
ARROW ELECTRONICS, INC. 9151東風景大道圓形科羅拉多州Centennial，郵遞區號80112 303-824-4000		資訊

附錄99.1

Arrow Electronics報告2024年第三季度業績

-- 銷售額為68億美元，處於指引區間的高端 --

-- 每股稀釋收益為1.88美元；非通用會計原則每股稀釋收益為2.38美元 --

科羅拉多州世紀城--（美國商業資訊NEW）- 2024年10月31日--Arrow Electronics, Inc.（紐交所:ARW）今日宣布了2024年第三季度的財務業績

「在第三季度，公司繼續在充滿挑戰的環境中表現出色。儘管我們的全球元件業務仍在進行周期性修正，但我們看到企業IT支出增勢，」Arrow總裁兼首席執行官Sean Kerins說。「我很高興我們的營收超過指引範圍的中間值，非GAAP每股盈利也超出我們的預期，」Kerins先生說。


箭頭集團
	季度結束				九個月結束了
		九月二十八日,		九月三十日，		九月二十八日,		九月三十日，
(以百萬為單位，每股數據除外)		2024		2023		2024		2023
合併銷售額	$	6,823	$	8,007	$	20,640	$	25,258
歸屬股東的凈利潤		101		199		293		709
每股稀釋後凈利潤		1.88		3.53		5.42		12.28
歸屬股東的非依據通用會計準則的凈利潤 ⁽¹⁾		128		233		410		757
非通用會計凈利潤每股稀釋		2.38		4.14		7.59		13.12

2024年第三季度，銷售額同比下降15％。與2023年第三季度相比，外幣匯率變化對銷售額產生約3700萬美元的正面影響，對每股收益基礎上稀釋的影響為0.02美元。

全球貨幣元件

“在我們的全球貨幣元件業務中，更廣泛的生態系統庫存修正持續存在。考慮到市場環境，我們將繼續專注於我們的供應商和客戶，同時管理我們可控制的運營因素，” Kerins先生說。


全球元件
	季度結束				九個月結束了
		九月二十八日,		九月三十日，		九月二十八日,		九月三十日，
(以百萬為單位)		2024		2023		2024		2023
全球貨幣元件銷售	$	4,946	$	6,245	$	15,170	$	19,784
全球元件營業收入		189		379		624		1,178
全球元件非依照普通會計準則（non-GAAP）的營業收入		193		386		654		1,198

2024年第三季度，全球元件銷售額同比下降21％。美洲元件第三季度銷售額同比下降12％。歐洲、中東和非洲元件第三季度銷售額同比下降35％，基於固定匯率的同比下降36％。亞太地區元件第三季度銷售額同比下降15％。


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ARROW ELECTRONICS, INC. 9151 EASt PANORAMA CIRCLE CENTENNIAL, CO 80112 303-824-4000		資訊

全球企业计算解决方案

“在全球ECS业务中，我们看到更好的动力和强劲的销售增长，主要是由健康的混合云解决方案市场、欧洲稳定的市场动态以及北美市场对我们的改善轨迹所突显，” Kerins先生表示。


全球企業計算解決方案（ECS）
	季度結束				九個月結束了
		九月二十八日,		九月三十日，		九月二十八日,		九月三十日，
(以百萬為單位)		2024		2023		2024		2023
全球貨幣ECS銷售	$	1,877	$	1,762	$	5,471	$	5,474
全球貨幣 ECS 營業收入		76		55		250		222
全球貨幣 ECS 非依據普遍會計原則的營業收入		77		56		253		226

在2024年第三季度，全球貨幣ECS銷售同比增長7％，在恆定貨幣基礎上同比增長6％。歐洲、中東和非洲ECS第三季銷售同比增長13％，在恆定貨幣基礎上同比增長11％。美洲ECS第三季銷售同比增長2％。

其他財務信息

“在第三季度，我們將庫存水平降低約$12500萬，或是過去12個月的$13億。我們還從業務現金流中獲得了$8100萬，並回購了價值$5000萬的股票，” Arrow的高級副總裁兼財務長Raj Agrawal表示。

