Attached files
| file | filename |
|---|---|
| 8-K - ARROW ELECTRONICS, INC. 8-K - ARROW ELECTRONICS INC | a51033760.htm |
| EX-99.2 - EXHIBIT 99.2 - ARROW ELECTRONICS INC | a51033760ex99_2.htm |
Exhibit 99.1
ARROW ELECTRONICS, INC.
9201 E. DRY CREEK ROAD
CENTENNIAL, CO 80112
303-824-4000
ARROW ELECTRONICS REPORTS FOURTH-QUARTER NON-GAAP EARNINGS PER SHARE OF $1.88
-- Full-Year 2014 Non-GAAP Diluted Earnings Per Share Advanced 19% Over Prior Year --
FOR IMMEDIATE RELEASE
CENTENNIAL, Colo. –- February 5, 2015 -- Arrow Electronics, Inc. (NYSE:ARW) today reported fourth-quarter 2014 net income of $116.2 million, or $1.18 per share on a diluted basis, compared with net income of $134.8 million, or $1.32 per share on a diluted basis in the fourth quarter of 2013. Excluding certain items1 in the fourth quarters of 2014 and 2013, net income would have been $184.4 million, or $1.88 per share on a diluted basis, in the fourth quarter of 2014, compared with net income of $172.0 million, or $1.69 per share on a diluted basis, in the fourth quarter of 2013. Fourth-quarter sales of $6.40 billion increased 4 percent from sales of $6.15 billion in the prior year.
“In the fourth quarter we produced record results, completing an outstanding year. Earnings per share of $1.88 were above our expectations, with sales of $6.4 billion above the midpoint of our guidance. Our global components and enterprise computing solutions segments both delivered sales and operating income growth. The stable demand environment for global components matched our expectations. Our focus on the higher value portion of the datacenter resulted in record operating income for our enterprise computing solutions business,” said Michael J. Long, chairman, president, and chief executive officer.
Global components fourth-quarter sales of $3.59 billion increased 4 percent year over year. Sales, as adjusted, grew 5 percent year over year. Americas components sales increased 4 percent year over year. Europe components sales grew 1 percent year over year and the region grew 8 percent year over year on an as-adjusted basis. Components sales in the Asia-Pacific region increased 8 percent year over year.
Global enterprise computing solutions fourth-quarter sales of $2.81 billion grew 3 percent year over year. Americas sales grew 9 percent year over year. Europe sales declined 6 percent year over year and the region declined 3 percent year over year on an as-adjusted basis. Both Americas and Europe continued to experience strong growth in software and services.
FULL-YEAR RESULTS
Arrow’s net income for 2014 was $498.0 million, or $4.98 per share on a diluted basis, compared with net income of $399.4 million, or $3.85 per share on a diluted basis in 2013. Excluding certain items1 in 2014 and 2013, net income would have been $593.0 million, or $5.93 per share on a diluted basis, in 2014, compared with net income of $519.0 million, or $5.01 per share on a diluted basis, in 2013. 2014 sales of $22.77 billion increased 7 percent from sales of $21.36 billion in 2013. Sales, as adjusted, increased 3 percent year over year.
“We delivered strong leverage on our sales in 2014, with operating income, as adjusted, up 12 percent year over year to $924 million, and diluted earnings per share up 19 percent year over year to $5.93,” said Mr. Long.
“Cash flow from operations was $673 million in 2014 as we again exceeded our cash flow target with returns advancing over the prior year,” said Paul J. Reilly, executive vice president, finance and operations, and chief financial officer. “The strong management of our balance sheet and cash flow provided the opportunity for Arrow to return approximately $290 million to shareholders through our stock repurchase program and to continue to make strategic acquisitions in 2014.”
1 A reconciliation of non-GAAP adjusted financial measures, including sales, as adjusted, operating income, as adjusted, net income attributable to shareholders, as adjusted, and net income per share, as adjusted, to GAAP financial measures is presented in the reconciliation tables included herein.
