Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jan. 02, 2015 | Feb. 10, 2015 | Jul. 04, 2014 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 2-Jan-15 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AXE | ||
Entity Registrant Name | ANIXTER INTERNATIONAL INC | ||
Entity Central Index Key | 52795 | ||
Current Fiscal Year End Date | -1 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $2,814,143,258 | ||
Entity Common Stock, Shares Outstanding | 32,865,504 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Net sales | $6,445.50 | $6,226.50 | $6,253.10 |
Cost of goods sold | 4,977.10 | 4,803.80 | 4,844.40 |
Gross profit | 1,468.40 | 1,422.70 | 1,408.70 |
Operating expenses | 1,107.50 | 1,066.20 | 1,077.70 |
Impairment of goodwill and long-lived assets | 0 | 1.7 | 48.5 |
Operating income | 360.9 | 354.8 | 282.5 |
Other expense: | |||
Interest expense | -48.1 | -47.4 | -59.7 |
Other, net | -18 | -11.2 | -13.2 |
Income before income taxes | 294.8 | 296.2 | 209.6 |
Income tax expense | 100 | 95.7 | 84.8 |
Net income | $194.80 | $200.50 | $124.80 |
Basic: | |||
Net income (in dollars per share) | $5.90 | $6.12 | $3.77 |
Diluted: | |||
Net income (in dollars per share) | $5.84 | $6.04 | $3.69 |
Basic weighted-average common shares outstanding | 33 | 32.8 | 33.1 |
Effect of dilutive securities: | |||
Stock options and units (in shares) | 0.3 | 0.3 | 0.3 |
Diluted weighted-average common shares outstanding (in shares) | 33.3 | 33.2 | 33.8 |
Dividend declared per common share (in dollars per share) | $0 | $5 | $4.50 |
Convertible notes due 2013 [Member] | |||
Effect of dilutive securities: | |||
Convertible notes due (in shares) | 0 | 0.1 | 0.4 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Net income | $194.80 | $200.50 | $124.80 |
Other comprehensive (loss) income: | |||
Foreign currency translation | -59.5 | -15 | 15.9 |
Changes in unrealized pension cost, net of tax | -51.8 | 40.2 | 17.9 |
Changes in fair market value of derivatives, net of tax | -0.1 | 0 | -0.1 |
Other comprehensive (loss) income | -111.4 | 25.2 | 33.7 |
Comprehensive income | $83.40 | $225.70 | $158.50 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $92 | $57.30 |
Accounts receivable (Includes $548.5 and $524.2 at January 2, 2015 and January 3, 2014, respectively, associated with securitization facility) | 1,329.20 | 1,182.80 |
Inventories | 1,072.80 | 959.8 |
Deferred income taxes | 33.7 | 32.8 |
Other current assets | 62.1 | 43 |
Total current assets | 2,589.80 | 2,275.70 |
Property and equipment, at cost | 336.8 | 328 |
Accumulated depreciation | -215.8 | -224 |
Net property and equipment | 121 | 104 |
Goodwill | 582.3 | 342.1 |
Other assets | 293.4 | 134.1 |
Total assets | 3,586.50 | 2,855.90 |
Current liabilities: | ||
Accounts payable | 831.3 | 691.9 |
Accrued expenses | 199.2 | 210.5 |
Total current liabilities | 1,030.50 | 902.4 |
Long-term debt (Includes $65.0 and $145.0 at January 2, 2015 and January 3, 2014 respectively, associated with securitization facility) | 1,207.70 | 831.1 |
Other liabilities | 215.3 | 95 |
Total liabilities | 2,453.50 | 1,828.50 |
Stockholders’ equity: | ||
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,141,950 and 32,853,702 shares issued and outstanding at January 2, 2015 and January 3, 2014, respectively | 33.1 | 32.9 |
Capital surplus | 238.2 | 216.3 |
Retained earnings | 999.7 | 804.8 |
Accumulated other comprehensive loss: | ||
Foreign currency translation | -59.1 | 0.4 |
Unrecognized pension liability, net | -79 | -27.2 |
Unrealized gain on derivatives, net | 0.1 | 0.2 |
Total accumulated other comprehensive loss | -138 | -26.6 |
Total stockholders’ equity | 1,133 | 1,027.40 |
Total liabilities and stockholders’ equity | $3,586.50 | $2,855.90 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Millions, except Share data, unless otherwise specified | ||
Accounts receivable | $548.50 | $524.20 |
Common stock, par value | $1 | $1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,141,950 | 32,853,702 |
Common stock, shares outstanding | 33,141,950 | 32,853,702 |
Long-term Debt | 1,207.70 | 831.1 |
Accounts receivable securitization facility [Member] | ||
Long-term Debt | $65 | $145 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Operating activities: | |||
Net income | $194.80 | $200.50 | $124.80 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Deferred income taxes | 25.7 | 22.3 | -9.4 |
Depreciation | 24 | 22.1 | 22.5 |
Stock-based compensation | 13.8 | 13.6 | 14.6 |
Amortization of intangible assets | 11.7 | 8 | 10 |
Accretion of debt discount | 2.3 | 3.7 | 18.5 |
Excess income tax benefit from employee stock plans | -5.8 | -1.6 | -3.1 |
Amortization of deferred financing costs | 0 | 1.7 | 2.5 |
Pension plan contributions (including settlements) | -16.8 | -15.3 | -57.4 |
Pension plan expenses | 4.6 | 16.7 | 41 |
Impairment of goodwill and long-lived assets | 0 | 1.7 | 48.5 |
Changes in current assets and liabilities: | |||
Accounts receivable | -102.9 | 36.9 | -23.4 |
Inventories | -49.6 | 96.9 | 42.9 |
Accounts payable | 54.9 | -19.9 | -4.5 |
Other current assets and liabilities, net | -49 | -53.5 | -86.3 |
Other, net | -3.5 | 0.7 | 1.7 |
Net cash provided by operating activities | 104.2 | 334.5 | 142.9 |
Investing activities: | |||
Acquisition of businesses, net of cash acquired | -418.4 | 0 | -55.3 |
Capital expenditures, net | -40.3 | -32.2 | -34.2 |
Net cash used in investing activities | -458.7 | -32.2 | -89.5 |
Financing activities: | |||
Proceeds from borrowings | 1,550.40 | 1,761.20 | 1,339 |
Repayments of borrowings | -1,734.20 | -1,608.90 | -1,548.30 |
Proceeds from Notes due 2021 | 394 | 0 | 0 |
Proceeds from term loan, net of $1.2 million repayment | 198.8 | 0 | 0 |
Retirement of Notes due 2014 | -32.3 | 0 | 0 |
Proceeds from stock options exercised | 7.2 | 8.1 | 3.4 |
Excess income tax benefit from employee stock plans | 5.8 | 1.6 | 3.1 |
Deferred financing costs | -2.3 | -1.2 | -1.5 |
Retirement of Notes due 2013 | 0 | -300 | 0 |
Payment of special cash dividend | 0 | -165.7 | -151.4 |
Payments for repurchase of warrants | 0 | -19.2 | 0 |
Proceeds from issuance of Notes due 2019 | 0 | 0 | 343.9 |
Purchases of common stock for treasury | 0 | 0 | -59.2 |
Other, net | -1.7 | 0 | 2.2 |
Net cash provided by (used in) financing activities | 385.7 | -324.1 | -68.8 |
Cash and Cash Equivalents, Period Increase (Decrease) | 31.2 | -21.8 | -15.4 |
Effect of exchange rate changes on cash balances | 3.5 | -10.3 | -1.3 |
Cash and cash equivalents at beginning of period | 57.3 | 89.4 | 106.1 |
Cash and cash equivalents at end of period | 92 | 57.3 | 89.4 |
Term loan [Member] | |||
Financing activities: | |||
Repayments of borrowings | -1.2 | ||
Deferred financing costs | ($0.70) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss |
In Millions, except Share data, unless otherwise specified | |||||
Beginning Balance at Dec. 30, 2011 | $1,001.20 | $33.20 | $196.50 | $857 | ($85.50) |
Beginning Balance, Shares at Dec. 30, 2011 | 33,200,000 | ||||
Dividend declared per common share (in dollars per share) | $4.50 | ||||
Net income | 124.8 | 124.8 | |||
Other comprehensive income (loss): | |||||
Foreign currency translation | 15.9 | 15.9 | |||
Changes in unrealized pension cost, net of tax | 17.9 | 17.9 | |||
Changes in fair market value of derivatives | -0.1 | -0.1 | |||
Special dividend declared on common stock | -153.1 | -153.1 | |||
Dividend forfeited on common stock | 0.1 | 0.1 | |||
Payments for repurchase of warrants | 0 | ||||
Purchase and retirement of treasury stock | -59.2 | -1 | -58.2 | ||
Purchase and retirement of treasury stock, shares | -1,000,000 | -1,000,000 | |||
Stock-based compensation | 14.6 | 14.6 | |||
Issuance of common stock and related tax benefits | 7.8 | 0.3 | 7.5 | ||
Issuance of common stock and related tax benefits, shares | 300,000 | ||||
Ending Balance at Dec. 28, 2012 | 969.9 | 32.5 | 218.6 | 770.6 | -51.8 |
Ending Balance, Shares at Dec. 28, 2012 | 32,500,000 | ||||
Dividend declared per common share (in dollars per share) | $5 | ||||
Net income | 200.5 | 200.5 | |||
Other comprehensive income (loss): | |||||
Foreign currency translation | -15 | -15 | |||
Changes in unrealized pension cost, net of tax | 40.2 | 40.2 | |||
Changes in fair market value of derivatives | 0 | ||||
Special dividend declared on common stock | -166.5 | -166.5 | |||
Dividend forfeited on common stock | 0.2 | 0.2 | |||
Payments for repurchase of warrants | -19.2 | -19.2 | |||
Stock-based compensation | 13.6 | 13.6 | |||
Issuance of common stock and related tax benefits | 3.7 | 0.4 | 3.3 | ||
Issuance of common stock and related tax benefits, shares | 400,000 | ||||
Ending Balance at Jan. 03, 2014 | 1,027.40 | 32.9 | 216.3 | 804.8 | -26.6 |
Ending Balance, Shares at Jan. 03, 2014 | 32,853,702 | 32,900,000 | |||
Dividend declared per common share (in dollars per share) | $0 | ||||
Net income | 194.8 | 194.8 | |||
Other comprehensive income (loss): | |||||
Foreign currency translation | -59.5 | -59.5 | |||
Changes in unrealized pension cost, net of tax | -51.8 | -51.8 | |||
Changes in fair market value of derivatives | -0.1 | -0.1 | |||
Dividend forfeited on common stock | 0.1 | 0.1 | |||
Payments for repurchase of warrants | 0 | ||||
Stock-based compensation | 13.8 | 13.8 | |||
Issuance of common stock and related tax benefits | 8.3 | 0.2 | 8.1 | ||
Issuance of common stock and related tax benefits, shares | 200,000 | ||||
Ending Balance at Jan. 02, 2015 | $1,133 | $33.10 | $238.20 | $999.70 | ($138) |
Ending Balance, Shares at Jan. 02, 2015 | 33,141,950 | 33,100,000 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Unrealized pension cost, net of tax | $24.30 | $24.10 | $15.70 |
Special dividend declared on common stock per share | $0 | $5 | $4.50 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||
Organization: Anixter International Inc. and its subsidiaries (collectively referred to as "Anixter" or the "Company”) and sometimes referred to in these Notes to the Consolidated Financial Statements as "we", "our", "us", or "ourselves", formerly known as Itel Corporation, which was incorporated in Delaware in 1967, is a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products, OEM supply fasteners and other small parts ("C" class inventory components) through Anixter Inc. and its subsidiaries. | |||||||||||||||||||
Basis of presentation: The consolidated financial statements include the accounts of Anixter International Inc. and its subsidiaries. Our fiscal year ends on the Friday nearest December 31 and includes 52 weeks in 2014 and 2012 and 53 weeks in 2013. Certain amounts in the 2013 and 2012 financial statements, as previously reported, have been reclassified to conform to the 2014 presentation. These reclassifications did not have a material impact on the presentation of the consolidated financial statements. | |||||||||||||||||||
Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | |||||||||||||||||||
Cash and cash equivalents: Cash equivalents consist of short-term, highly liquid investments that mature within three months or less. Such investments are stated at cost, which approximates fair value. | |||||||||||||||||||
Receivables and allowance for doubtful accounts: We carry our accounts receivable at their face amounts less an allowance for doubtful accounts, which was $26.7 million and $16.8 million at the end of 2014 and 2013, respectively. The acquisition of Tri-Ed contributed to the increase in the 2014 allowance for doubtful accounts balance compared to 2013. On a regular basis, we evaluate our accounts receivable and establish the allowance for doubtful accounts based on a combination of specific customer circumstances, as well as credit conditions and history of write-offs and collections. The provision for doubtful accounts was $12.0 million, $10.4 million and $7.5 million in 2014, 2013 and 2012, respectively. A receivable is considered past due if payments have not been received within the agreed upon invoice terms. Receivables are written off and deducted from the allowance account when the receivables are deemed uncollectible. | |||||||||||||||||||
Inventories: Inventories, consisting primarily of purchased finished goods, are stated at the lower of cost or market. Cost is determined using the average-cost method. We have agreements with some of our vendors that provide a right to return products. This right is typically limited to a small percentage of our total purchases from that vendor. Such rights provide that we can return slow-moving product and the vendor will replace it with faster-moving product chosen by us. Some vendor agreements contain price protection provisions that require the manufacturer to issue a credit in an amount sufficient to reduce our current inventory carrying cost down to the manufacturer’s current price. We consider these agreements in determining our reserve for obsolescence. | |||||||||||||||||||
At January 2, 2015 and January 3, 2014, we reported inventory of $1,072.8 million and $959.8 million, respectively (net of inventory reserves of $60.5 million and $57.0 million, respectively). The acquisition of Tri-Ed contributed to the increase in the 2014 inventory and associated reserve compared to 2013. Each quarter we review for excess inventories and make an assessment of the net realizable value. There are many factors that management considers in determining whether or not the amount by which a reserve should be established. These factors include the following: | |||||||||||||||||||
• | Return or rotation privileges with vendors | ||||||||||||||||||
• | Price protection from vendors | ||||||||||||||||||
• | Expected future usage | ||||||||||||||||||
• | Whether or not a customer is obligated by contract to purchase the inventory | ||||||||||||||||||
• | Current market pricing | ||||||||||||||||||
• | Historical consumption experience | ||||||||||||||||||
• | Risk of obsolescence | ||||||||||||||||||
If circumstances related to the above factors change, there could be a material impact on the net realizable value of the inventories. | |||||||||||||||||||
Property and equipment: At January 2, 2015, net property and equipment consisted of $91.1 million of equipment and computer software and approximately $29.9 million of buildings and leasehold improvements. At January 3, 2014, net property and equipment consisted of $76.8 million of equipment and computer software and approximately $27.2 million of buildings and leasehold improvements. The acquisition of Tri-Ed contributed to the increase in the 2014 net property and equipment balance compared to 2013. Equipment and computer software are recorded at cost and depreciated by applying the straight-line method over their estimated useful lives, which range from 3 to 15 years. Leasehold improvements are depreciated over the useful life or over the term of the related lease, whichever is shorter. We continually evaluate whether events or circumstances have occurred that would indicate the remaining useful lives of our property and equipment warrant revision or that the remaining balance of such assets may not be recoverable. In 2013 and 2012, we recorded non-cash impairment charges related to the write-down of property and equipment and these charges are reflected in our operating results. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". Upon sale or retirement, the cost and related depreciation are removed from the respective accounts and any gain or loss is included in income. Maintenance and repair costs are expensed as incurred. Depreciation expense charged to operations, including an immaterial amount of capital lease depreciation, was $24.0 million, $22.1 million and $22.5 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||
Costs for software developed for internal use are capitalized when the preliminary project stage is complete and we have committed funding for projects that are likely to be completed. Costs that are incurred during the preliminary project stage are expensed as incurred. Once the capitalization criteria has been met, external direct costs of materials and services consumed in developing internal-use computer software, payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use computer software project (to the extent of their time spent directly on the project) and interest costs incurred when developing computer software for internal use are capitalized. At January 2, 2015 and January 3, 2014, capitalized costs, net of accumulated amortization, for software developed for internal use were approximately $45.4 million and $39.1 million, respectively. Amortization expense charged to operations for capitalized costs was $3.3 million, $3.2 million and $1.9 million in 2014, 2013 and 2012, respectively. Interest expense incurred in connection with the development of internal use software is capitalized based on the amounts of accumulated expenditures and the weighted-average cost of borrowings for the period. Interest costs capitalized for fiscal 2014, 2013 and 2012 were insignificant. | |||||||||||||||||||
Goodwill: We utilize the qualitative assessment approach to test goodwill for impairment during the annual assessment performed in the third quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. The qualitative assessment considers specific factors, based on the weight of evidence, and the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In addition to the qualitative approach during the third quarter of 2012, we also performed a combination of the quantitative evaluation of the income and market approaches to determine the fair value of our former European reporting unit. | |||||||||||||||||||
As a result of the change in segments in the fourth quarter of 2012 and in accordance with ASC 350 related to Goodwill and Intangibles, we reassigned the carrying amount of goodwill to our new reporting units based on the relative fair value assigned as of the effective date of our change in segment reporting. We performed an interim assessment of the recoverability of goodwill assigned to the reporting units as a result of this change. In connection with our fourth quarter interim assessment to test for goodwill impairment, we performed a quantitative test for all reporting units and utilized a combination of the income and market approach, both of which are broadly defined below. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | |||||||||||||||||||
The income approach is a quantitative evaluation to determine the fair value of the reporting unit. Under the income approach we determine the fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the reporting unit and the rate of return a market participant would expect to earn. The inputs used for the income approach were significant unobservable inputs, or Level 3 inputs, as described in the accounting fair value hierarchy. Estimated future cash flows were based on our internal projection models, industry projections and other assumptions deemed reasonable by management. | |||||||||||||||||||
The market approach measures the fair value of a reporting unit through the analysis of recent sales, offerings, and financial multiples (sales or earnings before interest, tax, depreciation and amortization ("EBITDA")) of comparable businesses. Consideration is given to the financial conditions and operating performance of the reporting unit being valued relative to those publicly-traded companies operating in the same or similar lines of business. | |||||||||||||||||||
If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount using the qualitative assessment, we perform the two-step impairment test. The first step of the impairment test is to identify a potential impairment by comparing the fair value of a reporting unit with its carrying amount. The estimates of fair value of a reporting unit are determined using the income approach and/or the market approach as described above. If step one of the test indicates a carrying value above the estimated fair value, the second step of the goodwill impairment test is performed by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied residual value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. | |||||||||||||||||||
Intangible assets: Intangible assets, other than goodwill, are included in "Other assets" on the consolidated balance sheets. As of January 2, 2015 and January 3, 2014, our intangible asset balances are as follows: | |||||||||||||||||||
2-Jan-15 | 3-Jan-14 | ||||||||||||||||||
(In millions) | Average useful life (in years) | Gross carrying amount | Accumulated amortization | Gross carrying amount | Accumulated amortization | ||||||||||||||
Customer relationships | 20-Jun | $ | 212.3 | $ | (51.8 | ) | $ | 93.8 | $ | (42.4 | ) | ||||||||
Exclusive supplier agreement | 21 | 22.9 | (0.3 | ) | — | — | |||||||||||||
Trade names | 10-Mar | 15.5 | (4.8 | ) | 6.6 | (3.5 | ) | ||||||||||||
Trade names | Indefinite | 10.6 | — | — | — | ||||||||||||||
Non-compete agreements | 5-Apr | 5.2 | (2.2 | ) | 2 | (2.0 | ) | ||||||||||||
Intellectual property | 10 | 1.5 | (0.9 | ) | 1.7 | (0.9 | ) | ||||||||||||
Total | $ | 268 | $ | (60.0 | ) | $ | 104.1 | $ | (48.8 | ) | |||||||||
We continually evaluate whether events or circumstances have occurred that would indicate the remaining estimated useful lives of our intangible assets warrant revision or that the remaining balance of such assets may not be recoverable. For definite-lived intangible assets, we use an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. Trade names that have been identified to have indefinite lives are not being amortized based on our expectation that the trade name products will generate future cash flows for us for the foreseeable future. We expect to maintain use of these trade names on existing products. In 2012, we recorded a non-cash impairment charge related to definite-lived intangible assets and these charges are reflected in the operating results. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | |||||||||||||||||||
Intangible amortization expense is expected to average $20.0 million per year for the next five years; $13.9 million of that amount relates to intangible assets recorded for the Tri-Ed acquisition. See Note 2. "Business Combination" for further details. Our definite lived intangible assets are amortized over a straight line basis as it approximates the customer attrition patterns and best estimates the use pattern of the assets. | |||||||||||||||||||
Other, net: The following represents the components of “Other, net” as reflected in the Consolidated Statements of Income for the fiscal years 2014, 2013 and 2012: | |||||||||||||||||||
(In millions) | Years Ended | ||||||||||||||||||
January 2, | January 3, | December 28, | |||||||||||||||||
2015 | 2014 | 2012 | |||||||||||||||||
Other, net: | |||||||||||||||||||
Foreign exchange | $ | (9.1 | ) | $ | (9.8 | ) | $ | (11.7 | ) | ||||||||||
Foreign exchange devaluations | (8.0 | ) | (1.1 | ) | — | ||||||||||||||
Cash surrender value of life insurance policies | 0.8 | 0.2 | 0.5 | ||||||||||||||||
Other | (1.7 | ) | (0.5 | ) | (2.0 | ) | |||||||||||||
Total other, net | $ | (18.0 | ) | $ | (11.2 | ) | $ | (13.2 | ) | ||||||||||
In the first quarter of 2014, the Venezuelan government changed its policies regarding the bolivar which required 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 Argentine peso was also devalued from 6.5 pesos to one USD to approximately 8.0 peso 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. In 2013, we had a $1.1 million foreign exchange loss due to the devaluation of the Venezuela bolivar from the rate of 4.30 bolivars to one USD to 6.30 bolivars to one USD. As a result of the devaluation, through the end of fiscal 2013, we believed that the official rate of 6.30 bolivars to one USD would be the rate available to us in the event we repatriated cash from Venezuela. Due to the strengthening of the U.S. dollar (“USD”) against certain foreign currencies, primarily in our Europe and Latin America regions, we recorded additional foreign exchange losses of $9.1 million in 2014, $9.8 million in 2013 and $11.7 million in 2012. | |||||||||||||||||||
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 Consolidated Statements of 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 January 2, 2015 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 Consolidated Statements of Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At January 2, 2015 and January 3, 2014, the gross notional amount of the foreign currency forward contracts outstanding was approximately $222.9 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 January 2, 2015 and January 3, 2014, the net notional amount of the foreign currency forward contracts outstanding was approximately $121.9 million and $152.0 million, respectively. | |||||||||||||||||||
The combined effect of changes in both the equity and bond markets in each of the last three fiscal years resulted in changes in the cash surrender value of our owned life insurance policies associated with our sponsored deferred compensation program. In 2013, we recorded interest income of $0.7 million related to closing prior tax years. | |||||||||||||||||||
Fair value measurement: Our assets and liabilities measured at fair value on a recurring basis consist of foreign currency forward contracts and the assets of our defined benefit plans. The fair value of the foreign currency forward contracts is discussed above in the section titled “Other, net.” The fair value of the assets of our defined benefit plans is discussed in Note 9. "Pension Plans, Post-Retirement Benefits and Other Benefits". The nonrecurring fair value measurements include our evaluation of the recoverability of goodwill and related evaluation of long-lived assets. The fair value measurements of goodwill and long-lived assets is discussed in Note 5. "Impairment of Goodwill and Long-lived Assets". Fair value disclosures of debt are discussed in Note 6. "Debt". | |||||||||||||||||||
The inputs used in the determination of fair values are categorized according to the fair value hierarchy as being Level 1, Level 2 or Level 3. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. | |||||||||||||||||||
Revenue recognition: Sales to customers, resellers and distributors and related cost of sales are recognized upon transfer of title, which generally occurs upon shipment of products, when the price is fixed and determinable and when collectability is reasonably assured. Revenue is recorded net of sales taxes, customer discounts, rebates and similar charges. We also establish a reserve for returns and credits provided to customers in certain instances. The reserve is established based on an analysis of historical experience and was $24.8 million and $27.6 million at January 2, 2015 and January 3, 2014, respectively. | |||||||||||||||||||
In connection with the sales of our products, we often provide certain supply chain services. These services are provided exclusively in connection with the sales of products, and as such, the price of such services is included in the price of the products delivered to the customer. We do not account for these services as a separate element, as the services do not have stand-alone value and cannot be separated from the product element of the arrangement. There are no significant post-delivery obligations associated with these services. | |||||||||||||||||||
In those cases where we do not have goods in stock and delivery times are critical, product is purchased from the manufacturer and drop-shipped to the customer. We generally take title to the goods when shipped by the manufacturer and then we bill the customer for the product upon transfer of the title to the customer. | |||||||||||||||||||
Sales taxes: Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis in the Consolidated Statements of Income. | |||||||||||||||||||
Advertising and sales promotion: Advertising and sales promotion costs are expensed as incurred. Advertising and promotion costs included in operating expenses on the Consolidated Statements of Income were $13.5 million, $12.8 million and $13.1 million in 2014, 2013 and 2012, respectively. The majority of the advertising and sales promotion costs are recouped through various cooperative advertising programs with vendors. | |||||||||||||||||||
Shipping and handling fees and costs: We include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with outbound freight are included in "Operating expenses" on the Consolidated Statements of Income, which were $110.7 million, $110.5 million and $106.4 million for the years ended 2014, 2013 and 2012, respectively. | |||||||||||||||||||
Stock-based compensation: In accordance with U.S. accounting rules, we measure the cost of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method. Compensation costs are determined based on the fair value at the grant date and amortized over the respective vesting period representing the requisite service period. | |||||||||||||||||||
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 (loss) income" on the Consolidated Statements 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 9. "Pension Plans, Post-Retirement Benefits and Other Benefits" for pension related amounts reclassified into net income. | |||||||||||||||||||
Our investments in several subsidiaries are recorded in currencies other than the USD. 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 USD 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 USD, are translated into USD 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: Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based upon enacted tax laws and rates. We maintain valuation allowances to reduce deferred tax assets if it is more likely than not that some portion or all of the deferred tax asset will not be realized. We recognize the benefit of tax positions when a benefit is more likely than not (i.e., greater than 50% likely) to be sustained on its technical merits. Recognized tax benefits are measured at the largest amount that is more likely than not to be sustained, based on cumulative probability, in final settlement of the position. | |||||||||||||||||||
Net income per share: Diluted net income per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. | |||||||||||||||||||
For 2014, 2013 and 2012, we had 0.3 million of additional shares related to stock options and stock units included in the computation of diluted earnings per share because the effect of those common stock equivalents were dilutive during these periods. We exclude antidilutive stock options and units from the calculation of weighted-average shares for diluted earnings per share. For 2014, 2013 and 2012, the antidilutive stock options and units were immaterial. | |||||||||||||||||||
As discussed in Note 6. "Debt", the Notes due 2013 have been retired; however, they were dilutive during various periods in 2013 and 2012. Specifically, as a result of our average stock price exceeding the average accreted value during 2013 and 2012, we included 0.1 million and 0.4 million additional shares, respectively, related to the Notes due 2013 in the diluted weighted-average common shares outstanding. | |||||||||||||||||||
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 was effective for us beginning in fiscal year 2014 and applicable disclosures are reflected herein. | |||||||||||||||||||
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 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 current 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 currently effective for the Company in fiscal 2017. 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. |
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Text Block [Abstract] | |||||||||
ACCRUED EXPENSES | ACCRUED EXPENSES | ||||||||
Accrued expenses consisted of the following: | |||||||||
January 2, | January 3, | ||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Salaries and fringe benefits | $ | 87.7 | $ | 89.9 | |||||
Other accrued expenses | 111.5 | 120.6 | |||||||
Total accrued expenses | $ | 199.2 | $ | 210.5 | |||||
BUSINESS_COMBINATION
BUSINESS COMBINATION | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Business Combination Disclosure [Text Block] | NOTE 2. BUSINESS COMBINATION | ||||||||
On September 17, 2014, we acquired 100% of the outstanding capital stock of Tri-Northern Acquisition Holdings, Inc. (“Tri-Ed”) from Tri-NVS Holdings, LLC for $418.4 million (net of cash acquired of $11.6 million and a favorable net assets adjustment of $2.3 million). The acquisition was financed using borrowings under the 5-year senior unsecured revolving credit agreement, the accounts receivable securitization facility, available cash and the $200.0 million term loan, as more fully described in Note 6. "Debt". A portion of the proceeds from a subsequent issuance of $400.0 million principal amount of senior notes were used to repay certain incurred borrowings to finance the Tri-Ed acquisition. Tri-Ed is a leading independent distributor of security and low-voltage technology products. | |||||||||
The acquisition of Tri-Ed presents a strategic opportunity for us and our security business, consistent with our vision to create a leading global security platform and to accelerate profitable revenue growth. Through expanding our offering into highly complementary product lines, we believe our customers will benefit from a broader set of products and solutions in the areas of video, access control, fire/life safety, and intrusion detection. In addition, this transaction provides access to the residential construction end market at an attractive point in the recovery cycle as well as to a community of security integrators and dealers we do not currently service. | |||||||||
The following table sets forth the preliminary purchase price allocation, as of the acquisition date, for Tri-Ed. The purchase price allocation is preliminary pending finalization of the valuation of the acquired intangible assets and related deferred tax liabilities, which is expected to be completed in 2015. | |||||||||
(In millions) | |||||||||
Cash | $ | 11.6 | |||||||
Current assets, net | 203.9 | ||||||||
Property, plant and equipment | 2.7 | ||||||||
Goodwill | 243.4 | ||||||||
Intangible assets | 166.8 | ||||||||
Current liabilities | (144.6 | ) | |||||||
Non-current liabilities | (56.1 | ) | |||||||
Total purchase price | $ | 427.7 | |||||||
All Tri-Ed goodwill, other assets and liabilities were recorded in the Enterprise Cabling and Security Solutions (“ECS”) reportable segment. The goodwill resulting from the acquisition largely consists of our expected future product sales and synergies from combining Tri-Ed’s products with our existing product offerings. Other than $12.2 million, the remaining goodwill is not deductible for tax purposes. The following table sets forth the components of preliminary identifiable intangible assets acquired and their estimated useful lives as of the date of the acquisition: | |||||||||
(In millions) | Average useful life (in years) | Fair value | |||||||
Customer relationships | 18-Nov | $ | 120.6 | ||||||
Exclusive supplier agreement | 21 | 23.2 | |||||||
Trade names | Indefinite | 10.6 | |||||||
Tri-Ed trade names | 4 | 9.2 | |||||||
Non-compete agreements | 5-Apr | 3.2 | |||||||
Total intangible assets | $ | 166.8 | |||||||
We incurred approximately $7.0 million in acquisition and integration cost and financing costs in 2014, with $6.7 million and $0.3 million included in "Operating expense" and "Other, net", respectively, on the Consolidated Statements of Income. | |||||||||