“為了簡化我們的業務，我們正在進行業務重組以進一步節省成本，” Agrawal先生表示。

除了迄今採取的行動外，公司估計未來兩年的總業務重組費用為$18500萬，其中包括$13500萬的效率舉措成本，以及約$5000萬的退出某些非核心業務線的成本。公司已確定機會，到2026年底可以通過重新組織和整合公司某些領域來減少約$9000萬至$10000萬的年度營業費用。

¹ 非GAAP財務指標與GAAP財務指標的調和表列於此文件中。


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2024年第四季展望

●	C綜合銷售額為66.7億至72.7億美元，全球元件銷售額為45億至49億美元，全球企業計算解決方案銷售額為21.7億至23.7億美元

●	每股稀釋基礎凈收入為1.35至1.55美元，非通用會計原則稀釋基礎每股凈收入為2.48至2.68美元

●	稅率平均在23%至25%的範圍內

●	利息費約為6,000萬至6,500萬美元

●	外幣匯率變動將使銷售額約增加6,000萬美元，並使每股收益在稀釋基礎上增加0.02美元，與2023年第四季度相比

●	與2024年第三季度相比，外幣匯率變動對銷售增長或每股收益在稀釋基礎上沒有影響


2024年第四季度GAAP與非GAAP展望對比
非依照美國通用會計原則（Non-GAAP）銷售收入調解表
	季度结束					季度结束
	12月31日，		12月31日，			12月31日，		九月二十八日,
(以十億計)	2024		2023		百分比變化	2024		2024		百分比變化

全球元件銷售，按照GAAP標準計算	$	4.50 - 4.90	$	5.64	(20%) - (13%)	$	4.50 - 4.90	$	4.95	(9%) - (1%)
外幣變動的影響		—		0.04			—		—
全球元件銷售額，匯率不變	$	4.50 - 4.90	$	5.68	(21%) - (14%)	$	4.50 - 4.90	$	4.95	(9%) - (1%)

全球貨幣元件銷售，GAAP	$	2.17 - 2.37	$	2.21	(2%) - 7%	$	2.17 - 2.37	$	1.88	15% - 26%
外國貨幣變動的影響		—		0.02			—		—
全球ECS銷售，恆定貨幣	$	2.17 - 2.37	$	2.23	(3%) - 6%	$	2.17 - 2.37	$	1.88	15% - 26%

非通用會計盈利對賬

無形資產攤銷

重組與

報告的國際會計準則（GAAP）指標

支出

整合費用

非國際會計準則（Non-GAAP）指標

每股稀釋後凈利潤

$1.35 至 $1.55

$0.10

$1.03

$2.48至$2.68

收益報告

請參閱投資者arrow.com網站上的收益報告，作為公司收益公佈的補充。公司使用其網站作為披露有關公司的重要信息並遵守根據《公平披露法規》的披露義務的工具。

網路廣播和電話會議資訊

Arrow Electronics將在2024年10月31日下午1:00舉行一次會議通話，討論第三季度2024年財務業績。

投資者.arrow.com的活動版块提供会议通话的现场网络直播，或可直接通过https://events.q4inc.com/attendee/487434328访问网络直播链接。会议通话结束后不久，在Arrow网站上将提供网络直播重播，持续一年。

有關Arrow Electronics

Arrow Electronics（紐交所:ARW）為成千上萬的領先製造商和服務提供商提供科技解決方案。全球2023年銷售額達330億美元，Arrow的產品組合支持主要行業和市場的科技。詳情請見arrow.com。

