,517
Consolidated net income
196,206
5,628
30,333
(11,135
)
221,032
Noncontrolling interests
1,669
131
—
—
1,800
Net income attributable to
shareholders
$
194,537
$
5,497
$
30,333
$
(11,135
)
$
219,232
Net income per diluted share (2)
$
3.54
$
0.10
$
0.55
$
(0.20
)
$
3.98
Effective tax rate (3)
21.5
%
21.8
%
Three months ended December 31,
2022
Reported
Intangible
Restructuring
GAAP
amortization
& Integration
Non-GAAP
measure
expense
charges
Other(1)
measure
Operating income
$
522,596
$
8,170
$
2,714
$
—
$
533,480
Income before income taxes
470,780
8,170
2,714
(8,356
)
473,308
Provision for income taxes
116,719
2,056
472
(2,003
)
117,244
Consolidated net income
354,061
6,114
2,242
(6,353
)
356,064
Noncontrolling interests
4,659
127
—
—
4,786
Net income attributable to
shareholders
$
349,402
$
5,987
$
2,242
$
(6,353
)
$
351,278
Net income per diluted share (2)
$
5.66
$
0.10
$
0.04
$
(0.10
)
$
5.69
Effective tax rate (3)
24.8
%
24.8
%
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS
RECONCILIATION
(In thousands except per share
data)
(Unaudited)
Year ended December 31, 2023
Reported GAAP measure
Intangible amortization
expense
Restructuring & Integration
charges
Non- recurring tax items
Other(1)
Non-GAAP measure
Operating income
$
1,471,164
$
31,242
$
83,916
$
—
$
—
$
1,586,322
Income before income taxes
1,164,354
31,242
83,916
—
(19,284
)
1,260,228
Provision for income taxes
254,991
7,824
19,969
(942
)
(4,614
)
277,228
Consolidated net income
909,363
23,418
63,947
942
(14,670
)
983,000
Noncontrolling interests
5,858
539
—
—
—
6,397
Net income attributable to
shareholders
$
903,505
$
22,879
$
63,947
$
942
$
(14,670
)
$
976,603
Net income per diluted share (2)
$
15.84
$
0.40
$
1.12
$
0.02
$
(0.26
)
$
17.12
Effective tax rate (3)
21.9
%
22.0
%
Year ended December 31, 2022
Reported GAAP measure
Intangible amortization
expense
Restructuring & Integration
charges
Non- recurring tax items
Other(1)
Non-GAAP measure
Operating income
$
2,068,494
$
34,692
$
13,741
$
—
$
—
$
2,116,927
Income before income taxes
1,884,150
34,692
13,741
—
2,857
1,935,440
Provision for income taxes
448,992
8,848
2,931
—
708
461,479
Consolidated net income
1,435,158
25,844
10,810
—
2,149
1,473,961
Noncontrolling interests
8,274
525
—
—
—
8,799
Net income attributable to
shareholders
$
1,426,884
$
25,319
$
10,810
$
—
$
2,149
$
1,465,162
Net income per diluted share (2)
$
21.80
$
0.39
$
0.17
$
—
$
0.03
$
22.38
Effective tax rate (3)
23.8
%
23.8
%
___________________
(1)
Other includes (gain) loss on investments,
net.
(2)
The sum of the components for diluted EPS,
as adjusted may not agree to totals, as presented, due to
rounding.
(3)
The items as shown in this table,
represent the reconciling items for the tax rate as reported by
GAAP measure and as a non-GAAP measure.
ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
Quarter Ended
Year Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Sales:
Global components
$
5,636,032
$
6,827,029
$
25,419,899
$
28,788,003
Global ECS
2,213,125
2,495,994
7,687,221
8,336,419
Consolidated
$
7,849,157
$
9,323,023
$
33,107,120
$
37,124,422
Operating income (loss):
Global components (a)
$
281,260
$
442,702
$
1,459,166
$
1,961,125
Global ECS (b)
145,053
154,775
367,004
408,519
Corporate (c)
(109,634
)
(74,881
)
(355,006
)
(301,150
)
Consolidated
$
316,679
$
522,596
$
1,471,164
$
2,068,494
(a)
Global components operating income
includes $62.2 million in settlement charges recorded as a
reduction to operating expense for the year ended December 31,
2023.
(b)
Global ECS operating income includes
charges to the allowance for credit losses, which decreased by $2.8
million and increased by $24.0 million for the fourth quarter and
the year ended December 31, 2023, respectively, relative to the
year-earlier periods.
(c)
Corporate operating loss includes
restructuring, integration, and other charges of $39.6 million and
$83.9 million for the fourth quarter and the year ended December
31, 2023, respectively, and $2.7 million and $13.7 million for the
fourth quarter and year ended December 31, 2022, respectively.
NON-GAAP SEGMENT
RECONCILIATION
Quarter Ended
Year Ended
December 31, 2023
December 31, 2022
December 31, 2023
December 31, 2022
Global components operating income, as
reported
$
281,260
$
442,702
$
1,459,166
$
1,961,125
Intangible assets amortization expense
6,436
6,702
26,500
27,005
Global components non-GAAP operating
income
$
287,696
$
449,404
$
1,485,666
$
1,988,130
Global ECS operating income, as
reported
$
145,053
$
154,775
$
367,004
$
408,519
Intangible assets amortization expense
1,055
1,468
4,742
7,687
Global ECS non-GAAP operating income
$
146,108
$
156,243
$
371,746
$
416,206
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240208823066/en/
Investors: Anthony Bencivenga, 303-566-7456 Vice President,
Investor Relations anthony.bencivenga@arrow.com
Media: John Hourigan, 303-824-4586 Vice President, Public
Affairs and Corporate Marketing jhourigan@arrow.com
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