The following unaudited pro forma information shows our results of operations as if the acquisition of Tri-Ed had been completed as of the beginning of fiscal 2013. Adjustments have been made for the pro forma effects of interest expense and deferred financing costs related to the financing of the business combination, depreciation and amortization of tangible and intangible assets recognized as part of the business combination, related income taxes and various other costs which would not have been incurred had we and Tri-Ed operated as a combined entity (i.e., management fees paid by Tri-Ed to its former owners and acquisition and integration costs and financing costs related to the transaction). | |||||||||
Years Ended | |||||||||
(In millions, except per share amounts) | January 2, 2015 | January 3, 2014 | |||||||
Net sales | $ | 6,865.10 | $ | 6,798.70 | |||||
Net income | $ | 201.3 | $ | 203.9 | |||||
Income per share: | |||||||||
Basic | $ | 6.09 | $ | 6.22 | |||||
Diluted | $ | 6.04 | $ | 6.14 | |||||
Since the date of acquisition, the Tri-Ed results are reflected in our Consolidated Financial Statements. For 2014, Tri-Ed added approximately $176.0 million of revenue and $6.4 million in operating income to our consolidated results. |
RESTRUCTURING_CHARGE
RESTRUCTURING CHARGE | 12 Months Ended | |||||||||||
Jan. 02, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
RESTRUCTURING CHARGE | RESTRUCTURING CHARGE | |||||||||||
We consider restructuring activities to be programs whereby we fundamentally change our operations, such as closing and consolidating facilities, reducing headcount and realigning operations in response to changing market conditions. In the fourth quarter of 2012, recognizing the ongoing challenging global economic conditions, we took aggressive actions to restructure our costs across all segments and geographies, resulting in a $10.1 million pre-tax charge, which is included in “Operating expenses” in our Consolidated Statements of Income for fiscal year 2012. The restructuring charge primarily consisted of severance-related expenses associated with a reduction of over 200 positions. At January 2, 2015, the majority of the remaining accrual related to this charge of $0.9 million is expected to be paid in 2015. The following table summarizes activity related to liabilities associated with restructuring and employee severance: | ||||||||||||
Restructuring Charge | ||||||||||||
(in millions) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Total | |||||||||
Balance at December 28, 2012 | $ | 6.7 | $ | 2.4 | $ | 9.1 | ||||||
Payments and other | (4.4 | ) | (2.0 | ) | (6.4 | ) | ||||||
Balance at January 3, 2014 | 2.3 | 0.4 | 2.7 | |||||||||
Payments and other | (2.2 | ) | 0.4 | (1.8 | ) | |||||||
Balance at January 2, 2015 | $ | 0.1 | $ | 0.8 | $ | 0.9 | ||||||
(a) | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated. | |||||||||||
(b) | Facility exit and other costs primarily consist of lease termination costs. |
IMPAIRMENT_OF_GOODWILL_AND_LON
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS | 12 Months Ended | ||||
Jan. 02, 2015 | |||||
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS | IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS | ||||
We perform our annual goodwill impairment analysis during the third quarter of each fiscal year. For a number of years and through the end of the third quarter of 2012, our reporting units were consistent with our operating segments of North America, Europe, Latin America and Asia Pacific. In the fourth quarter of 2012, we reorganized our business segments from geography to end market to reflect our realigned segment reporting structure. In connection with this change and in accordance with the provisions of ASC 350 regarding Goodwill and Intangible Assets, we were required to reassign the carrying amount of goodwill, based on the relative fair value of our new reporting units (which are the same as the realigned reportable segments of Enterprise Cabling and Security Solutions ("ECS"), Electrical and Electronic Wire and Cable ("W&C") and OEM Supply - Fasteners ("Fasteners")). See Note 11. "Business Segments" for further information regarding this change and the amounts allocated to each new segment. We performed an interim assessment of the recoverability of goodwill assigned to the reporting units and an assessment of the recoverability of our long-lived assets as a result of this change. The following describes the approach for evaluating the recoverability of goodwill and long-lived assets. | |||||
Goodwill | |||||
During the third quarter of 2012, we performed our annual goodwill impairment utilizing the qualitative assessment approach and concluded that it was more likely than not (i.e., a likelihood of greater than 50%) that the fair values of each of the North America, Latin America and Asia Pacific reporting units were greater than their carrying amounts and therefore the two-step quantitative impairment test was not necessary. However, as a result of the continued downturn in global economic conditions, the sovereign debt crisis in Europe, as well as consumer confidence at recessionary levels in this geography, our Europe reporting unit had experienced a decline in sales, margin and profitability as compared to both the prior year and future projections. Due to market and economic conditions as well as our revised forecasts, we concluded that there were qualitative factors for the Europe reporting unit that indicated it was more likely than not that the fair value of this reporting unit was less than its carrying amount and therefore required the two-step quantitative impairment test in the third quarter of 2012. | |||||
For the Europe reporting unit, we performed a quantitative evaluation utilizing the income and market approaches to determine the fair value of the reporting unit. Estimated future cash flows were based on our internal projection models, industry projections, and other assumptions deemed reasonable by management. The financial multiples of comparable companies were also considered in the determination of fair value. The discount rate of 12.9% was used to discount future cash flows and a terminal growth rate of 3.0% was used in the projections. Based on the results of our assessment in step one, it was determined that the carrying value of the Europe reporting unit exceeded its estimated fair value. | |||||
Therefore, we performed the second step of the impairment test to estimate the implied residual value of goodwill in Europe. In the second step of the impairment analysis, we determined the implied residual value of goodwill for the Europe reporting unit by allocating the fair value of the reporting unit to all of Europe’s assets and liabilities, as if the reporting unit had been acquired in a business combination and the price paid to acquire it was the fair value. The analysis indicated that there would no longer be an implied value attributable to goodwill and, accordingly, in the third quarter of 2012, we recorded a non-cash impairment charge related to the write-off of the remaining goodwill of $10.8 million associated with this reporting unit. | |||||
As a result of the change in segments in the fourth quarter of 2012, we were required to reassign the carrying amount of goodwill, based on the relative fair value of our new reporting units, to our new reporting units. We determined the fair value of each reporting unit utilizing a combination of the income and market approach discussed previously. A discount rate was determined for each reporting segment based on the geographical source of their respective sales, size of the segment and other factors. Following are the discount rates used in the determination of the fair value of the reporting units: ECS 10.0%, W&C 9.9% and Fasteners 12.3%. The Fasteners discount rate was higher than the other two segments primarily due to a higher risk premium due to its smaller size. A terminal growth rate of 3.0% was used for all segments. Our goodwill balances were then allocated to each segment based on the relative enterprise values of the segments. | |||||
From the enterprise values calculated above, we determined the shareholder value (equity value) for each segment by subtracting debt from the enterprise value and making other adjustments. We then summed the shareholder values and compared the sum to the shareholder value of Anixter International Inc., on the date of the segment change. The comparison indicated a control premium of 26%. We concluded that the control premium was reasonable. The resulting fair values of the ECS and W&C segments were significantly above their respective carrying values while the fair value of the Fasteners segment was significantly below its carrying value. | |||||
Based on the results above, we concluded that the Fasteners segment failed step one of the impairment test. Since the shareholder value of the Fasteners segment was significantly below its carrying value, we determined there was no implied residual value for goodwill. As a result of this evaluation, we recorded a non-cash impairment charge of $15.3 million related to the write-off of all the goodwill allocated to the Fasteners segment. | |||||
As a result of our annual assessment of the recoverability of goodwill (performed qualitatively) during the third quarter of 2014, we expect the carrying amount of goodwill, allocated to each of the reporting units, to be fully recoverable at January 2, 2015. | |||||
Long-Lived Assets | |||||
Other than goodwill, our only indefinite-lived intangible assets are trade names acquired during the Tri-Ed acquisition. See Note 2. "Business Combination" for further information. Our long-lived assets consist of definite-lived intangible assets which are primarily related to customer relationships, as well as property and equipment which consists of office furniture and equipment, computer software and hardware, warehouse equipment and leasehold improvements. We continually evaluate whether events or circumstances have occurred that would indicate the remaining estimated useful lives of our long-lived assets warrant revision or that the remaining balance of such assets may not be recoverable. If impairment indicators are present, we assess whether the future estimated undiscounted cash flows attributable to the assets in question are greater than their carrying amounts. If these future estimated cash flows are less than carrying value, we then measure an impairment loss for the amount that carrying value exceeds fair value of the assets. | |||||
Due to the impairment of goodwill recorded during the third and fourth quarters of 2012, we also evaluated the realizability of long-lived assets in those respective reporting units. The following describes the approach for evaluating our long-lived assets in the third and fourth quarters of 2012: | |||||
Intangible Assets | |||||
In order to measure the impairment loss of customer relationships, we estimate the fair value by using an excess earnings model, a form of the income approach. The analysis requires us to make various judgmental assumptions, including assumptions about future cash flows based on projected growth rates of revenue and expense, expectations of rates of customer attrition and working capital needs. The assumptions about future cash flows and growth rates are based on management’s forecast of the asset group. The key inputs utilized in determining the fair value of customer relationships in 2012 were significant unobservable inputs, or Level 3 inputs, as described in the accounting fair value hierarchy. Inputs included discount rates derived from an estimated weighted-average cost of capital, which reflected the overall level of inherent risk of the asset group and the rate of return a market participant would expect to earn, as well as customer attrition rates. The results of this analysis in the third and fourth quarters indicated that the fair values of the intangible assets within these asset groups were less than carrying value. Accordingly, in the third and fourth quarters of 2012, we recorded a non-cash impairment charge related to the write-down of intangible assets of $11.0 million in our former Europe segment and $5.6 million in Fasteners and the charges are reflected in our operating results. The reductions in the carrying values of these assets were factored into the carrying value of net assets in connection with the goodwill impairment tests described above. The following key inputs were used in the Fasteners intangible asset evaluations in the third and fourth quarters of 2012: | |||||
Discount Rates | |||||
Q3 Evaluation | Q4 Evaluation | ||||
14.5% to 16.0% | 14.00% | ||||
Property, Plant and Equipment | |||||
In order to measure the impairment loss of property and equipment in 2012, we estimated the fair value by using an orderly liquidation valuation. An orderly liquidation value is the amount that could be realized from a liquidation sale, given a reasonable period of time to find a purchaser (or purchasers), with the seller being compelled to sell the asset in the existing condition where it is located, as of a specific date, assuming the highest and best use of the asset by market participants. The valuation method also considers that it is physically possible, legally permissible and financially feasible to use the asset at the measurement date. The inputs used for the valuation were significant unobservable inputs, or Level 3 inputs, as described in the accounting fair value hierarchy, based on our assumptions about the assumptions market participants would use. A second step of the analysis is performed by comparing the orderly liquidation value to the carrying amount of that asset. The orderly liquidation values were applied against the original cost of the assets and the impairment loss measured as the difference between the liquidation value of the assets and the net book value of the assets. Accordingly, in the third and fourth quarters of 2012, we recorded a non-cash impairment charge related to the write-down of property and equipment of $5.4 million in our former Europe segment and $0.4 million in our Fasteners segment and these charges are reflected in our operating results. The reductions in the carrying values of these assets were factored into the carrying values of net assets in connection with the goodwill impairment tests described above. | |||||
We do not have any material assets which require recurring fair value measurements. We measure the fair values of goodwill, intangible assets and property and equipment on a nonrecurring basis if required by impairment tests applicable to these assets. | |||||
During the fourth quarter of 2013, we assessed the recoverability of certain property and equipment and recorded a non-cash impairment charge of $1.7 million to reduce the carrying values of these assets. |
DEBT
DEBT | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Text Block [Abstract] | |||||||||
DEBT | Debt is summarized below: | ||||||||
(In millions) | January 2, | January 3, | |||||||
2015 | 2014 | ||||||||
Long-term debt: | |||||||||
Senior notes due 2021 | $ | 394.2 | $ | — | |||||
Senior notes due 2019 | 345.9 | 345.1 | |||||||
Senior notes due 2015 | 200 | 200 | |||||||
Term loan | 198.8 | — | |||||||
Accounts receivable securitization facility | 65 | 145 | |||||||
Revolving lines of credit | — | 101.5 | |||||||
Senior notes due 2014 | — | 32.1 | |||||||
Other | 3.8 | 7.4 | |||||||
Total long-term debt | $ | 1,207.70 | $ | 831.1 | |||||
Certain debt agreements entered into by our operating subsidiaries contain various restrictions, including restrictions on payments to us. These restrictions have not had, nor are expected to have, an adverse impact on our ability to meet cash obligations. We have guaranteed substantially all of the debt of our subsidiaries. | |||||||||
Aggregate annual maturities of debt before accretion of debt discount as reflected on the Consolidated Balance Sheet at January 2, 2015 are as follows: 2015 - $210.1 million, 2016 - $10.0 million, 2017 - $76.2 million, 2018 - $171.3 million, 2019 - $345.9 million and $394.2 million thereafter. | |||||||||
Our average borrowings outstanding were $1,027.4 million and $896.5 million for the fiscal years ending January 2, 2015 and January 3, 2014, respectively. Our weighted-average cost of borrowings was 4.7%, 5.3% and 6.1% for the years ended January 2, 2015, January 3, 2014 and December 28, 2012, respectively. Interest paid in 2014, 2013 and 2012 was $41.1 million, $43.5 million and $35.4 million, respectively. | |||||||||
At the end of fiscal 2014, we had approximately $406.9 million in available, committed, unused credit lines with financial institutions that have investment-grade credit ratings, as well as $65.0 million of outstanding borrowings under our $300.0 million accounts receivable securitization facility, also with financial institutions with investment grade credit ratings, resulting in $641.9 million of available borrowings at the end of 2014. However, under Anixter Inc.'s 5-year senior unsecured revolving credit agreement there is a 3.50 leverage ratio that limits available borrowings by $304.2 million, resulting in net available borrowings of $337.7 million at the end of the 2014. | |||||||||
We are in compliance with all of our covenant ratios and believe that there is adequate margin between the covenant ratios and the actual ratios given the current trends of the business. In addition to the 3.50 leverage ratio restriction described earlier, under Anixter Inc.'s 5-year senior unsecured revolving credit agreement, there is a covenant limitation related to the Senior notes due 2015. The covenant requires Anixter Inc. to maintain a maximum 3.0 leverage ratio and $175.0 million of combined cash, unused credit facility and accounts receivable securitization facility availability from December 1, 2014 through the March 2, 2015 maturity or upon early full retirement of the Senior notes due in 2015. Based on current trends in the business and cash generation, we anticipate Anixter Inc. will have adequate liquidity to support the additional availability limitation and our working capital requirements. | |||||||||
Revolving Lines of Credit | |||||||||
At January 2, 2015, our primary liquidity source was the $400 million (or the equivalent in Euro) 5-year senior unsecured revolving credit agreement at Anixter Inc. maturing November 2018. At January 2, 2015, there were no long-term borrowings under this agreement, which is guaranteed by us, as compared to $101.5 million at the end of fiscal 2013. | |||||||||
On August 27, 2014, our primary operating subsidiary, Anixter Inc., completed a second amendment and incremental facility agreement to its 5-year senior unsecured revolving credit agreement. Anixter Inc. received a $200.0 million term loan ("Term Loan"), utilizing the incremental facility available under the 5-year senior unsecured revolving credit agreement. The Term Loan pays interest quarterly at a rate that is calculated in the same manner as the 5-year senior unsecured revolving credit agreement, as described below. In addition, we are required to pay an escalating portion of the Term Loan principal balance quarterly. The first four payments required are $1.2 million, then eight payments of $2.5 million, four payments of $3.8 million and a final payment of $160.0 million upon maturity in November 2018. Proceeds from the term loan were used to fund a portion of the acquisition of Tri-Ed. Issuance costs of approximately $0.7 million are being amortized through maturity using the straight-line method. See Note 2. "Business Combination" for acquisition details. | |||||||||
The following key changes have been made as part of the second amendment to the 5-year senior unsecured revolving credit agreement: | |||||||||
• | The consolidated leverage ratio maximum leverage increased from 3.25 to 3.50. | ||||||||
• | The leverage ratio maintenance test with respect to the Senior notes due 2015 increased from 2.75 to 3.00. | ||||||||
• | The incremental facility was reset to $200 million after giving effect to the Term Loan. | ||||||||
The following are the key terms to the 5-year senior unsecured revolving credit agreement: | |||||||||
• | Based on Anixter Inc.'s current leverage ratio, the applicable margin will be LIBOR plus 175 basis points. | ||||||||
• | As of the end of 2014, the consolidated fixed charge coverage ratio (as defined in the revolving credit agreement) requires a minimum coverage of 3.00 times. As of January 2, 2015, the consolidated fixed charge coverage ratio was 3.79. | ||||||||
• | The consolidated leverage ratio (as defined in the revolving credit agreement) limits the maximum leverage allowed to 3.50. As of January 2, 2015, the consolidated leverage ratio was 2.74. | ||||||||
• | Under the reset restricted payment basket, Anixter Inc. will be permitted to direct funds to us for payment of dividends and share repurchases to a sum of $175 million plus 50% of Anixter Inc.’s cumulative consolidated net income from operations for all fiscal quarters ending on and after September 27, 2013. As of January 2, 2015, Anixter Inc. has the ability to distribute $162.3 million of funds to us. | ||||||||
• | Anixter Inc. will be allowed to prepay, purchase or redeem indebtedness of us, provided that its proforma leverage ratio (as defined in the agreement) is less than or equal to 2.75 to 1.00 and that its unrestricted domestic cash balance plus unused commitments under the revolving credit agreement and the accounts receivable securitization facility availability is equal to or greater than $175 million. | ||||||||
• | Anixter Inc. will be able to provide for the issuance of commercial letters of credit. | ||||||||
• | Certain other restricted payment baskets are set at $7.5 million. | ||||||||
We are in compliance with all of the covenant ratios and we believe there is adequate margin between the covenant ratios and the actual ratios given the current trends of the business. | |||||||||
Senior Notes Due 2021 | |||||||||
On September 23, 2014, our primary operating subsidiary, Anixter Inc., completed the issuance of $400.0 million principal amount of Senior notes due 2021 (“Notes due 2021”). The Notes due 2021 were issued at a price that was 98.50% of par, which resulted in a discount related to underwriting fees of $6.0 million. Net proceeds from this offering were approximately $393.1 million after also deducting for approximately $0.9 million of issuance costs paid that are being amortized through maturity using the straight-line method. The discount is reported on the Consolidated Balance Sheet as a reduction to the face amount of the Notes due 2021 and is being amortized to interest expense over the term of the related debt, using the effective interest method. The Notes due 2021 pay interest semi-annually at a rate of 5.125% per annum and will mature on October 1, 2021. In addition, Anixter Inc. may at any time redeem some or all of the Notes due 2021 at a price equal to 100% of the principal amount plus a “make whole” premium. If Anixter Inc. and/or we experience certain kinds of changes of control, it must offer to repurchase all of the Notes due 2021 outstanding at 101% of the aggregate principal amount repurchased, plus accrued and unpaid interest. The proceeds were used by Anixter Inc. to repay amounts outstanding under the accounts receivable credit facility, to repay certain additional borrowings under the 5-year senior unsecured revolving credit agreement that had been incurred for the specific purpose of funding the Tri-Ed acquisition, to provide additional liquidity for maturing indebtedness and for general corporate purposes. We fully and unconditionally guarantee the Notes due 2021, which are unsecured obligations of Anixter Inc. | |||||||||
Senior Notes Due 2019 | |||||||||
On April 30, 2012, our primary operating subsidiary, Anixter Inc., completed the issuance of $350.0 million principal amount of Senior Notes due 2019 (“Notes due 2019”). The Notes due 2019 were issued at a price that was 98.25% of par, which resulted in a discount related to underwriting fees of $6.1 million. Net proceeds from this offering were approximately $342.9 million after also deducting for approximately $1.0 million of issuance costs paid that are being amortized through maturity using the straight-line method. The discounts are reported on the Consolidated Balance Sheet as a reduction to the face amount of the Notes due 2019 and are being amortized to interest expense over the term of the related debt, using the effective interest method. The Notes due 2019 pay interest semi-annually at a rate of 5.625% per annum and will mature on May 1, 2019. In addition, Anixter Inc. may at any time redeem some or all of the Notes due 2019 at a price equal to 100% of the principal amount plus a “make whole” premium. If Anixter Inc. and/or we experience certain kinds of changes of control, it must offer to repurchase all of the Notes due 2019 outstanding at 101% of the aggregate principal amount repurchased, plus accrued and unpaid interest. The proceeds were used by Anixter Inc. to repay amounts outstanding under the accounts receivable securitization facility, to repay certain borrowings under the 5-year senior unsecured revolving credit agreement, to provide additional liquidity for our maturing indebtedness and for general corporate purposes. We fully and unconditionally guarantee the Notes due 2019, which are unsecured obligations of Anixter Inc. | |||||||||
Senior Notes Due 2015 | |||||||||
Anixter Inc. also has $200.0 million 5.95% Senior Notes due 2015 (“Notes due 2015”), which are fully and unconditionally guaranteed by us. Interest of 5.95% on the Notes due 2015 is payable semi-annually on March 1 and September 1 of each year and will mature on March 1, 2015. | |||||||||
Senior Notes Due 2014 | |||||||||
In March 2009, our primary operating subsidiary, Anixter Inc., issued $200 million in principal of 10% Senior Notes due 2014 (“Notes due 2014”) which were priced at a discount to par that resulted in a yield to maturity of 12%. The Notes due 2014 paid interest semiannually at a rate of 10% per annum and matured on March 15, 2014. At January 3, 2014, the Notes due 2014 outstanding were $32.1 million and, during the first quarter of 2014, we retired the maturity value of $32.3 million with available borrowings under existing long-term financing agreements. | |||||||||
Accounts Receivable Securitization Program | |||||||||
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 the 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 January 2, 2015 and January 3, 2014, $548.5 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 $300.0 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, Anixter Inc. amended the Receivables Purchase Agreement governing the 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 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 utilization fees decreased from 47.5 to 57.5 basis points to 40 to 50 basis points depending on utilization. | ||||||||
In addition, on August 27, 2014, Anixter Inc. amended the Receivables Purchase Agreement governing the accounts receivable securitization program to increase the maximum leverage ratio from 3.25 to 3.50. | |||||||||
Short term borrowings | |||||||||
We had short-term borrowings at the end of fiscal 2014 and 2013 under our Term Loan and other bank revolving lines of credit totaling $10.1 million and $7.4 million, respectively, with maturity dates within the next fiscal year. All of these borrowings, along with the Notes due 2015, have been classified as long-term at January 2, 2015 as we have the intent and ability to refinance the debt under existing long-term financing agreements. At the end of 2013, the Notes due 2014 had a maturity date within the next fiscal year but were classified as long-term as we had the intent and ability to refinance the debt under the existing long-term financing agreement at that time. | |||||||||
Retirement of Debt | |||||||||
In addition to the retirement of the Notes due 2014 as described herein, during the first quarter of 2013, our 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 due 2013, we entered into a bond hedge that reimbursed us for any above par value amounts due to holders of the Notes due 2013 at maturity. Available borrowings under our accounts receivable securitization facility and long-term credit facility were used to retire the Notes due 2013. | |||||||||
At issuance of the 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 due 2013 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. | |||||||||
The retirement of debt in 2014 and 2013 did not have a significant impact on our Consolidated Statements of Income. | |||||||||
Fair Value of Debt | |||||||||
The fair value of our debt instruments is measured using observable market information which would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements. Our fixed-rate debt consists of the Notes due 2015, Notes due 2019 and Notes due 2021. | |||||||||
At January 2, 2015, our total carrying value and estimated fair value of debt outstanding, was $1,207.7 million and $1,243.8 million, respectively. This compares to a carrying value and estimated fair value of debt outstanding at January 3, 2014 of $831.1 million and $867.9 million, respectively. The increase in the carrying value and estimated fair market value is primarily due to the issuance of the Notes due 2021 and the Term Loan, offset by the retirement of the Notes due 2014 and the reduction in borrowings under our 5-year senior unsecured revolving credit agreement and accounts receivable securitization facility. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Jan. 02, 2015 | ||||
Text Block [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
Substantially all of our office and warehouse facilities are leased under operating leases. A certain number of these leases are long-term operating leases containing rent escalation clauses and expire at various dates through 2027. Most operating leases entered into contain renewal options. The gross amount of assets recorded under capital leases was immaterial as of January 2, 2015 and January 3, 2014. | ||||
Minimum lease commitments under operating leases at January 2, 2015 are as follows: | ||||
(In millions) | ||||
2015 | $ | 63.5 | ||
2016 | 50.5 | |||
2017 | 37.7 | |||
2018 | 29.6 | |||
2019 | 20.8 | |||
2020 and thereafter | 45 | |||
Total | $ | 247.1 | ||
Total rental expense was $86.1 million, $83.7 million and $83.5 million in 2014, 2013 and 2012, respectively. Aggregate future minimum rentals to be received under non-cancelable subleases at January 2, 2015 were $0.7 million. | ||||
As of January 2, 2015, we had $44.0 million in outstanding letters of credit and guarantees. | ||||
From time to time, we are party to legal proceedings and matters that arise in the ordinary course of business. As of January 2, 2015, 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. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Jan. 02, 2015 | |||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||
Income Before Tax Expense: Domestic income before income taxes was $188.7 million, $186.8 million and $161.3 million for 2014, 2013 and 2012, respectively. Foreign income before income taxes was $106.1 million, $109.4 million and $48.3 million for fiscal years 2014, 2013 and 2012, respectively. | |||||||||||||
Tax Provisions and Reconciliation to the Statutory Rate: The components of our tax expense and the reconciliation to the statutory federal rate are identified below. Income tax expense (benefit) was comprised of: | |||||||||||||
(In millions) | Years Ended | ||||||||||||
January 2, | January 3, | December 28, | |||||||||||
2015 | 2014 | 2012 | |||||||||||
Current: | |||||||||||||
Foreign | $ | 30.8 | $ | 30.9 | $ | 28.5 | |||||||
State | 5.4 | 5.5 | 8.5 | ||||||||||
Federal | 38.1 | 37 | 57.2 | ||||||||||
74.3 | 73.4 | 94.2 | |||||||||||
Deferred: | |||||||||||||
Foreign | (1.0 | ) | 1.6 | (14.6 | ) | ||||||||
State | 3.3 | 2.5 | 0.3 | ||||||||||
Federal | 23.4 | 18.2 | 4.9 | ||||||||||
25.7 | 22.3 | (9.4 | ) | ||||||||||
Income tax expense | $ | 100 | $ | 95.7 | $ | 84.8 | |||||||
Reconciliations of income tax expense to the statutory corporate federal tax rate of 35% were as follows: | |||||||||||||
(In millions) | Years Ended | ||||||||||||
January 2, | January 3, | December 28, | |||||||||||
2015 | 2014 | 2012 | |||||||||||
Statutory tax expense | $ | 103.2 | $ | 103.7 | $ | 73.4 | |||||||
Increase (reduction) in taxes resulting from: | |||||||||||||
Nondeductible goodwill impairment loss | — | — | 9.1 | ||||||||||
State income taxes, net | 5.9 | 5.4 | 5.5 | ||||||||||
Foreign tax effects | (1.1 | ) | (8.7 | ) | (4.6 | ) | |||||||
Change in valuation allowance | (9.2 | ) | 0.3 | 0.5 | |||||||||
Other, net | 1.2 | (5.0 | ) | 0.9 | |||||||||
Income tax expense | $ | 100 | $ | 95.7 | $ | 84.8 | |||||||
Tax Payments: We made net payments for income taxes in 2014, 2013 and 2012 of $117.0 million, $82.0 million and $127.0 million, respectively. | |||||||||||||
Net Operating Losses: Anixter International Inc. and its U.S. subsidiaries file a U.S. federal corporate income tax return on a consolidated basis. There are no tax credit carryforwards for U.S. federal income tax purposes as of the balance sheet date. | |||||||||||||
At January 2, 2015, various of our foreign subsidiaries had aggregate cumulative net operating losses (“NOL”) carryforwards for foreign income tax purposes of approximately $94.7 million which are subject to various provisions of each respective country. Approximately $79.5 million of the NOL carryforwards may be carried forward indefinitely. The remaining NOL carryforwards expire at various times between 2015 and 2023. | |||||||||||||
Undistributed Earnings: The undistributed earnings of our foreign subsidiaries amounted to approximately $679.4 million at January 2, 2015. We consider those earnings to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes or any withholding taxes has been recorded. Upon distribution of those earnings in the form of dividends or otherwise, we may be subject to both U.S. income taxes (subject to adjustment for foreign tax credits) and withholding taxes payable to the various foreign countries. With respect to the countries that have undistributed earnings as of January 2, 2015, according to the foreign laws and treaties in place at that time, estimated U.S. federal income tax of approximately $51.5 million and various foreign jurisdiction withholding taxes of approximately $40.2 million would be payable upon the remittance of all earnings at January 2, 2015. | |||||||||||||
Deferred Income Taxes: Significant components of our deferred tax assets and (liabilities) were as follows: | |||||||||||||
(In millions) | January 2, | January 3, | |||||||||||
2015 | 2014 | ||||||||||||
Property, equipment, intangibles and other | $ | (84.8 | ) | $ | (30.8 | ) | |||||||
Gross deferred tax liabilities | (84.8 | ) | (30.8 | ) | |||||||||
Deferred compensation and other postretirement benefits | 41.2 | 38.7 | |||||||||||
Foreign NOL carryforwards and other | 28.2 | 34.5 | |||||||||||
Accrued expenses and other | 4.7 | 10.3 | |||||||||||
Inventory reserves | 14.6 | 12 | |||||||||||
Allowance for doubtful accounts | 7.7 | 6.2 | |||||||||||
Gross deferred tax assets | 96.4 | 101.7 | |||||||||||
Deferred tax assets, net of deferred tax liabilities | 11.6 | 70.9 | |||||||||||
Valuation allowance | (11.9 | ) | (21.9 | ) | |||||||||
Net deferred tax assets | $ | (0.3 | ) | $ | 49 | ||||||||
