Investments in Affiliated Companies

6 Months Ended

Jun. 29, 2024

Investments in Affiliated Companies

Investments in Affiliated Companies

Note D – Investments in Affiliated Companies

The company owns a 50% interest in two joint ventures with Marubun Corporation (collectively “Marubun/Arrow”) and a 50% interest in one other joint venture. These investments are accounted for using the equity method.

The following table presents the company’s investment in affiliated companies:

	June 29,		December 31,
(thousands)	2024		2023
Marubun/Arrow	$	47,350	$	50,779
Other		13,050		11,962
	$	60,400	$	62,741

The equity in earnings of affiliated companies consists of the following:

	Quarter Ended				Six Months Ended
	June 29,		July 1,			June 29,		July 1,
(thousands)	2024		2023			2024		2023
Marubun/Arrow	$	620	$	2,365	$	86	$	1,968
Other		634		696		824		1,013
	$	1,254	$	3,061	$	910	$	2,981

Under the terms of various joint venture agreements, the company is required to pay its pro-rata share of the third-party debt of the joint ventures in the event that the joint ventures are unable to meet their obligations. There were no outstanding borrowings under the third-party debt agreements of the joint ventures as of June 29, 2024 and December 31, 2023.