有關前瞻性陳述的資訊

本新聞稿包括根據聯邦證券法下定義的“前瞻性”陳述，包括但不限於有關Arrow未來財務表現的陳述，包括其對第四季度財務結果的展望。


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fiscal 2024 such as sales, net income per diluted share, non-GAAP net income per diluted share, average tax rate, interest and other expense, impact to sales due to changes in foreign currencies, intangible amortization expense per diluted share, restructuring & integration charges per diluted share, the timing of the completion of the Operating Expense Efficiency Plan (the “Plan”) and Arrow’s estimated costs and expected operating expense reductions from the Plan, industry trends and expectations regarding market demand and conditions and shareholder returns. These and other forward-looking statements are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: the incurrence of additional charges not currently contemplated and failure to realize contemplated cost savings due to unanticipated events that may occur, including in connection with the implementation of the Plan; unfavorable economic conditions; disruptions or inefficiencies in the supply chain; political instability and changes; impacts of military conflict and sanctions; industry conditions; changes in product supply, pricing and customer demand; competition; other vagaries in the global components and the global ECS markets; deteriorating economic conditions, including economic recession, inflation, tax rates, foreign currency exchange rates, or the availability of capital; the effects of natural or man-made catastrophic events; changes in relationships with key suppliers; increased profit margin pressure; changes in legal and regulatory matters; non-compliance with certain regulations, such as export, antitrust, and anti-corruption laws; foreign tax and other loss contingencies; breaches of security or privacy of business information and information system failures, including related to current or future implementations, integrations and upgrades; outbreaks, epidemics, pandemics, or public health crises; restructuring activities and impacts thereof; and the company's ability to generate positive cash flow. For a further discussion of these and other factors that could cause the company's future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K, as well as in other filings the company makes with the Securities and Exchange Commission. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.

Certain Non-GAAP Financial Information

In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information. The company provides the following non-GAAP metrics: sales, operating income (including by business segment), income before income taxes, provision for income taxes, consolidated net income, noncontrolling interest, net income attributable to shareholders, effective tax rate and net income per share on a diluted basis. The foregoing non-GAAP measures are adjusted by certain of the following, as applicable: impact of changes in foreign currencies (referred to as “changes in foreign currencies” or “on a constant currency basis”) by re-translating prior-period results at current period foreign exchange rates; identifiable intangible asset amortization, restructuring, integration, and other charges; net gains and losses on investments; write downs (reversals) to inventory related to the wind down of a business within the global components reportable segment (“impact of wind down”); loss on extinguishment of debt; and impact of tax legislation changes. Management believes that providing this additional information is useful to the reader to better assess and understand the company’s operating performance and future prospects in the same manner as management, especially when comparing results with previous periods. Management typically monitors the business as adjusted for these items, in addition to GAAP results, to understand and compare operating results across accounting periods, for internal budgeting purposes, for short- and long-term operating plans, and to evaluate the company's financial performance. However, analysis of results on a non-GAAP basis should be used as a complement to, in conjunction with, and not as a substitute for, data presented in accordance with GAAP. For further discussion of our non-GAAP measures and related adjustments, refer to the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the company's most recent Quarterly Report on Form 10-Q and the company's most recent Annual Report on Form 10-K.


Contacts
Investors:		Brad Windbigler,
		Treasurer and Vice President, Investor Relations
		720-654-9893

Media:		John Hourigan,
		Vice President, Public Affairs and Corporate Marketing
		303-824-4586


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ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)


	Quarter Ended				Nine Months Ended
		September 28, 2024		September 30, 2023		September 28, 2024		September 30, 2023

Sales	$	6,823,319	$	8,007,019	$	20,640,447	$	25,257,963
Cost of sales		6,038,491		7,027,422		18,151,349		22,098,495
Gross profit		784,828		979,597		2,489,098		3,159,468
Operating expenses:
Selling, general, and administrative		534,508		563,150		1,670,429		1,822,783
Depreciation and amortization		40,592		45,005		123,356		137,948
Restructuring, integration, and other		34,466		31,359		121,859		44,252
		609,566		639,514		1,915,644		2,004,983
Operating income		175,262		340,083		573,454		1,154,485
Equity in earnings of affiliated companies		1,002		1,392		1,912		4,373
Gain (loss) on investments, net		3,757		(6,159)		(760)		4,649
Loss on extinguishment of debt		—		—		(1,657)		—
Employee benefit plan expense, net		(979)		(854)		(2,892)		(2,510)
Interest and other financing expense, net		(62,947)		(82,180)		(209,442)		(246,672)
Income before income taxes		116,095		252,282		360,615		914,325
Provision for income taxes		15,198		52,241		66,996		201,168
Consolidated net income		100,897		200,041		293,619		713,157
Noncontrolling interests		330		1,382		753		4,189
Net income attributable to shareholders	$	100,567	$	198,659	$	292,866	$	708,968
Net income per share:
Basic	$	1.90	$	3.57	$	5.48	$	12.43
Diluted	$	1.88	$	3.53	$	5.42	$	12.28
Weighted-average shares outstanding:
Basic		53,010		55,597		53,476		57,021
Diluted		53,475		56,298		53,999		57,715


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ARROW ELECTRONICS, INC.

