Skip to main content

    Arrow Electronics, Inc.

    Press Release Details

    Strategy Overview

    View all news

    Arrow Electronics Reports Fourth-Quarter and Year-End 2018 Results

    February 07, 2019

    -- Record Fourth-Quarter and Full-Year Sales, Gross Profit and Operating Income --

    -- Full-Year 2018 Sales Advanced $3 Billion Over Full-Year 2017 --

    CENTENNIAL, Colo.--(BUSINESS WIRE)-- Arrow Electronics, Inc. (NYSE:ARW) today reported fourth-quarter 2018 sales of $7.92 billion, an increase of 5 percent from sales of $7.54 billion in the fourth quarter of 2017. Fourth-quarter net income of $231 million, or $2.63 per share on a diluted basis, compared with net income of $54 million, or $.60 per share on a diluted basis, in the fourth quarter of 2017. Excluding certain items1, net income would have been $225 million, or $2.57 per share on a diluted basis, in the fourth quarter of 2018, compared with net income of $222 million, or $2.49 per share on a diluted basis, in the fourth quarter of 2017. In the fourth quarter of 2018, changes in foreign currencies had negative impacts on growth of approximately $107 million or 2 percent on sales and $.06 or 3 percent on earnings per share on a diluted basis compared to the fourth quarter of 2017.

    “We are helping customers create, make, and manage their electronic products at unmatched scale. This is driving tremendous growth for our suppliers, and for Arrow, as evidenced by our second consecutive year of growing sales by more than $3 billion,” said Michael J. Long, chairman, president, and chief executive officer. “We are proud to be enabling next-generation technologies and products that are making our world better.”

    Global components fourth-quarter sales of $5.26 billion increased 6 percent year over year. Americas components sales increased 5 percent year over year. Europe components sales increased 9 percent year over year. Sales in the region, as adjusted, increased 13 percent year over year. Asia-Pacific components sales increased 7 percent year over year. “We are well-aligned to the long-term trends of growing electronic content in key end markets such as transportation, industrial, and aerospace and defense,” said Mr. Long.

    Global enterprise computing solutions fourth-quarter sales of $2.66 billion increased 2 percent year over year. Global enterprise computing solutions sales, as adjusted, increased 6 percent year over year. Americas sales increased 4 percent year over year. Sales in the region, as adjusted, increased 9 percent year over year. Europe sales decreased 1 percent year over year. Sales in the region, as adjusted, were flat year over year. “We have positioned the company to lead the edge computing paradigm with our leading software, hardware, and security capabilities,” added Mr. Long.

    FULL-YEAR RESULTS

    Full-year 2018 sales of $29.68 billion increased 12 percent from sales of $26.55 billion in 2017. Net income for 2018 was $716 million, or $8.10 per share on a diluted basis, compared with net income of $402 million, or $4.48 per share on a diluted basis, in 2017. Excluding certain items1, net income would have been $781 million, or $8.83 per share on a diluted basis, in 2018 compared with net income of $674 million, or $7.51 per share on a diluted basis, in 2017. In 2018, changes in foreign currencies had positive impacts on growth of approximately $252 million, or 1 percent on sales, and $.06, or 1 percent, on earnings per share on a diluted basis compared to 2017.

    “We executed well in 2018, and continue to see good returns on our organic investments. Operating income, excluding certain items1, increased 16 percent compared to a 12 percent increase in sales. Fourth-quarter cash flow from operations was $263 million as our business model generates substantial cash in lower growth environments,” said Chris Stansbury, senior vice president and chief financial officer. “In the fourth quarter, we reduced leverage, and we returned approximately $150 million to shareholders through our stock repurchase program. With the recent authorization of an additional $600 million of repurchases, we had approximately $729 million of remaining authorization under our share repurchase programs at the end of the year.”

    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 $6.775 billion and $7.175 billion, with global components sales between $4.975 billion and $5.175 billion, and global enterprise computing solutions sales between $1.8 billion and $2.0 billion. As a result of this outlook, we expect earnings per share on a diluted basis, to be in the range of $1.61 to $1.73, and earnings per share on a diluted basis, excluding certain items1, to be in the range of $1.84 to $1.96 per share. Our guidance assumes an average tax rate at the high end of the long-term range of 23.5 to 25.5 percent, and average diluted shares outstanding of 87 million. We are expecting interest expense will total approximately $58 million. We are expecting the average USD-to-Euro exchange rate for the first quarter to be approximately $1.14 to €1. We estimate changes in foreign currencies will have a negative impact on growth of approximately $160 million, or 2 percent on sales, and $.08, or 4 percent, on earnings per share on a diluted basis compared to the first quarter of 2018,” said Mr. Stansbury.

