Business Wire | Feb 4, 2021 08:04AM EST

Arrow Electronics Reports Fourth-Quarter and Year-End 2020 Results

Feb. 04, 2021

CENTENNIAL, Colo.--(BUSINESS WIRE)--Feb. 04, 2021--Arrow Electronics, Inc. (NYSE:ARW) today reported fourth-quarter 2020 sales of $8.45 billion, an increase of 15 percent from sales of $7.34 billion in the fourth quarter of 2019. Fourth-quarter 2020 non-GAAP1 sales increased 13 percent from 2019. Fourth-quarter 2020 net income was $236 million, or $3.08 per share on a diluted basis, compared with net income of $112 million, or $1.36 per share on a diluted basis, in the fourth quarter of 2019. Non-GAAP net income1 was $243 million, or $3.17 per share on a diluted basis, in the fourth quarter of 2020, compared with net income of $181 million, or $2.20 per share on a diluted basis, in the fourth quarter of 2019. In the fourth quarter of 2020, changes in foreign currencies had positive impacts on growth of approximately $161 million on sales and $.11 on earnings per share on a diluted basis compared to the fourth quarter of 2019.

"Arrow's talented team works hard every day to help customers and suppliers overcome design, engineering, and supply chain challenges - and this commitment was more evident than ever in 2020. Despite the uncertain environment, Arrow drove exceptional financial performance and built on our reputation as a trusted partner for customers and suppliers, with innovative products and solutions," said Michael J. Long, chairman, president, and chief executive officer. "It was a remarkable accomplishment to end the year with record fourth-quarter sales, net income, and earnings per share."

Global components fourth-quarter sales of $5.92 billion increased 25 percent year over year. Non-GAAP sales increased 23 percent year over year. Asia-Pacific components sales increased 54 percent year over year. Non-GAAP sales in the region increased 53 percent year over year. Europe components sales increased 15 percent year over year. Non-GAAP sales in the region increased 7 percent year over year. Americas components sales decreased 1 percent year over year. Non-GAAP sales in the region remained flat year over year. Global components fourth-quarter operating income was $230 million. Fourth-quarter non-GAAP operating income was $236 million.

"We have long discussed the potential to pioneer value-added distribution in Asia, and our belief that Arrow is well-positioned to increase the scale of our Asia components business leading to higher profit levels. We also saw a compelling opportunity for global components to accelerate profit growth and expansion as soon as demand from end-customers stabilizes and improves," continued Mr. Long. "Our focused execution delivered on both accounts, despite the ongoing COVID-19 pandemic."

Global enterprise computing solutions fourth-quarter sales of $2.53 billion decreased 3 percent year over year. Non-GAAP sales decreased 5 percent year over year. Europe enterprise computing solutions sales increased 9 percent year over year. Non-GAAP sales in the region increased 2 percent year over year. Americas enterprise computing sales decreased 10 percent year over year. Global enterprise computing solutions fourth-quarter operating income was $156 million. Fourth-quarter non-GAAP operating income was $158 million.

"Global enterprise computing solutions is starting off 2021 on solid footing having returned to operating income growth in the fourth quarter on higher operating margins," concluded Mr. Long.

FULL-YEAR RESULTS

Full-year 2020 sales of $28.67 billion decreased 1 percent from sales of $28.92 billion in 2019. Full-year 2020 non-GAAP sales remained flat year over year. Net income for 2020 was $584 million, or $7.43 per share on a diluted basis, compared with net loss of $204 million, or $(2.44) per share on a diluted basis, in 2019. Non-GAAP net incomewas $610 million, or $7.75 per share on a diluted basis, in 2020 compared with non-GAAP net income of $636 million, or $7.55 per share on a diluted basis, in 2019. In 2020, changes in foreign currencies had positive impacts on growth of approximately $119 million on sales, and $.12 on earnings per share on a diluted basis compared to 2019.

"We experienced substantial demand volatility throughout 2020, but our flexible business model allowed us to further improve our financial foundation over the course of the year," said Chris Stansbury, senior vice president and chief financial officer. "Fourth-quarter and full-year 2020 cash flow provided by operating activities were $200 million and $1.36 billion, respectively, and return on invested capital increased year over year for the third consecutive quarter. We remain committed to returning excess cash to shareholders and returned approximately $100 million to shareholders through our stock repurchase program during the fourth quarter, and approximately $475 million in 2020, the most we have ever returned in a single year, all while reducing debt by $715 million."

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

FIRST-QUARTER 2021 OUTLOOK

* Consolidated sales of $7.625 billion to $8.225 billion, with global components sales of $5.825 billion to $6.125 billion, and global enterprise computing solutions sales of $1.8 billion to $2.1 billion * Net income per share on a diluted basis of $2.02 to $2.18, and non-GAAP net income per share on a diluted basis1 of $2.17 to $2.33 * Average tax rate of approximately 24.5% percent compared to the long-term range of 23 to 25 percent * Average diluted shares outstanding of 76 million * Interest expense of approximately $31 million * Expecting average USD-to-Euro exchange rate of $1.23 to (euro)1; changes in foreign currencies to increase sales by approximately $235 million, and earnings per share on a diluted basis by $.12 compared to the first quarter of 2020

First-Quarter 2021 Outlook

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

Net income per $2.02 to $.09 $.06 $2.17 todiluted share $2.18 $2.33

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 180,000 leading technology manufacturers and service providers. With 2020 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 first quarter of fiscal 2021, 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 COVID-19 coronavirus pandemic, including actions taken to contain or treat COVID-19, the speed and effectiveness of COVID-19 vaccine and treatment developments and deployment, potential mutations of COVID-19, 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, tax 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 Form 10-K 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, sales for each segment and in each region, gross profit, operating income, income before income taxes, provision for income taxes, net income, net income attributable to shareholders, and net income per share on a diluted basis which are GAAP measures adjusted 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, net"), and the impact of notes receivable reserves and recoveries and inventory write-downs related to the AFS business (referred to as "AFS notes receivable reserves and recoveries" and "AFS inventory write-downs", 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, digital inventory write-downs, net, 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, digital inventory write-downs, net, gains and losses on investments, net, the impact of non-cash charges related to goodwill, trade names, and long-lived assets, certain tax adjustments, pension settlement gain (loss) 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.

