Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Jul. 04, 2014 | Jul. 22, 2014 | |
Entity Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 4-Jul-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'AXE | ' |
Entity Registrant Name | 'ANIXTER INTERNATIONAL INC | ' |
Entity Central Index Key | '0000052795 | ' |
Current Fiscal Year End Date | '--01-02 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 32,759,173 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 |
Net sales | $1,586 | $1,579.50 | $3,109.80 | $3,070.40 |
Cost of goods sold | 1,223.10 | 1,223.40 | 2,393.30 | 2,376.10 |
Gross profit | 362.9 | 356.1 | 716.5 | 694.3 |
Operating expenses | 270.5 | 270.3 | 538.4 | 527.5 |
Operating income | 92.4 | 85.8 | 178.1 | 166.8 |
Other expense: | ' | ' | ' | ' |
Interest expense | -10.1 | -11.3 | -21.3 | -24.9 |
Other, net | -2.6 | -3.7 | -12.9 | -5.7 |
Income before income taxes | 79.7 | 70.8 | 143.9 | 136.2 |
Income tax expense | 25.9 | 24.7 | 42.7 | 47.6 |
Net income | 53.8 | 46.1 | 101.2 | 88.6 |
Income per share: | ' | ' | ' | ' |
Basic | $1.63 | $1.41 | $3.07 | $2.71 |
Diluted | $1.61 | $1.40 | $3.04 | $2.67 |
Basic weighted-average common shares outstanding | 33 | 32.8 | 33 | 32.7 |
Effect of dilutive securities: | ' | ' | ' | ' |
Stock options and units | 0.3 | 0.2 | 0.3 | 0.2 |
Convertible notes due 2013 | 0 | 0 | 0 | 0.3 |
Diluted weighted-average common shares outstanding | 33.3 | 33 | 33.3 | 33.2 |
Foreign currency translation | 15 | -12.5 | 8.6 | -20.6 |
Changes in unrealized pension cost, net of tax | -0.1 | 0.4 | -0.3 | 0.3 |
Change in fair market value of derivatives | -0.1 | -0.1 | -0.1 | -0.1 |
Other comprehensive income (loss) | 14.8 | -12.2 | 8.2 | -20.4 |
Comprehensive income | $68.60 | $33.90 | $109.40 | $68.20 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Jul. 04, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $121.40 | $57.30 |
Accounts receivable (Includes $507.1 and $524.2 at July 4, 2014 and January 3, 2014, respectively, associated with securitization facility) | 1,262.60 | 1,182.80 |
Inventories | 992.2 | 959.8 |
Deferred income taxes | 32 | 32.8 |
Other current assets | 43.3 | 43 |
Total current assets | 2,451.50 | 2,275.70 |
Property and equipment, at cost | 334.5 | 328 |
Accumulated depreciation | -224.1 | -224 |
Net property and equipment | 110.4 | 104 |
Goodwill | 344 | 342.1 |
Other assets | 144.3 | 139 |
Total assets | 3,050.20 | 2,860.80 |
Current liabilities: | ' | ' |
Accounts payable | 790.8 | 691.9 |
Accrued expenses | 191.3 | 210.5 |
Total current liabilities | 982.1 | 902.4 |
Long-term debt (Includes $200.0 and $145.0 at July 4, 2014 and January 3, 2014, respectively, associated with securitization facility) | 822.1 | 836 |
Other liabilities | 97.7 | 95 |
Total liabilities | 1,901.90 | 1,833.40 |
Stockholders’ equity: | ' | ' |
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,056,049 and 32,853,702 shares issued and outstanding at July 4, 2014 and January 3, 2014, respectively | 33.1 | 32.9 |
Capital surplus | 227.5 | 216.3 |
Retained earnings | 906.1 | 804.8 |
Accumulated other comprehensive income (loss): | ' | ' |
Foreign currency translation | 9 | 0.4 |
Unrecognized pension liability, net | -27.5 | -27.2 |
Unrealized gain on derivatives, net | 0.1 | 0.2 |
Total accumulated other comprehensive loss | -18.4 | -26.6 |
Total stockholders’ equity | 1,148.30 | 1,027.40 |
Total liabilities and stockholders’ equity | $3,050.20 | $2,860.80 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jul. 04, 2014 | Jan. 03, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable | $507.10 | $524.20 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,056,049 | 32,853,702 |
Common stock, shares outstanding | 33,056,049 | 32,853,702 |
Long-term debt | 822.1 | 836 |
Accounts receivable securitization facility [Member] | ' | ' |
Long-term debt | $200 | $145 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 |
Operating activities: | ' | ' |
Net income | $101.20 | $88.60 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation | 11.4 | 11.1 |
Stock-based compensation | 6.6 | 6.8 |
Amortization of intangible assets | 3.9 | 4.2 |
Amortization of deferred financing costs | 1.1 | 1.4 |
Accretion of debt discount | 0.1 | 2.5 |
Excess income tax benefit from employee stock plans | -3.6 | -1.2 |
Deferred income taxes | -3.8 | 10 |
Pension plan contributions | -8.3 | -6.5 |
Pension plan expenses | 2.3 | 8.4 |
Changes in current assets and liabilities, net | -22.4 | -11.6 |
Other, net | -1.8 | 0 |
Net cash provided by operating activities | 86.7 | 113.7 |
Investing activities: | ' | ' |
Capital expenditures, net | -17.1 | -17.9 |
Net cash used in investing activities | -17.1 | -17.9 |
Financing activities: | ' | ' |
Proceeds from borrowings | 625.4 | 1,186.90 |
Repayment of borrowings | -606.1 | -1,019.80 |
Retirement of Notes due 2014 | -32.3 | 0 |
Proceeds from stock options exercised | 4.2 | 7.4 |
Excess income tax benefit from employee stock plans | 3.6 | 1.2 |
Deferred financing costs | -0.5 | 0 |
Retirement of Notes due 2013 | 0 | -300 |
Other | -1.7 | -1.5 |
Net cash used in financing activities | -7.4 | -125.8 |
Increase (decrease) in cash and cash equivalents | 62.2 | -30 |
Effect of exchange rate on cash and cash equivalents | 1.9 | -2 |
Cash and cash equivalents at beginning of period | 57.3 | 89.4 |
Cash and cash equivalents at end of period | $121.40 | $57.40 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | ||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||||||||
Basis of presentation: Anixter International Inc. and its subsidiaries (collectively referred to as “Anixter” or the “Company”) are sometimes referred to in this Quarterly Report on Form 10-Q as “we”, “our”, “us”, or “ourselves.” The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the Condensed Consolidated Financial Statements for the periods shown. Certain prior period amounts have been reclassified to conform to the current year presentation. The results of operations of any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. | |||||||||||||||||
Recently issued and adopted accounting pronouncements: In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, updating guidance to limit the scope of the balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar arrangement. The guidance is effective for us beginning in fiscal year 2014. | |||||||||||||||||
While our derivatives are all subject to master netting arrangements, we present our assets and liabilities related to derivative instruments on a gross basis within the Condensed Consolidated Balance Sheets. The gross amount of our derivative assets and liabilities are immaterial. | |||||||||||||||||
Recently issued accounting pronouncements not yet adopted: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The update’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. Examples of the use of judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The update also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The update provides for two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. We are currently in the process of evaluating the transition methods and the impact of adoption of this ASU on our financial statements. | |||||||||||||||||
We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures. | |||||||||||||||||
