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Debt | 9 Months Ended
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Oct. 02, 2021
Debt Disclosure [Abstract] |
Debt [Text Block] | Debt Short-term borrowings, including current portion of long-term debt, consists of the following:
|  | October 2, 2021 |  | December 31, 2020
5.125% notes, due March 2021 |  | $ | — |  |  | $ | 130,836 |
3.50% notes, due April 2022 |  | 349,561 |  |  | — |
Other short-term borrowings |  | 4,354 |  |  | 27,797 |
|  | $ | 353,915 |  |  | $ | 158,633 |
Other short-term borrowings are primarily utilized to support working capital requirements. The weighted-average interest rate on these borrowings was 1.17% and 1.73% at October 2, 2021 and December 31, 2020, respectively. The company has $200,000 in uncommitted lines of credit. There were no outstanding borrowings under the uncommitted lines of credit at October 2, 2021 and December 31, 2020. These borrowings are 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 1.50% and 1.53% at October 2, 2021 and December 31, 2020, 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 at October 2, 2021 and December 31, 2020. The program had a weighted-average effective interest rate of .28% and .30% at October 2, 2021 and December 31, 2020, respectively. Long-term debt consists of the following:
|  | October 2, 2021 |  | December 31, 2020
Revolving credit facility |  | $ | 35,000 |  |  | $ | — |
North American asset securitization program |  | 255,000 |  |  | — |
3.50% notes, due 2022 |  | — |  |  | 348,918 |
4.50% notes, due 2023 |  | 299,135 |  |  | 298,701 |
3.25% notes, due 2024 |  | 496,800 |  |  | 496,034 |
4.00% notes, due 2025 |  | 347,490 |  |  | 346,999 |
7.50% senior debentures, due 2027 |  | 110,000 |  |  | 109,939 |
3.875% notes, due 2028 |  | 495,671 |  |  | 495,223 |
Other obligations with various interest rates and due dates |  | 665 |  |  | 2,126 |
|  | $ | 2,039,761 |  |  | $ | 2,097,940 |
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, using quoted market prices, is as follows:
|  | October 2, 2021 |  | December 31, 2020
3.50% notes, due 2022 |  | $ | — |  |  | $ | 360,500 |
4.50% notes, due 2023 |  | 313,500 |  |  | 321,500 |
3.25% notes, due 2024 |  | 531,000 |  |  | 540,500 |
4.00% notes, due 2025 |  | 378,500 |  |  | 383,000 |
7.50% senior debentures, due 2027 |  | 138,000 |  |  | 140,000 |
3.875% notes, due 2028 |  | 542,000 |  |  | 564,000 |
The carrying amount of the company’s short-term borrowings in various countries, revolving credit facility, 3.50% notes due April 2022, North American asset securitization program, commercial paper, and other obligations approximate their fair value. The company has a $2,000,000 revolving credit facility that 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. In September 2021, the company amended its revolving credit facility and, among other things, extended its term to mature in September 2026. Interest on borrowings under the revolving credit facility is calculated using a base rate or a Eurocurrency rate plus a spread (1.08% at October 2, 2021), which is based on the company’s credit ratings, or an effective interest rate of 1.22% at October 2, 2021. The facility fee, which is based on the company’s credit ratings, was .175% of the total borrowing capacity at October 2, 2021. The company had $35,000 in outstanding borrowings under the revolving credit facility at October 2, 2021 and no outstanding borrowings under the revolving credit facility at December 31, 2020. The company has a North American asset securitization program collateralized by accounts receivable of certain of its subsidiaries. In March 2021, the company amended its asset securitization program and, among other things, increased its borrowing capacity from $1,200,000 to $1,250,000 and extended its term to mature in March 2024. 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 (.45% at October 2, 2021), or an effective interest rate of .55% at October 2, 2021. The facility fee is .40% of the total borrowing capacity. The company had $255,000 in outstanding borrowings under the North American asset securitization program at October 2, 2021, which was included in “Long-term debt” in the company’s consolidated balance sheets. There were no outstanding borrowings under the North American asset securitization program at December 31, 2020. Total collateralized accounts receivable of approximately $2,142,595 and $2,207,700 were held by AFC and were included in “Accounts receivable, net” in the company’s consolidated balance sheets at October 2, 2021 and December 31, 2020, 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 October 2, 2021, the company was in compliance with all such financial covenants. During March 2021, the company repaid $130,860 principal amount of its 5.125% notes due March 2021. During April 2020, the company repaid $209,366 principal amount of its 6.00% notes due April 2020. 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. Interest and other financing expense, net, includes interest and dividend income of $4,040 and $11,891 for the third quarter and first nine months of 2021, respectively, and $4,673 and $18,099 for the third quarter and first nine months of 2020, respectively.

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- 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
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