EX-99.1 2 q12020pressreleaseexhi.htm EXHIBIT 99.1

ARROW ELECTRONICS, INC. 9201 E. DRY CREEK ROAD CENTENNIAL, CO 80112 303-824-4000 |  | NEWS

Exhibit 99.1
Arrow Electronics Reports First-Quarter 2020 Results
-- Enabling Secure Work-from-Home Environments --
-- Dedicating Resources to Medical Equipment Production --
CENTENNIAL, Colo.--(BUSINESS WIRE)-Apr. 30, 2020--Arrow Electronics, Inc. (NYSE:ARW) today reported first-quarter 2020 sales of $6.38 billion, a decrease of 11 percent from sales of $7.16 billion in the first quarter of 2019. First-quarter sales, as adjusted, decreased 9 percent year over year. First-quarter net income of $50 million, or $.61 per share on a diluted basis, compared with net income of $141 million, or $1.63 per share on a diluted basis, in the first quarter of 2019. Excluding certain items 1, net income would have been $79 million, or $0.97 per share on a diluted basis, in the first quarter of 2020, compared with net income of $164 million, or $1.90 per share on a diluted basis, in the first quarter of 2019. Net income and diluted earnings per share in the first quarter of 2020 included charges related to foreign tax and other loss contingencies totaling approximately $33 million and $.41, respectively. In the first quarter of 2020, changes in foreign currencies negatively impacted growth by approximately $42 million or 1 percent on sales and $.02 or 1 percent on earnings per share on a diluted basis compared to the first quarter of 2019.
“Arrow maintains a firm commitment to our design, engineering, marketing and supply chain services, which play an essential role for our stakeholders as they navigate the unprecedented challenges associated with the COVID-19 pandemic,” said Michael J. Long, chairman, president, and chief executive officer. “I am grateful to our dedicated teams in all regions who have been working with urgency to ensure our customers and suppliers are well equipped to continue their business operations in the current environment. In addition to enabling secure work-from-home environments, Arrow is supporting the medical community’s life-saving efforts by providing critical electronic components and data management hardware and software.”
Global components first-quarter sales of $4.55 billion decreased 12 percent year over year. Sales, as adjusted, decreased 10 percent year over year. Asia-Pacific components sales decreased 5 percent year over year. Europe components sales decreased 13 percent year over year. Sales in the region, as adjusted, decreased 10 percent year over year. Americas components sales decreased 19 percent year over year. Sales in the region, as adjusted, decreased 16 percent year over year. Global components first-quarter operating income was $165 million. First-quarter operating income, excluding amortization of intangibles expense, as adjusted, was $171 million.
“Despite production stoppages, border closures and stay-at-home orders, our global components team demonstrated unwavering focus on our customers’ needs in the production of vital electronic equipment, delivering first-quarter financial performance consistent with pre-pandemic expectations,” continued Mr. Long. “We view global components financial results as a testament to the efforts of our team and our long-held belief that doing good is also good for business.”
Global enterprise computing solutions first-quarter sales of $1.83 billion decreased 7 percent year over year. Sales, as adjusted, decreased 6 percent year over year. Europe enterprise computing solutions sales decreased 8 percent year over year. Sales in the region, as adjusted, decreased 5 percent year over year. Americas enterprise computing solutions sales decreased 6 percent year over year. Global enterprise computing solutions first-quarter operating income was $42 million. First-quarter operating income, excluding amortization of intangibles expense, as adjusted, was $45 million. Operating income in the first quarter of 2020 included charges related to foreign tax and other loss contingencies of approximately $30 million.
“In connection with our shift from provisioning complex hybrid cloud solutions to rapidly enabling the massive migration to an at-home workforce, Arrow reported global enterprise computing solutions sales near the high-end of our prior expectations,” said Mr. Long.
“Looking ahead to the second half of the year, we anticipate a cautious, measured return to normal business activity, and Arrow is well positioned to continue benefiting from the robust cash flow our business generates. First-quarter cash provided by operating activities was $467 million thanks to our disciplined working capital management, including our new EMEA asset securitization program, and efficiencies from our previously announced cost optimization program,” said Chris Stansbury, senior vice president and chief financial officer. “Our liquidity position is the best in our company’s history, with more than $3.1 billion of undrawn committed borrowing capacity in addition to cash on hand.”
1 A reconciliation of non-GAAP adjusted financial measures, including sales, gross profit, operating income, net income attributable to shareholders, and net income per share, as adjusted, to GAAP financial measures is presented in the reconciliation tables included herein.