Net current deferred tax assets | 33.7 | 32.8 | |||||||||||
Net non-current deferred tax assets | (34.0 | ) | 16.2 | ||||||||||
Net deferred tax assets | $ | (0.3 | ) | $ | 49 | ||||||||
Uncertain Tax Positions and Jurisdictions Subject to Examinations: A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2012, 2013 and 2014 is as follows: | |||||||||||||
(In millions) | |||||||||||||
Balance at December 30, 2011 | $ | 4.2 | |||||||||||
Additions for tax positions of prior years | 2.2 | ||||||||||||
Reductions for tax positions of prior years | (3.0 | ) | |||||||||||
Balance at December 28, 2012 | $ | 3.4 | |||||||||||
Additions for tax positions of prior years | 0.2 | ||||||||||||
Reductions for tax positions of prior years | (0.2 | ) | |||||||||||
Balance at January 3, 2014 | $ | 3.4 | |||||||||||
Additions for tax positions of prior years | 0.4 | ||||||||||||
Reductions for tax positions of prior years | (0.8 | ) | |||||||||||
Balance at January 2, 2015 | $ | 3 | |||||||||||
Interest and penalties related to taxes were $0.3 million in 2014 and $0.2 million in 2013. In the first quarter of 2012, we recorded a charge for interest and penalties associated with tax liabilities of $1.7 million which is included in “Other, net” ($1.1 million net of tax). We have accrued $0.7 million (includes $0.7 million for uncertain tax positions) and $2.0 million (includes $1.0 million for uncertain tax positions) at January 2, 2015 and January 3, 2014, respectively, for the payment of interest and penalties. | |||||||||||||
We estimate that of the unrecognized tax benefit balance of $3.0 million, all of which would affect the effective tax rate, $0.4 million may be resolved in a manner that would impact the effective rate within the next twelve months. The reserves for uncertain tax positions, including interest and penalties, of $3.7 million cover a range of issues, including intercompany charges and withholding taxes, and involve various taxing jurisdictions. | |||||||||||||
Only the returns for fiscal tax year 2012, 2013 and 2014 have not been examined by the Internal Revenue Service (“IRS”) in the United States, which is our most significant tax jurisdiction. An examination of years 2010 and 2011 by the IRS was completed in September 2013. For most states, fiscal tax years 2011 and later remain subject to examination. In Canada, the fiscal tax years 2010 and later are still subject to examination, while in the United Kingdom, the fiscal tax years 2013 and later remain subject to examination. |
PENSION_PLANS_POSTRETIREMENT_B
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS | PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS | ||||||||||||||||||||||||||||||||||||
Defined Benefit 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. | |||||||||||||||||||||||||||||||||||||
Accounting rules related to pensions and the policies we use generally reduce the recognition of actuarial gains and losses in the net benefit cost, as any significant actuarial gains/losses are amortized over the remaining service lives of the plan participants. These actuarial gains and losses are mainly attributable to the return on plan assets that differ from that assumed and differences in the obligation due to changes in the discount rate, plan demographic changes and other assumptions. | |||||||||||||||||||||||||||||||||||||
A significant element in determining our net periodic benefit cost in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”) is the expected return on plan assets. For 2014, we had assumed that the weighted-average expected long-term rate of return on plan assets would be 6.08%. This expected return on plan assets is included in the net periodic benefit cost for the fiscal year ended 2014. As a result of the combined effect of valuation changes in both the equity and bond markets, the plan assets produced an actual gain of approximately 10% in 2014 and 11.9% in 2013. As a result, the fair value of plan assets is $461.7 million at the end of fiscal 2014, compared to $436.7 million at the end of fiscal 2013. The difference between the expected return and the actual return on plan assets is amortized into expense over the service lives of the plan participants. These amounts are reflected on the balance sheet through charges to “Accumulated other comprehensive loss,” a component of “Stockholders’ Equity” in the Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||
The measurement date for all of our plans is December 31st. Accordingly, at the end of each fiscal year, we determine the discount rate to be used to discount the plan liabilities to their present value. The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year. In estimating this rate at the end of 2014 and 2013, we reviewed rates of return on relevant market indices (i.e., the Citigroup pension liability index and the Ryan ALM Above Median yield curves). For fiscal year end 2014, we concluded the Ryan ALM Above Median yield curves is more consistent with observable market conditions and industry standards for developing spot rate curves and is a refinement of our prior approach of utilizing the Citigroup Curve. The impact of this change is an estimated $10.8 million decrease to our December 31, 2014 projected benefit obligation (“PBO”). These rates are adjusted to match the duration of the liabilities associated with the pension plans. | |||||||||||||||||||||||||||||||||||||
In addition to the change in estimate related to discount rate yield curves, we adopted new U.S. mortality tables in 2014 for purposes of determining our mortality assumption used in the U.S. defined benefit plans' liability calculation. The new assumptions were based on the Society of Actuary's recent mortality experience study and reflect future mortality improvements as disclosed in the 2014 Social Security Administration trustees' report. The updated mortality assumption resulted in an increase of $17.7 million to the benefit obligation as of the end of 2014 after reflecting the discount rate change. | |||||||||||||||||||||||||||||||||||||
At January 2, 2015 and January 3, 2014, we determined the consolidated weighted-average discount rate of all plans to be 3.79% and 4.64%, respectively, and used these rates to measure the PBO at the end of each respective fiscal year end. The decrease in the consolidated weighted-average discount rates along with the change to the updated mortality assumption has increased the PBO, but was partially offset by a decline due to the strengthening in the U.S. dollar, the change to the Ryan ALM Above Median yield curve and the pension plan changes we made in 2012 which are outlined below. As a result, the PBO increased to $556.0 million at the end of fiscal 2014 from $467.8 million at the end of fiscal 2013. Our consolidated net unfunded status was $94.3 million at the end of fiscal 2014 compared to $31.1 million at the end of 2013. | |||||||||||||||||||||||||||||||||||||
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 contributions in 2013 and 2014. First, we offered a one-time lump sum payment option to terminated vested participants that resulted in $34.0 million of additional contributions paid by us to fund $36.2 million of payments. This resulted in a settlement charge of $15.3 million related to the immediate recognition of actuarial losses accumulated in other comprehensive income, a component of stockholders’ equity. The additional contributions of $34.0 million were made using excess cash from operations, positively influencing the funded status of the plan. Second, we made changes to our existing U.S. defined benefit plan which became effective December 31, 2013 and froze benefits provided to employees hired before June 1, 2004. These employees are covered under the personal retirement account pension formula similar to the one described below for non-union domestic employees hired on or after 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 funded in the first quarter of 2014 to the employee’s individual 401(K) account. Accordingly, in the fourth quarter of 2013, we recorded a $2.5 million defined contribution charge related to this funding. | |||||||||||||||||||||||||||||||||||||
As a result of the pension change in the U.S., all non-union domestic employees now earn a benefit under a personal retirement account (hypothetical account balance). Each year, a participant’s account receives a credit equal to 2.0% of the participant’s salary (2.5% if the participant’s years of service at August 1 of the plan year are 5 years or more). Active participants become fully vested in their hypothetical personal retirement account after 3 years of service. Interest earned on the credited amount is not credited to the personal retirement account but is contributed to the participant’s account in the Anixter Inc. Employee Savings Plan. The interest contribution equals the interest earned on the personal retirement account balance as of January 1st in the Domestic Plan and is based on the 10 year Treasury note rate as of the last business day of December. | |||||||||||||||||||||||||||||||||||||
The assets of the various defined benefit plans are held in separate independent trusts and managed by independent third party advisors. The investment objective of both the Domestic and Foreign Plans is to ensure, over the long-term life of the plans, an adequate level of assets to fund the benefits to employees and their beneficiaries at the time they are payable. In meeting this objective, we seek to achieve a level of absolute investment return consistent with a prudent level of portfolio risk. Our risk tolerance indicates an average ability to accept risk relative to that of a typical defined benefit pension plan. The risk preference is to refrain from exposing the plans to higher volatility in pursuit of potential higher returns. The measurement date for all our plans is December 31 of each year. | |||||||||||||||||||||||||||||||||||||
The Domestic Plans’ and Foreign Plans’ asset mixes as of January 2, 2015 and January 3, 2014 and our asset allocation guidelines for such plans are summarized as follows. In 2014, we updated the U.S. investment policy statement including the target asset allocation guidelines. As a result, the asset allocations for the Domestic Plans are different as of January 2, 2015 and January 3, 2014. | |||||||||||||||||||||||||||||||||||||
Domestic Plans | |||||||||||||||||||||||||||||||||||||
January 2, | Allocation Guidelines | ||||||||||||||||||||||||||||||||||||
2015 | Min | Target | Max | ||||||||||||||||||||||||||||||||||
Large capitalization U.S. stocks | 22.8 | % | 17 | % | 22 | % | 27 | % | |||||||||||||||||||||||||||||
Small to mid capitalization U.S. stocks | 27.7 | 20 | 30 | 40 | |||||||||||||||||||||||||||||||||
Emerging market equity | 8.9 | 5 | 10 | 15 | |||||||||||||||||||||||||||||||||
Total equity securities | 59.4 | 62 | |||||||||||||||||||||||||||||||||||
Fixed income investments | 37.1 | 31 | 38 | 45 | |||||||||||||||||||||||||||||||||
Cash equivalents | 3.5 | — | — | 10 | |||||||||||||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||||||||||||||
Domestic Plans | |||||||||||||||||||||||||||||||||||||
January 3, | Allocation Guidelines | ||||||||||||||||||||||||||||||||||||
2014 | Min | Target | Max | ||||||||||||||||||||||||||||||||||
Large capitalization U.S. stocks | 35.2 | % | 20 | % | 30 | % | 40 | % | |||||||||||||||||||||||||||||
Small capitalization U.S. stocks | 21.5 | 15 | 20 | 25 | |||||||||||||||||||||||||||||||||
International stocks | 17.6 | 15 | 20 | 25 | |||||||||||||||||||||||||||||||||
Total equity securities | 74.3 | 70 | |||||||||||||||||||||||||||||||||||
Fixed income investments | 21.9 | 25 | 30 | 35 | |||||||||||||||||||||||||||||||||
Other investments | 3.8 | — | — | — | |||||||||||||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||||||||||||||
Foreign Plans | |||||||||||||||||||||||||||||||||||||
January 2, | January 3, | Allocation | |||||||||||||||||||||||||||||||||||
2015 | 2014 | Guidelines | |||||||||||||||||||||||||||||||||||
Target | |||||||||||||||||||||||||||||||||||||
Equity securities | 46 | % | 46 | % | 48 | % | |||||||||||||||||||||||||||||||
Fixed income investments | 47 | 45 | 45 | ||||||||||||||||||||||||||||||||||
Other investments | 7 | 9 | 7 | ||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
The pension committees meet regularly to assess investment performance and reallocate assets that fall outside of its allocation guidelines. The variations between the allocation guidelines and actual asset allocations reflect relative performance differences in asset classes. From time to time, including during fiscal 2014, we periodically rebalance our asset portfolios to be in line with our allocation guidelines. | |||||||||||||||||||||||||||||||||||||
For 2014, the U.S. investment policy guidelines were as follows: | |||||||||||||||||||||||||||||||||||||
• | Each asset class is actively managed by one investment manager | ||||||||||||||||||||||||||||||||||||
• | Each asset class may be invested in a commingled fund, mutual fund, or separately managed account | ||||||||||||||||||||||||||||||||||||
• | Investment in Exchange Traded Funds (ETFs) is permissible | ||||||||||||||||||||||||||||||||||||
• | Each manager is expected to be “fully invested” with minimal cash holdings | ||||||||||||||||||||||||||||||||||||
• | The use of options and futures is limited to covered hedges only | ||||||||||||||||||||||||||||||||||||
• | Each equity asset manager has a minimum number of individual company stocks that need to be held and there are restrictions on the total market value that can be invested in any one industry and the percentage that any one company can be of the portfolio total | ||||||||||||||||||||||||||||||||||||
• | The fixed income funds are diversified by issuer and industry, with maximum limits on investment in U.S. Treasuries and U.S. Government Agencies | ||||||||||||||||||||||||||||||||||||
The investment policies for the Foreign plans are the responsibility of the various trustees. Generally, the investment policy guidelines are as follows: | |||||||||||||||||||||||||||||||||||||
• | Make sure that the obligations to the beneficiaries of the Plan can be met | ||||||||||||||||||||||||||||||||||||
• | Maintain funds at a level to meet the minimum funding requirements | ||||||||||||||||||||||||||||||||||||
• | The investment managers are expected to provide a return, within certain tracking tolerances, close to that of the relevant market’s indices | ||||||||||||||||||||||||||||||||||||
The expected long-term rate of return on both the Domestic and Foreign Plans’ assets reflects the average rate of earnings expected on the invested assets and future assets to be invested to provide for the benefits included in the projected benefit obligation. We use historic plan asset returns combined with current market conditions to estimate the rate of return. The expected rate of return on plan assets is a long-term assumption based on an analysis of historical and forward looking returns considering the respective plan’s actual and target asset mix. The weighted-average expected rate of return on plan assets used in the determination of net periodic pension cost for 2014 is 6.08%. | |||||||||||||||||||||||||||||||||||||
The following table sets forth the changes and the end of year components of "Accumulated other comprehensive loss" for the defined benefit plans: | |||||||||||||||||||||||||||||||||||||
(In millions) | January 2, | January 3, | |||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Changes to Balance: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 32.3 | $ | 98.8 | |||||||||||||||||||||||||||||||||
Recognized prior service cost | 4.6 | 4.5 | |||||||||||||||||||||||||||||||||||
Recognized net actuarial gain | (3.5 | ) | (9.3 | ) | |||||||||||||||||||||||||||||||||
Prior service credit arising in current year | (3.1 | ) | (2.7 | ) | |||||||||||||||||||||||||||||||||
Net actuarial loss (gain) arising in current year | 76.5 | (59.0 | ) | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 106.8 | $ | 32.3 | |||||||||||||||||||||||||||||||||
Components of Balance: | |||||||||||||||||||||||||||||||||||||
Prior service credit | $ | (34.2 | ) | $ | (38.8 | ) | |||||||||||||||||||||||||||||||
Net actuarial loss | 140.9 | 71 | |||||||||||||||||||||||||||||||||||
Transitional obligation | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||||
$ | 106.8 | $ | 32.3 | ||||||||||||||||||||||||||||||||||
Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2015 are as follows: | |||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | $ | (4.6 | ) | ||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | 9.4 | ||||||||||||||||||||||||||||||||||||
Total amortization expected | $ | 4.8 | |||||||||||||||||||||||||||||||||||
The following represents a reconciliation of the funded status of our pension plans from the beginning of fiscal 2013 to the end of fiscal 2014: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 224.9 | $ | 248.9 | $ | 242.9 | $ | 232.2 | $ | 467.8 | $ | 481.1 | |||||||||||||||||||||||||
Service cost | 3.7 | 7 | 5.9 | 6.7 | 9.6 | 13.7 | |||||||||||||||||||||||||||||||
Interest cost | 10.8 | 9.6 | 10.6 | 9.4 | 21.4 | 19 | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | 45.3 | (33.2 | ) | 52.1 | 0.8 | 97.4 | (32.4 | ) | |||||||||||||||||||||||||||||
Plan amendment | — | (0.2 | ) | (0.1 | ) | — | (0.1 | ) | (0.2 | ) | |||||||||||||||||||||||||||
Benefits paid from plan assets | (6.5 | ) | (6.4 | ) | (13.9 | ) | (6.3 | ) | (20.4 | ) | (12.7 | ) | |||||||||||||||||||||||||
Benefits paid from Company assets | (0.8 | ) | (0.8 | ) | — | — | (0.8 | ) | (0.8 | ) | |||||||||||||||||||||||||||
Plan participants contributions | — | — | 0.3 | 0.2 | 0.3 | 0.2 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | (19.2 | ) | (0.1 | ) | (19.2 | ) | (0.1 | ) | |||||||||||||||||||||||||||
Ending balance | $ | 277.4 | $ | 224.9 | $ | 278.6 | $ | 242.9 | $ | 556 | $ | 467.8 | |||||||||||||||||||||||||
Change in plan assets at fair value: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 213.8 | $ | 183.7 | $ | 222.9 | $ | 202 | $ | 436.7 | $ | 385.7 | |||||||||||||||||||||||||
Actual return on plan assets | 13.9 | 31.9 | 31.1 | 17 | 45 | 48.9 | |||||||||||||||||||||||||||||||
Company contributions to plan assets | 8.3 | 4.6 | 7.7 | 9.9 | 16 | 14.5 | |||||||||||||||||||||||||||||||
Benefits paid from plan assets | (6.5 | ) | (6.4 | ) | (13.9 | ) | (6.3 | ) | (20.4 | ) | (12.7 | ) | |||||||||||||||||||||||||
Plan participants contributions | — | — | 0.3 | 0.2 | 0.3 | 0.2 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | (15.9 | ) | 0.1 | (15.9 | ) | 0.1 | |||||||||||||||||||||||||||||
Ending balance | $ | 229.5 | $ | 213.8 | $ | 232.2 | $ | 222.9 | $ | 461.7 | $ | 436.7 | |||||||||||||||||||||||||
Reconciliation of funded status: | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | (277.4 | ) | $ | (224.9 | ) | $ | (278.6 | ) | $ | (242.9 | ) | $ | (556.0 | ) | $ | (467.8 | ) | |||||||||||||||||||
Plan assets at fair value | 229.5 | 213.8 | 232.2 | 222.9 | 461.7 | 436.7 | |||||||||||||||||||||||||||||||
Funded status | $ | (47.9 | ) | $ | (11.1 | ) | $ | (46.4 | ) | $ | (20.0 | ) | $ | (94.3 | ) | $ | (31.1 | ) | |||||||||||||||||||
Included in the 2014 and 2013 funded status is accrued benefit cost of approximately $16.8 million and $14.8 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations. | |||||||||||||||||||||||||||||||||||||
Noncurrent asset | $ | — | $ | 3.7 | $ | 5 | $ | 2.2 | $ | 5 | $ | 5.9 | |||||||||||||||||||||||||
Current liability | (0.8 | ) | (0.8 | ) | — | — | (0.8 | ) | (0.8 | ) | |||||||||||||||||||||||||||
Noncurrent liability | (47.1 | ) | (14.0 | ) | (51.4 | ) | (22.2 | ) | (98.5 | ) | (36.2 | ) | |||||||||||||||||||||||||
Funded status | $ | (47.9 | ) | $ | (11.1 | ) | $ | (46.4 | ) | $ | (20.0 | ) | $ | (94.3 | ) | $ | (31.1 | ) | |||||||||||||||||||
Weighted-average assumptions used for measurement of the projected benefit obligation: | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.14 | % | 4.81 | % | 3.44 | % | 4.49 | % | 3.79 | % | 4.64 | % | |||||||||||||||||||||||||
Salary growth rate | 4.6 | % | 4.63 | % | 3.12 | % | 3.27 | % | 3.79 | % | 4.04 | % | |||||||||||||||||||||||||
The following represents the funded components of net periodic pension cost as reflected in our Consolidated Statements of Income and the weighted-average assumptions used to measure net periodic cost for the years ended January 2, 2015, January 3, 2014 and December 28, 2012: | |||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Components of net periodic cost: | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 4.8 | $ | 8.5 | $ | 10.1 | $ | 5.9 | $ | 6.7 | $ | 5.6 | $ | 10.7 | $ | 15.2 | $ | 15.7 | |||||||||||||||||||
Interest cost | 10.8 | 9.6 | 12.4 | 10.6 | 9.4 | 9.5 | 21.4 | 19 | 21.9 | ||||||||||||||||||||||||||||
Expected return on plan assets | (13.9 | ) | (11.8 | ) | (11.3 | ) | (12.5 | ) | (10.5 | ) | (9.9 | ) | (26.4 | ) | (22.3 | ) | (21.2 | ) | |||||||||||||||||||
Net amortization | (2.2 | ) | 3.1 | 8.3 | 1.1 | 1.7 | 1 | (1.1 | ) | 4.8 | 9.3 | ||||||||||||||||||||||||||
Settlement loss | — | — | 15.3 | — | — | — | — | — | 15.3 | ||||||||||||||||||||||||||||
Net periodic cost (benefit) | $ | (0.5 | ) | $ | 9.4 | $ | 34.8 | $ | 5.1 | $ | 7.3 | $ | 6.2 | $ | 4.6 | $ | 16.7 | $ | 41 | ||||||||||||||||||
Weighted-average assumption used to measure net periodic cost: | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.81 | % | 3.93 | % | 4.37 | % | 4.49 | % | 4.23 | % | 4.84 | % | 4.64 | % | 4.08 | % | 4.56 | % | |||||||||||||||||||
Expected return on plan assets | 6.5 | % | 6.5 | % | 7 | % | 5.67 | % | 5.27 | % | 5.29 | % | 6.08 | % | 5.86 | % | 6.1 | % | |||||||||||||||||||
Salary growth rate | 4.63 | % | 3.9 | % | 3.9 | % | 3.27 | % | 3.13 | % | 3.13 | % | 4.04 | % | 3.62 | % | 3.57 | % | |||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||||||||||||||
The following presents information about the Plan’s assets measured at fair value on a recurring basis at the end of fiscal 2014, and the valuation techniques used by the Plan to determine those fair values. The inputs used in the determination of these fair values are categorized according to the fair value hierarchy as being Level 1, Level 2 or Level 3. | |||||||||||||||||||||||||||||||||||||
In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets that the Plan has the ability to access. The majority of our pension assets valued by Level 1 inputs are primarily comprised of Domestic equity which are traded actively on public exchanges and valued at quoted prices at the end of the fiscal year. | |||||||||||||||||||||||||||||||||||||
Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. The majority of our pension assets valued by Level 2 inputs are comprised of common/collective/pool funds (i.e., mutual funds). These assets are valued at their Net Asset Values (“NAV”) and considered observable inputs, or Level 2. | |||||||||||||||||||||||||||||||||||||
Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. We do not have any pension assets valued by Level 3 inputs. | |||||||||||||||||||||||||||||||||||||
In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Plan’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset. | |||||||||||||||||||||||||||||||||||||
Disclosures concerning assets measured at fair value on a recurring basis at January 2, 2015 and January 3, 2014, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by us are as follows: | |||||||||||||||||||||||||||||||||||||
As of January 2, 2015 | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||
Asset Categories: | |||||||||||||||||||||||||||||||||||||
Cash and short-term investments | $ | 8.1 | $ | — | $ | 8.1 | $ | 1.2 | $ | — | $ | 1.2 | $ | 9.3 | $ | — | $ | 9.3 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Domestic | 116 | — | 116 | 0.3 | 59.7 | 60 | 116.3 | 59.7 | 176 | ||||||||||||||||||||||||||||
International (a) | 20.4 | — | 20.4 | 2.2 | 45.7 | 47.9 | 22.6 | 45.7 | 68.3 | ||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
Domestic | — | 1.5 | 1.5 | 1 | 79.7 | 80.7 | 1 | 81.2 | 82.2 | ||||||||||||||||||||||||||||
Corporate bonds | — | 83.5 | 83.5 | 0.7 | 27.1 | 27.8 | 0.7 | 110.6 | 111.3 | ||||||||||||||||||||||||||||
Insurance funds | — | — | — | — | 14.5 | 14.5 | — | 14.5 | 14.5 | ||||||||||||||||||||||||||||
Other | — | — | — | 0.1 | — | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||
Total at January 2, 2015 | $ | 144.5 | $ | 85 | $ | 229.5 | $ | 5.5 | $ | 226.7 | $ | 232.2 | $ | 150 | $ | 311.7 | $ | 461.7 | |||||||||||||||||||
(a) | Investment in funds outside the country where the pension plan originates is considered International. | ||||||||||||||||||||||||||||||||||||
As of January 3, 2014 | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||
Asset Categories: | |||||||||||||||||||||||||||||||||||||
Cash and short-term investments | $ | 8.1 | $ | — | $ | 8.1 | $ | 2.6 | $ | — | $ | 2.6 | $ | 10.7 | $ | — | $ | 10.7 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Domestic | 121.2 | — | 121.2 | 0.2 | 58.7 | 58.9 | 121.4 | 58.7 | 180.1 | ||||||||||||||||||||||||||||
International (a) | — | 37.6 | 37.6 | — | 44 | 44 | — | 81.6 | 81.6 | ||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
Domestic | — | 32.9 | 32.9 | 0.7 | 68.9 | 69.6 | 0.7 | 101.8 | 102.5 | ||||||||||||||||||||||||||||
Corporate bonds | — | 14 | 14 | 0.7 | 30.9 | 31.6 | 0.7 | 44.9 | 45.6 | ||||||||||||||||||||||||||||
Insurance funds | — | — | — | — | 15.6 | 15.6 | — | 15.6 | 15.6 | ||||||||||||||||||||||||||||
Other | — | — | — | — | 0.6 | 0.6 | — | 0.6 | 0.6 | ||||||||||||||||||||||||||||
Total at January 3, 2014 | $ | 129.3 | $ | 84.5 | $ | 213.8 | $ | 4.2 | $ | 218.7 | $ | 222.9 | $ | 133.5 | $ | 303.2 | $ | 436.7 | |||||||||||||||||||
(a) | Investment in funds outside the country where the pension plan originates is considered International. | ||||||||||||||||||||||||||||||||||||
We estimated future benefits payments are as follows at the end of 2014: | |||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||||||||||||||
(In millions) | Domestic | Foreign | Total | ||||||||||||||||||||||||||||||||||
2015 | $ | 8.7 | $ | 7 | $ | 15.7 | |||||||||||||||||||||||||||||||
2016 | 9.5 | 7 | 16.5 | ||||||||||||||||||||||||||||||||||
2017 | 10.4 | 7.6 | 18 | ||||||||||||||||||||||||||||||||||
2018 | 11.2 | 7.7 | 18.9 | ||||||||||||||||||||||||||||||||||
2019 | 12 | 7.8 | 19.8 | ||||||||||||||||||||||||||||||||||
2020-2024 | 71.6 | 43.8 | 115.4 | ||||||||||||||||||||||||||||||||||
Total | $ | 123.4 | $ | 80.9 | $ | 204.3 | |||||||||||||||||||||||||||||||
The accumulated benefit obligation in 2014 and 2013 was $275.2 million and $223.3 million, respectively, for the Domestic Plans and $241.4 million and $211.2 million, respectively, for the Foreign Plans. We had ten plans in 2014 and nine plans in 2013 where the accumulated benefit obligation was in excess of the fair value of plan assets. For pension plans with accumulated benefit obligations in excess of plan assets the aggregate pension accumulated benefit obligation was $398.9 million and $121.6 million for 2014 and 2013, respectively, and aggregate fair value of plan assets was $334.9 million and $103.6 million for 2014 and 2013, respectively. | |||||||||||||||||||||||||||||||||||||
We currently estimate that we will make contributions of approximately $9.0 million to our Domestic Plans and $9.5 million to our Foreign Plans in 2015. In addition, we estimate that we will make $0.8 million of benefit payments directly to participants of our two domestic unfunded non-qualified pension plans. | |||||||||||||||||||||||||||||||||||||
Defined Contribution Plan | |||||||||||||||||||||||||||||||||||||
Anixter Inc. adopted the Anixter Inc. Employee Savings Plan effective January 1, 1994. The Plan is a defined-contribution plan covering all of our non-union domestic employees. Participants are eligible and encouraged to enroll in the tax-deferred plan on their date of hire and are automatically enrolled approximately 60 days after their date of hire unless they opt out. The savings plan is subject to the provisions of ERISA. Effective January 1, 2014, we began matching contributions to equal 50% on the first 5% of a participant’s contribution. We also have certain foreign defined contribution plans. Our contributions to these plans are based upon various levels of employee participation and legal requirements. The total expense related to defined contribution plans was $11.0 million, $9.4 million and $6.6 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||||||||||||||
Deferred Compensation Plan | |||||||||||||||||||||||||||||||||||||
A non-qualified deferred compensation plan was implemented on January 1, 1995. The plan permits selected employees to make pre-tax deferrals of salary and bonus. Interest is accrued monthly on the deferred compensation balances based on the average 10-year Treasury note rate for the previous three months times a factor of 1.4, and the rate is further adjusted if certain of our financial goals are achieved. The plan provides for benefit payments upon retirement, death, disability, termination or other scheduled dates determined by the participant. At January 2, 2015 and January 3, 2014, the deferred compensation liability included in "Other liabilities" on the Consolidated Balance Sheets was $45.7 million and $46.1 million, respectively. | |||||||||||||||||||||||||||||||||||||
Concurrent with the implementation of the deferred compensation plan, we purchased variable, separate account life insurance policies on the plan participants with benefits accruing to us. To provide for the liabilities associated with the deferred compensation plan and an executive non-qualified defined benefit plan, fixed general account “increasing whole life” insurance policies were purchased on the lives of certain participants. Prior to 2006, we paid level annual premiums on the above company-owned policies. The last premium was paid in 2005. Policy proceeds are payable to us upon the insured participant’s death. At January 2, 2015 and January 3, 2014, the cash surrender value of $35.5 million and $34.6 million, respectively, was recorded under this program and reflected in “Other assets” on the Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||||||
We have no other post-retirement benefits other than the pension and savings plans described herein. |
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended | |||||||||||||||
Jan. 02, 2015 | ||||||||||||||||
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY | |||||||||||||||
Preferred Stock | ||||||||||||||||
We have the authority to issue 15.0 million shares of preferred stock, par value $1.00 per share, none of which were outstanding at the end of fiscal 2014 and 2013. | ||||||||||||||||
Common Stock | ||||||||||||||||
We have the authority to issue 100.0 million shares of common stock, par value $1.00 per share, of which 33.1 million shares and 32.9 million shares were outstanding at the end of fiscal 2014 and 2013, respectively. | ||||||||||||||||
Share Repurchases | ||||||||||||||||
We did not repurchase any shares during 2014 and 2013. However, during 2012, we repurchased and retired 1.0 million of our outstanding shares for $59.2 million at an average cost of $59.16 per share. Purchases in 2012 were made in the open market using available cash on hand. | ||||||||||||||||
Special Dividend | ||||||||||||||||
On November 25, 2013, our Board of Directors declared a special dividend of $5.00 per common share, or approximately $166.5 million, as a return of excess capital to shareholders. The dividend declared was recorded as a reduction to retained earnings at the end of 2013 and $164.2 million was paid on January 2, 2014 to shareholders of record on December 11, 2013. The difference between the amount declared and paid of $2.3 million was accrued as of January 3, 2014, and is being paid to holders of unvested stock units as described below. | ||||||||||||||||
On April 24, 2012, our Board of Directors declared a special dividend of $4.50 per common share, or approximately $153.1 million, as a return of excess capital to shareholders. The dividend declared was recorded as a reduction to retained earnings at the end of the second quarter of 2012 and $150.6 million was paid on May 31, 2012 to shareholders of record on May 16, 2012. The difference between the amount declared and paid of $2.5 million was accrued as of December 28, 2012 and is being paid to holders of unvested stock units as described below. | ||||||||||||||||
In accordance with the anti-dilution provisions of our stock incentive plans, the exercise price and number of options outstanding were adjusted to reflect the special dividends. For the 2013 special dividend, the average exercise price of outstanding options decreased from $54.70 to $51.61, and the number of outstanding options increased insignificantly. For the 2012 special dividend, the average exercise price of outstanding options decreased from $57.04 to $53.31, and the number of outstanding options increased insignificantly. In addition, holders of unvested stock units that were held as of the record dates receive a make-whole payment equivalent to the dividend amounts upon vesting of the units. Accordingly, these make-whole payments were $1.7 million, $1.5 million and $0.8 million in 2014, 2013 and 2012, respectively. Payments were made for units that were outstanding at the time of dividends declared in earlier years. These changes resulted in no additional compensation expense. | ||||||||||||||||
Stock-Based Compensation | ||||||||||||||||
At January 2, 2015, there were 1.9 million shares reserved for issuance under all incentive plans. | ||||||||||||||||
Stock Units | ||||||||||||||||
The grant-date value of the stock units is amortized and converted to outstanding shares of common stock on a one-for-one basis over a three, four or six-year vesting period from the date of grant based on the specific terms of the grant. Compensation expense, net of the reversal of costs associated with forfeitures, associated with the stock units was $10.6 million, $10.0 million and $10.8 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||
Under the current stock incentive plans, we pay our non-employee directors annual retainer fees and, at their election, meeting fees in the form of stock units. Currently, these units are granted quarterly and vest immediately. Therefore, we include these units in our common stock outstanding on the date of vesting as the conditions for conversion are met. However, the actual issuance of shares related to all director units are deferred until a pre-arranged time selected by each director. Compensation expense associated with the director stock units was $1.9 million, $1.9 million and $1.8 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||
The total fair value of stock units that vested was $11.7 million in 2014 and $12.2 million in both 2013 and 2012. | ||||||||||||||||
The following table summarizes the activity under the director and employee stock unit plans: | ||||||||||||||||
(units in thousands) | Director | Weighted | Employee | Weighted | ||||||||||||
Stock | Average | Stock Units (c) | Average | |||||||||||||
Units (a) | Grant Date | Grant Date | ||||||||||||||
Value (b) | Value (b) | |||||||||||||||
Outstanding balance at December 30, 2011 | 250.2 | $ | 42.74 | 617.1 | $ | 48.16 | ||||||||||
Granted | 30.7 | 59.6 | 163.9 | 69.12 | ||||||||||||
Converted | (9.0 | ) | 43.47 | (238.7 | ) | 43.51 | ||||||||||
