ARROW ELECTRONICS, INC. Goodwill & Intangibles Disclosure
2. Goodwill and Intangible Assets
Goodwill represents the excess of the cost of an acquisition over the fair value of the net assets acquired. The company tests goodwill and other indefinite-lived intangible assets for impairment annually as of the first day of the fourth quarter, or more frequently if indicators of potential impairment exist. As of the first day of the fourth quarters of 2025, 2024, and 2023, the company’s annual impairment testing did not result in any additional impairment of goodwill of companies acquired.
Goodwill of companies acquired, allocated to the company’s reportable segments, is as follows:
| Global | | | ||||||
(thousands) | Components | Global ECS | Total | ||||||
Balance as of December 31, 2023 (a) | $ | 875,194 | $ | 1,175,232 | $ | 2,050,426 | |||
Acquisitions |
| 35,870 |
| — |
| 35,870 | |||
Foreign currency translation adjustment |
| (8,619) |
| (22,382) |
| (31,001) | |||
Balance as of December 31, 2024 (a) | $ | 902,445 | $ | 1,152,850 | $ | 2,055,295 | |||
Foreign currency translation adjustment |
| 16,617 |
| 48,159 |
| 64,776 | |||
Balance as of December 31, 2025 (a) | $ | 919,062 | $ | 1,201,009 | $ | 2,120,071 | |||
| (a) | The total carrying value of goodwill as of December 31, 2025, 2024, and 2023 in the table above is reflected net of $1.6 billion of accumulated impairment charges, of which $1.3 billion was recorded in the global components segment and $301.9 million was recorded in the global ECS segment. |
Intangible assets, net, are comprised of the following as of December 31, 2025:
| Gross | | | ||||||
Carrying | Accumulated | ||||||||
(thousands) | Amount | Amortization | Net | ||||||
Customer relationships | $ | 192,743 | $ | (125,910) | $ | 66,833 | |||
Amortizable trade name |
| 74,001 |
| (63,812) |
| 10,189 | |||
$ | 266,744 | $ | (189,722) | $ | 77,022 | ||||
Intangible assets, net, are comprised of the following as of December 31, 2024:
| Gross | | | ||||||
Carrying | Accumulated | ||||||||
(thousands) | Amount | Amortization | Net | ||||||
Customer relationships | $ | 215,366 | $ | (133,927) | $ | 81,439 | |||
Amortizable trade name |
| 74,001 |
| (58,734) |
| 15,267 | |||
$ | 289,367 | $ | (192,661) | $ | 96,706 | ||||
Amortization expense related to identifiable intangible assets was $19.8 million, $29.5 million, and $31.2 million for the years ended December 31, 2025, 2024, and 2023, respectively. Amortization expense for each of the years 2026 through 2030 is estimated to be approximately $19.0 million, $18.8 million, $11.2 million, $7.3 million, and $7.3 million, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 11, 2025 | |
| 2023 | Feb 13, 2024 | |
| 2022 | Feb 9, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 11, 2021 | |
| 2019 | Feb 13, 2020 | |
| 2018 | Feb 7, 2019 | |
| 2017 | Feb 6, 2018 | |
| 2016 | Feb 7, 2017 | |
| 2015 | Feb 5, 2016 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.