    Please refer to the CFO commentary, which can be found at investor.arrow.com, as a supplement to the company’s earnings release.

    Arrow Electronics guides innovation forward for over 200,000 leading technology manufacturers and service providers. With 2018 sales of $30 billion, Arrow develops technology solutions that improve business and daily life. Learn more at fiveyearsout.com.

    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, 2018.

    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/dispositions by adjusting the company's operating results, including the amortization expense related to acquired/disposed intangible assets, as if the acquisitions/dispositions had occurred at the beginning of the earliest period presented (referred to as "impact of acquisitions" and "impact of dispositions"). Operating income, net income attributable to shareholders, and net income per basic and diluted share are adjusted to exclude identifiable intangible amortization, restructuring, integration, and other charges, and 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/dispositions (including intangible assets amortization expense), the impact of tax reform, and financing activities. 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.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands except per share data)
     
           
    Quarter Ended Year Ended
    December 31, 2018     December 31, 2017 December 31, 2018     December 31, 2017
    (Unaudited) (Unaudited / Adjusted) (Adjusted)
    Sales $ 7,918,182 $ 7,539,449 $ 29,676,768 $ 26,554,563
    Cost of sales 6,942,812   6,610,269   25,975,856   23,197,595  
    Gross profit 975,370 929,180 3,700,912 3,356,968
    Operating expenses:
    Selling, general, and administrative expenses 583,943 562,082 2,303,051 2,162,045
    Depreciation and amortization 47,183 40,503 186,384 153,599
    Loss on disposition of businesses, net — 21,000 3,604 21,000
    Restructuring, integration, and other charges 9,864   18,771   60,361   74,588  
    640,990   642,356   2,553,400   2,411,232  
    Operating income 334,380 286,824 1,147,512 945,736
    Equity in earnings (losses) of affiliated companies (1,524 ) 559 (2,332 ) 3,424
    Gain (loss) on investments, net (10,221 ) 2,207 (14,166 ) (6,577 )
    Loss on extinguishment of debt — — — 59,545
    Employee benefit plan expense 3,086 18,322 6,870 23,869
    Interest and other financing expense, net 54,584   44,354   214,771   165,252  
    Income before income taxes 264,965 226,914 909,373 693,917
    Provision for income taxes 32,474   171,413   187,799   286,541  
    Consolidated net income 232,491 55,501 721,574 407,376
    Noncontrolling interests 1,838   1,848   5,379   5,200  
    Net income attributable to shareholders $ 230,653   $ 53,653   $ 716,195   $ 402,176  
     
    Net income per share:
    Basic $ 2.66   $ 0.61   $ 8.19   $ 4.54  
    Diluted $ 2.63   $ 0.60   $ 8.10   $ 4.48  
     
    Weighted average shares outstanding:
    Basic 86,559 88,120 87,476 88,681
    Diluted 87,561 89,278 88,444 89,766
     
     
    ARROW ELECTRONICS, INC.
    CONSOLIDATED BALANCE SHEETS
    (In thousands except par value)
           
    December 31, 2018 December 31, 2017
    (Adjusted)
    ASSETS
    Current assets:
    Cash and cash equivalents $ 509,327 $ 730,083
    Accounts receivable, net 8,945,463 8,125,588
    Inventories 3,878,678 3,302,518
    Other current assets 274,832   256,028  
    Total current assets 13,608,300   12,414,217  
    Property, plant, and equipment, at cost:
    Land 7,882 12,866
    Buildings and improvements 158,712 160,664
    Machinery and equipment 1,425,933   1,330,730  
    1,592,527 1,504,260
    Less: Accumulated depreciation and amortization (767,827 ) (665,785 )
    Property, plant, and equipment, net 824,700   838,475  
    Investments in affiliated companies 83,693 88,347
    Intangible assets, net 372,644 286,215
    Goodwill 2,624,690 2,470,047
    Other assets 270,418   361,966  
    Total assets $ 17,784,445   $ 16,459,267  
    LIABILITIES AND EQUITY
    Current liabilities:
    Accounts payable $ 7,631,879 $ 6,756,830
    Accrued expenses 912,292 841,675
    Short-term borrowings, including current portion of long-term debt 246,257   356,806  
    Total current liabilities 8,790,428   7,955,311  
    Long-term debt 3,239,115 2,933,045
    Other liabilities 378,536 572,971
    Equity:
    Shareholders' equity:
    Common stock, par value $1:
    Authorized – 160,000 shares in both 2018 and 2017
    Issued – 125,424 shares in both 2018 and 2017 125,424 125,424
    Capital in excess of par value 1,135,934 1,114,167
    Treasury stock (40,233 and 37,733 shares in 2018 and 2017, respectively), at cost (1,972,254 ) (1,762,239 )
    Retained earnings 6,335,335 5,596,786
    Accumulated other comprehensive loss (299,449 ) (124,883 )
    Total shareholders' equity 5,324,990 4,949,255
    Noncontrolling interests 51,376   48,685  
    Total equity 5,376,366   4,997,940  
    Total liabilities and equity $ 17,784,445   $ 16,459,267  
     