Management believes that providing this additional information is useful to the reader, as a supplement to the GAAP measures, to better assess and understand the company's operating performance, especially when comparing results with previous periods. Management typically monitors these non-GAAP measures in addition to GAAP results to understand and compare operating results across accounting periods for forecasting purposes, operating plans, and evaluating our financial performance. However, analysis of results 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, December 31, December 31, December 31, 2020 2019 2020 2019

(Unaudited) (Unaudited)

Sales $ 8,454,192 $ 7,338,190 $ 28,673,363 $ 28,916,847

Cost of sales 7,530,506 6,515,247 25,482,233 25,618,466

Gross profit 923,686 822,943 3,191,130 3,298,381

Operating expenses:

Selling,general, and 547,530 513,878 2,087,050 2,191,612 administrativeexpenses

Depreciationand 48,404 50,051 189,058 189,790 amortization

Loss ondisposition of - 5,813 - 21,252 businesses, net

Impairments - - 7,223 698,246

Restructuring,integration, 6,340 15,093 13,288 89,785 and othercharges

602,274 584,835 2,296,619 3,190,685

Operating 321,412 238,108 894,511 107,696 income

Equity inlosses of (839 ) (610 ) (531 ) (2,765 )affiliatedcompanies

Gain oninvestments, 8,531 3,967 5,348 11,831 net

Employeebenefit plan (1,172 ) (21,500 ) (2,859 ) (24,849 )expense, net

Interest andother financing (31,614 ) (50,317 ) (137,210 ) (203,743 )expense, net

Income (loss)before income 296,318 169,648 759,259 (111,830 )taxes

Provision for 59,342 57,460 172,795 88,338 income taxes

Consolidatednet income 236,976 112,188 586,464 (200,168 )(loss)

Noncontrolling 905 175 2,026 3,919 interests

Net income(loss) $ 236,071 $ 112,013 $ 584,438 $ (204,087 )attributable toshareholders



Net income(loss) per share:

Basic $ 3.12 $ 1.37 $ 7.49 $ (2.44 )

Diluted $ 3.08 $ 1.36 $ 7.43 $ (2.44 )



Weightedaverage shares outstanding:

Basic 75,701 81,613 77,992 83,568

Diluted 76,574 82,493 78,635 83,568

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

December 31, 2020

December 31, 2019

ASSETS

Current assets:

Cash and cash equivalents

$

373,615

$

300,103

Accounts receivable, net

9,205,343

8,482,687

Inventories

3,287,308

3,477,120

Other current assets

286,633

266,249

Total current assets

13,152,899

12,526,159

Property, plant, and equipment, at cost:

Land

7,940

7,793

Buildings and improvements

207,614

173,370

Machinery and equipment

1,553,371

1,481,525

1,768,925

1,662,688

Less: Accumulated depreciation and amortization

(969,320

)

(859,578

)

Property, plant, and equipment, net

799,605

803,110

Investments in affiliated companies

76,358

86,942

Intangible assets, net

233,819

271,903

Goodwill

2,115,469

2,061,322

Other assets

675,761

651,360

Total assets

$

17,053,911

$

16,400,796

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable

$

7,937,889

$

7,046,221

Accrued expenses

1,034,361

880,507

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

158,633

331,431

Total current liabilities

9,130,883

8,258,159

Long-term debt

2,097,940

2,640,129

Other liabilities

676,136

636,115

Equity:

Shareholders' equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2020 and 2019

Issued - 125,424 shares in both 2020 and 2019

125,424

125,424

Capital in excess of par value

1,165,850

1,150,006

Treasury stock (50,581 and 44,804 shares in 2020 and 2019, respectively), at cost

(2,776,821

)

(2,332,548

)

Retained earnings

6,679,751

6,131,248

Accumulated other comprehensive loss

(104,885

)

(262,211

)

Total shareholders' equity

5,089,319

4,811,919

Noncontrolling interests

59,633

54,474

Total equity

5,148,952

4,866,393

Total liabilities and equity

$

17,053,911

$

16,400,796

ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)



December 31, December 31, 2020 2019



ASSETS

Current assets:

Cash and cash equivalents $ 373,615 $ 300,103

Accounts receivable, net 9,205,343 8,482,687

Inventories 3,287,308 3,477,120

Other current assets 286,633 266,249

Total current assets 13,152,899 12,526,159

Property, plant, and equipment, at cost:

Land 7,940 7,793

Buildings and improvements 207,614 173,370

Machinery and equipment 1,553,371 1,481,525

1,768,925 1,662,688

Less: Accumulated depreciation and amortization (969,320 ) (859,578 )

Property, plant, and equipment, net 799,605 803,110

Investments in affiliated companies 76,358 86,942

Intangible assets, net 233,819 271,903

Goodwill 2,115,469 2,061,322

Other assets 675,761 651,360

Total assets $ 17,053,911 $ 16,400,796

LIABILITIES AND EQUITY

Current liabilities:

Accounts payable $ 7,937,889 $ 7,046,221

Accrued expenses 1,034,361 880,507

Short-term borrowings, including current 158,633 331,431 portion of long-term debt

