Business Wire | Oct 29, 2020 08:00AM EDT

Arrow Electronics Reports Third-Quarter 2020 Results

Oct. 29, 2020

CENTENNIAL, Colo.--(BUSINESS WIRE)--Oct. 29, 2020--Arrow Electronics, Inc. (NYSE:ARW) today reported third-quarter 2020 sales of $7.23 billion, an increase of 2 percent from sales of $7.08 billion in the third quarter of 2019. Third-quarter net income was $166 million, or $2.13 per share on a diluted basis, compared with a net income of $92 million, or $1.10 per share on a diluted basis, in the third quarter of 2019. Non-GAAP net income1 was $162 million, or $2.08 per share on a diluted basis, in the third quarter of 2020, compared with non-GAAP net income of $155 million, or $1.86 per share on a diluted basis, in the third quarter of 2019.

"Our strong financial performance this quarter is a testament to the strength of our business model," said Michael J. Long, chairman, president, and chief executive officer. "Arrow is a trusted provider of critical technology solutions, and we believe strong demand for the products and solutions we provide will endure and increase beyond the COVID-19 pandemic. Customers and suppliers are choosing to do more business with Arrow because of our growing engineering, design, supply chain management and hybrid cloud solution capabilities. The hard work of our talented team and their unwavering focus on providing customers with the products and solutions they need, when they need them, has allowed us to capitalize on opportunities leading to financial performance that was above our expectations."

Global components third-quarter sales of $5.31 billion increased 5 percent year over year. Asia-Pacific components sales increased 29 percent year over year. Americas components sales decreased 13 percent year over year. Non-GAAP sales in the region decreased 10 percent year over year. Europe components sales decreased 8 percent year over year. Non-GAAP sales in the region decreased 12 percent year over year. Global components third-quarter operating income was $204 million. Third-quarter non-GAAP operating income was $208 million.

"Robust third-quarter global components sales demonstrate the vital role we play in the supply chains of manufacturing customers around the world," continued Mr. Long. "Sales were above the high-end of our expectations driven by tremendous growth in Asia, where our business has doubled in size over the last five years due to our consistent investments in the region to support innovation and invention."

Global enterprise computing solutions third-quarter sales of $1.92 billion decreased 5 percent year over year. Non-GAAP sales decreased 7 percent year over year. Europe enterprise computing solutions sales increased 6 percent year over year. Non-GAAP sales in the region increased 1 percent year over year. Americas enterprise computing solutions sales decreased 10 percent year over year. Global enterprise computing solutions third-quarter operating income was $83 million. Third-quarter non-GAAP operating income was $85 million.

"Third-quarter global enterprise computing solutions sales were near the high-end of our prior outlook, led by the cloud and security solutions that enable business continuity and remote working," said Mr. Long. "We continue to be a source of stability for our customers and suppliers facing challenging market conditions."

"Our financial results demonstrated the resilience of Arrow's business model," said Chris Stansbury, senior vice president and chief financial officer. "Third-quarter cash flow from operations was $275 million, driven by disciplined working capital management and healthy profitability from our leading positions in the markets we serve. As always, we remain committed to returning excess cash to shareholders. During the third quarter, we returned approximately $150 million to shareholders through our stock repurchase program, ending the quarter with approximately $563 million of remaining authorization under our share repurchase program. Our balance sheet and liquidity position remain strong, and we are pleased to report that return on invested capital increased year over year for the second straight quarter."

1 A reconciliation of non-GAAP financial measures, including sales, gross profit, operating income, net income attributable to shareholders, and net income per share, to GAAP financial measures is presented in the reconciliation tables included herein.

FOURTH-QUARTER 2020 OUTLOOK

* Consolidated sales of $7.45 billion to $8.05 billion, with global components sales of $5.1 billion to $5.4 billion, and global enterprise computing solutions sales of $2.35 billion to $2.65 billion * Net income per share on a diluted basis of $2.42 to $2.58, and non-GAAP net income per share on a diluted basis1 of $2.57 to $2.73 * Average tax rate of approximately 23.5 percent compared to the long-term range of 23 to 25 percent * Average diluted shares outstanding of 77 million * Interest expense of approximately $33 million * Expecting average USD-to-Euro exchange rate of $1.16 to (euro)1; changes in foreign currencies to increase sales by approximately $110 million, and earnings per share on a diluted basis by $.07 compared to the fourth quarter of 2019

Fourth-Quarter 2020 Outlook

Reported Intangible Restructuring & Non-GAAP GAAP measure amortization integration charges measure expense

Net income per $2.42 - $.10 $.05 $2.57 -diluted share $2.58 $2.73



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 175,000 leading technology manufacturers and service providers. With 2019 sales of $29 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, 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 fourth quarter of fiscal 2020, such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, average diluted shares outstanding, interest expense, average USD-to-Euro exchange rate, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, and expectation regarding market demand. These 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: potential adverse effects of the ongoing global coronavirus pandemic, including actions taken to contain or treat the coronavirus, industry conditions, 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, changes in legal and regulatory matters, non-compliance with certain regulations, such as export, anti-trust, and anti-corruption laws, foreign tax and other loss contingencies, and the company's ability to generate 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 periodic reports on Form 10-K, the Form 10-Q and subsequent filings made 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 relating to sales, operating income, net income attributable to shareholders, and net income per basic and diluted share.

