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Employee Benefit Plans
 12 Months Ended
Dec. 31, 2018
Retirement Benefits [Abstract]  
Employee Benefit Plans [Text Block] Employee Benefit Plans

The company maintains an unfunded Arrow supplemental executive retirement plan ("SERP") under which the company will pay supplemental pension benefits to certain employees upon retirement. As of December 31, 2018, there were 10 current and 22 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.

Additionally, as part of the company's acquisition of Wyle in 2000, Wyle provided retirement benefits for certain employees under a defined benefit plan. Benefits under this plan were frozen as of December 31, 2000.

On December 31, 2018, the Wyle defined benefit plan was terminated by the company with estimated plan settlement expected to occur in 2019. The company has made other arrangements with the participants in the plan and is terminating the plan to reduce administrative burdens. Prior to the termination of the plan, the company adopted an amendment to the Wyle defined benefit plan that provided eligible plan participants with the option to receive an early distribution of their pension benefits. The settlement loss is expected to be approximately $25,500. Benefit payments of $60,530 are expected to be paid in 2019.

In 2017, the company entered into a settlement for a portion of its Wyle defined benefit plan. Participants will receive benefits through an insurance annuity contract. The settlement of $42,985 was completed during October 2017 and the company incurred a settlement expense of $16,706, which is recorded in the "Employee benefit plan expense" line item in the company's consolidated statements of operations.

In 2016, the company adopted an amendment to its Wyle defined benefit plan that provided eligible plan participants with the option to receive an early distribution of their pension benefits. Lump sum payments of $26,063 were made during June 2016 and the company incurred a settlement expense of $12,211, which is recorded in the "Employee benefit plan expense" line item in the company's consolidated statements of operations.

The company uses a December 31 measurement date for the Arrow SERP and the Wyle defined benefit plan. Pension information for the years ended December 31 is as follows:
 
Arrow SERP
 
Wyle Defined Benefit Plan
 
2018
 
2017
 
2018
 
2017
Accumulated benefit obligation
$
82,951

 
$
90,368

 
$
59,399

 
$
60,374

Changes in projected benefit obligation:
 
 
 
 
 
 
 
Projected benefit obligation at beginning of year
97,607

 
91,038

 
60,374

 
97,984

Service cost
3,103

 
2,310

 
—

 
—

Interest cost
3,338

 
3,552

 
2,114

 
3,860

Actuarial loss (gain)
(8,874
)
 
4,929

 
(322
)
 
7,595

Benefits paid
(4,596
)
 
(4,222
)
 
(2,767
)
 
(6,080
)
Settlement
—

 
—

 
—

 
(42,985
)
Projected benefit obligation at end of year
90,578

 
97,607

 
59,399

 
60,374

Changes in plan assets:
 
 
 
 
 
 
 
Fair value of plan assets at beginning of year
—

 
—

 
46,663

 
71,470

Actual return on plan assets
—

 
—

 
29

 
10,258

Company contributions
—

 
—

 
11,000

 
14,000

Benefits paid
—

 
—

 
(2,767
)
 
(6,080
)
Settlement
—

 
—

 
—

 
(42,985
)
Fair value of plan assets at end of year
—

 
—

 
54,925

 
46,663

Funded status
$
(90,578
)
 
$
(97,607
)
 
$
(4,474
)
 
$
(13,711
)
Amounts recognized in the company's consolidated balance sheets:
 
 
 
 
 
 
 
Current liabilities
$
(4,532
)
 
$
(4,535
)
 
$
(4,474
)
 
$
—

Noncurrent liabilities
(86,046
)
 
(93,072
)
 
—

 
(13,711
)
Net liabilities at end of year
(90,578
)
 
(97,607
)
 
(4,474
)
 
(13,711
)
Components of net periodic pension cost:
 
 
 
 
 
 
 
Service cost
3,103

 
2,310

 
—

 
—

Interest cost
3,338

 
3,552

 
2,114

 
3,860

Expected return on plan assets
—

 
—

 
(2,648
)
 
(3,449
)
Amortization of net loss
1,531

 
1,216

 
702

 
1,666

Settlement charge
—

 
—

 
—

 
16,706

Net periodic pension cost
$
7,972

 
$
7,078

 
$
168

 
$
18,783

Weighted-average assumptions used to determine benefit obligation:
 
