Arrow Electronics 2002 Annual Report Download - page 6

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(In฀thousands฀except฀per฀share฀data)
For the year 2002(a)(b) 2001(c) 2000 1999(d) 1998
Sales $7,390,154 $9,487,292 $12,065,283 $8,325,401 $7,235,556
Operating income 167,530 152,670 773,193 326,169 328,156
Income (loss) from
continuing operations 12,087 (75,587) 351,934 115,379 135,024
Income (loss) per share
from continuing operations
Basic .12 (.77) 3.64 1.21 1.42
Diluted .12 (.77) 3.56 1.20 1.39
At year-end
Accounts receivable
and inventories $2,579,833 $2,762,679 $5,419,476 $2,890,365 $2,431,774
Total assets 4,667,605 5,358,984 7,604,541 4,483,255 3,839,871
Long-term debt 1,807,113 2,441,983 3,027,671 1,553,421 1,047,041
Shareholders’ equity 1,235,249 1,766,461 1,913,748 1,550,529 1,487,319
฀
฀ ฀ The฀disposition฀of฀the฀Gates/Arrow฀operations฀in฀May฀2002฀represents฀a฀disposal฀of฀a฀“component฀of฀an฀entity”฀as฀de฀ned฀in฀FASB฀
฀ ฀ Statement฀No.฀144.฀Accordingly,฀฀1998฀through฀2001฀amounts฀have฀been฀restated฀to฀exclude฀Gates/Arrow.฀
(a)฀฀ Income฀from฀continuing฀operations฀and฀income฀per฀share฀from฀continuing฀operations฀exclude฀the฀impact฀of฀the฀company’s฀adoption฀of฀
฀ ฀ FASB฀Statement฀No.฀142,฀฀“Goodwill฀and฀Other฀Intangible฀Assets,”฀on฀January฀1,฀2002.฀Statement฀No.฀142,฀which฀requires฀that฀ratable฀
฀ ฀ amortization฀of฀goodwill฀be฀replaced฀with฀periodic฀฀tests฀for฀goodwill฀impairment,฀resulted฀in฀an฀impairment฀charge฀of฀$603.7฀million฀or฀
฀ ฀ $6.05฀and฀$5.97฀per฀share฀on฀a฀basic฀and฀diluted฀basis,฀respectively.฀
(b)฀฀ ฀Operating฀income฀and฀income฀from฀continuing฀operations฀include฀a฀severance฀charge฀of฀$5.4฀million฀or฀$3.2฀million฀net฀of฀related฀taxes.฀฀ ฀
฀ ฀ Excluding฀this฀charge,฀฀operating฀income,฀income฀from฀continuing฀operations,฀and฀income฀per฀share฀from฀continuing฀operations฀on฀a฀
฀ ฀ basic฀and฀diluted฀basis฀would฀have฀been฀$172.9฀฀million,฀$15.3฀million,฀and฀$.15,฀respectively.
(c)฀฀ ฀Operating฀income฀and฀loss฀from฀continuing฀operations฀include฀restructuring฀costs฀and฀other฀special฀charges฀of฀$227.6฀million฀(of฀which฀฀ ฀
฀ ฀ $174.6฀million฀is฀in฀operating฀income)฀or฀$145.1฀million฀net฀of฀related฀taxes,฀and฀an฀integration฀charge฀associated฀with฀the฀acquisition฀of฀ ฀
฀ ฀ Wyle฀Electronics฀and฀Wyle฀Systems฀of฀$9.4฀฀million฀or฀$5.7฀million฀net฀of฀related฀taxes.฀Excluding฀these฀charges,฀operating฀income,฀income฀฀ ฀
฀ ฀ ฀from฀continuing฀operations,฀and฀income฀per฀share฀from฀continuing฀operations฀on฀a฀basic฀and฀diluted฀basis฀would฀have฀been฀$336.7฀million,฀฀
฀ ฀ $75.2฀million,฀$.76,฀and฀$.75,฀respectively.
(d)฀฀ Operating฀income฀and฀income฀from฀continuing฀operations฀include฀a฀special฀charge฀of฀$24.6฀million฀or฀$16.5฀million฀net฀of฀related฀taxes,฀฀ ฀
฀ ฀ associated฀with฀the฀฀acquisition฀and฀integration฀of฀Richey฀Electronics,฀Inc.฀and฀the฀electronics฀distribution฀group฀of฀Bell฀Industries,฀Inc.฀฀
฀ ฀ Excluding฀this฀charge,฀operating฀income,฀income฀฀from฀continuing฀operations,฀and฀income฀per฀share฀from฀continuing฀operations฀on฀a฀basic฀฀ ฀
฀ ฀ and฀diluted฀basis฀would฀have฀been฀$350.7฀million,฀$131.9฀million,฀฀$1.39,฀and฀$1.37,฀respectively.