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SECOND-QUARTER 2020 OUTLOOK

• | Consolidated sales of $6.075 billion to $6.675 billion, with global components sales of $4.4 billion to $4.7 billion, and global enterprise computing solutions sales of $1.675 billion to $1.975 billion

• | Earnings per share on a diluted basis of $.98 to $1.14, and earnings per share on a diluted basis, excluding certain items 1 of $1.38 to $1.54 per share

• | Average tax rate of approximately 24 percent compared to the long-term range of 23 to 25 percent

• | Average diluted shares outstanding of 81 million

• | Interest expense of approximately $40 million

• | Expect average USD-to-Euro exchange rate of $1.10 to €1

Please refer to the CFO commentary, which can be found at investor.arrow.com, as a supplement to the company’s earnings release.
Arrow Electronics guides innovation forward for over 175,000 leading technology manufacturers and service providers. With 2019 sales of $29 billion, Arrow develops technology solutions that improve business and daily life. Learn more at fiveyearsout.com.
Information Relating to Forward-Looking Statements
This press release includes forward-looking statements that are subject to numerous assumptions, risks, and uncertainties, which could cause actual results or facts to differ materially from such statements for a variety of reasons, including, but not limited to: potential adverse effects of the ongoing global coronavirus pandemic, including actions taken to contain or treat the coronavirus, industry conditions, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and global ECS markets, changes in relationships with key suppliers, increased profit margin pressure, changes in legal and regulatory matters, non-compliance with certain regulations, such as export, anti-trust, and anti-corruption laws, foreign tax and other loss contingencies, and the company's ability to generate cash flow. For a further discussion of these and other factors that could cause the company’s future results to differ materially from any forward-looking statements, see the section entitled “Risk Factors” in the company's Annual Report on Form 10-K for the year ended December 31, 2019. Forward-looking statements are those statements which are not statements of historical fact. These forward-looking statements can be identified by forward-looking words such as “expects,” “anticipates,” “intends,” “plans,” “may,” “will,” “believes,” “seeks,” “estimates,” and similar expressions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The company undertakes no obligation to update publicly or revise any of the forward-looking statements.
Certain Non-GAAP Financial Information
In addition to disclosing financial results that are determined in accordance with accounting principles generally accepted in the United States (“GAAP”), the company also provides certain non-GAAP financial information relating to sales, operating income, net income attributable to shareholders, and net income per basic and diluted share.
The company provides sales, gross profit, and operating expense on a non-GAAP basis adjusted for the impact of changes in foreign currencies (referred to as changes in foreign currencies) by re-translating prior period results at current period foreign exchange rates, the impact of dispositions by adjusting the company’s operating results for businesses disposed, as if the dispositions had occurred at the beginning of the earliest period presented (referred to as dispositions), the impact of the company’s personal computer and mobility asset disposition business (referred to as wind down), the impact of inventory write-downs related to the digital business (referred to as "digital inventory write-downs and recoveries"), and the impact of the notes receivable reserves and inventory write-downs related to the AFS business (referred to as “AFS notes receivable reserves and recoveries” and “AFS inventory write-downs and recoveries” respectively). Operating income is adjusted to exclude identifiable intangible asset amortization, restructuring, integration, and other charges, and loss on disposition of businesses, net, AFS notes receivable reserves and credits and inventory write-downs and recoveries, digital inventory write-downs and recoveries, and the impact of wind down. Net income attributable to shareholders, and net income per basic and diluted share are adjusted to exclude identifiable intangible asset amortization, restructuring, integration, and other charges, and loss on disposition of businesses, net, AFS notes receivable reserves and credits and inventory write-downs and recoveries, digital inventory write-downs and recoveries, net gains and losses on investments, the impact of wind down, and certain tax adjustments. A reconciliation of the company’s non-GAAP financial information to GAAP is set forth in the tables below.
The company believes that such non-GAAP financial information is useful to investors to assist in assessing and understanding the company’s operating performance and underlying trends in the company’s business because management considers these items referred to above to be outside the company’s core operating results. This non-GAAP financial information is among the primary indicators management uses as a basis for evaluating the company’s financial and operating performance. In addition, the company’s Board of Directors may use this non-GAAP financial information in evaluating management performance and setting management compensation.
The presentation of this additional non-GAAP financial information is not meant to be considered in isolation or as a substitute for, or alternative to, sales, operating income, net income and net income per basic and diluted share determined in accordance with GAAP. Analysis of results and outlook on a non-GAAP basis should be used as a complement to, and in conjunction with, data presented in accordance with GAAP.