Canceled | — | — | (24.1 | ) | 57.24 | |||||||||||
Outstanding balance at December 28, 2012 | 271.9 | 44.62 | 518.2 | 56.68 | ||||||||||||
Granted | 30.6 | 76.13 | 167.5 | 68.64 | ||||||||||||
Converted | — | — | (213.6 | ) | 46.19 | |||||||||||
Canceled | — | — | (18.8 | ) | 66.63 | |||||||||||
Outstanding balance at January 3, 2014 | 302.5 | 47.81 | 453.3 | 65.64 | ||||||||||||
Granted | 20.3 | 93.26 | 126.8 | 106.9 | ||||||||||||
Converted | (39.5 | ) | 45.82 | (163.1 | ) | 59.92 | ||||||||||
Canceled | — | — | (11.9 | ) | 72.53 | |||||||||||
Outstanding balance at January 2, 2015 | 283.3 | $ | 51.42 | 405.1 | $ | 80.65 | ||||||||||
(a) | All director units are considered convertible although each individual has elected to defer conversion until a pre-arranged time. This is because all stock units, including director units, are included in our common stock outstanding on the date of vesting as the conditions for conversion have been met. | |||||||||||||||
(b) | Director and employee stock units are granted at no cost to the participants. | |||||||||||||||
(c) | All employee stock units outstanding are not vested at year end and are expected to vest. | |||||||||||||||
The weighted-average remaining contractual term for outstanding employee units is 2.1 years. | ||||||||||||||||
The aggregate intrinsic value of units converted into stock represents the total pre-tax intrinsic value (calculated using our stock price on the date of conversion multiplied by the number of units converted) that was received by unit holders. The aggregate intrinsic value of units converted into stock for 2014, 2013 and 2012 was $21.0 million, $14.6 million and $17.2 million, respectively. | ||||||||||||||||
The aggregate intrinsic value of units outstanding represents the total pre-tax intrinsic value (calculated using our closing stock price on the last trading day of the fiscal year multiplied by the number of units outstanding) that will be received by the unit recipients upon vesting. The aggregate intrinsic value of units outstanding for 2014, 2013 and 2012 was $60.7 million, $67.7 million and $49.5 million, respectively. | ||||||||||||||||
The aggregate intrinsic value of units convertible represents the total pre-tax intrinsic value (calculated using our closing stock price on the last trading day of the fiscal year multiplied by the number of units convertible) that would have been received by the unit holders. The aggregate intrinsic value of units convertible for 2014, 2013 and 2012 was $25.0 million, $27.1 million and $17.0 million, respectively. | ||||||||||||||||
Stock Options | ||||||||||||||||
Options previously granted under these plans have been granted with exercise prices at the fair market value of the common stock on the date of grant. All options expire ten years after the date of grant. We generally issue new shares to satisfy stock option exercises as opposed to adjusting treasury shares. The fair value of stock option grants is amortized over the respective vesting period representing the requisite service period. | ||||||||||||||||
We did not grant any stock options to employees during 2014. During 2013 and 2012, we granted stock options to employees with a grant-date fair market value of approximately $1.6 million and $1.5 million, respectively. These options were granted with vesting periods of four years representing the requisite service period based on the specific terms of the grant. The weighted-average fair value of the stock option grants was estimated at the date of the grants using the Black-Scholes option pricing model with the following assumptions and resulting value: | ||||||||||||||||
Expected | Risk-Free | Expected | Average | Resulting | ||||||||||||
Stock Price | Interest Rate | Dividend | Expected | Black Scholes | ||||||||||||
Volatility | Yield | Term | Value | |||||||||||||
2013 Grants | 42 | % | 1.1 | % | — | 6.13 years | $ | 28.57 | ||||||||
2012 Grants | 40.2 | % | 1.2 | % | — | 6.13 years | $ | 28.04 | ||||||||
Due to changes in the population of employees that receive options over the past several years together with changes in stock incentive plans (which have included a combination of restricted stock units as well as stock options), historical exercise behavior on previous grants does not provide a reasonable estimate for future exercise activity for employees who have been awarded stock options in the past three years. Therefore, the average expected term was calculated using the simplified method, as defined by U.S. GAAP, for estimating the expected term. Historical volatility was used to calculate the expected stock price volatility. | ||||||||||||||||
Our compensation expense associated with the stock options in 2014, 2013 and 2012 was $1.3 million, $1.7 million and $2.0 million, respectively. The total fair value of stock options that vested was $1.7 million, $2.0 million and $3.1 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||
The following table summarizes the activity under the employee option plans: | ||||||||||||||||
(options in thousands) | Employee | Weighted-average | ||||||||||||||
Options | Exercise Price | |||||||||||||||
Balance at December 30, 2011 | 756.3 | $ | 49.26 | |||||||||||||
Adjusted (a) | 50.9 | 49.77 | ||||||||||||||
Granted | 55.3 | 69.4 | ||||||||||||||
Exercised | (113.5 | ) | 31.1 | |||||||||||||
Balance at December 28, 2012 | 749 | 50.14 | ||||||||||||||
Adjusted (a) | 39.4 | 47.91 | ||||||||||||||
Granted | 56 | 68.64 | ||||||||||||||
Exercised | (149.0 | ) | 54.17 | |||||||||||||
Balance at January 3, 2014 | 695.4 | 47.93 | ||||||||||||||
Exercised | (162.4 | ) | 44.4 | |||||||||||||
Balance at January 2, 2015 | 533 | $ | 49 | |||||||||||||
Options exercisable at year-end: | ||||||||||||||||
2012 (a) | 494.3 | $ | 45.9 | |||||||||||||
2013 (a) | 486.1 | $ | 43.62 | |||||||||||||
2014 | 405.6 | $ | 44.65 | |||||||||||||
(a) | In accordance with the anti-dilution provisions of our stock incentive plans, the exercise price and number of options outstanding and exercisable were adjusted to reflect the special dividend in 2013 and 2012. These changes resulted in no additional compensation expense. | |||||||||||||||
The weighted-average remaining contractual term for options outstanding for 2014 was 6.0 years. The weighted-average remaining contractual term for options exercisable for 2014 was 5.2 years. | ||||||||||||||||
The aggregate intrinsic value of options exercised represents the total pre-tax intrinsic value (calculated as the difference between our stock price on the date of exercise and the exercise price, multiplied by the number of options exercised) that was received by the option holders. The aggregate intrinsic value of options exercised for 2014, 2013 and 2012 was $7.9 million, $2.8 million and $3.8 million, respectively. | ||||||||||||||||
The aggregate intrinsic value of options outstanding represents the total pre-tax intrinsic value (calculated as the difference between our closing stock price on the last trading day of each fiscal year and the weighted-average exercise price, multiplied by the number of options outstanding at the end of the fiscal year) that could be received by the option holders if such option holders exercised all options outstanding at fiscal year-end. The aggregate intrinsic value of options outstanding for 2014, 2013 and 2012 was $20.9 million, $29.0 million and $19.0 million, respectively. | ||||||||||||||||
The aggregate intrinsic value of options exercisable represents the total pre-tax intrinsic value (calculated as the difference between our closing stock price on the last trading day of each fiscal year and the weighted-average exercise price, multiplied by the number of options exercisable at the end of the fiscal year) that would have been received by the option holders had all option holders elected to exercise the options at fiscal year-end. The aggregate intrinsic value of options exercisable for 2014, 2013 and 2012 was $17.7 million, $22.4 million and $8.3 million, respectively. | ||||||||||||||||
Summary of Non-Vested Shares | ||||||||||||||||
The following table summarizes the changes to the unvested stock options: | ||||||||||||||||
(shares in thousands) | Non-vested | Weighted-average | ||||||||||||||
Shares (a) | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Balance at January 3, 2014 | 209.3 | $ | 23.69 | |||||||||||||
Vested | (81.9 | ) | 20.35 | |||||||||||||
Balance at January 2, 2015 | 127.4 | $ | 25.84 | |||||||||||||
(a) | All unvested stock options are expected to vest. | |||||||||||||||
As of January 2, 2015, there was $13.9 million and $1.4 million of total unrecognized compensation cost related to unvested stock units and options granted to employees, respectively, which is expected to be recognized over a weighted-average period of 1.6 years and 1.4 years, respectively. |
BUSINESS_SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended | |||||||||||||||||||||
Jan. 02, 2015 | ||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS | |||||||||||||||||||||
We are a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products, 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. No customer accounted for more than 3% of sales in 2014. | ||||||||||||||||||||||
Segment Financial Information | ||||||||||||||||||||||
Segment information for 2014, 2013 and 2012 was as follows: | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||
2014 | ECS (a) | W&C | Fasteners | Corporate (b) | Total | |||||||||||||||||
Net Sales | $ | 3,411.40 | $ | 2,095.60 | $ | 938.5 | $ | — | $ | 6,445.50 | ||||||||||||
Operating income | 176.4 | 145.4 | 39.1 | — | 360.9 | |||||||||||||||||
Depreciation | 12.5 | 7.5 | 4 | — | 24 | |||||||||||||||||
Amortization of intangibles | 4.9 | 5.7 | 1.1 | — | 11.7 | |||||||||||||||||
Total assets | 1,867.20 | 972.5 | 406.9 | 339.9 | 3,586.50 | |||||||||||||||||
Capital expenditures | 2.6 | 1.3 | 6.1 | 30.3 | 40.3 | |||||||||||||||||
2013 | ECS | W&C | Fasteners | Corporate (b) | Total | |||||||||||||||||
Net Sales | $ | 3,174.50 | $ | 2,116.60 | $ | 935.4 | $ | — | $ | 6,226.50 | ||||||||||||
Operating income | 160.5 | 161.8 | 32.5 | — | 354.8 | |||||||||||||||||
Depreciation | 11.5 | 7.1 | 3.5 | — | 22.1 | |||||||||||||||||
Amortization of intangibles | 0.8 | 5.9 | 1.3 | — | 8 | |||||||||||||||||
Total assets | 1,220.00 | 938.3 | 413.9 | 283.7 | 2,855.90 | |||||||||||||||||
Capital expenditures | 2.1 | 1 | 4.9 | 24.2 | 32.2 | |||||||||||||||||
2012 | ECS | W&C | Fasteners | Corporate (b) | Total | |||||||||||||||||
Net Sales | $ | 3,236.30 | $ | 2,111.20 | $ | 905.6 | $ | — | $ | 6,253.10 | ||||||||||||
Operating income (c) | 156.7 | 166.5 | (29.9 | ) | (10.8 | ) | 282.5 | |||||||||||||||
Depreciation | 10.8 | 6.5 | 5.2 | — | 22.5 | |||||||||||||||||
Amortization of intangibles | 0.9 | 3.9 | 5.2 | — | 10 | |||||||||||||||||
Total assets | 1,272.40 | 997.9 | 461.6 | 352.1 | 3,084.00 | |||||||||||||||||
Capital expenditures | 4.1 | 1.1 | 5.3 | 23.7 | 34.2 | |||||||||||||||||
(a) | At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the ECS business segments. For further information, see Note 2. "Business Combination" . | |||||||||||||||||||||
(b) | Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. | |||||||||||||||||||||
(c) | In connection with our annual assessment of goodwill recoverability in the third quarter of 2012, we recorded a non-cash impairment charge to write-off the goodwill of $10.8 million associated with our former European reporting unit. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | |||||||||||||||||||||
The items impacting operating income by segment are reflected in the tables below. All other items impacted consolidated results only and were not allocated to segments. In 2013, there were no items that significantly impacted operating income. | ||||||||||||||||||||||
(In millions) | ECS | W&C | Fasteners | Corporate (a) | Total | |||||||||||||||||
2014 acquisition and integration costs | $ | (7.0 | ) | $ | (0.2 | ) | $ | (1.1 | ) | $ | — | $ | (8.3 | ) | ||||||||
Total of items impacting operating income in 2014 | $ | (7.0 | ) | $ | (0.2 | ) | $ | (1.1 | ) | $ | — | $ | (8.3 | ) | ||||||||
2013 none | — | — | — | — | — | |||||||||||||||||
2012 impairment of goodwill and long-lived assets | $ | (0.3 | ) | $ | (0.1 | ) | $ | (37.3 | ) | $ | (10.8 | ) | $ | (48.5 | ) | |||||||
2012 post-retirement pension charges | (8.2 | ) | (5.7 | ) | (1.4 | ) | — | (15.3 | ) | |||||||||||||
2012 restructuring charge | (4.1 | ) | (2.8 | ) | (3.2 | ) | — | (10.1 | ) | |||||||||||||
2012 inventory lower-of-cost-or-market adjustment | — | — | (1.2 | ) | — | (1.2 | ) | |||||||||||||||
Total of items impacting operating income in 2012 | $ | (12.6 | ) | $ | (8.6 | ) | $ | (43.1 | ) | $ | (10.8 | ) | $ | (75.1 | ) | |||||||
(a) In connection with our annual assessment of goodwill recoverability in the third quarter, we recorded a non-cash impairment charge to write-off the goodwill of $10.8 million associated with our former European reporting unit. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | ||||||||||||||||||||||
The categorization of net sales by end market is determined using a variety of data points including the technical characteristics of the product, the “sold to” customer information, the “ship to” customer information and the end customer product or application into which our product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, we reclassify net sales by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market. | ||||||||||||||||||||||
Geographic Information | ||||||||||||||||||||||
We attribute foreign sales based on the location of the customer purchasing the product. In North America (United States and Canada), sales in the United States were $3,683.2 million, $3,529.7 million and $3,582.4 million in 2014, 2013 and 2012, respectively. Canadian sales were $770.3 million, $762.4 million and $816.7 million in 2014, 2013 and 2012, respectively. No other individual foreign country’s net sales within Europe or the Emerging Markets (Asia Pacific and Latin America) were material in 2014, 2013 and 2012. Our tangible long-lived assets primarily consist of $91.5 million of property and equipment in the United States. No other individual foreign country’s tangible long-lived assets are material to us. | ||||||||||||||||||||||
The following table summarizes net sales and property and equipment and total assets by geographic areas for the years ended January 2, 2015, January 3, 2014 and December 28, 2012: | ||||||||||||||||||||||
Years Ended | ||||||||||||||||||||||
(In millions) | 2-Jan-15 | 3-Jan-14 | 28-Dec-12 | |||||||||||||||||||
Sales | Net Sales | % of Total | Net Sales | % of Total | Net Sales | % of Total | ||||||||||||||||
Net Sales | Net Sales | Net Sales | ||||||||||||||||||||
North America | $ | 4,453.50 | 69.1 | % | $ | 4,292.10 | 69 | % | $ | 4,399.10 | 70.4 | % | ||||||||||
Europe | 1,101.30 | 17.1 | % | 1,097.30 | 17.6 | % | 1,071.90 | 17.1 | % | |||||||||||||
Emerging Markets | 890.7 | 13.8 | % | 837.1 | 13.4 | % | 782.1 | 12.5 | % | |||||||||||||
Net sales | $ | 6,445.50 | 100 | % | $ | 6,226.50 | 100 | % | $ | 6,253.10 | 100 | % | ||||||||||
(In millions) | 2-Jan-15 | 3-Jan-14 | ||||||||||||||||||||
Total assets | ||||||||||||||||||||||
North America | $ | 2,566.00 | $ | 1,865.50 | ||||||||||||||||||
Europe | 439.3 | 443.5 | ||||||||||||||||||||
Emerging Markets | 581.2 | 546.9 | ||||||||||||||||||||
Total assets | $ | 3,586.50 | $ | 2,855.90 | ||||||||||||||||||
(In millions) | 2-Jan-15 | 3-Jan-14 | ||||||||||||||||||||
Net property and equipment | ||||||||||||||||||||||
North America | $ | 97 | $ | 79.6 | ||||||||||||||||||
Europe | 17.2 | 17.1 | ||||||||||||||||||||
Emerging Markets | 6.8 | 7.3 | ||||||||||||||||||||
Net property and equipment | $ | 121 | $ | 104 | ||||||||||||||||||
Goodwill Assigned to Segments | ||||||||||||||||||||||
The following table presents the changes in goodwill allocated to our reporting units from December 28, 2012 to January 2, 2015: | ||||||||||||||||||||||
(In millions) | ECS | W&C | Fasteners | Total | ||||||||||||||||||
Balance as of December 28, 2012 | $ | 164.1 | $ | 177.9 | $ | — | $ | 342 | ||||||||||||||
Acquisition related (a) | — | 2.6 | — | 2.6 | ||||||||||||||||||
Foreign currency translation | (1.6 | ) | (0.9 | ) | — | (2.5 | ) | |||||||||||||||
Balance as of January 3, 2014 | $ | 162.5 | $ | 179.6 | $ | — | $ | 342.1 | ||||||||||||||
Acquisition related (b) (c) | 243.4 | 1.4 | — | 244.8 | ||||||||||||||||||
Foreign currency translation | (2.5 | ) | (2.1 | ) | — | (4.6 | ) | |||||||||||||||
Balance as of January 2, 2015 | $ | 403.4 | $ | 178.9 | $ | — | $ | 582.3 | ||||||||||||||
(a) | In the second quarter of 2013, we recorded an immaterial reclassification adjustment between intangible assets and goodwill related to the purchase price allocation related to the acquisition of Jorvex. | |||||||||||||||||||||
(b) | In the first quarter of 2014, we recorded an immaterial reclassification adjustment between deferred tax liabilities and goodwill related to the purchase price allocation related to the acquisition of Jorvex. | |||||||||||||||||||||
(c) | At the end of the third quarter of 2014, we acquired all of the outstanding capital stock of Tri-Ed from Tri-NVS Holdings, LLC, an independent distributor of security and low-voltage technology products. We paid $418.4 million, net of cash acquired of $11.6 million and a favorable net asset adjustment of $2.3 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. |
SUMMARIZED_FINANCIAL_INFORMATI
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | 12 Months Ended | ||||||||||||
Jan. 02, 2015 | |||||||||||||
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 100% owned primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc.: | |||||||||||||
ANIXTER INC. | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
(In millions) | January 2, | January 3, | |||||||||||
2015 | 2014 | ||||||||||||
Assets: | |||||||||||||
Current assets | $ | 2,589.40 | $ | 2,275.10 | |||||||||
Property, equipment and capital leases, net | 131.5 | 115.6 | |||||||||||
Goodwill | 582.3 | 342.1 | |||||||||||
Other assets | 293.4 | 134.2 | |||||||||||
$ | 3,596.60 | $ | 2,867.00 | ||||||||||
Liabilities and Stockholder’s Equity: | |||||||||||||
Current liabilities | $ | 1,030.10 | $ | 898.9 | |||||||||
Subordinated notes payable to parent | 1.5 | 1 | |||||||||||
Long-term debt | 1,221.80 | 846.4 | |||||||||||
Other liabilities | 212.4 | 93 | |||||||||||
Stockholder’s equity | 1,130.80 | 1,027.70 | |||||||||||
$ | 3,596.60 | $ | 2,867.00 | ||||||||||
ANIXTER INC. | |||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
Years Ended | |||||||||||||
(In millions) | January 2, | January 3, | December 28, | ||||||||||
2015 | 2014 | 2012 | |||||||||||
Net sales | $ | 6,445.50 | $ | 6,226.50 | $ | 6,253.10 | |||||||
Operating income | $ | 366.8 | $ | 360.7 | $ | 288.2 | |||||||
Income before income taxes | $ | 299.5 | $ | 303.5 | $ | 235.2 | |||||||
Net income | $ | 197.7 | $ | 204.9 | $ | 140.6 | |||||||
Comprehensive income | $ | 86.3 | $ | 230.1 | $ | 174.3 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||
The following is a summary of the unaudited interim results of operations and the price range of the common stock composite for each quarter in the years ended January 2, 2015 and January 3, 2014. Our fiscal year includes 52 weeks in 2014 and 53 weeks in 2013. We have never paid ordinary cash dividends on our common stock. In 2013, we declared a special dividend of $5.00 per common share, or approximately $166.5 million, as a return of excess capital to shareholders and $164.2 million was paid on January 2, 2014 to shareholders of record on December 11, 2013. As of February 10, 2015, we had 1,896 shareholders of record. | |||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter(a) | Quarter(b) | Quarter(c) | Quarter(d) | ||||||||||||||
Year ended January 2, 2015 | |||||||||||||||||
Net sales | $ | 1,523.80 | $ | 1,586.00 | $ | 1,666.60 | $ | 1,669.10 | |||||||||
Cost of goods sold | 1,170.20 | 1,223.10 | 1,288.00 | 1,295.80 | |||||||||||||
Operating income | 85.7 | 92.4 | 94 | 88.8 | |||||||||||||
Income before income taxes | 64.2 | 79.7 | 80.4 | 70.5 | |||||||||||||
Net income | $ | 47.4 | $ | 53.8 | $ | 52.5 | $ | 41.1 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 1.44 | $ | 1.63 | $ | 1.59 | $ | 1.24 | |||||||||
Diluted | $ | 1.43 | $ | 1.61 | $ | 1.57 | $ | 1.23 | |||||||||
Stock price range: | |||||||||||||||||
High | $ | 115.84 | $ | 105.33 | $ | 103.47 | $ | 89.95 | |||||||||
Low | $ | 84.55 | $ | 92.79 | $ | 82.4 | $ | 75.81 | |||||||||
Close | $ | 99.06 | $ | 102.89 | $ | 85.41 | $ | 88.18 | |||||||||
(a) | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | ||||||||||||||||
(b) | In 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 allowances in Europe. | ||||||||||||||||
(c) | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | ||||||||||||||||
(d) | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | ||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter(a) | Quarter | ||||||||||||||
Year ended January 3, 2014 | |||||||||||||||||
Net sales | $ | 1,490.90 | $ | 1,579.50 | $ | 1,557.60 | $ | 1,598.50 | |||||||||
Cost of goods sold | 1,152.70 | 1,223.40 | 1,200.60 | 1,227.10 | |||||||||||||
Operating income | 81 | 85.8 | 92.4 | 95.6 | |||||||||||||
Income before income taxes | 65.4 | 70.8 | 79.5 | 80.5 | |||||||||||||
Net income | $ | 42.5 | $ | 46.1 | $ | 53.8 | $ | 58.1 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 1.3 | $ | 1.41 | $ | 1.64 | $ | 1.77 | |||||||||
Diluted | $ | 1.27 | $ | 1.4 | $ | 1.62 | $ | 1.75 | |||||||||
Stock price range: | |||||||||||||||||
High | $ | 71.43 | $ | 78.22 | $ | 89.61 | $ | 92.46 | |||||||||
Low | $ | 62 | $ | 64.94 | $ | 75.15 | $ | 80.26 | |||||||||
Close | $ | 66.13 | $ | 71.71 | $ | 82.38 | $ | 89.61 | |||||||||
(a) | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). |
SUBSEQUENT_EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Jan. 02, 2015 | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS |
On February 9, 2015, our Board of Directors approved the disposition of our Fasteners business. On February 11, 2015, the Company, through its wholly-owned subsidiary Anixter Inc., entered into a definitive Asset Purchase Agreement with American Industrial Partners (“AIP”) to sell its Fasteners business for $380.0 million in cash, subject to certain post-closing adjustments. The transaction is expected to close during the second quarter of 2015, subject to customary closing conditions and regulatory approval. Following the transaction, we will have a sharper strategic focus on our core ECS and W&C segments, additional financial flexibility to build on these strong global platforms through organic investments or strategic acquisitions, and allow us to continue to deliver long-term value to our shareholders. | |
AIP has also offered to acquire the portion of the Fasteners business in France that has historically supported Fasteners’ global business. | |
Beginning in the first quarter of 2015, the assets and liabilities of the Fasteners business will be classified as “Assets Held for Sale” and we will present the assets, liabilities, and operating results of the Fasteners business as “Discontinued Operations” in our Consolidated Financial Statements. Accordingly, all prior periods will be revised to reflect this classification. Upon closing of the transaction, we expect to record a gain on the sale, net of taxes. | |
Further, in connection with the disposition, we will no longer be permanently reinvested as to its non-U.S. Fastener business. Specifically, following the disposition of this segment, we intend to repatriate to the U.S. some, or all, of the after-tax proceeds attributable to the non-U.S. Fastener business. | |
As stated in Note 8. "Income Taxes", as of January 2, 2015, we asserted permanent reinvestment of all non-U.S. earnings, including the non-U.S. earnings of the Fasteners business. As a result of the Board of Directors’ approval of the disposition of the Fasteners business, we will no longer be permanently reinvested with respect to the non-U.S. earnings of the Fasteners business, because, following the disposition, we intend to repatriate to the U.S. some, or all, of the net proceeds attributable to the sale of the non-U.S. Fasteners business. Our first quarter 2015 results will include, as a component of discontinued operations, the tax impact of this change in our permanent reinvestment assertion. The impact of this change in our permanent reinvestment assertion, based on enacted tax laws and applicable tax treaties, may be up to approximately $40.0 million, including approximately $29.4 million in U.S. federal and state income taxes and approximately $10.6 million in various foreign withholding taxes. We are continuing to evaluate alternative options which may result in continued reinvestment of a portion of the earnings of the non-U.S. Fasteners businesses and, thereby, reduce the tax impact of the change in our reinvestment assertion. | |
In February 2015, the Venezuelan government changed its policy regarding the bolivar, which we believe will now require us to use the Sistema Marginal de Divisas [Marginal Exchange System] (“SIMADI”) a “completely free floating” rate. As a result, we believe that the current rate of approximately 170 bolivars to one USD would be the rate available to us in the event we repatriated cash from Venezuela. We currently estimate the impact of this devaluation approximates a pre-tax foreign exchange loss of $0.6 million and will be recorded in our Consolidated Statements of Income in the first quarter of 2015. Our remaining exposure related to any further devaluation of the bolivar is immaterial. |
CONDENSED_FINANCIAL_INFORMATIO
CONDENSED FINANCIAL INFORMATION OF REGISTRANT ANIXTER INTERNATIONAL INC. (PARENT COMPANY) | 12 Months Ended | ||||||||||||
Jan. 02, 2015 | |||||||||||||
Text Block [Abstract] | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT ANIXTER INTERNATIONAL INC. (PARENT COMPANY) | STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
Years Ended | |||||||||||||
(In millions) | January 2, | January 3, | December 28, | ||||||||||
2015 | 2014 | 2012 | |||||||||||
Operating loss | $ | (4.4 | ) | $ | (4.3 | ) | $ | (4.3 | ) | ||||
Other income (expense): | |||||||||||||
Interest income (expense), including intercompany | 4.8 | 2.1 | (16.8 | ) | |||||||||
Income (loss) before income taxes and equity in earnings of subsidiaries | 0.4 | (2.2 | ) | (21.1 | ) | ||||||||
Income tax expense (benefit) | 0.1 | (0.8 | ) | (8.0 | ) | ||||||||
Income (loss) before equity in earnings of subsidiaries | 0.3 | (1.4 | ) | (13.1 | ) | ||||||||
Equity in earnings of subsidiaries | 194.5 | 201.9 | 137.9 | ||||||||||
Net income | $ | 194.8 | $ | 200.5 | $ | 124.8 | |||||||
Comprehensive income | $ | 83.4 | $ | 225.7 | $ | 158.5 | |||||||
See accompanying note to the condensed financial information of registrant. | |||||||||||||
BALANCE SHEETS | |||||||||||||
(In millions) | January 2, | January 3, | |||||||||||
2015 | 2014 | ||||||||||||
ASSETS | |||||||||||||
Current assets: | |||||||||||||
Cash and cash equivalents | $ | — | $ | 0.1 | |||||||||
Other assets | 0.5 | 0.5 | |||||||||||
Total current assets | 0.5 | 0.6 | |||||||||||
Other assets (primarily investment in and advances to subsidiaries) | 1,137.00 | 1,031.10 | |||||||||||
$ | 1,137.50 | $ | 1,031.70 | ||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Liabilities: | |||||||||||||
Accounts payable and accrued expenses, due currently | $ | 1.5 | $ | 2.2 | |||||||||
Other non-current liabilities | 3 | 2.1 | |||||||||||
Total liabilities | 4.5 | 4.3 | |||||||||||
Stockholders’ equity: | |||||||||||||
Common stock | 33.1 | 32.9 | |||||||||||
Capital surplus | 238.2 | 216.3 | |||||||||||
Retained earnings | 999.7 | 804.8 | |||||||||||
Accumulated other comprehensive loss | (138.0 | ) | (26.6 | ) | |||||||||
Total stockholders’ equity | 1,133.00 | 1,027.40 | |||||||||||
$ | 1,137.50 | $ | 1,031.70 | ||||||||||
See accompanying note to the condensed financial information of registrant. | |||||||||||||
STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended | |||||||||||||
January 2, | January 3, | December 28, | |||||||||||
2015 | 2014 | 2012 | |||||||||||
(In millions) | |||||||||||||
Operating activities: | |||||||||||||
Net income | $ | 194.8 | $ | 200.5 | $ | 124.8 | |||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||
Equity in earnings of subsidiaries | (194.5 | ) | (201.9 | ) | (137.9 | ) | |||||||
Dividend from subsidiary | 2.4 | 491.7 | 207.7 | ||||||||||
Stock-based compensation | 1.9 | 1.9 | 1.8 | ||||||||||
Income tax expense (benefit) | 0.1 | (0.8 | ) | (8.0 | ) | ||||||||
Intercompany transactions | (9.8 | ) | (11.5 | ) | (10.5 | ) | |||||||
Accretion of debt discount | — | 2.2 | 17.4 | ||||||||||
Amortization of deferred financing costs | — | 0.1 | 0.9 | ||||||||||
Changes in assets and liabilities, net | — | 0.3 | — | ||||||||||
Net cash (used in) provided by operating activities | (5.1 | ) | 482.5 | 196.2 | |||||||||
Investing activities | — | — | — | ||||||||||
Financing activities: | |||||||||||||
Proceeds from stock options exercised | 7.2 | 8.1 | 3.4 | ||||||||||
Loans (to) from subsidiaries, net | (0.5 | ) | (6.0 | ) | 11 | ||||||||
Retirement of Notes due 2013 | — | (300.0 | ) | — | |||||||||
Payment of special cash dividend | — | (165.7 | ) | (151.4 | ) | ||||||||
Payments for repurchase of warrants | — | (19.2 | ) | — | |||||||||
Purchases of common stock for treasury | — | — | (59.2 | ) | |||||||||
Other, net | (1.7 | ) | — | — | |||||||||
Net cash provided by (used in) financing activities | 5 | (482.8 | ) | (196.2 | ) | ||||||||
Decrease in cash and cash equivalents | (0.1 | ) | (0.3 | ) | — | ||||||||
Cash and cash equivalents at beginning of year | 0.1 | 0.4 | 0.4 | ||||||||||
Cash and cash equivalents at end of year | $ | — | $ | 0.1 | $ | 0.4 | |||||||
See accompanying note to the condensed financial information of registrant. | |||||||||||||
NOTE TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
Note A — Basis of Presentation | |||||||||||||
In the parent company condensed financial statements, our investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. Our share of net income of our unconsolidated subsidiaries is included in consolidated income using the equity method. The parent company financial statements should be read in conjunction with our consolidated financial statements. See Note 6. "Debt" for details on dividend restrictions from Anixter Inc. to the parent company. | |||||||||||||
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation | ||||||||||||
In the parent company condensed financial statements, our investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. Our share of net income of our unconsolidated subsidiaries is included in consolidated income using the equity method. The parent company financial statements should be read in conjunction with our consolidated financial statements. See Note 6. "Debt" for details on dividend restrictions from Anixter Inc. to the parent company. |
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended | ||||||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ANIXTER INTERNATIONAL INC. | ||||||||||||||||||||
SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | |||||||||||||||||||||
Years ended January 2, 2015, January 3, 2014 and December 28, 2012 | |||||||||||||||||||||
(In millions) | Balance at | Charged to | Charged | Deductions | Balance at | ||||||||||||||||
beginning of | income | to other | end of | ||||||||||||||||||
the period | accounts | the period | |||||||||||||||||||
Description | |||||||||||||||||||||
Year ended January 2, 2015: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 16.8 | $ | 12 | $ | 11.7 | $ | (13.8 | ) | $ | 26.7 | ||||||||||
Allowance for deferred tax asset | $ | 21.9 | $ | (9.2 | ) | $ | (0.8 | ) | $ | — | $ | 11.9 | |||||||||
Year ended January 3, 2014: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 21.4 | $ | 10.4 | $ | (3.1 | ) | $ | (11.9 | ) | $ | 16.8 | |||||||||
Allowance for deferred tax asset | $ | 22.2 | $ | 0.3 | $ | (0.6 | ) | $ | — | $ | 21.9 | ||||||||||
Year ended December 28, 2012: | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 19.5 | $ | 7.5 | $ | 2.1 | $ | (7.7 | ) | $ | 21.4 | ||||||||||
Allowance for deferred tax asset | $ | 20.3 | $ | 0.5 | $ | 1.4 | $ | — | $ | 22.2 | |||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | ||||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||||
Organization | Organization: Anixter International Inc. and its subsidiaries (collectively referred to as "Anixter" or the "Company”) and sometimes referred to in these Notes to the Consolidated Financial Statements as "we", "our", "us", or "ourselves", formerly known as Itel Corporation, which was incorporated in Delaware in 1967, is a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products, OEM supply fasteners and other small parts ("C" class inventory components) through Anixter Inc. and its subsidiaries | ||||||||||||||||||
Basis of presentation | Basis of presentation: The consolidated financial statements include the accounts of Anixter International Inc. and its subsidiaries. Our fiscal year ends on the Friday nearest December 31 and includes 52 weeks in 2014 and 2012 and 53 weeks in 2013. Certain amounts in the 2013 and 2012 financial statements, as previously reported, have been reclassified to conform to the 2014 presentation. These reclassifications did not have a material impact on the presentation of the consolidated financial statements. | ||||||||||||||||||
Use of estimates | Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. | ||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents: Cash equivalents consist of short-term, highly liquid investments that mature within three months or less. Such investments are stated at cost, which approximates fair value. | ||||||||||||||||||
Receivables and allowance for doubtful accounts | Receivables and allowance for doubtful accounts: We carry our accounts receivable at their face amounts less an allowance for doubtful accounts, which was $26.7 million and $16.8 million at the end of 2014 and 2013, respectively. The acquisition of Tri-Ed contributed to the increase in the 2014 allowance for doubtful accounts balance compared to 2013. On a regular basis, we evaluate our accounts receivable and establish the allowance for doubtful accounts based on a combination of specific customer circumstances, as well as credit conditions and history of write-offs and collections. The provision for doubtful accounts was $12.0 million, $10.4 million and $7.5 million in 2014, 2013 and 2012, respectively. A receivable is considered past due if payments have not been received within the agreed upon invoice terms. Receivables are written off and deducted from the allowance account when the receivables are deemed uncollectible. | ||||||||||||||||||
Inventories | Inventories: Inventories, consisting primarily of purchased finished goods, are stated at the lower of cost or market. Cost is determined using the average-cost method. We have agreements with some of our vendors that provide a right to return products. This right is typically limited to a small percentage of our total purchases from that vendor. Such rights provide that we can return slow-moving product and the vendor will replace it with faster-moving product chosen by us. Some vendor agreements contain price protection provisions that require the manufacturer to issue a credit in an amount sufficient to reduce our current inventory carrying cost down to the manufacturer’s current price. We consider these agreements in determining our reserve for obsolescence. | ||||||||||||||||||