CONSOLIDATED BALANCE SHEETS

(In thousands except par value)

(Unaudited)


	September 28, 2024		December 31, 2023

ASSETS
Current assets:
Cash and cash equivalents	$	248,000	$	218,053
Accounts receivable, net		11,726,601		12,238,073
Inventories		4,529,655		5,187,225
Other current assets		1,022,620		684,126
Total current assets		17,526,876		18,327,477
Property, plant, and equipment, at cost:
Land		5,691		5,691
Buildings and improvements		193,315		195,579
Machinery and equipment		1,648,708		1,632,606
		1,847,714		1,833,876
Less: Accumulated depreciation and amortization		(1,354,179)		(1,303,136)
Property, plant, and equipment, net		493,535		530,740
Investments in affiliated companies		61,506		62,741
Intangible assets, net		105,313		127,440
Goodwill		2,084,160		2,050,426
Other assets		663,259		627,344
Total assets	$	20,934,649	$	21,726,168
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	9,392,389	$	10,070,015
Accrued expenses		1,668,633		1,463,915
Short-term borrowings, including current portion of long-term debt		909,826		1,653,954
Total current liabilities		11,970,848		13,187,884
Long-term debt		2,363,241		2,153,553
Other liabilities		564,483		507,424

Equity:
Shareholders’ equity:
Common stock, par value $1:
Authorized - 160,000 shares in both 2024 and 2023
Issued - 58,059 and 57,691 shares in 2024 and 2023, respectively		58,059		57,691
Capital in excess of par value		582,572		553,340
Treasury stock (5,472 and 3,880 shares in 2024 and 2023, respectively), at cost		(506,157)		(297,745)
Retained earnings		6,083,083		5,790,217
Accumulated other comprehensive loss		(254,460)		(298,039)
Total shareholders’ equity		5,963,097		5,805,464
Noncontrolling interests		72,980		71,843
Total equity		6,036,077		5,877,307
Total liabilities and equity	$	20,934,649	$	21,726,168


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ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Quarter Ended
	September 28, 2024		September 30, 2023
Cash flows from operating activities:
Consolidated net income	$	100,897	$	200,041
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization		40,592		45,005
Amortization of stock-based compensation		8,487		6,519
Equity in earnings of affiliated companies		(1,002)		(1,392)
Deferred income taxes		(12,889)		(19,639)
Loss (gain) on investments, net		(3,686)		6,159
Other		(670)		1,092
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net		(701,168)		260,749
Inventories		169,211		(383,647)
Accounts payable		550,797		157,482
Accrued expenses		(83,506)		127,235
Other assets and liabilities		13,495		(77,897)
Net cash provided by operating activities		80,558		321,707
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(18,519)		(20,670)
Other		10,677		—
Net cash used for investing activities		(7,842)		(20,670)
Cash flows from financing activities:
Change in short-term and other borrowings		549,451		603,693
Proceeds from (repayments of) long-term bank borrowings, net		(613,449)		(557,308)
Net proceeds from note offering		494,886		—
Redemption of notes		(500,000)		—
Proceeds from exercise of stock options		585		443
Repurchases of common stock		(51,051)		(203,491)
Other		(899)		—
Net cash used for financing activities		(120,477)		(156,663)
Effect of exchange rate changes on cash		82,752		(51,462)
Net increase in cash and cash equivalents		34,991		92,912
Cash and cash equivalents at beginning of period		213,009		240,382
Cash and cash equivalents at end of period	$	248,000	$	333,294


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ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)