 
 
 
 
 
 
Discount rate
4.20
%
 
3.50
%
 
2.60
%
 
3.60
%
Rate of compensation increase
5.00
%
 
5.00
%
 
N/A

 
N/A

Expected return on plan assets
N/A

 
N/A

 
2.25
%
 
5.25
%
Weighted-average assumptions used to determine net periodic pension cost:
 
 
 
 
 
 
 
Discount rate
3.50
%
 
4.00
%
 
3.60
%
 
4.00
%
Rate of compensation increase
5.00
%
 
5.00
%
 
N/A

 
N/A

Expected return on plan assets
N/A

 
N/A

 
5.25
%
 
4.75
%




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 expected return on plan assets is based on current and expected asset allocations, historical trends, and projected returns on those 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.

Benefit payments are expected to be paid as follows:

 
Arrow SERP
2019
$
4,532

2020
4,481

2021
5,825

2022
6,058

2023
6,405

2024-2026
33,724



The company makes contributions to the Wyle defined benefit plan so that minimum contribution requirements, as determined by government regulations, are met. The company made contributions of $11,000 and $14,000 in 2018 and 2017, respectively. The company is planning on contributing $4,700 to the plan in 2019, however, there is no requirement to make any contributions in 2019. The company has funded $81,962 of the Arrow SERP obligation for the former corporate officers in a rabbi trust comprised primarily of life insurance policies and mutual fund assets.

The fair values of the company's pension plan assets for the Wyle defined benefit plan at December 31, 2018, utilizing the fair value hierarchy discussed in Note 7, are as follows:

 
Level 1
 
Level 2
 
Level 3
 
Total
Fixed Income:
 
 
 
 
 
 
 
Mutual funds
$
54,925

 
$
—

 
$
—

 
$
54,925

Total
$
54,925

 
$
—

 
$
—

 
$
54,925


The fair values of the company's pension plan assets for the Wyle defined benefit plan at December 31, 2017, utilizing the fair value hierarchy discussed in Note 7, are as follows:

 
Level 1
 
Level 2
 
Level 3
 
Total
Equities:
 
 
 
 
 
 
 
U.S. common stocks
$
17,039

 
$
—

 
$
—

 
$
17,039

International mutual funds
6,975

 
—

 
—

 
6,975

Index mutual funds
2,942

 
—

 
—

 
2,942

Fixed Income:
 
 
 
 
 
 
 
Mutual funds
19,707

 
—

 
—

 
19,707

Total
$
46,663

 
$
—

 
$
—

 
$
46,663



As of December 31, 2018, 100% of plan assets are invested in fixed income to facilitate the settlement of the Wyle defined benefit plan termination in 2019.

Comprehensive Income Items

In 2018, 2017, and 2016, actuarial (gains) losses of $(6,339), $3,795, and $740, respectively, were recognized in comprehensive income, net of related taxes, related to the company's defined benefit plans. In 2018, 2017, and 2016, a reclassification adjustment of comprehensive income was recognized, net of related taxes, as a result of being recognized in net periodic pension cost for an actuarial loss of $1,758, $12,070, and $10,625, respectively.

Accumulated other comprehensive income (loss) at December 31, 2018 and 2017 includes unrecognized actuarial losses, primarily related to the Wyle defined benefit plan, net of related taxes, of $26,939 and $28,569, respectively, that have not yet been recognized in net periodic pension cost.

The actuarial loss included in accumulated other comprehensive income (loss), net of related taxes, which is expected to be recognized in net periodic pension cost is $536 as of December 31, 2019.

Defined Contribution Plan

The company has defined contribution plans for eligible employees, which qualify under Section 401(k) of the Internal Revenue Code. The company's contribution to the plans, which are based on a specified percentage of employee contributions, amounted to $20,523, $13,627, and $13,432 in 2018, 2017, and 2016, respectively. The company made discretionary contributions to the company's defined contribution 401(k) plan, which amounted to $7,503, $7,574, and $7,572 in 2018, 2017, and 2016, respectively. Certain international subsidiaries maintain separate defined contribution plans for their employees and made contributions thereunder, which amounted to $18,996, $18,815, and $12,882 in 2018, 2017, and 2016, respectively.