Other, net: The following represents the components of “Other, net” as reflected in the Condensed Consolidated Statements of Comprehensive Income (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
July 4, | June 28, | July 4, | June 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Other, net: | |||||||||||||||||
Foreign exchange | $ | (1.9 | ) | $ | (2.9 | ) | $ | (12.0 | ) | $ | (4.7 | ) | |||||
Cash surrender value of life insurance policies | 0.5 | (0.8 | ) | 0.8 | (0.7 | ) | |||||||||||
Other | (1.2 | ) | — | (1.7 | ) | (0.3 | ) | ||||||||||
Total other, net | $ | (2.6 | ) | $ | (3.7 | ) | $ | (12.9 | ) | $ | (5.7 | ) | |||||
In the first quarter of 2014, the Venezuelan government changed its policy regarding the bolivar, which we believe will now require us to use the Complementary System for the Administration of Foreign Currency ("SICAD") rate of 49.0 bolivars to one U.S. Dollar ("USD") to repatriate cash from Venezuela. In the first quarter of 2014, the Argentina peso was also devalued from 6.5 pesos to one USD to approximately 8.0 pesos to one USD after the central bank scaled back its intervention in a bid to preserve USD cash reserves. As a result of these devaluations, we recorded foreign exchange losses in these two countries of $8.0 million in the first quarter of 2014. | |||||||||||||||||
Several of our subsidiaries conduct business in a currency other than the legal entity’s functional currency. Transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. The increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that is included in “Other, net” in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||
We purchase foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on our reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. Our strategy is to negotiate terms for our derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative perfectly offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). Our counterparties to foreign currency forward contracts have investment-grade credit ratings. We expect the creditworthiness of our counterparties to remain intact through the term of the transactions. We regularly monitor the creditworthiness of our counterparties to ensure no issues exist which could affect the value of the derivatives. | |||||||||||||||||
We do not hedge 100% of our foreign currency-denominated accounts. In addition, the results of hedging can vary significantly based on various factors, such as the timing of executing the foreign currency forward contracts versus the movement of the currencies as well as the fluctuations in the account balances throughout each reporting period. The fair value of the foreign currency forward contracts is based on the difference between the contract rate and the current exchange rate. The fair value of the foreign currency forward contracts is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy. At July 4, 2014 and January 3, 2014, foreign currency forward contracts were revalued at then-current foreign exchange rates with the changes in valuation reflected directly in “Other, net” in the Condensed Consolidated Statements of Comprehensive Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At July 4, 2014 and January 3, 2014, the gross notional amount of foreign currency forward contracts outstanding was approximately $178.8 million and $217.4 million, respectively. All of our foreign currency forward contracts are subject to master netting arrangements with our counterparties. As a result, at July 4, 2014 and January 3, 2014, the net notional amount of the foreign currency forward contracts outstanding was approximately $104.6 million and $152.0 million, respectively. | |||||||||||||||||
The combined effect of changes in both the equity and bond markets resulted in changes in the cash surrender value of our owned life insurance policies associated with our sponsored deferred compensation program. | |||||||||||||||||
Accumulated other comprehensive income (loss): We accumulated unrealized gains and losses in "Accumulated other comprehensive income (loss)" (“AOCI”) which are also reported in "Other comprehensive income" on the Condensed Consolidated Statement of Comprehensive Income. These include unrealized gains and losses related to our defined benefit obligations, certain immaterial derivative transactions that have been designated as cash flow hedges and foreign currency translation. See Note 4. "Pension Plans" for pension related amounts reclassified into net income. | |||||||||||||||||
Our investments in several subsidiaries are recorded in currencies other than the U.S. dollar. As these foreign currency denominated investments are translated at the end of each period during consolidation using period-end exchange rates, fluctuations of exchange rates between the foreign currency and the U.S. dollar increase or decrease the value of those investments. These fluctuations and the results of operations for foreign subsidiaries, where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the average exchange rates during the periods reported, while the assets and liabilities are translated using period-end exchange rates. The assets and liabilities-related translation adjustments are recorded as a separate component of AOCI, “Foreign currency translation." In addition, as our subsidiaries maintain investments denominated in currencies other than local currencies, exchange rate fluctuations will occur. Borrowings are raised in certain foreign currencies to minimize the exchange rate translation adjustment risk. |
INCOME_TAXES
INCOME TAXES | 6 Months Ended |
Jul. 04, 2014 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
The income tax provision for the second quarter of 2014 was $25.9 million compared to $24.7 million in the corresponding period of last year. Our effective tax rate for the second quarter of 2014 was 32.5% compared to 34.9% in the prior year period. During the second quarter of 2014, we recorded a net tax benefit of $2.0 million primarily related to the reversal of a deferred income tax valuation allowance in Europe. | |
The income tax provision for the six months ended July 4, 2014 was $42.7 million compared to $47.6 million in the corresponding period of last year. Our effective tax rate for the six months ended July 4, 2014 was 29.6% as compared to 34.9% in the prior year period. During the six months ended July 4, 2014, we recorded a net tax benefit of $6.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. As a result of the items mentioned above and changes in tax rates related to country mix of income, our effective tax rate was different from the statutory rate. |
DEBT
DEBT | 6 Months Ended | |||||||
Jul. 04, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
DEBT | ' | |||||||
DEBT | ||||||||
Debt is summarized below: | ||||||||
July 4, | January 3, | |||||||
2014 | 2014 | |||||||
(In millions) | ||||||||
Long-term debt: | ||||||||
Senior notes due 2019 | $ | 350 | $ | 350 | ||||
Senior notes due 2015 | 200 | 200 | ||||||
Accounts receivable securitization facility | 200 | 145 | ||||||
Revolving lines of credit | 68 | 101.5 | ||||||
Senior notes due 2014 | — | 32.1 | ||||||
Other | 4.1 | 7.4 | ||||||
Total long-term debt | $ | 822.1 | $ | 836 | ||||
