OREANDA-NEWS. Arrow Electronics, Inc. (NYSE:ARW) today reported fourth-quarter 2015 net income of $158.5 million, or $1.69 per share on a diluted basis, compared with net income of $116.2 million, or $1.18 per share on a diluted basis, in the fourth quarter of 2014. Excluding certain items1, net income would have been $182.1 million, or $1.94 per share on a diluted basis, in the fourth quarter of 2015, compared with net income of $184.4 million, or $1.88 per share on a diluted basis, in the fourth quarter of 2014. Fourth-quarter sales of $6.75 billion increased 6 percent from sales of $6.4 billion in the prior year. Fourth-quarter sales, adjusted for the impact of acquisitions and changes in foreign currencies, increased 4 percent year over year. In the fourth quarter of 2015, changes in foreign currencies had negative impacts on growth of approximately $270 million on sales and $.11 or 6 percent on earnings per share on a diluted basis compared to the fourth quarter of 2014.

“Our strong execution during the fourth quarter drove record results. Both our global components and enterprise computing solutions businesses produced sales that were above the high end of our expectations resulting in earnings per share of $1.94 that was also above the high end of what we had anticipated,” said Michael J. Long, chairman, president, and chief executive officer. “We continue to differentiate our businesses with our focus on design and value-added services for global components, and our solution-selling approach for enterprise computing solutions.”

Global components fourth-quarter sales of $3.67 billion grew 2 percent year over year. Fourth-quarter sales, as adjusted, were flat year over year. Americas components sales declined 4 percent year over year. Europe components sales grew 8 percent year over year. Sales in the region, as adjusted, grew 12 percent year over year. Asia-Pacific components sales grew 6 percent year over year. Sales in the region, as adjusted, declined 4 percent year over year.

Global enterprise computing solutions fourth-quarter sales of $3.08 billion grew 10 percent year over year. Americas sales grew 11 percent year over year. Sales in the region, as adjusted, grew 5 percent year over year. Europe sales grew 7 percent year over year. Sales in the region, as adjusted, grew 22 percent year over year. “Enterprise computing solutions posted record fourth-quarter sales and operating income, and our software sales continued to contribute a greater percentage of our product mix,” added Mr. Long.

1 A reconciliation of non-GAAP adjusted financial measures, including sales, as adjusted, operating income, as adjusted, net income attributable to shareholders, as adjusted, and net income per share, as adjusted, to GAAP financial measures is presented in the reconciliation tables included herein.

FULL-YEAR RESULTS

Arrow’s net income for 2015 was $497.7 million, or $5.20 per share on a diluted basis, compared with net income of $498 million, or $4.98 per share on a diluted basis, in 2014. Excluding certain items1, net income would have been $592.3 million, or $6.19 per share on a diluted basis, in 2015, compared with net income of $593 million, or $5.93 per share on a diluted basis, in 2014. 2015 sales of $23.28 billion increased 2 percent from sales of $22.77 billion in 2014. Sales, adjusted for acquisitions and changes in foreign currencies, increased 3 percent year over year. In 2015, changes in foreign currencies had negative impacts on growth of approximately $1.22 billion on sales and $.38 or 6 percent on earnings per share on a diluted basis compared to 2014.

“We delivered excellent growth in 2015 despite the challenging economic environment, with sales, as adjusted, up 3 percent year over year, and diluted earnings per share of $6.19 up 11 percent year over year adjusted for changes in foreign currencies,” said Mr. Long.

“Cash flow from operations was $655 million in 2015 as we continue to exceed our cash flow target,” said Paul J. Reilly, executive vice president, finance and operations, and chief financial officer. “The strong management of our balance sheet and cash flow provided the opportunity for Arrow to reduce leverage during the fourth quarter, and return approximately $341 million to shareholders through our stock repurchase program in 2015.”

