Investments in Affiliated Companies

9 Months Ended

Sep. 27, 2025

Investments in Affiliated Companies

Investments in Affiliated Companies

Note D – Investments in Affiliated Companies

The company owns a 50% interest in two joint ventures with Marubun Corporation (collectively “Marubun/Arrow”) and a 50% interest in one other joint venture. These investments are accounted for using the equity method.

The following table presents the company’s investment in affiliated companies:

	September 27,		December 31,
(thousands)	2025		2024
Marubun/Arrow	$	43,583	$	43,851
Other		14,553		13,448
	$	58,136	$	57,299

The equity in earnings of affiliated companies consists of the following:

	Quarter Ended				Nine Months Ended
	September 27,		September 28,		September 27,		September 28,
(thousands)	2025		2024		2025		2024
Marubun/Arrow	$	189	$	528	$	254	$	614
Other		274		474		870		1,298
	$	463	$	1,002	$	1,124	$	1,912

Under the terms of various joint venture agreements, the company is required to pay its pro-rata share of the third-party debt of the joint ventures in the event that the joint ventures are unable to meet their obligations. There were no outstanding borrowings under the third-party debt agreements of the joint ventures as of September 27, 2025 and December 31, 2024.

In the second quarter of 2025, the company sold an investment in certain equity securities for $100.0 million and recorded a gain on investments of $99.0 million. This investment was previously accounted for as equity securities without a readily determinable fair value.