Investments in Affiliated Companies

6 Months Ended

Jul. 04, 2026

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:

	July 4,		December 31,
(thousands)	2026		2025
Marubun/Arrow	$	46,266	$	43,870
Other		15,883		15,445
	$	62,149	$	59,315

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

	Quarter Ended				Six Months Ended
	July 4,		June 28,		July 4,		June 28,
(thousands)	2026		2025		2026		2025
Marubun/Arrow	$	1,652	$	(843)	$	2,435	$	65
Other		413		184		526		596
	$	2,065	$	(659)	$	2,961	$	661

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 July 4, 2026 and December 31, 2025.

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.