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ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands except per share data)
(Unaudited)
|  | Quarter Ended
|  | March 28, 2020 |  | March 30, 2019
Sales |  | $ | 6,381,417 |  |  | $ | 7,155,991 |
Cost of sales |  | 5,653,026 |  |  | 6,294,303 |
Gross profit |  | 728,391 |  |  | 861,688 |
Operating expenses: |  |  |  |
Selling, general, and administrative expenses |  | 533,839 |  |  | 556,076 |
Depreciation and amortization |  | 47,110 |  |  | 47,526 |
Loss on disposition of businesses, net |  | — |  |  | 866 |
Restructuring, integration, and other charges |  | 9,138 |  |  | 11,660 |
|  | 590,087 |  |  | 616,128 |
Operating income |  | 138,304 |  |  | 245,560 |
Equity in earnings (losses) of affiliated companies |  | 530 |  |  | (1,467 | )
Gain (loss) on investments, net |  | (16,810 | ) |  | 5,348 |
Employee benefit plan expense |  | (1,109 | ) |  | (1,139 | )
Interest and other financing expense, net |  | (43,268 | ) |  | (51,981 | )
Income before income taxes |  | 77,647 |  |  | 196,321 |
Provision for income taxes |  | 27,892 |  |  | 53,907 |
Consolidated net income |  | 49,755 |  |  | 142,414 |
Noncontrolling interests |  | 252 |  |  | 1,679 |
Net income attributable to shareholders |  | $ | 49,503 |  |  | $ | 140,735 |
Net income per share: |  |  |  |
Basic |  | $ | 0.62 |  |  | $ | 1.65 |
Diluted |  | $ | 0.61 |  |  | $ | 1.63 |
Weighted-average shares outstanding: |  |  |  |
Basic |  | 80,407 |  |  | 85,400 |
Diluted |  | 81,108 |  |  | 86,319 |

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ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
(Unaudited)
| March 28, 2020 |  | December 31, 2019
ASSETS |  |  |
Current assets: |  |  |
Cash and cash equivalents | $ | 200,998 |  |  | $ | 300,103 |
Accounts receivable, net | 7,817,019 |  |  | 8,482,687 |
Inventories | 3,334,298 |  |  | 3,477,120 |
Other current assets | 235,743 |  |  | 266,249 |
Total current assets | 11,588,058 |  |  | 12,526,159 |
Property, plant, and equipment, at cost: |  |  |  |  |
Land | 7,728 |  |  | 7,793 |
Buildings and improvements | 185,542 |  |  | 173,370 |
Machinery and equipment | 1,492,802 |  |  | 1,481,525 |
| 1,686,072 |  |  | 1,662,688 |
Less: Accumulated depreciation and amortization | (882,650 | ) |  | (859,578 | )
Property, plant, and equipment, net | 803,422 |  |  | 803,110 |
Investments in affiliated companies | 80,337 |  |  | 86,942 |
Intangible assets, net | 260,955 |  |  | 271,903 |
Goodwill | 2,044,898 |  |  | 2,061,322 |
Other assets | 613,790 |  |  | 651,360 |
Total assets | $ | 15,391,460 |  |  | $ | 16,400,796 |
LIABILITIES AND EQUITY |  |  |  |  |
Current liabilities: |  |  |  |  |
Accounts payable | $ | 6,662,333 |  |  | $ | 7,046,221 |
Accrued expenses | 873,668 |  |  | 880,507 |
Short-term borrowings, including current portion of long-term debt | 377,177 |  |  | 331,431 |
Total current liabilities | 7,913,178 |  |  | 8,258,159 |
Long-term debt | 2,222,789 |  |  | 2,640,129 |
Other liabilities | 605,884 |  |  | 636,115 |
Commitments and contingencies |  |  |  |  |
Equity: |  |  |  |  |
Shareholders’ equity: |  |  |  |  |
Common stock, par value $1: |  |  |  |  |
Authorized - 160,000 shares in both 2020 and 2019, respectively |  |  |  |  |
Issued - 125,424 shares in both 2020 and 2019, respectively | 125,424 |  |  | 125,424 |
Capital in excess of par value | 1,145,744 |  |  | 1,150,006 |
Treasury stock (46,756 and 44,804 shares in 2020 and 2019, respectively), at cost | (2,471,375 | ) |  | (2,332,548 | )
Retained earnings | 6,144,816 |  |  | 6,131,248 |
Accumulated other comprehensive loss | (349,484 | ) |  | (262,211 | )
Total shareholders’ equity | 4,595,125 |  |  | 4,811,919 |
Noncontrolling interests | 54,484 |  |  | 54,474 |
Total equity | 4,649,609 |  |  | 4,866,393 |
Total liabilities and equity | $ | 15,391,460 |  |  | $ | 16,400,796 |

