Investments in Affiliated Companies

12 Months Ended

Dec. 31, 2025

Investments in Affiliated Companies

Investments in Affiliated Companies

3. 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:

(thousands)	2025		2024
Marubun/Arrow	$	43,870	$	43,851
Other		15,445		13,448
	$	59,315	$	57,299

The equity (losses) in earnings of affiliated companies consists of the following:

(thousands)	2025		2024		2023
Marubun/Arrow	$	2,013	$	(463)	$	4,452
Other		1,185		1,831		1,955
	$	3,198	$	1,368	$	6,407

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 December 31, 2025 and 2024.

In 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.