At January 2, 2015 and January 3, 2014, we reported inventory of $1,072.8 million and $959.8 million, respectively (net of inventory reserves of $60.5 million and $57.0 million, respectively). The acquisition of Tri-Ed contributed to the increase in the 2014 inventory and associated reserve compared to 2013. Each quarter we review for excess inventories and make an assessment of the net realizable value. | |||||||||||||||||||
Property and equipment | Property and equipment: At January 2, 2015, net property and equipment consisted of $91.1 million of equipment and computer software and approximately $29.9 million of buildings and leasehold improvements. At January 3, 2014, net property and equipment consisted of $76.8 million of equipment and computer software and approximately $27.2 million of buildings and leasehold improvements. The acquisition of Tri-Ed contributed to the increase in the 2014 net property and equipment balance compared to 2013. Equipment and computer software are recorded at cost and depreciated by applying the straight-line method over their estimated useful lives, which range from 3 to 15 years. Leasehold improvements are depreciated over the useful life or over the term of the related lease, whichever is shorter. We continually evaluate whether events or circumstances have occurred that would indicate the remaining useful lives of our property and equipment warrant revision or that the remaining balance of such assets may not be recoverable. In 2013 and 2012, we recorded non-cash impairment charges related to the write-down of property and equipment and these charges are reflected in our operating results. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". Upon sale or retirement, the cost and related depreciation are removed from the respective accounts and any gain or loss is included in income. Maintenance and repair costs are expensed as incurred. Depreciation expense charged to operations, including an immaterial amount of capital lease depreciation, was $24.0 million, $22.1 million and $22.5 million in 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Costs for software developed for internal use are capitalized when the preliminary project stage is complete and we have committed funding for projects that are likely to be completed. Costs that are incurred during the preliminary project stage are expensed as incurred. Once the capitalization criteria has been met, external direct costs of materials and services consumed in developing internal-use computer software, payroll and payroll-related costs for employees who are directly associated with and who devote time to the internal-use computer software project (to the extent of their time spent directly on the project) and interest costs incurred when developing computer software for internal use are capitalized. At January 2, 2015 and January 3, 2014, capitalized costs, net of accumulated amortization, for software developed for internal use were approximately $45.4 million and $39.1 million, respectively. Amortization expense charged to operations for capitalized costs was $3.3 million, $3.2 million and $1.9 million in 2014, 2013 and 2012, respectively. Interest expense incurred in connection with the development of internal use software is capitalized based on the amounts of accumulated expenditures and the weighted-average cost of borrowings for the period. Interest costs capitalized for fiscal 2014, 2013 and 2012 were insignificant. | |||||||||||||||||||
Goodwill | Goodwill: We utilize the qualitative assessment approach to test goodwill for impairment during the annual assessment performed in the third quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. The qualitative assessment considers specific factors, based on the weight of evidence, and the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In addition to the qualitative approach during the third quarter of 2012, we also performed a combination of the quantitative evaluation of the income and market approaches to determine the fair value of our former European reporting unit. | ||||||||||||||||||
As a result of the change in segments in the fourth quarter of 2012 and in accordance with ASC 350 related to Goodwill and Intangibles, we reassigned the carrying amount of goodwill to our new reporting units based on the relative fair value assigned as of the effective date of our change in segment reporting. We performed an interim assessment of the recoverability of goodwill assigned to the reporting units as a result of this change. In connection with our fourth quarter interim assessment to test for goodwill impairment, we performed a quantitative test for all reporting units and utilized a combination of the income and market approach, both of which are broadly defined below. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | |||||||||||||||||||
The income approach is a quantitative evaluation to determine the fair value of the reporting unit. Under the income approach we determine the fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the reporting unit and the rate of return a market participant would expect to earn. The inputs used for the income approach were significant unobservable inputs, or Level 3 inputs, as described in the accounting fair value hierarchy. Estimated future cash flows were based on our internal projection models, industry projections and other assumptions deemed reasonable by management. | |||||||||||||||||||
The market approach measures the fair value of a reporting unit through the analysis of recent sales, offerings, and financial multiples (sales or earnings before interest, tax, depreciation and amortization ("EBITDA")) of comparable businesses. Consideration is given to the financial conditions and operating performance of the reporting unit being valued relative to those publicly-traded companies operating in the same or similar lines of business. | |||||||||||||||||||
If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount using the qualitative assessment, we perform the two-step impairment test. The first step of the impairment test is to identify a potential impairment by comparing the fair value of a reporting unit with its carrying amount. The estimates of fair value of a reporting unit are determined using the income approach and/or the market approach as described above. If step one of the test indicates a carrying value above the estimated fair value, the second step of the goodwill impairment test is performed by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied residual value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. | |||||||||||||||||||
Intangible assets | Intangible assets: Intangible assets, other than goodwill, are included in "Other assets" on the consolidated balance sheets. As of January 2, 2015 and January 3, 2014, our intangible asset balances are as follows: | ||||||||||||||||||
2-Jan-15 | 3-Jan-14 | ||||||||||||||||||
(In millions) | Average useful life (in years) | Gross carrying amount | Accumulated amortization | Gross carrying amount | Accumulated amortization | ||||||||||||||
Customer relationships | 20-Jun | $ | 212.3 | $ | (51.8 | ) | $ | 93.8 | $ | (42.4 | ) | ||||||||
Exclusive supplier agreement | 21 | 22.9 | (0.3 | ) | — | — | |||||||||||||
Trade names | 10-Mar | 15.5 | (4.8 | ) | 6.6 | (3.5 | ) | ||||||||||||
Trade names | Indefinite | 10.6 | — | — | — | ||||||||||||||
Non-compete agreements | 5-Apr | 5.2 | (2.2 | ) | 2 | (2.0 | ) | ||||||||||||
Intellectual property | 10 | 1.5 | (0.9 | ) | 1.7 | (0.9 | ) | ||||||||||||
Total | $ | 268 | $ | (60.0 | ) | $ | 104.1 | $ | (48.8 | ) | |||||||||
We continually evaluate whether events or circumstances have occurred that would indicate the remaining estimated useful lives of our intangible assets warrant revision or that the remaining balance of such assets may not be recoverable. For definite-lived intangible assets, we use an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. Trade names that have been identified to have indefinite lives are not being amortized based on our expectation that the trade name products will generate future cash flows for us for the foreseeable future. We expect to maintain use of these trade names on existing products. In 2012, we recorded a non-cash impairment charge related to definite-lived intangible assets and these charges are reflected in the operating results. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | |||||||||||||||||||
Intangible amortization expense is expected to average $20.0 million per year for the next five years; $13.9 million of that amount relates to intangible assets recorded for the Tri-Ed acquisition. See Note 2. "Business Combination" for further details. Our definite lived intangible assets are amortized over a straight line basis as it approximates the customer attrition patterns and best estimates the use pattern of the assets. | |||||||||||||||||||
Other, net | Other, net: The following represents the components of “Other, net” as reflected in the Consolidated Statements of Income for the fiscal years 2014, 2013 and 2012: | ||||||||||||||||||
(In millions) | Years Ended | ||||||||||||||||||
January 2, | January 3, | December 28, | |||||||||||||||||
2015 | 2014 | 2012 | |||||||||||||||||
Other, net: | |||||||||||||||||||
Foreign exchange | $ | (9.1 | ) | $ | (9.8 | ) | $ | (11.7 | ) | ||||||||||
Foreign exchange devaluations | (8.0 | ) | (1.1 | ) | — | ||||||||||||||
Cash surrender value of life insurance policies | 0.8 | 0.2 | 0.5 | ||||||||||||||||
Other | (1.7 | ) | (0.5 | ) | (2.0 | ) | |||||||||||||
Total other, net | $ | (18.0 | ) | $ | (11.2 | ) | $ | (13.2 | ) | ||||||||||
In the first quarter of 2014, the Venezuelan government changed its policies regarding the bolivar which required 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 Argentine peso was also devalued from 6.5 pesos to one USD to approximately 8.0 peso 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. In 2013, we had a $1.1 million foreign exchange loss due to the devaluation of the Venezuela bolivar from the rate of 4.30 bolivars to one USD to 6.30 bolivars to one USD. As a result of the devaluation, through the end of fiscal 2013, we believed that the official rate of 6.30 bolivars to one USD would be the rate available to us in the event we repatriated cash from Venezuela. Due to the strengthening of the U.S. dollar (“USD”) against certain foreign currencies, primarily in our Europe and Latin America regions, we recorded additional foreign exchange losses of $9.1 million in 2014, $9.8 million in 2013 and $11.7 million in 2012. | |||||||||||||||||||
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 Consolidated Statements of 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 January 2, 2015 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 Consolidated Statements of Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At January 2, 2015 and January 3, 2014, the gross notional amount of the foreign currency forward contracts outstanding was approximately $222.9 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 January 2, 2015 and January 3, 2014, the net notional amount of the foreign currency forward contracts outstanding was approximately $121.9 million and $152.0 million, respectively. | |||||||||||||||||||
The combined effect of changes in both the equity and bond markets in each of the last three fiscal years resulted in changes in the cash surrender value of our owned life insurance policies associated with our sponsored deferred compensation program. | |||||||||||||||||||
Fair Value Measurement | Fair value measurement: Our assets and liabilities measured at fair value on a recurring basis consist of foreign currency forward contracts and the assets of our defined benefit plans. The fair value of the foreign currency forward contracts is discussed above in the section titled “Other, net.” The fair value of the assets of our defined benefit plans is discussed in Note 9. "Pension Plans, Post-Retirement Benefits and Other Benefits". The nonrecurring fair value measurements include our evaluation of the recoverability of goodwill and related evaluation of long-lived assets. The fair value measurements of goodwill and long-lived assets is discussed in Note 5. "Impairment of Goodwill and Long-lived Assets". Fair value disclosures of debt are discussed in Note 6. "Debt". | ||||||||||||||||||
The inputs used in the determination of fair values are categorized according to the fair value hierarchy as being Level 1, Level 2 or Level 3. In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets or liabilities. Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets or liabilities in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset or liability. In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset or liability. | |||||||||||||||||||
Revenue recognition | Revenue recognition: Sales to customers, resellers and distributors and related cost of sales are recognized upon transfer of title, which generally occurs upon shipment of products, when the price is fixed and determinable and when collectability is reasonably assured. Revenue is recorded net of sales taxes, customer discounts, rebates and similar charges. We also establish a reserve for returns and credits provided to customers in certain instances. The reserve is established based on an analysis of historical experience and was $24.8 million and $27.6 million at January 2, 2015 and January 3, 2014, respectively. | ||||||||||||||||||
In connection with the sales of our products, we often provide certain supply chain services. These services are provided exclusively in connection with the sales of products, and as such, the price of such services is included in the price of the products delivered to the customer. We do not account for these services as a separate element, as the services do not have stand-alone value and cannot be separated from the product element of the arrangement. There are no significant post-delivery obligations associated with these services. | |||||||||||||||||||
In those cases where we do not have goods in stock and delivery times are critical, product is purchased from the manufacturer and drop-shipped to the customer. We generally take title to the goods when shipped by the manufacturer and then we bill the customer for the product upon transfer of the title to the customer. | |||||||||||||||||||
Sales taxes | Sales taxes: Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis in the Consolidated Statements of Income. | ||||||||||||||||||
Advertising and sales promotion | Advertising and sales promotion: Advertising and sales promotion costs are expensed as incurred. Advertising and promotion costs included in operating expenses on the Consolidated Statements of Income were $13.5 million, $12.8 million and $13.1 million in 2014, 2013 and 2012, respectively. The majority of the advertising and sales promotion costs are recouped through various cooperative advertising programs with vendors. | ||||||||||||||||||
Shipping and handling fees and costs | Shipping and handling fees and costs: We include shipping and handling fees billed to customers in net sales. Shipping and handling costs associated with outbound freight are included in "Operating expenses" on the Consolidated Statements of Income, which were $110.7 million, $110.5 million and $106.4 million for the years ended 2014, 2013 and 2012, respectively. | ||||||||||||||||||
Stock-based compensation | Stock-based compensation: In accordance with U.S. accounting rules, we measure the cost of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method. Compensation costs are determined based on the fair value at the grant date and amortized over the respective vesting period representing the requisite service period. | ||||||||||||||||||
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 (loss) income" on the Consolidated Statements 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 9. "Pension Plans, Post-Retirement Benefits and Other Benefits" for pension related amounts reclassified into net income. | ||||||||||||||||||
Our investments in several subsidiaries are recorded in currencies other than the USD. 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 USD 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 USD, are translated into USD 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: Deferred taxes are recognized for the future tax effects of temporary differences between financial and income tax reporting based upon enacted tax laws and rates. We maintain valuation allowances to reduce deferred tax assets if it is more likely than not that some portion or all of the deferred tax asset will not be realized. We recognize the benefit of tax positions when a benefit is more likely than not (i.e., greater than 50% likely) to be sustained on its technical merits. Recognized tax benefits are measured at the largest amount that is more likely than not to be sustained, based on cumulative probability, in final settlement of the position. | ||||||||||||||||||
Net income per share | Net income per share: Diluted net income per share reflects the potential dilution that would occur if securities or other contracts to issue common stock were exercised or converted into common stock. | ||||||||||||||||||
For 2014, 2013 and 2012, we had 0.3 million of additional shares related to stock options and stock units included in the computation of diluted earnings per share because the effect of those common stock equivalents were dilutive during these periods. We exclude antidilutive stock options and units from the calculation of weighted-average shares for diluted earnings per share. For 2014, 2013 and 2012, the antidilutive stock options and units were immaterial. | |||||||||||||||||||
As discussed in Note 6. "Debt", the Notes due 2013 have been retired; however, they were dilutive during various periods in 2013 and 2012. Specifically, as a result of our average stock price exceeding the average accreted value during 2013 and 2012, we included 0.1 million and 0.4 million additional shares, respectively, related to the Notes due 2013 in the diluted weighted-average common shares outstanding. | |||||||||||||||||||
New Accounting Pronouncements, Policy | 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 was effective for us beginning in fiscal year 2014 and applicable disclosures are reflected herein. | ||||||||||||||||||
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 Consolidated Balance Sheets. The gross amount of our derivative assets and liabilities are immaterial. | |||||||||||||||||||
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 current 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 currently effective for the Company in fiscal 2017. 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. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||||
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class | As of January 2, 2015 and January 3, 2014, our intangible asset balances are as follows: | ||||||||||||||||||
2-Jan-15 | 3-Jan-14 | ||||||||||||||||||
(In millions) | Average useful life (in years) | Gross carrying amount | Accumulated amortization | Gross carrying amount | Accumulated amortization | ||||||||||||||
Customer relationships | 20-Jun | $ | 212.3 | $ | (51.8 | ) | $ | 93.8 | $ | (42.4 | ) | ||||||||
Exclusive supplier agreement | 21 | 22.9 | (0.3 | ) | — | — | |||||||||||||
Trade names | 10-Mar | 15.5 | (4.8 | ) | 6.6 | (3.5 | ) | ||||||||||||
Trade names | Indefinite | 10.6 | — | — | — | ||||||||||||||
Non-compete agreements | 5-Apr | 5.2 | (2.2 | ) | 2 | (2.0 | ) | ||||||||||||
Intellectual property | 10 | 1.5 | (0.9 | ) | 1.7 | (0.9 | ) | ||||||||||||
Total | $ | 268 | $ | (60.0 | ) | $ | 104.1 | $ | (48.8 | ) | |||||||||
Summary of Components of Other Net Reflected in Consolidated Statements of Operations | The following represents the components of “Other, net” as reflected in the Consolidated Statements of Income for the fiscal years 2014, 2013 and 2012: | ||||||||||||||||||
(In millions) | Years Ended | ||||||||||||||||||
January 2, | January 3, | December 28, | |||||||||||||||||
2015 | 2014 | 2012 | |||||||||||||||||
Other, net: | |||||||||||||||||||
Foreign exchange | $ | (9.1 | ) | $ | (9.8 | ) | $ | (11.7 | ) | ||||||||||
Foreign exchange devaluations | (8.0 | ) | (1.1 | ) | — | ||||||||||||||
Cash surrender value of life insurance policies | 0.8 | 0.2 | 0.5 | ||||||||||||||||
Other | (1.7 | ) | (0.5 | ) | (2.0 | ) | |||||||||||||
Total other, net | $ | (18.0 | ) | $ | (11.2 | ) | $ | (13.2 | ) |
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Text Block [Abstract] | |||||||||
Accrued Expenses | Accrued expenses consisted of the following: | ||||||||
January 2, | January 3, | ||||||||
2015 | 2014 | ||||||||
(In millions) | |||||||||
Salaries and fringe benefits | $ | 87.7 | $ | 89.9 | |||||
Other accrued expenses | 111.5 | 120.6 | |||||||
Total accrued expenses | $ | 199.2 | $ | 210.5 | |||||
BUSINESS_COMBINATION_Tables
BUSINESS COMBINATION (Tables) | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Business Combinations [Abstract] | |||||||||
Net assets acquired | |||||||||
(In millions) | |||||||||
Cash | $ | 11.6 | |||||||
Current assets, net | 203.9 | ||||||||
Property, plant and equipment | 2.7 | ||||||||
Goodwill | 243.4 | ||||||||
Intangible assets | 166.8 | ||||||||
Current liabilities | (144.6 | ) | |||||||
Non-current liabilities | (56.1 | ) | |||||||
Total purchase price | $ | 427.7 | |||||||
Intangible assets acquired | |||||||||
(In millions) | Average useful life (in years) | Fair value | |||||||
Customer relationships | 18-Nov | $ | 120.6 | ||||||
Exclusive supplier agreement | 21 | 23.2 | |||||||
Trade names | Indefinite | 10.6 | |||||||
Tri-Ed trade names | 4 | 9.2 | |||||||
Non-compete agreements | 5-Apr | 3.2 | |||||||
Total intangible assets | $ | 166.8 | |||||||
Acquisition pro forma information | |||||||||
Years Ended | |||||||||
(In millions, except per share amounts) | January 2, 2015 | January 3, 2014 | |||||||
Net sales | $ | 6,865.10 | $ | 6,798.70 | |||||
Net income | $ | 201.3 | $ | 203.9 | |||||
Income per share: | |||||||||
Basic | $ | 6.09 | $ | 6.22 | |||||
Diluted | $ | 6.04 | $ | 6.14 | |||||
RESTRUCTURING_CHARGE_Tables
RESTRUCTURING CHARGE (Tables) | 12 Months Ended | |||||||||||
Jan. 02, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Summary of Liabilities Associated with Restructuring and Employee Severance | The following table summarizes activity related to liabilities associated with restructuring and employee severance: | |||||||||||
Restructuring Charge | ||||||||||||
(in millions) | Employee-Related Costs (a) | Facility Exit and Other Costs (b) | Total | |||||||||
Balance at December 28, 2012 | $ | 6.7 | $ | 2.4 | $ | 9.1 | ||||||
Payments and other | (4.4 | ) | (2.0 | ) | (6.4 | ) | ||||||
Balance at January 3, 2014 | 2.3 | 0.4 | 2.7 | |||||||||
Payments and other | (2.2 | ) | 0.4 | (1.8 | ) | |||||||
Balance at January 2, 2015 | $ | 0.1 | $ | 0.8 | $ | 0.9 | ||||||
(a) | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated. | |||||||||||
(b) | Facility exit and other costs primarily consist of lease termination costs. |
IMPAIRMENT_OF_GOODWILL_AND_LON1
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS (Tables) | 12 Months Ended | ||||
Jan. 02, 2015 | |||||
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS | The following key inputs were used in the Fasteners intangible asset evaluations in the third and fourth quarters of 2012: | ||||
Discount Rates | |||||
Q3 Evaluation | Q4 Evaluation | ||||
14.5% to 16.0% | 14.00% |
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||
Jan. 02, 2015 | |||||||||
Text Block [Abstract] | |||||||||
Debt | Debt is summarized below: | ||||||||
(In millions) | January 2, | January 3, | |||||||
2015 | 2014 | ||||||||
Long-term debt: | |||||||||
Senior notes due 2021 | $ | 394.2 | $ | — | |||||
Senior notes due 2019 | 345.9 | 345.1 | |||||||
Senior notes due 2015 | 200 | 200 | |||||||
Term loan | 198.8 | — | |||||||
Accounts receivable securitization facility | 65 | 145 | |||||||
Revolving lines of credit | — | 101.5 | |||||||
Senior notes due 2014 | — | 32.1 | |||||||
Other | 3.8 | 7.4 | |||||||
Total long-term debt | $ | 1,207.70 | $ | 831.1 | |||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Jan. 02, 2015 | ||||
Text Block [Abstract] | ||||
Minimum Lease Commitments Under Operating Leases | Minimum lease commitments under operating leases at January 2, 2015 are as follows: | |||
(In millions) | ||||
2015 | $ | 63.5 | ||
2016 | 50.5 | |||
2017 | 37.7 | |||
2018 | 29.6 | |||
2019 | 20.8 | |||
2020 and thereafter | 45 | |||
Total | $ | 247.1 | ||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Jan. 02, 2015 | |||||||||||||
Income Tax Expense (Benefit) | Income tax expense (benefit) was comprised of: | ||||||||||||
(In millions) | Years Ended | ||||||||||||
January 2, | January 3, | December 28, | |||||||||||
2015 | 2014 | 2012 | |||||||||||
Current: | |||||||||||||
Foreign | $ | 30.8 | $ | 30.9 | $ | 28.5 | |||||||
State | 5.4 | 5.5 | 8.5 | ||||||||||
Federal | 38.1 | 37 | 57.2 | ||||||||||
74.3 | 73.4 | 94.2 | |||||||||||
Deferred: | |||||||||||||
Foreign | (1.0 | ) | 1.6 | (14.6 | ) | ||||||||
State | 3.3 | 2.5 | 0.3 | ||||||||||
Federal | 23.4 | 18.2 | 4.9 | ||||||||||
25.7 | 22.3 | (9.4 | ) | ||||||||||
Income tax expense | $ | 100 | $ | 95.7 | $ | 84.8 | |||||||
Reconciliation of Tax Provision at Federal Statutory Rate to Provision for Income | Reconciliations of income tax expense to the statutory corporate federal tax rate of 35% were as follows: | ||||||||||||
(In millions) | Years Ended | ||||||||||||
January 2, | January 3, | December 28, | |||||||||||
2015 | 2014 | 2012 | |||||||||||
Statutory tax expense | $ | 103.2 | $ | 103.7 | $ | 73.4 | |||||||
Increase (reduction) in taxes resulting from: | |||||||||||||
Nondeductible goodwill impairment loss | — | — | 9.1 | ||||||||||
State income taxes, net | 5.9 | 5.4 | 5.5 | ||||||||||
Foreign tax effects | (1.1 | ) | (8.7 | ) | (4.6 | ) | |||||||
Change in valuation allowance | (9.2 | ) | 0.3 | 0.5 | |||||||||
Other, net | 1.2 | (5.0 | ) | 0.9 | |||||||||
Income tax expense | $ | 100 | $ | 95.7 | $ | 84.8 | |||||||
Components of Deferred Tax Assets and Liabilities | Deferred Income Taxes: Significant components of our deferred tax assets and (liabilities) were as follows: | ||||||||||||
(In millions) | January 2, | January 3, | |||||||||||
2015 | 2014 | ||||||||||||
Property, equipment, intangibles and other | $ | (84.8 | ) | $ | (30.8 | ) | |||||||
Gross deferred tax liabilities | (84.8 | ) | (30.8 | ) | |||||||||
Deferred compensation and other postretirement benefits | 41.2 | 38.7 | |||||||||||
Foreign NOL carryforwards and other | 28.2 | 34.5 | |||||||||||
Accrued expenses and other | 4.7 | 10.3 | |||||||||||
Inventory reserves | 14.6 | 12 | |||||||||||
Allowance for doubtful accounts | 7.7 | 6.2 | |||||||||||
Gross deferred tax assets | 96.4 | 101.7 | |||||||||||
Deferred tax assets, net of deferred tax liabilities | 11.6 | 70.9 | |||||||||||
Valuation allowance | (11.9 | ) | (21.9 | ) | |||||||||
Net deferred tax assets | $ | (0.3 | ) | $ | 49 | ||||||||
Net current deferred tax assets | 33.7 | 32.8 | |||||||||||
Net non-current deferred tax assets | (34.0 | ) | 16.2 | ||||||||||
Net deferred tax assets | $ | (0.3 | ) | $ | 49 | ||||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | Uncertain Tax Positions and Jurisdictions Subject to Examinations: A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2012, 2013 and 2014 is as follows: | ||||||||||||
(In millions) | |||||||||||||
Balance at December 30, 2011 | $ | 4.2 | |||||||||||
Additions for tax positions of prior years | 2.2 | ||||||||||||
Reductions for tax positions of prior years | (3.0 | ) | |||||||||||
Balance at December 28, 2012 | $ | 3.4 | |||||||||||
Additions for tax positions of prior years | 0.2 | ||||||||||||
Reductions for tax positions of prior years | (0.2 | ) | |||||||||||
Balance at January 3, 2014 | $ | 3.4 | |||||||||||
Additions for tax positions of prior years | 0.4 | ||||||||||||
Reductions for tax positions of prior years | (0.8 | ) | |||||||||||
Balance at January 2, 2015 | $ | 3 | |||||||||||
PENSION_PLANS_POSTRETIREMENT_B1
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||||||||||||||||||||||
Text Block [Abstract] | |||||||||||||||||||||||||||||||||||||
Weighted Average Percentage of Actual and Target Asset Allocation | The Domestic Plans’ and Foreign Plans’ asset mixes as of January 2, 2015 and January 3, 2014 and our asset allocation guidelines for such plans are summarized as follows. In 2014, we updated the U.S. investment policy statement including the target asset allocation guidelines. As a result, the asset allocations for the Domestic Plans are different as of January 2, 2015 and January 3, 2014. | ||||||||||||||||||||||||||||||||||||
Domestic Plans | |||||||||||||||||||||||||||||||||||||
January 2, | Allocation Guidelines | ||||||||||||||||||||||||||||||||||||
2015 | Min | Target | Max | ||||||||||||||||||||||||||||||||||
Large capitalization U.S. stocks | 22.8 | % | 17 | % | 22 | % | 27 | % | |||||||||||||||||||||||||||||
Small to mid capitalization U.S. stocks | 27.7 | 20 | 30 | 40 | |||||||||||||||||||||||||||||||||
Emerging market equity | 8.9 | 5 | 10 | 15 | |||||||||||||||||||||||||||||||||
Total equity securities | 59.4 | 62 | |||||||||||||||||||||||||||||||||||
Fixed income investments | 37.1 | 31 | 38 | 45 | |||||||||||||||||||||||||||||||||
Cash equivalents | 3.5 | — | — | 10 | |||||||||||||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||||||||||||||
Domestic Plans | |||||||||||||||||||||||||||||||||||||
January 3, | Allocation Guidelines | ||||||||||||||||||||||||||||||||||||
2014 | Min | Target | Max | ||||||||||||||||||||||||||||||||||
Large capitalization U.S. stocks | 35.2 | % | 20 | % | 30 | % | 40 | % | |||||||||||||||||||||||||||||
Small capitalization U.S. stocks | 21.5 | 15 | 20 | 25 | |||||||||||||||||||||||||||||||||
International stocks | 17.6 | 15 | 20 | 25 | |||||||||||||||||||||||||||||||||
Total equity securities | 74.3 | 70 | |||||||||||||||||||||||||||||||||||
Fixed income investments | 21.9 | 25 | 30 | 35 | |||||||||||||||||||||||||||||||||
Other investments | 3.8 | — | — | — | |||||||||||||||||||||||||||||||||
100 | % | 100 | % | ||||||||||||||||||||||||||||||||||
Foreign Plans | |||||||||||||||||||||||||||||||||||||
January 2, | January 3, | Allocation | |||||||||||||||||||||||||||||||||||
2015 | 2014 | Guidelines | |||||||||||||||||||||||||||||||||||
Target | |||||||||||||||||||||||||||||||||||||
Equity securities | 46 | % | 46 | % | 48 | % | |||||||||||||||||||||||||||||||
Fixed income investments | 47 | 45 | 45 | ||||||||||||||||||||||||||||||||||
Other investments | 7 | 9 | 7 | ||||||||||||||||||||||||||||||||||
100 | % | 100 | % | 100 | % | ||||||||||||||||||||||||||||||||
Summary of Changes in Accumulated Other Comprehensive Income for Defined Benefit Plans | The following table sets forth the changes and the end of year components of "Accumulated other comprehensive loss" for the defined benefit plans: | ||||||||||||||||||||||||||||||||||||
(In millions) | January 2, | January 3, | |||||||||||||||||||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||||||||||||||||||
Changes to Balance: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 32.3 | $ | 98.8 | |||||||||||||||||||||||||||||||||
Recognized prior service cost | 4.6 | 4.5 | |||||||||||||||||||||||||||||||||||
Recognized net actuarial gain | (3.5 | ) | (9.3 | ) | |||||||||||||||||||||||||||||||||
Prior service credit arising in current year | (3.1 | ) | (2.7 | ) | |||||||||||||||||||||||||||||||||
Net actuarial loss (gain) arising in current year | 76.5 | (59.0 | ) | ||||||||||||||||||||||||||||||||||
Ending balance | $ | 106.8 | $ | 32.3 | |||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income for Benefit Plans | |||||||||||||||||||||||||||||||||||||
Components of Balance: | |||||||||||||||||||||||||||||||||||||
Prior service credit | $ | (34.2 | ) | $ | (38.8 | ) | |||||||||||||||||||||||||||||||
Net actuarial loss | 140.9 | 71 | |||||||||||||||||||||||||||||||||||
Transitional obligation | 0.1 | 0.1 | |||||||||||||||||||||||||||||||||||
$ | 106.8 | $ | 32.3 | ||||||||||||||||||||||||||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be recognized over next fiscal Year | Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2015 are as follows: | ||||||||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||||
Amortization of prior service credit | $ | (4.6 | ) | ||||||||||||||||||||||||||||||||||
Amortization of actuarial loss | 9.4 | ||||||||||||||||||||||||||||||||||||
Total amortization expected | $ | 4.8 | |||||||||||||||||||||||||||||||||||
Reconciliation of Funded Status of Pension Plans | The following represents a reconciliation of the funded status of our pension plans from the beginning of fiscal 2013 to the end of fiscal 2014: | ||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||||||||||
Change in projected benefit obligation: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 224.9 | $ | 248.9 | $ | 242.9 | $ | 232.2 | $ | 467.8 | $ | 481.1 | |||||||||||||||||||||||||
Service cost | 3.7 | 7 | 5.9 | 6.7 | 9.6 | 13.7 | |||||||||||||||||||||||||||||||
Interest cost | 10.8 | 9.6 | 10.6 | 9.4 | 21.4 | 19 | |||||||||||||||||||||||||||||||
Actuarial loss (gain) | 45.3 | (33.2 | ) | 52.1 | 0.8 | 97.4 | (32.4 | ) | |||||||||||||||||||||||||||||
Plan amendment | — | (0.2 | ) | (0.1 | ) | — | (0.1 | ) | (0.2 | ) | |||||||||||||||||||||||||||
Benefits paid from plan assets | (6.5 | ) | (6.4 | ) | (13.9 | ) | (6.3 | ) | (20.4 | ) | (12.7 | ) | |||||||||||||||||||||||||
Benefits paid from Company assets | (0.8 | ) | (0.8 | ) | — | — | (0.8 | ) | (0.8 | ) | |||||||||||||||||||||||||||
Plan participants contributions | — | — | 0.3 | 0.2 | 0.3 | 0.2 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | (19.2 | ) | (0.1 | ) | (19.2 | ) | (0.1 | ) | |||||||||||||||||||||||||||
Ending balance | $ | 277.4 | $ | 224.9 | $ | 278.6 | $ | 242.9 | $ | 556 | $ | 467.8 | |||||||||||||||||||||||||
Change in plan assets at fair value: | |||||||||||||||||||||||||||||||||||||
Beginning balance | $ | 213.8 | $ | 183.7 | $ | 222.9 | $ | 202 | $ | 436.7 | $ | 385.7 | |||||||||||||||||||||||||
Actual return on plan assets | 13.9 | 31.9 | 31.1 | 17 | 45 | 48.9 | |||||||||||||||||||||||||||||||
Company contributions to plan assets | 8.3 | 4.6 | 7.7 | 9.9 | 16 | 14.5 | |||||||||||||||||||||||||||||||
Benefits paid from plan assets | (6.5 | ) | (6.4 | ) | (13.9 | ) | (6.3 | ) | (20.4 | ) | (12.7 | ) | |||||||||||||||||||||||||
Plan participants contributions | — | — | 0.3 | 0.2 | 0.3 | 0.2 | |||||||||||||||||||||||||||||||
Foreign currency exchange rate changes | — | — | (15.9 | ) | 0.1 | (15.9 | ) | 0.1 | |||||||||||||||||||||||||||||
Ending balance | $ | 229.5 | $ | 213.8 | $ | 232.2 | $ | 222.9 | $ | 461.7 | $ | 436.7 | |||||||||||||||||||||||||
Reconciliation of funded status: | |||||||||||||||||||||||||||||||||||||
Projected benefit obligation | $ | (277.4 | ) | $ | (224.9 | ) | $ | (278.6 | ) | $ | (242.9 | ) | $ | (556.0 | ) | $ | (467.8 | ) | |||||||||||||||||||
Plan assets at fair value | 229.5 | 213.8 | 232.2 | 222.9 | 461.7 | 436.7 | |||||||||||||||||||||||||||||||
Funded status | $ | (47.9 | ) | $ | (11.1 | ) | $ | (46.4 | ) | $ | (20.0 | ) | $ | (94.3 | ) | $ | (31.1 | ) | |||||||||||||||||||