At July 4, 2014, our total carrying value and estimated fair value of debt outstanding was $822.1 million and $862.5 million, respectively. This compares to a carrying value and estimated fair value at January 3, 2014 of $836.0 million and $867.9 million, respectively. The estimated fair value of our debt instruments is measured using observable market information which would be considered Level 2 inputs as described in the fair value accounting guidance on fair value measurements. Our weighted-average cost of borrowings was 4.6% and 4.9% for the three months ended July 4, 2014 and June 28, 2013, respectively, and 4.7% and 5.3% for the six months ended July 4, 2014 and June 28, 2013, respectively. | ||||||||
In the first quarter of 2014, we retired our Senior notes due 2014 upon maturity for $32.3 million. Available borrowings under existing long-term financing agreements were used to settle the maturity value. | ||||||||
In the first quarter of 2013, our Senior notes due 2013 matured and, pursuant to the terms of the indenture, we settled our conversion obligations up to the $300 million principal amount of the notes in cash. At the time of issuance of the notes, we entered into a bond hedge that reimbursed us for any above par value amounts due to holders of the notes at maturity. Available borrowings under long-term financing agreements were used to retire the Senior notes due 2013. | ||||||||
At issuance of the Senior notes due 2013, we also sold to the counterparty a warrant to purchase shares of our common stock at a current exercise price of $72.81, which could not be exercised prior to the maturity of the notes. Although the bond hedge matured with the notes on February 15, 2013, the warrant "exercise period" began on May 16, 2013 and expired daily over 40 full trading days ending July 15, 2013. Any excess amount above the warrant exercise price of $72.81 was settled in cash at our option. Because our stock price exceeded the exercise price during the exercise period, 5.4 million warrants were exercised, and on July 18, 2013, we paid $19.2 million in cash to settle all warrants exercised through July 15, 2013. The cash payment was recorded as a reduction to stockholders' equity. | ||||||||
Under our accounts receivable securitization program, we sell, on an ongoing basis without recourse, a portion of our accounts receivables originating in the United States to Anixter Receivables Corporation (“ARC”), which is considered a wholly-owned, bankruptcy-remote variable interest entity (“VIE”). We have the authority to direct the activities of the VIE and, as a result, we have concluded that we maintain control of the VIE, are the primary beneficiary (as defined by accounting guidance) and, therefore, consolidate the account balances of ARC. As of July 4, 2014 and January 3, 2014, $507.1 million and $524.2 million of our receivables were sold to ARC, respectively. ARC in turn assigns a collateral interest in these receivables to a financial institution for proceeds up to $300 million. The assets of ARC are not available to us until all obligations of ARC are satisfied in the event of bankruptcy or insolvency proceedings. | ||||||||
On May 30, 2014, our primary operating subsidiary, Anixter Inc., amended the Receivables Purchase Agreement governing its accounts receivable securitization program. The following key changes have been made to the program: | ||||||||
• | The liquidity termination date of the program will be May 2017 (formerly May 2015). | |||||||
• | The commitments are split 50%/50% (formerly 57-1/3% from J.P. Morgan and 42-2/3% from SunTrust). | |||||||
• | The purchasers have the option to delay funding by 35 days. | |||||||
• | Chariot has replaced J.P. Morgan as a Financial Institution and a committed purchaser; J.P. Morgan will continue to have a liquidity agreement in place with Chariot. | |||||||
• | One month LIBOR has been replaced by three month LIBOR. | |||||||
• | The renewed program carries an all-in drawn funding cost of LIBOR plus 80 basis points (previously LIBOR plus 95 basis points). | |||||||
• | Unused capacity fees decreased from 47.5 to 57.5 basis points to 40 to 50 basis points depending on utilization. | |||||||
All other material terms and conditions remain unchanged. |
PENSION_PLANS
PENSION PLANS | 6 Months Ended | |||||||||||||||||||||||
Jul. 04, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
PENSION PLANS | ' | |||||||||||||||||||||||
PENSION PLANS | ||||||||||||||||||||||||
We have various defined benefit and defined contribution pension plans. Our defined benefit pension plans are the plans in the United States, which consist of the Anixter Inc. Pension Plan, the Executive Benefit Plan and the Supplemental Executive Retirement Plan (“SERP”) (together the “Domestic Plans”) and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together the “Foreign Plans”). The majority of our defined benefit pension plans are non-contributory and cover substantially all full-time domestic employees and certain employees in other countries. Retirement benefits are provided based on compensation as defined in both the Domestic Plans and the Foreign Plans. Our policy is to fund all Domestic Plans as required by the Employee Retirement Income Security Act of 1974 (“ERISA”) and the Internal Revenue Service (“IRS”) and all Foreign Plans as required by applicable foreign laws. The Executive Benefit Plan and SERP are the only two plans that are unfunded. Assets in the various plans consist primarily of equity securities and fixed income investments. | ||||||||||||||||||||||||
In the fourth quarter of 2012, we took two actions related to the Anixter Inc. Pension Plan in the United States that reduced expenses and funding requirements. We offered a one-time lump sum payment option to terminated vested participants and we made changes to our existing U.S. defined benefit plan, as of December 31, 2013, that froze benefits provided to employees hired on or before June 1, 2004. As part of the transition to the new pension plan, we provided a one-time transition credit equal to five percent of pay for employees at least 50 years old as of December 31, 2013 and whose combined age and years of service equals 70 or more. The amount of the transition credit for employees eligible was credited in the first quarter of 2014 to the employee’s individual 401(k) account or deferred compensation account. Accordingly, in the fourth quarter of 2013, we recorded a $2.5 million defined contribution charge related to this funding. | ||||||||||||||||||||||||
Components of net periodic pension cost are as follows (in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Domestic (a) | Foreign | Total | ||||||||||||||||||||||
July 4, | June 28, | July 4, | June 28, | July 4, | June 28, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 1.2 | $ | 2 | $ | 1.5 | $ | 1.7 | $ | 2.7 | $ | 3.7 | ||||||||||||
Interest cost | 2.7 | 2.4 | 2.7 | 2.4 | 5.4 | 4.8 | ||||||||||||||||||
Expected return on plan assets | (3.4 | ) | (2.9 | ) | (3.2 | ) | (2.6 | ) | (6.6 | ) | (5.5 | ) | ||||||||||||
Net amortization (b) | (0.5 | ) | 0.8 | 0.3 | 0.4 | (0.2 | ) | 1.2 | ||||||||||||||||
Net periodic cost | $ | — | $ | 2.3 | $ | 1.3 | $ | 1.9 | $ | 1.3 | $ | 4.2 | ||||||||||||
Six Months Ended | ||||||||||||||||||||||||
Domestic (a) | Foreign | Total | ||||||||||||||||||||||
July 4, | June 28, | July 4, | June 28, | July 4, | June 28, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 2.4 | $ | 4.2 | $ | 3 | $ | 3.4 | $ | 5.4 | $ | 7.6 | ||||||||||||