The company provides non-GAAP sales, gross profit, operating income, income before income taxes, provision for income taxes, net income, and net income per share on a diluted basis which are adjusted GAAP measures for the impact of changes in foreign currencies (referred to as "changes in foreign currencies") by re-translating prior period results at current period foreign exchange rates, the impact of dispositions by adjusting the company's operating results for businesses disposed, as if the dispositions had occurred at the beginning of the earliest period presented (referred to as "dispositions"), the impact of the company's personal computer and mobility asset disposition business (referred to as "wind down"), the impact of inventory write-downs and recoveries related to the digital business (referred to as "digital inventory write-downs and recoveries"), and the impact of notes receivable reserves and recoveries and inventory write-downs and recoveries related to the AFS business (referred to as "AFS notes receivable reserves and recoveries" and "AFS inventory write-downs and recoveries," respectively). Non-GAAP operating income excludes identifiable intangible asset amortization, restructuring, integration, and other charges, loss on disposition of businesses, net, AFS notes receivable reserves and recoveries and inventory write-downs and recoveries, digital inventory write-downs and recoveries, the impact of non-cash charges related to goodwill, trade names, and long-lived assets, and the impact of wind down. Net income attributable to shareholders, and net income per basic and diluted share as adjusted to exclude identifiable intangible asset amortization, restructuring, integration, and other charges, loss on disposition of businesses, net, AFS notes receivable reserves and recoveries and inventory write-downs and recoveries, digital inventory write-downs and recoveries, net gains and losses on investments, the impact of non-cash charges related to goodwill, trade names, and long-lived assets, certain tax adjustments, pension settlement gain, and the impact of wind down. 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)

(Unaudited)



Quarter Ended Nine Months Ended

September 26, September 28, September 26, September 28, 2020 2019 2020 2019



Sales $ 7,231,260 $ 7,078,118 $ 20,219,171 $ 21,578,657

Cost of sales 6,442,670 6,279,277 17,951,727 19,103,219

Gross profit 788,590 798,841 2,267,444 2,475,438

Operating expenses:

Selling,general, and 504,211 522,446 1,539,520 1,677,734 administrativeexpenses

Depreciation and 46,732 45,231 140,654 139,739 amortization

Loss ondisposition of - 14,573 - 15,439 businesses, net

Impairments 2,305 253 7,223 698,246

Restructuring,integration, and (2,840) 43,120 6,948 74,692 other charges(credits)

550,408 625,623 1,694,345 2,605,850

Operating income 238,182 173,218 573,099 (130,412) (loss)

Equity inearnings(losses) of 61 (1,070) 308 (2,155) affiliatedcompanies

Gain (loss) on 2,726 1,126 (3,183) 7,864 investments, net

Employee benefitplan (expense) 595 (1,071) (1,687) (3,349) credit

Interest andother financing (30,461) (49,882) (105,596) (153,426) expense, net

Income (loss)before income 211,103 122,321 462,941 (281,478) taxes

Provision for 44,707 29,340 113,453 30,878 income taxes

Consolidated net 166,396 92,981 349,488 (312,356) income (loss)

Noncontrolling 336 850 1,121 3,744 interests

Net income(loss) $ 166,060 $ 92,131 $ 348,367 $ (316,100) attributable toshareholders



Net income(loss) per share:

Basic $ 2.15 $ 1.11 $ 4.42 $ (3.75)

Diluted $ 2.13 $ 1.10 $ 4.39 $ (3.75)



Weighted-averageshares outstanding:

Basic 77,390 82,711 78,807 84,246

Diluted 78,086 83,397 79,404 84,246

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)

September 26, 2020

December 31, 2019

ASSETS

Current assets:

Cash and cash equivalents

$

227,019

$

300,103

Accounts receivable, net

7,958,675

8,482,687

Inventories

3,235,802

3,477,120

Other current assets

238,403

266,249

Total current assets

11,659,899

12,526,159

Property, plant, and equipment, at cost:

Land

7,818

7,793

Buildings and improvements

196,258

173,370

Machinery and equipment

1,528,735

1,481,525

1,732,811

1,662,688

Less: Accumulated depreciation and amortization

(938,956)

(859,578)

Property, plant, and equipment, net

793,855

803,110

Investments in affiliated companies

76,355

86,942

Intangible assets, net

241,293

271,903

Goodwill

2,074,282

2,061,322

Other assets

650,949

651,360

Total assets

$

15,496,633

$

16,400,796

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

6,849,252

$

7,046,221

Accrued expenses

899,326

880,507

Short-term borrowings, including current portion of long-term debt

166,128

331,431

Total current liabilities

7,914,706

8,258,159

Long-term debt

2,097,741

2,640,129

Other liabilities

646,414

636,115

Commitments and contingencies

Equity:

Shareholders' equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2020 and 2019, respectively

Issued - 125,424 shares in both 2020 and 2019, respectively

125,424

125,424

Capital in excess of par value

1,157,149

1,150,006

Treasury stock (49,696 and 44,804 shares in 2020 and 2019, respectively), at cost

(2,689,876)

(2,332,548)

Retained earnings

6,443,680

6,131,248

Accumulated other comprehensive loss

(255,313)

(262,211)

Total shareholders' equity

4,781,064

4,811,919

Noncontrolling interests

56,708

54,474

Total equity

4,837,772

4,866,393

Total liabilities and equity

$

15,496,633

$

16,400,796

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)



September 26, December 31, 2020 2019



ASSETS

Current assets:

Cash and cash equivalents $ 227,019 $ 300,103

Accounts receivable, net 7,958,675 8,482,687

Inventories 3,235,802 3,477,120

Other current assets 238,403 266,249

Total current assets 11,659,899 12,526,159

Property, plant, and equipment, at cost:

Land 7,818 7,793

Buildings and improvements 196,258 173,370

Machinery and equipment 1,528,735 1,481,525

1,732,811 1,662,688

Less: Accumulated depreciation and amortization (938,956) (859,578)

Property, plant, and equipment, net 793,855 803,110

Investments in affiliated companies 76,355 86,942

Intangible assets, net 241,293 271,903

Goodwill 2,074,282 2,061,322

Other assets 650,949 651,360

Total assets $ 15,496,633 $ 16,400,796

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 6,849,252 $ 7,046,221

Accrued expenses 899,326 880,507

Short-term borrowings, including current 166,128 331,431 portion of long-term debt

