Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jan. 01, 2016 | Feb. 10, 2016 | Jul. 03, 2015 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jan. 1, 2016 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AXE | ||
Entity Registrant Name | ANIXTER INTERNATIONAL INC | ||
Entity Central Index Key | 52,795 | ||
Current Fiscal Year End Date | --01-01 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 1,832,219,494 | ||
Entity Common Stock, Shares Outstanding | 32,970,320 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Net sales | $ 6,190.5 | $ 5,507 | $ 5,291.1 |
Cost of goods sold | 4,850 | 4,267.7 | 4,092.2 |
Gross profit | 1,340.5 | 1,239.3 | 1,198.9 |
Operating expenses | 1,072.7 | 929.2 | 886.3 |
Impairment of long-lived assets | 0 | 0 | 1.7 |
Operating income | 267.8 | 310.1 | 310.9 |
Other expense: | |||
Interest expense | 63.8 | 44.5 | 43.9 |
Other, net | (21.1) | (16) | (8.9) |
Income from continuing operations before income taxes | 182.9 | 249.6 | 258.1 |
Income tax expense from continuing operations | 86 | 86.2 | 83.1 |
Net income from continuing operations | 96.9 | 163.4 | 175 |
Net income | $ 127.6 | $ 194.8 | $ 200.5 |
Basic: | |||
Continuing operations | $ 2.92 | $ 4.95 | $ 5.34 |
Discontinued operations | 0.92 | 0.95 | 0.78 |
Net income | 3.84 | 5.90 | 6.12 |
Diluted: | |||
Continuing operations | 2.90 | 4.90 | 5.27 |
Discontinued operations | 0.91 | 0.94 | 0.77 |
Net income | $ 3.81 | $ 5.84 | $ 6.04 |
Basic weighted-average common shares outstanding | 33.2 | 33 | 32.8 |
Effect of dilutive securities: | |||
Stock options and units (in shares) | 0.2 | 0.3 | 0.3 |
Convertible notes due (in shares) | 0 | 0 | 0.1 |
Diluted weighted-average common shares outstanding (in shares) | 33.4 | 33.3 | 33.2 |
Fastener Business [Member] | |||
Net sales | $ 405.9 | $ 938.5 | $ 935.5 |
Operating income | 14.2 | 50.8 | 43.9 |
Other expense: | |||
Income from discontinued operations before income taxes | 11.9 | 45.2 | 38.1 |
Gain on sale of business | 41 | 0 | 0 |
Income tax expense from discontinued operations | 22.2 | 13.8 | 12.6 |
Net income from discontinued operations | $ 30.7 | $ 31.4 | $ 25.5 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Net income | $ 127.6 | $ 194.8 | $ 200.5 |
Other comprehensive (loss) income: | |||
Foreign currency translation | (82.9) | (59.5) | (15) |
Changes in unrealized pension cost, net of tax | (9.5) | (51.8) | 40.2 |
Changes in fair market value of derivatives, net of tax | (0.1) | (0.1) | 0 |
Other comprehensive (loss) income | (92.5) | (111.4) | 25.2 |
Comprehensive income | $ 35.1 | $ 83.4 | $ 225.7 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 151.3 | $ 92 |
Accounts receivable, net (Includes $548.5 at January 2, 2015 associated with securitization facility) | 1,326.4 | 1,171 |
Inventories | 1,182.6 | 859 |
Deferred income taxes | 0 | 33.7 |
Other current assets | 63.7 | 54.9 |
Current assets of discontinued operations | 3.8 | 379.2 |
Total current assets | 2,727.8 | 2,589.8 |
Property and equipment, at cost | 346.4 | 305.3 |
Accumulated depreciation | (214.6) | (201.1) |
Net property and equipment | 131.8 | 104.2 |
Goodwill | 756.5 | 582.3 |
Intangible assets, net | 453.8 | 202.7 |
Other assets | 72.1 | 101.8 |
Total assets | 4,142 | 3,580.8 |
Current liabilities: | ||
Accounts payable | 905.6 | 738.5 |
Accrued expenses | 245.3 | 183.2 |
Current liabilities of discontinued operations | 5.3 | 108.8 |
Total current liabilities | 1,156.2 | 1,030.5 |
Long-term debt (Includes $65.0 at January 2, 2015 associated with securitization facility) | 1,642.9 | 1,202 |
Other liabilities | 163.5 | 215.3 |
Total liabilities | 2,962.6 | 2,447.8 |
Stockholders’ equity: | ||
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,278,130 and 33,141,950 shares issued and outstanding at January 1, 2016 and January 2, 2015, respectively | 33.3 | 33.1 |
Capital surplus | 249.2 | 238.2 |
Retained earnings | 1,127.4 | 999.7 |
Accumulated other comprehensive loss: | ||
Foreign currency translation | (142) | (59.1) |
Unrecognized pension liability, net | (88.5) | (79) |
Unrealized gain on derivatives, net | 0 | 0.1 |
Total accumulated other comprehensive loss | (230.5) | (138) |
Total stockholders’ equity | 1,179.4 | 1,133 |
Total liabilities and stockholders’ equity | $ 4,142 | $ 3,580.8 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 |
Accounts receivable | $ 0 | $ 548.5 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,278,130 | 33,141,950 |
Common stock, shares outstanding | 33,278,130 | 33,141,950 |
Long-term Debt | $ 1,642.9 | $ 1,202 |
Accounts receivable securitization facility [Member] | ||
Accounts receivable | 548.5 | |
Long-term Debt | $ 0 | $ 65 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Operating activities: | |||
Net income | $ 127.6 | $ 194.8 | $ 200.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of business, net of tax of $17.3 | (40) | 0 | 0 |
Depreciation | 23.8 | 24 | 22.1 |
Amortization of intangible assets | 25.4 | 11.7 | 8 |
Stock-based compensation | 14.5 | 13.8 | 13.6 |
Deferred income taxes | 5.9 | 25.7 | 22.3 |
Amortization of deferred financing costs | 2 | 0 | 1.7 |
Accretion of debt discount | 1.8 | 2.3 | 3.7 |
Pension plan contributions (including settlements) | (37.7) | (16.8) | (15.3) |
Pension plan expenses | 11.4 | 4.6 | 16.7 |
Loss on extinguishments of debt | 0.9 | 0 | 0 |
Excess income tax benefit from employee stock plans | (0.6) | (5.8) | (1.6) |
Impairment of long-lived assets | 0 | 0 | 1.7 |
Changes in current assets and liabilities: | |||
Accounts receivable | (5.9) | (102.9) | 36.9 |
Inventories | (54) | (49.6) | 96.9 |
Accounts payable | (15.3) | 54.9 | (19.9) |
Other current assets and liabilities, net | 31.1 | (49) | (53.5) |
Other, net | 1 | (3.5) | 0.7 |
Net cash provided by operating activities | 91.9 | 104.2 | 334.5 |
Investing activities: | |||
Acquisitions of businesses, net of cash acquired | (822.5) | (418.4) | 0 |
Proceeds from sale of business | 371.8 | 0 | 0 |
Capital expenditures, net | (28.6) | (40.3) | (32.2) |
Net cash used in investing activities | (479.3) | (458.7) | (32.2) |
Financing activities: | |||
Proceeds from borrowings | 643.6 | 1,550.4 | 1,761.2 |
Repayments of borrowings | (707.5) | (1,734.2) | (1,608.9) |
Proceeds from Receivables Facility | 799 | 0 | 0 |
Repayments of Receivables Facility | 409 | 0 | 0 |
Proceeds from issuance of Notes due 2023 | 345.6 | 0 | 0 |
Retirement of Notes due 2015 | (200) | 0 | 0 |
Proceeds from issuance of Notes due 2021 | 0 | 394 | 0 |
Retirement of Notes due 2014 | 0 | (32.3) | 0 |
Retirement of Notes due 2013 | 0 | 0 | (300) |
Payments for repurchase of warrants | 0 | 0 | (19.2) |
Deferred financing costs | (6.7) | (2.3) | (1.2) |
Excess income tax benefit from employee stock plans | 0.6 | 5.8 | 1.6 |
Proceeds from stock options exercised | 0 | 7.2 | 8.1 |
Payment of special cash dividend | 0 | 0 | (165.7) |
Other, net | (1) | (1.7) | 0 |
Net cash provided by (used in) financing activities | 449.8 | 385.7 | (324.1) |
Increase (decrease) in cash and cash equivalents | 62.4 | 31.2 | (21.8) |
Effect of exchange rate changes on cash balances | (3.1) | 3.5 | (10.3) |
Cash and cash equivalents at beginning of period | 92 | 57.3 | 89.4 |
Cash and cash equivalents at end of period | 151.3 | 92 | 57.3 |
Cash paid for interest | 56.1 | 37.6 | 43.5 |
Cash paid for taxes | 103.5 | 117 | 82 |
Canadian Term Loan [Member] | |||
Financing activities: | |||
Proceeds from issuance of term loan | 229.1 | 0 | 0 |
Repayments of Canadian Term Loan | 45.1 | 0 | 0 |
Term loan [Member] | |||
Financing activities: | |||
Proceeds from issuance of term loan | 0 | 200 | 0 |
Repayment of term loan | $ 198.8 | $ 1.2 | $ 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Continuing Operations [Member] |
Beginning Balance at Dec. 28, 2012 | $ 969.9 | $ 32.5 | $ 218.6 | $ 770.6 | $ (51.8) | |
Beginning Balance, Shares at Dec. 28, 2012 | 32,500,000 | |||||
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, shares | 400,000 | |||||
Issuance of common stock and related tax benefits | 3.7 | $ 0.4 | 3.3 | |||
Ending Balance at Jan. 03, 2014 | 1,027.4 | $ 32.9 | 216.3 | 804.8 | (26.6) | |
Ending Balance, Shares at Jan. 03, 2014 | 32,900,000 | |||||
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) | ||||
Special dividend declared on common stock | (166.5) | |||||
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, shares | 200,000 | |||||
Issuance of common stock and related tax benefits | 8.3 | $ 0.2 | 8.1 | |||
Ending Balance at Jan. 02, 2015 | $ 1,133 | $ 33.1 | 238.2 | 999.7 | (138) | |
Ending Balance, Shares at Jan. 02, 2015 | 33,141,950 | 33,100,000 | ||||
Net income | $ 127.6 | 127.6 | ||||
Other comprehensive income (loss): | ||||||
Foreign currency translation | (82.9) | (82.9) | ||||
Changes in unrealized pension cost, net of tax | (9.5) | (9.5) | ||||
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 | 14.8 | $ 14.8 | ||||
Issuance of common stock and related tax benefits, shares | 200,000 | |||||
Issuance of common stock and related tax benefits | (3.6) | $ 0.2 | (3.8) | |||
Ending Balance at Jan. 01, 2016 | $ 1,179.4 | $ 33.3 | $ 249.2 | $ 1,127.4 | $ (230.5) | |
Ending Balance, Shares at Jan. 01, 2016 | 33,278,130 | 33,300,000 |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Unrealized pension cost, net of tax | $ 2.3 | $ 24.3 | $ 24.1 |
Special dividend declared on common stock per share | $ 0 | $ 0 | $ 5 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Jan. 01, 2016 | |
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 and utility power solutions through Anixter Inc. and its subsidiaries. On October 5, 2015, we completed the acquisition of the Power Solutions business ("Power Solutions") from HD Supply, Inc. in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). The acquisition was financed using borrowings under new financing arrangements as described in Note 6. "Debt" and cash on hand. 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 2015 and 2014 and 53 weeks in 2013. Certain prior period amounts have been reclassified to conform to the current year presentation. In 2015, we sold the OEM Supply - Fasteners ("Fasteners") business, as described in Note 2. "Discontinued Operations" . The assets and liabilities and operating results of the Fasteners business are presented as "discontinued operations" in our Consolidated Financial Statements, and all prior periods have been revised to reflect this classification. In the fourth quarter of 2015, in connection with the acquisition of Power Solutions, we renamed our legacy Enterprise Cabling and Security Solutions segment to Network & Security Solutions ("NSS"). The low voltage business of Power Solutions was combined into our historical Electrical and Electronic Wire and Cable ("W&C") segment to form the Electrical & Electronic Solutions ("EES") segment. The high voltage business of Power Solutions forms the Utility Power Solutions ("UPS") segment. 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 $37.5 million and $27.0 million at the end of 2015 and 2014 , respectively. 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 $25.8 million , $11.4 million and $10.2 million in 2015 , 2014 and 2013 , 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 1, 2016 and January 2, 2015 , we reported inventory of $1,182.6 million and $859.0 million , respectively (net of inventory reserves of $42.4 million and $34.7 million , respectively). The acquisition of Power Solutions contributed to the increase in the 2015 inventory and associated reserve compared to 2014. 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 1, 2016 , net property and equipment consisted of $90.4 million of equipment and computer software, $40.6 million of buildings and leasehold improvements and $0.8 million of land. At January 2, 2015 , net property and equipment consisted of $75.9 million of equipment and computer software and $28.3 million of buildings and leasehold improvements. 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. Buildings are recorded at cost and depreciated by applying the straight-line method over their estimated useful lives, which range from 7 to 39 years. Leasehold improvements are depreciated over the useful life or over the term of the related lease, whichever is shorter. 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 continuing operations, including an immaterial amount of capital lease depreciation, was $22.2 million , $20.0 million and $18.6 million in 2015 , 2014 and 2013 , respectively. 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, 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, and these charges are reflected in our operating results. In order to measure an impairment loss of property and equipment, we estimate 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 include 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 are 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. 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 1, 2016 and January 2, 2015 , capitalized costs, net of accumulated amortization, for software developed for internal use were approximately $49.5 million and $44.1 million , respectively. Amortization expense charged to continuing operations for capitalized costs was $2.8 million , $2.5 million and $2.4 million in 2015 , 2014 and 2013 , 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 2015 , 2014 and 2013 were $1.2 million , $0.8 million and $0.6 million , respectively. Goodwill: We evaluate goodwill for impairment annually in the third quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. We assess goodwill for impairment by first performing a qualitative assessment, which 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. 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. From time to time, we may also bypass the qualitative assessment and proceed directly to 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 below. 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. In connection with our third quarter of 2015 annual assessment, we bypassed the qualitative assessment and 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. As a result of this assessment, we concluded that no impairment existed and the carrying amount of goodwill to be fully recoverable. 