GUIDANCE
“As we look to the first quarter, we believe that total sales will be between $4.9 billion and $5.3 billion, with global components sales between $3.35 billion and $3.55 billion, and global enterprise computing solutions sales between $1.55 billion and $1.75 billion. As a result of this outlook, we expect earnings per share on a diluted basis, excluding any charges to be in the range of $1.27 to $1.39 per share. Our guidance assumes an average tax rate in the range of 27 to 29 percent, average diluted shares outstanding are expected to be 98 million, and the average USD to Euro exchange rate for the first quarter to be 1.14 to 1. The weaker Euro will have a negative impact of $285 million or 5 percent on sales and a negative impact of $.08 or 6 percent on earnings per share on a diluted basis, when compared with the first quarter of 2014. The weaker Euro will have a negative impact of $175 million or 3 percent on sales and a negative impact of $.06 or 4 percent on earnings per share on a diluted basis when compared with the fourth quarter of 2014,” said Mr. Reilly.
Please refer to the CFO commentary, which can be found at www.arrow.com/investor, as a supplement to the company’s earnings release.
Arrow Electronics (www.arrow.com) is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. Arrow serves as a supply channel partner for more than 100,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 460 locations in 56 countries.
# # #
| Contact: | Steven O’Brien |
| Director, Investor Relations | |
| 303-824-4544 | |
| Paul J. Reilly | |
| Executive Vice President, Finance and Operations, and | |
| Chief Financial Officer | |
| 631-847-1872 | |
| Media Contact: | John Hourigan |
| Vice President, Global Communications | |
| 303-824-4586 |
Information Relating to Forward-Looking Statements
This press release includes forward-looking statements that 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: industry conditions, the company's implementation of its new enterprise resource planning system, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and global enterprise computing solutions markets, changes in relationships with key suppliers, increased profit margin pressure, the effects of additional actions taken to become more efficient or lower costs, risks related to the integration of acquired businesses, changes in legal and regulatory matters, and the company’s ability to generate additional cash flow. Forward-looking statements are those statements which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as "expects," "anticipates," "intends," "plans," "may," "will," "believes," "seeks," "estimates," and similar expressions. 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.
For a further discussion of factors to consider in connection with these forward-looking statements, investors should refer to Item 1A Risk Factors of the company’s Annual Report on Form 10-K for the year ended December 31, 2014.
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 relating to sales, operating income, net income attributable to shareholders, and net income per basic and diluted share. The company provides sales on a non-GAAP basis adjusted for the impact of changes in foreign currencies and the impact of acquisitions by adjusting the company's prior periods to include the sales of businesses acquired as if the acquisitions had occurred at the beginning of the earliest period presented (referred to as "impact of acquisitions"). Operating income, net income attributable to shareholders, and net income per basic and diluted share are adjusted for certain charges, credits, gains, and losses that the company believes impact the comparability of its results of operations. These charges, credits, gains, and losses arise out of the company’s efficiency enhancement initiatives, acquisitions (including intangible assets amortization expense), trade name impairment charge, sale of investment, prepayment of debt, and adjustments related to certain tax matters. A reconciliation of the company’s non-GAAP financial information to GAAP is set forth in the tables below.
The company believes that such non-GAAP financial information is useful to investors to assist in assessing and understanding the company’s operating performance and underlying trends in the company’s business because management considers these items referred to above to be outside the company’s core operating results. This non-GAAP financial information is among the primary indicators management uses as a basis for evaluating the company’s financial and operating performance. In addition, the company’s Board of Directors may use this non-GAAP financial information in evaluating management performance and setting management compensation.
The presentation of this additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for, or alternative to, sales, operating income, net income and net income per basic and diluted share determined in accordance with GAAP. Analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.
ARROW ELECTRONICS, INC.