GUIDANCE

“As we look to the first quarter, we believe that total sales will be between $5.25 billion and $5.65 billion, with global components sales between $3.55 billion and $3.75 billion, and global enterprise computing solutions sales between $1.7 billion and $1.9 billion. As a result of this outlook, we expect earnings per share on a diluted basis, excluding any charges, to be in the range of $1.34 to $1.46 per share. Our guidance assumes an average tax rate in the range of 27 to 29 percent and average diluted shares outstanding are expected to be 93 million. We are expecting the average USD-to-Euro exchange rate for the first quarter to be approximately $1.10 to €1,” said Mr. Reilly.

As disclosed today in a Form 8-K filed with the Securities and Exchange Commission, on January 22, Arrow determined that it had been the target of a criminal fraud by persons impersonating a company executive, which resulted in unauthorized transfers of cash from a Company account to outside bank accounts in Asia. Investigation and legal action by the Company and law enforcement are ongoing and the results of, and timing to conclude, these investigations are uncertain. The Company expects to record a one-time charge of $13 million in the first quarter of 2016. To date, the findings of our ongoing investigation indicate that this is an isolated event not associated with a security breach or loss of data.

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 is a global provider of products, services and solutions to industrial and commercial users of electronic components and enterprise computing solutions. Arrow serves as a supply channel partner for more than 100,000 original equipment manufacturers, contract manufacturers and commercial customers through a global network of more than 460 locations serving over 85 countries.

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: industry conditions, the company's implementation of its new enterprise resource planning system, changes in product supply, pricing and customer demand, competition, other vagaries in the global components and global enterprise computing solutions markets, changes in relationships with key suppliers, increased profit margin pressure, the effects of additional actions taken to become more efficient or lower costs, risks related to the integration of acquired businesses, changes in legal and regulatory matters, and the company’s ability to generate additional cash flow. 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.

For a further discussion of factors to consider in connection with these forward-looking statements, investors should refer to Item 1A Risk Factors of the company’s Annual Report on Form 10-K for the year ended December 31, 2015.

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 on a non-GAAP basis adjusted for the impact of changes in foreign currencies and the impact of acquisitions by adjusting the company's operating results for businesses acquired, including the amortization expense related to acquired intangible assets, as if the acquisitions had occurred at the beginning of the earliest period presented (referred to as "impact of acquisitions"). Operating income, net income attributable to shareholders, and net income per basic and diluted share are adjusted for certain charges, credits, gains, and losses that the company believes impact the comparability of its results of operations. These charges, credits, gains, and losses arise out of the company’s efficiency enhancement initiatives, acquisitions (including intangible assets amortization expense), loss on prepayment of debt, and (gain)/loss on investments. 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.

 

ARROW ELECTRONICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)
         
    Quarter Ended

December 31,

   Year Ended

December 31,
    2015   2014   2015   2014
                         
Sales   $ 6,751,342   $ 6,396,879   $ 23,282,020   $ 22,768,674
Costs and expenses:                        
Cost of sales     5,912,376     5,581,020     20,246,770     19,772,779
Selling, general, and administrative expenses     529,089     506,074     1,986,249     1,959,749
Depreciation and amortization     37,900     40,693     155,754     156,048
Restructuring, integration, and other charges     17,666     14,660     68,765     39,841
Trade name impairment charge     -     78,000     -     78,000
      6,497,031     6,220,447     22,457,538     22,006,417
Operating income     254,311     176,432     824,482     762,257
Equity in earnings of affiliated companies     2,147     2,528     7,037     7,318
Gain on sale of investment     -     -     2,008     29,743
Loss on prepayment of debt     -     -     2,943     -
Interest and other financing expense, net     34,442     29,906     135,401     115,985
Other Expense     1,500     -     3,000     -
Income before income taxes     220,516     149,054     692,183     683,333
Provision for income taxes     61,108     32,768     191,697     184,943
Consolidated net income     159,408     116,286     500,486     498,390
Noncontrolling interests     916     109     2,760     345
Net income attributable to shareholders   $ 158,492   $ 116,177   $ 497,726   $ 498,045
                         