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. Intangible assets: As of January 1, 2016 and January 2, 2015 , our intangible asset balances are as follows: January 1, 2016 January 2, 2015 (In millions) Average useful life (in years) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships 6-20 $ 461.4 $ (48.4 ) $ 184.8 $ (29.0 ) Exclusive supplier agreement 21 22.0 (1.6 ) 22.9 (0.3 ) Trade names 3-10 13.3 (5.8 ) 14.1 (3.4 ) Trade names Indefinite 10.6 — 10.6 — Non-compete agreements 1-5 4.5 (2.2 ) 3.9 (0.9 ) Total $ 511.8 $ (58.0 ) $ 236.3 $ (33.6 ) 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. Our definite-lived intangible assets are primarily related to customer relationships. The acquisition of Power Solutions contributed to the increase in the 2015 customer relationships compared to 2014. In order to measure an 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 include 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. Intangible amortization expense is expected to average $33.9 million per year for the next five years, of which $16.7 million and $12.7 million relate to intangible assets recorded for the Power Solutions and Tri-Ed acquisitions, respectively. See Note 3. "Business Combinations" 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 2015 , 2014 and 2013 : (In millions) Years Ended January 1, January 2, January 3, Other, net: Foreign exchange $ (14.9 ) $ (8.2 ) $ (6.3 ) Foreign exchange devaluations (3.6 ) (8.0 ) (1.1 ) Cash surrender value of life insurance policies (0.8 ) 0.8 0.2 Other (1.8 ) (0.6 ) (1.7 ) Total other, net $ (21.1 ) $ (16.0 ) $ (8.9 ) In the fourth quarter of 2015, the Argentine peso was devalued by approximately 40% against the U.S. Dollar ("USD") due to the loosening of currency controls. In the first quarter of 2015, the Venezuelan government changed its policy regarding the bolivar, which we believe will now require us to use the Sistema Marginal de Divisas or Marginal Exchange System ("SIMADI") a "completely free floating" rate. As a result, we believe that the current rate of approximately 200.0 bolivars to one USD will be the rate available to us in the event we repatriate cash from Venezuela. As a result of these devaluations, we recorded a foreign exchange loss of $3.6 million in 2015. 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 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 4.3 bolivars to one USD to 6.3 bolivars to one USD. As a result of the devaluation, through the end of fiscal 2013, we believed that the official rate of 6.3 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 USD against certain foreign currencies, primarily in our Europe and Latin America regions, we recorded additional foreign exchange losses of $14.9 million in 2015 , $8.2 million in 2014 and $6.3 million in 2013 . 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 1, 2016 and January 2, 2015 , 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 1, 2016 and January 2, 2015 , the gross notional amount of the foreign currency forward contracts outstanding was approximately $196.1 million and $222.9 million , respectively. At January 1, 2016 and January 2, 2015 , the net notional amount of the foreign currency forward contracts outstanding was approximately $132.8 million and $121.9 million , respectively. While all of our foreign currency forward contracts are subject to master netting arrangements with our counterparties, we present our assets and liabilities related to derivative instruments on a gross basis within the Consolidated Balance Sheets. The gross fair value of our derivative assets and liabilities are immaterial. 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 company 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" . Fair value disclosures of debt are discussed in Note 6. "Debt" . 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. The fair value measurements of goodwill, intangible assets and property and equipment are discussed above. 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 $29.1 million and $23.7 million at January 1, 2016 and January 2, 2015 , 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 instances 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 $13.2 million , $12.6 million and $12.4 million in 2015 , 2014 and 2013 , 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 $102.7 million , $99.5 million and $99.6 million in 2015 , 2014 and 2013 , respectively. Stock-based compensation: In accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), we measure the cost of all 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 2015 , 2014 and 2013 , we had 0.2 million , 0.3 million and 0.3 million , respectively, 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 2015 , 2014 and 2013 , the antidilutive stock options and units were immaterial. As discussed in Note 6. "Debt" , the Senior notes due 2013 ("Notes due 2013") have been retired; however, they were dilutive in 2013. Specifically, as a result of our average stock price exceeding the average accreted value during 2013, we included 0.1 million additional shares related to the Notes due 2013 in the diluted weighted-average common shares outstanding. Recently issued and adopted accounting pronouncements: In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in the balance sheet. The ASU simplifies the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in the balance sheet. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We adopted this guidance prospectively in the fourth quarter of fiscal year 2015. We reclassified approximately $28.0 million of current deferred tax assets to other assets (non-current) in the balance sheet as of January 1, 2016 . In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments , which eliminates the requirement to retroactively account for measurement-period adjustments to provisional amounts recognized in a business combination. Under the new guidance, the measurement-period adjustments must be recognized in the period in which adjustments are determined, including the effect on earnings of any amounts that would have been recorded in previous periods. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We adopted this guidance in the third quarter of fiscal year 2015. The adoption did not have a material impact on our results of operations, cash flows or financial position. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . The core principle of the guidance is that an entity should measure inventory at the "lower of cost and net realizable value" and options that currently exist for "market value" will be eliminated. The ASU defines net realizable value as the "estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation." The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We adopted this guidance in the fourth quarter of fiscal year 2015. The adoption did not have a material impact on our results of operations, cash flows or financial position. In April 2015, the FASB issued ASU 2015-04, Compensation-Retirement Benefits (Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets) , which pe |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES Accrued expenses consisted of the following: January 1, January 2, (In millions) Salaries and fringe benefits $ 87.5 $ 77.4 Other accrued expenses 157.8 105.8 Total accrued expenses $ 245.3 $ 183.2 |
DISCONTINUED OPERATIONS DISCONT
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS | 12 Months Ended |
Jan. 01, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS On February 9, 2015, our Board of Directors approved the disposition of the OEM Supply - Fasteners ("Fasteners") business. On February 11, 2015, through our wholly-owned subsidiary Anixter Inc., we entered into a definitive asset purchase agreement with American Industrial Partners ("AIP") to sell the Fasteners business for $380.0 million in cash, subject to certain post-closing adjustments. We closed the sale of the Fasteners business to AIP, excluding certain foreign locations on June 1, 2015 and settled all net working capital adjustments relating to these entities in the fourth quarter of 2015. We received cash of $371.8 million on the sale of the Fasteners business. Including transaction related costs of $16.3 million , the sale resulted in a pre-tax gain of $41.0 million ( $23.7 million , net of tax). The assets and liabilities and operating results of the Fasteners business for fiscal year 2015 are presented as "discontinued operations" in our Consolidated Financial Statements. Accordingly, all prior periods have been revised to reflect this classification. Long-term assets of discontinued operations and long-term liabilities of discontinued operations are presented within "Other assets" and "Other liabilities," respectively, in the Consolidated Balance Sheets. The components of the results from discontinued operations reflected in our Consolidated Statements of Cash Flows were immaterial. We allocated interest costs to discontinued operations as a result of the sale of the Fasteners business. The allocated interest costs were $1.1 million , $3.6 million and $3.5 million in 2015, 2014 and 2013, respectively. This represents the amount of interest costs not directly attributable to our other operations that would not have been incurred if we had the proceeds from the sale of the Fasteners business at the beginning of the respective periods. In connection with the disposition of the Fasteners business, we recognized a pension curtailment gain of $5.1 million and special termination benefit costs of $0.3 million in 2015. The following represents the components of the results from discontinued operations as reflected in our Consolidated Statements of Income: Years Ended (In millions) January 1, January 2, January 3, Net sales $ 405.9 $ 938.5 $ 935.5 Operating income $ 14.2 $ 50.8 $ 43.9 Income from discontinued operations before income taxes $ 11.9 $ 45.2 $ 38.1 Gain on sale of discontinued operations $ 41.0 $ — $ — Income tax expense from discontinued operations $ 22.2 $ 13.8 $ 12.6 Net income from discontinued operations $ 30.7 $ 31.4 $ 25.5 As reflected on our Consolidated Balance Sheets as of January 1, 2016 and January 2, 2015, the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows: (In millions) January 1, January 2, Assets of discontinued operations: Accounts receivable $ 2.6 $ 158.2 Inventories 1.2 213.8 Other current assets — 7.2 Net property and equipment — 16.8 Other assets — 10.9 Total assets of discontinued operations $ 3.8 $ 406.9 Liabilities of discontinued operations: Accounts payable $ 1.3 $ 92.8 Accrued expenses 4.0 16.0 Other liabilities 1.7 0.2 Total liabilities of discontinued operations $ 7.0 $ 109.0 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Jan. 01, 2016 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | NOTE 3. BUSINESS COMBINATIONS Power Solutions Acquisition On October 5, 2015, we completed the acquisition of the Power Solutions business ("Power Solutions") from HD Supply, Inc. in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). The acquisition was financed using borrowings under new financing arrangements as described in Note 6. "Debt" and cash on hand. Power Solutions was a compelling strategic acquisition for us that is expected to significantly enhance our competitive position in the electrical wire and cable business and further strengthen our customer and supplier value proposition. In addition to transforming our existing utility business into a leading North American distributor to the utility sector, this acquisition will enable us to provide a full line electrical solution to our existing customers and will provide us with broader access to the mid-size electrical construction market. The high voltage business of Power Solutions forms the UPS segment within our realigned reportable segments. The low voltage business of Power Solutions was combined into our historical W&C segment to form the EES segment. The following table sets forth the preliminary purchase price allocation, as of the acquisition date, for Power Solutions. The purchase price allocation is preliminary pending finalization of the valuation of the acquired property, equipment, leases, intangible assets and related deferred tax liabilities, which is expected to be completed in 2016. (In millions) Cash $ 11.7 Current assets, net 564.6 Property, plant and equipment 25.0 Goodwill 190.0 Intangible assets 283.9 Non-current assets 5.4 Current liabilities (231.6 ) Non-current liabilities (8.8 ) Total purchase price $ 840.2 Power Solutions goodwill of $34.7 million and $155.3 million was recorded in the EES and UPS reportable segments, respectively. The goodwill resulting from the acquisition largely consists of our expected future product sales and synergies from combining Power Solutions products with our existing product offerings. Other than $84.9 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 14-18 $ 281.5 Non-compete agreements 1 2.4 Total intangible assets $ 283.9 For 2015, Power Solutions added $459.2 million of revenue and $10.9 million in operating income to our consolidated results. We incurred approximately $11.9 million in acquisition and integration costs and financing costs in 2015 included in "Operating expense" on the Consolidated Statements of Income. Since the date of acquisition, the Power Solutions results are reflected in our Consolidated Financial Statements. Tri-Ed Acquisition On September 17, 2014, we acquired 100% of the outstanding capital stock of Tri-Northern Acquisition Holdings, Inc. ("Tri-Ed"), a leading independent distributor of security and low-voltage technology products, from Tri-NVS Holdings, LLC for $418.4 million (net of cash acquired of $11.6 million and a favorable net assets adjustment of $2.2 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. 