Arrow Electronics 2000 Annual Report Download - page 37

A summary of the allocation of the aggregate consideration paid for the aforementioned acquisitions,
excluding amounts paid for increases in majority holdings, to the fair market value of assets acquired
and liabilities assumed is as follows:
(In thousands)
Current assets
Accounts receivable, net of allowance for doubtful
accounts of $55,192 $697,847
Inventories 595,282
Other 32,389 $1,325,518
Property, plant and equipment 101,812
Cost in excess of net assets of companies acquired 348,764
Other assets 25,238
$1,801,332
Current liabilities
Accounts payable $306,831
Accrued expenses 164,883 $ 471,714
Long-term debt 65,522
Other 27,876
$ 565,112
Net consideration paid $1,236,220
Set forth below is the unaudited pro forma combined summary of operations for the years ended
December 31, 2000 and 1999 as though the acquisitions made during 2000 and 1999 occurred on
January 1, 1999:
(In thousands except per share data) 2000 1999
Sales $15,943,194 $12,638,457
Operating income 907,923 402,174
Earnings before income taxes and minority interest 655,392 189,987
Net income 385,418 93,590
Per common share
Basic $3.97 $.98
Diluted 3.89 .97
Average number of common shares outstanding
Basic 97,058 95,898
Diluted 99,184 96,820
(a) Excluding the charge associated with the acquisition and integration of Richey Electronics, Inc. (“ Richey” ) and the electronics
distribution group of Bell Industries, Inc. (“ EDG” ), pro forma operating income, income before income taxes and minority interest,
net income, and earnings per share on a basic and diluted basis would have been $426,700,000, $214,500,000, $110,100,000, $1.15,
and $1.14, respectively.
The unaudited pro forma combined summary of operations does not purport to be indicative of the
results which actually would have been obtained if the acquisitions had been made at the beginning of
1999 or of those results which may be obtained in the future. The company has achieved cost savings
from the acquisition of Richey and EDG and expects to achieve further substantial cost savings from the
combination of its acquisitions. The anticipated cost savings have not been reflected in the unaudited
pro forma combined summary of operations. In addition, the unaudited pro forma combined summary
does not reflect any sales attrition which may result from the combinations.
The unaudited pro forma combined summary of operations includes the effects of the additional interest
expense on debt incurred in connection with the acquisitions as if the debt had been outstanding from
the beginning of the periods presented. In addition, the summary of operations includes amortization of
the cost in excess of net assets of companies acquired in connection with the acquisitions as if they had
been acquired from the beginning of the periods presented.
(a)