Total current liabilities 9,130,883 8,258,159

Long-term debt 2,097,940 2,640,129

Other liabilities 676,136 636,115

Equity:

Shareholders' equity:

Common stock, par value $1:

Authorized - 160,000 shares in both 2020 and 2019

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

Capital in excess of par value 1,165,850 1,150,006

Treasury stock (50,581 and 44,804 shares in (2,776,821 ) (2,332,548 )2020 and 2019, respectively), at cost

Retained earnings 6,679,751 6,131,248

Accumulated other comprehensive loss (104,885 ) (262,211 )

Total shareholders' equity 5,089,319 4,811,919

Noncontrolling interests 59,633 54,474

Total equity 5,148,952 4,866,393

Total liabilities and equity $ 17,053,911 $ 16,400,796

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

Quarter Ended

December 31, 2020

December 31, 2019

Cash flows from operating activities:

Consolidated net income

$

236,976

$

112,188

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

Depreciation and amortization

48,404

50,051

Amortization of stock-based compensation

6,686

6,321

Equity in losses of affiliated companies

839

610

Deferred income taxes

(9,263

)

15,196

Gain on investments, net

(8,531

)

(3,840

)

Loss on disposition of businesses, net

-

5,813

Pension settlement loss

-

20,111

Other

1,016

(155

)

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

Accounts receivable, net

(1,074,997

)

(578,059

)

Inventories

(16,248

)

40,448

Accounts payable

988,883

827,614

Accrued expenses

57,330

43,649

Other assets and liabilities

(31,089

)

(45,145

)

Net cash provided by operating activities

200,006

494,802

Cash flows from investing activities:

Cash paid on disposition of businesses

-

(11,769

)

Acquisition of property, plant, and equipment

(34,030

)

(30,111

)

Cash paid for customer relationship intangible asset

-

(7,616

)

Other

(627

)

(4,127

)

Net cash used for investing activities

(34,657

)

(53,623

)

Cash flows from financing activities:

Change in short-term and other borrowings

(8,862

)

(20,794

)

Repayment of long-term bank borrowings, net

(135

)

(308,047

)

Proceeds from exercise of stock options

15,074

5,201

Repurchases of common stock

(98,985

)

(100,009

)

Net cash used for financing activities

(92,908

)

(423,649

)

Effect of exchange rate changes on cash

74,155

20,319

Net increase in cash and cash equivalents

146,596

37,849

Cash and cash equivalents at beginning of period

227,019

262,254

Cash and cash equivalents at end of period

$

373,615

$

300,103

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)



Quarter Ended

December 31, December 31, 2020 2019

Cash flows from operating activities:

Consolidated net income $ 236,976 $ 112,188

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

Depreciation and amortization 48,404 50,051

Amortization of stock-based compensation 6,686 6,321

Equity in losses of affiliated companies 839 610

Deferred income taxes (9,263 ) 15,196

Gain on investments, net (8,531 ) (3,840 )

Loss on disposition of businesses, net - 5,813

Pension settlement loss - 20,111

Other 1,016 (155 )

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

Accounts receivable, net (1,074,997 ) (578,059 )

Inventories (16,248 ) 40,448

Accounts payable 988,883 827,614

Accrued expenses 57,330 43,649

Other assets and liabilities (31,089 ) (45,145 )

Net cash provided by operating activities 200,006 494,802

Cash flows from investing activities:

Cash paid on disposition of businesses - (11,769 )

Acquisition of property, plant, and equipment (34,030 ) (30,111 )

Cash paid for customer relationship intangible - (7,616 )asset

Other (627 ) (4,127 )

Net cash used for investing activities (34,657 ) (53,623 )

Cash flows from financing activities:

Change in short-term and other borrowings (8,862 ) (20,794 )

Repayment of long-term bank borrowings, net (135 ) (308,047 )

Proceeds from exercise of stock options 15,074 5,201

Repurchases of common stock (98,985 ) (100,009 )

Net cash used for financing activities (92,908 ) (423,649 )

Effect of exchange rate changes on cash 74,155 20,319

Net increase in cash and cash equivalents 146,596 37,849

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

Cash and cash equivalents at end of period $ 373,615 $ 300,103



ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Year Ended

December 31, 2020

December 31, 2019

Cash flows from operating activities:

Consolidated net income (loss)

$

586,464

$

(200,168

)

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

Depreciation and amortization

189,058

189,790

Amortization of stock-based compensation

35,288

41,070

Equity in losses of affiliated companies

531

2,765

Deferred income taxes

29,713

(50,288

)

Impairments

7,223

698,246

Gain on investments, net

(5,333

)

(11,462

)

Loss on disposition of businesses, net

-

21,252

Pension settlement loss

-

20,111

Other

5,059

10,659

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

Accounts receivable, net

(541,427

)

338,849

Inventories

244,325

383,058

Accounts payable

760,883

(521,575

)

Accrued expenses

86,484

(27,475

)

Other assets and liabilities

(38,425

)

(36,837

)

Net cash provided by operating activities

1,359,843

857,995

Cash flows from investing activities:

Cash paid on disposition of businesses

-

(13,094

)

Acquisition of property, plant, and equipment

(123,585

)

(143,191

)

Cash paid for customer relationship intangible asset

(713

)

(7,616

)

Other

(14,496

)

(9,682

)

Net cash used for investing activities

(138,794

)

(173,583

)

Cash flows from financing activities:

Change in short-term and other borrowings

(95,017

)

(113,923

)

Repayments of long-term bank borrowings, net

(411,497

)

(405,007

)

Redemption of notes

(209,366

)

-

Proceeds from exercise of stock options

21,037

16,911

Repurchases of common stock

(483,735

)

(404,203

)