Interest cost | 5.3 | 4.8 | 5.4 | 4.7 | 10.7 | 9.5 | ||||||||||||||||||
Expected return on plan assets | (6.9 | ) | (5.9 | ) | (6.4 | ) | (5.2 | ) | (13.3 | ) | (11.1 | ) | ||||||||||||
Net amortization (b) | (1.1 | ) | 1.6 | 0.6 | 0.8 | (0.5 | ) | 2.4 | ||||||||||||||||
Net periodic (benefit) cost | $ | (0.3 | ) | $ | 4.7 | $ | 2.6 | $ | 3.7 | $ | 2.3 | $ | 8.4 | |||||||||||
(a) Domestic service costs are lower in the three and six months ended July 4, 2014 as compared to the corresponding periods in the prior year as a result of the aforementioned actions we took in the fourth quarter of 2012. | ||||||||||||||||||||||||
(b) Reclassified into operating expenses from AOCI. |
SUMMARIZED_FINANCIAL_INFORMATI
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | 6 Months Ended | |||||||||||||||
Jul. 04, 2014 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | ' | |||||||||||||||
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | ||||||||||||||||
We guarantee, fully and unconditionally, substantially all of the debt of our subsidiaries, which include Anixter Inc., our primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than consolidated Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc.: | ||||||||||||||||
ANIXTER INC. | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
July 4, | January 3, | |||||||||||||||
2014 | 2014 | |||||||||||||||
(In millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Current assets | $ | 2,450.00 | $ | 2,275.10 | ||||||||||||
Property, equipment and capital leases, net | 121.4 | 115.6 | ||||||||||||||
Goodwill | 344 | 342.1 | ||||||||||||||
Other assets | 144.3 | 139.1 | ||||||||||||||
$ | 3,059.70 | $ | 2,871.90 | |||||||||||||
Liabilities and Stockholder’s Equity: | ||||||||||||||||
Current liabilities | $ | 981.7 | $ | 898.9 | ||||||||||||
Subordinated notes payable to parent | — | 1 | ||||||||||||||
Long-term debt | 836.8 | 851.3 | ||||||||||||||
Other liabilities | 94.9 | 93 | ||||||||||||||
Stockholder’s equity | 1,146.30 | 1,027.70 | ||||||||||||||
$ | 3,059.70 | $ | 2,871.90 | |||||||||||||
ANIXTER INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 4, | June 28, | July 4, | June 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Net sales | $ | 1,586.00 | $ | 1,579.50 | $ | 3,109.80 | $ | 3,070.40 | ||||||||
Operating income | $ | 93.8 | $ | 87 | $ | 180.9 | $ | 169.4 | ||||||||
Income before income taxes | $ | 80.8 | $ | 71.7 | $ | 146.1 | $ | 140.8 | ||||||||
Net income | $ | 54.5 | $ | 45.3 | $ | 102.7 | $ | 90.2 | ||||||||
Comprehensive income | $ | 69.3 | $ | 33.1 | $ | 110.9 | $ | 69.8 | ||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jul. 04, 2014 | |
Equity [Abstract] | ' |
STOCKHOLDERS' EQUITY | ' |
STOCKHOLDERS' EQUITY | |
At the end of the second quarter of 2014, there were approximately 1.9 million shares reserved for issuance under various incentive plans. Under these plans, we pay non-employee directors annual retainer fees and, at their election, meeting fees in the form of stock units. Employee and director stock units are included in common stock outstanding on the date of vesting, and stock options are included in common stock outstanding upon exercise by the participant. The fair value of employee stock options and units is amortized over the respective vesting period representing the requisite service period, generally three to four years for stock units and four years for stock options. Director stock units are expensed in the period in which they are granted, as these vest immediately. | |
During the three and six months ended July 4, 2014, we granted 1,817 and 126,815 stock units to employees, respectively, with a weighted-average grant-date fair value of $0.2 million and $13.6 million, respectively. During the three and six months ended July 4, 2014, we granted directors 4,586 and 9,499 stock units, respectively, with a weighted-average grant-date fair value of $0.5 million and $1.0 million, respectively. We exclude antidilutive stock options and units from the calculation of weighted-average shares for diluted earnings per share. For the second quarter of 2014 and 2013, the antidilutive stock options and units were immaterial. |
LEGAL_CONTINGENCIES
LEGAL CONTINGENCIES | 6 Months Ended |
Jul. 04, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
LEGAL CONTINGENCIES | ' |
LEGAL CONTINGENCIES | |
From time to time, we are party to legal proceedings and matters that arise in the ordinary course of business. As of July 4, 2014, we do not believe there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters has been incurred. However, the ultimate resolutions of these proceedings and matters are inherently unpredictable. As such, our financial condition and results of operations could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 6 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
BUSINESS SEGMENTS | ' | ||||||||||||||||
BUSINESS SEGMENTS | |||||||||||||||||
We are a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products, and OEM Supply fasteners and other small parts (“C” Class inventory components). We have identified Enterprise Cabling and Security Solutions (“ECS”), Electrical and Electronic Wire and Cable (“W&C”) and OEM Supply - Fasteners ("Fasteners") as reportable segments. We incur corporate expenses to obtain and coordinate financing, tax, information technology, legal and other related services, certain of which are rebilled to subsidiaries. These corporate expenses are allocated to the segments based primarily on projected sales and estimated use of time. Also, we have various corporate assets which are not allocated to the segments. Segment assets may not include jointly used assets or unallocated assets, but segment results include depreciation expense or other allocations related to those assets as such allocation is made for internal reporting. Interest expense and other non-operating items are not allocated to the segments or reviewed on a segment basis. Intercompany transactions are not significant. | |||||||||||||||||
Segment Financial Information | |||||||||||||||||
Segment information for the three and six months ended July 4, 2014 and June 28, 2013 are as follows (in millions): | |||||||||||||||||
Second Quarter of 2014 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 817.4 | $ | 525.5 | $ | 243.1 | $ | 1,586.00 | |||||||||
Operating income | 44.1 | 36.1 | 12.2 | 92.4 | |||||||||||||
Second Quarter of 2013 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 813.8 | $ | 530.6 | $ | 235.1 | $ | 1,579.50 | |||||||||
Operating income | 42 | 38.1 | 5.7 | 85.8 | |||||||||||||
Six Months of 2014 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 1,577.50 | $ | 1,039.70 | $ | 492.6 | $ | 3,109.80 | |||||||||
Operating income | 80.1 | 73 | 25 | 178.1 | |||||||||||||
Six Months of 2013 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 1,558.90 | $ | 1,048.40 | $ | 463.1 | $ | 3,070.40 | |||||||||
Operating income | 76.8 | 79.4 | 10.6 | 166.8 | |||||||||||||
Goodwill Assigned to Segments | |||||||||||||||||
The following table presents the changes in goodwill allocated to our reportable segments during the six months ended July 4, 2014 (in millions): | |||||||||||||||||
Reportable Segments | |||||||||||||||||
ECS | W&C | Fasteners | Total | ||||||||||||||
Balance at January 3, 2014 | $ | 162.5 | $ | 179.6 | $ | — | $ | 342.1 | |||||||||
