XML 37 R13.htm IDEA: XBRL DOCUMENT
v3.20.4

Debt | 12 Months Ended
--- | ---
Dec. 31, 2020
Debt Disclosure [Abstract] |
Debt [Text Block] | Debt Short-term borrowings, including current portion of long-term debt, consists of the following at December 31:
|  | 2020 |  | 2019
6.00% notes, due 2020 |  | $ | — |  |  | $ | 209,322 |
5.125% notes, due March 2021 |  | 130,836 |  |  | — |
Borrowings on lines of credit |  | — |  |  | 60,000 |
Other short-term borrowings |  | 27,797 |  |  | 62,109 |
|  | $ | 158,633 |  |  | $ | 331,431 |
Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 1.73% and 2.76% at December 31, 2020 and 2019, respectively. The company has $200,000 in uncommitted lines of credit. There were no outstanding borrowings under the uncommitted lines of credit at December 31, 2020. There were $60,000 of outstanding borrowings under the uncommitted lines of credit at December 31, 2019. These borrowings were provided on a short-term basis and the maturity is agreed upon between the company and the lender. The lines had a weighted-average effective interest rate of 1.53% and 2.61% at December 31, 2020, and December 31, 2019, respectively. The company has a commercial paper program and the maximum aggregate balance of commercial paper outstanding may not exceed the borrowing capacity of $1,200,000. The company had no outstanding borrowings under this program as of December 31, 2020 and 2019. The program had a weighted-average effective interest rate of 0.30% and 2.24% at December 31, 2020, and December 31, 2019, respectively. Long-term debt consists of the following at December 31:
|  | 2020 |  | 2019
North American asset securitization program |  | $ | — |  |  | $ | 400,000 |
Revolving credit facility |  | — |  |  | 10,000 |
5.125% notes, due 2021 |  | — |  |  | 130,691 |
3.50% notes, due 2022 |  | 348,918 |  |  | 348,088 |
4.50% notes, due 2023 |  | 298,701 |  |  | 298,148 |
3.25% notes, due 2024 |  | 496,034 |  |  | 495,045 |
4.00% notes, due 2025 |  | 346,999 |  |  | 346,368 |
7.50% senior debentures, due 2027 |  | 109,939 |  |  | 109,857 |
3.875% notes, due 2028 |  | 495,223 |  |  | 494,648 |
Other obligations with various interest rates and due dates |  | 2,126 |  |  | 7,284 |
|  | $ | 2,097,940 |  |  | $ | 2,640,129 |
The 7.50% senior debentures are not redeemable prior to their maturity. All other notes may be called at the option of the company subject to “make whole” clauses. The estimated fair market value of long-term debt at December 31, using quoted market prices, is as follows:
|  | 2020 |  | 2019
3.50% notes, due 2022 |  | $ | 360,500 |  |  | $ | 358,500 |
4.50% notes, due 2023 |  | 321,500 |  |  | 316,000 |
3.25% notes, due 2024 |  | 540,500 |  |  | 515,500 |
4.00% notes, due 2025 |  | 383,000 |  |  | 367,000 |
7.50% senior debentures, due 2027 |  | 140,000 |  |  | 135,000 |
3.875% notes, due 2028 |  | 564,000 |  |  | 516,500 |
The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 5.125% notes due March 2021, North American asset securitization program, commercial paper, and other obligations approximate their fair value. The company has a $2,000,000 revolving credit facility maturing in December 2023. This facility may be used by the company for general corporate purposes including working capital in the ordinary course of business, letters of credit, repayment, prepayment or purchase of long-term indebtedness, acquisitions, and as support for the company's commercial paper program, as applicable. Interest on borrowings under the revolving credit facility is calculated using a base rate or a Eurocurrency rate plus a spread (1.18% at December 31, 2020), which is based on the company's credit ratings, or an effective interest rate of 1.26% at December 31, 2020. The facility fee, which is based on the company's credit ratings, was .20% of the total borrowing capacity at December 31, 2020. The company had no outstanding borrowings under the revolving credit facility at December 31, 2020 and $10,000 in outstanding borrowings under the revolving credit facility at December 31, 2019. The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. The company may borrow up to $1,200,000 under the program, which matures in June 2021. The company has the intent and ability to refinance the North American asset securitization program on a long-term basis and intends to refinance the program in 2021 prior to the maturity date. The program is conducted through Arrow Electronics Funding Corporation (“AFC”), a wholly-owned, bankruptcy remote subsidiary. The North American asset securitization program does not qualify for sale treatment. Accordingly, the accounts receivable and related debt obligation remain on the company's consolidated balance sheets. Interest on borrowings is calculated using a base rate or a commercial paper rate plus a spread (.40% at December 31, 2020), or an effective interest rate of .56% at December 31, 2020. The facility fee is .40% of the total borrowing capacity. At December 31, 2020, the company had no outstanding borrowings under the North American asset securitization program. At December 31, 2019, the company had $400,000 in outstanding borrowings under the North American asset securitization program, which was included in “Long-term debt” in the company's consolidated balance sheets. Total collateralized accounts receivable of approximately $2,207,700 and $2,217,800 were held by AFC and were included in “Accounts receivable, net” in the company's consolidated balance sheets at December 31, 2020 and 2019, respectively. Any accounts receivable held by AFC would likely not be available to other creditors of the company in the event of bankruptcy or insolvency proceedings before repayment of any outstanding borrowings under the North American asset securitization program. Both the revolving credit facility and North American asset securitization program include terms and conditions that limit the incurrence of additional borrowings and require that certain financial ratios be maintained at designated levels. As of December 31, 2020, the company was in compliance with all such financial covenants. During April 2020, the company repaid $209,366 principal amount of its 6.00% notes due April 2020. During March 2018, the company redeemed $300,000 principal amount of its 3.00% notes due March 2018. In the normal course of business, certain of the company’s subsidiaries have agreements to sell, without recourse, selected trade receivables to financial institutions. The company does not retain financial or legal interests in these receivables, and, accordingly they are accounted for as sales of the related receivables and the receivables are removed from the company’s consolidated balance sheets. Annual payments of borrowings during each of the years 2021 through 2025 are $158,633, $350,491, $299,049, $496,220, and $347,018, respectively, and $605,162 for all years thereafter. Interest and other financing expense, net, includes interest and dividend income of $22,568, $54,815, and $47,860 in 2020, 2019, and 2018, respectively. Interest paid, net of interest and dividend income, amounted to $138,303, $209,512, and $213,913 in 2020, 2019, and 2018, respectively.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration