Arrow Electronics 2011 Annual Report Download - page 81

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ARROW ELECTRONICS, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands except per share data)
79
Also included in the proceedings against E.ON AG is a claim for the reimbursement of pre-acquisition tax liabilities of Wyle in
the amount of $8,729 for which E.ON AG is also contractually liable to indemnify the company. E.ON AG has specifically
acknowledged owing the company not less than $6,335 of such amounts, but its promises to make payments of at least that amount
were not kept. The company also believes that the recovery of these amounts is probable.
In connection with the acquisition of Wyle, the company acquired a $4,495 tax receivable due from E.ON AG (as successor to
VEBA) in respect of certain tax payments made by Wyle prior to the effective date of the acquisition, the recovery of which the
company also believes is probable.
The receivable for amounts due from E.ON AG for the previously mentioned tax and environmental matters and related litigation
are included in "Other Assets" on the company's consolidated balance sheets. The company's basis for the conclusion that recovery
of these amounts are probable is based upon its determination that it has appropriate legal rights to seek reimbursement under the
indemnification agreement with E.ON AG, as well as the company's ability to seek reimbursement under the various Wyle insurance
policies. The timing of the collection of these amounts is contingent upon resolution of the court-facilitated mediation or litigation
with E.ON AG, the completion of settlement agreements with certain insurers, and the resolution of litigation currently pending
with certain other insurance carriers. The resolution of these matters could likely take several years.
Other
From time to time, in the normal course of business, the company may become liable with respect to other pending and threatened
litigation, environmental, regulatory, labor, product, and tax matters. While such matters are subject to inherent uncertainties, it
is not currently anticipated that any such matters will materially impact the company's consolidated financial position, liquidity,
or results of operations.
16. Segment and Geographic Information
The company is a global provider of products, services, and solutions to industrial and commercial users of electronic components
and enterprise computing solutions. The company distributes electronic components to original equipment manufacturers and
contract manufacturers through its global components business segment and provides enterprise computing solutions to value-
added resellers through its global ECS business segment. As a result of the company's philosophy of maximizing operating
efficiencies through the centralization of certain functions, selected fixed assets and related depreciation, as well as borrowings,
are not directly attributable to the individual operating segments and are included in the corporate business segment.
Sales and operating income (loss), by segment, for the years ended December 31 are as follows:
Sales:
Global components
Global ECS
Consolidated
Operating income (loss):
Global components
Global ECS
Corporate (a)
Consolidated
2011
$ 14,853,823
6,536,441
$ 21,390,264
$ 823,774
262,893
(177,824)
$ 908,843
2010
$ 13,168,381
5,576,295
$ 18,744,676
$ 715,333
191,489
(156,047)
$ 750,775
2009
$ 9,751,305
4,932,796
$ 14,684,101
$ 318,866
167,748
(213,827)
$ 272,787
(a) Includes restructuring, integration, and other charges of $37,811, $33,494, and $105,514 in 2011, 2010, and 2009,
respectively. Also included in 2011 is a charge of $5,875 related to the settlement of a legal matter.