Acquisition related (a) | — | 1.4 | — | 1.4 | |||||||||||||
Foreign currency translation | 1.7 | (1.2 | ) | — | 0.5 | ||||||||||||
Balance at July 4, 2014 | $ | 164.2 | $ | 179.8 | $ | — | $ | 344 | |||||||||
(a) | In the first quarter of 2014, we recorded an immaterial reclassification between goodwill and deferred tax liability related to the purchase price allocation for the acquisition of Jorvex, S.A. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||
Basis of presentation | ' | ||||||||||||||||
Basis of presentation: Anixter International Inc. and its subsidiaries (collectively referred to as “Anixter” or the “Company”) are sometimes referred to in this Quarterly Report on Form 10-Q as “we”, “our”, “us”, or “ourselves.” The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the Condensed Consolidated Financial Statements for the periods shown. Certain prior period amounts have been reclassified to conform to the current year presentation. The results of operations of any interim period are not necessarily indicative of the results that may be expected for a full fiscal year. | |||||||||||||||||
Recently issued and adopted accounting pronouncements | ' | ||||||||||||||||
Recently issued and adopted accounting pronouncements: In January 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2013-01, Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities, updating guidance to limit the scope of the balance sheet offsetting disclosures to derivatives, repurchase agreements and securities lending transactions to the extent they are offset in the financial statements or subject to an enforceable master netting arrangement or similar arrangement. The guidance is effective for us beginning in fiscal year 2014. | |||||||||||||||||
While our derivatives are all subject to master netting arrangements, we present our assets and liabilities related to derivative instruments on a gross basis within the Condensed Consolidated Balance Sheets. The gross amount of our derivative assets and liabilities are immaterial. | |||||||||||||||||
Description of New Accounting Pronouncements Not yet Adopted | ' | ||||||||||||||||
Recently issued accounting pronouncements not yet adopted: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The update’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under today’s guidance. Examples of the use of judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The update also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The update provides for two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. The guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016. Early adoption is not permitted. We are currently in the process of evaluating the transition methods and the impact of adoption of this ASU on our financial statements. | |||||||||||||||||
We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures. | |||||||||||||||||
Other, net | ' | ||||||||||||||||
Other, net: The following represents the components of “Other, net” as reflected in the Condensed Consolidated Statements of Comprehensive Income (in millions): | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
July 4, | June 28, | July 4, | June 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Other, net: | |||||||||||||||||
Foreign exchange | $ | (1.9 | ) | $ | (2.9 | ) | $ | (12.0 | ) | $ | (4.7 | ) | |||||
Cash surrender value of life insurance policies | 0.5 | (0.8 | ) | 0.8 | (0.7 | ) | |||||||||||
Other | (1.2 | ) | — | (1.7 | ) | (0.3 | ) | ||||||||||
Total other, net | $ | (2.6 | ) | $ | (3.7 | ) | $ | (12.9 | ) | $ | (5.7 | ) | |||||
In the first quarter of 2014, the Venezuelan government changed its policy regarding the bolivar, which we believe will now require us to use the Complementary System for the Administration of Foreign Currency ("SICAD") rate of 49.0 bolivars to one U.S. Dollar ("USD") to repatriate cash from Venezuela. In the first quarter of 2014, the Argentina peso was also devalued from 6.5 pesos to one USD to approximately 8.0 pesos to one USD after the central bank scaled back its intervention in a bid to preserve USD cash reserves. As a result of these devaluations, we recorded foreign exchange losses in these two countries of $8.0 million in the first quarter of 2014. | |||||||||||||||||
Several of our subsidiaries conduct business in a currency other than the legal entity’s functional currency. Transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. The increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that is included in “Other, net” in the Condensed Consolidated Statements of Comprehensive Income. | |||||||||||||||||
We purchase foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on our reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. Our strategy is to negotiate terms for our derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative perfectly offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). Our counterparties to foreign currency forward contracts have investment-grade credit ratings. We expect the creditworthiness of our counterparties to remain intact through the term of the transactions. We regularly monitor the creditworthiness of our counterparties to ensure no issues exist which could affect the value of the derivatives. | |||||||||||||||||
We do not hedge 100% of our foreign currency-denominated accounts. In addition, the results of hedging can vary significantly based on various factors, such as the timing of executing the foreign currency forward contracts versus the movement of the currencies as well as the fluctuations in the account balances throughout each reporting period. The fair value of the foreign currency forward contracts is based on the difference between the contract rate and the current exchange rate. The fair value of the foreign currency forward contracts is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy. At July 4, 2014 and January 3, 2014, foreign currency forward contracts were revalued at then-current foreign exchange rates with the changes in valuation reflected directly in “Other, net” in the Condensed Consolidated Statements of Comprehensive Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At July 4, 2014 and January 3, 2014, the gross notional amount of foreign currency forward contracts outstanding was approximately $178.8 million and $217.4 million, respectively. All of our foreign currency forward contracts are subject to master netting arrangements with our counterparties. As a result, at July 4, 2014 and January 3, 2014, the net notional amount of the foreign currency forward contracts outstanding was approximately $104.6 million and $152.0 million, respectively. | |||||||||||||||||
The combined effect of changes in both the equity and bond markets resulted in changes in the cash surrender value of our owned life insurance policies associated with our sponsored deferred compensation program. | |||||||||||||||||
Accumulated Other Comprehensive Income | ' | ||||||||||||||||
Accumulated other comprehensive income (loss): We accumulated unrealized gains and losses in "Accumulated other comprehensive income (loss)" (“AOCI”) which are also reported in "Other comprehensive income" on the Condensed Consolidated Statement of Comprehensive Income. These include unrealized gains and losses related to our defined benefit obligations, certain immaterial derivative transactions that have been designated as cash flow hedges and foreign currency translation. See Note 4. "Pension Plans" for pension related amounts reclassified into net income. | |||||||||||||||||