     
    ARROW ELECTRONICS, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
    (Unaudited)
       
    Quarter Ended
    December 31, 2018     December 31, 2017
    Cash flows from operating activities:
    Consolidated net income $ 232,491 $ 55,501
    Adjustments to reconcile consolidated net income to net cash provided by operations:
    Depreciation and amortization 47,183 40,503
    Amortization of stock-based compensation 8,134 8,821
    Equity in (earnings) losses of affiliated companies 1,524 (559 )
    Deferred income taxes (16,533 ) 25,150
    (Gain) loss on investment, net 10,221 (1,484 )
    Loss on disposition of businesses, net — 21,000
    Other 3,142 3,051
    Change in assets and liabilities, net of effects of acquired and disposed businesses:
    Accounts receivable (752,891 ) (1,052,808 )
    Inventories (162,825 ) (118,709 )
    Accounts payable 764,726 930,406
    Accrued expenses 96,946 37,254
    Other assets and liabilities 31,016   174,652  
    Net cash provided by operating activities 263,134   122,778  
     
    Cash flows from investing activities:
    Acquisition of property, plant, and equipment (30,439 ) (54,352 )
    Proceeds from sale of property, plant, and equipment 5,421 —
    Cash paid for customer relationship intangible asset (20,000 ) —
    Other (2,500 ) (3,147 )
    Net cash used for investing activities (47,518 ) (57,499 )
     
    Cash flows from financing activities:
    Change in short-term and other borrowings 88,034 (26,893 )
    Proceeds from (repayment of) long-term bank borrowings, net (114,120 ) 130,526
    Proceeds from exercise of stock options 900 772
    Repurchases of common stock (150,132 ) (25,114 )
    Other —   (3,942 )
    Net cash provided by (used for) financing activities (175,318 ) 75,349  
    Effect of exchange rate changes on cash (5,162 ) 5,116  
    Net increase in cash and cash equivalents 35,136 145,744
    Cash and cash equivalents at beginning of period 474,191   584,339  
    Cash and cash equivalents at end of period $ 509,327   $ 730,083  
     
     
    ARROW ELECTRONICS, INC.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
     
        Year Ended
    December 31, 2018     December 31, 2017
    Cash flows from operating activities:
    Consolidated net income $ 721,574 $ 407,376
    Adjustments to reconcile consolidated net income to net cash provided by operations:
    Depreciation and amortization 186,384 153,599
    Amortization of stock-based compensation 46,238 39,122
    Equity in (earnings) losses of affiliated companies 2,332 (3,424 )
    Loss on extinguishment of debt — 59,545
    Deferred income taxes 1,236 38,412
    (Gain) loss on investment, net 14,166 8,020
    Loss on disposition of businesses, net 3,604 21,000
    Impairment of property, plant and equipment — 4,761
    Other 9,198 5,705
    Change in assets and liabilities, net of effects of acquired and disposed businesses:
    Accounts receivable (1,007,308 ) (1,079,094 )
    Inventories (618,875 ) (379,835 )
    Accounts payable 936,423 816,602
    Accrued expenses 112,123 (5,013 )
    Other assets and liabilities (134,405 ) 37,781  
    Net cash provided by operating activities 272,690   124,557  
     