Total current liabilities 7,914,706 8,258,159

Long-term debt 2,097,741 2,640,129

Other liabilities 646,414 636,115

Commitments and contingencies

Equity:

Shareholders' equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2020 and 2019, respectively

Issued - 125,424 shares in both 2020 and 2019, 125,424 125,424 respectively

Capital in excess of par value 1,157,149 1,150,006

Treasury stock (49,696 and 44,804 shares in (2,689,876) (2,332,548) 2020 and 2019, respectively), at cost

Retained earnings 6,443,680 6,131,248

Accumulated other comprehensive loss (255,313) (262,211)

Total shareholders' equity 4,781,064 4,811,919

Noncontrolling interests 56,708 54,474

Total equity 4,837,772 4,866,393

Total liabilities and equity $ 15,496,633 $ 16,400,796

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Quarter Ended

September 26, 2020

September 28, 2019

Cash flows from operating activities:

Consolidated net income

$

166,396

$

92,981

Adjustments to reconcile consolidated net income to net cash provided by operations:

Depreciation and amortization

46,732

45,231

Amortization of stock-based compensation

6,285

7,120

Equity in (earnings) losses of affiliated companies

(61)

1,070

Deferred income taxes

(7,369)

6,362

Impairments

2,305

253

Loss on disposition of businesses, net

-

14,573

Gain on investments, net

(2,727)

(884)

Other

3,995

(276)

Change in assets and liabilities, net of effects of acquired and disposed businesses:

Accounts receivable, net

87,402

21,355

Inventories

207,646

64,468

Accounts payable

(176,973)

(3,013)

Accrued expenses

(41,889)

270

Other assets and liabilities

(17,015)

37,264

Net cash provided by operating activities

274,727

286,774

Cash flows from investing activities:

Cash paid on disposition of businesses

-

(10,785)

Acquisition of property, plant, and equipment

(30,013)

(31,444)

Other

(9,116)

(8,495)

Net cash used for investing activities

(39,129)

(50,724)

Cash flows from financing activities:

Change in short-term and other borrowings

(78,966)

80,227

Proceeds from (repayments of) long-term bank borrowings, net

328

(215,937)

Proceeds from exercise of stock options

2,233

2,088

Repurchases of common stock

(153,011)

(103,270)

Net cash used for financing activities

(229,416)

(236,892)

Effect of exchange rate changes on cash

15,009

(6,893)

Net increase (decrease) in cash and cash equivalents

21,191

(7,735)

Cash and cash equivalents at beginning of period

205,828

269,989

Cash and cash equivalents at end of period

$

227,019

$

262,254

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Quarter Ended

September September 26, 2020 28, 2019

Cash flows from operating activities:

Consolidated net income $ 166,396 $ 92,981

Adjustments to reconcile consolidated net income to net cash provided by operations:

Depreciation and amortization 46,732 45,231

Amortization of stock-based compensation 6,285 7,120

Equity in (earnings) losses of affiliated companies (61) 1,070

Deferred income taxes (7,369) 6,362

Impairments 2,305 253

Loss on disposition of businesses, net - 14,573

Gain on investments, net (2,727) (884)

Other 3,995 (276)

Change in assets and liabilities, net of effects of acquired and disposed businesses:

Accounts receivable, net 87,402 21,355

Inventories 207,646 64,468

Accounts payable (176,973) (3,013)

Accrued expenses (41,889) 270

Other assets and liabilities (17,015) 37,264

Net cash provided by operating activities 274,727 286,774

Cash flows from investing activities:

Cash paid on disposition of businesses - (10,785)

Acquisition of property, plant, and equipment (30,013) (31,444)

Other (9,116) (8,495)

Net cash used for investing activities (39,129) (50,724)

Cash flows from financing activities:

Change in short-term and other borrowings (78,966) 80,227

Proceeds from (repayments of) long-term bank 328 (215,937) borrowings, net

Proceeds from exercise of stock options 2,233 2,088

Repurchases of common stock (153,011) (103,270)

Net cash used for financing activities (229,416) (236,892)

Effect of exchange rate changes on cash 15,009 (6,893)

Net increase (decrease) in cash and cash 21,191 (7,735) equivalents

Cash and cash equivalents at beginning of period 205,828 269,989

Cash and cash equivalents at end of period $ 227,019 $ 262,254

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Nine Months Ended

September 26, 2020

September 28, 2019

Cash flows from operating activities:

Consolidated net income (loss)

$

349,488

$

(312,356)

Adjustments to reconcile consolidated net income (loss) to net cash provided by operations:

Depreciation and amortization

140,654

139,739

Amortization of stock-based compensation

28,602

34,749

Equity in (earnings) losses of affiliated companies

(308)

2,155

Deferred income taxes

38,976

(65,484)

Impairments

7,223

698,246

Loss on disposition of businesses, net

-

15,439

Loss (gain) on investments, net

3,198

(7,622)

Other

4,043

10,814

Change in assets and liabilities, net of effects of acquired and disposed businesses:

Accounts receivable, net

533,570

916,908

Inventories

260,573

342,610

Accounts payable

(228,000)

(1,349,189)

Accrued expenses

29,154

(71,124)

Other assets and liabilities

(7,336)

8,308

Net cash provided by operating activities

1,159,837

363,193

Cash flows from investing activities:

Cash paid on disposition of businesses

-

(1,325)

Acquisition of property, plant, and equipment

(89,555)

(113,080)

Other

(14,582)

(5,555)

Net cash used for investing activities

(104,137)

(119,960)

Cash flows from financing activities:

Change in short-term and other borrowings

(86,155)

(93,129)

Repayments of long-term bank borrowings, net

(411,362)

(96,960)

Redemption of notes

(209,366)

-

Proceeds from exercise of stock options

5,963

11,710

Repurchases of common stock

(384,750)