Our investments in several subsidiaries are recorded in currencies other than the U.S. dollar. As these foreign currency denominated investments are translated at the end of each period during consolidation using period-end exchange rates, fluctuations of exchange rates between the foreign currency and the U.S. dollar increase or decrease the value of those investments. These fluctuations and the results of operations for foreign subsidiaries, where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the average exchange rates during the periods reported, while the assets and liabilities are translated using period-end exchange rates. The assets and liabilities-related translation adjustments are recorded as a separate component of AOCI, “Foreign currency translation." In addition, as our subsidiaries maintain investments denominated in currencies other than local currencies, exchange rate fluctuations will occur. Borrowings are raised in certain foreign currencies to minimize the exchange rate translation adjustment risk. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Summary of Components of Other Net Reflected in Consolidated Statements of Comprehensive Income [Abstract] | ' | ||||||||||||||||
Schedule of Other Nonoperating Income, by Component | ' | ||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
July 4, | June 28, | July 4, | June 28, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Other, net: | |||||||||||||||||
Foreign exchange | $ | (1.9 | ) | $ | (2.9 | ) | $ | (12.0 | ) | $ | (4.7 | ) | |||||
Cash surrender value of life insurance policies | 0.5 | (0.8 | ) | 0.8 | (0.7 | ) | |||||||||||
Other | (1.2 | ) | — | (1.7 | ) | (0.3 | ) | ||||||||||
Total other, net | $ | (2.6 | ) | $ | (3.7 | ) | $ | (12.9 | ) | $ | (5.7 | ) |
DEBT_Tables
DEBT (Tables) | 6 Months Ended | |||||||
Jul. 04, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Debt | ' | |||||||
Debt is summarized below: | ||||||||
July 4, | January 3, | |||||||
2014 | 2014 | |||||||
(In millions) | ||||||||
Long-term debt: | ||||||||
Senior notes due 2019 | $ | 350 | $ | 350 | ||||
Senior notes due 2015 | 200 | 200 | ||||||
Accounts receivable securitization facility | 200 | 145 | ||||||
Revolving lines of credit | 68 | 101.5 | ||||||
Senior notes due 2014 | — | 32.1 | ||||||
Other | 4.1 | 7.4 | ||||||
Total long-term debt | $ | 822.1 | $ | 836 | ||||
PENSION_PLANS_Tables
PENSION PLANS (Tables) | 6 Months Ended | |||||||||||||||||||||||
Jul. 04, 2014 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Components of Net Periodic Cost | ' | |||||||||||||||||||||||
Components of net periodic pension cost are as follows (in millions): | ||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||
Domestic (a) | Foreign | Total | ||||||||||||||||||||||
July 4, | June 28, | July 4, | June 28, | July 4, | June 28, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 1.2 | $ | 2 | $ | 1.5 | $ | 1.7 | $ | 2.7 | $ | 3.7 | ||||||||||||
Interest cost | 2.7 | 2.4 | 2.7 | 2.4 | 5.4 | 4.8 | ||||||||||||||||||
Expected return on plan assets | (3.4 | ) | (2.9 | ) | (3.2 | ) | (2.6 | ) | (6.6 | ) | (5.5 | ) | ||||||||||||
Net amortization (b) | (0.5 | ) | 0.8 | 0.3 | 0.4 | (0.2 | ) | 1.2 | ||||||||||||||||
Net periodic cost | $ | — | $ | 2.3 | $ | 1.3 | $ | 1.9 | $ | 1.3 | $ | 4.2 | ||||||||||||
Six Months Ended | ||||||||||||||||||||||||
Domestic (a) | Foreign | Total | ||||||||||||||||||||||
July 4, | June 28, | July 4, | June 28, | July 4, | June 28, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||
Service cost | $ | 2.4 | $ | 4.2 | $ | 3 | $ | 3.4 | $ | 5.4 | $ | 7.6 | ||||||||||||
Interest cost | 5.3 | 4.8 | 5.4 | 4.7 | 10.7 | 9.5 | ||||||||||||||||||
Expected return on plan assets | (6.9 | ) | (5.9 | ) | (6.4 | ) | (5.2 | ) | (13.3 | ) | (11.1 | ) | ||||||||||||
Net amortization (b) | (1.1 | ) | 1.6 | 0.6 | 0.8 | (0.5 | ) | 2.4 | ||||||||||||||||
Net periodic (benefit) cost | $ | (0.3 | ) | $ | 4.7 | $ | 2.6 | $ | 3.7 | $ | 2.3 | $ | 8.4 | |||||||||||
(a) Domestic service costs are lower in the three and six months ended July 4, 2014 as compared to the corresponding periods in the prior year as a result of the aforementioned actions we took in the fourth quarter of 2012. | ||||||||||||||||||||||||
(b) Reclassified into operating expenses from AOCI. |
SUMMARIZED_FINANCIAL_INFORMATI1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. (Tables) | 6 Months Ended | |||||||||||||||
Jul. 04, 2014 | ||||||||||||||||
Text Block [Abstract] | ' | |||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ' | |||||||||||||||
ANIXTER INC. | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
July 4, | January 3, | |||||||||||||||
2014 | 2014 | |||||||||||||||
(In millions) | ||||||||||||||||
Assets: | ||||||||||||||||
Current assets | $ | 2,450.00 | $ | 2,275.10 | ||||||||||||
Property, equipment and capital leases, net | 121.4 | 115.6 | ||||||||||||||
Goodwill | 344 | 342.1 | ||||||||||||||
Other assets | 144.3 | 139.1 | ||||||||||||||
$ | 3,059.70 | $ | 2,871.90 | |||||||||||||
Liabilities and Stockholder’s Equity: | ||||||||||||||||
Current liabilities | $ | 981.7 | $ | 898.9 | ||||||||||||
Subordinated notes payable to parent | — | 1 | ||||||||||||||
Long-term debt | 836.8 | 851.3 | ||||||||||||||
Other liabilities | 94.9 | 93 | ||||||||||||||
Stockholder’s equity | 1,146.30 | 1,027.70 | ||||||||||||||
$ | 3,059.70 | $ | 2,871.90 | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | |||||||||||||||
ANIXTER INC. | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
July 4, | June 28, | July 4, | June 28, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
(In millions) | ||||||||||||||||
Net sales | $ | 1,586.00 | $ | 1,579.50 | $ | 3,109.80 | $ | 3,070.40 | ||||||||
Operating income | $ | 93.8 | $ | 87 | $ | 180.9 | $ | 169.4 | ||||||||
Income before income taxes | $ | 80.8 | $ | 71.7 | $ | 146.1 | $ | 140.8 | ||||||||
Net income | $ | 54.5 | $ | 45.3 | $ | 102.7 | $ | 90.2 | ||||||||
Comprehensive income | $ | 69.3 | $ | 33.1 | $ | 110.9 | $ | 69.8 | ||||||||
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 6 Months Ended | ||||||||||||||||
Jul. 04, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
Segment information for the three and six months ended July 4, 2014 and June 28, 2013 are as follows (in millions): | |||||||||||||||||
Second Quarter of 2014 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 817.4 | $ | 525.5 | $ | 243.1 | $ | 1,586.00 | |||||||||
Operating income | 44.1 | 36.1 | 12.2 | 92.4 | |||||||||||||
Second Quarter of 2013 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 813.8 | $ | 530.6 | $ | 235.1 | $ | 1,579.50 | |||||||||
Operating income | 42 | 38.1 | 5.7 | 85.8 | |||||||||||||
Six Months of 2014 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 1,577.50 | $ | 1,039.70 | $ | 492.6 | $ | 3,109.80 | |||||||||
Operating income | 80.1 | 73 | 25 | 178.1 | |||||||||||||
Six Months of 2013 | ECS | W&C | Fasteners | Total | |||||||||||||
Net sales | $ | 1,558.90 | $ | 1,048.40 | $ | 463.1 | $ | 3,070.40 | |||||||||
Operating income | 76.8 | 79.4 | 10.6 | 166.8 | |||||||||||||
Changes in Goodwill | ' | ||||||||||||||||