Settlement of forward-starting interest rate swap

(48,378

)

-

Other

(141

)

(147

)

Net cash used for financing activities

(1,227,097

)

(906,369

)

Effect of exchange rate changes on cash

79,560

12,733

Net increase (decrease) in cash and cash equivalents

73,512

(209,224

)

Cash and cash equivalents at beginning of period

300,103

509,327

Cash and cash equivalents at end of period

$

373,615

$

300,103

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)



Year Ended

December 31, December 31, 2020 2019

Cash flows from operating activities:

Consolidated net income (loss) $ 586,464 $ (200,168 )

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

Depreciation and amortization 189,058 189,790

Amortization of stock-based compensation 35,288 41,070

Equity in losses of affiliated companies 531 2,765

Deferred income taxes 29,713 (50,288 )

Impairments 7,223 698,246

Gain on investments, net (5,333 ) (11,462 )

Loss on disposition of businesses, net - 21,252

Pension settlement loss - 20,111

Other 5,059 10,659

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

Accounts receivable, net (541,427 ) 338,849

Inventories 244,325 383,058

Accounts payable 760,883 (521,575 )

Accrued expenses 86,484 (27,475 )

Other assets and liabilities (38,425 ) (36,837 )

Net cash provided by operating activities 1,359,843 857,995

Cash flows from investing activities:

Cash paid on disposition of businesses - (13,094 )

Acquisition of property, plant, and equipment (123,585 ) (143,191 )

Cash paid for customer relationship intangible (713 ) (7,616 )asset

Other (14,496 ) (9,682 )

Net cash used for investing activities (138,794 ) (173,583 )

Cash flows from financing activities:

Change in short-term and other borrowings (95,017 ) (113,923 )

Repayments of long-term bank borrowings, net (411,497 ) (405,007 )

Redemption of notes (209,366 ) -

Proceeds from exercise of stock options 21,037 16,911

Repurchases of common stock (483,735 ) (404,203 )

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

Other (141 ) (147 )

Net cash used for financing activities (1,227,097 ) (906,369 )

Effect of exchange rate changes on cash 79,560 12,733

Net increase (decrease) in cash and cash 73,512 (209,224 )equivalents

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

Cash and cash equivalents at end of period $ 373,615 $ 300,103





ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Quarter Ended

December 31, 2020

December 31, 2019

% Change

Consolidated sales, as reported

$

8,454,192

$

7,338,190

15.2

%

Impact of changes in foreign currencies

-

161,114

Impact of wind down

-

(19,375

)

Non-GAAP consolidated sales

$

8,454,192

$

7,479,929

13.0

%

Global components sales, as reported

$

5,923,094

$

4,738,993

25.0

%

Impact of changes in foreign currencies

-

92,052

Impact of wind down

-

(19,375

)

Non-GAAP global components sales

$

5,923,094

$

4,811,670

23.1

%

Americas components sales, as reported

$

1,625,458

$

1,644,757

(1.2

)%

Impact of changes in foreign currencies

-

(589

)

Impact of wind down

-

(19,239

)

Non-GAAP Americas components sales

$

1,625,458

$

1,624,929

-

%

Europe components sales, as reported

$

1,362,455

$

1,189,016

14.6

%

Impact of changes in foreign currencies

-

79,652

Impact of wind down

-

(136

)

Non-GAAP Europe components sales

$

1,362,455

$

1,268,532

7.4

%

Asia components sales, as reported

$

2,935,181

$

1,905,220

54.1

%

Impact of changes in foreign currencies

-

12,989

Non-GAAP Asia components sales

$

2,935,181

$

1,918,209

53.0

%

Global ECS sales, as reported

$

2,531,098

$

2,599,197

(2.6

)%

Impact of changes in foreign currencies

-

69,062

Non-GAAP global ECS sales

$

2,531,098

$

2,668,259

(5.1

)%

Europe ECS sales, as reported

$

1,047,461

$

959,449

9.2

%

Impact of changes in foreign currencies

-

68,905

Non-GAAP Europe ECS sales

$

1,047,461

$

1,028,354

1.9

%

Americas ECS sales, as reported

$

1,483,637

$

1,639,748

(9.5

)%

Impact of changes in foreign currencies

-

157

Non-GAAP Americas ECS sales

$

1,483,637

$

1,639,905

(9.5

)%

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)



Quarter Ended

December 31, December 31, % 2020 2019 Change



Consolidated sales, as reported $ 8,454,192 $ 7,338,190 15.2 %

Impact of changes in foreign - 161,114 currencies

Impact of wind down - (19,375 )

Non-GAAP consolidated sales $ 8,454,192 $ 7,479,929 13.0 %



Global components sales, as $ 5,923,094 $ 4,738,993 25.0 %reported

Impact of changes in foreign - 92,052 currencies

Impact of wind down - (19,375 )

Non-GAAP global components sales $ 5,923,094 $ 4,811,670 23.1 %



Americas components sales, as $ 1,625,458 $ 1,644,757 (1.2 )%reported

Impact of changes in foreign - (589 ) currencies

Impact of wind down - (19,239 )

Non-GAAP Americas components sales $ 1,625,458 $ 1,624,929 - %



Europe components sales, as $ 1,362,455 $ 1,189,016 14.6 %reported

Impact of changes in foreign - 79,652 currencies

Impact of wind down - (136 )