	Nine Months Ended
	September 28, 2024		September 30, 2023
Cash flows from operating activities:
Consolidated net income	$	293,619	$	713,157
Adjustments to reconcile consolidated net income to net cash provided by operations:
Depreciation and amortization		123,356		137,948
Amortization of stock-based compensation		30,187		34,868
Equity in earnings of affiliated companies		(1,912)		(4,373)
Deferred income taxes		(20,287)		(53,038)
Loss on extinguishment of debt		1,657		—
Loss (gain) on investments, net		1,077		(4,649)
Other		4,194		4,078
Change in assets and liabilities, net of effects of acquired businesses:
Accounts receivable, net		512,394		1,585,521
Inventories		662,685		(525,020)
Accounts payable		(687,015)		(1,355,777)
Accrued expenses		189,537		(88,348)
Other assets and liabilities		(305,543)		(25,660)
Net cash provided by operating activities		803,949		418,707
Cash flows from investing activities:
Acquisition of property, plant, and equipment		(70,155)		(57,775)
Other		17,129		10,962
Net cash used for investing activities		(53,026)		(46,813)
Cash flows from financing activities:
Change in short-term and other borrowings		(595,069)		802,032
Proceeds from (repayments of) long-term bank borrowings, net		60,158		(566,734)
Net proceeds from note offering		989,564		496,268
Redemption of notes		(1,000,000)		(300,000)
Proceeds from exercise of stock options		5,353		16,824
Repurchases of common stock		(214,352)		(719,708)
Settlement of forward-starting interest rate swap		—		56,711
Other		(1,040)		(142)
Net cash used for financing activities		(755,386)		(214,749)
Effect of exchange rate changes on cash		34,410		(766)
Net increase in cash and cash equivalents		29,947		156,379
Cash and cash equivalents at beginning of period		218,053		176,915
Cash and cash equivalents at end of period	$	248,000	$	333,294


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ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)


	Quarter Ended
	September 28, 2024		September 30, 2023		% Change

Consolidated sales, as reported	$	6,823,319	$	8,007,019	(14.8)	%
Impact of changes in foreign currencies		—		36,708
Consolidated sales, constant currency	$	6,823,319	$	8,043,727	(15.2)	%

Global components sales, as reported	$	4,946,059	$	6,245,192	(20.8)	%
Impact of changes in foreign currencies		—		24,592
Global components sales, constant currency	$	4,946,059	$	6,269,784	(21.1)	%

Americas components sales, as reported	$	1,638,459	$	1,869,934	(12.4)	%
Impact of changes in foreign currencies		—		(809)
Americas components sales, constant currency	$	1,638,459	$	1,869,125	(12.3)	%

Asia components sales, as reported	$	2,017,814	$	2,387,835	(15.5)	%
Impact of changes in foreign currencies		—		2,433
Asia components sales, constant currency	$	2,017,814	$	2,390,268	(15.6)	%

EMEA components sales, as reported	$	1,289,786	$	1,987,423	(35.1)	%
Impact of changes in foreign currencies		—		22,968
EMEA components sales, constant currency	$	1,289,786	$	2,010,391	(35.8)	%

Global ECS sales, as reported	$	1,877,260	$	1,761,827	6.6	%
Impact of changes in foreign currencies		—		12,116
Global ECS sales, constant currency	$	1,877,260	$	1,773,943	5.8	%

Americas ECS sales, as reported	$	1,033,115	$	1,015,924	1.7	%
Impact of changes in foreign currencies		—		(645)
Americas ECS sales, constant currency	$	1,033,115	$	1,015,279	1.8	%

EMEA ECS sales, as reported	$	844,145	$	745,903	13.2	%
Impact of changes in foreign currencies		—		12,761
EMEA ECS sales, constant currency	$	844,145	$	758,664	11.3	%


		9

ARROW ELECTRONICS, INC.

NON-GAAP SALES RECONCILIATION

(In thousands)

(Unaudited)


	Nine Months Ended
	September 28, 2024		September 30, 2023		% Change

Consolidated sales, as reported	$	20,640,447	$	25,257,963	(18.3)	%
Impact of changes in foreign currencies		—		(6,154)
Consolidated sales, constant currency	$	20,640,447	$	25,251,809	(18.3)	%

Global components sales, as reported	$	15,169,507	$	19,783,867	(23.3)	%
Impact of changes in foreign currencies		—		(24,213)
Global components sales, constant currency	$	15,169,507	$	19,759,654	(23.2)	%

Americas components sales, as reported	$	4,807,991	$	6,169,949	(22.1)	%
Impact of changes in foreign currencies		—		(2,994)
Americas components sales, constant currency	$	4,807,991	$	6,166,955	(22.0)	%