The following table presents the changes in goodwill allocated to our reportable segments during the six months ended July 4, 2014 (in millions): | |||||||||||||||||
Reportable Segments | |||||||||||||||||
ECS | W&C | Fasteners | Total | ||||||||||||||
Balance at January 3, 2014 | $ | 162.5 | $ | 179.6 | $ | — | $ | 342.1 | |||||||||
Acquisition related (a) | — | 1.4 | — | 1.4 | |||||||||||||
Foreign currency translation | 1.7 | (1.2 | ) | — | 0.5 | ||||||||||||
Balance at July 4, 2014 | $ | 164.2 | $ | 179.8 | $ | — | $ | 344 | |||||||||
(a) | In the first quarter of 2014, we recorded an immaterial reclassification between goodwill and deferred tax liability related to the purchase price allocation for the acquisition of Jorvex, S.A. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Components of Other Net Reflected in Consolidated Statements of Comprehensive Income (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 |
Summary of Components of Other Net Reflected in Consolidated Statements of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Foreign exchange | ($1.90) | ($2.90) | ($12) | ($4.70) |
Cash Surrender Value of Life Insurance Policies | 0.5 | -0.8 | 0.8 | -0.7 |
Other | -1.2 | 0 | -1.7 | -0.3 |
Other, net | ($2.60) | ($3.70) | ($12.90) | ($5.70) |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||||||
In Millions, unless otherwise specified | Apr. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jan. 03, 2014 | Jul. 04, 2014 | Jan. 03, 2014 | Apr. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 |
gross [Member] | gross [Member] | Net [Member] | Net [Member] | Venezuela bolivar [Member] | Argentina Peso [Member] | Argentina Peso [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign currency exchange rate | ' | ' | ' | ' | ' | ' | 49 | 8 | 6.5 |
Foreign exchange losses due to devaluation | $8 | ' | ' | ' | ' | ' | ' | ' | ' |
Rate of foreign currency denominated accounts not hedged | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | $178.80 | $217.40 | $104.60 | $152 | ' | ' | ' |
INCOME_TAXES_Additional_inform
INCOME TAXES - Additional information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Income tax provision | $25.90 | $24.70 | $42.70 | $47.60 |
Effective income tax rate | 32.50% | 34.90% | 29.60% | 34.90% |
Income Loss From Continuing Operations Tax Benefit Related To Reversal Of Valuation Allowance | $2 | ' | $6.90 | ' |
DEBT_Debt_Detail
DEBT- Debt (Detail) (USD $) | Jul. 04, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $822.10 | $836 |
Senior notes due 2019 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 350 | 350 |
Senior notes due 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 200 | 200 |
Accounts receivable securitization facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 200 | 145 |
Revolving Credit Facility [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 68 | 101.5 |
Senior notes due 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | 0 | 32.1 |
Other debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $4.10 | $7.40 |
DEBT_Additional_Information_De
DEBT - Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended | 3 Months Ended | 6 Months Ended | ||||
In Millions, unless otherwise specified | Jul. 18, 2013 | Jul. 15, 2013 | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 | Jan. 03, 2014 | Sep. 27, 2013 |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | ' | $822.10 | ' | $822.10 | ' | $836 | ' |
Long-term debt, fair value | ' | ' | 862.5 | ' | 862.5 | ' | 867.9 | ' |
Weighted average cost of borrowings | ' | ' | 4.60% | 4.90% | 4.70% | 5.30% | ' | ' |
Retirement of Notes due 2014 | ' | ' | ' | ' | 32.3 | 0 | ' | ' |
Retirement of Notes due 2013 | ' | ' | ' | ' | 0 | 300 | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | ' | 72.81 | ' | ' | ' | ' | ' | ' |
Warrant exercisable period | ' | '40 days | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | ' | ' | ' | ' | ' | ' | 5.4 |
Payments for Repurchase of Warrants | 19.2 | ' | ' | ' | ' | ' | ' | ' |
Receivables Sold | ' | ' | 507.1 | ' | 507.1 | ' | 524.2 | ' |
Line of credit facility maximum borrowing capacity | ' | ' | $300 | ' | $300 | ' | ' | ' |
Funding delay | ' | ' | '35 days | ' | ' | ' | ' | ' |
Prior terms [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
axe_UnusedCapacityFeesUtilizationDependentLowRange | ' | ' | 0.48% | ' | ' | ' | ' | ' |
axe_UnusedCapacityFeesUtilizationDependentHighRange | ' | ' | 0.58% | ' | ' | ' | ' | ' |
New terms [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
axe_UnusedCapacityFeesUtilizationDependentLowRange | ' | ' | 0.40% | ' | ' | ' | ' | ' |
axe_UnusedCapacityFeesUtilizationDependentHighRange | ' | ' | 0.50% | ' | ' | ' | ' | ' |
Prior basis points [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | 0.80% | ' | ' | ' | ' | ' |
New basis points [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Basis Spread on Variable Rate | ' | ' | 0.95% | ' | ' | ' | ' | ' |
JP Morgan [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Current debt commitments split | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Previous debt commitments split | ' | ' | 57.33% | ' | ' | ' | ' | ' |
Suntrust [Member] | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Current debt commitments split | ' | ' | 50.00% | ' | ' | ' | ' | ' |
Previous debt commitments split | ' | ' | 42.67% | ' | ' | ' | ' | ' |
PENSION_PLANS_Additional_Infor
PENSION PLANS - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 03, 2014 | Jul. 04, 2014 | Jan. 03, 2014 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
General discussion of pension and other postretirement benefits | ' | 'We have various defined benefit and defined contribution pension plans. Our defined benefit pension plans are the plans in the United States, which consist of the Anixter Inc. Pension Plan, the Executive Benefit Plan and the Supplemental Executive Retirement Plan (“SERPâ€) (together the “Domestic Plansâ€) and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together the “Foreign Plansâ€). The majority of our defined benefit pension plans are non-contributory and cover substantially all full-time domestic employees and certain employees in other countries. Retirement benefits are provided based on compensation as defined in both the Domestic Plans and the Foreign Plans. Our policy is to fund all Domestic Plans as required by the Employee Retirement Income Security Act of 1974 (“ERISAâ€) and the Internal Revenue Service (“IRSâ€) and all Foreign Plans as required by applicable foreign laws. The Executive Benefit Plan and SERP are the only two plans that are unfunded. Assets in the various plans consist primarily of equity securities and fixed income investments.In the fourth quarter of 2012, we took two actions related to the Anixter Inc. Pension Plan in the United States that reduced expenses and funding requirements. We offered a one-time lump sum payment option to terminated vested participants and we made changes to our existing U.S. defined benefit plan, as of December 31, 2013, that froze benefits provided to employees hired on or before June 1, 2004. As part of the transition to the new pension plan, we provided a one-time transition credit equal to five percent of pay for employees at least 50 years old as of December 31, 2013 and whose combined age and years of service equals 70 or more. The amount of the transition credit for employees eligible was credited in the first quarter of 2014 to the employee’s individual 401(k) account or deferred compensation account. Accordingly, in the fourth quarter of 2013, we recorded a $2.5 million defined contribution charge related to this funding. | ' |