Non-GAAP Europe components sales $ 1,362,455 $ 1,268,532 7.4 %



Asia components sales, as reported $ 2,935,181 $ 1,905,220 54.1 %

Impact of changes in foreign - 12,989 currencies

Non-GAAP Asia components sales $ 2,935,181 $ 1,918,209 53.0 %



Global ECS sales, as reported $ 2,531,098 $ 2,599,197 (2.6 )%

Impact of changes in foreign - 69,062 currencies

Non-GAAP global ECS sales $ 2,531,098 $ 2,668,259 (5.1 )%



Europe ECS sales, as reported $ 1,047,461 $ 959,449 9.2 %

Impact of changes in foreign - 68,905 currencies

Non-GAAP Europe ECS sales $ 1,047,461 $ 1,028,354 1.9 %



Americas ECS sales, as reported $ 1,483,637 $ 1,639,748 (9.5 )%

Impact of changes in foreign - 157 currencies

Non-GAAP Americas ECS sales $ 1,483,637 $ 1,639,905 (9.5 )%

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)

Year Ended

December 31, 2020

December 31, 2019

% Change

Consolidated sales, as reported

$

28,673,363

$

28,916,847

(0.8

)%

Impact of changes in foreign currencies

-

119,002

Impact of wind down and dispositions

-

(251,614

)

Non-GAAP consolidated sales

$

28,673,363

$

28,784,235

(0.4

)%

Global components sales, as reported

$

20,502,687

$

20,250,735

1.2

%

Impact of changes in foreign currencies

-

70,485

Impact of wind down

-

(240,473

)

Non-GAAP global components sales

$

20,502,687

$

20,080,747

2.1

%

Americas components sales, as reported

$

6,183,119

$

7,167,295

(13.7

)%

Impact of changes in foreign currencies

-

(4,758

)

Impact of wind down

-

(189,963

)

Non-GAAP Americas components sales

$

6,183,119

$

6,972,574

(11.3

)%

Europe components sales, as reported

$

4,987,534

$

5,412,379

(7.8

)%

Impact of changes in foreign currencies

-

74,491

Impact of wind down

-

(50,510

)

Non-GAAP Europe components sales

$

4,987,534

$

5,436,360

(8.3

)%

Asia components sales, as reported

$

9,332,034

$

7,671,061

21.7

%

Impact of changes in foreign currencies

-

752

Non-GAAP Asia components sales

$

9,332,034

$

7,671,813

21.6

%

Global ECS sales, as reported

$

8,170,676

$

8,666,112

(5.7

)%

Impact of changes in foreign currencies

-

48,517

Impact of dispositions

-

(11,141

)

Non-GAAP global ECS sales

$

8,170,676

$

8,703,488

(6.1

)%

Europe ECS sales, as reported

$

3,061,304

$

3,034,087

0.9

%

Impact of changes in foreign currencies

-

65,787

Impact of dispositions

-

(11,141

)

Non-GAAP Europe ECS sales

$

3,061,304

$

3,088,733

(0.9

)%

Americas ECS sales, as reported

$

5,109,372

$

5,632,025

(9.3

)%

Impact of changes in foreign currencies

-

(17,270

)

Non-GAAP Americas ECS sales

$

5,109,372

$

5,614,755

(9.0

)%

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)



Year Ended

December 31, December 31, % Change 2020 2019



Consolidated sales, as reported $ 28,673,363 $ 28,916,847 (0.8 )%

Impact of changes in foreign - 119,002 currencies

Impact of wind down and - (251,614 ) dispositions

Non-GAAP consolidated sales $ 28,673,363 $ 28,784,235 (0.4 )%



Global components sales, as $ 20,502,687 $ 20,250,735 1.2 %reported

Impact of changes in foreign - 70,485 currencies

Impact of wind down - (240,473 )

Non-GAAP global components sales $ 20,502,687 $ 20,080,747 2.1 %



Americas components sales, as $ 6,183,119 $ 7,167,295 (13.7 )%reported

Impact of changes in foreign - (4,758 ) currencies

Impact of wind down - (189,963 )

Non-GAAP Americas components sales $ 6,183,119 $ 6,972,574 (11.3 )%



Europe components sales, as $ 4,987,534 $ 5,412,379 (7.8 )%reported

Impact of changes in foreign - 74,491 currencies

Impact of wind down - (50,510 )

Non-GAAP Europe components sales $ 4,987,534 $ 5,436,360 (8.3 )%



Asia components sales, as reported $ 9,332,034 $ 7,671,061 21.7 %

Impact of changes in foreign - 752 currencies

Non-GAAP Asia components sales $ 9,332,034 $ 7,671,813 21.6 %



Global ECS sales, as reported $ 8,170,676 $ 8,666,112 (5.7 )%

Impact of changes in foreign - 48,517 currencies

Impact of dispositions - (11,141 )

Non-GAAP global ECS sales $ 8,170,676 $ 8,703,488 (6.1 )%



Europe ECS sales, as reported $ 3,061,304 $ 3,034,087 0.9 %

Impact of changes in foreign - 65,787 currencies

Impact of dispositions - (11,141 )

Non-GAAP Europe ECS sales $ 3,061,304 $ 3,088,733 (0.9 )%



Americas ECS sales, as reported $ 5,109,372 $ 5,632,025 (9.3 )%

Impact of changes in foreign - (17,270 ) currencies

Non-GAAP Americas ECS sales $ 5,109,372 $ 5,614,755 (9.0 )%

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Three months ended December 31, 2020

Reported GAAP measure

Intangible amortization expense

Restructuring & Integration charges

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impact of Wind Down

Non-recurring tax items

Other(1)

Non-GAAP measure

Sales

$

8,454,192

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

8,454,192

Gross Profit

923,686

-

-

-

-

(33

)

-

-

923,653

Operating income

321,412

9,376

6,340

(840

)

-

(417

)

-

-

335,871

Income before income taxes

296,318

9,376

6,340

(840

)

-

(412

)

-

(8,531

)

302,251

Provision for income taxes

59,342

2,405

(918

)