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ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
| Quarter Ended
| March 28, 2020 |  | March 30, 2019
Cash flows from operating activities: |  |  |
Consolidated net income | $ | 49,755 |  |  | $ | 142,414 |
Adjustments to reconcile consolidated net income to net cash provided by (used for) operations: |  |  |
Depreciation and amortization | 47,110 |  |  | 47,526 |
Amortization of stock-based compensation | 13,920 |  |  | 19,090 |
Equity in (earnings) losses of affiliated companies | (530 | ) |  | 1,467 |
Deferred income taxes | 32,613 |  |  | 6,968 |
(Gain) loss on investments, net | 16,810 |  |  | (5,348 | )
Other | (205 | ) |  | 5,575 |
Change in assets and liabilities, net of effects of acquired and disposed businesses: |  |  |
Accounts receivable | 558,605 |  |  | 949,989 |
Inventories | 133,392 |  |  | 134,402 |
Accounts payable | (343,051 | ) |  | (1,540,008 | )
Accrued expenses | (31,326 | ) |  | (50,292 | )
Other assets and liabilities | (10,228 | ) |  | (40,782 | )
Net cash provided by (used for) operating activities | 466,865 |  |  | (328,999 | )
Cash flows from investing activities: |  |  |  |  |
Acquisition of property, plant, and equipment | (27,971 | ) |  | (33,815 | )
Other | (5,466 | ) |  | 2,940 |
Net cash used for investing activities | (33,437 | ) |  | (30,875 | )
Cash flows from financing activities: |  |  |  |  |
Change in short-term and other borrowings | (84,354 | ) |  | (107,244 | )
Proceeds from (repayments of) long-term bank borrowings, net | (288,577 | ) |  | 335,023 |
Proceeds from exercise of stock options | 1,980 |  |  | 6,931 |
Repurchases of common stock | (158,989 | ) |  | (53,925 | )
Net cash provided by (used for) financing activities | (529,940 | ) |  | 180,785 |
Effect of exchange rate changes on cash | (2,593 | ) |  | 21,661 |
Net decrease in cash and cash equivalents | (99,105 | ) |  | (157,428 | )
Cash and cash equivalents at beginning of period | 300,103 |  |  | 509,327 |
Cash and cash equivalents at end of period | $ | 200,998 |  |  | $ | 351,899 |