Percentofpayofonetimetransitioncredit | 5.00% | ' | 5.00% |
Agerequiredtoreceivedtransitioncredit | ' | ' | '50 years |
Combinedageandyearsofservicerequiredtoreceivetransitioncredit | ' | ' | '70 years |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $2.50 | ' | ' |
PENSION_PLANS_Components_of_Ne
PENSION PLANS - Components of Net Periodic Cost (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Millions, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | $2.70 | $3.70 | $5.40 | $7.60 | ||||
Interest cost | 5.4 | 4.8 | 10.7 | 9.5 | ||||
Expected return on plan assets | -6.6 | -5.5 | -13.3 | -11.1 | ||||
Net amortization | -0.2 | [1] | 1.2 | [1] | -0.5 | [1] | 2.4 | [1] |
Net periodic cost | 1.3 | 4.2 | 2.3 | 8.4 | ||||
Pension Plans, Domestic [Member] | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 1.2 | [2] | 2 | [2] | 2.4 | [2] | 4.2 | [2] |
Interest cost | 2.7 | [2] | 2.4 | [2] | 5.3 | [2] | 4.8 | [2] |
Expected return on plan assets | -3.4 | -2.9 | -6.9 | -5.9 | ||||
Net amortization | -0.5 | [1] | 0.8 | [1] | -1.1 | [1] | 1.6 | [1] |
Net periodic cost | 0 | 2.3 | -0.3 | 4.7 | ||||
Pension Plans, Foreign [Member] | ' | ' | ' | ' | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' | ||||
Service cost | 1.5 | 1.7 | 3 | 3.4 | ||||
Interest cost | 2.7 | 2.4 | 5.4 | 4.7 | ||||
Expected return on plan assets | -3.2 | -2.6 | -6.4 | -5.2 | ||||
Net amortization | 0.3 | [1] | 0.4 | [1] | 0.6 | [1] | 0.8 | [1] |
Net periodic cost | $1.30 | $1.90 | $2.60 | $3.70 | ||||
[1] | (b) Reclassified into operating expenses from AOCI. | |||||||
[2] | (a) Domestic service costs are lower in the three and six months ended July 4, 2014 as compared to the corresponding periods in the prior year as a result of the aforementioned actions we took in the fourth quarter of 2012. |
SUMMARIZED_FINANCIAL_INFORMATI2
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. - Additional Information (Detail) | 6 Months Ended |
Jul. 04, 2014 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' |
Description of guarantees given by parent company | 'We guarantee, fully and unconditionally, substantially all of the debt of our subsidiaries, which include Anixter Inc., our primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than consolidated Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc.: |
SUMMARIZED_FINANCIAL_INFORMATI3
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED BALANCE SHEETS (Details) (USD $) | Jul. 04, 2014 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Assets: | ' | ' |
Current assets | $2,451.50 | $2,275.70 |
Property, equipment and capital leases, net | 110.4 | 104 |
Goodwill | 344 | 342.1 |
Other assets | 144.3 | 139 |
Total assets | 3,050.20 | 2,860.80 |
Liabilities and Equity: | ' | ' |
Current liabilities | 982.1 | 902.4 |
Long-term debt | 822.1 | 836 |
Other liabilities | 97.7 | 95 |
Stockholder's equity | 1,148.30 | 1,027.40 |
Total liabilities and stockholders’ equity | 3,050.20 | 2,860.80 |
Anixter Inc. [Member] | ' | ' |
Assets: | ' | ' |
Current assets | 2,450 | 2,275.10 |
Property, equipment and capital leases, net | 121.4 | 115.6 |
Goodwill | 344 | 342.1 |
Other assets | 144.3 | 139.1 |
Total assets | 3,059.70 | 2,871.90 |
Liabilities and Equity: | ' | ' |
Current liabilities | 981.7 | 898.9 |
Subordinated notes payable to parent | 0 | 1 |
Long-term debt | 836.8 | 851.3 |
Other liabilities | 94.9 | 93 |
Stockholder's equity | 1,146.30 | 1,027.70 |
Total liabilities and stockholders’ equity | $3,059.70 | $2,871.90 |
SUMMARIZED_FINANCIAL_INFORMATI4
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | $1,586 | $1,579.50 | $3,109.80 | $3,070.40 |
Operating income | 92.4 | 85.8 | 178.1 | 166.8 |
Income before income taxes | 79.7 | 70.8 | 143.9 | 136.2 |
Net income | 53.8 | 46.1 | 101.2 | 88.6 |
Comprehensive income | 68.6 | 33.9 | 109.4 | 68.2 |
Anixter Inc. [Member] | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net sales | 1,586 | 1,579.50 | 3,109.80 | 3,070.40 |
Operating income | 93.8 | 87 | 180.9 | 169.4 |
Income before income taxes | 80.8 | 71.7 | 146.1 | 140.8 |
Net income | 54.5 | 45.3 | 102.7 | 90.2 |
Comprehensive income | $69.30 | $33.10 | $110.90 | $69.80 |
STOCKHOLDERS_EQUITY_Additional
STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $) | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 | Jul. 04, 2014 |
In Millions, except Share data, unless otherwise specified | Stock Option [Member] | Minimum [Member] | Maximum [Member] | Employee stock units [Member] | Employee stock units [Member] | Director Stock Units [Member] | Director Stock Units [Member] | |
Stock Units [Member] | Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Number of shares reserved for issuance under various incentive plans | 1,900,000 | ' | ' | ' | ' | ' | ' | ' |
Vesting period over which fair value is amortized | ' | '4 years | '3 years | '4 years | ' | ' | ' | ' |
Number of stock units granted | ' | ' | ' | ' | 1,817 | 126,815 | 4,586 | 9,499 |
Weighted-average grant-date fair value | ' | ' | ' | ' | $0.20 | $13.60 | $0.50 | $1 |
BUSINESS_SEGMENTS_Segment_Info
BUSINESS SEGMENTS - Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Jul. 04, 2014 | Jun. 28, 2013 | Jul. 04, 2014 | Jun. 28, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | $1,586 | $1,579.50 | $3,109.80 | $3,070.40 |
Operating income | 92.4 | 85.8 | 178.1 | 166.8 |
Enterprise Cabling And Security [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 817.4 | 813.8 | 1,577.50 | 1,558.90 |
Operating income | 44.1 | 42 | 80.1 | 76.8 |
Wire And Cable [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 525.5 | 530.6 | 1,039.70 | 1,048.40 |
Operating income | 36.1 | 38.1 | 73 | 79.4 |
Fasteners [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net sales | 243.1 | 235.1 | 492.6 | 463.1 |
Operating income | $12.20 | $5.70 | $25 | $10.60 |
BUSINESS_SEGMENTS_Changes_in_G
BUSINESS SEGMENTS - Changes in Goodwill (Detail) (USD $) | 6 Months Ended | |
In Millions, unless otherwise specified | Jul. 04, 2014 | |
Goodwill [Roll Forward] | ' | |
Balance at January 3, 2014 | $342.10 | |
Goodwill, Purchase Accounting Adjustments | 1.4 | [1] |
Foreign currency translation | 0.5 | |
Balance at July 4, 2014 | 344 | |
Enterprise Cabling And Security [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance at January 3, 2014 | 162.5 | |
Goodwill, Purchase Accounting Adjustments | 0 | [1] |
Foreign currency translation | 1.7 | |
Balance at July 4, 2014 | 164.2 | |
Wire And Cable [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance at January 3, 2014 | 179.6 | |
Goodwill, Purchase Accounting Adjustments | 1.4 | [1] |
Foreign currency translation | -1.2 | |
Balance at July 4, 2014 | 179.8 | |
Fasteners [Member] | ' | |
Goodwill [Roll Forward] | ' | |
Balance at January 3, 2014 | 0 | |
Goodwill, Purchase Accounting Adjustments | 0 | [1] |
Foreign currency translation | 0 | |
Balance at July 4, 2014 | $0 | |
[1] | (a)In the first quarter of 2014, we recorded an immaterial reclassification between goodwill and deferred tax liability related to the purchase price allocation for the acquisition of Jorvex, S.A. |