(201

)

-

102

-

(2,053

)

58,677

Consolidated net income

236,976

6,971

7,258

(639

)

-

(514

)

-

(6,478

)

243,574

Noncontrolling interests

905

148

-

-

-

-

-

-

1,053

Net income attributable to shareholders

$

236,071

$

6,823

$

7,258

$

(639

)

$

-

$

(514

)

$

-

$

(6,478

)

$

242,521

Net income per diluted share(7)

$

3.08

$

0.09

$

0.09

$

(0.01

)

$

-

$

(0.01

)

$

-

$

(0.08

)

$

3.17

Effective tax rate

20.0

%

19.4

%

Three months ended December 31, 2019

Reported GAAP measure

Intangible amortization expense(2)

Restructuring & Integration charges(2)

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impact of Wind Down(2)

Non-recurring tax items(8)

Other(3)

Non-GAAP measure

Sales

$

7,338,190

$

-

$

-

$

-

$

-

$

(19,375

)

$

-

$

-

$

7,318,815

Gross Profit

822,943

-

-

-

1,117

5,388

-

-

829,448

Operating income

238,108

14,311

16,350

2,850

1,117

10,912

-

1,002

284,650

Income before income taxes

169,648

14,311

16,350

2,850

1,117

10,942

-

17,919

233,137

Provision for income taxes

57,460

4,050

3,042

607

156

(18,380

)

1,806

2,700

51,441

Consolidated net income

112,188

10,261

13,308

2,243

961

29,322

(1,806

)

15,219

181,696

Noncontrolling interests

175

138

-

-

-

-

-

-

313

Net income attributable to shareholders

$

112,013

$

10,123

$

13,308

$

2,243

$

961

$

29,322

$

(1,806

)

$

15,219

$

181,383

Net income per diluted share(7)

$

1.36

$

0.12

$

0.16

$

0.03

$

0.01

$

0.36

$

(0.02

)

$

0.18

$

2.20

Effective tax rate

33.9

%

22.1

%

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)



Three months ended December 31, 2020

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

Sales $ 8,454,192 $ - $ - $ - $ - $ - $ - $ - $ 8,454,192

Gross Profit 923,686 - - - - (33 ) - - 923,653

Operating 321,412 9,376 6,340 (840 ) - (417 ) - - 335,871 income

Income before 296,318 9,376 6,340 (840 ) - (412 ) - (8,531 ) 302,251 income taxes

Provision for 59,342 2,405 (918 ) (201 ) - 102 - (2,053 ) 58,677 income taxes

Consolidated 236,976 6,971 7,258 (639 ) - (514 ) - (6,478 ) 243,574 net income

Noncontrolling 905 148 - - - - - - 1,053 interests

Net incomeattributable $ 236,071 $ 6,823 $ 7,258 $ (639 ) $ - $ (514 ) $ - $ (6,478 ) $ 242,521 toshareholders

Net income perdiluted share^ $ 3.08 $ 0.09 $ 0.09 $ (0.01 ) $ - $ (0.01 ) $ - $ (0.08 ) $ 3.17 (7)

Effective tax 20.0 % 19.4 %rate



Three months ended December 31, 2019

Reported Intangible Restructuring AFS Digital GAAP amortization & Integration Reserves & Write Impact of Non-recurring Other^(3) Non-GAAP measure expense^(2) charges^(2) Recoveries Downs & Wind Down^(2) tax items^(8) measure Recoveries

Sales $ 7,338,190 $ - $ - $ - $ - $ (19,375 ) $ - $ - $ 7,318,815

Gross Profit 822,943 - - - 1,117 5,388 - - 829,448

Operating 238,108 14,311 16,350 2,850 1,117 10,912 - 1,002 284,650 income

Income before 169,648 14,311 16,350 2,850 1,117 10,942 - 17,919 233,137 income taxes

Provision for 57,460 4,050 3,042 607 156 (18,380 ) 1,806 2,700 51,441 income taxes

Consolidated 112,188 10,261 13,308 2,243 961 29,322 (1,806 ) 15,219 181,696 net income

Noncontrolling 175 138 - - - - - - 313 interests

Net incomeattributable $ 112,013 $ 10,123 $ 13,308 $ 2,243 $ 961 $ 29,322 $ (1,806 ) $ 15,219 $ 181,383 toshareholders

Net income perdiluted share^ $ 1.36 $ 0.12 $ 0.16 $ 0.03 $ 0.01 $ 0.36 $ (0.02 ) $ 0.18 $ 2.20 (7)

Effective tax 33.9 % 22.1 %rate

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)

Year ended December 31, 2020

Reported GAAP measure

Intangible amortization expense

Restructuring & Integration charges

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impairments(4)

Impact of Wind Down

Non-recurring tax items(8)

Other(5)

Non-GAAP measure

Sales

$

28,673,363

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

-

$

28,673,363

Gross Profit

3,191,130

-

-

-

-

-

(11,204

)

-

-

3,179,926

Operating income

894,511

38,417

13,288

(1,796

)

-

7,223

(14,728

)

-

-

936,915

Income before income taxes

759,259

38,417

13,288

(1,796

)

-

7,223

(14,704

)

-

(7,117

)

794,570

Provision for income taxes

172,795

9,866

1,301

(432

)

-

2,356

(3,143

)

1,272

(1,717

)

182,298

Consolidated net income

586,464

28,551

11,987

(1,364

)

-

4,867

(11,561

)

(1,272

)

(5,400

)

612,272

Noncontrolling interests

2,026

568

-

-

-

-

-

-

-

2,594

Net income attributable to shareholders

$

584,438

$

27,983

$

11,987

$

(1,364

)

$

-

$

4,867

$

(11,561

)

