ARROW ELECTRONICS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands except per share data)
The following table presents assets/(liabilities) measured at fair value on a recurring basis at December 31, 2010: Level 1 Cash equivalents Available-for-sale securities Interest rate swaps Foreign exchange contracts
$ 254,296 68,746 $ 323,042
Level 2
Level 3
$ 282,900 $ 14,082 (494) $ 296,488 $
Total - $ 537,196 68,746 14,082 (494) - $ 619,530
The following table presents assets/(liabilities) measured at fair value on a recurring basis at December 31, 2009: Level 1 Cash equivalents Available-for-sale securities Interest rate swaps Cross-currency swaps Foreign exchange contracts
$ 451,225 56,464 $ 507,689
Level 2 $ 292,900 $ 11,592 (54,440) 544 $ 250,596 $
Level 3
Total - $ 744,125 56,464 11,592 (54,440) 544 - $ 758,285
Available-For-Sale Securities The company has a 2.7% equity ownership interest in WPG Holdings Co., Ltd. ("WPG") and an 8.4% equity ownership interest in Marubun Corporation ("Marubun"), which are accounted for as available-forsale securities. The fair value of the company's available-for-sale securities is as follows at December 31: 2010 Marubun WPG
2009 Marubun WPG
Cost basis Unrealized holding gain
$ 10,016 3,726
$ 10,798 44,206
$ 10,016 4,408
$ 10,798 31,242
Fair value
$ 13,742
$ 55,004
$ 14,424
$ 42,040
The fair value of these investments is included in "Other assets" in the company's consolidated balance sheets, and the related net unrealized holding gains and losses are included in "Other" in the shareholders' equity section in the company's consolidated balance sheets. During 2008, the company determined that an other-than-temporary decline in the fair value of Marubun occurred based upon various factors including the financial condition and near-term prospects of Marubun, the magnitude of the loss compared to the investment's cost, the length of time the investment was in an unrealized loss position, and publicly available information about the industry and geographic region in which Marubun operates and, accordingly, recognized a loss of $10,030 ($.08 per share on both a basic and diluted basis) on the write-down of this investment.
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