|  View printer-friendly version | | << Back | | Arrow Electronics to Record Non-Cash Impairment Charges | | MELVILLE, N.Y., Feb 26, 2009 (BUSINESS WIRE) -- Arrow Electronics, Inc. (NYSE:ARW) announced today that the company has
completed its impairment testing of goodwill in accordance with
Statement of Financial Accounting Standards No. 142. As a result of the
global economic downturn and the related decline in the equity markets,
the company concluded that a portion of its goodwill was impaired and
has recorded a non-cash impairment charge of $1.02 billion ($905.1
million net of related taxes or $7.49 per share on both a basic and
diluted basis), of which $716.9 million related to the company's global
components business segment and $301.9 million related to the company's
global ECS business segment. Similarly, during the fourth quarter of
2008, the company determined that an other-than-temporary decline in the
fair value of its investment in Marubun Corporation had occurred and,
accordingly, recognized a loss of $10.0 million ($0.08 per share on a
basic and diluted basis) on the write-down of this investment.
These non-cash impairment charges do not impact the company's
consolidated cash flows, liquidity and capital resources. The company's
covenants under its existing revolving credit facility, asset
securitization program, and other credit arrangements are also not
impacted. Full financial details of the impact of the non-cash charges
can be found in the company's Form 10-K, filed today with the Securities
and Exchange Commission.
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. Headquartered in Melville, N.Y., Arrow serves as a supply
channel partner for approximately 800 suppliers and 130,000 original
equipment manufacturers, contract manufacturers and commercial customers
through a global network of more than 340 locations in 53 countries and
territories.
SOURCE: Arrow Electronics, Inc.
Arrow Electronics, Inc.
Michael Taunton, 631-847-5680
Vice President and Treasurer
or
Paul J. Reilly, 631-847-1872
Senior Vice President & Chief Financial Officer
or
Media:
John Hourigan, 303-824-4586
Director, External Communications
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