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 security integrators and dealers we do not currently service. The acquired Tri-Ed business is included within our NSS segment. The following table sets forth the purchase price allocation, as of the acquisition date, for Tri-Ed. The purchase price allocation and valuation of the acquired intangible assets and related deferred tax liabilities was completed in the third quarter of 2015. (In millions) Cash $ 11.6 Current assets, net 203.9 Property, plant and equipment 2.7 Goodwill 242.2 Intangible assets 166.8 Current liabilities (143.3 ) Non-current liabilities (56.1 ) Total purchase price $ 427.8 All Tri-Ed goodwill, other assets and liabilities were recorded in the NSS 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 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 11-18 $ 120.6 Exclusive supplier agreement 21 23.2 Trade names Indefinite 10.6 Tri-Ed trade names 4 9.2 Non-compete agreements 4-5 3.2 Total intangible assets $ 166.8 We incurred approximately $7.0 million in acquisition and integration costs and financing costs in 2014, with $6.7 million and $0.3 million included in "Operating expense" and "Other, net", respectively, on the Consolidated Statement of Income. Since the date of acquisition, the Tri-Ed results are reflected in our Consolidated Financial Statements. Pro Forma Information The following unaudited pro forma information shows our results of operations as if the acquisition of Power Solutions had been completed as of the beginning of fiscal 2014 and 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 combinations, depreciation and amortization of tangible and intangible assets recognized as part of the business combinations, related income taxes and various other costs which would not have been incurred had we, Power Solutions and Tri-Ed operated as a combined entity (i.e., management fees paid by Power Solutions and Tri-Ed to their former owners). Years Ended (In millions, except per share amounts) January 1, 2016 January 2, 2015 January 3, 2014 Net sales $ 7,733.4 $ 7,831.0 $ 5,863.2 Net income from continuing operations $ 107.1 $ 180.5 $ 178.3 Income per share from continuing operations: Basic $ 3.22 $ 5.46 $ 5.44 Diluted $ 3.20 $ 5.41 $ 5.37 |
RESTRUCTURING CHARGE
RESTRUCTURING CHARGE | 12 Months Ended |
Jan. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGE | RESTRUCTURING AND OTHER CHARGES 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. The following table summarizes activity related to liabilities associated with our restructuring activities: Restructuring Activity Q4 2015 Plan Q2 2015 Plan Q4 2012 Plan Total Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) Balance at January 3, 2014 $ — $ — $ — $ 1.6 $ 0.3 $ 1.6 $ 0.3 Payments and other — — — (1.6 ) 0.5 (1.6 ) 0.5 Balance at January 2, 2015 $ — $ — $ — $ — $ 0.8 $ — $ 0.8 Charges 3.2 0.2 4.8 — — 8.0 0.2 Payments and other (0.2 ) — (3.8 ) — (0.4 ) (4.0 ) (0.4 ) Balance at January 1, 2016 $ 3.0 $ 0.2 $ 1.0 $ — $ 0.4 $ 4.0 $ 0.6 (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. Q4 2015 Restructuring Plan In the fourth quarter of 2015, we recorded a pre-tax charge of $1.0 million , $2.3 million and $0.1 million in our NSS, EES and UPS segments, respectively, primarily for severance-related expenses associated with a reduction of approximately 80 positions. The $3.4 million charge primarily reflects actions we are taking to improve efficiencies in conjunction with the acquisition of Power Solutions. This charge is included in "Operating expenses" in our Consolidated Statement of Income for fiscal year 2015. The majority of the remaining charge included in accrued expenses of $3.2 million as of January 1, 2016 is expected to be paid by the fourth quarter of 2016. Q2 2015 Restructuring Plan In the second quarter of 2015, we recorded a pre-tax charge of $3.0 million , $2.2 million and $0.1 million in our NSS, EES, and Corporate segments, respectively, for severance-related expenses associated with a reduction of approximately 100 positions. The $5.3 million charge reflects actions we are taking to improve efficiencies and eliminate the stranded costs in conjunction with the sale of the Fasteners business. In the fourth quarter of 2015, we reduced the charge by $0.5 million , primarily in our EES segment, due to a reduction in estimated future obligations under the plan. This charge is included in "Operating expenses" in our Consolidated Statement of Income for fiscal year 2015. The majority of the remaining charge included in accrued expenses of $1.0 million as of January 1, 2016 is expected to be paid by the second quarter of 2016. Q4 2012 Restructuring Plan 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 pre-tax charge of $4.1 million and $2.8 million in our NSS and EES segments, respectively. The $6.9 million restructuring charge primarily consisted of severance-related expenses associated with a reduction of over 200 positions. This charge was included in "Operating expenses" in our Consolidated Statement of Income for fiscal year 2012. At January 1, 2016 , the majority of the remaining charge included in accrued expenses of $0.4 million is expected to be paid in 2016. Other Charges The year ended January 1, 2016 includes $13.2 million of acquisition and integration costs, $11.7 million of Latin America assets write-off, a write off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, a $1.7 million dilapidation provision related to leasehold properties, a $0.9 million loss on the extinguishment of debt, $0.4 million related to pension divestiture costs, $3.6 million of foreign exchange losses due to the devaluation of foreign currencies, and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt. In addition, the year ended January 1, 2016 includes net tax expense of $11.3 million primarily related to the establishment of a deferred tax valuation allowance and $0.5 million of other tax expense. The year ended January 2, 2015 includes $7.5 million of acquisition and integration costs and financing costs related to the Tri-Ed acquisition, $8.0 million of foreign exchange losses due to the devaluation of the Venezuela bolivar and the Argentina peso, a net tax benefit of $6.9 million primarily related to the reversal of a deferred tax valuation allowance in Europe, and a net tax benefit of $1.9 million primarily related to closing prior tax years. The year ended January 3, 2014 includes net benefits of $4.7 million primarily related to closing prior tax years, including related interest income of $0.7 million . |
DEBT
DEBT | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
DEBT | Debt is summarized below: (In millions) January 1, January 2, Long-term debt: 5.50% Senior notes due 2023 $ 345.8 $ — 5.125% Senior notes due 2021 394.9 394.2 5.625% Senior notes due 2019 346.8 345.9 Canadian term loan 172.9 — Revolving lines of credit 390.1 — Term loan — 198.8 Accounts receivable securitization facility — 65.0 5.95% Senior notes due 2015 — 200.0 Other 2.6 3.8 Unamortized debt issuance costs (10.2 ) (5.7 ) Total long-term debt $ 1,642.9 $ 1,202.0 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. Anixter International Inc. has 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 1, 2016 are as follows: 2016 - $2.6 million , 2017 - $0.0 million , 2018 - $5.0 million , 2019 - $368.4 million , 2020 - $536.4 million and $740.7 million thereafter. Our average borrowings outstanding were $1,338.4 million and $1,027.4 million for the fiscal years ending January 1, 2016 and January 2, 2015 , respectively. Our weighted-average cost of borrowings was 4.8% , 4.7% and 5.3% for the years ended January 1, 2016 , January 2, 2015 and January 3, 2014 , respectively. Interest paid in 2015 , 2014 and 2013 was $56.0 million , $37.6 million and $40.0 million , respectively. At the end of fiscal 2015 , we had approximately $155.2 million and $134.2 million in available, committed, unused borrowings under our $600.0 million U.S. accounts receivable asset based five-year revolving credit facility and $150.0 million U.S. inventory asset based five-year revolving credit facility, respectively. All credit lines are with financial institutions with investment grade credit ratings. Borrowings under these facilities are limited based on the borrowing base criteria as described below. The Canadian term loan is subject to a maximum leverage ratio of 4.25 x and a minimum fixed charge ratio of 3.0 x. 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. Revolving Lines of Credit and Canadian Term Loan On October 5, 2015, we, through our wholly-owned subsidiaries, Anixter Inc., Anixter Receivables Corporation ("ARC") and Anixter Canada Inc., entered into certain financing transactions in connection with the consummation of the acquisition of Power Solutions, including a U.S. accounts receivable asset based five-year revolving credit facility in an aggregate committed amount of $600.0 million ("Receivables Facility"), a U.S. inventory asset based five-year revolving credit facility in an aggregate committed amount of $150.0 million ("Inventory Facility") for a U.S. combined commitment of $750.0 million ("Combined Commitment"). Additionally, we entered into a Canadian term loan facility in Canada in an aggregate principal amount of $300.0 million Canadian dollars, the equivalent to approximately $225.0 million USD, with a five year maturity ("Canadian Term Loan"). In connection with these financing transactions, we incurred approximately $6.7 million in financing transaction costs, of which approximately $5.4 million was capitalized as debt issuance costs and will be amortized through maturity using the straight-line method, and approximately $1.3 million was expensed as incurred. These financing arrangements are described in greater detail below. Receivables Facility On October 5, 2015, we, through our wholly-owned subsidiary, ARC, entered into a Receivables Facility, which is a receivables based five-year revolving credit facility in an aggregate committed amount of $600.0 million . Borrowings under the Receivables Facility are secured by a first lien on all assets of ARC and supported by an unsecured guarantee by Anixter International. The Receivables Facility has a borrowing base of 85% of eligible receivables, subject to certain reserves. In connection with the entry into the Receivables Facility, Anixter Inc. and ARC terminated its existing Second Amended and Restated Receivables Purchase Agreement (the "RPA"). In connection with the entry into the Receivables Facility, on October 5, 2015, Anixter Inc. and ARC entered into a Third Amended and Restated Receivables Sale Agreement (the "Amended and Restated RSA"), which amended and restated the existing Second Amended and Restated Sales Agreement. The purpose of the Amended and Restated RSA is (i) to reflect the entry into the Receivables Facility and the termination of the RPA, and (ii) to include in the receivables sold by Anixter Inc. to ARC receivables originated by Tri-Northern Holdings, Inc. and its subsidiaries (collectively, the "Tri-Ed Subsidiaries") and subsidiaries acquired in the Power Solutions acquisition (the "Power Solutions Subsidiaries"). Inventory Facility On October 5, 2015, we and certain of our wholly-owned subsidiaries, including the Tri-Ed Subsidiaries and Power Solutions Subsidiaries, entered into the Inventory Facility, an asset based lending five-year revolving credit facility, in an aggregate committed amount of $150.0 million . Borrowings under the Inventory Facility are secured by a first lien on Anixter Inc.'s and certain of its subsidiaries' personal property and supported by a guarantee by Anixter International Inc. The Inventory Facility has a borrowing base, (a) with respect to appraised eligible domestic inventory, of the lesser of (i) 85% of the net orderly liquidation value of such inventory and (ii) 75% of book value of such inventory, plus, (b) with respect to eligible domestic inventory not appraised, 40% of the net orderly liquidation value of such inventory, less (c) certain reserves. The Receivables Facility and the Inventory Facility (collectively, the "Combined Facilities") The Combined Facilities drawn pricing will range from LIBOR plus 125 basis points when the combined unused availability (the "Combined Availability") under the Combined Facilities is greater than $500 million to LIBOR plus 175 basis points when Combined Availability is less than $250 million . Undrawn fees will be 25 basis points if greater than/equal to 50% of the Combined Commitment is drawn and 37.5 basis points if less than 50% of the Combined Commitment is drawn. Acquisitions and restricted payments will be permitted, subject to, among other things, (i) Combined Availability of at least $150.0 million after giving pro forma effect to any acquisition or restricted payment or (ii) (a) Combined Availability of at least $112.5 million and (b) maintenance of a minimum fixed charge coverage ratio of at least 1.1 x, after giving pro forma effect to the acquisition or restricted payment. The Combined Facilities provides for customary representations and warranties and customary events of default, generally with corresponding grace periods, including, without limitation, payment defaults with respect to the facility, covenant defaults, cross-defaults to other agreements evidencing material indebtedness, certain judgments and events of bankruptcy. In connection with the new financing arrangements described above, on October 5, 2015, we terminated our $400.0 million (or the equivalent in Euro) 5-year senior unsecured revolving credit agreement and repaid our borrowings under the $200.0 million term loan in connection with the new financing arrangements. Canadian Term Loan On October 5, 2015, we, through our wholly-owned subsidiaries, Anixter Canada Inc. and Tri-Ed ULC, entered into a $300.0 million Canadian dollars (equivalent to approximately $225.0 million USD) Canadian Term Loan. During the fourth quarter of 2015, we repaid $45.1 million of the outstanding balance and incurred $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt. The Canadian Term Loan is and will be guaranteed by all present and future material Canadian subsidiaries of Anixter Canada Inc. and Tri-Ed ULC as well as Anixter Mid Holdings BV. The Canadian Term Loan is secured by a first priority security interest in all of the assets of Anixter Canada Inc. and each of its Canadian subsidiaries, which comprise the borrowing group. The Canadian Term Loan has a five year maturity. The drawn pricing will range from 0.375% to 1.250% over prime and 1.375% to 2.250% over the banker’s acceptance rate, depending on consolidated leverage ranging from less than or equal to 1.25 x to equal to or greater than 3.00 x. The Canadian Term Loan amortizes 5% in each of years 1 and 2, 10% in each of years 3 and 4 and 70% in year 5. The borrowing group for the Canadian Term Loan initially will be subject to a maximum leverage ratio of 4.25 x and a minimum fixed charge coverage ratio of 3.0 x. The Canadian Term Loan provides for customary representations and warranties and customary events of default, generally with corresponding grace periods, including, without limitation, payment defaults with respect to the facility, covenant defaults, cross-defaults to other agreements evidencing material indebtedness, certain judgments and events of bankruptcy. 