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Daniel฀ W.฀ Duval฀ Chairman,฀ Arrow฀ Electronics,฀ Inc.฀ William฀ E.฀ Mitchell฀ President฀ and฀ Chief฀ Executive฀
Of฀cer,฀ Arrow฀ Electronics,฀ Inc.฀ John฀ C.฀ Waddell฀ Vice฀ Chairman,฀ Arrow฀ Electronics,฀ Inc.฀ Carlo฀ Giersch฀
Chairman฀of฀the฀Supervisory฀Board,฀Arrow฀Electronics฀Europe฀and฀Chief฀Executive฀Of฀cer,฀FLC฀GmbH฀John฀
N.฀Hanson฀Chairman,฀President฀and฀ Chief฀Executive฀Of฀cer,฀Joy฀Global฀Inc.฀Stephen฀P.฀Kaufman฀Senior฀
Lecturer,฀Harvard฀Business฀School฀and฀Retired฀Chairman฀and฀Chief฀Executive฀Of฀cer,฀Arrow฀Electronics,฀Inc.฀
Roger฀King฀Retired฀President฀and฀Chief฀Executive฀Of฀cer,฀Sa฀Sa฀International฀Holdings฀Ltd.฀Robert฀E.฀Klatell฀
Executive฀Vice฀President,฀Arrow฀Electronics,฀Inc.฀Karen฀Gordon฀Mills฀Managing฀Director,฀Solera฀Capital฀LLC฀
Barry฀W.฀Perry฀Chairman฀and฀Chief฀Executive฀Of฀cer,฀Engelhard฀Corporation฀Richard฀S.฀Rosenbloom฀David฀
Sarnoff฀Professor฀of฀Business฀Administration,฀Emeritus,฀Harvard฀Business฀School
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Daniel฀ W.฀ Duval฀ Chairman฀ William฀ E.฀ Mitchell฀ President฀ and฀ Chief฀ Executive฀ Of฀cer฀ Robert฀ E.฀ Klatell฀
Executive฀Vice฀President,฀Investor฀Relations฀Peter฀S.฀Brown฀Senior฀Vice฀President฀and฀General฀Counsel฀Betty฀
Jane฀Scheihing฀Senior฀Vice฀President,฀Global฀Operations฀Wayne฀Brody฀Vice฀President,฀Legal฀Affairs฀Germano฀
Fanelli฀Vice฀President฀Harriet฀Green฀Vice฀President,฀Worldwide฀Marketing฀Michael฀J.฀Long฀Vice฀President฀
Brian฀P.฀McNally฀Vice฀President฀Paul฀J.฀Reilly฀Vice฀President฀and฀Chief฀Financial฀Of฀cer฀Jürgen฀Saalwächter฀
Vice฀President฀Jan฀M.฀Salsgiver฀Vice฀President฀Mark฀Settle฀Vice฀President฀and฀Chief฀Information฀Of฀cer฀Albert฀
G.฀Streber฀Vice฀President฀John฀Tam฀Vice฀President฀Vincent฀Vellucci฀Vice฀President฀Ira฀M.฀Birns฀Treasurer
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Arrow฀Americas฀Components
Jan฀M.฀Salsgiver฀President฀Paul฀Buckley฀President,฀Arrow฀Contract฀Manufacturing฀Services฀Distribution฀Group฀
David฀ E.฀ Hoffman฀ Vice฀ President฀ and฀ Managing฀ Director,฀ Latin฀ and฀ South฀ American฀ Components฀ Group฀
Jamie฀P.฀McConaty฀ President,฀ Arrow฀ Components฀ Solutions฀ Group฀ James฀M.฀Rosenberg฀ President,฀ Arrow฀
Alliance฀Group฀Donald฀A.฀Schlidt฀Vice฀President,฀Arrow฀PEMCO฀Supplier฀Services฀Group฀Eric฀Schuck฀President,฀
Arrow/Zeus฀Electronics฀Group฀Albert฀G.฀Streber฀Senior฀Vice฀President,฀Arrow฀Semiconductor฀Supplier฀Services฀
Group฀Vincent฀Vellucci฀President,฀Arrow/Bell฀Components฀Group฀
Arrow฀North฀American฀Computer฀Products
Michael฀J.฀Long฀President฀Joseph฀D.฀Burke฀Vice฀President฀and฀General฀Manager,฀Enterprise฀Computing฀Solutions฀
Group฀Michelle฀M.฀Kuplic฀Vice฀President฀and฀General฀Manager,฀OEM฀Computing฀Solutions฀Group฀Stephen฀
Ramsland฀Vice฀President,฀Supplier฀Services฀Group฀
Arrow฀Electronics฀Europe
Philippe฀Djeddah฀Vice฀President,฀European฀Marketing฀Germano฀Fanelli฀Managing฀Director,฀Southern฀Europe฀
Brian฀P.฀McNally฀Managing฀Director,฀Northen฀Europe฀Alistair฀Oag฀Managing฀Director,฀Alliance฀Europe฀Jürgen฀
Saalwächter฀Managing฀Director,฀Central฀Europe
Arrow฀Electronics฀Asia/Paci฀c฀
John฀Tam฀President฀David฀Chan฀Senior฀Vice฀President,฀OEM฀Sales฀Richard฀Huxley฀Vice฀President,฀Alliance฀Asia
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