Investments in Affiliated Companies

3 Months Ended

Mar. 29, 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:

	March 29,		December 31,
(thousands)	2025		2024
Marubun/Arrow	$	45,000	$	43,851
Other		14,112		13,448
	$	59,112	$	57,299

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

	Quarter Ended
	March 29,		March 30,
(thousands)	2025		2024
Marubun/Arrow	$	908	$	(534)
Other		412		190
	$	1,320	$	(344)

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 March 29, 2025 and December 31, 2024.

Subsequent to the balance sheet date, the company sold investments in certain equity securities for $100.0 million and will record a gain on investments of $99.0 million in the second quarter of 2025. These investments were previously accounted for as equity securities without a readily determinable fair value.