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. 5.50% Senior Notes Due 2023 On August 18, 2015, our primary operating subsidiary, Anixter Inc., completed the issuance of $350.0 million principal amount of Senior notes due 2023 ("Notes due 2023"). The Notes due 2023 were issued at a price that was 98.75% of par, which resulted in a discount related to underwriting fees of $4.4 million . The discount is reported on the Consolidated Balance Sheet as a reduction to the face amount of the Notes due 2023 and is being amortized to interest expense over the term of the related debt, using the effective interest method. In addition, $1.7 million of issuance costs were paid, which are being amortized through maturity using the straight-line method. The Notes due 2023 pay interest semi-annually at a rate of 5.5% per annum and will mature on March 1, 2023 . In addition, Anixter Inc. may at any time redeem some or all of the Notes due 2023 at a price equal to 100% of the principal amount plus a "make whole" premium. If we experience certain kinds of changes of control, Anixter Inc. must offer to repurchase all of the Notes due 2023 outstanding at 101% of the aggregate principal amount repurchased, plus accrued and unpaid interest. The proceeds were used to partially finance the Power Solutions acquisition. Anixter International Inc. fully and unconditionally guarantees the Notes due 2023, which are unsecured obligations of Anixter Inc. 5.125% 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. Anixter International Inc. fully and unconditionally guarantees the Notes due 2021, which are unsecured obligations of Anixter Inc. 5.625% 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. Anixter International Inc. fully and unconditionally guarantees the Notes due 2019, which are unsecured obligations of Anixter Inc. Accounts Receivable Securitization Program Under our prior accounts receivable securitization program, we sold, on an ongoing basis without recourse, a portion of our accounts receivables originating in the United States to the Anixter Receivables Corporation ("ARC"), which was considered a wholly-owned, bankruptcy-remote variable interest entity ("VIE"). We had the authority to direct the activities of the VIE and, as a result, we concluded that we maintained control of the VIE, were the primary beneficiary (as defined by accounting guidance) and, therefore, consolidated the account balances of ARC. In connection with the new financing arrangements described above, on October 5, 2015 we terminated this accounts receivable securitization facility. As of January 2, 2015 , $548.5 million of our receivables were sold to ARC. ARC in turn assigned a collateral interest in these receivables to a financial institution for proceeds up to $300.0 million . Short-term borrowings We have borrowings under other bank revolving lines of credit totaling $2.6 million at the end of fiscal 2015 , and we had short-term borrowings under our $200.0 million term loan and other bank revolving lines of credit totaling $10.1 million at the end of fiscal 2014 . Our short-term borrowings have maturity dates within the next fiscal year. However, all of the borrowings at the end of fiscal 2015 have been classified as long-term at January 1, 2016 , as we have the intent and ability to refinance the debt under existing long-term financing agreements. At the end of 2014 , the Notes due 2015 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 connection with the new financing arrangements described above, on October 5, 2015, we terminated our $300.0 million accounts receivable securitization facility and $400.0 million (or the equivalent in Euro) 5-year senior unsecured revolving credit agreement and repaid our borrowings under the $200.0 million term loan. Upon the termination of these facilities and repayment of the $200.0 million term loan, we incurred a $0.9 million loss on the extinguishment of debt in the fourth quarter of 2015, representing a write-off of a portion of unamortized debt issuance costs. The remaining unamortized debt issuance costs are being amortized through maturity of the new financing arrangements using the straight-line method. In the first quarter of 2015, we retired our 5.95% Senior notes due 2015 upon maturity for $200.0 million . Available borrowings under existing long-term financing agreements were used to settle the maturity value. In March 2009, our primary operating subsidiary, Anixter Inc., issued $200.0 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. 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 $300.0 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. Upon 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 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 2023, Notes due 2021 and Notes due 2019. At January 1, 2016 , our total carrying value and estimated fair value of debt outstanding, was $1,642.9 million and $1,669.5 million , respectively. This compares to a carrying value and estimated fair value of debt outstanding at January 2, 2015 of $1,202.0 million and $1,238.1 million , respectively. The increase in the carrying value and estimated fair market value is primarily due to borrowings under our revolving lines of credit and the issuance of the Notes due 2023, partially offset by the retirement of the Notes due 2015, the repayment of our $200.0 million term loan and the termination of our accounts receivable securitization facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Jan. 01, 2016 | |
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 1, 2016 and January 2, 2015 . Minimum lease commitments under operating leases at January 1, 2016 are as follows: (In millions) 2016 $ 71.4 2017 57.6 2018 48.3 2019 34.6 2020 25.6 2021 and thereafter 58.4 Total $ 295.9 Total rental expense was $78.0 million , $70.9 million and $68.4 million in 2015 , 2014 and 2013 , respectively. Aggregate future minimum rentals to be received under non-cancelable subleases at January 1, 2016 were $7.1 million . As of January 1, 2016 , we had $38.7 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 1, 2016 , 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. 01, 2016 | |
INCOME TAXES | INCOME TAXES Income Before Tax Expense : Domestic income before income taxes was $167.3 million , $173.0 million and $164.6 million for 2015 , 2014 and 2013 , respectively. Foreign income before income taxes was $15.6 million , $76.6 million and $93.5 million for fiscal years 2015 , 2014 and 2013 , respectively. Tax Provisions and Reconciliation to the Statutory Rate : The components of our tax expense from continuing operations and the reconciliation to the statutory federal rate are identified below. Income tax expense was comprised of: (In millions) Years Ended January 1, January 2, January 3, Current: Foreign $ 14.1 $ 22.6 $ 26.5 State 7.2 4.7 4.5 Federal 58.8 33.2 29.8 80.1 60.5 60.8 Deferred: Foreign 7.1 (1.0 ) 1.6 State (0.7 ) 3.3 2.5 Federal (0.5 ) 23.4 18.2 5.9 25.7 22.3 Income tax expense $ 86.0 $ 86.2 $ 83.1 Reconciliations of income tax expense to the statutory corporate federal tax rate of 35% were as follows: (In millions) Years Ended January 1, January 2, January 3, Statutory tax expense $ 64.0 $ 87.4 $ 90.3 Increase (reduction) in taxes resulting from: State income taxes, net 4.7 5.4 4.8 Foreign tax effects 6.3 1.2 (7.6 ) Change in valuation allowance 9.3 (9.2 ) 0.3 Other, net 1.7 1.4 (4.7 ) Income tax expense $ 86.0 $ 86.2 $ 83.1 Tax Payments : We made net payments for income taxes in 2015 , 2014 and 2013 of $103.5 million , $117.0 million and $82.0 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 1, 2016 , various of our foreign subsidiaries had aggregate cumulative net operating losses ("NOL") carryforwards for foreign income tax purposes of approximately $87.6 million which are subject to various provisions of each respective country. Approximately $74.1 million of the NOL carryforwards may be carried forward indefinitely. The remaining NOL carryforwards expire at various times between 2016 and 2024 . Undistributed Earnings : 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 disposition of the Fasteners business, we are no longer permanently reinvested with respect to the non-U.S. earnings of the Fasteners business, because we repatriated to the U.S. most of the net proceeds attributable to the sale of the non-U.S. Fasteners business via intercompany debt repayment, dividend or other means. Therefore, our 2015 results include, as a component of discontinued operations, $10.0 million expense for U.S. federal and state, and foreign income taxes and withholding taxes related to this change in our reinvestment assertion. The remaining undistributed earnings of our foreign subsidiaries amounted to approximately $647.4 million at January 1, 2016 . 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 1, 2016 , according to the foreign laws and treaties in place at that time, estimated U.S. federal income tax of approximately $56.6 million and various foreign jurisdiction withholding taxes of approximately $31.9 million would be payable upon the remittance of all earnings at January 1, 2016 . Deferred Income Taxes : Significant components of our deferred tax assets (liabilities) were as follows: (In millions) January 1, January 2, Deferred compensation and other postretirement benefits 36.0 41.2 Foreign NOL carryforwards and other 24.8 28.2 Accrued expenses and other 10.4 4.7 Inventory reserves 7.7 14.6 Unrealized foreign exchange 5.8 — Allowance for doubtful accounts 10.2 7.7 Gross deferred tax assets 94.9 96.4 Property, equipment, intangibles and other (83.7 ) (84.8 ) Gross deferred tax liabilities (83.7 ) (84.8 ) Deferred tax assets, net of deferred tax liabilities 11.2 11.6 Valuation allowance (24.0 ) (11.9 ) Net deferred tax liabilities $ (12.8 ) $ (0.3 ) Uncertain Tax Positions and Jurisdictions Subject to Examinations : A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2013 , 2014 and 2015 is as follows: (In millions) 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 $ 3.0 Additions for tax positions of prior years 0.4 Addition for Power Solutions acquisition 2.2 Reductions for tax positions of prior years (0.3 ) Balance at January 1, 2016 $ 5.3 Interest and penalties accrued for unrecognized tax benefits were $0.2 million , $0.3 million and $0.2 million in 2015 , 2014 and 2013, respectively. In the fourth quarter of 2015, we acquired Power Solutions and brought forward the existing uncertain tax positions in the amount of $2.9 million of which $0.7 million is related to interest and penalties. The liability of the uncertain tax positions is fully indemnified and offset by a corresponding indemnification asset recorded on the balance sheet. Excluding the fully indemnified unrecognized tax benefit balance mentioned above, we estimate that of the unrecognized tax benefit balance of $3.1 million , all of which would affect the effective tax rate, $0.5 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 $3.9 million cover a range of issues, including intercompany charges and withholding taxes, and involve various taxing jurisdictions. Only the returns for fiscal tax years 2012, 2013, 2014 and 2015 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 2014. For most states, fiscal tax years 2012 and later remain subject to examination. In Canada, the fiscal tax years 2011 and later are still subject to examination, while in the United Kingdom, the fiscal tax years 2014 and later remain subject to examination. |
PENSION PLANS, POST-RETIREMENT
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS | 12 Months Ended |
Jan. 01, 2016 | |