(304,194)

Settlement of forward-starting interest rate swap

(48,378)

-

Other

(141)

(147)

Net cash used for financing activities

(1,134,189)

(482,720)

Effect of exchange rate changes on cash

5,405

(7,586)

Net decrease in cash and cash equivalents

(73,084)

(247,073)

Cash and cash equivalents at beginning of period

300,103

509,327

Cash and cash equivalents at end of period

$

227,019

$

262,254

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Nine Months Ended

September 26, September 28, 2020 2019

Cash flows from operating activities:

Consolidated net income (loss) $ 349,488 $ (312,356)

Adjustments to reconcile consolidated net income (loss) to net cash provided by operations:

Depreciation and amortization 140,654 139,739

Amortization of stock-based compensation 28,602 34,749

Equity in (earnings) losses of affiliated (308) 2,155 companies

Deferred income taxes 38,976 (65,484)

Impairments 7,223 698,246

Loss on disposition of businesses, net - 15,439

Loss (gain) on investments, net 3,198 (7,622)

Other 4,043 10,814

Change in assets and liabilities, net of effects of acquired and disposed businesses:

Accounts receivable, net 533,570 916,908

Inventories 260,573 342,610

Accounts payable (228,000) (1,349,189)

Accrued expenses 29,154 (71,124)

Other assets and liabilities (7,336) 8,308

Net cash provided by operating activities 1,159,837 363,193

Cash flows from investing activities:

Cash paid on disposition of businesses - (1,325)

Acquisition of property, plant, and equipment (89,555) (113,080)

Other (14,582) (5,555)

Net cash used for investing activities (104,137) (119,960)

Cash flows from financing activities:

Change in short-term and other borrowings (86,155) (93,129)

Repayments of long-term bank borrowings, net (411,362) (96,960)

Redemption of notes (209,366) -

Proceeds from exercise of stock options 5,963 11,710

Repurchases of common stock (384,750) (304,194)

Settlement of forward-starting interest rate swap (48,378) -

Other (141) (147)

Net cash used for financing activities (1,134,189) (482,720)

Effect of exchange rate changes on cash 5,405 (7,586)

Net decrease in cash and cash equivalents (73,084) (247,073)

Cash and cash equivalents at beginning of period 300,103 509,327

Cash and cash equivalents at end of period $ 227,019 $ 262,254

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

September 26, 2020

September 28, 2019

% Change

Consolidated sales, as reported

$

7,231,260

$

7,078,118

2.2

%

Impact of changes in foreign currencies

-

96,749

Impact of wind down

-

(60,130)

Non-GAAP consolidated sales

$

7,231,260

$

7,114,737

1.6

%

Global components sales, as reported

$

5,307,737

$

5,048,880

5.1

%

Impact of changes in foreign currencies

-

67,317

Impact of wind down

-

(60,130)

Non-GAAP global components sales

$

5,307,737

$

5,056,067

5.0

%

Americas Components sales, as reported

$

1,515,962

$

1,738,710

(12.8)

%

Impact of changes in foreign currencies

-

(409)

Impact of wind down

-

(46,998)

Non-GAAP Americas Components sales

$

1,515,962

$

1,691,303

(10.4)

%

Europe components sales, as reported

$

1,196,672

$

1,304,109

(8.2)

%

Impact of changes in foreign currencies

-

64,000

Impact of wind down

-

(13,132)

Non-GAAP Europe components sales

$

1,196,672

$

1,354,977

(11.7)

%

Asia components sales, as reported

$

2,595,103

$

2,006,061

29.4

%

Impact of changes in foreign currencies

-

3,726

Non-GAAP Asia components sales

$

2,595,103

$

2,009,787

29.1

%

Global ECS sales, as reported

$

1,923,523

$

2,029,238

(5.2)

%

Impact of changes in foreign currencies

-

29,432

Non-GAAP global ECS sales

$

1,923,523

$

2,058,670

(6.6)

%

Europe ECS sales, as reported

$

649,732

$

610,324

6.5

%

Impact of changes in foreign currencies

-

30,545

Non-GAAP Europe ECS sales

$

649,732

$

640,869

1.4

%

Americas ECS sales, as reported

$

1,273,791

$

1,418,914

(10.2)

%

Impact of changes in foreign currencies

-

(1,113)

Non-GAAP Americas ECS sales

$

1,273,791

$

1,417,801

(10.2)

%

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

September 26, September 28, % Change 2020 2019



Consolidated sales, as reported $ 7,231,260 $ 7,078,118 2.2 %

Impact of changes in foreign - 96,749 currencies

Impact of wind down - (60,130)

Non-GAAP consolidated sales $ 7,231,260 $ 7,114,737 1.6 %



Global components sales, as $ 5,307,737 $ 5,048,880 5.1 %reported

Impact of changes in foreign - 67,317 currencies

Impact of wind down - (60,130)

Non-GAAP global components sales $ 5,307,737 $ 5,056,067 5.0 %



Americas Components sales, as $ 1,515,962 $ 1,738,710 (12.8) %reported

Impact of changes in foreign - (409) currencies

Impact of wind down - (46,998)

Non-GAAP Americas Components $ 1,515,962 $ 1,691,303 (10.4) %sales



Europe components sales, as $ 1,196,672 $ 1,304,109 (8.2) %reported

Impact of changes in foreign - 64,000 currencies

Impact of wind down - (13,132)