(In thousands except per share data)
(Unaudited)
NON-GAAP SALES RECONCILIATION
|
Quarter Ended
December 31,
|
||||||||||||
|
2014
|
2013
|
% Change
|
||||||||||
|
Consolidated sales, as reported
|
$ | 6,396,879 | $ | 6,153,360 | 4.0 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (184,052 | ) | |||||||||
|
Impact of acquisitions
|
- | 171,757 | ||||||||||
|
Consolidated sales, as adjusted
|
$ | 6,396,879 | $ | 6,141,065 | 4.2 | % | ||||||
|
Global components sales, as reported
|
$ | 3,591,212 | $ | 3,437,211 | 4.5 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (76,376 | ) | |||||||||
|
Impact of acquisitions
|
- | 66,549 | ||||||||||
|
Global components sales, as adjusted
|
$ | 3,591,212 | $ | 3,427,384 | 4.8 | % | ||||||
|
|
||||||||||||
|
Europe components sales, as reported
|
$ | 896,334 | $ | 886,840 | 1.1 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (68,967 | ) | |||||||||
|
Impact of acquisitions
|
- | 10,124 | ||||||||||
|
Europe components sales, as adjusted
|
$ | 896,334 | $ | 827,997 | 8.3 | % | ||||||
|
Global ECS sales, as reported
|
$ | 2,805,667 | $ | 2,716,149 | 3.3 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (107,676 | ) | |||||||||
|
Impact of acquisitions
|
- | 105,208 | ||||||||||
|
Global ECS sales, as adjusted
|
$ | 2,805,667 | $ | 2,713,681 | 3.4 | % | ||||||
|
Europe ECS sales, as reported
|
$ | 983,620 | $ | 1,047,283 | (6.1 | )% | ||||||
|
Impact of changes in foreign currencies
|
- | (92,682 | ) | |||||||||
|
Impact of acquisitions
|
- | 55,648 | ||||||||||
|
Europe ECS sales, as adjusted
|
$ | 983,620 | $ | 1,010,249 | (2.6 | )% | ||||||
| Year Ended
December 31,
|
||||||||||||
| 2014 |
2013
|
% Change
|
||||||||||
|
Consolidated sales, as reported
|
$ | 22,768,674 | $ | 21,357,285 | 6.6 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (79,013 | ) | |||||||||
|
Impact of acquisitions
|
160,212 | 1,081,645 | ||||||||||
|
Consolidated sales, as adjusted
|
$ | 22,928,886 | $ | 22,359,917 | 2.5 | % | ||||||
|
Global components sales, as reported
|
$ | 14,313,026 | $ | 13,495,766 | 6.1 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (3,278 | ) | |||||||||
|
Impact of acquisitions
|
78,631 | 320,922 | ||||||||||
|
Global components sales, as adjusted
|
$ | 14,391,657 | $ | 13,813,410 | 4.2 | % | ||||||
|
|
||||||||||||
|
Europe components sales, as reported
|
$ | 3,819,427 | $ | 3,590,311 | 6.4 | % | ||||||
|
Impact of changes in foreign currencies
|
- | 9,794 | ||||||||||
|
Impact of acquisitions
|
15,744 | 47,683 | ||||||||||
|
Europe components sales, as adjusted
|
$ | 3,835,171 | $ | 3,647,788 | 5.1 | % | ||||||
|
Global ECS sales, as reported
|
$ | 8,455,648 | $ | 7,861,519 | 7.6 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (75,735 | ) | |||||||||
|
Impact of acquisitions
|
81,581 | 760,723 | ||||||||||
|
Global ECS sales, as adjusted
|
$ | 8,537,229 | $ | 8,546,507 | (0.1 | )% | ||||||
|
Europe ECS sales, as reported
|
$ | 3,044,677 | $ | 2,631,258 | 15.7 | % | ||||||
|
Impact of changes in foreign currencies
|
- | (42,231 | ) | |||||||||
|
Impact of acquisitions
|
- | 531,395 | ||||||||||
|
Europe ECS sales, as adjusted
|
$ | 3,044,677 | $ | 3,120,422 | (2.4 | )% | ||||||
ARROW ELECTRONICS, INC.
