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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
58
The cost in excess of net assets acquired related to the LOGIX acquisition was recorded in the
company's global ECS business segment. The intangible assets related to the LOGIX acquisition are not
expected to be deductible for income tax purposes.
During 2008, the company also acquired Hynetic Electronics and Shreyanics Electronics, a components
distribution business in India; ACI Electronics LLC, a distributor of electronic components used in defense
and aerospace applications; Achieva Ltd., a value-added distributor of semiconductors and electro-
mechanical devices; Excel Tech, Inc., the sole Broadcom distributor in Korea; and Eteq Components Pte
Ltd, a Broadcom-based components distribution business in the ASEAN region and China. The impact of
these acquisitions was not material to the company's consolidated financial position or results of
operations. Annual sales for these acquisitions were approximately $320,000.
Other
Amortization expense related to identifiable intangible assets for the years ended December 31, 2010,
2009, and 2008 was $21,132, $15,349, and $15,324, respectively. Amortization expense for each of the
years 2011 through 2015 are estimated to be approximately $26,190, $22,369, $19,656, $19,656, and
$19,551, respectively.
During 2008, the company paid $13,558 that was capitalized as cost in excess of net assets of
companies acquired, partially offset by the carrying value of the related noncontrolling interest, to increase
its ownership interest in majority-owned subsidiaries.
Effective January 1, 2009, the company adopted FASB ASC Topic 810-10-65. ASC Topic 810-10-65
requires, among other things, that changes in a parent's ownership interest be treated as equity
transactions if control is maintained. The accounting prescribed by ASC Topic 810-10-65 was required to
be adopted prospectively for all changes in ownership interests entered into after January 1, 2009. The
adoption of the provisions of ASC Topic 810-10-65 did not materially impact the company's consolidated
financial position or results of operations.
During 2010, the company made a payment of $3,060 to increase its ownership in a majority-owned
subsidiary. The payment was recorded as a reduction to capital in excess of par value, partially offset by
the carrying value of the noncontrolling interest.
3. Cost in Excess of Net Assets of Companies Acquired
Cost in excess of net assets of companies acquired allocated to the company's business segments is as
follows:
Global
Components Global ECS Total
December 31, 2008 $ 453,478 $ 452,370 $ 905,848
Acquisitions 19,048 - 19,048
Acquisition-related adjustments 601 (8,171 ) (7,570)
Other (primarily foreign currency translation) 294 8,676 8,970
December 31, 2009 473,421 452,875 926,296
Acquisitions 197,465 221,781 419,246
Other (primarily foreign currency translation) (15) (9,176 ) (9,191)
December 31, 2010 $ 670,871 $ 665,480 $ 1,336,351