Included in the 2014 and 2013 funded status is accrued benefit cost of approximately $16.8 million and $14.8 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations. | |||||||||||||||||||||||||||||||||||||
Noncurrent asset | $ | — | $ | 3.7 | $ | 5 | $ | 2.2 | $ | 5 | $ | 5.9 | |||||||||||||||||||||||||
Current liability | (0.8 | ) | (0.8 | ) | — | — | (0.8 | ) | (0.8 | ) | |||||||||||||||||||||||||||
Noncurrent liability | (47.1 | ) | (14.0 | ) | (51.4 | ) | (22.2 | ) | (98.5 | ) | (36.2 | ) | |||||||||||||||||||||||||
Funded status | $ | (47.9 | ) | $ | (11.1 | ) | $ | (46.4 | ) | $ | (20.0 | ) | $ | (94.3 | ) | $ | (31.1 | ) | |||||||||||||||||||
Weighted-average assumptions used for measurement of the projected benefit obligation: | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.14 | % | 4.81 | % | 3.44 | % | 4.49 | % | 3.79 | % | 4.64 | % | |||||||||||||||||||||||||
Salary growth rate | 4.6 | % | 4.63 | % | 3.12 | % | 3.27 | % | 3.79 | % | 4.04 | % | |||||||||||||||||||||||||
Components of Net Periodic Cost | The following represents the funded components of net periodic pension cost as reflected in our Consolidated Statements of Income and the weighted-average assumptions used to measure net periodic cost for the years ended January 2, 2015, January 3, 2014 and December 28, 2012: | ||||||||||||||||||||||||||||||||||||
Pension Benefits | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Components of net periodic cost: | |||||||||||||||||||||||||||||||||||||
Service cost | $ | 4.8 | $ | 8.5 | $ | 10.1 | $ | 5.9 | $ | 6.7 | $ | 5.6 | $ | 10.7 | $ | 15.2 | $ | 15.7 | |||||||||||||||||||
Interest cost | 10.8 | 9.6 | 12.4 | 10.6 | 9.4 | 9.5 | 21.4 | 19 | 21.9 | ||||||||||||||||||||||||||||
Expected return on plan assets | (13.9 | ) | (11.8 | ) | (11.3 | ) | (12.5 | ) | (10.5 | ) | (9.9 | ) | (26.4 | ) | (22.3 | ) | (21.2 | ) | |||||||||||||||||||
Net amortization | (2.2 | ) | 3.1 | 8.3 | 1.1 | 1.7 | 1 | (1.1 | ) | 4.8 | 9.3 | ||||||||||||||||||||||||||
Settlement loss | — | — | 15.3 | — | — | — | — | — | 15.3 | ||||||||||||||||||||||||||||
Net periodic cost (benefit) | $ | (0.5 | ) | $ | 9.4 | $ | 34.8 | $ | 5.1 | $ | 7.3 | $ | 6.2 | $ | 4.6 | $ | 16.7 | $ | 41 | ||||||||||||||||||
Weighted-average Assumption Used to Measure Net Periodic Cost | |||||||||||||||||||||||||||||||||||||
Weighted-average assumption used to measure net periodic cost: | |||||||||||||||||||||||||||||||||||||
Discount rate | 4.81 | % | 3.93 | % | 4.37 | % | 4.49 | % | 4.23 | % | 4.84 | % | 4.64 | % | 4.08 | % | 4.56 | % | |||||||||||||||||||
Expected return on plan assets | 6.5 | % | 6.5 | % | 7 | % | 5.67 | % | 5.27 | % | 5.29 | % | 6.08 | % | 5.86 | % | 6.1 | % | |||||||||||||||||||
Salary growth rate | 4.63 | % | 3.9 | % | 3.9 | % | 3.27 | % | 3.13 | % | 3.13 | % | 4.04 | % | 3.62 | % | 3.57 | % | |||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis | Disclosures concerning assets measured at fair value on a recurring basis at January 2, 2015 and January 3, 2014, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by us are as follows: | ||||||||||||||||||||||||||||||||||||
As of January 2, 2015 | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||
Asset Categories: | |||||||||||||||||||||||||||||||||||||
Cash and short-term investments | $ | 8.1 | $ | — | $ | 8.1 | $ | 1.2 | $ | — | $ | 1.2 | $ | 9.3 | $ | — | $ | 9.3 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Domestic | 116 | — | 116 | 0.3 | 59.7 | 60 | 116.3 | 59.7 | 176 | ||||||||||||||||||||||||||||
International (a) | 20.4 | — | 20.4 | 2.2 | 45.7 | 47.9 | 22.6 | 45.7 | 68.3 | ||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
Domestic | — | 1.5 | 1.5 | 1 | 79.7 | 80.7 | 1 | 81.2 | 82.2 | ||||||||||||||||||||||||||||
Corporate bonds | — | 83.5 | 83.5 | 0.7 | 27.1 | 27.8 | 0.7 | 110.6 | 111.3 | ||||||||||||||||||||||||||||
Insurance funds | — | — | — | — | 14.5 | 14.5 | — | 14.5 | 14.5 | ||||||||||||||||||||||||||||
Other | — | — | — | 0.1 | — | 0.1 | 0.1 | — | 0.1 | ||||||||||||||||||||||||||||
Total at January 2, 2015 | $ | 144.5 | $ | 85 | $ | 229.5 | $ | 5.5 | $ | 226.7 | $ | 232.2 | $ | 150 | $ | 311.7 | $ | 461.7 | |||||||||||||||||||
(a) | Investment in funds outside the country where the pension plan originates is considered International. | ||||||||||||||||||||||||||||||||||||
As of January 3, 2014 | |||||||||||||||||||||||||||||||||||||
Domestic | Foreign | Total | |||||||||||||||||||||||||||||||||||
(In millions) | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | ||||||||||||||||||||||||||||
Asset Categories: | |||||||||||||||||||||||||||||||||||||
Cash and short-term investments | $ | 8.1 | $ | — | $ | 8.1 | $ | 2.6 | $ | — | $ | 2.6 | $ | 10.7 | $ | — | $ | 10.7 | |||||||||||||||||||
Equity securities: | |||||||||||||||||||||||||||||||||||||
Domestic | 121.2 | — | 121.2 | 0.2 | 58.7 | 58.9 | 121.4 | 58.7 | 180.1 | ||||||||||||||||||||||||||||
International (a) | — | 37.6 | 37.6 | — | 44 | 44 | — | 81.6 | 81.6 | ||||||||||||||||||||||||||||
Fixed income securities: | |||||||||||||||||||||||||||||||||||||
Domestic | — | 32.9 | 32.9 | 0.7 | 68.9 | 69.6 | 0.7 | 101.8 | 102.5 | ||||||||||||||||||||||||||||
Corporate bonds | — | 14 | 14 | 0.7 | 30.9 | 31.6 | 0.7 | 44.9 | 45.6 | ||||||||||||||||||||||||||||
Insurance funds | — | — | — | — | 15.6 | 15.6 | — | 15.6 | 15.6 | ||||||||||||||||||||||||||||
Other | — | — | — | — | 0.6 | 0.6 | — | 0.6 | 0.6 | ||||||||||||||||||||||||||||
Total at January 3, 2014 | $ | 129.3 | $ | 84.5 | $ | 213.8 | $ | 4.2 | $ | 218.7 | $ | 222.9 | $ | 133.5 | $ | 303.2 | $ | 436.7 | |||||||||||||||||||
(a) | Investment in funds outside the country where the pension plan originates is considered International. | ||||||||||||||||||||||||||||||||||||
Estimated Future Benefits Payments | We estimated future benefits payments are as follows at the end of 2014: | ||||||||||||||||||||||||||||||||||||
Estimated Future Benefit Payments | |||||||||||||||||||||||||||||||||||||
(In millions) | Domestic | Foreign | Total | ||||||||||||||||||||||||||||||||||
2015 | $ | 8.7 | $ | 7 | $ | 15.7 | |||||||||||||||||||||||||||||||
2016 | 9.5 | 7 | 16.5 | ||||||||||||||||||||||||||||||||||
2017 | 10.4 | 7.6 | 18 | ||||||||||||||||||||||||||||||||||
2018 | 11.2 | 7.7 | 18.9 | ||||||||||||||||||||||||||||||||||
2019 | 12 | 7.8 | 19.8 | ||||||||||||||||||||||||||||||||||
2020-2024 | 71.6 | 43.8 | 115.4 | ||||||||||||||||||||||||||||||||||
Total | $ | 123.4 | $ | 80.9 | $ | 204.3 | |||||||||||||||||||||||||||||||
STOCKHOLDERS_EQUITY_Tables
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended | |||||||||||||||
Jan. 02, 2015 | ||||||||||||||||
Activity Under the Director and Employee Stock Unit Plans | The following table summarizes the activity under the director and employee stock unit plans: | |||||||||||||||
(units in thousands) | Director | Weighted | Employee | Weighted | ||||||||||||
Stock | Average | Stock Units (c) | Average | |||||||||||||
Units (a) | Grant Date | Grant Date | ||||||||||||||
Value (b) | Value (b) | |||||||||||||||
Outstanding balance at December 30, 2011 | 250.2 | $ | 42.74 | 617.1 | $ | 48.16 | ||||||||||
Granted | 30.7 | 59.6 | 163.9 | 69.12 | ||||||||||||
Converted | (9.0 | ) | 43.47 | (238.7 | ) | 43.51 | ||||||||||
Canceled | — | — | (24.1 | ) | 57.24 | |||||||||||
Outstanding balance at December 28, 2012 | 271.9 | 44.62 | 518.2 | 56.68 | ||||||||||||
Granted | 30.6 | 76.13 | 167.5 | 68.64 | ||||||||||||
Converted | — | — | (213.6 | ) | 46.19 | |||||||||||
Canceled | — | — | (18.8 | ) | 66.63 | |||||||||||
Outstanding balance at January 3, 2014 | 302.5 | 47.81 | 453.3 | 65.64 | ||||||||||||
Granted | 20.3 | 93.26 | 126.8 | 106.9 | ||||||||||||
Converted | (39.5 | ) | 45.82 | (163.1 | ) | 59.92 | ||||||||||
Canceled | — | — | (11.9 | ) | 72.53 | |||||||||||
Outstanding balance at January 2, 2015 | 283.3 | $ | 51.42 | 405.1 | $ | 80.65 | ||||||||||
(a) | All director units are considered convertible although each individual has elected to defer conversion until a pre-arranged time. This is because all stock units, including director units, are included in our common stock outstanding on the date of vesting as the conditions for conversion have been met. | |||||||||||||||
(b) | Director and employee stock units are granted at no cost to the participants. | |||||||||||||||
(c) | All employee stock units outstanding are not vested at year end and are expected to vest. | |||||||||||||||
Weighted-average Fair Value of Stock Options Granted Valuation Assumption | The weighted-average fair value of the stock option grants was estimated at the date of the grants using the Black-Scholes option pricing model with the following assumptions and resulting value: | |||||||||||||||
Expected | Risk-Free | Expected | Average | Resulting | ||||||||||||
Stock Price | Interest Rate | Dividend | Expected | Black Scholes | ||||||||||||
Volatility | Yield | Term | Value | |||||||||||||
2013 Grants | 42 | % | 1.1 | % | — | 6.13 years | $ | 28.57 | ||||||||
2012 Grants | 40.2 | % | 1.2 | % | — | 6.13 years | $ | 28.04 | ||||||||
Activity Under the Employee Option Plans | The following table summarizes the activity under the employee option plans: | |||||||||||||||
(options in thousands) | Employee | Weighted-average | ||||||||||||||
Options | Exercise Price | |||||||||||||||
Balance at December 30, 2011 | 756.3 | $ | 49.26 | |||||||||||||
Adjusted (a) | 50.9 | 49.77 | ||||||||||||||
Granted | 55.3 | 69.4 | ||||||||||||||
Exercised | (113.5 | ) | 31.1 | |||||||||||||
Balance at December 28, 2012 | 749 | 50.14 | ||||||||||||||
Adjusted (a) | 39.4 | 47.91 | ||||||||||||||
Granted | 56 | 68.64 | ||||||||||||||
Exercised | (149.0 | ) | 54.17 | |||||||||||||
Balance at January 3, 2014 | 695.4 | 47.93 | ||||||||||||||
Exercised | (162.4 | ) | 44.4 | |||||||||||||
Balance at January 2, 2015 | 533 | $ | 49 | |||||||||||||
Options exercisable at year-end: | ||||||||||||||||
2012 (a) | 494.3 | $ | 45.9 | |||||||||||||
2013 (a) | 486.1 | $ | 43.62 | |||||||||||||
2014 | 405.6 | $ | 44.65 | |||||||||||||
(a) | In accordance with the anti-dilution provisions of our stock incentive plans, the exercise price and number of options outstanding and exercisable were adjusted to reflect the special dividend in 2013 and 2012. These changes resulted in no additional compensation expense. | |||||||||||||||
Changes to the Unvested Employee Stock Units and Options | The following table summarizes the changes to the unvested stock options: | |||||||||||||||
(shares in thousands) | Non-vested | Weighted-average | ||||||||||||||
Shares (a) | Grant Date | |||||||||||||||
Fair Value | ||||||||||||||||
Balance at January 3, 2014 | 209.3 | $ | 23.69 | |||||||||||||
Vested | (81.9 | ) | 20.35 | |||||||||||||
Balance at January 2, 2015 | 127.4 | $ | 25.84 | |||||||||||||
(a) | All unvested stock options are expected to vest. |
BUSINESS_SEGMENTS_Tables
BUSINESS SEGMENTS (Tables) | 12 Months Ended | |||||||||||||||||||||
Jan. 02, 2015 | ||||||||||||||||||||||
Segment Information | Segment information for 2014, 2013 and 2012 was as follows: | |||||||||||||||||||||
(In millions) | ||||||||||||||||||||||
2014 | ECS (a) | W&C | Fasteners | Corporate (b) | Total | |||||||||||||||||
Net Sales | $ | 3,411.40 | $ | 2,095.60 | $ | 938.5 | $ | — | $ | 6,445.50 | ||||||||||||
Operating income | 176.4 | 145.4 | 39.1 | — | 360.9 | |||||||||||||||||
Depreciation | 12.5 | 7.5 | 4 | — | 24 | |||||||||||||||||
Amortization of intangibles | 4.9 | 5.7 | 1.1 | — | 11.7 | |||||||||||||||||
Total assets | 1,867.20 | 972.5 | 406.9 | 339.9 | 3,586.50 | |||||||||||||||||
Capital expenditures | 2.6 | 1.3 | 6.1 | 30.3 | 40.3 | |||||||||||||||||
2013 | ECS | W&C | Fasteners | Corporate (b) | Total | |||||||||||||||||
Net Sales | $ | 3,174.50 | $ | 2,116.60 | $ | 935.4 | $ | — | $ | 6,226.50 | ||||||||||||
Operating income | 160.5 | 161.8 | 32.5 | — | 354.8 | |||||||||||||||||
Depreciation | 11.5 | 7.1 | 3.5 | — | 22.1 | |||||||||||||||||
Amortization of intangibles | 0.8 | 5.9 | 1.3 | — | 8 | |||||||||||||||||
Total assets | 1,220.00 | 938.3 | 413.9 | 283.7 | 2,855.90 | |||||||||||||||||
Capital expenditures | 2.1 | 1 | 4.9 | 24.2 | 32.2 | |||||||||||||||||
2012 | ECS | W&C | Fasteners | Corporate (b) | Total | |||||||||||||||||
Net Sales | $ | 3,236.30 | $ | 2,111.20 | $ | 905.6 | $ | — | $ | 6,253.10 | ||||||||||||
Operating income (c) | 156.7 | 166.5 | (29.9 | ) | (10.8 | ) | 282.5 | |||||||||||||||
Depreciation | 10.8 | 6.5 | 5.2 | — | 22.5 | |||||||||||||||||
Amortization of intangibles | 0.9 | 3.9 | 5.2 | — | 10 | |||||||||||||||||
Total assets | 1,272.40 | 997.9 | 461.6 | 352.1 | 3,084.00 | |||||||||||||||||
Capital expenditures | 4.1 | 1.1 | 5.3 | 23.7 | 34.2 | |||||||||||||||||
(a) | At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the ECS business segments. For further information, see Note 2. "Business Combination" . | |||||||||||||||||||||
(b) | Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. | |||||||||||||||||||||
(c) | In connection with our annual assessment of goodwill recoverability in the third quarter of 2012, we recorded a non-cash impairment charge to write-off the goodwill of $10.8 million associated with our former European reporting unit. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | |||||||||||||||||||||
Schedule of Segment Reporting Operating Income | ||||||||||||||||||||||
(In millions) | ECS | W&C | Fasteners | Corporate (a) | Total | |||||||||||||||||
2014 acquisition and integration costs | $ | (7.0 | ) | $ | (0.2 | ) | $ | (1.1 | ) | $ | — | $ | (8.3 | ) | ||||||||
Total of items impacting operating income in 2014 | $ | (7.0 | ) | $ | (0.2 | ) | $ | (1.1 | ) | $ | — | $ | (8.3 | ) | ||||||||
2013 none | — | — | — | — | — | |||||||||||||||||
2012 impairment of goodwill and long-lived assets | $ | (0.3 | ) | $ | (0.1 | ) | $ | (37.3 | ) | $ | (10.8 | ) | $ | (48.5 | ) | |||||||
2012 post-retirement pension charges | (8.2 | ) | (5.7 | ) | (1.4 | ) | — | (15.3 | ) | |||||||||||||
2012 restructuring charge | (4.1 | ) | (2.8 | ) | (3.2 | ) | — | (10.1 | ) | |||||||||||||
2012 inventory lower-of-cost-or-market adjustment | — | — | (1.2 | ) | — | (1.2 | ) | |||||||||||||||
Total of items impacting operating income in 2012 | $ | (12.6 | ) | $ | (8.6 | ) | $ | (43.1 | ) | $ | (10.8 | ) | $ | (75.1 | ) | |||||||
(a) In connection with our annual assessment of goodwill recoverability in the third quarter, we recorded a non-cash impairment charge to write-off the goodwill of $10.8 million associated with our former European reporting unit. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | ||||||||||||||||||||||
Summary of Net Sales and Property, Plant and Equipment and Total Assets by Geographic areas | The following table summarizes net sales and property and equipment and total assets by geographic areas for the years ended January 2, 2015, January 3, 2014 and December 28, 2012: | |||||||||||||||||||||
Years Ended | ||||||||||||||||||||||
(In millions) | 2-Jan-15 | 3-Jan-14 | 28-Dec-12 | |||||||||||||||||||
Sales | Net Sales | % of Total | Net Sales | % of Total | Net Sales | % of Total | ||||||||||||||||
Net Sales | Net Sales | Net Sales | ||||||||||||||||||||
North America | $ | 4,453.50 | 69.1 | % | $ | 4,292.10 | 69 | % | $ | 4,399.10 | 70.4 | % | ||||||||||
Europe | 1,101.30 | 17.1 | % | 1,097.30 | 17.6 | % | 1,071.90 | 17.1 | % | |||||||||||||
Emerging Markets | 890.7 | 13.8 | % | 837.1 | 13.4 | % | 782.1 | 12.5 | % | |||||||||||||
Net sales | $ | 6,445.50 | 100 | % | $ | 6,226.50 | 100 | % | $ | 6,253.10 | 100 | % | ||||||||||
(In millions) | 2-Jan-15 | 3-Jan-14 | ||||||||||||||||||||
Total assets | ||||||||||||||||||||||
North America | $ | 2,566.00 | $ | 1,865.50 | ||||||||||||||||||
Europe | 439.3 | 443.5 | ||||||||||||||||||||
Emerging Markets | 581.2 | 546.9 | ||||||||||||||||||||
Total assets | $ | 3,586.50 | $ | 2,855.90 | ||||||||||||||||||
(In millions) | 2-Jan-15 | 3-Jan-14 | ||||||||||||||||||||
Net property and equipment | ||||||||||||||||||||||
North America | $ | 97 | $ | 79.6 | ||||||||||||||||||
Europe | 17.2 | 17.1 | ||||||||||||||||||||
Emerging Markets | 6.8 | 7.3 | ||||||||||||||||||||
Net property and equipment | $ | 121 | $ | 104 | ||||||||||||||||||
Changes in Goodwill | The following table presents the changes in goodwill allocated to our reporting units from December 28, 2012 to January 2, 2015: | |||||||||||||||||||||
(In millions) | ECS | W&C | Fasteners | Total | ||||||||||||||||||
Balance as of December 28, 2012 | $ | 164.1 | $ | 177.9 | $ | — | $ | 342 | ||||||||||||||
Acquisition related (a) | — | 2.6 | — | 2.6 | ||||||||||||||||||
Foreign currency translation | (1.6 | ) | (0.9 | ) | — | (2.5 | ) | |||||||||||||||
Balance as of January 3, 2014 | $ | 162.5 | $ | 179.6 | $ | — | $ | 342.1 | ||||||||||||||
Acquisition related (b) (c) | 243.4 | 1.4 | — | 244.8 | ||||||||||||||||||
Foreign currency translation | (2.5 | ) | (2.1 | ) | — | (4.6 | ) | |||||||||||||||
Balance as of January 2, 2015 | $ | 403.4 | $ | 178.9 | $ | — | $ | 582.3 | ||||||||||||||
(a) | In the second quarter of 2013, we recorded an immaterial reclassification adjustment between intangible assets and goodwill related to the purchase price allocation related to the acquisition of Jorvex. | |||||||||||||||||||||
(b) | In the first quarter of 2014, we recorded an immaterial reclassification adjustment between deferred tax liabilities and goodwill related to the purchase price allocation related to the acquisition of Jorvex. | |||||||||||||||||||||
(c) | At the end of the third quarter of 2014, we acquired all of the outstanding capital stock of Tri-Ed from Tri-NVS Holdings, LLC, an independent distributor of security and low-voltage technology products. We paid $418.4 million, net of cash acquired of $11.6 million and a favorable net asset adjustment of $2.3 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. | |||||||||||||||||||||
SUMMARIZED_FINANCIAL_INFORMATI1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. (Tables) | 12 Months Ended | ||||||||||||
Jan. 02, 2015 | |||||||||||||
Text Block [Abstract] | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | The following summarizes the financial information for Anixter Inc.: | ||||||||||||
ANIXTER INC. | |||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||||
(In millions) | January 2, | January 3, | |||||||||||
2015 | 2014 | ||||||||||||
Assets: | |||||||||||||
Current assets | $ | 2,589.40 | $ | 2,275.10 | |||||||||
Property, equipment and capital leases, net | 131.5 | 115.6 | |||||||||||
Goodwill | 582.3 | 342.1 | |||||||||||
Other assets | 293.4 | 134.2 | |||||||||||
$ | 3,596.60 | $ | 2,867.00 | ||||||||||
Liabilities and Stockholder’s Equity: | |||||||||||||
Current liabilities | $ | 1,030.10 | $ | 898.9 | |||||||||
Subordinated notes payable to parent | 1.5 | 1 | |||||||||||
Long-term debt | 1,221.80 | 846.4 | |||||||||||
Other liabilities | 212.4 | 93 | |||||||||||
Stockholder’s equity | 1,130.80 | 1,027.70 | |||||||||||
$ | 3,596.60 | $ | 2,867.00 | ||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ||||||||||||
Years Ended | |||||||||||||
(In millions) | January 2, | January 3, | December 28, | ||||||||||
2015 | 2014 | 2012 | |||||||||||
Net sales | $ | 6,445.50 | $ | 6,226.50 | $ | 6,253.10 | |||||||
Operating income | $ | 366.8 | $ | 360.7 | $ | 288.2 | |||||||
Income before income taxes | $ | 299.5 | $ | 303.5 | $ | 235.2 | |||||||
Net income | $ | 197.7 | $ | 204.9 | $ | 140.6 | |||||||
Comprehensive income | $ | 86.3 | $ | 230.1 | $ | 174.3 | |||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Jan. 02, 2015 | |||||||||||||||||
Text Block [Abstract] | |||||||||||||||||
Summary of Quarterly Financial Data | |||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter(a) | Quarter(b) | Quarter(c) | Quarter(d) | ||||||||||||||
Year ended January 2, 2015 | |||||||||||||||||
Net sales | $ | 1,523.80 | $ | 1,586.00 | $ | 1,666.60 | $ | 1,669.10 | |||||||||
Cost of goods sold | 1,170.20 | 1,223.10 | 1,288.00 | 1,295.80 | |||||||||||||
Operating income | 85.7 | 92.4 | 94 | 88.8 | |||||||||||||
Income before income taxes | 64.2 | 79.7 | 80.4 | 70.5 | |||||||||||||
Net income | $ | 47.4 | $ | 53.8 | $ | 52.5 | $ | 41.1 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 1.44 | $ | 1.63 | $ | 1.59 | $ | 1.24 | |||||||||
Diluted | $ | 1.43 | $ | 1.61 | $ | 1.57 | $ | 1.23 | |||||||||
Stock price range: | |||||||||||||||||
High | $ | 115.84 | $ | 105.33 | $ | 103.47 | $ | 89.95 | |||||||||
Low | $ | 84.55 | $ | 92.79 | $ | 82.4 | $ | 75.81 | |||||||||
Close | $ | 99.06 | $ | 102.89 | $ | 85.41 | $ | 88.18 | |||||||||
(a) | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | ||||||||||||||||
(b) | In 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 allowances in Europe. | ||||||||||||||||
(c) | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | ||||||||||||||||
(d) | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | ||||||||||||||||
(In millions, except per share amounts) | First | Second | Third | Fourth | |||||||||||||
Quarter | Quarter | Quarter(a) | Quarter | ||||||||||||||
Year ended January 3, 2014 | |||||||||||||||||
Net sales | $ | 1,490.90 | $ | 1,579.50 | $ | 1,557.60 | $ | 1,598.50 | |||||||||
Cost of goods sold | 1,152.70 | 1,223.40 | 1,200.60 | 1,227.10 | |||||||||||||
Operating income | 81 | 85.8 | 92.4 | 95.6 | |||||||||||||
Income before income taxes | 65.4 | 70.8 | 79.5 | 80.5 | |||||||||||||
Net income | $ | 42.5 | $ | 46.1 | $ | 53.8 | $ | 58.1 | |||||||||
Income per share: | |||||||||||||||||
Basic | $ | 1.3 | $ | 1.41 | $ | 1.64 | $ | 1.77 | |||||||||
Diluted | $ | 1.27 | $ | 1.4 | $ | 1.62 | $ | 1.75 | |||||||||
Stock price range: | |||||||||||||||||
High | $ | 71.43 | $ | 78.22 | $ | 89.61 | $ | 92.46 | |||||||||
Low | $ | 62 | $ | 64.94 | $ | 75.15 | $ | 80.26 | |||||||||
Close | $ | 66.13 | $ | 71.71 | $ | 82.38 | $ | 89.61 | |||||||||
(a) | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||
In Millions, unless otherwise specified | Apr. 04, 2014 | Sep. 27, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Apr. 03, 2015 |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Fiscal Year Term | P52W | P53W | P52W | |||
Allowance for doubtful accounts | $26.70 | $16.80 | ||||
Provision for doubtful accounts | 12 | 10.4 | 7.5 | |||
Inventories | 1,072.80 | 959.8 | ||||
Net of inventory reserves | 60.5 | 57 | ||||
Property and Equipment, net | 121 | 104 | ||||
Depreciation expense | 24 | 22.1 | 22.5 | |||
Capitalized costs | 45.4 | 39.1 | ||||
Capitalized Computer Software, Amortization | 3.3 | 3.2 | 1.9 | |||
Intangible Assets, Gross (Excluding Goodwill) | 268 | 104.1 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | -60 | -48.8 | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 10.6 | 0 | ||||
Average amortization of intangible assets | 20 | |||||
Years of Average Amortization of Intangibles | 5 years | |||||
Foreign exchange losses | -9.1 | -9.8 | -11.7 | |||
Foreign Exchange Gain Loss Due To Devaluation | 8 | 8 | 1.1 | 0 | ||
Rate of foreign currency denominated accounts not hedged | 100.00% | |||||
Interest Income Related To Finalizing Prior Year Tax Returns | 0.7 | 0.7 | ||||
Reserves for returns and credits provided to customers | 24.8 | 27.6 | ||||
Advertising and promotion costs | 13.5 | 12.8 | 13.1 | |||
Shipping and handling costs | 110.7 | 110.5 | 106.4 | |||
Percentage threshold for tax benefit recognized | 50.00% | |||||
Total additional shares included in the computation of diluted earnings per share | 0.3 | 0.3 | 0.3 | |||
Subsequent Event [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Exchange Gain Loss Due To Devaluation | 0.6 | |||||
Equipment And Computer Software [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and Equipment, net | 91.1 | 76.8 | ||||
Equipment And Computer Software [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 3 years | |||||
Equipment And Computer Software [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 15 years | |||||
Building and Building Improvements [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and Equipment, net | 29.9 | 27.2 | ||||
Argentina, Pesos | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 8 | 6.5 | ||||
Venezuela bolivar [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 49 | 6.3 | ||||
Venezuela bolivar [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 4.3 | |||||
Business acquisition [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Average amortization of intangible assets | 13.9 | |||||
Net [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative, Notional Amount | 121.9 | 152 | ||||
gross [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative, Notional Amount | $222.90 | $217.40 | ||||
Convertible notes due 2013 [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Convertible notes due (in shares) | 0 | 0.1 | 0.4 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Indefinite and Finite-lived Intangible Assets (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 268 | $104.10 |
Finite-Lived Intangible Assets, Accumulated Amortization | -60 | -48.8 |
Indefinite-Lived Intangible Assets (Excluding Goodwill) | 10.6 | 0 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 212.3 | 93.8 |
Contractual Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 22.9 | 0 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 15.5 | 6.6 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 5.2 | 2 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | 1.5 | 1.7 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -51.8 | -42.4 |
Contractual Rights [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -0.3 | 0 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -4.8 | -3.5 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -2.2 | -2 |
Intellectual Property [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | -0.9 | ($0.90) |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years 0 months | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years 0 months | |
Contractual Rights [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 21 years 0 months | |
Trade Names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years 0 months | |
Trade Names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years 0 months | |
Noncompete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 4 years 0 months | |
Noncompete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years 0 months | |
Intellectual Property [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years 0 months |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Components of Other Net Reflected in Consolidated Statements of Operations (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Apr. 04, 2014 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Other, net loss: | ||||
Foreign Currency Transaction Gain (Loss), before Tax | ($9.10) | ($9.80) | ($11.70) | |
Foreign Exchange Gain Loss Due To Devaluation | -8 | -8 | -1.1 | 0 |
Cash surrender value of life insurance policies | 0.8 | 0.2 | 0.5 | |
Other | -1.7 | -0.5 | -2 | |
Total | ($18) | ($11.20) | ($13.20) |
ACCRUED_EXPENSES_Accrued_Expen
ACCRUED EXPENSES - Accrued Expenses (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Schedule Of Accrued Expenses And Other Current Liabilities [Line Items] | ||
Salaries and fringe benefits | $87.70 | $89.90 |
Other accrued expenses | 111.5 | 120.6 |
Total accrued expenses | $199.20 | $210.50 |
BUSINESS_COMBINATION_Business_
BUSINESS COMBINATION - Business Combination (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 02, 2015 | |
Business Acquisition [Line Items] | ||
Cash | $11.60 | |
Current assets, net | 203.9 | |
Property, plant, and equipment | 2.7 | |
Finite and indefinite lived intangible assets acquired | 166.8 | |
Current liabilities | -144.6 | |
Non-current liabilities | -56.1 | |
Total purchase price | 427.7 | |
Enterprise Cabling And Security [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill, Acquired During Period | $243.40 | [1] |
[1] | At the end of the third quarter of 2014, we acquired all of the outstanding capital stock of Tri-Ed from Tri-NVS Holdings, LLC, an independent distributor of security and low-voltage technology products. We paid $418.4 million, net of cash acquired of $11.6 million and a favorable net asset adjustment of $2.3 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. |
BUSINESS_COMBINATION_Intangibl
BUSINESS COMBINATION, Intangible assets acquired (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 02, 2015 |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Indefinite-lived Intangible Assets Acquired | $10.60 |
Finite and indefinite lived intangible assets acquired | 166.8 |
Customer Relationships [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Finite-lived Intangible Assets Acquired | 120.6 |
Tri-Ed trade name [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Finite-lived Intangible Assets Acquired | 9.2 |
Contractual Rights [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Finite-lived Intangible Assets Acquired | 23.2 |
Noncompete Agreements [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Finite-lived Intangible Assets Acquired | $3.20 |
Maximum [Member] | Customer Relationships [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 18 years 0 months |
Maximum [Member] | Tri-Ed trade name [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
Maximum [Member] | Contractual Rights [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 21 years |
Maximum [Member] | Noncompete Agreements [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 5 years |
Minimum [Member] | Customer Relationships [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years 0 months |
Minimum [Member] | Noncompete Agreements [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 4 years |
BUSINESS_AQUISITION_PRO_FORMA_
BUSINESS AQUISITION, PRO FORMA (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $6,865.10 | $6,798.70 |
Net income | $201.30 | $203.90 |
Basic | $6.09 | $6.22 |
Diluted | $6.04 | $6.14 |
BUSINESS_COMBINATION_Additiona
BUSINESS COMBINATION - Additional information (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Jan. 02, 2015 | Oct. 03, 2014 | Sep. 17, 2014 |
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||||
Acquisition of businesses, net of cash acquired | $418.40 | $0 | $55.30 | |||
Cash | 11.6 | 11.6 | ||||
Favorable net asset adjustment | 2.3 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 12.2 | 12.2 | ||||
Acquisition and integration costs | -8.3 | |||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 176 | |||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 6.4 | |||||
Revolving Credit Facility [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Length of Revolver Credit Agreement | 5 years | |||||
Term loan [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Long-term Debt, Gross | 200 | 200 | ||||
Senior notes due 2021 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Long-term Debt, Gross | 400 | 400 | ||||
Incurred to date [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration costs | 7 | |||||
Within operating expenses [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration costs | 6.7 | 1 | 5.7 | |||
Within other expenses [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition and integration costs | 0.3 | 0.3 | ||||
Enterprise Cabling And Security [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition of businesses, net of cash acquired | $418.40 |
RESTRUCTURING_CHARGE_RESTRUCTU
RESTRUCTURING CHARGE RESTRUCTURING CHARGES - Summary of Liabilities Associated with Restructuring and Employee Severance (Details) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | ||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Beginning balance | $2.70 | $9.10 | |||
Restructuring Charges | 10.1 | 10.1 | |||
Payments and other | -1.8 | -6.4 | |||
Restructuring Reserve, Ending balance | 0.9 | 2.7 | 9.1 | ||
Employee Related Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Beginning balance | 2.3 | [1] | 6.7 | [1] | |
Payments and other | -2.2 | [1] | -4.4 | [1] | |
Restructuring Reserve, Ending balance | 0.1 | [1] | 2.3 | [1] | |
Restructuring Charge Facility Exit And Other Costs [Member] | |||||
Restructuring Reserve [Roll Forward] | |||||
Restructuring Reserve, Beginning balance | 0.4 | [2] | 2.4 | [2] | |
Payments and other | 0.4 | [2] | -2 | [2] | |
Restructuring Reserve, Ending balance | $0.80 | [2] | $0.40 | [2] | |
[1] | Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated. | ||||
[2] | Facility exit and other costs primarily consist of lease termination costs. |
RESTRUCTURING_CHARGE_RESTRUCTU1
RESTRUCTURING CHARGE RESTRUCTURING CHARGES - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2014 | Dec. 28, 2012 | Jan. 02, 2015 |
Restructuring and Related Activities [Abstract] | |||
Restructuring Charges | $10.10 | $10.10 | |
Restructuring and Related Cost, Number of Positions Eliminated | 200 | ||
Restructuring Reserve | $2.70 | $9.10 | $0.90 |
IMPAIRMENT_OF_GOODWILL_AND_LON2
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2012 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Sep. 28, 2012 |
Impairments Of Goodwill And Long Lived Assets [Line Items] | |||||
Percentage of carrying value over fair value of goodwill | 50.00% | ||||
Discount rate | 14.00% | ||||
Terminal growth rate | 3.00% | ||||
Control premium | 26.00% | ||||
Impairment of goodwill and long-lived assets | $0 | $1.70 | $48.50 | ||
Europe [Member] | |||||
Impairments Of Goodwill And Long Lived Assets [Line Items] | |||||
Discount rate | 12.90% | ||||
Terminal growth rate | 3.00% | ||||
Non-cash impairment charge of Goodwill | 10.8 | ||||
Impairment charge related to write-down of intangible assets | 11 | ||||
Impairment charge related to write-down of property and equipment | 5.4 | ||||
ECS [Member] | |||||
Impairments Of Goodwill And Long Lived Assets [Line Items] | |||||
Discount rate | 10.00% | ||||
Terminal growth rate | 3.00% | ||||
Electrical Wire And Cable [Member] | |||||
Impairments Of Goodwill And Long Lived Assets [Line Items] | |||||
Discount rate | 9.90% | ||||
Terminal growth rate | 3.00% | ||||
OEM Supply [Member] | |||||
Impairments Of Goodwill And Long Lived Assets [Line Items] | |||||
Discount rate | 12.30% | ||||
Terminal growth rate | 3.00% | ||||
Non-cash impairment charge of Goodwill | 15.3 | ||||
Impairment charge related to write-down of intangible assets | 5.6 | ||||
Impairment charge related to write-down of property and equipment | 0.4 |
IMPAIRMENT_OF_GOODWILL_AND_LON3
IMPAIRMENT OF GOODWILL AND LONG-LIVED ASSETS - Reductions in Carrying Values of Assets (Detail) | 3 Months Ended | |
Dec. 28, 2012 | Sep. 28, 2012 | |
Schedule Of Intangible Assets [Line Items] | ||
Discount rate | 14.00% | |
Minimum [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Discount rate | 14.50% | |
Maximum [Member] | ||
Schedule Of Intangible Assets [Line Items] | ||
Discount rate | 16.00% |
DEBT_Debt_Detail
DEBT- Debt (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $1,207.70 | $831.10 |
Senior notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 394.2 | 0 |
Senior notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 345.9 | 345.1 |
Senior notes due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 200 | 200 |
Term loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 198.8 | 0 |
Accounts receivable securitization facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 65 | 145 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 101.5 |
Senior notes due 2014 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 32.1 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $3.80 | $7.40 |