$

(1,272

)

$

(5,400

)

$

609,678

Net income per diluted share(7)

$

7.43

$

0.36

$

0.15

$

(0.02

)

$

-

$

0.06

$

(0.15

)

$

(0.02

)

$

(0.07

)

$

7.75

Effective tax rate

22.8

%

22.9

%

Year ended December 31, 2019

Reported GAAP measure

Intangible amortization expense(2)

Restructuring & Integration charges(2)

AFS Reserves & Recoveries

Digital Write Downs & Recoveries

Impairments(6)

Impact of Wind Down(2)

Non-recurring tax items(8)

Other(3)

Non-GAAP measure

Sales

$

28,916,847

$

-

$

-

$

-

$

-

$

-

$

(240,473

)

$

-

$

-

$

28,676,374

Gross Profit

3,298,381

-

-

1,868

22,332

-

(1,975

)

-

-

3,320,606

Operating income

107,696

42,383

78,429

18,037

22,332

623,796

162,244

-

1,868

1,056,785

Income (loss) before income taxes

(111,830

)

42,383

78,429

18,037

22,332

623,796

162,356

-

10,921

846,424

Provision for income taxes

88,338

11,913

19,540

4,339

5,390

64,246

12,631

(1,696

)

750

205,451

Consolidated net income (loss)

(200,168

)

30,470

58,889

13,698

16,942

559,550

149,725

1,696

10,171

640,973

Noncontrolling interests

3,919

558

-

-

-

-

-

-

-

4,477

Net income (loss) attributable to shareholders

$

(204,087

)

$

29,912

$

58,889

$

13,698

$

16,942

$

559,550

$

149,725

$

1,696

$

10,171

636,496

Net income (loss) per diluted share(7)

$

(2.44

)

$

0.36

$

0.70

$

0.16

$

0.20

$

6.70

$

1.79

$

0.02

$

0.12

$

7.55

Effective tax rate

(79.0

)

%

24.3

%

(1) Other includes gain on investments, net.

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

(3) Other includes loss on disposition of businesses, net, gain on investments, net, interest related to uncertain tax position related to legislation changes, and pension settlement loss.

(4) Impairments includes $7,223 in impairment charges related to various other long-lived assets unrelated to the personal computer and mobility asset disposition business.

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

(6) 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.

(7) For the year ended December 31, 2019, the non-GAAP net income per diluted share calculation includes 752 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.

(8) Includes income tax (expense) benefit related to legislation changes and other non-recurring tax adjustments.

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)



Year ended December 31, 2020

Reported Intangible Restructuring AFS Digital GAAP amortization & Integration Reserves & Write Impairments Impact of Non-recurring Other^(5) Non-GAAP measure expense charges Recoveries Downs & ^(4) Wind Down tax items^(8) measure Recoveries

Sales $ 28,673,363 $ - $ - $ - $ - $ - $ - $ - $ - $ 28,673,363

Gross Profit 3,191,130 - - - - - (11,204 ) - - 3,179,926

Operating 894,511 38,417 13,288 (1,796 ) - 7,223 (14,728 ) - - 936,915 income

Income before 759,259 38,417 13,288 (1,796 ) - 7,223 (14,704 ) - (7,117 ) 794,570 income taxes

Provision for 172,795 9,866 1,301 (432 ) - 2,356 (3,143 ) 1,272 (1,717 ) 182,298 income taxes

Consolidated 586,464 28,551 11,987 (1,364 ) - 4,867 (11,561 ) (1,272 ) (5,400 ) 612,272 net income

Noncontrolling 2,026 568 - - - - - - - 2,594 interests

Net incomeattributable $ 584,438 $ 27,983 $ 11,987 $ (1,364 ) $ - $ 4,867 $ (11,561 ) $ (1,272 ) $ (5,400 ) $ 609,678 toshareholders

Net income perdiluted share^ $ 7.43 $ 0.36 $ 0.15 $ (0.02 ) $ - $ 0.06 $ (0.15 ) $ (0.02 ) $ (0.07 ) $ 7.75 (7)

Effective tax 22.8 % 22.9 %rate



Year ended December 31, 2019

Reported Intangible Restructuring AFS Digital GAAP amortization & Integration Reserves & Write Impairments Impact of Non-recurring Other^(3) Non-GAAP measure expense^(2) charges^(2) Recoveries Downs & ^(6) Wind Down^(2) tax items^(8) measure Recoveries

Sales $ 28,916,847 $ - $ - $ - $ - $ - $ (240,473 ) $ - $ - $ 28,676,374

Gross Profit 3,298,381 - - 1,868 22,332 - (1,975 ) - - 3,320,606

Operating 107,696 42,383 78,429 18,037 22,332 623,796 162,244 - 1,868 1,056,785 income

Income (loss)before income (111,830 ) 42,383 78,429 18,037 22,332 623,796 162,356 - 10,921 846,424 taxes

Provision for 88,338 11,913 19,540 4,339 5,390 64,246 12,631 (1,696 ) 750 205,451 income taxes

Consolidatednet income (200,168 ) 30,470 58,889 13,698 16,942 559,550 149,725 1,696 10,171 640,973 (loss)

Noncontrolling 3,919 558 - - - - - - - 4,477 interests

Net income(loss)attributable $ (204,087 ) $ 29,912 $ 58,889 $ 13,698 $ 16,942 $ 559,550 $ 149,725 $ 1,696 $ 10,171 636,496 toshareholders

Net income(loss) per $ (2.44 ) $ 0.36 $ 0.70 $ 0.16 $ 0.20 $ 6.70 $ 1.79 $ 0.02 $ 0.12 $ 7.55 diluted share^(7)

Effective tax (79.0 ) % 24.3 %rate



(1) Other includes gain on investments, net.