(In thousands except per share data)
(Unaudited)
NON-GAAP EARNINGS RECONCILIATION
|
Quarter Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||
|
Operating income, as reported
|
$ | 176,432 | $ | 237,337 | $ | 762,257 | $ | 693,500 | ||||||||
|
Intangible assets amortization expense
|
11,138 | 10,007 | 44,063 | 36,769 | ||||||||||||
|
Restructuring, integration, and other charges
|
14,660 | 18,248 | 39,841 | 92,650 | ||||||||||||
|
Trade name impairment charge
|
78,000 | - | 78,000 | - | ||||||||||||
|
Operating income, as adjusted
|
$ | 280,230 | $ | 265,592 | $ | 924,161 | $ | 822,919 | ||||||||
|
|
||||||||||||||||
|
Net income attributable to shareholders, as reported
|
$ | 116,177 | $ | 134,831 | $ | 498,045 | $ | 399,420 | ||||||||
|
Intangible assets amortization expense
|
9,105 | 8,120 | 35,965 | 29,339 | ||||||||||||
|
Restructuring, integration, and other charges
|
11,222 | 13,341 | 29,324 | 65,601 | ||||||||||||
|
Trade name impairment charge
|
47,911 | - | 47,911 | - | ||||||||||||
|
Gain on sale of investment
|
- | - | (18,269 | ) | - | |||||||||||
|
Loss on prepayment of debt
|
- | - | - | 2,627 | ||||||||||||
|
Settlement of tax matters:
|
||||||||||||||||
|
Income taxes
|
- | 15,447 | - | 20,809 | ||||||||||||
|
Interest (net of taxes)
|
- | 297 | - | 1,236 | ||||||||||||
|
Net income attributable to shareholders, as adjusted
|
$ | 184,415 | $ | 172,036 | $ | 592,976 | $ | 519,032 | ||||||||
|
|
||||||||||||||||
|
Net income per basic share, as reported
|
$ | 1.20 | $ | 1.34 | $ | 5.05 | $ | 3.89 | ||||||||
|
Intangible assets amortization expense
|
.09 | .08 | .36 | .29 | ||||||||||||
|
Restructuring, integration, and other charges
|
.12 | .13 | .30 | .64 | ||||||||||||
|
Trade name impairment charge
|
.49 | - | .49 | - | ||||||||||||
|
Gain on sale of investment
|
- | (.19 | ) | - | ||||||||||||
|
Loss on prepayment of debt
|
- | - | - | .03 | ||||||||||||
|
Settlement of tax matters:
|
||||||||||||||||
|
Income taxes
|
- | .15 | - | .20 | ||||||||||||
|
Interest (net of taxes)
|
- | - | - | .01 | ||||||||||||
|
Net income per basic share, as adjusted
|
$ | 1.91 | $ | 1.71 | $ | 6.01 | $ | 5.06 | ||||||||
|
Net income per diluted share, as reported
|
$ | 1.18 | $ | 1.32 | $ | 4.98 | $ | 3.85 | ||||||||
|
Intangible assets amortization expense
|
.09 | .08 | .36 | .28 | ||||||||||||
|
Restructuring, integration, and other charges
|
.11 | .13 | .29 | .63 | ||||||||||||
|
Trade name impairment charge
|
.49 | - | .48 | - | ||||||||||||
|
Gain on sale of investment
|
- | - | (.18 | ) | - | |||||||||||
|
Loss on prepayment of debt
|
- | - | - | .03 | ||||||||||||
|
Settlement of tax matters:
|
||||||||||||||||
|
Income taxes
|
- | .15 | - | .20 | ||||||||||||
|
Interest (net of taxes)
|
- | - | - | .01 | ||||||||||||
|
Net income per diluted share, as adjusted
|
$ | 1.88 | $ | 1.69 | $ | 5.93 | $ | 5.01 | ||||||||
The sum of the components for basic and diluted net income per share, as adjusted, may not agree to totals, as presented, due to rounding.
ARROW ELECTRONICS, INC.
(In thousands except per share data)
(Unaudited)
SEGMENT INFORMATION
|
Quarter Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||
|
Sales:
|
||||||||||||||||
|
Global components
|
$ | 3,591,212 | $ | 3,437,211 | $ | 14,313,026 | $ | 13,495,766 | ||||||||
|
Global ECS
|
2,805,667 | 2,716,149 | 8,455,648 | 7,861,519 | ||||||||||||
|
Consolidated
|
$ | 6,396,879 | $ | 6,153,360 | $ | 22,768,674 | $ | 21,357,285 | ||||||||
|
Operating income (loss):
|
||||||||||||||||
|
Global components
|
$ | 153,753 | $ | 143,078 | $ | 653,992 | $ | 575,612 | ||||||||
|
Global ECS
|
160,251 | 148,372 | 389,571 | 350,442 | ||||||||||||
|
Corporate (a)
|
(137,572 | ) | (54,113 | ) | (281,306 | ) | (232,554 | ) | ||||||||
|
Consolidated
|
$ | 176,432 | $ | 237,337 | $ | 762,257 | $ | 693,500 | ||||||||
|
(a)
|
Includes restructuring, integration, and other charges of $14.7 million and $39.8 million for the quarter and year ended December 31, 2014, respectively, and $18.2 million and $92.7 million for the quarter and year ended December 31, 2013, respectively. Also included is a non-cash impairment charge of $78.0 million for the quarter and year ended December 31, 2014 which is related to the discontinuation of a trade name of a business in the global ECS business segment.