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 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 GAAP is the expected return on plan assets. For 2015, we had assumed that the weighted-average expected long-term rate of return on plan assets would be 5.63% . This expected return on plan assets is included in the net periodic benefit cost for the fiscal year ended 2015. As a result of the combined effect of valuation changes in both the equity and bond markets, the plan assets produced an actual loss of approximately 1.9% in 2015 and an actual gain of approximately 10.0% in 2014. The fair value of plan assets is $446.2 million at the end of fiscal 2015, compared to $461.7 million at the end of fiscal 2014. 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 2015, 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). At the end of 2015 and 2014, we concluded the Ryan ALM Above Median yield curves are 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 at the end of 2013. These rates are adjusted to match the duration of the liabilities associated with the pension plans. In the third quarter of 2015, we took two actions related to the Anixter Inc. Pension Plan in the United States. First, the plan was frozen to entrants first hired or rehired on or after July 1, 2015. Anixter Inc. will make an annual contribution to the Employee Savings Plan on behalf of each active participant who is first hired or rehired on or after July 1, 2015, or is not participating in the Anixter Inc. Pension Plan. The amount of the employer annual contribution to each active participant's account will be an amount determined by multiplying the participant's salary for the Plan year by either: (1) 2% if such participant's years of service as of August 1 of the Plan year is fewer than five, or (2) 2.5% if such participant's years of service as of August 1 of the Plan year is five or greater. This contribution is in lieu of being eligible for the Anixter Inc. Pension Plan. The total expense related to the amendment was $0.8 million . Second, we amended the Anixter Inc. Pension Plan in the United States to allow for terminated Fasteners employees to become immediately vested, if they were hired before February 12, 2015 and are not already fully vested. Furthermore, the amendment allows for employees who were terminated in connection with the sale of the Fastener business, the one-time option to receive a cash payout of their vested benefits. This resulted in $10.2 million of additional contributions paid by us using excess cash from operations to fund $10.2 million of payments. The funding of the cash payments did not result in a settlement charge as the amount did not exceed the service and interest costs of the plan in 2015. Additionally, in connection with the disposition of the Fasteners business, we commenced settlement of the liabilities of one of our Europe pension plans. As such, we entered into a buy-in policy with an insurance carrier for that plan and will convert to a buy-out policy in 2016. After the conversion, a final settlement of the pension plan will take its place once the liabilities have been settled and accumulated other comprehensive losses of approximately $7.8 million ( £5.3 million ) will be charged to the income statement. In 2014, we adopted new U.S. mortality tables 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. In 2015, the the Society of Actuaries released new mortality improvement projection scales. As a result, we again updated U.S. mortality tables for purposes of determining our mortality assumption used in the U.S. defined benefit plans' liability calculation. The updated mortality assumptions resulted in a decrease of $1.9 million and an increase of $ 17.7 million to the benefit obligation as of the end of 2015 and 2014, respectively, after reflecting the discount rate change. At January 1, 2016 and January 2, 2015, we determined the consolidated weighted-average discount rate of all plans to be 3.98% and 3.79% , respectively, and used these rates to measure the PBO at the end of each respective fiscal year end. As a result, the PBO decreased to $516.1 million at the end of fiscal 2015 from $556.0 million at the end of fiscal 2014. Our consolidated net unfunded status was $69.9 million at the end of fiscal 2015 compared to $94.3 million at the end of 2014. 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. All non-union domestic employees 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 1 st in the Domestic Plan and is based on the 10 -year Treasury note rate as of the last business day of December. This benefit was modified for entrants hired or rehired on or after July 1, 2015 as described above. 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 preference is to refrain from exposing the plans to higher volatility in pursuit of potential higher returns. The Domestic Plans’ and Foreign Plans’ asset mixes as of January 1, 2016 and January 2, 2015 and our asset allocation guidelines for such plans are summarized as follows. Domestic Plans January 1, January 3, 2014 Allocation Guidelines Min Target Max Large capitalization U.S. stocks 23.0 % 22.8 % 17 % 22 % 27 % Small to mid capitalization U.S. stocks 27.1 27.7 20 30 40 Emerging market equity 7.6 8.9 5 10 15 Total equity securities 57.7 59.4 62 Fixed income investments 37.9 37.1 31 38 45 Cash equivalents 4.4 3.5 — — 10 100.0 % 100.0 % 100 % Foreign Plans January 1, Allocation Guidelines Target Equity securities 43 % 44 % Fixed income investments 22 22 Other investments 35 34 100 % 100 % Foreign Plans January 2, Allocation Guidelines Target Equity securities 46 % 48 % Fixed income investments 47 45 Other investments 7 7 100 % 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, we periodically rebalance our asset portfolios to be in line with our allocation guidelines. For 2015 , 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 2015 is 5.63% . 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 1, January 2, Changes to Balance: Beginning balance $ 106.8 $ 32.3 Recognized prior service cost 9.1 4.6 Recognized net actuarial gain (8.3 ) (3.5 ) Prior service credit arising in current year (29.8 ) (3.1 ) Net actuarial loss (gain) arising in current year 34.7 76.5 Ending balance $ 112.5 $ 106.8 Components of Balance: Prior service credit $ (25.0 ) $ (34.2 ) Net actuarial loss 137.5 140.9 Transitional obligation — 0.1 $ 112.5 $ 106.8 Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2016 are as follows: (In millions) Amortization of prior service credit $ (4.0 ) Amortization of actuarial loss 8.6 Total amortization expected $ 4.6 The following represents a reconciliation of the funded status of our pension plans from the beginning of fiscal 2014 to the end of fiscal 2015 : Pension Benefits Domestic Foreign Total (In millions) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation: Beginning balance $ 277.4 $ 224.9 $ 278.6 $ 242.9 $ 556.0 $ 467.8 Service cost 3.9 3.7 6.6 5.9 10.5 9.6 Interest cost 11.6 10.8 9.1 10.6 20.7 21.4 Actuarial (gain) loss (24.3 ) 45.3 4.0 52.1 (20.3 ) 97.4 Plan amendment — — — (0.1 ) — (0.1 ) Lump sum settlement (10.2 ) — — — (10.2 ) — Benefits paid from plan assets (7.3 ) (6.5 ) (7.5 ) (13.9 ) (14.8 ) (20.4 ) Benefits paid from Company assets (0.8 ) (0.8 ) — — (0.8 ) (0.8 ) Plan participants contributions — — 0.2 0.3 0.2 0.3 Foreign currency exchange rate changes — — (24.3 ) (19.2 ) (24.3 ) (19.2 ) Impact due to curtailment (0.5 ) — (0.7 ) — (1.2 ) — Special termination benefits 0.3 — — — 0.3 — Ending balance $ 250.1 $ 277.4 $ 266.0 $ 278.6 $ 516.1 $ 556.0 Change in plan assets at fair value: Beginning balance $ 229.5 $ 213.8 $ 232.2 $ 222.9 $ 461.7 $ 436.7 Actual return on plan assets (13.0 ) 13.9 4.6 31.1 (8.4 ) 45.0 Company contributions to plan assets 19.1 8.3 18.6 7.7 37.7 16.0 Benefits paid from plan assets (17.5 ) (6.5 ) (7.5 ) (13.9 ) (25.0 ) (20.4 ) Plan participants contributions — — 0.2 0.3 0.2 0.3 Foreign currency exchange rate changes — — (20.0 ) (15.9 ) (20.0 ) (15.9 ) Ending balance $ 218.1 $ 229.5 $ 228.1 $ 232.2 $ 446.2 $ 461.7 Reconciliation of funded status: Projected benefit obligation $ (250.1 ) $ (277.4 ) $ (266.0 ) $ (278.6 ) $ (516.1 ) $ (556.0 ) Plan assets at fair value 218.1 229.5 228.1 232.2 446.2 461.7 Funded status $ (32.0 ) $ (47.9 ) $ (37.9 ) $ (46.4 ) $ (69.9 ) $ (94.3 ) Included in the 2015 and 2014 funded status is accrued benefit cost of approximately $16.2 million and $16.8 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations. Noncurrent asset $ — $ — $ 0.3 $ 5.0 $ 0.3 $ 5.0 Current liability (0.9 ) (0.8 ) — — (0.9 ) (0.8 ) Noncurrent liability (31.1 ) (47.1 ) (38.2 ) (51.4 ) (69.3 ) (98.5 ) Funded status $ (32.0 ) $ (47.9 ) $ (37.9 ) $ (46.4 ) $ (69.9 ) $ (94.3 ) Weighted-average assumptions used for measurement of the projected benefit obligation: Discount rate 4.65 % 4.14 % 3.35 % 3.44 % 3.98 % 3.79 % Salary growth rate 4.60 % 4.60 % 3.08 % 3.12 % 3.75 % 3.79 % 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 1, 2016 , January 2, 2015 and January 3, 2014 : Pension Benefits Domestic Foreign Total (In millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Components of net periodic cost: Service cost $ 5.2 $ 4.8 $ 8.5 $ 6.6 $ 5.9 $ 6.7 $ 11.8 $ 10.7 $ 15.2 Interest cost 11.6 10.8 9.6 9.1 10.6 9.4 20.7 21.4 19.0 Expected return on plan assets (15.1 ) (13.9 ) (11.8 ) (10.5 ) (12.5 ) (10.5 ) (25.6 ) (26.4 ) (22.3 ) Net amortization 1.3 (2.2 ) 3.1 2.9 1.1 1.7 4.2 (1.1 ) 4.8 Net periodic cost (benefit) $ 3.0 $ (0.5 ) $ 9.4 $ 8.1 $ 5.1 $ 7.3 $ 11.1 $ 4.6 $ 16.7 Weighted-average assumption used to measure net periodic cost: Discount rate 4.14 % 4.81 % 3.93 % 3.44 % 4.49 % 4.23 % 3.79 % 4.64 % 4.08 % Expected return on plan assets 6.50 % 6.50 % 6.50 % 4.77 % 5.67 % 5.27 % 5.63 % 6.08 % 5.86 % Salary growth rate 4.60 % 4.63 % 3.90 % 3.12 % 3.27 % 3.13 % 3.79 % 4.04 % 3.62 % In connection with the disposition of the Fasteners business, we recognized a pension curtailment gain of $5.1 million related to the Anixter pension plan in the United States and special termination benefit costs of $0.3 million in 2015 in discontinued operations. 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 2015 , 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. The only pension assets valued by Level 3 inputs relate to the buy-in policy in connection with the Fasteners disposition. 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 1, 2016 and January 2, 2015 , which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by us are as follows: As of January 1, 2016 Domestic Foreign Total (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Categories: Cash and short-term investments $ 9.7 $ — $ — $ 9.7 $ 4.2 $ — $ — $ 4.2 $ 13.9 $ — $ — $ 13.9 Equity securities: Domestic 109.2 — — 109.2 — 53.7 — 53.7 109.2 53.7 — 162.9 International (a) 16.6 — — 16.6 — 44.6 — 44.6 16.6 44.6 — 61.2 Fixed income securities: Domestic — 2.9 — 2.9 — 41.1 — 41.1 — 44.0 — 44.0 Corporate bonds — 79.7 — 79.7 — 9.8 — 9.8 — 89.5 — 89.5 Insurance funds — — — — — 15.6 58.9 74.5 — 15.6 58.9 74.5 Other — — — — — 0.2 — 0.2 — 0.2 — 0.2 Total at January 1, 2016 $ 135.5 $ 82.6 $ — $ 218.1 $ 4.2 $ 165.0 $ 58.9 $ 228.1 $ 139.7 $ 247.6 $ 58.9 $ 446.2 (a) Investment in funds outside the country where the pension plan originates is considered International. As of January 2, 2015 Domestic Foreign Total (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Categories: Cash and short-term investments $ 8.1 $ — $ — $ 8.1 $ 1.2 $ — $ — $ 1.2 $ 9.3 $ — $ — $ 9.3 Equity securities: Domestic 116.0 — — 116.0 0.3 59.7 — 60.0 116.3 59.7 — 176.0 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 1.0 79.7 — 80.7 1.0 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 $ 85.0 $ — $ 229.5 $ 5.5 $ 226.7 $ — $ 232.2 $ 150.0 $ 311.7 $ — $ 461.7 (a) Investment in funds outside the country where the pension plan originates is considered International. Changes in our Level 3 plan assets, which are included in operations, for the year ended January 1, 2016 included: (In millions) January 2, 2015 Balance Net purchases, Issuances and Settlements January 1, 2016 Balance Asset Categories: Insurance funds $ — $ 58.9 $ 58.9 Total Level 3 investments $ — $ 58.9 $ 58.9 We had no level 3 assets in 2014. We estimated future benefits payments are as follows at the end of 2015 : Estimated Future Benefit Payments (In millions) Domestic Foreign Total 2016 $ 9.1 $ 6.3 $ 15.4 2017 9.9 7.0 16.9 2018 10.7 7.0 17.7 2019 11.5 7.0 18.5 2020 12.3 7.1 19.4 2021-2025 71.7 41.0 112.7 Total $ 125.2 $ 75.4 $ 200.6 The accumulated benefit obligation in 2015 and 2014 was $248.1 million and $275.2 million , respectively, for the Domestic Plans and $235.7 million and $241.4 million , respectively, for the Foreign Plans. We had ten plans in 2015 and 2014 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 $368.7 million and $398.9 million for 2015 and 2014 , respectively, and aggregate fair value of plan assets was $324.7 million and $334.9 million for 2015 and 2014 , respectively. We currently estimate that we will make contributions of approximately $9.9 million to our Domestic Plans and $7.2 million to our Foreign Plans in 2016 . 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. In the third quarter of 2015, Anixter Inc. amended the Anixter Inc. Pension Plan in the United States whereby employees first hired or rehired on or after July 1, 2015 are no longer eligible to participate in the Anixter Inc. Pension Plan. Anixter Inc. will make an annual contribution to the Employee Savings Plan on behalf of each active participant who is first hired or rehired on or after July 1, 2015, or is not participating in the Anixter Inc. Pension Plan. The amount of the employer annual contribution to each active participant's account will be an amount determined by multiplying the participant's salary for the Plan year by either: (1) 2% if such participant's years of service as of August 1 of the Plan year is fewer than five, or (2) 2.5% if such participant's years of service as of August 1 of the Plan year is five or greater. This contribution is in lieu of being eligible for the Anixter Inc. Pension Plan. 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 from continuing operations related to defined contribution plans was $9.3 million , $9.2 million and $8.5 million in 2015 , 2014 and 2013 , 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 1, 2016 and January 2, 2015 , the deferred compensation liability included in "Other liabilities" on the Consolidated Balance Sheets was $46.4 million and $45.7 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 1, 2016 and January 2, 2015 , the cash surrender value of $34.3 million and $35.5 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. 01, 2016 | |
