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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
63
The following table presents assets/(liabilities) measured at fair value on a recurring basis at December
31, 2010:
Level 1 Level 2 Level 3 Total
Cash equivalents
$
254,296
$
282,900
$
-
$
537,196
Available-for-sale securities 68,746 - - 68,746
Interest rate swaps - 14,082 - 14,082
Foreign exchange contracts - (494) - (494)
$
323,042
$
296,488
$
-
$
619,530
The following table presents assets/(liabilities) measured at fair value on a recurring basis at December
31, 2009:
Level 1 Level 2 Level 3 Total
Cash equivalents
$
451,225
$
292,900
$
-
$
744,125
Available-for-sale securities 56,464 - - 56,464
Interest rate swaps - 11,592 - 11,592
Cross-currency swaps - (54,440) - (54,440)
Foreign exchange contracts - 544 - 544
$
507,689
$
250,596
$
-
$
758,285
Available-For-Sale Securities
The company has a 2.7% equity ownership interest in WPG Holdings Co., Ltd. ("WPG") and an 8.4%
equity ownership interest in Marubun Corporation ("Marubun"), which are accounted for as available-for-
sale securities.
The fair value of the company's available-for-sale securities is as follows at December 31:
2010 2009
Marubun WPG Marubun WPG
Cost basis $ 10,016 $ 10,798 $ 10,016 $ 10,798
Unrealized holding gain 3,726 44,206 4,408 31,242
Fair value $ 13,742 $ 55,004 $ 14,424 $ 42,040
The fair value of these investments is included in "Other assets" in the company's consolidated balance
sheets, and the related net unrealized holding gains and losses are included in "Other" in the
shareholders' equity section in the company's consolidated balance sheets.
During 2008, the company determined that an other-than-temporary decline in the fair value of Marubun
occurred based upon various factors including the financial condition and near-term prospects of
Marubun, the magnitude of the loss compared to the investment's cost, the length of time the investment
was in an unrealized loss position, and publicly available information about the industry and geographic
region in which Marubun operates and, accordingly, recognized a loss of $10,030 ($.08 per share on both
a basic and diluted basis) on the write-down of this investment.