    Cash flows from investing activities:
    Cash consideration paid for acquired businesses, net of cash acquired (331,563 ) (3,628 )
    Proceeds from disposition of businesses 32,013 —
    Acquisition of property, plant, and equipment (135,336 ) (203,949 )
    Proceeds from sale of property, plant and equipment 5,421 24,433
    Cash paid for customer relationship intangible asset (20,000 ) —
    Other (13,500 ) (5,614 )
    Net cash used for investing activities (462,965 ) (188,758 )
     
    Cash flows from financing activities:
    Change in short-term and other borrowings 192,192 (41,316 )
    Proceeds from long-term bank borrowings, net 306,635 47,760
    Proceeds from note offering, net — 986,203
    Redemption of notes (300,000 ) (558,887 )
    Proceeds from exercise of stock options 8,819 22,195
    Repurchases of common stock (243,305 ) (174,239 )
    Purchase of shares from noncontrolling interest — (23,350 )
    Other (1,174 ) (1,620 )
    Net cash provided by (used for) financing activities (36,833 ) 256,746  
    Effect of exchange rate changes on cash 6,352   3,218  
    Net increase (decrease) in cash and cash equivalents (220,756 ) 195,763
    Cash and cash equivalents at beginning of period 730,083   534,320  
    Cash and cash equivalents at end of period $ 509,327   $ 730,083  
     
     
    ARROW ELECTRONICS, INC.
    NON-GAAP SALES RECONCILIATION
    (In thousands)
    (Unaudited)
        Quarter Ended    
    December 31, 2018     December 31, 2017 % Change
     
    Consolidated sales, as reported $ 7,918,182 $ 7,539,449 5.0 %
    Impact of changes in foreign currencies — (106,649 )
    Impact of acquisitions — 47,020
    Impact of dispositions —   (58,282 )
    Consolidated sales, as adjusted $ 7,918,182   $ 7,421,538   6.7 %
     
    Global components sales, as reported $ 5,261,477 $ 4,944,942 6.4 %
    Impact of changes in foreign currencies — (58,957 )
    Impact of acquisitions —   21,314  
    Global components sales, as adjusted $ 5,261,477   $ 4,907,299   7.2 %
     
    Americas components sales, as reported $ 2,021,033 $ 1,929,827 4.7 %
    Impact of changes in foreign currencies — (3,536 )
    Impact of acquisitions —   21,314  
    Americas components sales, as adjusted $ 2,021,033   $ 1,947,605   3.8 %
     
    Europe components sales, as reported $ 1,407,429 $ 1,296,142 8.6 %
    Impact of changes in foreign currencies — (47,249 )
    Impact of acquisitions —   —  
    Europe components sales, as adjusted $ 1,407,429   $ 1,248,893   12.7 %
     
    Asia components sales, as reported $ 1,833,015 $ 1,718,973 6.6 %
    Impact of changes in foreign currencies — (8,172 )
    Impact of acquisitions —   —  
    Asia components sales, as adjusted $ 1,833,015   $ 1,710,801   7.1 %
     
    Global ECS sales, as reported $ 2,656,705 $ 2,594,507 2.4 %
    Impact of changes in foreign currencies — (47,692 )
    Impact of acquisitions — 25,706
    Impact of dispositions —   (58,282 )
    Global ECS sales, as adjusted $ 2,656,705   $ 2,514,239   5.7 %
     
    Europe ECS sales, as reported $ 954,343 $ 965,216 (1.1 )%
    Impact of changes in foreign currencies — (33,786 )
    Impact of acquisitions — 25,706
    Impact of dispositions —   (1,108 )
    Europe ECS sales, as adjusted $ 954,343   $ 956,028   (0.2 )%
     
    Americas ECS sales, as reported $ 1,702,362 $ 1,629,291 4.5 %
    Impact of changes in foreign currencies — (13,906 )
    Impact of acquisitions — —
    Impact of dispositions —   (57,174 )
    Americas ECS sales, as adjusted $ 1,702,362   $ 1,558,211   9.3 %
     
     
    ARROW ELECTRONICS, INC.
    NON-GAAP SALES RECONCILIATION
    (In thousands)
    (Unaudited)
           
    Year Ended
    December 31, 2018     December 31, 2017 % Change
     
    Consolidated sales, as reported $ 29,676,768 $ 26,554,563 11.8 %
    Impact of changes in foreign currencies — 251,644
    Impact of acquisitions — 157,772
    Impact of dispositions (27,493 ) (229,845 )
    Consolidated sales, as adjusted $ 29,649,275   $ 26,734,134   10.9 %
     