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ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
| Quarter Ended |  |
| March 28, 2020 |  | March 30, 2019 |  | % Change
Consolidated sales, as reported | $ | 6,381,417 |  |  | $ | 7,155,991 |  |  | (10.8 | )%
Impact of changes in foreign currencies | — |  |  | (41,571 | ) |  |
Impact of dispositions and wind down | — |  |  | (94,195 | ) |  |
Consolidated sales, as adjusted | $ | 6,381,417 |  |  | $ | 7,020,225 |  |  | (9.1 | )%
Global components sales, as reported | $ | 4,550,601 |  |  | $ | 5,191,927 |  |  | (12.4 | )%
Impact of changes in foreign currencies | — |  |  | (29,718 | ) |  |
Impact of wind down | — |  |  | (83,054 | ) |  |
Global components sales, as adjusted | $ | 4,550,601 |  |  | $ | 5,079,155 |  |  | (10.4 | )%
Americas Components sales, as reported | $ | 1,552,798 |  |  | $ | 1,907,029 |  |  | (18.6 | )%
Impact of changes in foreign currencies | — |  |  | (840 | ) |  |
Impact of wind down | — |  |  | (62,866 | ) |  |
Americas Components sales, as adjusted | $ | 1,552,798 |  |  | $ | 1,843,323 |  |  | (15.8 | )%
Europe components sales, as reported | $ | 1,309,990 |  |  | $ | 1,503,366 |  |  | (12.9 | )%
Impact of changes in foreign currencies | — |  |  | (23,951 | ) |  |
Impact of wind down | — |  |  | (20,188 | ) |  |
Europe components sales, as adjusted | $ | 1,309,990 |  |  | $ | 1,459,227 |  |  | (10.2 | )%
Asia components sales, as reported | $ | 1,687,813 |  |  | $ | 1,781,532 |  |  | (5.3 | )%
Impact of changes in foreign currencies | — |  |  | (4,927 | ) |  |
Asia components sales, as adjusted | $ | 1,687,813 |  |  | $ | 1,776,605 |  |  | (5.0 | )%
Global ECS sales, as reported | $ | 1,830,816 |  |  | $ | 1,964,064 |  |  | (6.8 | )%
Impact of changes in foreign currencies | — |  |  | (11,853 | ) |  |
Impact of dispositions | — |  |  | (11,141 | ) |  |
Global ECS sales, as adjusted | $ | 1,830,816 |  |  | $ | 1,941,070 |  |  | (5.7 | )%
Europe ECS sales, as reported | $ | 702,128 |  |  | $ | 763,157 |  |  | (8.0 | )%
Impact of changes in foreign currencies | — |  |  | (11,919 | ) |  |
Impact of dispositions | — |  |  | (11,141 | ) |  |
Europe ECS sales, as adjusted | $ | 702,128 |  |  | $ | 740,097 |  |  | (5.1 | )%
Americas ECS sales, as reported | $ | 1,128,688 |  |  | $ | 1,200,907 |  |  | (6.0 | )%
Impact of changes in foreign currencies | — |  |  | 66 |  |  |
Americas ECS sales, as adjusted | $ | 1,128,688 |  |  | $ | 1,200,973 |  |  | (6.0 | )%