|
NON-GAAP SEGMENT RECONCILIATION
|
Quarter Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||
|
Global components operating income, as reported
|
$ | 153,753 | $ | 143,078 | $ | 653,992 | $ | 575,612 | ||||||||
|
Intangible assets amortization expense
|
5,463 | 5,090 | 21,962 | 20,038 | ||||||||||||
|
Global components operating income, as adjusted
|
$ | 159,216 | $ | 148,168 | $ | 675,954 | $ | 595,650 | ||||||||
|
Global ECS operating income, as reported
|
$ | 160,251 | $ | 148,372 | $ | 389,571 | $ | 350,442 | ||||||||
|
Intangible assets amortization expense
|
5,675 | 4,917 | 22,101 | 16,731 | ||||||||||||
|
Global ECS operating income, as adjusted
|
$ | 165,926 | $ | 153,289 | $ | 411,672 | $ | 367,173 | ||||||||
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
|
Quarter Ended
December 31,
|
Year Ended
December 31,
|
|||||||||||||||
|
2014
|
2013
|
2014
|
2013
|
|||||||||||||
| (Unaudited) | ||||||||||||||||
|
Sales
|
$ | 6,396,879 | $ | 6,153,360 | $ | 22,768,674 | $ | 21,357,285 | ||||||||
|
Costs and expenses:
|
||||||||||||||||
|
Cost of sales
|
5,581,020 | 5,365,735 | 19,772,779 | 18,566,356 | ||||||||||||
|
Selling, general, and administrative expenses
|
506,074 | 497,439 | 1,959,749 | 1,873,638 | ||||||||||||
|
Depreciation and amortization
|
40,693 | 34,601 | 156,048 | 131,141 | ||||||||||||
|
Restructuring, integration, and other charges
|
14,660 | 18,248 | 39,841 | 92,650 | ||||||||||||
|
Trade name impairment charge
|
78,000 | - | 78,000 | - | ||||||||||||
| 6,220,447 | 5,916,023 | 22,006,417 | 20,663,785 | |||||||||||||
|
Operating income
|
176,432 | 237,337 | 762,257 | 693,500 | ||||||||||||
|
Equity in earnings of affiliated companies
|
2,528 | 2,202 | 7,318 | 7,429 | ||||||||||||
|
Gain on sale of investment
|
- | - | 29,743 | - | ||||||||||||
|
Loss on prepayment of debt
|
- | - | - | 4,277 | ||||||||||||
|
Interest and other financing expense, net
|
29,906 | 27,537 | 115,985 | 114,433 | ||||||||||||
|
Income before income taxes
|
149,054 | 212,002 | 683,333 | 582,219 | ||||||||||||
|
Provision for income taxes
|
32,768 | 77,083 | 184,943 | 182,343 | ||||||||||||
|
Consolidated net income
|
116,286 | 134,919 | 498,390 | 399,876 | ||||||||||||
|
Noncontrolling interests
|
109 | 88 | 345 | 456 | ||||||||||||
|
Net income attributable to shareholders
|
$ | 116,177 | $ | 134,831 | $ | 498,045 | $ | 399,420 | ||||||||
|
Net income per share:
|
||||||||||||||||
|
Basic
|
$ | 1.20 | $ | 1.34 | $ | 5.05 | $ | 3.89 | ||||||||
|
Diluted
|
$ | 1.18 | $ | 1.32 | $ | 4.98 | $ | 3.85 | ||||||||
|
Weighted average shares outstanding:
|
||||||||||||||||
|
Basic
|
96,794 | 100,513 | 98,675 | 102,559 | ||||||||||||
|
Diluted
|
98,102 | 101,850 | 99,947 | 103,699 | ||||||||||||
ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
|
December 31,
|
||||||||
|
2014
|
2013
|
|||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash and cash equivalents
|
$ | 400,355 | $ | 390,602 | ||||
|
Accounts receivable, net
|
6,043,850 | 5,769,759 | ||||||
|
Inventories
|
2,335,257 | 2,167,287 | ||||||
|
Other current assets
|
253,145 | 258,122 | ||||||
|
Total current assets
|
9,032,607 | 8,585,770 | ||||||
|
Property, plant, and equipment, at cost:
|
||||||||
|
Land
|
23,770 | 24,051 | ||||||
|
Buildings and improvements
|
144,530 | 142,583 | ||||||
|
Machinery and equipment
|
1,146,045 | 1,113,987 | ||||||
| 1,314,345 | 1,280,621 | |||||||
|