Asia components sales, as reported	$	5,975,729	$	7,226,871	(17.3)	%
Impact of changes in foreign currencies		—		(39,533)
Asia components sales, constant currency	$	5,975,729	$	7,187,338	(16.9)	%

EMEA components sales, as reported	$	4,385,787	$	6,387,047	(31.3)	%
Impact of changes in foreign currencies		—		18,314
EMEA components sales, constant currency	$	4,385,787	$	6,405,361	(31.5)	%

Global ECS sales, as reported	$	5,470,940	$	5,474,096	(0.1)	%
Impact of changes in foreign currencies		—		18,059
Global ECS sales, constant currency	$	5,470,940	$	5,492,155	(0.4)	%

Americas ECS sales, as reported	$	2,904,933	$	3,014,544	(3.6)	%
Impact of changes in foreign currencies		—		(3,184)
Americas ECS sales, constant currency	$	2,904,933	$	3,011,360	(3.5)	%

EMEA ECS sales, as reported	$	2,566,007	$	2,459,552	4.3	%
Impact of changes in foreign currencies		—		21,243
EMEA ECS sales, constant currency	$	2,566,007	$	2,480,795	3.4	%


		10

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)


Three months ended September 28, 2024
	Reported			Intangible		Restructuring,		Impact of			Non
	GAAP			amortization		Integration		Wind			recurring			Non-GAAP
	measure			expense		and other		Down⁽¹⁾			tax items		Other⁽²⁾	measure
Operating income	$	175,262		$	7,308	$	34,466	$	(1,857)	$	—	$	—	$	215,179
Income before income taxes		116,095			7,308		34,466		(1,857)		—		(3,757)		152,255
Provision for income taxes		15,198			1,819		8,592		(444)		—		(902)		24,263
Consolidated net income		100,897			5,489		25,874		(1,413)		—		(2,855)		127,992
Noncontrolling interests		330			136		—		—		—		—		466
Net income attributable to shareholders	$	100,567		$	5,353	$	25,874	$	(1,413)	$	—	$	(2,855)	$	127,526
Net income per diluted share ⁽⁴⁾	$	1.88		$	0.10	$	0.48	$	(0.03)	$	—	$	(0.05)	$	2.38
Effective tax rate ⁽⁵⁾		13.1	%												15.9	%


Three months ended September 30, 2023
	Reported			Intangible		Restructuring,		Impact of			Non
	GAAP			amortization		Integration		Wind			recurring			Non-GAAP
	measure			expense		and other		Down⁽¹⁾			tax items		Other⁽²⁾	measure
Operating income	$	340,083		$	7,863	$	31,359	$	—	$	—	$	—	$	379,305
Income before income taxes		252,282			7,863		31,359		—		—		6,159		297,663
Provision for income taxes		52,241			1,959		7,321		—		—		1,476		62,997
Consolidated net income		200,041			5,904		24,038		—		—		4,683		234,666
Noncontrolling interests		1,382			138		—		—		—		—		1,520
Net income attributable to shareholders	$	198,659		$	5,766	$	24,038	$	—	$	—	$	4,683	$	233,146
Net income per diluted share ⁽⁴⁾	$	3.53		$	0.10	$	0.43	$	—	$	—	$	0.08	$	4.14
Effective tax rate ⁽⁵⁾		20.7	%												21.2	%


		11

ARROW ELECTRONICS, INC.

NON-GAAP EARNINGS RECONCILIATION

(In thousands except per share data)

(Unaudited)


Nine months ended September 28, 2024
	Reported			Intangible		Restructuring,		Impact of			Non
	GAAP			amortization		Integration		Wind			recurring			Non-GAAP
	measure			expense		and other		Down⁽¹⁾			tax items		Other⁽³⁾		measure
Operating income	$	573,454		$	22,310	$	121,859	$	10,229	$	—	$	—	$	727,852
Income before income taxes		360,615			22,310		121,859		10,229		—		2,417		517,430
Provision for income taxes		66,996			5,562		30,820		2,447		—		580		106,405
Consolidated net income		293,619			16,748		91,039		7,782		—		1,837		411,025
Noncontrolling interests		753			406		—		—		—		—		1,159
Net income attributable to shareholders	$	292,866		$	16,342	$	91,039	$	7,782	$	—	$	1,837	$	409,866
Net income per diluted share ⁽⁴⁾	$	5.42		$	0.30	$	1.69	$	0.14	$	—	$	0.03	$	7.59
Effective tax rate ⁽⁵⁾		18.6	%												20.6	%