Non-GAAP Europe components sales $ 1,196,672 $ 1,354,977 (11.7) %



Asia components sales, as $ 2,595,103 $ 2,006,061 29.4 %reported

Impact of changes in foreign - 3,726 currencies

Non-GAAP Asia components sales $ 2,595,103 $ 2,009,787 29.1 %



Global ECS sales, as reported $ 1,923,523 $ 2,029,238 (5.2) %

Impact of changes in foreign - 29,432 currencies

Non-GAAP global ECS sales $ 1,923,523 $ 2,058,670 (6.6) %



Europe ECS sales, as reported $ 649,732 $ 610,324 6.5 %

Impact of changes in foreign - 30,545 currencies

Non-GAAP Europe ECS sales $ 649,732 $ 640,869 1.4 %



Americas ECS sales, as reported $ 1,273,791 $ 1,418,914 (10.2) %

Impact of changes in foreign - (1,113) currencies

Non-GAAP Americas ECS sales $ 1,273,791 $ 1,417,801 (10.2) %

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Nine Months Ended

September 26, 2020

September 28, 2019

% Change

Consolidated sales, as reported

$

20,219,171

$

21,578,657

(6.3)

%

Impact of changes in foreign currencies

-

(41,938)

Impact of wind down and dispositions

-

(232,239)

Non-GAAP consolidated sales

$

20,219,171

$

21,304,480

(5.1)

%

Global components sales, as reported

$

14,579,593

$

15,511,742

(6.0)

%

Impact of changes in foreign currencies

-

(21,453)

Impact of wind down

-

(221,098)

Non-GAAP global components sales

$

14,579,593

$

15,269,191

(4.5)

%

Americas Components sales, as reported

$

4,557,661

$

5,522,538

(17.5)

%

Impact of changes in foreign currencies

-

(4,169)

Impact of wind down

-

(170,724)

Non-GAAP Americas Components sales

$

4,557,661

$

5,347,645

(14.8)

%

Europe components sales, as reported

$

3,625,079

$

4,223,363

(14.2)

%

Impact of changes in foreign currencies

-

(5,049)

Impact of wind down

-

(50,374)

Non-GAAP Europe components sales

$

3,625,079

$

4,167,940

(13.0)

%

Asia components sales, as reported

$

6,396,853

$

5,765,841

10.9

%

Impact of changes in foreign currencies

-

(12,235)

Non-GAAP Asia components sales

$

6,396,853

$

5,753,606

11.2

%

Global ECS sales, as reported

$

5,639,578

$

6,066,915

(7.0)

%

Impact of changes in foreign currencies

-

(20,485)

Impact of dispositions

-

(11,141)

Non-GAAP global ECS sales

$

5,639,578

$

6,035,289

(6.6)

%

Europe ECS sales, as reported

$

2,013,843

$

2,074,638

(2.9)

%

Impact of changes in foreign currencies

-

(3,117)

Impact of dispositions

-

(11,141)

Non-GAAP Europe ECS sales

$

2,013,843

$

2,060,380

(2.3)

%

Americas ECS sales, as reported

$

3,625,735

$

3,992,277

(9.2)

%

Impact of changes in foreign currencies

-

(17,368)

Non-GAAP Americas ECS sales

$

3,625,735

$

3,974,909

(8.8)

%

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Nine Months Ended

September 26, September 28, % Change 2020 2019



Consolidated sales, as reported $ 20,219,171 $ 21,578,657 (6.3) %

Impact of changes in foreign - (41,938) currencies

Impact of wind down and - (232,239) dispositions

Non-GAAP consolidated sales $ 20,219,171 $ 21,304,480 (5.1) %



Global components sales, as $ 14,579,593 $ 15,511,742 (6.0) %reported

Impact of changes in foreign - (21,453) currencies

Impact of wind down - (221,098)

Non-GAAP global components sales $ 14,579,593 $ 15,269,191 (4.5) %



Americas Components sales, as $ 4,557,661 $ 5,522,538 (17.5) %reported

Impact of changes in foreign - (4,169) currencies

Impact of wind down - (170,724)

Non-GAAP Americas Components $ 4,557,661 $ 5,347,645 (14.8) %sales



Europe components sales, as $ 3,625,079 $ 4,223,363 (14.2) %reported

Impact of changes in foreign - (5,049) currencies

Impact of wind down - (50,374)

Non-GAAP Europe components sales $ 3,625,079 $ 4,167,940 (13.0) %



Asia components sales, as $ 6,396,853 $ 5,765,841 10.9 %reported

Impact of changes in foreign - (12,235) currencies

Non-GAAP Asia components sales $ 6,396,853 $ 5,753,606 11.2 %



Global ECS sales, as reported $ 5,639,578 $ 6,066,915 (7.0) %

Impact of changes in foreign - (20,485) currencies

Impact of dispositions - (11,141)

Non-GAAP global ECS sales $ 5,639,578 $ 6,035,289 (6.6) %



Europe ECS sales, as reported $ 2,013,843 $ 2,074,638 (2.9) %

Impact of changes in foreign - (3,117) currencies

Impact of dispositions - (11,141)

Non-GAAP Europe ECS sales $ 2,013,843 $ 2,060,380 (2.3) %



Americas ECS sales, as reported $ 3,625,735 $ 3,992,277 (9.2) %

Impact of changes in foreign - (17,368) currencies

Non-GAAP Americas ECS sales $ 3,625,735 $ 3,974,909 (8.8) %





ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Three months ended September 26, 2020

Reported

GAAP

measure

Intangible

amortization

expense

Restructuring

& Integration

charges

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impairments(1)

Impact of Wind Down

Non-recurring tax items

Other(2)

Non-GAAP

measure

Sales

$

7,231,260

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

7,231,260

Gross Profit

788,590

-

-

-

-

-

(475)

-

-

788,115

Operating income

238,182

9,352

(2,840)

(233)

-

2,305

(2,487)

-

-

244,279

Income before income taxes

211,103

9,352

(2,840)

(233)

-

2,305

(2,478)

-

(4,495)

212,714

Provision for income taxes

44,707

2,396

(665)

(56)

-

556

(583)

4,887

(1,090)

50,152

Consolidated net income

166,396

6,956

(2,175)

(177)

-

1,749

(1,895)