    Global components sales, as reported $ 20,856,851 $ 18,330,456 13.8 %
    Impact of changes in foreign currencies — 174,214
    Impact of acquisitions —   84,789  
    Global components sales, as adjusted $ 20,856,851   $ 18,589,459   12.2 %
     
    Americas components sales, as reported $ 7,816,533 $ 7,010,385 11.5 %
    Impact of changes in foreign currencies — (6,533 )
    Impact of acquisitions —   84,789  
    Americas components sales, as adjusted $ 7,816,533   $ 7,088,641   10.3 %
     
    Europe components sales, as reported $ 5,733,222 $ 4,868,862 17.8 %
    Impact of changes in foreign currencies — 164,573
    Impact of acquisitions —   —  
    Europe components sales, as adjusted $ 5,733,222   $ 5,033,435   13.9 %
     
    Asia components sales, as reported $ 7,307,096 $ 6,451,209 13.3 %
    Impact of changes in foreign currencies — 16,174
    Impact of acquisitions —   —  
    Asia components sales, as adjusted $ 7,307,096   $ 6,467,383   13.0 %
     
    Global ECS sales, as reported $ 8,819,917 $ 8,224,107 7.2 %
    Impact of changes in foreign currencies — 77,430
    Impact of acquisitions — 72,983
    Impact of dispositions (27,493 ) (229,845 )
    Global ECS sales, as adjusted $ 8,792,424   $ 8,144,675   8.0 %
     
    Europe ECS sales, as reported $ 3,077,391 $ 2,835,219 8.5 %
    Impact of changes in foreign currencies — 95,447
    Impact of acquisitions — 72,983
    Impact of dispositions —   (3,991 )
    Europe ECS sales, as adjusted $ 3,077,391   $ 2,999,658   2.6 %
     
    Americas ECS sales, as reported $ 5,742,526 $ 5,388,888 6.6 %
    Impact of changes in foreign currencies — (18,017 )
    Impact of acquisitions — —
    Impact of dispositions (27,493 ) (225,854 )
    Americas ECS sales, as adjusted $ 5,715,033   $ 5,145,017   11.1 %
     
     
    ARROW ELECTRONICS, INC.
    NON-GAAP EARNINGS RECONCILIATION
    (In thousands except per share data)
    (Unaudited)
     
    Three months ended December 31, 2018
        Reported
    GAAP
    measure     		    Intangible
    amortization
    expense     		    Restructuring
    & Integration
    charges     		   

    Impact of the
    Tax Act

    		    Other*     Non-GAAP
    measure
    Operating income $ 334,380 12,261 $ 9,864 $ — — $ 356,505
    Income before income taxes 264,965 12,261 9,864 — 11,886 298,976
    Provision for income taxes 32,474 3,437 4,514 28,323 3,025 71,773
    Consolidated net income 232,491 8,824 5,350 (28,323 ) 8,861 227,203
    Noncontrolling interests 1,838 142 — — — 1,980
    Net income attributable to shareholders $ 230,653 $ 8,682 $ 5,350 $ (28,323 ) $ 8,861 $ 225,223
    Net income per diluted share $ 2.63 $ 0.10 $ 0.06 $ (0.32 ) $ 0.10 $ 2.57
    Effective tax rate 12.3 % 24.0 %
                                         
    Three months ended December 31, 2017 (Adjusted)
    Reported
    GAAP
    measure     		Intangible
    amortization
    expense     		Restructuring
    & Integration
    charges

    Impact of the
    Tax Act

    		Other** Non-GAAP
    measure
    Operating income $ 286,824 12,162 $ 18,771 $ — 21,000 $ 338,757
    Income before income taxes 226,914 12,162 18,771 — 35,499 293,346
    Provision for income taxes 171,413 4,321 4,509 (124,748 ) 13,713 69,208
    Consolidated net income 55,501 7,841 14,262 124,748 21,786 224,138
    Noncontrolling interests 1,848 147 — — — 1,995
    Net income attributable to shareholders $ 53,653 $ 7,694 $ 14,262 $ 124,748 $ 21,786 $ 222,143
    Net income per diluted share $ 0.60 $ 0.09 $ 0.16 $ 1.40 $ 0.24 $ 2.49
    Effective tax rate 75.5 % 23.6 %
                                         
    Year Ended December 31, 2018
    Reported
    GAAP
    measure     		Intangible
    amortization
    expense     		Restructuring
    & Integration
    charges