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 2015 and 2014 . Common Stock We have the authority to issue 100.0 million shares of common stock, par value $1.00 per share, of which 33.3 million shares and 33.1 million shares were outstanding at the end of fiscal 2015 and 2014 , respectively. Share Repurchases We did not repurchase any shares during any of the periods presented in these Consolidated Financial Statements. 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. 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. 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 $1.1 million , $1.7 million and $1.5 million in 2015 , 2014 and 2013 , 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 1, 2016 , there were 1.7 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 $11.3 million , $10.2 million and $9.5 million in 2015 , 2014 and 2013 , 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 $2.0 million , $1.9 million and $1.9 million in 2015 , 2014 and 2013 , respectively. The total fair value of stock units that vested was $13.4 million , $11.7 million and $12.2 million in 2015 , 2014 and 2013 , respectively. The following table summarizes the activity under the director and employee stock unit plans: (units in thousands) Director Stock Units (a) Weighted Average Grant Date Value (b) Employee Stock Units (c) Weighted Average Grant Date Value (b) 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 93.26 126.8 106.90 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 Granted 32.2 63.99 217.0 75.53 Converted (7.7 ) 59.56 (157.6 ) 71.71 Canceled — — (28.4 ) 77.15 Outstanding balance at January 1, 2016 307.8 $ 52.53 436.1 $ 81.56 (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 2.2 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 2015 , 2014 and 2013 was $12.8 million , $21.0 million and $14.6 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 2015 , 2014 and 2013 was $44.9 million , $60.7 million and $67.7 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 2015 , 2014 and 2013 was $18.6 million , $25.0 million and $27.1 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 2015 and 2014. During 2013 , we granted stock options to employees with a grant-date fair market value of approximately $1.6 million . 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 grant was estimated at the date of the grant using the Black-Scholes option pricing model with the following assumptions and resulting value: Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2013 Grants 42.0 % 1.1 % — 6.13 years $ 28.57 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 2015 , 2014 and 2013 was $0.9 million , $1.3 million and $1.7 million , respectively. The total fair value of stock options that vested was $1.7 million , $1.7 million and $2.0 million in 2015 , 2014 and 2013 , respectively. The following table summarizes the activity under the employee option plans: (options in thousands) Employee Options Weighted Average Exercise Price Balance at December 28, 2012 749.0 $ 50.14 Adjusted (a) 39.4 47.91 Granted 56.0 68.64 Exercised (149.0 ) 54.17 Balance at January 3, 2014 695.4 47.93 Exercised (162.4 ) 44.40 Balance at January 2, 2015 533.0 49.00 Exercised — — Balance at January 1, 2016 533.0 $ 49.00 Options exercisable at year-end: 2013 (a) 486.1 $ 43.62 2014 405.6 $ 44.65 2015 472.5 $ 47.15 (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 2015 was 5.0 years . The weighted-average remaining contractual term for options exercisable for 2015 was 4.6 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. For 2015, there were no option exercises. The aggregate intrinsic value of options exercised for 2014 and 2013 was $7.9 million and $2.8 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 2015 , 2014 and 2013 was $19.6 million , $20.9 million and $29.0 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 2015 , 2014 and 2013 was $15.9 million , $17.7 million and $22.4 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 Balance at January 2, 2015 127.4 $ 25.84 Vested (66.9 ) $ 25.53 Balance at January 1, 2016 60.5 $ 26.18 (a) All unvested stock options are expected to vest. As of January 1, 2016 , there was $15.7 million and $0.5 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 1.1 years , respectively. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Jan. 01, 2016 | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We are a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products and utility power solutions. In the fourth quarter of 2015, in connection with the acquisition of Power Solutions as described in Note 3. "Business Combinations" , we renamed our legacy Enterprise Cabling and Security Solutions segment to Network & Security Solutions ("NSS"). The low voltage business of Power Solutions was combined into our historical Electrical and Electronic Wire and Cable segment to form the Electrical & Electronic Solutions ("EES") segment. The high voltage business of Power Solutions forms the Utility Power Solutions ("UPS") segment. Historical results reflecting the new business segments for previously reported periods are shown below. The categorization of net sales by end market is determined using a variety of data points including the technical characteristic 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. As discussed in Note 2. "Discontinued Operations" , beginning in the second quarter of 2015, the Fasteners segment has been classified as "discontinued operations" for all periods. 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. A portion of these corporate expenses are reported in the corporate segment as they historically had been allocated to the Fasteners segment but are not considered directly related to the discontinued operations. For 2015, Corporate includes $13.0 million of acquisition and integration costs. 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, except as previously discussed in Note 2. "Discontinued Operations." Intercompany transactions are not significant. No customer accounted for more than 2% of sales in 2015 . Segment Financial Information Segment information for 2015 , 2014 and 2013 was as follows: (In millions) 2015 NSS EES (a) UPS (a) Corporate (b) Total Net Sales $ 3,924.4 $ 1,930.2 $ 335.9 $ — $ 6,190.5 Operating income 189.4 92.5 10.4 (24.5 ) 267.8 Depreciation 13.7 7.0 1.1 0.4 22.2 Amortization of intangibles 14.7 6.3 3.9 — 24.9 Total assets 1,902.8 1,071.4 813.4 350.6 4,138.2 Capital expenditures 3.0 1.0 0.8 21.9 26.7 2014 NSS (c) EES UPS Corporate (b) Total Net Sales $ 3,481.2 $ 2,025.8 $ — $ — $ 5,507.0 Operating income 182.8 139.0 — (11.7 ) 310.1 Depreciation 12.5 7.5 — — 20.0 Amortization of intangibles 4.9 5.7 — — 10.6 Total assets 1,867.2 972.4 — 334.3 3,173.9 Capital expenditures 2.6 1.3 — 30.3 34.2 2013 NSS EES UPS Corporate (b) Total Net Sales $ 3,247.2 $ 2,043.9 $ — $ — $ 5,291.1 Operating income 167.1 155.2 — (11.4 ) 310.9 Depreciation 11.5 7.1 — — 18.6 Amortization of intangibles 0.8 5.9 — — 6.7 Total assets 1,220.0 938.3 — 279.1 2,437.4 Capital expenditures 2.1 1.0 — 24.2 27.3 (a) At the beginning of the fourth quarter of 2015, we acquired Power Solutions which is reported in both the EES and UPS business segments. For further information, see Note 3. "Business Combinations" . (b) Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. (c) At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the NSS business segments. For further information, see Note 3. "Business Combinations" . The items impacting operating income by segment in 2015 and 2014 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. Year Ended January 1, 2016 (In millions) NSS EES UPS Corporate Total Acquisition and integration costs $ — $ — $ (0.2 ) $ (13.0 ) $ (13.2 ) Latin America assets write-off (10.7 ) (1.0 ) — — (11.7 ) Restructuring charge (4.0 ) (4.0 ) (0.1 ) (0.1 ) (8.2 ) Write-off of capitalized software (1.9 ) (0.9 ) — (0.3 ) (3.1 ) Dilapidation provision (0.9 ) (0.8 ) — — (1.7 ) Pension divestiture costs (0.3 ) (0.1 ) — — (0.4 ) Total of items impacting operating income $ (17.8 ) $ (6.8 ) $ (0.3 ) $ (13.4 ) $ (38.3 ) Year Ended January 2, 2015 (In millions) NSS EES UPS Corporate Total Acquisition and integration costs $ (7.0 ) $ (0.2 ) $ — $ — $ (7.2 ) The categorization of net sales by end market is determined using a variety of data points including the technical characteristic 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 $4,137.9 million , $3,287.4 million and $3,140.3 million in 2015 , 2014 and 2013 , respectively. Canadian sales were $699.4 million , $770.3 million and $762.4 million in 2015 , 2014 and 2013 , respectively. No other individual foreign country’s net sales within Europe or the Emerging Markets (Asia Pacific and Latin America) were material in 2015 , 2014 and 2013 . Our tangible long-lived assets primarily consist of $110.2 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, total assets and property and equipment by geographic areas for the years ended January 1, 2016 , January 2, 2015 and January 3, 2014 : Years Ended (In millions) January 1, 2016 January 2, 2015 January 3, 2014 Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales North America $ 4,837.3 78.2 % $ 4,057.7 73.7 % $ 3,902.7 73.8 % Europe 601.9 9.7 % 648.5 11.8 % 623.2 11.8 % Emerging Markets 751.3 12.1 % 800.8 14.5 % 765.2 14.4 % Net sales $ 6,190.5 100.0 % $ 5,507.0 100.0 % $ 5,291.1 100.0 % (In millions) January 1, 2016 January 2, 2015 Total assets North America $ 3,371.2 $ 2,395.5 Europe 252.9 238.9 Emerging Markets 514.1 539.5 Total assets $ 4,138.2 $ 3,173.9 (In millions) January 1, 2016 January 2, 2015 Net property and equipment North America $ 115.7 $ 87.7 Europe 9.9 10.3 Emerging Markets 6.2 6.2 Net property and equipment $ 131.8 $ 104.2 Goodwill Assigned to Segments The following table presents the changes in goodwill allocated to our reporting units from January 3, 2014 to January 1, 2016 : (In millions) NSS EES UPS Total Balance as of January 3, 2014 $ 162.5 $ 179.6 $ — $ 342.1 Acquisition related (a) (b) 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 Acquisition related (c) (1.3 ) 34.7 155.3 188.7 Foreign currency translation (8.8 ) (1.7 ) (4.0 ) (14.5 ) Balance as of January 1, 2016 $ 393.3 $ 211.9 $ 151.3 $ 756.5 (a) 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. (b) 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 $2.2 million . The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. (c) At the beginning of the fourth quarter of 2015, we acquired the equity interest of certain subsidiaries of HD Supply, Inc. and certain assets that comprise Power Solutions in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). |
SUMMARIZED FINANCIAL INFORMATIO
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | 12 Months Ended |
Jan. 01, 2016 | |
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SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. Anixter International Inc. guarantees, 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 1, January 2, Assets: Current assets $ 2,723.4 $ 2,210.2 Current assets of discontinued operations 3.8 379.2 Property, equipment and capital leases, net 141.1 114.7 Goodwill 756.5 582.3 Intangible assets, net 453.8 202.7 Other assets 72.1 101.8 $ 4,150.7 $ 3,590.9 Liabilities and Stockholder’s Equity: Current liabilities $ 1,151.5 $ 921.3 Current liabilities of discontinued operations 5.3 108.8 Subordinated notes payable to parent — 1.5 Long-term debt 1,655.6 1,216.1 Other liabilities 161.1 212.4 Stockholder’s equity 1,177.2 1,130.8 $ 4,150.7 $ 3,590.9 ANIXTER INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended (In millions) January 1, January 2, January 3, Net sales $ 6,190.5 $ 5,507.0 $ 5,291.1 Operating income $ 273.8 $ 316.0 $ 316.8 Income from continuing operations before income taxes $ 187.9 $ 254.3 $ 265.3 Net income from discontinued operations $ 30.7 $ 31.4 $ 25.5 Net income $ 130.7 $ 197.7 $ 204.9 Comprehensive income $ 38.2 $ 86.3 $ 230.1 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Jan. 01, 2016 | |
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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 1, 2016 and January 2, 2015 . On June 1, 2015, we closed the sale of the Fasteners business, as described in Note 2. "Discontinued Operations" . The operating results of the Fasteners business for fiscal year 2015 are presented as "discontinued operations" in our Consolidated Financial Statements. Accordingly, the quarterly periods in fiscal year 2014 have been revised to reflect this classification. 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, 2016 , we had 1,830 shareholders of record. (In millions, except per share amounts) First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) Year ended January 1, 2016 Net sales $ 1,385.1 $ 1,480.4 $ 1,489.2 $ 1,835.8 Cost of goods sold 1,075.8 1,151.5 1,158.3 1,464.4 Operating income 59.3 64.5 78.2 65.8 Income from continuing operations before income taxes 41.1 48.3 56.9 36.6 Net income from continuing operations 26.5 29.5 35.4 5.5 Net (loss) income from discontinued operations (7.4 ) 41.9 (2.9 ) (0.9 ) Net income $ 19.1 $ 71.4 $ 32.5 $ 4.6 Income (loss) per share: Basic: Continuing operations $ 0.80 $ 0.89 $ 1.06 $ 0.17 Discontinued operations $ (0.22 ) $ 1.26 $ (0.09 ) $ (0.03 ) Net income $ 0.58 $ 2.15 $ 0.97 $ 0.14 Diluted: Continuing operations $ 0.79 $ 0.88 $ 1.06 $ 0.17 Discontinued operations $ (0.22 ) $ 1.26 $ (0.09 ) $ (0.03 ) Net income $ 0.57 $ 2.14 $ 0.97 $ 0.14 Common stock price (NYSE symbol: AXE): High $ 88.11 $ 78.68 $ 69.15 $ 70.29 Low $ 73.34 $ 63.91 $ 55.71 $ 57.74 Close $ 76.75 $ 64.16 $ 57.73 $ 60.39 (a) In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million , ( $0.4 million , net of tax). (b) In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. (c) In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations" . (d) In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations" . "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt" . (In millions, except per share amounts) First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) Year ended January 2, 2015 (As Adjusted, See Note 2) Net sales $ 1,274.3 $ 1,342.9 $ 1,438.0 $ 1,451.8 Cost of goods sold 982.5 1,039.6 1,115.3 1,130.3 Operating income 70.0 77.2 82.5 80.4 Income from continuing operations before income taxes 50.2 66.3 70.2 62.9 Net income from continuing operations 37.7 44.5 45.4 35.8 Net income from discontinued operations 9.7 9.3 7.1 5.3 Net income $ 47.4 $ 53.8 $ 52.5 $ 41.1 Income per share: Basic: Continuing operations $ 1.15 $ 1.35 $ 1.37 $ 1.08 Discontinued operations $ 0.29 $ 0.28 $ 0.22 $ 0.16 Net income $ 1.44 $ 1.63 $ 1.59 $ 1.24 Diluted: Continuing operations $ 1.13 $ 1.33 $ 1.36 $ 1.07 Discontinued operations $ 0.30 $ 0.28 $ 0.21 $ 0.16 Net income $ 1.43 $ 1.61 $ 1.57 $ 1.23 Common stock price (NYSE symbol: AXE): High $ 115.84 $ 105.33 $ 103.47 $ 89.95 Low $ 84.55 $ 92.79 $ 82.40 $ 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 from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations" . 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 $0.5 million related to integration costs and $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 3. "Business Combinations" . |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT ANIXTER INTERNATIONAL INC. (PARENT COMPANY) | 12 Months Ended |