(4,887)

(3,405)

162,562

Noncontrolling interests

336

146

-

-

-

-

-

-

-

482

Net income attributable to shareholders

$

166,060

$

6,810

$

(2,175)

$

(177)

$

-

$

1,749

$

(1,895)

$

(4,887)

$

(3,405)

162,080

Net income per diluted share(7)

$

2.13

$

0.09

$

(0.03)

$

-

$

-

$

0.02

$

(0.02)

$

(0.06)

$

(0.04)

$

2.08

Effective tax rate

21.2

%

23.6

%

Three months ended September 28, 2019

Reported

GAAP

measure

Intangible

amortization

expense(3)

Restructuring

& Integration

charges(3)

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impairments

Impact of Wind Down(3)

Non-recurring tax items

Other(4)

Non-GAAP

measure

Sales

$

7,078,118

$

-

$

-

$

-

$

-

$

-

$

(60,130)

$

-

$

-

$

7,017,988

Gross Profit

798,841

-

-

-

1,101

-

(3,541)

-

-

796,401

Operating income

173,218

10,265

31,087

(664)

1,101

711

36,917

-

-

252,635

Income before income taxes

122,321

10,265

31,087

(664)

1,101

711

36,842

-

(1,126)

200,537

Provision for income taxes

29,340

2,860

8,922

(178)

272

-

3,753

-

(249)

44,720

Consolidated net income

92,981

7,405

22,165

(486)

829

711

33,089

-

(877)

155,817

Noncontrolling interests

850

138

-

-

-

-

-

-

-

988

Net income attributable to shareholders

$

92,131

$

7,267

$

22,165

$

(486)

$

829

$

711

$

33,089

$

-

$

(877)

$

154,829

Net income per diluted share(7)

$

1.10

$

0.09

$

0.27

$

(0.01)

$

0.01

$

0.01

$

0.40

$

-

$

(0.01)

$

1.86

Effective tax rate

24.0

%

22.3

%

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)



Three months ended September 26, 2020

Reported Intangible Restructuring AFS Reserves Digital Write Impairments Impact of Non-recurring Non-GAAP GAAP amortization & Integration & Recoveries Downs & ^(1) Wind Down tax items Other^(2) Recoveries measure measure expense charges

Sales $ 7,231,260 $ - $ - $ - $ - $ - $ - $ - $ - $ 7,231,260

Gross Profit 788,590 - - - - - (475) - - 788,115

Operating income 238,182 9,352 (2,840) (233) - 2,305 (2,487) - - 244,279

Income before 211,103 9,352 (2,840) (233) - 2,305 (2,478) - (4,495) 212,714 income taxes

Provision for 44,707 2,396 (665) (56) - 556 (583) 4,887 (1,090) 50,152 income taxes

Consolidated net 166,396 6,956 (2,175) (177) - 1,749 (1,895) (4,887) (3,405) 162,562 income

Noncontrolling 336 146 - - - - - - - 482 interests

Net incomeattributable to $ 166,060 $ 6,810 $ (2,175) $ (177) $ - $ 1,749 $ (1,895) $ (4,887) $ (3,405) 162,080 shareholders

Net income perdiluted share^ $ 2.13 $ 0.09 $ (0.03) $ - $ - $ 0.02 $ (0.02) $ (0.06) $ (0.04) $ 2.08 (7)

Effective tax 21.2 % 23.6 %rate



Three months ended September 28, 2019

Reported Intangible Restructuring AFS Reserves Digital Write Impact of Non-recurring Non-GAAP GAAP amortization & Integration & Recoveries Downs & Impairments Wind Down^ tax items Other^(4) Recoveries (3) measure measure expense^(3) charges^(3)

Sales $ 7,078,118 $ - $ - $ - $ - $ - $ (60,130) $ - $ - $ 7,017,988

Gross Profit 798,841 - - - 1,101 - (3,541) - - 796,401

Operating income 173,218 10,265 31,087 (664) 1,101 711 36,917 - - 252,635

Income before 122,321 10,265 31,087 (664) 1,101 711 36,842 - (1,126) 200,537 income taxes

Provision for 29,340 2,860 8,922 (178) 272 - 3,753 - (249) 44,720 income taxes

Consolidated net 92,981 7,405 22,165 (486) 829 711 33,089 - (877) 155,817 income

Noncontrolling 850 138 - - - - - - - 988 interests

Net incomeattributable to $ 92,131 $ 7,267 $ 22,165 $ (486) $ 829 $ 711 $ 33,089 $ - $ (877) $ 154,829 shareholders

Net income perdiluted share^ $ 1.10 $ 0.09 $ 0.27 $ (0.01) $ 0.01 $ 0.01 $ 0.40 $ - $ (0.01) $ 1.86 (7)

Effective tax 24.0 % 22.3 %rate



ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Nine months ended September 26, 2020

Reported GAAP measure

Intangible amortization expense

Restructuring & Integration charges

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impairments(1)

Impact of Wind Down

Non-recurring tax items

Other(2)

Non-GAAP measure

Sales

$

20,219,171

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

20,219,171

Gross Profit

2,267,444

-

-

-

-

-

(11,171)

-

-

2,256,273

Operating income

573,099

29,041

6,948

(956)

-

7,223

(14,311)

-

-

601,044

Income before income taxes

462,941

29,041

6,948

(956)

-

7,223

(14,292)

-

1,414

492,319

Provision for income taxes

113,453

7,461

2,219

(231)

-

2,356

(3,245)

1,272

336

123,621

Consolidated net income

349,488

21,580

4,729

(725)

-

4,867

(11,047)

(1,272)

1,078

368,698

Noncontrolling interests

1,121

420

-

-

-

-

-

-

-

1,541

Net income attributable to shareholders

$

348,367

$

21,160

$

4,729

$

(725)

$

-

$

4,867

$

(11,047)

