Employee Benefit Plans

12 Months Ended

Dec. 31, 2011

Compensation and Retirement Disclosure [Abstract]

Pension and Other Postretirement Benefits Disclosure [Text Block]

Employee Benefit Plans

Supplemental Executive Retirement Plans ("SERP")

The company maintains an unfunded Arrow SERP under which the company will pay supplemental pension benefits to certain employees upon retirement. There are 9 current and 16 former corporate officers participating in this plan. The Board determines those employees who are eligible to participate in the Arrow SERP.

The Arrow SERP, as amended, provides for the pension benefits to be based on a percentage of average final compensation, based on years of participation in the Arrow SERP. The Arrow SERP permits early retirement, with payments at a reduced rate, based on age and years of service subject to a minimum retirement age of 55. Participants whose accrued rights under the Arrow SERP, prior to the 2002 amendment, which were adversely affected by the amendment, will continue to be entitled to such greater rights.

The company acquired Wyle Electronics ("Wyle") in 2000. Wyle also sponsored an unfunded SERP for certain of its executives. Benefit accruals for the Wyle SERP were frozen as of December 31, 2000. There are 19 participants in this plan.

The company uses a December 31 measurement date for the Arrow SERP and the Wyle SERP. Pension information for the years ended December 31 is as follows:

	2011			2010
Accumulated benefit obligation	$	62,891		$	53,980
Changes in projected benefit obligation:
Projected benefit obligation at beginning of year	$	61,559		$	57,052
Service cost (Arrow SERP)	1,525			1,642
Interest cost	3,308			3,202
Actuarial loss	5,602			2,961
Benefits paid	(3,521		)	(3,298		)
Projected benefit obligation at end of year	$	68,473		$	61,559
Funded status	$	(68,473	)	$	(61,559	)
Components of net periodic pension cost:
Service cost (Arrow SERP)	$	1,525		$	1,642
Interest cost	3,308			3,202
Amortization of net loss	787			744
Amortization of prior service cost (Arrow SERP)	41			80
Amortization of transition obligation (Arrow SERP)	—			29
Net periodic pension cost	$	5,661		$	5,697
Weighted average assumptions used to determine benefit obligation:
Discount rate	4.75		%	5.50		%
Rate of compensation increase (Arrow SERP)	5.00		%	5.00		%
Weighted average assumptions used to determine net periodic pension cost:
Discount rate	5.50		%	5.50		%
Rate of compensation increase (Arrow SERP)	5.00		%	5.00		%

The amounts reported for net periodic pension cost and the respective benefit obligation amounts are dependent upon the actuarial assumptions used. The company reviews historical trends, future expectations, current market conditions, and external data to determine the assumptions. The discount rate represents the market rate for a high-quality corporate bond. The rate of compensation increase is determined by the company, based upon its long-term plans for such increases. The actuarial assumptions used to determine the net periodic pension cost are based upon the prior year's assumptions used to determine the benefit obligation.

Benefit payments are expected to be paid as follows:

2012	$	3,869
2013	4,089
2014	4,050
2015	4,004
2016	4,206
2017-2021	25,209

Wyle Defined Benefit Plan

Wyle provided retirement benefits for certain employees under a defined benefit plan. Benefits under this plan were frozen as of December 31, 2000 and former participants were permitted to participate in the company's employee stock ownership and 401(k) plans. The company uses a December 31 measurement date for this plan. Pension information for the years ended December 31 is as follows:

	2011			2010
Accumulated benefit obligation	$	118,191		$	108,335
Changes in projected benefit obligation:
Projected benefit obligation at beginning of year	$	108,335		$	108,124
Interest cost	5,767			5,770
Actuarial (gain)/loss	9,630			(162		)
Benefits paid	(5,541		)	(5,397		)
Projected benefit obligation at end of year	$	118,191		$	108,335
Changes in plan assets:
Fair value of plan assets at beginning of year	$	80,362		$	75,408
Actual return on plan assets	(2,956		)	9,491
Company contributions	9,854			860
Benefits paid	(5,541		)	(5,397		)
Fair value of plan assets at end of year	$	81,719		$	80,362
Funded status	$	(36,472	)	$	(27,973	)
Components of net periodic pension cost:
Interest cost	$	5,767		$	5,770
Expected return on plan assets	(6,524		)	(5,992		)
Amortization of net loss	1,041			3,114
Net periodic pension cost	$	284		$	2,892
Weighted average assumptions used to determine benefit obligation:
Discount rate	4.75		%	5.50		%
Expected return on plan assets	7.50		%	8.00		%
Weighted average assumptions used to determine net periodic pension cost:
Discount rate	5.50		%	5.50		%
Expected return on plan assets	8.00		%	8.25		%