Less: Accumulated depreciation and amortization
|
(678,046 | ) | (648,232 | ) | ||||
|
Property, plant, and equipment, net
|
636,299 | 632,389 | ||||||
|
Investments in affiliated companies
|
69,124 | 67,229 | ||||||
|
Intangible assets, net
|
335,711 | 426,069 | ||||||
|
Cost in excess of net assets of companies acquired
|
2,069,209 | 2,039,293 | ||||||
|
Other assets
|
299,906 | 310,133 | ||||||
|
Total assets
|
$ | 12,442,856 | $ | 12,060,883 | ||||
|
LIABILITIES AND EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Accounts payable
|
$ | 5,027,103 | $ | 4,503,200 | ||||
|
Accrued expenses
|
797,464 | 774,868 | ||||||
|
Short-term borrowings, including current portion of long-term debt
|
13,454 | 23,878 | ||||||
|
Total current liabilities
|
5,838,021 | 5,301,946 | ||||||
|
Long-term debt
|
2,075,453 | 2,226,132 | ||||||
|
Other liabilities
|
370,471 | 347,977 | ||||||
|
Equity:
|
||||||||
|
Shareholders' equity:
|
||||||||
|
Common stock, par value $1:
|
||||||||
|
Authorized – 160,000 shares in both 2014 and 2013
|
||||||||
|
Issued – 125,424 shares in both 2014 and 2013
|
125,424 | 125,424 | ||||||
|
Capital in excess of par value
|
1,086,082 | 1,071,075 | ||||||
|
Treasury stock (29,529 and 25,488 shares in 2014 and
2013, respectively), at cost
|
(1,169,673 | ) | (920,528 | ) | ||||
|
Retained earnings
|
4,176,754 | 3,678,709 | ||||||
|
Accumulated other comprehensive income
|
(64,617 | ) | 225,552 | |||||
|
Total shareholders' equity
|
4,153,970 | 4,180,232 | ||||||
|
Noncontrolling interests
|
4,941 | 4,596 | ||||||
|
Total equity
|
4,158,911 | 4,184,828 | ||||||
|
Total liabilities and equity
|
$ | 12,442,856 | $ | 12,060,883 | ||||
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
Quarter Ended
December 31,
|
||||||||
|
2014
|
2013
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Consolidated net income
|
$ | 116,286 | $ | 134,919 | ||||
|
Adjustments to reconcile consolidated net income to net cash provided by operations:
|
||||||||
|
Depreciation and amortization
|
40,693 | 34,601 | ||||||
|
Amortization of stock-based compensation
|
10,647 | 12,676 | ||||||
|
Equity in earnings of affiliated companies
|
(2,528 | ) | (2,202 | ) | ||||
|
Deferred income taxes
|
(37,112 | ) | (15,038 | ) | ||||
|
Restructuring, integration, and other charges
|
11,222 | 13,341 | ||||||
|
Trade name impairment charge
|
78,000 | - | ||||||
|
Gain on sale of investment
|
- | - | ||||||
|
Excess tax benefits from stock-based compensation arrangements
|
(152 | ) | (235 | ) | ||||
|
Other
|
657 | 725 | ||||||
|
Change in assets and liabilities, net of effects of acquired businesses:
|
||||||||
|
Accounts receivable
|
(1,078,058 | ) | (959,428 | ) | ||||
|
Inventories
|
(112,860 | ) | 72,903 | |||||
|
Accounts payable
|
1,260,888 | 808,163 | ||||||
|
Accrued expenses
|
162,561 | 80,044 | ||||||
|
Other assets and liabilities
|
6,809 | 34,577 | ||||||
|
Net cash provided by operating activities
|
457,053 | 215,046 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Cash consideration paid for acquired businesses
|
(33,359 | ) | (324,548 | ) | ||||
|
Acquisition of property, plant, and equipment
|
(34,624 | ) | (30,697 | ) | ||||
|
Net cash used for investing activities
|
(67,983 | ) | (355,245 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Change in short-term and other borrowings
|
(3,298 | ) | (9,058 | ) | ||||
|
Proceeds from (repayment of) long-term bank borrowings, net