$

(1,272)

$

1,078

$

367,157

Net income per diluted share(7)

$

4.39

$

0.27

$

0.06

$

(0.01)

$

-

$

0.06

$

(0.14)

$

(0.02)

$

0.01

$

4.62

Effective tax rate

24.5

%

25.1

%

Nine months ended September 28, 2019

Reported GAAP measure

Intangible amortization expense(3)

Restructuring & Integration charges(3)

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impairments(5)

Impact of Wind Down(3)

Non-recurring tax items

Other(6)

Non-GAAP measure

Sales

$

21,578,657

$

-

$

-

$

-

$

-

$

-

$

(221,098)

$

-

$

-

$

21,357,559

Gross Profit

2,475,438

-

-

1,868

21,215

-

(7,363)

-

-

2,491,158

Operating income (loss)

(130,412)

28,072

62,079

15,187

21,215

623,796

151,332

-

866

772,135

Income (loss) before income taxes

(281,478)

28,072

62,079

15,187

21,215

623,796

151,414

-

(6,998)

613,287

Provision for income taxes

30,878

7,863

16,498

3,732

5,234

64,246

31,011

(3,502)

(1,950)

154,010

Consolidated net income (loss)

(312,356)

20,209

45,581

11,455

15,981

559,550

120,403

3,502

(5,048)

459,277

Noncontrolling interests

3,744

420

-

-

-

-

-

-

-

4,164

Net income (loss) attributable to shareholders

$

(316,100)

$

19,789

$

45,581

$

11,455

$

15,981

$

559,550

$

120,403

$

3,502

$

(5,048)

$

455,113

Net income (loss) per diluted share(7)

$

(3.75)

$

0.23

$

0.54

$

0.14

$

0.19

$

6.64

$

1.43

$

0.04

$

(0.06)

$

5.36

Effective tax rate

(11.0)

%

25.1

%

(1) Impairments includes $2,305 and $7,223 in impairment charges related to various other long-lived assets unrelated to the personal computer and mobility asset disposition business for the third quarter and first nine months of 2020, respectively.

(2) Other includes (gain) loss on investments, net and pension settlement gain.

(3) Amounts for restructuring, integration, and other charges, identifiable intangible asset amortization, loss on disposition of businesses, net, and impairments related to the personal computer and mobility asset disposition business are included in "impact of wind down" above.

(4) Other includes gain on investments, net.

(5) Impairments include goodwill impairments of $570,175, tradename impairments of $46,000, and $7,621 in impairment charges related to various other long-lived assets.

(6) Other includes loss on disposition of businesses, net and gain on investments, net.

(7) For the nine months ended September 28, 2019, the non-GAAP net income per diluted share calculation includes 727 thousand shares that were excluded from the GAAP net income per diluted share calculation. Additionally, in all periods presented the sum of the components for non-GAAP diluted EPS may not agree to totals, as presented, due to rounding.

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)



Nine months ended September 26, 2020

Intangible Restructuring AFS Digital Reported amortization & Integration Reserves & Write Impairments Impact of Non-recurring Other^(2) Non-GAAP GAAP measure expense charges Recoveries Downs & ^(1) Wind Down tax items measure Recoveries

Sales $ 20,219,171 $ - $ - $ - $ - $ - $ - $ - $ - $ 20,219,171

Gross Profit 2,267,444 - - - - - (11,171) - - 2,256,273

Operating 573,099 29,041 6,948 (956) - 7,223 (14,311) - - 601,044income

Income before 462,941 29,041 6,948 (956) - 7,223 (14,292) - 1,414 492,319income taxes

Provision for 113,453 7,461 2,219 (231) - 2,356 (3,245) 1,272 336 123,621income taxes

Consolidated 349,488 21,580 4,729 (725) - 4,867 (11,047) (1,272) 1,078 368,698net income

Noncontrolling 1,121 420 - - - - - - - 1,541interests

Net incomeattributable $ 348,367 $ 21,160 $ 4,729 $ (725) $ - $ 4,867 $ (11,047) $ (1,272) $ 1,078 $ 367,157toshareholders

Net income perdiluted share^ $ 4.39 $ 0.27 $ 0.06 $ (0.01) $ - $ 0.06 $ (0.14) $ (0.02) $ 0.01 $ 4.62 (7)

Effective tax 24.5 % 25.1 %rate



Nine months ended September 28, 2019

Intangible Restructuring AFS Digital Reported amortization & Integration Reserves & Write Impairments Impact of Non-recurring Other^(6) Non-GAAP GAAP measure expense^(3) charges^(3) Recoveries Downs & ^(5) Wind Down^(3) tax items measure Recoveries

Sales $ 21,578,657 $ - $ - $ - $ - $ - $ (221,098) $ - $ - $ 21,357,559

Gross Profit 2,475,438 - - 1,868 21,215 - (7,363) - - 2,491,158

Operating (130,412) 28,072 62,079 15,187 21,215 623,796 151,332 - 866 772,135 income (loss)

Income (loss)before income (281,478) 28,072 62,079 15,187 21,215 623,796 151,414 - (6,998) 613,287 taxes

Provision for 30,878 7,863 16,498 3,732 5,234 64,246 31,011 (3,502) (1,950) 154,010 income taxes

Consolidatednet income (312,356) 20,209 45,581 11,455 15,981 559,550 120,403 3,502 (5,048) 459,277 (loss)

Noncontrolling 3,744 420 - - - - - - - 4,164 interests

Net income(loss)attributable $ (316,100) $ 19,789 $ 45,581 $ 11,455 $ 15,981 $ 559,550 $ 120,403 $ 3,502 $ (5,048) $ 455,113 toshareholders

Net income(loss) per $ (3.75) $ 0.23 $ 0.54 $ 0.14 $ 0.19 $ 6.64 $ 1.43 $ 0.04 $ (0.06) $ 5.36 diluted share^(7)

Effective tax (11.0) % 25.1 %rate





(1) Impairments includes $2,305 and $7,223 in impairment charges related tovarious other long-lived assets unrelated to the personal computer and mobilityasset disposition business for the third quarter and first nine months of 2020,respectively.

