Arrow's ESG and Financial Overview slide image

Arrow's ESG and Financial Overview

Annual ROWC and ROIC reconciliation ($ in thousands) Numerator: 2023 2022 2021 2020 2019 Consolidated operating income, as reported Equity in earnings of affiliated companies (1) Less: Noncontrolling interests (1) Consolidated operating income, as adjusted Less: Tax effect (2) $ 1,471,164 $ 2,068,494 $ 6,407 7,664 1,556,822 $ 3,508 894,511 $ (531) 5,858 1,471,713 $ 323,586 After-tax consolidated operating income, as adjusted Non-GAAP consolidated operating income Equity in earnings of affiliated companies Less: Noncontrolling interests (1) Non-GAAP consolidated operating income, as adjusted $ 1,148,127 $ 8,274 2,067,884 $ 494,690 1,573,194 $ 2,271 2,026 1,558,059 $ 354,044 1,204,015 $ 891,954 $ 203,511 688,443 $ 107,696 (2,765) 3,919 101,012 (82,903) 183,915 $ 1,586,322 $ 2,116,927 $ (1) 6,407 7,664 6,397 Less: Tax Effect (3) After-Tax non-GAAP consolidated operating income, as adjusted $ 1,586,332 $ 350,378 1,235,954 $ 8,799 2,115,792 $ 506,497 1,609,295 $ 1,609,145 $ 3,508 2,271 1,610,382 $ 366,746 1,243,636 $ 936,915 (531) 2,026 934,358 $ 214,779 719,579 $ 1,056,785 (2,765) 3,919 1,050,101 256,112 793,989 Denominator: (4) Average short-term borrowings, including current portion of long-term debt (4) Average long-term debt $ 892,986 $ 504,094 $ 3,068,681 2,852,348 Average total equity (4 Less: Average cash and cash equivalents (4) Invested Capital Return on invested capital Return on invested capital (non-GAAP) ($ in thousands) Numerator: Consolidated operating income, as reported Non-GAAP consolidated operating income (4) 5,659,361 5,416,410 322,696 $ 2,034,077 5,233,267 255,538 $ 2,231,394 4,850,535 234,840 240,296 256,702 $ 9,386,188 $ 8,532,556 $ 7,333,338 $ 261,513 7,075,954 $ 270,475 3,110,940 5,062,226 338,714 8,104,927 12.23% 13.17% 18.44% 18.86% 16.42% 16.96% 9.73% 10.17% 2023 2022 2021 2020 2019 Denominator: Accounts receivable, net (5) Inventories (5) Less: Accounts payable (5) Working Capital Return on working capital Return on working capital (non-GAAP) MW 2.27% 9.80% (1) Operating income, as reported, and non- GAAP operating income is adjusted for noncontrolling interest and equity in losses of affiliated companies to include the pro-rata ownership of non-wholly owned subsidiaries. (2) The tax effect is calculated by applying the effective tax rate for the years ended to consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense, gain on investments, net, and employee benefit plan expense, net. (3) The tax effect is calculated by applying the non-GAAP effective tax rate for the years ended to non-GAAP consolidated operating income, as adjusted. The tax rate is adjusted to exclude the impacts of interest expense and employee benefit plan expense, net. (4) The year ended average is based on the addition of the account balance at the end of the five most recently-ended quarters and dividing by five. (5) This amount is an average balance based on the addition of the account balance at the end of the five most recently-ended quarters and dividing by five. $ $ +A 1,471,164 $ 1,586,322 $ 2,068,494 $ 2,116,927 $ 1,556,822 $ 1,609,145 $ 894,511 $ 936,915 $ 107,696 1,056,785 11,377,422 $ 5,458,019 9,515,699 11,227,736 $ 4,827,278 $ 7,319,742 $ 9,578,175 6,476,839 $ 9,401,688 $ 3,647,146 8,046,357 5,002,477 $ 8,283,552 $ 3,351,088 7,092,575 8,229,824 3,638,159 6,627,807 4,542,065 $ 5,240,176 20.10% 31.94% 31.12% 19.69% 2.06% 21.67% 32.68% 32.17% 20.63% 20.17% 44
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