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ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
Three months ended March 28, 2020
| Reported GAAP measure | Intangible amortization expense | Restructuring & Integration charges | AFS Write Downs | Non-recurring tax items | Impact of Wind Down | Other(1) | Non-GAAP measure
Sales | $ | 6,381,417 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | 6,381,417 |
Gross Profit | 728,391 |  | — |  | — |  | — |  | — |  | — |  | — |  | 728,391 |
Operating income | 138,304 |  | 9,955 |  | 9,138 |  | (920 | ) | — |  | — |  | — |  | 156,477 |
Income before income taxes | 77,647 |  | 9,955 |  | 9,138 |  | (920 | ) | — |  | — |  | 16,810 |  | 112,630 |
Provision for income taxes | 27,892 |  | 2,564 |  | 2,571 |  | (222 | ) | (3,615 | ) | — |  | 4,057 |  | 33,247 |
Consolidated net income | 49,755 |  | 7,391 |  | 6,567 |  | (698 | ) | 3,615 |  | — |  | 12,753 |  | 79,383 |
Noncontrolling interests | 252 |  | 137 |  | — |  | — |  | — |  | — |  | — |  | 389 |
Net income attributable to shareholders | $ | 49,503 |  | $ | 7,254 |  | $ | 6,567 |  | $ | (698 | ) | $ | 3,615 |  | $ | — |  | $ | 12,753 |  | $ | 78,994 |
Net income per diluted share | $ | 0.61 |  | $ | 0.09 |  | $ | 0.08 |  | $ | (0.01 | ) | $ | 0.04 |  | $ | — |  | $ | 0.16 |  | $ | 0.97 |
Effective tax rate | 35.9 | % |  |  |  |  |  |  | 29.5 | %
Three months ended March 30, 2019
| Reported GAAP measure | Intangible amortization expense(2) | Restructuring & Integration charges | AFS Write Downs | Non-recurring tax items | Impact of Wind Down(2) | Other(3) | Non-GAAP measure
Sales | $ | 7,155,991 |  | $ | — |  | $ | — |  | $ | — |  | $ | — |  | $ | (83,054 | ) | $ | — |  | $ | 7,072,937 |
Gross Profit | 861,688 |  | — |  | — |  | — |  | — |  | (8,127 | ) | — |  | 853,561 |
Operating income | 245,560 |  | 9,142 |  | 11,086 |  | — |  | — |  | 10,196 |  | 866 |  | 276,850 |
Income before income taxes | 196,321 |  | 9,142 |  | 11,086 |  | — |  | — |  | 10,343 |  | (4,482 | ) | 222,410 |
Provision for income taxes | 53,907 |  | 2,540 |  | 2,711 |  | — |  | (3,502 | ) | 2,528 |  | (1,319 | ) | 56,865 |
Consolidated net income | 142,414 |  | 6,602 |  | 8,375 |  | — |  | 3,502 |  | 7,815 |  | (3,163 | ) | 165,545 |
Noncontrolling interests | 1,679 |  | 142 |  | — |  | — |  | — |  | — |  | — |  | 1,821 |
Net income attributable to shareholders | $ | 140,735 |  | $ | 6,460 |  | $ | 8,375 |  | $ | — |  | $ | 3,502 |  | $ | 7,815 |  | $ | (3,163 | ) | $ | 163,724 |
Net income per diluted share(4) | $ | 1.63 |  | $ | 0.07 |  | $ | 0.10 |  | $ | — |  | $ | 0.04 |  | $ | 0.09 |  | $ | (0.04 | ) | $ | 1.90 |
Effective tax rate | 27.5 | % |  |  |  |  |  |  | 25.6 | %
(1) Other includes loss on investments, net
(2) Identifiable intangible asset amortization related to the personal computer and mobility asset disposition business are included in “impact of wind down” above.
(3) Other includes loss on disposition of businesses, net and loss on investments, net.
(4) The sum of the components for diluted EPS, as adjusted may not agree to totals, as presented, due to rounding.

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ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
| Quarter Ended
| March 28, 2020 |  | March 30, 2019
Sales: |  |  |
Global components | $ | 4,550,601 |  |  | $ | 5,191,927 |
Global ECS | 1,830,816 |  |  | 1,964,064 |
Consolidated | $ | 6,381,417 |  |  | $ | 7,155,991 |
Operating income (loss): |  |  |
Global components | $ | 164,767 |  |  | $ | 234,532 |
Global ECS | 42,433 |  |  | 86,718 |
Corporate (a) | (68,896 | ) |  | (75,690 | )
Consolidated | $ | 138,304 |  |  | $ | 245,560 |

(a) | Includes restructuring, integration, and other charges of $9,138 and $11,660 for the first quarter of 2020 and 2019, respectively. Also includes a loss on disposition of business of $866 for the first quarter of 2019.

NON-GAAP SEGMENT RECONCILIATION
| Quarter Ended
| March 28, 2020 |  | March 30, 2019
Global components operating income, as reported | $ | 164,767 |  |  | $ | 234,532 |
Intangible assets amortization expense (b) | 7,380 |  |  | 6,253 |
Impact of wind-down (b) | — |  |  | 9,622 |
AFS notes receivable reserve | (920 | ) |  | — |
Global components operating income, as adjusted | $ | 171,227 |  |  | $ | 250,407 |
Global ECS operating income, as reported | $ | 42,433 |  |  | $ | 86,718 |
Intangible assets amortization expense | 2,575 |  |  | 2,889 |
Global ECS operating income, as adjusted | $ | 45,008 |  |  | $ | 89,607 |

(b) | Identifiable intangible asset amortization related to the personal computer and mobility asset disposition business is included in “impact of wind down” above.

Contact: Steven O’Brien,
Vice President, Investor Relations
303-824-4544
Media Contact: John Hourigan,
Vice President, Global Communications
303-824-4586

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