(2) Other includes (gain) loss on investments, net and pension settlement gain.

(3) Amounts for restructuring, integration, and other charges, identifiableintangible asset amortization, loss on disposition of businesses, net, andimpairments related to the personal computer and mobility asset dispositionbusiness are included in "impact of wind down" above.

(4) Other includes gain on investments, net.

(5) Impairments include goodwill impairments of $570,175, tradename impairmentsof $46,000, and $7,621 in impairment charges related to various otherlong-lived assets.

(6) Other includes loss on disposition of businesses, net and gain oninvestments, net.

(7) For the nine months ended September 28, 2019, the non-GAAP net income perdiluted share calculation includes 727 thousand shares that were excluded fromthe GAAP net income per diluted share calculation. Additionally, in all periodspresented the sum of the components for non-GAAP diluted EPS may not agree tototals, as presented, due to rounding.

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

Quarter Ended

Nine Months Ended

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

Sales:

Global components

$

5,307,737

$

5,048,880

$

14,579,593

$

15,511,742

Global ECS

1,923,523

2,029,238

5,639,578

6,066,915

Consolidated

$

7,231,260

$

7,078,118

$

20,219,171

$

21,578,657

Operating income (loss):

Global components

$

203,603

$

171,591

$

550,206

$

(159,993)

Global ECS (a)

82,529

92,375

197,883

277,481

Corporate (b)

(47,950)

(90,748)

(174,990)

(247,900)

Consolidated

$

238,182

$

173,218

$

573,099

$

(130,412)

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)



Quarter Ended Nine Months Ended

September 26, September 28, September 26, September 28, 2020 2019 2020 2019

Sales:

Global $ 5,307,737 $ 5,048,880 $ 14,579,593 $ 15,511,742 components

Global ECS 1,923,523 2,029,238 5,639,578 6,066,915

Consolidated $ 7,231,260 $ 7,078,118 $ 20,219,171 $ 21,578,657

Operating income (loss):

Global $ 203,603 $ 171,591 $ 550,206 $ (159,993) components

Global ECS (a) 82,529 92,375 197,883 277,481

Corporate (b) (47,950) (90,748) (174,990) (247,900)

Consolidated $ 238,182 $ 173,218 $ 573,099 $ (130,412)

(a)

Includes reserves and other adjustments of approximately $29.9 million primarily related to foreign tax and other loss contingencies for the first nine months of 2020. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year.

(b)

Includes restructuring, integration, and other charges (credits) of $(2.8) million and $6.9 million for the third quarter and first nine months of 2020, and $31.1 million and $62.7 million for the third quarter and first nine months of 2019, respectively. Also includes $2.3 million of impairment charges related to various long-lived assets for the third quarter and first nine months of 2020.

Includes reserves and other adjustments of approximately $29.9 million primarily related to foreign tax and other loss contingencies for the(a) first nine months of 2020. These reserves are principally associated with transactional taxes on activity from several prior years, not significant to any one year.

Includes restructuring, integration, and other charges (credits) of $(2.8) million and $6.9 million for the third quarter and first nine months of(b) 2020, and $31.1 million and $62.7 million for the third quarter and first nine months of 2019, respectively. Also includes $2.3 million of impairment charges related to various long-lived assets for the third quarter and first nine months of 2020.

NON-GAAP SEGMENT RECONCILIATION

Quarter Ended

Nine Months Ended

September 26, 2020

September 28, 2019

September 26, 2020

September 28, 2019

Global components operating income (loss), as reported

$

203,603

$

171,591

$

550,206

$

(159,993)

Intangible assets amortization expense (c)

7,014

7,398

21,653

19,458

Impairments (c)

-

711

-

623,796

Impact of wind down (c)

(2,487)

36,917

(14,311)

150,752

AFS notes receivable reserve (recoveries)

(233)

(664)

(956)

15,187

Digital inventory reserve

-

1,101

-

21,215

Global components non-GAAP operating income

$

207,897

$

217,054

$

556,592

$

670,415

Global ECS operating income, as reported

$

82,529

$

92,375

$

197,883

$

277,481

Intangible assets amortization expense

2,338

2,866

7,388

8,613

Impairments

-

-

4,918

-

Global ECS non-GAAP operating income

$

84,867

$

95,241

$

210,189

$

286,094

NON-GAAP SEGMENT RECONCILIATION



Quarter Ended Nine Months Ended

September September September September 28, 26, 2020 28, 2019 26, 2020 2019



Global componentsoperating income $ 203,603 $ 171,591 $ 550,206 $ (159,993) (loss), as reported

Intangible assetsamortization expense 7,014 7,398 21,653 19,458 (c)

Impairments (c) - 711 - 623,796

Impact of wind down (c) (2,487) 36,917 (14,311) 150,752

AFS notes receivable (233) (664) (956) 15,187 reserve (recoveries)

Digital inventory - 1,101 - 21,215 reserve

Global componentsnon-GAAP operating $ 207,897 $ 217,054 $ 556,592 $ 670,415 income



Global ECS operating $ 82,529 $ 92,375 $ 197,883 $ 277,481 income, as reported

Intangible assets 2,338 2,866 7,388 8,613 amortization expense

Impairments - - 4,918 -

Global ECS non-GAAP $ 84,867 $ 95,241 $ 210,189 $ 286,094 operating income

(c)

For the third quarter and first nine months of 2019, impact of wind down includes restructuring, integration, and other charges, identifiable intangible asset amortization, loss on dispositions of businesses, net, and impairments related to the personal computer and mobility asset disposition business.

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