Jan. 01, 2016 | |
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CONDENSED FINANCIAL INFORMATION OF REGISTRANT ANIXTER INTERNATIONAL INC. (PARENT COMPANY) | STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended (In millions) January 1, January 2, January 3, Operating loss $ (4.8 ) $ (4.4 ) $ (4.3 ) Other income: Interest income, including intercompany 5.0 4.8 2.1 Income (loss) before income taxes and equity in earnings of subsidiaries 0.2 0.4 (2.2 ) Income tax expense (benefit) 0.2 0.1 (0.8 ) Income (loss) before equity in earnings of subsidiaries — 0.3 (1.4 ) Equity in earnings of subsidiaries 127.6 194.5 201.9 Net income $ 127.6 $ 194.8 $ 200.5 Comprehensive income $ 35.1 $ 83.4 $ 225.7 See accompanying note to the condensed financial information of registrant. BALANCE SHEETS (In millions) January 1, January 2, ASSETS Current assets: Cash and cash equivalents $ 0.1 $ — Other assets 0.6 0.5 Total current assets 0.7 0.5 Other assets (primarily investment in and advances to subsidiaries) 1,181.8 1,137.0 $ 1,182.5 $ 1,137.5 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Accounts payable and accrued expenses, due currently $ 0.7 $ 1.5 Other non-current liabilities 2.4 3.0 Total liabilities 3.1 4.5 Stockholders’ equity: Common stock 33.3 33.1 Capital surplus 249.2 238.2 Retained earnings 1,127.4 999.7 Accumulated other comprehensive loss (230.5 ) (138.0 ) Total stockholders’ equity 1,179.4 1,133.0 $ 1,182.5 $ 1,137.5 See accompanying note to the condensed financial information of registrant. STATEMENTS OF CASH FLOWS Years Ended January 1, January 2, January 3, (In millions) Operating activities: Net income $ 127.6 $ 194.8 $ 200.5 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Equity in earnings of subsidiaries (127.6 ) (194.5 ) (201.9 ) Dividend from subsidiary 6.9 2.4 491.7 Stock-based compensation 2.0 1.9 1.9 Income tax expense (benefit) 0.2 0.1 (0.8 ) Intercompany transactions (9.3 ) (9.8 ) (11.5 ) Accretion of debt discount — — 2.2 Amortization of deferred financing costs — — 0.1 Changes in assets and liabilities, net (0.1 ) — 0.3 Net cash (used in) provided by operating activities (0.3 ) (5.1 ) 482.5 Investing activities — — — Financing activities: Proceeds from stock options exercised — 7.2 8.1 Loans from (to) subsidiaries, net 1.5 (0.5 ) (6.0 ) Retirement of Notes due 2013 — — (300.0 ) Payment of special cash dividend — — (165.7 ) Payments for repurchase of warrants — — (19.2 ) Other, net (1.1 ) (1.7 ) — Net cash provided by (used in) financing activities 0.4 5.0 (482.8 ) Increase (decrease) in cash and cash equivalents 0.1 (0.1 ) (0.3 ) Cash and cash equivalents at beginning of year — 0.1 0.4 Cash and cash equivalents at end of year $ 0.1 $ — $ 0.1 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 ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES | ANIXTER INTERNATIONAL INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years ended January 1, 2016 , January 2, 2015 and January 3, 2014 (In millions) Balance at beginning of the period Charged to income Charged to other accounts Deductions Balance at end of the period Description Year ended January 1, 2016: Allowance for doubtful accounts $ 27.0 $ 25.8 $ (5.1 ) $ (10.2 ) $ 37.5 Allowance for deferred tax asset $ 11.9 $ 12.9 $ (0.8 ) $ — $ 24.0 Year ended January 2, 2015: Allowance for doubtful accounts $ 16.3 $ 11.4 $ 12.2 $ (12.9 ) $ 27.0 Allowance for deferred tax asset $ 21.9 $ (9.2 ) $ (0.8 ) $ — $ 11.9 Year ended January 3, 2014: Allowance for doubtful accounts $ 20.1 $ 10.2 $ (2.1 ) $ (11.9 ) $ 16.3 Allowance for deferred tax asset $ 22.2 $ 0.3 $ (0.6 ) $ — $ 21.9 |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Jan. 01, 2016 | |
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 and utility power solutions through Anixter Inc. and its subsidiaries. On October 5, 2015, we completed the acquisition of the Power Solutions business ("Power Solutions") from HD Supply, Inc. in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). The acquisition was financed using borrowings under new financing arrangements as described in Note 6. "Debt" and cash on hand. |
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 2015 and 2014 and 53 weeks in 2013. Certain prior period amounts have been reclassified to conform to the current year presentation. In 2015, we sold the OEM Supply - Fasteners ("Fasteners") business, as described in Note 2. "Discontinued Operations" . The assets and liabilities and operating results of the Fasteners business are presented as "discontinued operations" in our Consolidated Financial Statements, and all prior periods have been revised to reflect this classification. In the fourth quarter of 2015, in connection with the acquisition of Power Solutions, we renamed our legacy Enterprise Cabling and Security Solutions segment to Network & Security Solutions ("NSS"). The low voltage business of Power Solutions was combined into our historical Electrical and Electronic Wire and Cable ("W&C") segment to form the Electrical & Electronic Solutions ("EES") segment. The high voltage business of Power Solutions forms the Utility Power Solutions ("UPS") segment. |
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 $37.5 million and $27.0 million at the end of 2015 and 2014 , respectively. 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 $25.8 million , $11.4 million and $10.2 million in 2015 , 2014 and 2013 , 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 1, 2016 and January 2, 2015 , we reported inventory of $1,182.6 million and $859.0 million , respectively (net of inventory reserves of $42.4 million and $34.7 million , respectively). The acquisition of Power Solutions contributed to the increase in the 2015 inventory and associated reserve compared to 2014. 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 | Property and equipment: At January 1, 2016 , net property and equipment consisted of $90.4 million of equipment and computer software, $40.6 million of buildings and leasehold improvements and $0.8 million of land. At January 2, 2015 , net property and equipment consisted of $75.9 million of equipment and computer software and $28.3 million of buildings and leasehold improvements. 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. Buildings are recorded at cost and depreciated by applying the straight-line method over their estimated useful lives, which range from 7 to 39 years. Leasehold improvements are depreciated over the useful life or over the term of the related lease, whichever is shorter. 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 continuing operations, including an immaterial amount of capital lease depreciation, was $22.2 million , $20.0 million and $18.6 million in 2015 , 2014 and 2013 , respectively. 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, 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, and these charges are reflected in our operating results. In order to measure an impairment loss of property and equipment, we estimate 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 include 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 are 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. 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 1, 2016 and January 2, 2015 , capitalized costs, net of accumulated amortization, for software developed for internal use were approximately $49.5 million and $44.1 million , respectively. Amortization expense charged to continuing operations for capitalized costs was $2.8 million , $2.5 million and $2.4 million in 2015 , 2014 and 2013 , 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 2015 , 2014 and 2013 were $1.2 million , $0.8 million and $0.6 million , respectively. |
Goodwill | Goodwill: We evaluate goodwill for impairment annually in the third quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. We assess goodwill for impairment by first performing a qualitative assessment, which 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. 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. From time to time, we may also bypass the qualitative assessment and proceed directly to 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 below. 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. In connection with our third quarter of 2015 annual assessment, we bypassed the qualitative assessment and 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. As a result of this assessment, we concluded that no impairment existed and the carrying amount of goodwill to be fully recoverable. 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. |
Intangible assets | Intangible assets: As of January 1, 2016 and January 2, 2015 , our intangible asset balances are as follows: January 1, 2016 January 2, 2015 (In millions) Average useful life (in years) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships 6-20 $ 461.4 $ (48.4 ) $ 184.8 $ (29.0 ) Exclusive supplier agreement 21 22.0 (1.6 ) 22.9 (0.3 ) Trade names 3-10 13.3 (5.8 ) 14.1 (3.4 ) Trade names Indefinite 10.6 — 10.6 — Non-compete agreements 1-5 4.5 (2.2 ) 3.9 (0.9 ) Total $ 511.8 $ (58.0 ) $ 236.3 $ (33.6 ) 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. Our definite-lived intangible assets are primarily related to customer relationships. The acquisition of Power Solutions contributed to the increase in the 2015 customer relationships compared to 2014. In order to measure an 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 include 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. Intangible amortization expense is expected to average $33.9 million per year for the next five years, of which $16.7 million and $12.7 million relate to intangible assets recorded for the Power Solutions and Tri-Ed acquisitions, respectively. See Note 3. "Business Combinations" 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 2015 , 2014 and 2013 : (In millions) Years Ended January 1, January 2, January 3, Other, net: Foreign exchange $ (14.9 ) $ (8.2 ) $ (6.3 ) Foreign exchange devaluations (3.6 ) (8.0 ) (1.1 ) Cash surrender value of life insurance policies (0.8 ) 0.8 0.2 Other (1.8 ) (0.6 ) (1.7 ) Total other, net $ (21.1 ) $ (16.0 ) $ (8.9 ) In the fourth quarter of 2015, the Argentine peso was devalued by approximately 40% against the U.S. Dollar ("USD") due to the loosening of currency controls. In the first quarter of 2015, the Venezuelan government changed its policy regarding the bolivar, which we believe will now require us to use the Sistema Marginal de Divisas or Marginal Exchange System ("SIMADI") a "completely free floating" rate. As a result, we believe that the current rate of approximately 200.0 bolivars to one USD will be the rate available to us in the event we repatriate cash from Venezuela. As a result of these devaluations, we recorded a foreign exchange loss of $3.6 million in 2015. 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 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 4.3 bolivars to one USD to 6.3 bolivars to one USD. As a result of the devaluation, through the end of fiscal 2013, we believed that the official rate of 6.3 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 USD against certain foreign currencies, primarily in our Europe and Latin America regions, we recorded additional foreign exchange losses of $14.9 million in 2015 , $8.2 million in 2014 and $6.3 million in 2013 . 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 1, 2016 and January 2, 2015 , 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 1, 2016 and January 2, 2015 , the gross notional amount of the foreign currency forward contracts outstanding was approximately $196.1 million and $222.9 million , respectively. At January 1, 2016 and January 2, 2015 , the net notional amount of the foreign currency forward contracts outstanding was approximately $132.8 million and $121.9 million , respectively. While all of our foreign currency forward contracts are subject to master netting arrangements with our counterparties, we present our assets and liabilities related to derivative instruments on a gross basis within the Consolidated Balance Sheets. The gross fair value of our derivative assets and liabilities are immaterial. 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 company 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 | 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" . Fair value disclosures of debt are discussed in Note 6. "Debt" . 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. The fair value measurements of goodwill, intangible assets and property and equipment are discussed above. 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 $29.1 million and $23.7 million at January 1, 2016 and January 2, 2015 , 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 instances 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 $13.2 million , $12.6 million and $12.4 million in 2015 , 2014 and 2013 , 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 $102.7 million , $99.5 million and $99.6 million in 2015 , 2014 and 2013 , respectively. |
