Arrow Electronics Reports Fourth-Quarter and Full-Year 2023 Results

View all news Arrow Electronics Reports Fourth-Quarter and Full-Year 2023 Results February 08, 2024 -- 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 Source: Arrow Electronics Categories: Press Releases View all news