Nine months ended September 30, 2023
	Reported			Intangible		Restructuring,		Impact of			Non
	GAAP			amortization		Integration		Wind			recurring			Non-GAAP
	measure			expense		and other		Down⁽¹⁾			tax items		Other⁽²⁾		measure
Operating income	$	1,154,485		$	23,751	$	44,252	$	—	$	—	$	—	$	1,222,488
Income before income taxes		914,325			23,751		44,252		—		—		(4,649)		977,679
Provision for income taxes		201,168			5,961		10,638		—		(942)		(1,114)		215,711
Consolidated net income		713,157			17,790		33,614		—		942		(3,535)		761,968
Noncontrolling interests		4,189			408		—		—		—		—		4,597
Net income attributable to shareholders	$	708,968		$	17,382	$	33,614	$	—	$	942	$	(3,535)	$	757,371
Net income per diluted share ⁽⁴⁾	$	12.28		$	0.30	$	0.58	$	—	$	0.02	$	(0.06)	$	13.12
Effective tax rate ⁽⁵⁾		22.0	%												22.1	%

(1) Includes write downs (reversals) of inventory related to the wind down of a business.

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

(3) Other includes loss (gain) on investments, net and loss on extinguishment of debt.

(4) The sum of the components for non-GAAP diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.

(5) The items as shown in this table, represent the reconciling items for the tax rate as reported and as a non-GAAP measure.


		12

ARROW ELECTRONICS, INC.

SEGMENT INFORMATION

(In thousands)

(Unaudited)


	Quarter Ended				Nine Months Ended
	September 28,		September 30,		September 28,		September 30,
	2024		2023		2024		2023
Sales:
Global components	$	4,946,059	$	6,245,192	$	15,169,507	$	19,783,867
Global ECS		1,877,260		1,761,827		5,470,940		5,474,096
Consolidated	$	6,823,319	$	8,007,019	$	20,640,447	$	25,257,963
Operating income (loss):
Global components (a)	$	188,600	$	379,053	$	624,363	$	1,177,906
Global ECS (b)		75,614		54,624		249,654		221,951
Corporate (c)		(88,952)		(93,594)		(300,563)		(245,372)
Consolidated	$	175,262	$	340,083	$	573,454	$	1,154,485

(a)

Global components operating income includes a reversal of $1.9 million and charges of $10.2 million in inventory write downs related to the wind down of a business for the third quarter and first nine months of 2024. Global components operating income includes $62.2 million in settlement charges recorded as a reduction to operating expense for the third quarter and first nine months of 2023.

(b)

For the third quarter and first nine months of 2023, global ECS operating income includes charges of $21.9 million and $25.4 million, respectively, to increase the allowance for credit losses related to one customer. For the first nine months of 2024, global ECS operating income includes a reversal of $20.0 million for aged receivables that were collected, related to the same customer, which was taken during the second quarter of 2024.

(c)	Corporate operating loss includes restructuring, integration, and other charges of $34.5 million and $121.9 million for the third quarter and first nine months of 2024, respectively, and $31.4 million and $44.3 million for the third quarter and first nine months of 2023, respectively.

NON-GAAP SEGMENT RECONCILIATION


	Quarter Ended				Nine Months Ended
	September 28,		September 30,		September 28,		September 30,
	2024		2023		2024		2023
Global components operating income, as reported	$	188,600	$	379,053	$	624,363	$	1,177,906
Intangible assets amortization expense		6,247		6,640		19,134		20,064
Impact of wind down to inventory		(1,857)		—		10,229		—
Global components non-GAAP operating income	$	192,990	$	385,693	$	653,726	$	1,197,970

Global ECS operating income, as reported	$	75,614	$	54,624	$	249,654	$	221,951
Intangible assets amortization expense		1,061		1,223		3,176		3,687
Global ECS non-GAAP operating income	$	76,675	$	55,847	$	252,830	$	225,638


		13