Net income per share:

                        

Basic

   $ 1.71   $ 1.20   $ 5.26   $ 5.05

Diluted

   $ 1.69   $ 1.18   $ 5.20   $ 4.98
                         
Weighted average shares outstanding:                        
Basic     92,731     96,794     94,608     98,675
Diluted     94,039     98,102     95,686     99,947
                         

ARROW ELECTRONICS, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands except par value)
     
    December 31,
    2015   2014
ASSETS          
Current assets:            
Cash and cash equivalents   $ 273,090     $ 400,355  
Accounts receivable, net     6,161,418       6,043,850  
Inventories     2,466,490       2,335,257  
Other current assets     285,473       253,145  
Total current assets     9,186,471       9,032,607  
Property, plant, and equipment, at cost:            
Land     23,547       23,770  
Buildings and improvements     162,011       144,530  
Machinery and equipment     1,250,115       1,146,045  
      1,435,673       1,314,345  
Less: Accumulated depreciation and amortization     (735,495 )     (678,046 )
Property, plant, and equipment, net     700,178       636,299  
Investments in affiliated companies     73,376       69,124  
Intangible assets, net     389,326       335,711  
Cost in excess of net assets of companies acquired     2,368,832       2,069,209  
Other assets     303,747       292,351  
Total assets   $ 13,021,930     $ 12,435,301  
LIABILITIES AND EQUITY            
Current liabilities:            
Accounts payable   $ 5,192,665     $ 5,027,103  
Accrued expenses     819,463       797,464  
Short-term borrowings, including current portion of long-term debt     44,024       13,454  
Total current liabilities     6,056,152       5,838,021  
             
Long-term debt     2,380,575       2,067,898  
Other liabilities     390,392       370,471  
Equity:            
Shareholders' equity:            
Common stock, par value $1:            
Authorized – 160,000 shares in both 2015 and 2014            
Issued – 125,424 shares in both 2015 and 2014     125,424       125,424  
Capital in excess of par value     1,107,314       1,086,082  
Treasury stock (34,501 and 29,529 shares in 2015 and 2014, respectively), at cost     (1,480,069 )     (1,169,673 )
Retained earnings     4,674,480       4,176,754  
Accumulated other comprehensive loss     (284,706 )     (64,617 )
Total shareholders' equity     4,142,443       4,153,970  
Noncontrolling interests     52,368       4,941  
Total equity     4,194,811       4,158,911  
Total liabilities and equity   $ 13,021,930     $ 12,435,301  
                 

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
     
    Quarter Ended

December 31,
    2015     2014  
Cash flows from operating activities:            
Consolidated net income   $ 159,408     $ 116,286  
Adjustments to reconcile consolidated net income to net cash used for operations:            
Depreciation and amortization     37,900       40,693  
Amortization of stock-based compensation     13,491       10,647  
Equity in earnings of affiliated companies     (2,147 )     (2,528 )
Deferred income taxes     (21,048 )     (37,112 )
Restructuring, integration, and other charges     13,199       11,222  
Trade name impairment charge     -       78,000  
Excess tax benefits from stock-based compensation arrangements     (48 )     (152 )
Other     2,837       657  
Change in assets and liabilities, net of effects of acquired businesses:            
Accounts receivable     (1,125,272 )     (1,078,058 )
Inventories     2,100       (112,860 )
Accounts payable     1,352,100       1,260,888  
Accrued expenses     115,668       162,561  
Other assets and liabilities     (4,053 )     6,809  
Net cash provided by operating activities     544,135       457,053  
             