    Impact of the
    Tax Act

    		Other** Non-GAAP
    measure
    Operating income $ 1,147,512 $ 49,356 $ 60,361 $ — $ 3,604 $ 1,260,833
    Income before income taxes 909,373 49,356 60,361 — 19,435 1,038,525
    Provision for income taxes 187,799 13,458 17,299 28,323 4,678 251,557
    Consolidated net income 721,574 35,898 43,062 (28,323 ) 14,757 786,968
    Noncontrolling interests 5,379 589 — — — 5,968
    Net income attributable to shareholders $ 716,195 $ 35,309 $ 43,062 $ (28,323 ) $ 14,757 $ 781,000
    Net income per diluted share**** $ 8.10 $ 0.40 $ 0.49 $ (0.32 ) $ 0.17 $ 8.83
    Effective tax rate 20.7 % 24.2 %
                                         
    Year Ended December 31, 2017 (Adjusted)
    Reported
    GAAP
    measure     		Intangible
    amortization
    expense     		Restructuring
    & Integration
    charges

    Impact of the
    Tax Act

    		Other*** Non-GAAP
    measure
    Operating income $ 945,736 50,071 $ 74,588 $ — 21,000 $ 1,091,395
    Income before income taxes 693,917 50,071 74,588 — 103,828 922,404
    Provision for income taxes 286,541 17,744 22,401 (124,748 ) 40,070 242,008
    Consolidated net income 407,376 32,327 52,187 124,748 63,758 680,396
    Noncontrolling interests 5,200 701 — — — 5,901
    Net income attributable to shareholders $ 402,176 $ 31,626 $ 52,187 $ 124,748 $ 63,758 $ 674,495
    Net income per diluted share $ 4.48 $ 0.35 $ 0.58 $ 1.39 $ 0.71 $ 7.51
    Effective tax rate 41.3 % 26.2 %
                                         
    *Other includes gain/loss on investments, net, and pension settlement.
    **Other includes gain/loss on investments, net, pension settlement, and loss on disposition of businesses, net.
    ***Other includes gain/loss on investments, net, pension settlement, loss on disposition of businesses, net, and loss on extinguishment of debt.
    ****The sum of the components for diluted EPS as adjusted may not agree to totals as presented due to rounding.
     
     
    ARROW ELECTRONICS, INC.
    SEGMENT INFORMATION
    (In thousands)
    (Unaudited)
               
    Quarter Ended Year Ended
    December 31, 2018     December 31, 2017 December 31, 2018     December 31, 2017
    Sales:
    Global components $ 5,261,477 $ 4,944,942 $ 20,856,851 $ 18,330,456
    Global ECS 2,656,705   2,594,507   8,819,917   8,224,107  
    Consolidated $ 7,918,182   $ 7,539,449   $ 29,676,768   $ 26,554,563  
    Operating income (loss):
    Global components $ 252,313 $ 217,337 $ 1,007,638 $ 801,027
    Global ECS 152,195 161,755 427,605 444,710
    Corporate (a) (70,128 ) (92,268 ) (287,731 ) (300,001 )
    Consolidated $ 334,380   $ 286,824   $ 1,147,512   $ 945,736  
    (a)   Includes restructuring, integration, and other charges of $9.9 million and $60.4 million for the fourth quarter and year ended December 31, 2018 and $18.8 million and $74.6 million for the fourth quarter and year ended December 31, 2017, respectively.
     
     
    NON-GAAP SEGMENT RECONCILIATION
               
    Quarter Ended Year Ended
    December 31, 2018     December 31, 2017 December 31, 2018     December 31, 2017
    Global components operating income, as reported $ 252,313 $ 217,337 $ 1,007,638 $ 801,027
    Intangible assets amortization expense 9,368   6,515   35,367   27,725
    Global components operating income, as adjusted $ 261,681   $ 223,852   $ 1,043,005   $ 828,752
    Global ECS operating income, as reported $ 152,195 $ 161,755 $ 427,605 $ 444,710
    Intangible assets amortization expense 2,893   5,647   13,989   22,346
    Global ECS operating income, as adjusted $ 155,088   $ 167,402   $ 441,594   $ 467,056
     

    Arrow Electronics
    Steven O’Brien
    Vice President, Investor Relations
    303-824-4544
    or
    Media Contact:
    John Hourigan
    Vice President, Global Communications
    303-824-4586

    Source: Arrow Electronics

    Categories: Press Releases
    View all news