DEBT_Additional_Information_De
DEBT- Additional Information (Detail) (USD $) | 0 Months Ended | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Share data in Millions, unless otherwise specified | Jul. 18, 2013 | Jul. 15, 2013 | Apr. 04, 2014 | Sep. 27, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 30, 2011 |
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $210,100,000 | ||||||||
Annual maturities of debt, year two | 10,000,000 | ||||||||
Annual maturities of debt, year three | 76,200,000 | ||||||||
Annual maturities of debt, year four | 171,300,000 | ||||||||
Annual maturities of debt, year five | 345,900,000 | ||||||||
Annual maturities of debt, after year five | 394,200,000 | ||||||||
Long-term debt, weighted average amount outstanding | 1,027,400,000 | 896,500,000 | |||||||
Weighted-average cost of borrowings | 4.70% | 5.30% | 6.10% | ||||||
Long-term debt, interest paid | 41,100,000 | 43,500,000 | 35,400,000 | ||||||
Committed, unused available credit lines | 641,900,000 | ||||||||
Line of credit facility maximum borrowing capacity | 400,000,000 | ||||||||
Debt instruments, net available borrowings | 337,700,000 | ||||||||
Minimum unrestricted domestic cash balance plus availability under revolving credit agreement and accounts receivable securitization facility | 175,000,000 | ||||||||
Revolving lines of credit, maturity date description | Nov-18 | ||||||||
Long-term Debt | 1,207,700,000 | 831,100,000 | |||||||
Cash and cash equivalents | 92,000,000 | 57,300,000 | 89,400,000 | 106,100,000 | |||||
Payments of Debt Issuance Costs | 2,300,000 | 1,200,000 | 1,500,000 | ||||||
Lines of credit agreement, fixed charge coverage ratio | 300.00% | ||||||||
Consolidated Fixed Charge Coverage Ratio | 379.00% | ||||||||
Debt instruments, available borrowings | 304,200,000 | ||||||||
Consolidated leverage ratio | 274.00% | ||||||||
Base reference amount added to specified percent of company's cumulative net income to compute requirement of debt instrument covenant | 175,000,000 | ||||||||
Percent of company's cumulative net income added to base reference amount to compute requirement of debt instrument covenant | 50.00% | ||||||||
Line Of Credit Facility Covenant Amount | 162,300,000 | ||||||||
Proforma leverage ratio | 275.00% | ||||||||
Annual Limitation On Base Reference Amount To Compute Requirement Of Debt Instrument Covenant | 7,500,000 | ||||||||
Yield to maturity rate of senior notes | 12.00% | ||||||||
Repayments of Long-term Debt | 32,300,000 | 32,300,000 | 0 | 0 | |||||
Receivables Sold | 548,500,000 | 524,200,000 | |||||||
Short-term debt | 10,100,000 | 7,400,000 | |||||||
Funding delay | 35 days | ||||||||
Retirement of Notes | 300,000,000 | 0 | 300,000,000 | 0 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | 72.81 | ||||||||
Warrant exercisable period | 40 days | ||||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | 15-Jul-13 | ||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 5.4 | ||||||||
Payments for repurchase of warrants | 19,200,000 | 0 | 19,200,000 | 0 | |||||
Long-term Debt Fair Value | 1,243,800,000 | 867,900,000 | |||||||
Term loan [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Long-term Debt, Gross | 200,000,000 | ||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | 1,200,000 | ||||||||
Long term Debt Maturities, Repayments of Principal Year Two and Three | 2,500,000 | ||||||||
Long term Debt Maturities, Repayments of Principal Years Three and Four | 3,800,000 | ||||||||
Long term Debt Maturities, Repayments of Principal Final Payment Year 4 | 160,000,000 | ||||||||
Long-term Debt | 198,800,000 | 0 | |||||||
Payments of Debt Issuance Costs | 700,000 | ||||||||
Accounts receivable securitization facility [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Line of credit facility maximum borrowing capacity | 300,000,000 | ||||||||
Long-term Debt | 65,000,000 | 145,000,000 | |||||||
Senior notes due 2014 [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Debt Instrument, Face Amount | 200,000,000 | ||||||||
Long-term Debt | 0 | 32,100,000 | |||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 10.00% | ||||||||
Revolving Credit Facility [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Committed, unused available credit lines | 406,900,000 | ||||||||
Length of Revolver Credit Agreement | 5 years | ||||||||
Long-term Debt | 0 | 101,500,000 | |||||||
Debt instrument, description of variable rate | 1.75% | ||||||||
Incremental facility [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Long-term Debt | $200,000,000 | ||||||||
New terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Consolidated leverage ratio maximum | 3.5 | ||||||||
Prior terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Consolidated leverage ratio maximum | 3.25 | ||||||||
JP Morgan [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Previous debt commitments split | 57.33% | ||||||||
Current debt commitments split | 50.00% | ||||||||
Suntrust [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Previous debt commitments split | 42.67% | ||||||||
Current debt commitments split | 50.00% | ||||||||
Prior terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Unused Capacity Fees Low Range | 0.48% | ||||||||
Unused Capacity Fees High Range | 0.58% | ||||||||
New terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Unused Capacity Fees Low Range | 0.40% | ||||||||
Unused Capacity Fees High Range | 0.50% | ||||||||
New basis points [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Debt instrument, description of variable rate | 0.80% | ||||||||
Prior basis points [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Debt instrument, description of variable rate | 0.95% | ||||||||
New terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Senior notes due 2015 leverage ratio maintenance maximum | 3 | ||||||||
Prior terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Senior notes due 2015 leverage ratio maintenance maximum | 2.75 | ||||||||
New terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Variable interest entity leverage ratio maximum | 3.5 | ||||||||
Prior terms [Member] | |||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||||
Variable interest entity leverage ratio maximum | 3.25 |
DEBT_Longterm_debt_Senior_note
DEBT Long-term debt Senior notes due 2021 (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Debt Instrument [Line Items] | |||
Payments of Debt Issuance Costs | $2.30 | $1.20 | $1.50 |
Redemption Price Rate On Principal Amount | 100.00% | ||
Senior notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 400 | ||
Discount, percentage of par value | 98.50% | ||
Debt instrument discount, gross | 6 | ||
Proceeds from Issuance of Debt | 393.1 | ||
Payments of Debt Issuance Costs | $0.90 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.13% | ||
Redemption Price Rate On Principal Amount | 100.00% | ||
Redemption Price As Percentage Of Principal Amount In Case Of Change Of Control | 101.00% |
DEBT_Longterm_debt_Senior_note1
DEBT Long-term debt Senior notes due 2019 (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Debt Instrument [Line Items] | |||
Payments of Debt Issuance Costs | $2.30 | $1.20 | $1.50 |
Redemption Price Rate On Principal Amount | 100.00% | ||
Senior notes due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt, Gross | 350 | ||
Discount, percentage of par value | 98.25% | ||
Debt instrument discount, gross | 6.1 | ||
Proceeds from Issuance of Debt | 342.9 | ||
Payments of Debt Issuance Costs | $1 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.63% | ||
Debt Instrument, Maturity Date | 1-May-19 | ||
Redemption Price As Percentage Of Principal Amount In Case Of Change Of Control | 101.00% |
DEBT_Debt_face_amount_Detail
DEBT Debt, face amount (Detail) (Senior notes due 2015 [Member], USD $) | 12 Months Ended |
Jan. 02, 2015 | |
Senior notes due 2015 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $200,000,000 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.95% |
Debt Instrument Frequency Of Interest Payment | payable semi-annually on March 1 and September 1 of each year |
Debt Instrument, Maturity Date | 1-Mar-15 |
DEBT_5year_Revolving_Credit_Li
DEBT 5-year Revolving Credit Line (Details) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt | $1,207.70 | $831.10 |
Consolidated Fixed Charge Coverage Ratio | 379.00% | |
Term loan [Member] | ||
Line of Credit Facility [Line Items] | ||
Long-term Debt, Gross | 200 | |
Long-term Debt | $198.80 | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Disclosure Commitments And Contingencies Additional Information [Abstract] | |||
Operating Leases expiration | various dates through 2027 | ||
Rental expense | $86.10 | $83.70 | $83.50 |
Additional amount recorded in discontinued operations | 0.7 | ||
Letters of Credit Outstanding, Amount | $44 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Minimum Lease Commitments Under Operating Leases (Detail) (USD $) | Jan. 02, 2015 |
In Millions, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
2014 | $63.50 |
2015 | 50.5 |
2016 | 37.7 |
2017 | 29.6 |
2018 | 20.8 |
2019 and thereafter | 45 |
Total | $247.10 |
INCOME_TAXES_Additional_Inform
INCOME TAXES - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Mar. 30, 2012 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 30, 2011 |
Schedule Of Income Taxes [Line Items] | |||||
Income before income taxes, Domestic | $188.70 | $186.80 | $161.30 | ||
Income before income taxes, Foreign | 106.1 | 109.4 | 48.3 | ||
Statutory corporate federal tax rate | 35.00% | ||||
Payments for income taxes, net | 117 | 82 | 127 | ||
Undistributed earnings of foreign subsidiaries | 679.4 | ||||
Interest and penalties related to taxes | 1.7 | 0.3 | 0.2 | ||
Income Tax Examination Penalties And Interest Expense Net Of Tax | 1.1 | ||||
Unrecognized tax benefit accrual, for payment of interest and penalties | 0.7 | 2 | |||
Uncertain tax benefit | 0.7 | 1 | |||
Unrecognized tax benefit | 3 | 3.4 | 3.4 | 4.2 | |
Unrecognized tax benefit that would affect effective tax rate in next twelve months | 0.4 | ||||
Reserves for uncertain tax positions, including interest and penalties | 3.7 | ||||
Indefinite [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Operating Loss Carryforwards | 79.5 | ||||
Domestic Tax Authority [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Undistributed earnings, U.S. federal income tax | 51.5 | ||||
Foreign Tax Authority [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Operating Loss Carryforwards | 94.7 | ||||
Undistributed earnings, U.S. federal income tax | $40.20 | ||||
Minimum [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Operating Loss Carryforwards, Expiration Dates | 3-Jan-15 | ||||
Maximum [Member] | |||||
Schedule Of Income Taxes [Line Items] | |||||
Operating Loss Carryforwards, Expiration Dates | 31-Dec-23 |
INCOME_TAXES_Income_Tax_Expens
INCOME TAXES - Income Tax Expense (Benefit) (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Current: | |||
Foreign | $30.80 | $30.90 | $28.50 |
State | 5.4 | 5.5 | 8.5 |
Federal | 38.1 | 37 | 57.2 |
Total current income taxes | 74.3 | 73.4 | 94.2 |
Deferred: | |||
Foreign | -1 | 1.6 | -14.6 |
State | 3.3 | 2.5 | 0.3 |
Federal | 23.4 | 18.2 | 4.9 |
Total deferred income taxes | 25.7 | 22.3 | -9.4 |
Income tax expense | $100 | $95.70 | $84.80 |
INCOME_TAXES_Reconciliation_of
INCOME TAXES - Reconciliation of Tax Provision at Federal Statutory Rate to Provision for Income (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Reconciliation Of Statutory Federal Tax Rate [Line Items] | |||
Statutory tax expense | $103.20 | $103.70 | $73.40 |
Increase (reduction) in taxes resulting from: | |||
Nondeductible goodwill impairment loss | 0 | 0 | 9.1 |
State income taxes, net | 5.9 | 5.4 | 5.5 |
Foreign tax effects | -1.1 | -8.7 | -4.6 |
Change in valuation allowance (a) (c) | -9.2 | 0.3 | 0.5 |
Other, net (b) | 1.2 | -5 | 0.9 |
Income tax expense | $100 | $95.70 | $84.80 |
INCOME_TAXES_Components_of_Def
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 |
In Millions, unless otherwise specified | ||
Components Of Deferred Tax Assets And Liabilities [Line Items] | ||
Property, equipment, intangibles and other | ($84.80) | ($30.80) |
Gross deferred tax liabilities | -84.8 | -30.8 |
Deferred compensation and other postretirement benefits | 41.2 | 38.7 |
Foreign NOL carryforwards and other | 28.2 | 34.5 |
Accrued expenses and other | 4.7 | 10.3 |
Inventory reserves | 14.6 | 12 |
Allowance for doubtful accounts | 7.7 | 6.2 |
Gross deferred tax assets | 96.4 | 101.7 |
Deferred tax assets, net of deferred tax liabilities | 11.6 | 70.9 |
Valuation allowance | -11.9 | -21.9 |
Net deferred tax assets | -0.3 | 49 |
Net current deferred tax assets | 33.7 | 32.8 |
Net non-current deferred tax assets | -34 | 16.2 |
Net deferred tax assets | ($0.30) | $49 |
INCOME_TAXES_Reconciliation_of1
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $3.40 | $3.40 | $4.20 |
Additions for tax positions of prior years | 0.4 | 0.2 | 2.2 |
Reductions for tax positions of prior years | -0.8 | -0.2 | -3 |
Ending Balance | $3 | $3.40 | $3.40 |
PENSION_PLANS_POSTRETIREMENT_B2
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 03, 2014 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 28, 2012 | Jan. 01, 2016 |
Plans | Plans | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
General discussion of pension and other postretirement benefits | 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. | |||||
Company contributions | $16 | $14.50 | ||||
Actuarial loss (gain) related to settlement charge | 0 | 0 | 15.3 | |||
Plan amendments | -0.1 | -0.2 | ||||
Percent of pay of one-time transition credit | 5.00% | 5.00% | ||||
Age required to received transition credit | 50 years | |||||
Combined age and years of service required to receive transition credit | 70 years | |||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | 2.5 | |||||
Defined Benefit Plan Percentage Of Participants Salary Received As Credit | 2.00% | |||||
Percentage of participant's salary received as credit for service period of five years or more | 2.50% | |||||
Participant's years of service required to receive a credit equal to 2.5% | 5 years | |||||
Vesting period | 3 years | |||||
Treasury Note Rate Term | 10 years | |||||
Weighted-average expected rate of return on plan assets | 6.08% | |||||
Defined Benefit Plan Assets Actual Gain | 10.00% | 11.90% | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 436.7 | 461.7 | 436.7 | 385.7 | 385.7 | |
Defined Benefit Plan, Other Changes | 10.8 | |||||
Defined Benefit Plan, Change in Assumption of Mortality Rate | 17.7 | |||||
Defined Benefit Plan, Benefit Obligation | 467.8 | 556 | 467.8 | 481.1 | 481.1 | |
Defined Benefit Plan, Funded Status of Plan | -31.1 | -94.3 | -31.1 | |||
Number of plans with accumulated benefit obligations in excess of fair value of plan assets | 10 | 9 | ||||
Aggregate pension accumulated benefit obligation | 121.6 | 398.9 | 121.6 | |||
Aggregate fair value of plan assets | 103.6 | 334.9 | 103.6 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 15.7 | |||||
Minimum period of service required to get enrolled in tax deferred plan | 60 days | |||||
Percentage of participant's salary received as credit | 50.00% | |||||
Rate of Company's matching contribution on participant's compensation | 5.00% | |||||
Defined contribution plans, expense | 11 | 9.4 | 6.6 | |||
Number of previous month of 10-year Treasury note rate used to calculate average rate for interest accrual | 3 months | |||||
Interests accrual factor | 1.4 | |||||
Deferred compensation liability | 46.1 | 45.7 | 46.1 | |||
Cash surrender value recorded under deferred compensation plan | 34.6 | 35.5 | 34.6 | |||
Anixter Inc Pension Plan [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Company contributions | 34 | |||||
Lump sum settlement payment | 36.2 | |||||
Actuarial loss (gain) related to settlement charge | 15.3 | |||||
Pension Plans, Domestic [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Company contributions | 8.3 | 4.6 | ||||
Actuarial loss (gain) related to settlement charge | 0 | 0 | 15.3 | |||
Plan amendments | 0 | -0.2 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 213.8 | 229.5 | 213.8 | 183.7 | 183.7 | |
Defined Benefit Plan, Benefit Obligation | 224.9 | 277.4 | 224.9 | 248.9 | 248.9 | |
Defined Benefit Plan, Funded Status of Plan | -11.1 | -47.9 | -11.1 | |||
Accumulated Benefit Obligation | 223.3 | 275.2 | 223.3 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 8.7 | |||||
Pension Plans, Foreign [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Company contributions | 7.7 | 9.9 | ||||
Actuarial loss (gain) related to settlement charge | 0 | 0 | 0 | |||
Plan amendments | -0.1 | 0 | ||||
Defined Benefit Plan, Fair Value of Plan Assets | 222.9 | 232.2 | 222.9 | 202 | 202 | |
Defined Benefit Plan, Benefit Obligation | 242.9 | 278.6 | 242.9 | 232.2 | 232.2 | |
Defined Benefit Plan, Funded Status of Plan | -20 | -46.4 | -20 | |||
Accumulated Benefit Obligation | 211.2 | 241.4 | 211.2 | |||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | 7 | |||||
Projected Benefit Obligation [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.79% | 4.64% | ||||
Projected Benefit Obligation [Member] | Pension Plans, Domestic [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.14% | 4.81% | ||||
Projected Benefit Obligation [Member] | Pension Plans, Foreign [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.44% | 4.49% | ||||
Scenario, Forecast [Member] | Pension Plans, Domestic [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Estimated Company contribution to plans | 9 | |||||
Scenario, Forecast [Member] | Pension Plans, Foreign [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Estimated Company contribution to plans | 9.5 | |||||
Scenario, Forecast [Member] | Unfunded Non-Qualified Pension Plan, Domestic [Member] | ||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||||
Defined Benefit Plan, Expected Future Benefit Payments, Next Twelve Months | $0.80 |
PENSION_PLANS_POSTRETIREMENT_B3
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Weighted Average Percentage of Actual and Target Asset Allocation (Detail) | 12 Months Ended | |
Jan. 02, 2015 | Jan. 03, 2014 | |
Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 100.00% | 100.00% |
Allocation Guidelines, Target | 100.00% | 100.00% |
Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 100.00% | 100.00% |
Allocation Guidelines, Target | 100.00% | |
Equity Securities [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 59.40% | 74.30% |
Allocation Guidelines, Target | 62.00% | 70.00% |
Equity Securities [Member] | Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 46.00% | 46.00% |
Allocation Guidelines, Target | 48.00% | |
Fixed Income Investments [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 37.10% | 21.90% |
Allocation Guidelines, Minimum | 31.00% | 25.00% |
Allocation Guidelines, Target | 38.00% | 30.00% |
Allocation Guidelines, Maximum | 45.00% | 35.00% |
Fixed Income Investments [Member] | Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 47.00% | 45.00% |
Allocation Guidelines, Target | 45.00% | |
Other Investments [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 3.50% | 3.80% |
Allocation Guidelines, Minimum | 0.00% | 0.00% |
Allocation Guidelines, Target | 0.00% | 0.00% |
Allocation Guidelines, Maximum | 10.00% | 0.00% |
Other Investments [Member] | Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 7.00% | 9.00% |
Allocation Guidelines, Target | 7.00% | |
Large capitalization U.S. stocks [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 22.80% | 35.20% |
Allocation Guidelines, Minimum | 17.00% | 20.00% |
Allocation Guidelines, Target | 22.00% | 30.00% |
Allocation Guidelines, Maximum | 27.00% | 40.00% |
Small capitalization U.S. stocks [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 27.70% | 21.50% |
Allocation Guidelines, Minimum | 20.00% | 15.00% |
Allocation Guidelines, Target | 30.00% | 20.00% |
Allocation Guidelines, Maximum | 40.00% | 25.00% |
International Stocks [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 8.90% | 17.60% |
Allocation Guidelines, Minimum | 5.00% | 15.00% |
Allocation Guidelines, Target | 10.00% | 20.00% |
Allocation Guidelines, Maximum | 15.00% | 25.00% |
PENSION_PLANS_POSTRETIREMENT_B4
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Summary of Changes in Accumulated Other Comprehensive Income for Defined Benefit Plans (Detail) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 |
Disclosure Pension Plans Post Retirement Benefits And Other Benefits Summary Of Changes In Accumulated Other Comprehensive Income For Defined Benefit Plans [Abstract] | ||
Beginning balance | $32.30 | $98.80 |
Recognized prior service cost | 4.6 | 4.5 |
Recognized net actuarial gain | -3.5 | -9.3 |
Prior service credit arising in current year | -3.1 | -2.7 |
Net actuarial loss (gain) arising in current year | 76.5 | -59 |
Ending balance | $106.80 | $32.30 |
PENSION_PLANS_POSTRETIREMENT_B5
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Accumulated Other Comprehensive Income for Benefit Plans (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
In Millions, unless otherwise specified | |||
Disclosure Pension Plans Postretirement Benefits And Other Benefits Accumulated Other Comprehensive Income For Benefit Plans [Abstract] | |||
Prior service credit | ($34.20) | ($38.80) | |
Net actuarial loss | 140.9 | 71 | |
Transitional obligation | 0.1 | 0.1 | |
Ending balance in Accumulated Other Comprehensive Income | $106.80 | $32.30 | $98.80 |
PENSION_PLANS_POSTRETIREMENT_B6
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be recognized over next fiscal Year (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 02, 2015 |
Disclosure Pension Plans Postretirement Benefits And Other Benefits Schedule Of Amounts In Accumulated Other Comprehensive Income Loss To Be Recognized Over Next Fiscal Year [Abstract] | |
Amortization of prior service credit | ($4.60) |
Amortization of actuarial loss | 9.4 |
Total amortization expected | $4.80 |
PENSION_PLANS_POSTRETIREMENT_B7
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Reconciliation of Funded Status of Pension Plans (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Change in projected benefit obligation: | |||
Beginning balance | $467.80 | $481.10 | |
Service cost | 9.6 | 13.7 | |
Interest cost | 21.4 | 19 | 21.9 |
Actuarial loss (gain) | 97.4 | -32.4 | |
Plan amendment | -0.1 | -0.2 | |
Benefits paid from plan assets | -20.4 | -12.7 | |
Benefits paid from Company assets | -0.8 | -0.8 | |
Plan participants contributions | 0.3 | 0.2 | |
Foreign currency exchange rate changes | -19.2 | -0.1 | |
Ending balance | 556 | 467.8 | 481.1 |
Change in plan assets at fair value: | |||
Beginning balance | 436.7 | 385.7 | |
Actual return on plan assets | 45 | 48.9 | |
Company contributions to plan assets | 16 | 14.5 | |
Benefits paid from assets | -20.4 | -12.7 | |
Plan participants contributions | 0.3 | 0.2 | |
Foreign currency exchange rate changes | -15.9 | 0.1 | |
Ending balance | 461.7 | 436.7 | 385.7 |
Reconciliation of funded status: | |||
Projected benefit obligation | -556 | -467.8 | -481.1 |
Defined Benefit Plan, Fair Value of Plan Assets | 461.7 | 436.7 | 385.7 |
Funded status | -94.3 | -31.1 | |
Accrued Benefit cost related to two non-qualified plan | 16.8 | 14.8 | |
Noncurrent asset | 5 | 5.9 | |
Current liability | -0.8 | -0.8 | |
Noncurrent liability | -98.5 | -36.2 | |
Funded status | -94.3 | -31.1 | |
Projected Benefit Obligation [Member] | |||
Weighted-average assumptions used for measurement of the projected benefit obligation: | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.79% | 4.64% | |
Salary growth rate | 3.79% | 4.04% | |
Pension Plans, Domestic [Member] | |||
Change in projected benefit obligation: | |||
Beginning balance | 224.9 | 248.9 | |
Service cost | 3.7 | 7 | |
Interest cost | 10.8 | 9.6 | 12.4 |
Actuarial loss (gain) | 45.3 | -33.2 | |
Plan amendment | 0 | -0.2 | |
Benefits paid from plan assets | -6.5 | -6.4 | |
Benefits paid from Company assets | -0.8 | -0.8 | |
Plan participants contributions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Ending balance | 277.4 | 224.9 | 248.9 |
Change in plan assets at fair value: | |||
Beginning balance | 213.8 | 183.7 | |
Actual return on plan assets | 13.9 | 31.9 | |
Company contributions to plan assets | 8.3 | 4.6 | |
Benefits paid from assets | -6.5 | -6.4 | |
Plan participants contributions | 0 | 0 | |
Foreign currency exchange rate changes | 0 | 0 | |
Ending balance | 229.5 | 213.8 | 183.7 |
Reconciliation of funded status: | |||
Projected benefit obligation | -277.4 | -224.9 | -248.9 |
Defined Benefit Plan, Fair Value of Plan Assets | 229.5 | 213.8 | 183.7 |
Funded status | -47.9 | -11.1 | |
Noncurrent asset | 0 | 3.7 | |
Current liability | -0.8 | -0.8 | |
Noncurrent liability | -47.1 | -14 | |
Funded status | -47.9 | -11.1 | |
Pension Plans, Domestic [Member] | Projected Benefit Obligation [Member] | |||
Weighted-average assumptions used for measurement of the projected benefit obligation: | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.14% | 4.81% | |
Salary growth rate | 4.60% | 4.63% | |
Pension Plans, Foreign [Member] | |||
Change in projected benefit obligation: | |||
Beginning balance | 242.9 | 232.2 | |
Service cost | 5.9 | 6.7 | |
Interest cost | 10.6 | 9.4 | 9.5 |
Actuarial loss (gain) | 52.1 | 0.8 | |
Plan amendment | -0.1 | 0 | |
Benefits paid from plan assets | -13.9 | -6.3 | |
Benefits paid from Company assets | 0 | 0 | |
Plan participants contributions | 0.3 | 0.2 | |
Foreign currency exchange rate changes | -19.2 | -0.1 | |
Ending balance | 278.6 | 242.9 | 232.2 |
Change in plan assets at fair value: | |||
Beginning balance | 222.9 | 202 | |
Actual return on plan assets | 31.1 | 17 | |
Company contributions to plan assets | 7.7 | 9.9 | |
Benefits paid from assets | -13.9 | -6.3 | |
Plan participants contributions | 0.3 | 0.2 | |
Foreign currency exchange rate changes | -15.9 | 0.1 | |
Ending balance | 232.2 | 222.9 | 202 |
Reconciliation of funded status: | |||
Projected benefit obligation | -278.6 | -242.9 | -232.2 |
Defined Benefit Plan, Fair Value of Plan Assets | 232.2 | 222.9 | 202 |
Funded status | -46.4 | -20 | |
Noncurrent asset | 5 | 2.2 | |
Current liability | 0 | 0 | |
Noncurrent liability | -51.4 | -22.2 | |
Funded status | ($46.40) | ($20) | |
Pension Plans, Foreign [Member] | Projected Benefit Obligation [Member] | |||
Weighted-average assumptions used for measurement of the projected benefit obligation: | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 3.44% | 4.49% | |
Salary growth rate | 3.12% | 3.27% |
PENSION_PLANS_POSTRETIREMENT_B8
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Components of Net Periodic Cost (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Components of net periodic cost: | |||
Service cost | $10.70 | $15.20 | $15.70 |
Interest cost | 21.4 | 19 | 21.9 |
Expected return on plan assets | -26.4 | -22.3 | -21.2 |
Net amortization | -1.1 | 4.8 | 9.3 |
Settlement loss | 0 | 0 | 15.3 |
Net periodic cost (benefit) | 4.6 | 16.7 | 41 |
Pension Plans, Domestic [Member] | |||
Components of net periodic cost: | |||
Service cost | 4.8 | 8.5 | 10.1 |
Interest cost | 10.8 | 9.6 | 12.4 |
Expected return on plan assets | -13.9 | -11.8 | -11.3 |
Net amortization | -2.2 | 3.1 | 8.3 |
Settlement loss | 0 | 0 | 15.3 |
Net periodic cost (benefit) | -0.5 | 9.4 | 34.8 |
Pension Plans, Foreign [Member] | |||
Components of net periodic cost: | |||
Service cost | 5.9 | 6.7 | 5.6 |
Interest cost | 10.6 | 9.4 | 9.5 |
Expected return on plan assets | -12.5 | -10.5 | -9.9 |
Net amortization | 1.1 | 1.7 | 1 |
Settlement loss | 0 | 0 | 0 |
Net periodic cost (benefit) | $5.10 | $7.30 | $6.20 |
PENSION_PLANS_POSTRETIREMENT_B9
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Weighted-average Assumption Used To Measure Net Periodic Cost (Detail) | 12 Months Ended | ||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Expected return on plan assets | 6.08% | ||
Net Periodic Benefit Cost [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.64% | 4.08% | 4.56% |
Expected return on plan assets | 6.08% | 5.86% | 6.10% |
Salary growth rate | 4.04% | 3.62% | 3.57% |
Pension Plans, Domestic [Member] | Net Periodic Benefit Cost [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.81% | 3.93% | 4.37% |
Expected return on plan assets | 6.50% | 6.50% | 7.00% |
Salary growth rate | 4.63% | 3.90% | 3.90% |
Pension Plans, Foreign [Member] | Net Periodic Benefit Cost [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate | 4.49% | 4.23% | 4.84% |
Expected return on plan assets | 5.67% | 5.27% | 5.29% |
Salary growth rate | 3.27% | 3.13% | 3.13% |
Recovered_Sheet1
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | ||
In Millions, unless otherwise specified | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $461.70 | $436.70 | $385.70 | ||
Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 9.3 | 10.7 | |||
Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 176 | 180.1 | |||
Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 68.3 | [1] | 81.6 | [1] | |
Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 82.2 | 102.5 | |||
Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 111.3 | 45.6 | |||
Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 14.5 | 15.6 | |||
Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.1 | 0.6 | |||
Level 1 [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 150 | 133.5 | |||
Level 1 [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 9.3 | 10.7 | |||
Level 1 [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 116.3 | 121.4 | |||
Level 1 [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 22.6 | [1] | 0 | [1] | |
Level 1 [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 0.7 | |||
Level 1 [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.7 | 0.7 | |||
Level 1 [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Level 1 [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.1 | 0 | |||
Level 2 [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 311.7 | 303.2 | |||
Level 2 [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Level 2 [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 59.7 | 58.7 | |||
Level 2 [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 45.7 | [1] | 81.6 | [1] | |
Level 2 [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 81.2 | 101.8 | |||
Level 2 [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 110.6 | 44.9 | |||
Level 2 [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 14.5 | 15.6 | |||
Level 2 [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0.6 | |||
Pension Plans, Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 229.5 | 213.8 | 183.7 | ||
Pension Plans, Domestic [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8.1 | 8.1 | |||
Pension Plans, Domestic [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 116 | 121.2 | |||
Pension Plans, Domestic [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 20.4 | [1] | 37.6 | [1] | |
Pension Plans, Domestic [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1.5 | 32.9 | |||
Pension Plans, Domestic [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 83.5 | 14 | |||
Pension Plans, Domestic [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 144.5 | 129.3 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 8.1 | 8.1 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 116 | 121.2 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 20.4 | [1] | 0 | [1] | |
Pension Plans, Domestic [Member] | Level 1 [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 1 [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 85 | 84.5 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | [1] | 37.6 | [1] | |
Pension Plans, Domestic [Member] | Level 2 [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1.5 | 32.9 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 83.5 | 14 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Domestic [Member] | Level 2 [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Foreign [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 232.2 | 222.9 | 202 | ||
Pension Plans, Foreign [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1.2 | 2.6 | |||
Pension Plans, Foreign [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 60 | 58.9 | |||
Pension Plans, Foreign [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 47.9 | [1] | 44 | [1] | |
Pension Plans, Foreign [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 80.7 | 69.6 | |||
Pension Plans, Foreign [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 27.8 | 31.6 | |||
Pension Plans, Foreign [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 14.5 | 15.6 | |||
Pension Plans, Foreign [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.1 | 0.6 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 5.5 | 4.2 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1.2 | 2.6 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.3 | 0.2 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 2.2 | [1] | 0 | [1] | |
Pension Plans, Foreign [Member] | Level 1 [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 1 | 0.7 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.7 | 0.7 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Foreign [Member] | Level 1 [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0.1 | 0 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 226.7 | 218.7 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | Cash and Cash Equivalents [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | Equity Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 59.7 | 58.7 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | Equity Securities International [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 45.7 | [1] | 44 | [1] | |
Pension Plans, Foreign [Member] | Level 2 [Member] | Fixed Income Securities Domestic [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 79.7 | 68.9 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | Corporate Debt Securities [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 27.1 | 30.9 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | Insurance Funds [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | 14.5 | 15.6 | |||
Pension Plans, Foreign [Member] | Level 2 [Member] | Other Debt Obligations [Member] | |||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||
Defined Benefit Plan, Fair Value of Plan Assets | $0 | $0.60 | |||
[1] | Investment in funds outside the country where the pension plan originates is considered International. |
Recovered_Sheet2
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Estimated Future Benefits Payments (Detail) (USD $) | Jan. 02, 2015 |
In Millions, unless otherwise specified | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2015 | $15.70 |
2016 | 16.5 |
2017 | 18 |
2018 | 18.9 |
2019 | 19.8 |
2020-2024 | 115.4 |
Total | 204.3 |
Pension Plans, Domestic [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2015 | 8.7 |
2016 | 9.5 |
2017 | 10.4 |
2018 | 11.2 |
2019 | 12 |
2020-2024 | 71.6 |
Total | 123.4 |
Pension Plans, Foreign [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2015 | 7 |
2016 | 7 |
2017 | 7.6 |
2018 | 7.7 |
2019 | 7.8 |
2020-2024 | 43.8 |
Total | $80.90 |
STOCKHOLDERS_EQUITY_Additional
STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Jan. 02, 2014 | Nov. 25, 2013 | Apr. 24, 2012 | 31-May-12 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 30, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Preferred stock, shares authorized | 15,000,000 | 15,000,000 | ||||||