The amounts reported for net periodic pension cost and the respective benefit obligation amounts are dependent upon the actuarial assumptions used. The company reviews historical trends, future expectations, current market conditions, and external data to determine the assumptions. The discount rate represents the market rate for a high-quality corporate bond. The expected return on plan assets is based on current and expected asset allocations, historical trends, and expected returns on plan assets. The actuarial assumptions used to determine the net periodic pension cost are based upon the prior year's assumptions used to determine the benefit obligation.

The company makes contributions to the plan so that minimum contribution requirements, as determined by government regulations, are met. The company made contributions of $9,854 and $860 in 2011 and 2010, respectively, and expects to make estimated contributions of $4,379 in 2012.

Benefit payments are expected to be paid as follows:

2012	$	6,336
2013	6,429
2014	6,543
2015	6,627
2016	6,819
2017-2021	35,547

The fair values of the company's pension plan assets at December 31, 2011, utilizing the fair value hierarchy discussed in Note 7 are as follows:

	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Common collective trusts	$	—	$	1,058	$	—	$	1,058
Equities:
U.S. common stocks	28,102		—		—		28,102
International mutual funds	10,665		—		—		10,665
Index mutual funds	10,436		—		—		10,436
Fixed Income:
Mutual funds	24,181		—		—		24,181
Insurance contracts	—		7,277		—		7,277
Total	$	73,384	$	8,335	$	—	$	81,719

The fair values of the company's pension plan assets at December 31, 2010, utilizing the fair value hierarchy discussed in Note 7 are as follows:

	Level 1		Level 2		Level 3		Total
Cash Equivalents:
Common collective trusts	$	—	$	843	$	—	$	843
Equities:
U.S. common stocks	29,802		—		—		29,802
International mutual funds	12,173		—		—		12,173
Index mutual funds	12,410		—		—		12,410
Fixed Income:
Mutual funds	23,214		—		—		23,214
Insurance contracts	—		1,920		—		1,920
Total	$	77,599	$	2,763	$	—	$	80,362

The investment portfolio contains a diversified blend of common stocks, bonds, cash equivalents, and other investments, which may reflect varying rates of return. The investments are further diversified within each asset classification. The portfolio diversification provides protection against a single security or class of securities having a disproportionate impact on aggregate performance. The long-term target allocations for plan assets are 65% in equities and 35% in fixed income, although the actual plan asset allocations may be within a range around these targets. The actual asset allocations are reviewed and rebalanced on a periodic basis to maintain the target allocations.

Comprehensive Income Items

In 2011, 2010, and 2009, actuarial (gains)/losses of $15,228, $(368), and $(1,038), respectively, were recognized in comprehensive income, net of related taxes, related to the company's defined benefit plans. In 2011, 2010, and 2009, the following amounts were recognized as a reclassification adjustment of comprehensive income, net of related taxes, as a result of being recognized in net periodic pension cost: transition obligation of $0, $18, and $251, respectively, prior service cost of $19, $43, and $186, respectively, and an actuarial loss of $1,103, $2,369, and $2,019, respectively.

Included in accumulated other comprehensive at December 31, 2011 and 2010 are the following amounts, net of related taxes, that have not yet been recognized in net periodic pension cost: unrecognized prior service costs of $44 and $63, respectively, and unrecognized actuarial losses of $40,243 and $26,332, respectively.

The prior service cost and actuarial loss included in accumulated other comprehensive loss, net of related taxes, which are expected to be recognized in net periodic pension cost for the year ended December 31, 2012 are $19 and $2,180, respectively.

Defined Contribution Plan

The company has a defined contribution plan for eligible employees, which qualifies under Section 401(k) of the Internal Revenue Code. The company's contribution to the plan, which is based on a specified percentage of employee contributions, amounted to $10,063, $8,870, and $7,821 in 2011, 2010, and 2009, respectively. Certain international subsidiaries maintain separate defined contribution plans for their employees and made contributions thereunder, which amounted to $25,265, $20,714, and $17,900 in 2011, 2010, and 2009, respectively.