Cash flows from investing activities:            
Cash consideration paid for acquired businesses     (1,821 )     (33,359 )
Acquisition of property, plant, and equipment     (41,744 )     (34,624 )
Proceeds from sale of facilities     3,496       -  
Net cash used for investing activities     (40,069 )     (67,983 )
Cash flows from financing activities:            
Change in short-term and other borrowings     (42,576 )     (3,298 )
Proceeds from (repayment of)long-term bank borrowings, net     (366,700 )     (134,800 )
Proceeds from exercise of stock options     178       775  
Excess tax benefits from stock-based compensation arrangements     48       152  
Repurchases of common stock     (149,833 )     (115,352 )
Other     (1,937 )     (1,499 )
Net cash used for financing activities     (560,820 )     (254,022 )
Effect of exchange rate changes on cash     (6,900 )     7,074  
Net increase (decrease) in cash and cash equivalents     (63,654 )     142,122  
Cash and cash equivalents at beginning of period     336,744       258,233  
Cash and cash equivalents at end of period   $ 273,090     $ 400,355  
                 

ARROW ELECTRONICS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
     
    Year Ended

December 31,
      2015       2014  
Cash flows from operating activities:            
Consolidated net income   $ 500,486     $ 498,390  
Adjustments to reconcile consolidated net income to net cash provided by operations:            
Depreciation and amortization     155,754       156,048  
Amortization of stock-based compensation     47,274       41,930  
Equity in earnings of affiliated companies     (7,037 )     (7,318 )
Deferred income taxes     5,833       (25,744 )
Restructuring, integration, and other charges     51,305       29,324  
Trade name impairment charge     -       78,000  
Gain on sale of investment     (2,008 )     (18,269 )
Excess tax benefits from stock-based compensation arrangements     (5,911 )     (7,129 )
Other     10,894       2,686  
Change in assets and liabilities, net of effects of acquired businesses:            
Accounts receivable     (68,990 )     (521,613 )
Inventories     (42,790 )     (210,789 )
Accounts payable     33,398       628,697  
Accrued expenses     4,834       12,396  
Other assets and liabilities     (27,963 )     16,692  
Net cash provided by operating activities     655,079       673,301  
Cash flows from investing activities:            
Cash consideration paid for acquired businesses     (514,731 )     (162,881 )
Acquisition of property, plant, and equipment     (154,800 )     (122,505 )
Proceeds from sale of facilities     3,496       -  
Proceeds from sale of investment     2,008       40,542  
Net cash used for investing activities     (664,027 )     (244,844 )
                 
Cash flows from financing activities:            
Change in short-term and other borrowings     (46,645 )     (12,541 )
Proceeds from (repayment of) long-term bank borrowings, net     (128,000 )     (145,000 )
Net proceeds from note offering     688,162       -  
Redemption of notes     (254,313 )     -  
Proceeds from exercise of stock options     14,900       21,788  
Excess tax benefits from stock-based compensation arrangements     5,911       7,129  
Repurchases of common stock     (356,434 )     (304,763 )
Other     (7,768 )     (1,499 )
Net cash used for financing activities     (84,187 )     (434,886 )
Effect of exchange rate changes on cash     (34,130 )     16,182  
Net increase (decrease) in cash and cash equivalents     (127,265 )     9,753  
Cash and cash equivalents at beginning of year     400,355       390,602  
Cash and cash equivalents at end of year   $ 273,090     $ 400,355  
                 

ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
         
    Quarter Ended

December 31,

    
    2015   2014   % Change
                 
Consolidated sales, as reported   $ 6,751,342   $ 6,396,879     5.5 %
Impact of changes in foreign currencies     -     (283,102 )    
Impact of acquisitions     143     359,241      
Consolidated sales, as adjusted   $ 6,751,485   $ 6,473,018     4.3 %
                 
Global components sales, as reported   $ 3,668,804   $ 3,591,212     2.2 %
Impact of changes in foreign currencies     -     (132,631 )    
Impact of acquisitions     143     213,732      
Global components sales, as adjusted   $ 3,668,947   $ 3,672,313     (0.1 %)
                 
Europe components sales, as reported   $ 972,125   $ 896,334     8.5 %
Impact of changes in foreign currencies     -     (114,518 )    
Impact of acquisitions     143     85,152      
Europe components sales, as adjusted   $ 972,268   $ 866,968     12.1 %
                 