(2) Amounts for restructuring, integration, and other charges, identifiableintangible asset amortization, loss on disposition of businesses, net, certaintax adjustments, and impairments related to the personal computer and mobilityasset disposition business are included in "impact of wind down" above.

(3) Other includes loss on disposition of businesses, net, gain on investments,net, interest related to uncertain tax position related to legislation changes,and pension settlement loss.

(4) Impairments includes $7,223 in impairment charges related to various otherlong-lived assets unrelated to the personal computer and mobility assetdisposition business.

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

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

(7) For the year ended December 31, 2019, the non-GAAP net income per dilutedshare calculation includes 752 thousand shares that were excluded from the GAAPnet 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.

(8) Includes income tax (expense) benefit related to legislation changes andother non-recurring tax adjustments.

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)

Quarter Ended

Year Ended

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Sales:

Global components

$

5,923,094

$

4,738,993

$

20,502,687

$

20,250,735

Global ECS

2,531,098

2,599,197

8,170,676

8,666,112

Consolidated

$

8,454,192

$

7,338,190

$

28,673,363

$

28,916,847

Operating income (loss):

Global components

$

230,127

$

149,794

$

780,333

$

(10,199

)

Global ECS (a)

155,880

148,711

353,763

426,192

Corporate (b)

(64,595

)

(60,397

)

(239,585

)

(308,297

)

Consolidated

$

321,412

$

238,108

$

894,511

$

107,696

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)



Quarter Ended Year Ended

December 31, December 31, December 31, December 31, 2020 2019 2020 2019

Sales:

Global components $ 5,923,094 $ 4,738,993 $ 20,502,687 $ 20,250,735

Global ECS 2,531,098 2,599,197 8,170,676 8,666,112

Consolidated $ 8,454,192 $ 7,338,190 $ 28,673,363 $ 28,916,847

Operating income (loss):

Global components $ 230,127 $ 149,794 $ 780,333 $ (10,199 )

Global ECS (a) 155,880 148,711 353,763 426,192

Corporate (b) (64,595 ) (60,397 ) (239,585 ) (308,297 )

Consolidated $ 321,412 $ 238,108 $ 894,511 $ 107,696

(a)

Includes reserves and other adjustments of approximately $29.9 million primarily related to foreign tax and other loss contingencies for the year ended December 31, 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 of $6.3 million and $13.3 million for the fourth quarter and year ended December 31, 2020 and $16.4 million and $79.0 million for the fourth quarter and year ended December 31, 2019, respectively. Also included are impairment charges of $2.3 million related to various long-lived assets for the year ended December 31, 2020 and a net loss on disposition of $1.0 million and $1.9 million for the fourth quarter and year ended December 31, 2019, respectively.

Includes reserves and other adjustments of approximately $29.9 million primarily related to foreign tax and other loss contingencies for the year(a) ended December 31, 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 of $6.3 million and $13.3 million for the fourth quarter and year ended December 31, 2020 and $16.4 million and $79.0 million for the fourth quarter and year ended(b) December 31, 2019, respectively. Also included are impairment charges of $2.3 million related to various long-lived assets for the year ended December 31, 2020 and a net loss on disposition of $1.0 million and $1.9 million for the fourth quarter and year ended December 31, 2019, respectively.

NON-GAAP SEGMENT RECONCILIATION

Quarter Ended

Year Ended

December 31, 2020

December 31, 2019

December 31, 2020

December 31, 2019

Global components operating income (loss), as reported

$

230,127

$

149,794

$

780,333

$

(10,199

)

Intangible assets amortization expense (a)

7,011

7,135

28,664

26,594

Impairments (a)

-

-

-

623,796

Impact of wind-down (a)

(417

)

10,912

(14,728

)

161,664

AFS notes receivable reserve (recoveries) and inventory write-downs

(840

)

2,850

(1,796

)

18,037

Digital inventory write-downs, net

-

1,117

-

22,332

Global components non-GAAP operating income

$

235,881

$

171,808

$

792,473

$

842,224

Global ECS operating income, as reported

$

155,880

$

148,711

$

353,763

$

426,192

Intangible assets amortization expense

2,365

7,176

9,753

15,789

Impairments

-

-

4,918

-

Global ECS non-GAAP operating income

$

158,245

$

155,887

$

368,434

$

441,981

NON-GAAP SEGMENT RECONCILIATION



Quarter Ended Year Ended

December December December December 31, 2020 31, 2019 31, 2020 31, 2019

Global components operating $ 230,127 $ 149,794 $ 780,333 $ (10,199 )income (loss), as reported

Intangible assets 7,011 7,135 28,664 26,594 amortization expense (a)

Impairments (a) - - - 623,796

Impact of wind-down (a) (417 ) 10,912 (14,728 ) 161,664

AFS notes receivablereserve (recoveries) and (840 ) 2,850 (1,796 ) 18,037 inventory write-downs

Digital inventory - 1,117 - 22,332 write-downs, net

Global components non-GAAP $ 235,881 $ 171,808 $ 792,473 $ 842,224 operating income

Global ECS operating $ 155,880 $ 148,711 $ 353,763 $ 426,192 income, as reported

Intangible assets 2,365 7,176 9,753 15,789 amortization expense

Impairments - - 4,918 -

Global ECS non-GAAP $ 158,245 $ 155,887 $ 368,434 $ 441,981 operating income

(a)

For the fourth quarter and year ended December 31, 2019, impact of wind down includes 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210204005341/en/

CONTACT: Steven O'Brien, Vice President, Investor Relations 303-824-4544

CONTACT: Media Contact: John Hourigan, Vice President, Global Communications 303-824-4586