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EARNINGS RECONCILIATION
     $ in thousands, except per share data


                                                                                     Q308                        Q208         Q307

     Operating income, as Reported                                                $131,776                    $164,958       $157,509
       Restructuring and integration charges                                         11,037                        8,196       4,512
     Operating income, as Adjusted                                                $142,813                    $173,154       $162,021

     Net income, as Reported                                                       $76,070                      $96,215       $98,324
       Restructuring and integration charges                                          7,635                        5,929       2,674
       Deferred tax adjustment                                                             --                          --      (6,024)
     Net income, as Adjusted                                                       $83,705                     $102,144      $94,974


     Diluted EPS, as Reported                                                           $.63                         $.79        $.79
       Restructuring and integration charges                                              .06                          .05        .02
       Deferred tax adjustment                                                             --                           --       (.05)
     Diluted EPS, as Adjusted                                                           $.70                         $.84        $.76




  The sum of the components for net income per share, as Adjusted, may not agree to totals, as presented, due to rounding.

Third Quarter Earnings
October 22, 2008
Page 1
EARNINGS RECONCILIATION
   References to restructuring and other charges refer to the following incremental charges
   taken in the quarters indicated:


   Q3-08 Restructuring and Integration Charges: During the third quarter of 2008, the company
    recorded a restructuring and integration charge of $11.0 million ($7.6 million net of related taxes or
    $.06 per share on both a basic and diluted basis) primarily related to initiatives taken by the
    company to improve operating efficiencies.

   Q2-08 Restructuring and Integration Charges: During the second quarter of 2008, the company
    recorded a restructuring and integration charge of $8.2 million ($5.9 million net of related taxes or
    $.05 per share on both a basic and diluted basis) primarily related to initiatives taken by the
    company to improve operating efficiencies.

   Q3-07 Restructuring and integration Charges: During the third quarter of 2007, the company
    recorded a restructuring and integration charge of $4.5 million ($2.7 million net of related taxes or
    $.02 per share on both a basic and diluted basis), primarily related to initiatives taken by the
    company in the period to improve operating efficiencies and the acquisition of KeyLink.

   Q3-07 Deferred Tax Adjustment: During the third quarter of 2007, the company recorded an
    income tax benefit of $6.0 million, net, ($.05 per share on both a basic and diluted basis) principally
    due to a reduction in deferred income taxes as a result of the reduction in the statutory tax rate in
    Germany.




Third Quarter Earnings
October 22, 2008
Page 2

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arrow electronics GAAP Financial Reconciliation 2008 3rd

  • 1. EARNINGS RECONCILIATION $ in thousands, except per share data Q308 Q208 Q307 Operating income, as Reported $131,776 $164,958 $157,509 Restructuring and integration charges 11,037 8,196 4,512 Operating income, as Adjusted $142,813 $173,154 $162,021 Net income, as Reported $76,070 $96,215 $98,324 Restructuring and integration charges 7,635 5,929 2,674 Deferred tax adjustment -- -- (6,024) Net income, as Adjusted $83,705 $102,144 $94,974 Diluted EPS, as Reported $.63 $.79 $.79 Restructuring and integration charges .06 .05 .02 Deferred tax adjustment -- -- (.05) Diluted EPS, as Adjusted $.70 $.84 $.76 The sum of the components for net income per share, as Adjusted, may not agree to totals, as presented, due to rounding. Third Quarter Earnings October 22, 2008 Page 1
  • 2. EARNINGS RECONCILIATION References to restructuring and other charges refer to the following incremental charges taken in the quarters indicated: Q3-08 Restructuring and Integration Charges: During the third quarter of 2008, the company recorded a restructuring and integration charge of $11.0 million ($7.6 million net of related taxes or $.06 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies. Q2-08 Restructuring and Integration Charges: During the second quarter of 2008, the company recorded a restructuring and integration charge of $8.2 million ($5.9 million net of related taxes or $.05 per share on both a basic and diluted basis) primarily related to initiatives taken by the company to improve operating efficiencies. Q3-07 Restructuring and integration Charges: During the third quarter of 2007, the company recorded a restructuring and integration charge of $4.5 million ($2.7 million net of related taxes or $.02 per share on both a basic and diluted basis), primarily related to initiatives taken by the company in the period to improve operating efficiencies and the acquisition of KeyLink. Q3-07 Deferred Tax Adjustment: During the third quarter of 2007, the company recorded an income tax benefit of $6.0 million, net, ($.05 per share on both a basic and diluted basis) principally due to a reduction in deferred income taxes as a result of the reduction in the statutory tax rate in Germany. Third Quarter Earnings October 22, 2008 Page 2