Asia components sales, as reported   $ 1,215,242   $ 1,151,852     5.5 %
Impact of changes in foreign currencies     -     (13,492 )    
Impact of acquisitions     -     123,001      
Asia components sales, as adjusted   $ 1,215,242   $ 1,261,361     (3.7 %)
                 
Global ECS sales, as reported   $ 3,082,538   $ 2,805,667     9.9 %
Impact of changes in foreign currencies     -     (150,471 )    
Impact of acquisitions     -     145,509      
Global ECS sales, as adjusted   $ 3,082,538   $ 2,800,705     10.1 %
                 
Europe ECS sales, as reported   $ 1,054,926   $ 983,620     7.2 %
Impact of changes in foreign currencies     -     (120,591 )    
Impact of acquisitions     -     -      
Europe ECS sales, as adjusted   $ 1,054,926   $ 863,029     22.2 %
 
Americas ECS sales, as reported   $ 2,027,612   $ 1,822,047     11.3 %
Impact of changes in foreign currencies     -     (29,880 )    
Impact of acquisitions     -     145,509      
Americas ECS sales, as adjusted   $ 2,027,612   $ 1,937,676     4.6 %
                     
ARROW ELECTRONICS, INC.
NON-GAAP SALES RECONCILIATION
(In thousands)
(Unaudited)
     

 

   Year Ended

December 31,

  
    2015   2014 % Change
                 
Consolidated sales, as reported   $ 23,282,020   $ 22,768,674     2.3 %
Impact of changes in foreign currencies     -     (1,315,027 )    
Impact of acquisitions     402,726     1,572,987      
Consolidated sales, as adjusted   $ 23,684,746   $ 23,026,634     2.9 %
                 
Global components sales, as reported   $ 14,405,793   $ 14,313,026     0.6 %
Impact of changes in foreign currencies     -     (737,358 )    
Impact of acquisitions     319,725     968,016      
Global components sales, as adjusted   $ 14,725,518   $ 14,543,684     1.3 %
                 
Europe components sales, as reported   $ 3,874,744   $ 3,819,427     1.5 %
Impact of changes in foreign currencies     -     (660,290 )    
Impact of acquisitions     104,634     382,318      
Europe components sales, as adjusted   $ 3,979,378   $ 3,541,455     12.4 %
                 
Asia components sales, as reported   $ 4,720,210   $ 4,564,293     3.4 %
Impact of changes in foreign currencies     -     (60,840 )    
Impact of acquisitions     211,745     500,494      
Asia components sales, as adjusted   $ 4,931,955   $ 5,003,947     (1.4 %)
                 
Global ECS sales, as reported   $ 8,876,227   $ 8,455,648     5.0 %
Impact of changes in foreign currencies     -     (577,670 )    
Impact of acquisitions     83,001     604,971      
Global ECS sales, as adjusted   $ 8,959,228   $ 8,482,949     5.6 %
                 
Europe ECS sales, as reported   $ 2,913,995   $ 3,044,677     (4.3 %)
Impact of changes in foreign currencies     -     (491,623 )    
Impact of acquisitions     -     -      
Europe ECS sales, as adjusted   $ 2,913,995   $ 2,553,054     14.1 %
 
Americas ECS sales, as reported   $ 5,962,232   $ 5,410,971     10.2 %
Impact of changes in foreign currencies     -     (86,046 )    
Impact of acquisitions     83,001     604,971      
Americas ECS sales, as adjusted   $ 6,045,233   $ 5,929,896     2.0 %
                     
ARROW ELECTRONICS, INC.
NON-GAAP EARNINGS RECONCILIATION
(In thousands except per share data)
(Unaudited)
 

 