|
(134,800 | ) | 314,300 | |||||
|
Proceeds from exercise of stock options
|
775 | 5,646 | ||||||
|
Excess tax benefits from stock-based compensation arrangements
|
152 | 235 | ||||||
|
Repurchases of common stock
|
(115,352 | ) | (50,180 | ) | ||||
|
Other
|
(1,499 | ) | - | |||||
|
Net cash provided by (used for) financing activities
|
(254,022 | ) | 260,943 | |||||
|
Effect of exchange rate changes on cash
|
7,074 | 18,068 | ||||||
|
Net increase in cash and cash equivalents
|
142,122 | 138,812 | ||||||
|
Cash and cash equivalents at beginning of period
|
258,233 | 251,790 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 400,355 | $ | 390,602 | ||||
ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
|
Year Ended
December 31,
|
||||||||
|
2014
|
2013
|
|||||||
|
Cash flows from operating activities:
|
||||||||
|
Consolidated net income
|
$ | 498,390 | $ | 399,876 | ||||
|
Adjustments to reconcile consolidated net income to net cash provided by operations:
|
||||||||
|
Depreciation and amortization
|
156,048 | 131,141 | ||||||
|
Amortization of stock-based compensation
|
41,930 | 36,923 | ||||||
|
Equity in earnings of affiliated companies
|
(7,318 | ) | (7,429 | ) | ||||
|
Deferred income taxes
|
(25,744 | ) | 273 | |||||
|
Restructuring, integration, and other charges
|
29,324 | 65,601 | ||||||
|
Trade name impairment charge
|
78,000 | - | ||||||
|
Gain on sale of investment
|
(18,269 | ) | - | |||||
|
Excess tax benefits from stock-based compensation arrangements
|
(7,129 | ) | (7,172 | ) | ||||
|
Other
|
2,686 | 3,534 | ||||||
|
Change in assets and liabilities, net of effects of acquired businesses:
|
||||||||
|
Accounts receivable
|
(521,613 | ) | (572,886 | ) | ||||
|
Inventories
|
(210,789 | ) | (21,277 | ) | ||||
|
Accounts payable
|
628,697 | 446,814 | ||||||
|
Accrued expenses
|
12,396 | (123,969 | ) | |||||
|
Other assets and liabilities
|
16,692 | 99,262 | ||||||
|
Net cash provided by operating activities
|
673,301 | 450,691 | ||||||
|
Cash flows from investing activities:
|
||||||||
|
Cash consideration paid for acquired businesses
|
(162,881 | ) | (367,940 | ) | ||||
|
Acquisition of property, plant, and equipment
|
(122,505 | ) | (116,162 | ) | ||||
|
Proceeds from sale of investment
|
40,542 | - | ||||||
|
Purchase of cost method investments
|
- | (3,000 | ) | |||||
|
Net cash used for investing activities
|
(244,844 | ) | (487,102 | ) | ||||
|
Cash flows from financing activities:
|
||||||||
|
Change in short-term and other borrowings
|
(12,541 | ) | (31,340 | ) | ||||
|
Proceeds from (repayment of) long-term bank borrowings, net
|
(145,000 | ) | 71,400 | |||||
|
Net proceeds from note offering
|
- | 591,156 | ||||||
|
Redemption of senior notes
|
- | (338,184 | ) | |||||
|
Proceeds from exercise of stock options
|
21,788 | 36,014 | ||||||
|
Excess tax benefits from stock-based compensation arrangements
|
7,129 | 7,172 | ||||||
|
Repurchases of common stock
|
(304,763 | ) | (362,793 | ) | ||||
|
Other
|
(1,499 | ) | - | |||||
|
Net cash used for financing activities
|
(434,886 | ) | (26,575 | ) | ||||
|
Effect of exchange rate changes on cash
|
16,182 | 43,904 | ||||||
|
Net increase (decrease) in cash and cash equivalents
|
9,753 | (19,082 | ) | |||||
|
Cash and cash equivalents at beginning of period
|
390,602 | 409,684 | ||||||
|
Cash and cash equivalents at end of period
|
$ | 400,355 | $ | 390,602 | ||||