Preferred stock, par value | $1 | $1 | ||||||
Common stock, shares authorized | 100,000,000 | 100,000,000 | ||||||
Common stock, par value | $1 | $1 | ||||||
Common stock, shares outstanding | 33,141,950 | 32,853,702 | ||||||
Repurchased and retired shares | 1,000,000 | |||||||
Purchases of common stock for treasury | $59.20 | |||||||
Shares purchased, average cost | $59.16 | |||||||
Dividend declared per common share (in dollars per share) | $5 | $4.50 | $0 | $5 | $4.50 | |||
Dividend declared on common stock | 166.5 | 153.1 | ||||||
Dividend declared recorded as a reduction to retained earnings | 164.2 | 150.6 | 0 | 165.7 | 151.4 | |||
Dividends Payable | 2.3 | 2.5 | ||||||
Special dividend make-whole payments | 1.7 | 1.5 | 0.8 | |||||
Number of shares available for grant | 1,900,000 | |||||||
General Plan Descriptions | The grant-date value of the stock units is amortized and converted to outstanding shares of common stock on a one-for-one basis primarily over a three, four or six-year vesting period from the date of grant based on the specific terms of the grant. | |||||||
Stock-based compensation | 13.8 | 13.6 | 14.6 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | 11.7 | 12.2 | 12.2 | |||||
Share based compensation arrangement by share based payment award options grants in period grant date fair market value | 1.6 | 1.5 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | 1.7 | 2 | 3.1 | |||||
Method of estimation of average expected term of stock option grant | The average expected term was calculated using the simplified method, as defined by U.S. GAAP, for estimating the expected term. Historical volatility was used to calculate the expected stock price volatility. | |||||||
Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average exercise price of outstanding options | $54.70 | $57.04 | ||||||
Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average exercise price of outstanding options | $51.61 | $53.31 | ||||||
Restricted Stock Units (RSUs) [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation arrangement by share based payment award, award vesting period | 4 years | |||||||
Stock-based compensation | 10.6 | 10 | 10.8 | |||||
Share based compensation arrangement by share based payment award units outstanding weighted average remaining contractual term | 2 years 1 month 6 days | |||||||
Share-based Compensation Arrangement By Share-based Payment Award Units Converted Aggregate Intrinsic Value | 21 | 14.6 | 17.2 | |||||
Share-based Compensation Arrangement By Share-based Payment Award Units Outstanding Aggregate Intrinsic Value | 60.7 | 67.7 | 49.5 | |||||
Share based compensation arrangement by share based payment award units convertible aggregate intrinsic value | 25 | 27.1 | 17 | |||||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation arrangement by share based payment award, award vesting period | 6 years | |||||||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share based compensation arrangement by share based payment award, award vesting period | 3 years | |||||||
Director Stock Units [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock-based compensation | 1.9 | 1.9 | 1.8 | |||||
Employee stock option [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Average exercise price of outstanding options | $49 | $47.93 | $50.14 | $49.26 | ||||
Share based compensation arrangement by share based payment award, award vesting period | 4 years | |||||||
Stock-based compensation | 1.3 | 1.7 | 2 | |||||
Share based compensation arrangement by share based payment award options expire period after grant date | 10 years | |||||||
Options, Outstanding, Weighted Average Remaining Contractual Term | 6 years 0 months | |||||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 5 years 2 months | |||||||
Options, Exercises in Period, Total Intrinsic Value | 7.9 | 2.8 | 3.8 | |||||
Options, Outstanding, Intrinsic Value | 20.9 | 29 | 19 | |||||
Options, Exercisable, Intrinsic Value | 17.7 | 22.4 | 8.3 | |||||
Nonvested Employee Stock Units And Options [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total unrecognized compensation cost related to unvested stock units and options granted | $13.90 | $1.40 | ||||||
Total unrecognized compensation cost, weighted average period | 1 year 7 months | 1 year 5 months |
STOCKHOLDERS_EQUITY_Activity_U
STOCKHOLDERS' EQUITY - Activity Under the Director and Employee Stock Unit Plans (Detail) (USD $) | 12 Months Ended | |||||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | ||||
Director Stock Units [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||||
Beginning Balance | 302,500 | [1] | 271,900 | [1] | 250,200 | [1] |
Granted | 20,300 | [1] | 30,600 | [1] | 30,700 | [1] |
Converted | -39,500 | [1] | 0 | [1] | -9,000 | [1] |
Cancelled | 0 | [1] | 0 | [1] | 0 | [1] |
Ending Balance | 283,300 | [1] | 302,500 | [1] | 271,900 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Beginning Balance, Weighted Average Grant Date Value | $47.81 | [2] | $44.62 | [2] | $42.74 | [2] |
Granted, Weighted Average Grant Date Value | $93.26 | [2] | $76.13 | [2] | $59.60 | [2] |
Converted, Weighted Average Grant Date Value | $45.82 | [2] | $0 | [2] | $43.47 | [2] |
Cancelled, Weighted Average Grant Date Value | $0 | [2] | $0 | [2] | $0 | [2] |
Ending Balance, Weighted Average Grant Date Value | $51.42 | [2] | $47.81 | [2] | $44.62 | [2] |
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||||
Beginning Balance | 453,300 | [3] | 518,200 | [3] | 617,100 | [3] |
Granted | 126,800 | [3] | 167,500 | [3] | 163,900 | [3] |
Converted | -163,100 | [3] | -213,600 | [3] | -238,700 | [3] |
Cancelled | -11,900 | [3] | -18,800 | [3] | -24,100 | [3] |
Ending Balance | 405,100 | [3] | 453,300 | [3] | 518,200 | [3] |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||||||
Beginning Balance, Weighted Average Grant Date Value | $65.64 | [2] | $56.68 | [2] | $48.16 | [2] |
Granted, Weighted Average Grant Date Value | $106.90 | [2] | $68.64 | [2] | $69.12 | [2] |
Converted, Weighted Average Grant Date Value | $59.92 | [2] | $46.19 | [2] | $43.51 | [2] |
Cancelled, Weighted Average Grant Date Value | $72.53 | [2] | $66.63 | [2] | $57.24 | [2] |
Ending Balance, Weighted Average Grant Date Value | $80.65 | [2] | $65.64 | [2] | $56.68 | [2] |
[1] | All director units are considered convertible although each individual has elected to defer conversion until a pre-arranged time. This is because all stock units, including director units, are included in our common stock outstanding on the date of vesting as the conditions for conversion have been met. | |||||
[2] | Director and employee stock units are granted at no cost to the participants. | |||||
[3] | All employee stock units outstanding are not vested at year end and are expected to vest. |
STOCKHOLDERS_EQUITY_Weightedav
STOCKHOLDERS' EQUITY - Weighted-average fair value of stock options granted valuation assumption (Detail) (USD $) | 12 Months Ended | |
Jan. 03, 2014 | Dec. 28, 2012 | |
Expected Stock Price Volatility In | 42.00% | 40.20% |
Risk-Free Interest Rate | 1.10% | 1.20% |
Expected Dividend Yield | 0.00% | 0.00% |
Average Expected Term | 6 years 1 month 17 days | 6 years 1 month 17 days |
Resulting Black Scholes Value | $28.57 | $28.04 |
STOCKHOLDERS_EQUITY_Activity_U1
STOCKHOLDERS' EQUITY - Activity Under the Employee Option Plans (Detail) (Employee stock option [Member], USD $) | 12 Months Ended | ||||
Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |||
Employee stock option [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Beginning Balance | 695,400 | 749,000 | 756,300 | ||
Adjusted | 39,400 | [1] | 50,900 | [1] | |
Granted | 56,000 | 55,300 | |||
Exercised | -162,400 | -149,000 | -113,500 | ||
Ending Balance | 533,000 | 695,400 | 749,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Beginning Balance, Weighted-Average Exercise Price | $47.93 | $50.14 | $49.26 | ||
Adjusted, Weighted-Average Exercise Price | $47.91 | [1] | $49.77 | [1] | |
Granted, Weighted-Average Exercise Price | $68.64 | $69.40 | |||
Exercised, Weighted-Average Exercise Price | $44.40 | $54.17 | $31.10 | ||
Ending Balance, Weighted-Average Exercise Price | $49 | $47.93 | $50.14 | ||
Options exercisable at year-end | 405,600 | 486,100 | [1] | 494,300 | [1] |
Options exercisable at year-end Weighted-Average Exercise Price: | $44.65 | $43.62 | [1] | $45.90 | [1] |
[1] | In accordance with the anti-dilution provisions of our stock incentive plans, the exercise price and number of options outstanding and exercisable were adjusted to reflect the special dividend in 2013 and 2012. These changes resulted in no additional compensation expense. |
STOCKHOLDERS_EQUITY_Changes_to
STOCKHOLDERS' EQUITY - Changes to Unvested Employee Stock Units And Options (Detail) (Unvested Employee Stock Options [Member], USD $) | 12 Months Ended | |
Jan. 02, 2015 | ||
Unvested Employee Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Non-vested Shares Beginning Balance | 209,300 | [1] |
Vested | -81,900 | [1] |
Non-vested Shares Ending Balance | 127,400 | [1] |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Non-vested Beginning Balance, Weighted-Average Grant Date Fair Value | $23.69 | |
Vested, Weighted-Average Grant Date Fair Value | $20.35 | |
Non-vested Ending Balance, Weighted-Average Grant Date Fair Value | $25.84 | |
[1] | All unvested stock options are expected to vest. |
BUSINESS_SEGMENTS_Additional_I
BUSINESS SEGMENTS - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Segment Reporting Information [Line Items] | |||
Maximum sales percentage by customer | 3.00% | ||
Net Property, plant and equipment | $121 | $104 | |
UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Domestic sales | 3,683.20 | 3,529.70 | 3,582.40 |
Net Property, plant and equipment | 91.5 | ||
CANADA | |||
Segment Reporting Information [Line Items] | |||
Domestic sales | $770.30 | $762.40 | $816.70 |
BUSINESS_SEGMENTS_Segment_Info
BUSINESS SEGMENTS - Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||||||||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Sep. 28, 2012 | Dec. 28, 2012 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | $1,669.10 | [1] | $1,666.60 | [2] | $1,586 | [3] | $1,523.80 | [4] | $1,598.50 | $1,557.60 | [5] | $1,579.50 | $1,490.90 | $6,445.50 | $6,226.50 | $6,253.10 | |||||||
Operating income | 88.8 | [1] | 94 | [2] | 92.4 | [3] | 85.7 | [4] | 95.6 | 92.4 | [5] | 85.8 | 81 | 360.9 | 354.8 | 282.5 | |||||||
Depreciation | 24 | 22.1 | 22.5 | ||||||||||||||||||||
Amortization of intangibles | 11.7 | 8 | 10 | ||||||||||||||||||||
Total assets | 3,586.50 | 2,855.90 | 3,586.50 | 2,855.90 | 3,084 | 3,084 | |||||||||||||||||
Capital expenditures | 40.3 | 32.2 | 34.2 | ||||||||||||||||||||
Europe [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Goodwill, Impairment Loss | 10.8 | ||||||||||||||||||||||
Enterprise Cabling And Security [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | 3,411.40 | [6] | 3,174.50 | 3,236.30 | |||||||||||||||||||
Operating income | 176.4 | [6] | 160.5 | 156.7 | |||||||||||||||||||
Depreciation | 12.5 | [6] | 11.5 | 10.8 | |||||||||||||||||||
Amortization of intangibles | 4.9 | [6] | 0.8 | 0.9 | |||||||||||||||||||
Total assets | 1,867.20 | [6] | 1,220 | 1,867.20 | [6] | 1,220 | 1,272.40 | 1,272.40 | |||||||||||||||
Capital expenditures | 2.6 | [6] | 2.1 | 4.1 | |||||||||||||||||||
W & C [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | 2,095.60 | 2,116.60 | 2,111.20 | ||||||||||||||||||||
Operating income | 145.4 | 161.8 | 166.5 | ||||||||||||||||||||
Depreciation | 7.5 | 7.1 | 6.5 | ||||||||||||||||||||
Amortization of intangibles | 5.7 | 5.9 | 3.9 | ||||||||||||||||||||
Total assets | 972.5 | 938.3 | 972.5 | 938.3 | 997.9 | 997.9 | |||||||||||||||||
Capital expenditures | 1.3 | 1 | 1.1 | ||||||||||||||||||||
OEM Supply [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Goodwill, Impairment Loss | 15.3 | ||||||||||||||||||||||
Net sales | 938.5 | 935.4 | 905.6 | ||||||||||||||||||||
Operating income | 39.1 | 32.5 | -29.9 | ||||||||||||||||||||
Depreciation | 4 | 3.5 | 5.2 | ||||||||||||||||||||
Amortization of intangibles | 1.1 | 1.3 | 5.2 | ||||||||||||||||||||
Total assets | 406.9 | 413.9 | 406.9 | 413.9 | 461.6 | 461.6 | |||||||||||||||||
Capital expenditures | 6.1 | 4.9 | 5.3 | ||||||||||||||||||||
Corporate [Member] | |||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||
Net sales | 0 | 0 | 0 | ||||||||||||||||||||
Operating income | 0 | 0 | -10.8 | [7] | |||||||||||||||||||
Depreciation | 0 | 0 | 0 | ||||||||||||||||||||
Amortization of intangibles | 0 | 0 | 0 | ||||||||||||||||||||
Total assets | 339.9 | [8] | 283.7 | [8] | 339.9 | [8] | 283.7 | [8] | 352.1 | [8] | 352.1 | [8] | |||||||||||
Capital expenditures | $30.30 | $24.20 | $23.70 | ||||||||||||||||||||
[1] | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | ||||||||||||||||||||||
[2] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | ||||||||||||||||||||||
[3] | In 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 allowances in Europe | ||||||||||||||||||||||
[4] | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | ||||||||||||||||||||||
[5] | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). | ||||||||||||||||||||||
[6] | At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the ECS business segments. For further information, see Note 2. "Business Combination" . | ||||||||||||||||||||||
[7] | In connection with our annual assessment of goodwill recoverability in the third quarter of 2012, we recorded a non-cash impairment charge to write-off the goodwill of $10.8 million associated with our former European reporting unit. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". | ||||||||||||||||||||||
[8] | Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. |
BUSINESS_SEGMENTS_Schedule_of_
BUSINESS SEGMENTS - Schedule of Segment Reporting Operating Income (Detail) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Segment Operating Income [Line Items] | ||||
Acquisition and integration costs | ($8.30) | |||
Impairment of goodwill and long-lived assets | -48.5 | |||
Pension-related charge | 0 | 0 | -15.3 | |
Restructuring Charges | -10.1 | -10.1 | ||
Inventory Write-down | -1.2 | |||
Other Operating Income | -8.3 | -75.1 | ||
ECS [Member] | ||||
Segment Operating Income [Line Items] | ||||
Acquisition and integration costs | -7 | |||
Impairment of goodwill and long-lived assets | -0.3 | |||
Pension-related charge | -8.2 | |||
Restructuring Charges | -4.1 | |||
Inventory Write-down | 0 | |||
Other Operating Income | -7 | -12.6 | ||
W & C [Member] | ||||
Segment Operating Income [Line Items] | ||||
Acquisition and integration costs | -0.2 | |||
Impairment of goodwill and long-lived assets | -0.1 | |||
Pension-related charge | -5.7 | |||
Restructuring Charges | -2.8 | |||
Inventory Write-down | 0 | |||
Other Operating Income | -0.2 | -8.6 | ||
OEM Supply [Member] | ||||
Segment Operating Income [Line Items] | ||||
Acquisition and integration costs | -1.1 | |||
Impairment of goodwill and long-lived assets | -37.3 | |||
Pension-related charge | -1.4 | |||
Restructuring Charges | -3.2 | |||
Inventory Write-down | -1.2 | |||
Other Operating Income | -1.1 | -43.1 | ||
Corporate [Member] | ||||
Segment Operating Income [Line Items] | ||||
Acquisition and integration costs | 0 | |||
Impairment of goodwill and long-lived assets | -10.8 | [1] | ||
Pension-related charge | 0 | |||
Restructuring Charges | 0 | |||
Inventory Write-down | 0 | |||
Other Operating Income | $0 | ($10.80) | ||
[1] | In connection with our annual assessment of goodwill recoverability in the third quarter, we recorded a non-cash impairment charge to write-off the goodwill of $10.8 million associated with our former European reporting unit. For further information, see Note 5. "Impairment of Goodwill and Long-lived Assets". |
BUSINESS_SEGMENTS_Summary_of_N
BUSINESS SEGMENTS - Summary of Net Sales and Property, Plant and Equipment and Total Assets by Geographic areas (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||
Net sales | $1,669.10 | [1] | $1,666.60 | [2] | $1,586 | [3] | $1,523.80 | [4] | $1,598.50 | $1,557.60 | [5] | $1,579.50 | $1,490.90 | $6,445.50 | $6,226.50 | $6,253.10 |
% of Total Net Sales | 100.00% | 100.00% | 100.00% | |||||||||||||
Total assets | 3,586.50 | 2,855.90 | 3,586.50 | 2,855.90 | 3,084 | |||||||||||
Net property and equipment | 121 | 104 | 121 | 104 | ||||||||||||
North America [Member] | ||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||
Net sales | 4,453.50 | 4,292.10 | 4,399.10 | |||||||||||||
% of Total Net Sales | 69.10% | 69.00% | 70.40% | |||||||||||||
Total assets | 2,566 | 1,865.50 | 2,566 | 1,865.50 | ||||||||||||
Net property and equipment | 97 | 79.6 | 97 | 79.6 | ||||||||||||
Europe [Member] | ||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||
Net sales | 1,101.30 | 1,097.30 | 1,071.90 | |||||||||||||
% of Total Net Sales | 17.10% | 17.60% | 17.10% | |||||||||||||
Total assets | 439.3 | 443.5 | 439.3 | 443.5 | ||||||||||||
Net property and equipment | 17.2 | 17.1 | 17.2 | 17.1 | ||||||||||||
Emerging Markets [Member] | ||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||
Net sales | 890.7 | 837.1 | 782.1 | |||||||||||||
% of Total Net Sales | 13.80% | 13.40% | 12.50% | |||||||||||||
Total assets | 581.2 | 546.9 | 581.2 | 546.9 | ||||||||||||
Net property and equipment | $6.80 | $7.30 | $6.80 | $7.30 | ||||||||||||
[1] | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | |||||||||||||||
[2] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | |||||||||||||||
[3] | In 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 allowances in Europe | |||||||||||||||
[4] | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | |||||||||||||||
[5] | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). |
BUSINESS_SEGMENTS_Changes_in_G
BUSINESS SEGMENTS - Changes in Goodwill (Detail) (USD $) | 12 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | ||
Goodwill [Roll Forward] | |||||
Goodwill, Beginning Balance | $342.10 | $342 | |||
Acquisition related | 244.8 | [1],[2] | 2.6 | [3] | |
Foreign currency translation | -4.6 | -2.5 | |||
Goodwill, Ending Balance | 582.3 | 342.1 | 342 | ||
Acquisition of businesses, net of cash acquired | 418.4 | 0 | 55.3 | ||
Cash | 11.6 | ||||
Favorable net asset adjustment | 2.3 | ||||
Enterprise Cabling And Security [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Beginning Balance | 162.5 | 164.1 | |||
Acquisition related | 0 | [3] | |||
Goodwill, Acquired During Period | 243.4 | [2] | |||
Foreign currency translation | -2.5 | -1.6 | |||
Goodwill, Ending Balance | 403.4 | 162.5 | |||
Acquisition of businesses, net of cash acquired | 418.4 | ||||
Electrical Wire And Cable [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Beginning Balance | 179.6 | 177.9 | |||
Acquisition related | 1.4 | [1] | 2.6 | [3] | |
Foreign currency translation | -2.1 | -0.9 | |||
Goodwill, Ending Balance | 178.9 | 179.6 | |||
OEM Supply [Member] | |||||
Goodwill [Roll Forward] | |||||
Goodwill, Beginning Balance | 0 | 0 | |||
Acquisition related | 0 | 0 | [3] | ||
Foreign currency translation | 0 | 0 | |||
Goodwill, Ending Balance | $0 | $0 | |||
[1] | In the first quarter of 2014, we recorded an immaterial reclassification adjustment between deferred tax liabilities and goodwill related to the purchase price allocation related to the acquisition of Jorvex. | ||||
[2] | At the end of the third quarter of 2014, we acquired all of the outstanding capital stock of Tri-Ed from Tri-NVS Holdings, LLC, an independent distributor of security and low-voltage technology products. We paid $418.4 million, net of cash acquired of $11.6 million and a favorable net asset adjustment of $2.3 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. | ||||
[3] | In the second quarter of 2013, we recorded an immaterial reclassification adjustment between intangible assets and goodwill related to the purchase price allocation related to the acquisition of Jorvex. |
SUMMARIZED_FINANCIAL_INFORMATI2
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - Additional Information (Detail) | 12 Months Ended |
Jan. 02, 2015 | |
Disclosure Summarized Financial Information Of Anixter Inc Additional Information [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 100% owned primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than 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 (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 30, 2011 |
In Millions, unless otherwise specified | ||||
Assets: | ||||
Current assets | $2,589.80 | $2,275.70 | ||
Property, equipment and capital leases, net | 121 | 104 | ||
Goodwill | 582.3 | 342.1 | 342 | |
Other assets | 293.4 | 134.1 | ||
Total assets | 3,586.50 | 2,855.90 | 3,084 | |
Liabilities and Stockholder's Equity: | ||||
Current liabilities | 1,030.50 | 902.4 | ||
Other liabilities | 215.3 | 95 | ||
Stockholder's equity | 1,133 | 1,027.40 | 969.9 | 1,001.20 |
Total liabilities and stockholders’ equity | 3,586.50 | 2,855.90 | ||
Anixter Inc. [Member] | ||||
Assets: | ||||
Current assets | 2,589.40 | 2,275.10 | ||
Property, equipment and capital leases, net | 131.5 | 115.6 | ||
Goodwill | 582.3 | 342.1 | ||
Other assets | 293.4 | 134.2 | ||
Total assets | 3,596.60 | 2,867 | ||
Liabilities and Stockholder's Equity: | ||||
Current liabilities | 1,030.10 | 898.9 | ||
Subordinated notes payable to parent | 1.5 | 1 | ||
Long-term debt | 1,221.80 | 846.4 | ||
Other liabilities | 212.4 | 93 | ||
Stockholder's equity | 1,130.80 | 1,027.70 | ||
Total liabilities and stockholders’ equity | $3,596.60 | $2,867 |
SUMMARIZED_FINANCIAL_INFORMATI4
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Net sales | $1,669.10 | [1] | $1,666.60 | [2] | $1,586 | [3] | $1,523.80 | [4] | $1,598.50 | $1,557.60 | [5] | $1,579.50 | $1,490.90 | $6,445.50 | $6,226.50 | $6,253.10 |
Operating income | 88.8 | [1] | 94 | [2] | 92.4 | [3] | 85.7 | [4] | 95.6 | 92.4 | [5] | 85.8 | 81 | 360.9 | 354.8 | 282.5 |
Income before income taxes | 70.5 | [1] | 80.4 | [2] | 79.7 | [3] | 64.2 | [4] | 80.5 | 79.5 | [5] | 70.8 | 65.4 | 294.8 | 296.2 | 209.6 |
Net income | 41.1 | [1] | 52.5 | [2] | 53.8 | [3] | 47.4 | [4] | 58.1 | 53.8 | [5] | 46.1 | 42.5 | 194.8 | 200.5 | 124.8 |
Comprehensive income | 83.4 | 225.7 | 158.5 | |||||||||||||
Anixter Inc. [Member] | ||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||
Net sales | 6,445.50 | 6,226.50 | 6,253.10 | |||||||||||||
Operating income | 366.8 | 360.7 | 288.2 | |||||||||||||
Income before income taxes | 299.5 | 303.5 | 235.2 | |||||||||||||
Net income | 197.7 | 204.9 | 140.6 | |||||||||||||
Comprehensive income | $86.30 | $230.10 | $174.30 | |||||||||||||
[1] | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | |||||||||||||||
[2] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | |||||||||||||||
[3] | In 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 allowances in Europe | |||||||||||||||
[4] | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | |||||||||||||||
[5] | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA - Additional Information (Detail) (USD $) | 0 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 02, 2014 | Nov. 25, 2013 | Apr. 24, 2012 | 31-May-12 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Sep. 27, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Apr. 03, 2015 | Jan. 02, 2015 | Feb. 10, 2015 |
shareholder | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Foreign Exchange Gain Loss Due To Devaluation | $8 | $8 | $1.10 | $0 | ||||||||||
Foreign Exchange Gain Loss Due To Devaluation, net of tax | 5.3 | |||||||||||||
Income Loss From Continuing Operations Tax Benefit Related To Reversal Of Valuation Allowance | 2 | 4.9 | ||||||||||||
Acquisition and integration costs | -8.3 | |||||||||||||
Income Loss From Continuing Operations Net Benefit Related To Closing Prior Tax Years | 1.9 | 4.7 | ||||||||||||
Income Loss From Continuing Operations Tax Cost Related To Acquisition Transaction Costs Capitalized For Tax Purposes | 1.1 | |||||||||||||
Integration costs | 1.6 | 1.6 | ||||||||||||
Interest Income Related To Finalizing Prior Year Tax Returns | 0.7 | 0.7 | ||||||||||||
Interest Income Related To Finalizing Prior Year Tax Returns, Net Of Tax | 0.5 | |||||||||||||
Dividend declared per common share (in dollars per share) | $5 | $4.50 | $0 | $5 | $4.50 | |||||||||
Dividend declared on common stock | 166.5 | 153.1 | ||||||||||||
Payment of special cash dividend | 164.2 | 150.6 | 0 | 165.7 | 151.4 | |||||||||
Subsequent Event [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Foreign Exchange Gain Loss Due To Devaluation | 0.6 | |||||||||||||
Number of stockholders | 1,896 | |||||||||||||
Within operating expenses [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Acquisition and integration costs | 5.7 | 6.7 | 1 | |||||||||||
Within other expenses [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Acquisition and integration costs | $0.30 | $0.30 |
SELECTED_QUARTERLY_FINANCIAL_D3
SELECTED QUARTERLY FINANCIAL DATA - Summary of Quarterly Financial Data (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | ||||||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||||||
Net sales | $1,669.10 | [1] | $1,666.60 | [2] | $1,586 | [3] | $1,523.80 | [4] | $1,598.50 | $1,557.60 | [5] | $1,579.50 | $1,490.90 | $6,445.50 | $6,226.50 | $6,253.10 | |
Cost of goods sold | 1,295.80 | [1] | 1,288 | [2] | 1,223.10 | [3] | 1,170.20 | [4] | 1,227.10 | 1,200.60 | [5] | 1,223.40 | 1,152.70 | 4,977.10 | 4,803.80 | 4,844.40 | |
Operating income | 88.8 | [1] | 94 | [2] | 92.4 | [3] | 85.7 | [4] | 95.6 | 92.4 | [5] | 85.8 | 81 | 360.9 | 354.8 | 282.5 | |
Income before income taxes | 70.5 | [1] | 80.4 | [2] | 79.7 | [3] | 64.2 | [4] | 80.5 | 79.5 | [5] | 70.8 | 65.4 | 294.8 | 296.2 | 209.6 | |
Net income | $41.10 | [1] | $52.50 | [2] | $53.80 | [3] | $47.40 | [4] | $58.10 | $53.80 | [5] | $46.10 | $42.50 | $194.80 | $200.50 | $124.80 | |
Basic: | |||||||||||||||||
Net income (in dollars per share) | $1.24 | [1] | $1.59 | [2] | $1.63 | [3] | $1.44 | [4] | $1.77 | $1.64 | [5] | $1.41 | $1.30 | $5.90 | $6.12 | $3.77 | |
Diluted: | |||||||||||||||||
Net income (in dollars per share) | $1.23 | [1] | $1.57 | [2] | $1.61 | [3] | $1.43 | [4] | $1.75 | $1.62 | [5] | $1.40 | $1.27 | $5.84 | $6.04 | $3.69 | |
Stock price range: | |||||||||||||||||
Stock Price High | $89.95 | [1] | $103.47 | [2] | $105.33 | [3] | $115.84 | [4] | $92.46 | $89.61 | [5] | $78.22 | $71.43 | ||||
Stock Price Low | $75.81 | [1] | $82.40 | [2] | $92.79 | [3] | $84.55 | [4] | $80.26 | $75.15 | [5] | $64.94 | $62 | ||||
Share Price | $88.18 | [1] | $85.41 | [2] | $102.89 | [3] | $99.06 | [4] | $89.61 | $82.38 | [5] | $71.71 | $66.13 | $88.18 | [1] | $89.61 | |
[1] | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | ||||||||||||||||
[2] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | ||||||||||||||||
[3] | In 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 allowances in Europe | ||||||||||||||||
[4] | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | ||||||||||||||||
[5] | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). |
SUBSEQUENT_EVENTS_Additional_I
SUBSEQUENT EVENTS - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Apr. 04, 2014 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Apr. 03, 2015 |
Subsequent Event [Line Items] | |||||
Foreign Exchange Gain Loss Due To Devaluation | $8 | $8 | $1.10 | $0 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Proceeds from Divestiture of Businesses | 380 | ||||
Tax impact of foreign earnings repatriated | 40 | ||||
Foreign Exchange Gain Loss Due To Devaluation | 0.6 | ||||
Subsequent Event [Member] | Domestic Tax Authority [Member] | |||||
Subsequent Event [Line Items] | |||||
Tax impact of foreign earnings repatriated | 29.4 | ||||
Subsequent Event [Member] | Foreign Tax Authority [Member] | |||||
Subsequent Event [Line Items] | |||||
Tax impact of foreign earnings repatriated | $10.60 | ||||
Subsequent Event [Member] | Venezuela bolivar [Member] | |||||
Subsequent Event [Line Items] | |||||
Foreign Currency Exchange Rate, Translation | 170 |
Schedule_1STATEMENTS_OF_INCOME
Schedule 1-STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Millions, unless otherwise specified | Jan. 02, 2015 | Oct. 03, 2014 | Jul. 04, 2014 | Apr. 04, 2014 | Jan. 03, 2014 | Sep. 27, 2013 | Jun. 28, 2013 | Mar. 29, 2013 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |||||
Schedule of Condensed Consolidating Statement of Income and Comprehensive Income [Line Items] | ||||||||||||||||
Operating loss | $88.80 | [1] | $94 | [2] | $92.40 | [3] | $85.70 | [4] | $95.60 | $92.40 | [5] | $85.80 | $81 | $360.90 | $354.80 | $282.50 |
Income tax expense (benefit) | -100 | -95.7 | -84.8 | |||||||||||||
Net income | 41.1 | [1] | 52.5 | [2] | 53.8 | [3] | 47.4 | [4] | 58.1 | 53.8 | [5] | 46.1 | 42.5 | 194.8 | 200.5 | 124.8 |
Comprehensive income | 83.4 | 225.7 | 158.5 | |||||||||||||
Parent Company [Member] | ||||||||||||||||
Schedule of Condensed Consolidating Statement of Income and Comprehensive Income [Line Items] | ||||||||||||||||
Operating loss | -4.4 | -4.3 | -4.3 | |||||||||||||
Interest Income (Expense), Net | 4.8 | 2.1 | -16.8 | |||||||||||||
Income (loss) before income taxes and equity in earnings of subsidiaries | 0.4 | -2.2 | -21.1 | |||||||||||||
Income tax expense (benefit) | -0.1 | 0.8 | 8 | |||||||||||||
Income (loss) before equity in earnings of subsidiaries | 0.3 | -1.4 | -13.1 | |||||||||||||
Equity in earnings of subsidiaries | 194.5 | 201.9 | 137.9 | |||||||||||||
Net income | 194.8 | 200.5 | 124.8 | |||||||||||||
Comprehensive income | $83.40 | $225.70 | $158.50 | |||||||||||||
[1] | In the fourth quarter of 2014, "Operating income" includes $1.6 million related to integration costs. In the fourth quarter of 2014, "Operating income" also includes $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 2. "Business Combination". | |||||||||||||||
[2] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 2. "Business Combination". In the third quarter of 2014, we recorded a net tax benefit of $1.9 million primarily related to closing prior tax years partially offset by a tax cost of $1.1 million related to certain acquisition transaction costs that were capitalized for tax purposes. | |||||||||||||||
[3] | In 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 allowances in Europe | |||||||||||||||
[4] | In the first quarter of 2014, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar and Argentina peso of $8.0 million, ($5.3 million, net of tax). In the first quarter of 2014, we recorded a net tax benefit of $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | |||||||||||||||
[5] | In the third quarter of 2013, we recorded net benefits of $4.7 million primarily related to closing prior tax years. This net benefit includes related interest income of $0.7 million which is included in "Other, net" ($0.5 million, net of tax). |
Schedule_1BALANCE_SHEETS_Detai
Schedule 1-BALANCE SHEETS (Detail) (USD $) | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | Dec. 30, 2011 |
In Millions, unless otherwise specified | ||||
Current assets: | ||||
Cash and cash equivalents | $92 | $57.30 | $89.40 | $106.10 |
Other assets | 62.1 | 43 | ||
Total current assets | 2,589.80 | 2,275.70 | ||
Total assets | 3,586.50 | 2,855.90 | 3,084 | |
Liabilities: | ||||
Other non-current liabilities | 215.3 | 95 | ||
Total liabilities | 2,453.50 | 1,828.50 | ||
Stockholders’ equity: | ||||
Common stock | 33.1 | 32.9 | ||
Capital surplus | 238.2 | 216.3 | ||
Retained earnings | 999.7 | 804.8 | ||
Accumulated other comprehensive loss | -138 | -26.6 | ||
Total stockholders’ equity | 1,133 | 1,027.40 | 969.9 | 1,001.20 |
Total liabilities and stockholders’ equity | 3,586.50 | 2,855.90 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0 | 0.1 | 0.4 | 0.4 |
Other assets | 0.5 | 0.5 | ||
Total current assets | 0.5 | 0.6 | ||
Other assets (primarily investment in and advances to subsidiaries) | 1,137 | 1,031.10 | ||
Total assets | 1,137.50 | 1,031.70 | ||
Liabilities: | ||||
Accounts payable and accrued expenses, due currently | 1.5 | 2.2 | ||
Other non-current liabilities | 3 | 2.1 | ||
Total liabilities | 4.5 | 4.3 | ||
Stockholders’ equity: | ||||
Common stock | 33.1 | 32.9 | ||
Capital surplus | 238.2 | 216.3 | ||
Retained earnings | 999.7 | 804.8 | ||
Accumulated other comprehensive loss | -138 | -26.6 | ||
Total stockholders’ equity | 1,133 | 1,027.40 | ||
Total liabilities and stockholders’ equity | $1,137.50 | $1,031.70 |
Schedule_1STATEMENTS_OF_CASH_F
Schedule 1-STATEMENTS OF CASH FLOWS (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Operating activities: | |||
Net income | $194.80 | $200.50 | $124.80 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation | 13.8 | 13.6 | 14.6 |
Income tax expense (benefit) | 100 | 95.7 | 84.8 |
Accretion of debt discount | 2.3 | 3.7 | 18.5 |
Amortization of deferred financing costs | 0 | 1.7 | 2.5 |
Net cash provided by operating activities | 104.2 | 334.5 | 142.9 |
Investing activities | -458.7 | -32.2 | -89.5 |
Financing activities: | |||
Proceeds from stock options exercised | 7.2 | 8.1 | 3.4 |
Retirement of Notes due 2013 | 0 | -300 | 0 |
Payment of special cash dividend | 0 | -165.7 | -151.4 |
Payments for repurchase of warrants | 0 | -19.2 | 0 |
Purchases of common stock for treasury | 0 | 0 | -59.2 |
Other, net | -1.7 | 0 | 2.2 |
Net cash provided by (used in) financing activities | 385.7 | -324.1 | -68.8 |
Cash and Cash Equivalents, Period Increase (Decrease) | 31.2 | -21.8 | -15.4 |
Cash and cash equivalents at beginning of period | 57.3 | 89.4 | 106.1 |
Cash and cash equivalents at end of period | 92 | 57.3 | 89.4 |
Parent Company [Member] | |||
Operating activities: | |||
Net income | 194.8 | 200.5 | 124.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in earnings of subsidiaries | -194.5 | -201.9 | -137.9 |
Dividend from subsidiary | 2.4 | 491.7 | 207.7 |
Stock-based compensation | 1.9 | 1.9 | 1.8 |
Income tax expense (benefit) | 0.1 | -0.8 | -8 |
Intercompany transactions | -9.8 | -11.5 | -10.5 |
Accretion of debt discount | 0 | 2.2 | 17.4 |
Amortization of deferred financing costs | 0 | 0.1 | 0.9 |
Changes in assets and liabilities, net | 0 | 0.3 | 0 |
Net cash provided by operating activities | -5.1 | 482.5 | 196.2 |
Investing activities | 0 | 0 | 0 |
Financing activities: | |||
Proceeds from stock options exercised | 7.2 | 8.1 | 3.4 |
Loans from (to) subsidiaries, net | -0.5 | -6 | 11 |
Retirement of Notes due 2013 | 0 | -300 | 0 |
Payment of special cash dividend | 0 | -165.7 | -151.4 |
Payments for repurchase of warrants | 0 | -19.2 | 0 |
Purchases of common stock for treasury | 0 | 0 | -59.2 |
Other, net | -1.7 | 0 | 0 |
Net cash provided by (used in) financing activities | 5 | -482.8 | -196.2 |
Cash and Cash Equivalents, Period Increase (Decrease) | -0.1 | -0.3 | 0 |
Cash and cash equivalents at beginning of period | 0.1 | 0.4 | 0.4 |
Cash and cash equivalents at end of period | $0 | $0.10 | $0.40 |
Schedule_2VALUATION_AND_QUALIF
Schedule 2-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of the period | $16.80 | $21.40 | $19.50 |
Charged to income | 12 | 10.4 | 7.5 |
Charged to other accounts | 11.7 | -3.1 | 2.1 |
Deductions | -13.8 | -11.9 | -7.7 |
Balance at end of the period | 26.7 | 16.8 | 21.4 |
Allowance for deferred tax asset [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of the period | 21.9 | 22.2 | 20.3 |
Charged to income | -9.2 | 0.3 | 0.5 |
Charged to other accounts | -0.8 | -0.6 | 1.4 |
Deductions | 0 | 0 | 0 |
Balance at end of the period | $11.90 | $21.90 | $22.20 |