   Quarter Ended

December 31,

   Year Ended

December 31,
    2015   2014   2015   2014
                         
Operating income, as reported   $ 254,311   $ 176,432   $ 824,482   $ 762,257  
Intangible assets amortization expense     11,743     11,138     51,036     44,063  
Restructuring, integration, and other charges     17,666     14,660     68,765     39,841  
Trade name impairment charge     -     78,000     -     78,000  
Operating income, as adjusted   $ 283,720   $ 280,230   $ 944,283   $ 924,161  
                         
Net income attributable to shareholders, as reported   $ 158,492   $ 116,177   $ 497,726   $ 498,045  
Intangible assets amortization expense     9,537     9,105     41,256     35,965  
Restructuring, integration, and other charges     13,199     11,222     51,304     29,324  
Trade name impairment charge     -     47,911     -     47,911  
Loss on prepayment of debt     -     -     1,808     -  
(Gain)/loss on investments     921     -     175     (18,269 )
Net income attributable to shareholders, as adjusted   $ 182,149   $ 184,415   $ 592,269   $ 592,976  
                         
Net income per basic share, as reported   $ 1.71   $ 1.20   $ 5.26   $ 5.05  
Intangible assets amortization expense     0.10     0.09     0.44     0.36  
Restructuring, integration, and other charges     0.14     0.12     0.54     0.30  
Trade name impairment charge     -     0.49     -     0.49  
Loss on prepayment of debt     -     -     0.02     -  
(Gain)/loss on investments     0.01     -     0.00     (0.19 )
Net income per basic share, as adjusted   $ 1.96   $ 1.91   $ 6.26   $ 6.01  
                         
Net income per diluted share, as reported   $ 1.69   $ 1.18   $ 5.20   $ 4.98  
Intangible assets amortization expense     0.10     0.09     0.43     0.36  
Restructuring, integration, and other charges     0.14     0.11     0.54     0.29  
Trade name impairment charge     -     0.49     -     0.48  
Loss on prepayment of debt     -     -     0.02     -  
(Gain)/loss on investments     0.01     -     0.00     (0.18 )
Net income per diluted share, as adjusted   $ 1.94   $ 1.88   $ 6.19   $ 5.93  
                           

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

ARROW ELECTRONICS, INC.
SEGMENT INFORMATION
(In thousands)
(Unaudited)
         
    Quarter Ended

December 31,

  

Year Ended

December 31,
    2015     2014     2015     2014  
Sales:                        
Global components   $ 3,668,804     $ 3,591,212     $ 14,405,793     $ 14,313,026  
Global ECS     3,082,538       2,805,667       8,876,227       8,455,648  
Consolidated   $ 6,751,342     $ 6,396,879     $ 23,282,020     $ 22,768,674  
                         
Operating income (loss):                        
Global components   $ 149,940     $ 153,753     $ 649,396     $ 653,992  
Global ECS     173,919       160,251       424,063       389,571  
Corporate (a)     (69,548 )     (137,572 )     (248,977 )     (281,306 )
Consolidated   $ 254,311     $ 176,432     $ 824,482     $ 762,257  
                                 
(a)   Includes restructuring, integration, and other charges of $17.7 million and $68.8 million for the fourth quarter and Year Ended 2015 and $14.7 million and $39.8 million for the fourth quarter and Year Ended 2014, respectively.
     

NON-GAAP SEGMENT RECONCILIATION
         
    Quarter Ended

December 31,

   Year Ended

December 31,
    2015   2014   2015   2014
Global components operating income, as reported   $ 149,940   $ 153,753   $ 649,396   $ 653,992
Intangible assets amortization expense     6,657     5,463     27,125     21,962
Global components operating income, as adjusted   $ 156,597   $ 159,216   $ 676,521   $ 675,954
                         
Global ECS operating income, as reported   $ 173,919   $ 160,251   $ 424,063   $ 389,571
Intangible assets amortization expense     5,086     5,675     23,911     22,101
Global ECS operating income, as adjusted   $ 179,005   $ 165,926   $ 447,974   $ 411,672