Arrow Electronics 2010 Annual Report Download - page 35

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During 2008, the net amount of cash provided by the company's operating activities was $619.8 million, the
net amount of cash used for investing activities was $492.7 million, and the net amount of cash used for
financing activities was $111.1 million. The effect of exchange rate changes on cash was a decrease of
$12.5 million.
Cash Flows from Operating Activities
The company maintains a significant investment in accounts receivable and inventories. As a percentage of
total assets, accounts receivable and inventories were approximately 62.6% at December 31, 2010 and
were approximately 58.4% at December 31, 2009.
The net amount of cash provided by the company's operating activities during 2010 was $220.8 million and
was primarily due to earnings from operations, adjusted for non-cash items, and an increase in accounts
payable and accrued expenses offset, in part, by an increase in accounts receivable and inventories.
The net amount of cash provided by the company's operating activities during 2009 was $849.9 million and
was primarily due to earnings from operations, adjusted for non-cash items, a reduction in inventories, and
an increase in accounts payable. This was offset, in part, by a decrease in accrued expenses.
The net amount of cash provided by the company's operating activities during 2008 was $619.8 million and
was primarily due to earnings from operations, adjusted for non-cash items, and a reduction in accounts
receivable and inventories offset, in part, by a decrease in accounts payable.
Working capital, as a percentage of sales, was 12.6%, 12.1%, and 13.4% in 2010, 2009, and 2008,
respectively.
Cash Flows from Investing Activities
The net amount of cash used for investing activities during 2010 was $682.4 million, primarily reflecting
$587.1 million of cash consideration paid for acquired businesses and $112.3 million for capital
expenditures, offset, in part, by proceeds from the sale of properties of $17.0 million. Included in capital
expenditures for 2010 is $58.0 million related to the company's global enterprise resource planning
("ERP") initiative.
During 2010, the company acquired Verical, an e-commerce business geared towards meeting the end-
of-life components and parts shortage needs of customers; Converge, a leading provider of reverse
logistics services; Sphinx, a United Kingdom-based value-added distributor of security and networking
products; Transim, a leading service provider of online component design and engineering solutions for
technology manufacturers; Shared, a leading North American unified communications and managed
services provider; ETG, a leading solid-state lighting distributor and value-added service provider; Diasa,
a leading European value-added distributor of servers, storage, software, and networking products in
Spain and Portugal; and Intechra, which provides fully customized information technology asset
disposition services to many Fortune 1000 customers throughout the world, for aggregate cash
consideration of $584.0 million. In addition the company made a payment of $3.1 million to increase its
ownership interest in a majority-owned subsidiary.
The net amount of cash used for investing activities during 2009 was $290.7 million, primarily reflecting
$170.1 million of cash consideration paid for acquired businesses and $121.5 million for capital
expenditures, offset, in part, by proceeds from the sale of properties of $1.2 million. Included in the
capital expenditures is $82.3 million related to the company's global ERP initiative.
During 2009, the company acquired Petsche, a leading provider of interconnect products, including
specialty wire, cable, and harness management solutions, to the aerospace and defense markets for cash
consideration of $170.1 million.
The net amount of cash used for investing activities during 2008 was $492.7 million, primarily reflecting