Stock-based compensation | Stock-based compensation: In accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), we measure the cost of all 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 2015 , 2014 and 2013 , we had 0.2 million , 0.3 million and 0.3 million , respectively, 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 2015 , 2014 and 2013 , the antidilutive stock options and units were immaterial. As discussed in Note 6. "Debt" , the Senior notes due 2013 ("Notes due 2013") have been retired; however, they were dilutive in 2013. Specifically, as a result of our average stock price exceeding the average accreted value during 2013, we included 0.1 million additional shares 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 November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-17, Balance Sheet Classification of Deferred Taxes , which requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in the balance sheet. The ASU simplifies the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current and noncurrent in the balance sheet. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We adopted this guidance prospectively in the fourth quarter of fiscal year 2015. We reclassified approximately $28.0 million of current deferred tax assets to other assets (non-current) in the balance sheet as of January 1, 2016 . In September 2015, the FASB issued ASU 2015-16, Business Combinations: Simplifying the Accounting for Measurement-Period Adjustments , which eliminates the requirement to retroactively account for measurement-period adjustments to provisional amounts recognized in a business combination. Under the new guidance, the measurement-period adjustments must be recognized in the period in which adjustments are determined, including the effect on earnings of any amounts that would have been recorded in previous periods. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. We adopted this guidance in the third quarter of fiscal year 2015. The adoption did not have a material impact on our results of operations, cash flows or financial position. In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory . The core principle of the guidance is that an entity should measure inventory at the "lower of cost and net realizable value" and options that currently exist for "market value" will be eliminated. The ASU defines net realizable value as the "estimated selling prices in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation." The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We adopted this guidance in the fourth quarter of fiscal year 2015. The adoption did not have a material impact on our results of operations, cash flows or financial position. In April 2015, the FASB issued ASU 2015-04, Compensation-Retirement Benefits (Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets) , which permits a reporting entity with a fiscal year-end that does not coincide with a month-end to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. The new guidance should be applied on a prospective basis. We adopted this guidance in the fourth quarter of fiscal year 2015. The adoption did not have a material impact on our results of operations, cash flows or financial position. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs , which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The Securities and Exchange Commission ("SEC") staff noted that ASU 2015-03 does not address when a company has debt issuance costs related to lines-of-credit arrangements, which may not have an outstanding balance. As a result, in June 2015, the FASB issued ASU 2015-15, Interest - Imputation of Interest, which states that the SEC staff will not object to an entity presenting debt issuance costs related to lines-of-credit arrangements as an asset. These new updates are effective for our financial statements in fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been previously issued. The new guidance will be applied on a retrospective basis. We adopted this guidance in the fourth quarter of fiscal year 2015. We reclassified $10.2 million and $5.7 million as of January 1, 2016 and January 2, 2015, respectively, from other assets (non-current) to long-term debt in the balance sheet. In August 2014, the FASB issued ASU 2014-15, Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. The core principle of the guidance is that an entity’s management should evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are available to be issued. When management identifies conditions or events that raise substantial doubt about an entity’s ability to continue as a going concern, management should consider whether its plans that are intended to mitigate those relevant conditions or events that will alleviate the substantial doubt are adequately disclosed in the notes to the financial statements. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We adopted this guidance in the fourth quarter of fiscal year 2015. The adoption did not require additional disclosures within these financial statements. In April 2014, the FASB issued ASU 2014-8, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. This update changes the criteria for determining which disposals can be presented as discontinued operations and modifies related disclosure requirements. Under the new guidance, a discontinued operation is defined as a disposal of a component or group of components that is disposed of or is classified as held for sale and represents a strategic shift that has a major effect on an entity's operations and financial results. The guidance is effective for entities with annual periods beginning on or after December 15, 2014. This accounting guidance applies prospectively to new disposals and new classifications of disposal groups held for sale. We adopted this guidance in the first quarter of fiscal year 2015. See Note 2. "Discontinued Operations" for applicable disclosures. |
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. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date , as a revision to ASU 2014-09, which revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e. the original adoption date per ASU 2014-09). We are currently evaluating the transition methods and the impact of adoption of this ASU on our consolidated 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 ACCOUN25
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class | As of January 1, 2016 and January 2, 2015 , our intangible asset balances are as follows: January 1, 2016 January 2, 2015 (In millions) Average useful life (in years) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships 6-20 $ 461.4 $ (48.4 ) $ 184.8 $ (29.0 ) Exclusive supplier agreement 21 22.0 (1.6 ) 22.9 (0.3 ) Trade names 3-10 13.3 (5.8 ) 14.1 (3.4 ) Trade names Indefinite 10.6 — 10.6 — Non-compete agreements 1-5 4.5 (2.2 ) 3.9 (0.9 ) Total $ 511.8 $ (58.0 ) $ 236.3 $ (33.6 ) |
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 2015 , 2014 and 2013 : (In millions) Years Ended January 1, January 2, January 3, Other, net: Foreign exchange $ (14.9 ) $ (8.2 ) $ (6.3 ) Foreign exchange devaluations (3.6 ) (8.0 ) (1.1 ) Cash surrender value of life insurance policies (0.8 ) 0.8 0.2 Other (1.8 ) (0.6 ) (1.7 ) Total other, net $ (21.1 ) $ (16.0 ) $ (8.9 ) |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
Accrued Expenses | Accrued expenses consisted of the following: January 1, January 2, (In millions) Salaries and fringe benefits $ 87.5 $ 77.4 Other accrued expenses 157.8 105.8 Total accrued expenses $ 245.3 $ 183.2 |
DISCONTINUED OPERATIONS DISCO27
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations, Income Statement [Table Text Block] | Years Ended (In millions) January 1, January 2, January 3, Net sales $ 405.9 $ 938.5 $ 935.5 Operating income $ 14.2 $ 50.8 $ 43.9 Income from discontinued operations before income taxes $ 11.9 $ 45.2 $ 38.1 Gain on sale of discontinued operations $ 41.0 $ — $ — Income tax expense from discontinued operations $ 22.2 $ 13.8 $ 12.6 Net income from discontinued operations $ 30.7 $ 31.4 $ 25.5 |
Disposal Group, Including Discontinued operations, Balance Sheet [Table Text Block] | As reflected on our Consolidated Balance Sheets as of January 1, 2016 and January 2, 2015, the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows: (In millions) January 1, January 2, Assets of discontinued operations: Accounts receivable $ 2.6 $ 158.2 Inventories 1.2 213.8 Other current assets — 7.2 Net property and equipment — 16.8 Other assets — 10.9 Total assets of discontinued operations $ 3.8 $ 406.9 Liabilities of discontinued operations: Accounts payable $ 1.3 $ 92.8 Accrued expenses 4.0 16.0 Other liabilities 1.7 0.2 Total liabilities of discontinued operations $ 7.0 $ 109.0 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Business Acquisition [Line Items] | |
Acquisition pro forma information | Years Ended (In millions, except per share amounts) January 1, 2016 January 2, 2015 January 3, 2014 Net sales $ 7,733.4 $ 7,831.0 $ 5,863.2 Net income from continuing operations $ 107.1 $ 180.5 $ 178.3 Income per share from continuing operations: Basic $ 3.22 $ 5.46 $ 5.44 Diluted $ 3.20 $ 5.41 $ 5.37 |
Power Solutions [Member] | |
Business Acquisition [Line Items] | |
Purchase price allocation | (In millions) Cash $ 11.7 Current assets, net 564.6 Property, plant and equipment 25.0 Goodwill 190.0 Intangible assets 283.9 Non-current assets 5.4 Current liabilities (231.6 ) Non-current liabilities (8.8 ) Total purchase price $ 840.2 |
Intangible assets acquired | (In millions) Average useful life (in years) Fair value Customer relationships 14-18 $ 281.5 Non-compete agreements 1 2.4 Total intangible assets $ 283.9 |
Tri-Ed [Member] | |
Business Acquisition [Line Items] | |
Purchase price allocation | (In millions) Cash $ 11.6 Current assets, net 203.9 Property, plant and equipment 2.7 Goodwill 242.2 Intangible assets 166.8 Current liabilities (143.3 ) Non-current liabilities (56.1 ) Total purchase price $ 427.8 |
Intangible assets acquired | (In millions) Average useful life (in years) Fair value Customer relationships 11-18 $ 120.6 Exclusive supplier agreement 21 23.2 Trade names Indefinite 10.6 Tri-Ed trade names 4 9.2 Non-compete agreements 4-5 3.2 Total intangible assets $ 166.8 |
RESTRUCTURING CHARGE (Tables)
RESTRUCTURING CHARGE (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Liabilities Associated with Restructuring and Employee Severance |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
Debt | Debt is summarized below: (In millions) January 1, January 2, Long-term debt: 5.50% Senior notes due 2023 $ 345.8 $ — 5.125% Senior notes due 2021 394.9 394.2 5.625% Senior notes due 2019 346.8 345.9 Canadian term loan 172.9 — Revolving lines of credit 390.1 — Term loan — 198.8 Accounts receivable securitization facility — 65.0 5.95% Senior notes due 2015 — 200.0 Other 2.6 3.8 Unamortized debt issuance costs (10.2 ) (5.7 ) Total long-term debt $ 1,642.9 $ 1,202.0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
Minimum Lease Commitments Under Operating Leases | Minimum lease commitments under operating leases at January 1, 2016 are as follows: (In millions) 2016 $ 71.4 2017 57.6 2018 48.3 2019 34.6 2020 25.6 2021 and thereafter 58.4 Total $ 295.9 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Income Tax Expense (Benefit) | Income tax expense was comprised of: (In millions) Years Ended January 1, January 2, January 3, Current: Foreign $ 14.1 $ 22.6 $ 26.5 State 7.2 4.7 4.5 Federal 58.8 33.2 29.8 80.1 60.5 60.8 Deferred: Foreign 7.1 (1.0 ) 1.6 State (0.7 ) 3.3 2.5 Federal (0.5 ) 23.4 18.2 5.9 25.7 22.3 Income tax expense $ 86.0 $ 86.2 $ 83.1 |
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 1, January 2, January 3, Statutory tax expense $ 64.0 $ 87.4 $ 90.3 Increase (reduction) in taxes resulting from: State income taxes, net 4.7 5.4 4.8 Foreign tax effects 6.3 1.2 (7.6 ) Change in valuation allowance 9.3 (9.2 ) 0.3 Other, net 1.7 1.4 (4.7 ) Income tax expense $ 86.0 $ 86.2 $ 83.1 |
Components of Deferred Tax Assets and Liabilities | Deferred Income Taxes : Significant components of our deferred tax assets (liabilities) were as follows: (In millions) January 1, January 2, Deferred compensation and other postretirement benefits 36.0 41.2 Foreign NOL carryforwards and other 24.8 28.2 Accrued expenses and other 10.4 4.7 Inventory reserves 7.7 14.6 Unrealized foreign exchange 5.8 — Allowance for doubtful accounts 10.2 7.7 Gross deferred tax assets 94.9 96.4 Property, equipment, intangibles and other (83.7 ) (84.8 ) Gross deferred tax liabilities (83.7 ) (84.8 ) Deferred tax assets, net of deferred tax liabilities 11.2 11.6 Valuation allowance (24.0 ) (11.9 ) Net deferred tax liabilities $ (12.8 ) $ (0.3 ) |
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 2013 , 2014 and 2015 is as follows: (In millions) 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 $ 3.0 Additions for tax positions of prior years 0.4 Addition for Power Solutions acquisition 2.2 Reductions for tax positions of prior years (0.3 ) Balance at January 1, 2016 $ 5.3 |
PENSION PLANS, POST-RETIREMEN33
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
Weighted Average Percentage of Actual and Target Asset Allocation | The Domestic Plans’ and Foreign Plans’ asset mixes as of January 1, 2016 and January 2, 2015 and our asset allocation guidelines for such plans are summarized as follows. Domestic Plans January 1, January 3, 2014 Allocation Guidelines Min Target Max Large capitalization U.S. stocks 23.0 % 22.8 % 17 % 22 % 27 % Small to mid capitalization U.S. stocks 27.1 27.7 20 30 40 Emerging market equity 7.6 8.9 5 10 15 Total equity securities 57.7 59.4 62 Fixed income investments 37.9 37.1 31 38 45 Cash equivalents 4.4 3.5 — — 10 100.0 % 100.0 % 100 % Foreign Plans January 1, Allocation Guidelines Target Equity securities 43 % 44 % Fixed income investments 22 22 Other investments 35 34 100 % 100 % Foreign Plans January 2, Allocation Guidelines Target Equity securities 46 % 48 % Fixed income investments 47 45 Other investments 7 7 100 % 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 1, January 2, Changes to Balance: Beginning balance $ 106.8 $ 32.3 Recognized prior service cost 9.1 4.6 Recognized net actuarial gain (8.3 ) (3.5 ) Prior service credit arising in current year (29.8 ) (3.1 ) Net actuarial loss (gain) arising in current year 34.7 76.5 Ending balance $ 112.5 $ 106.8 |
Accumulated Other Comprehensive Income for Benefit Plans | Components of Balance: Prior service credit $ (25.0 ) $ (34.2 ) Net actuarial loss 137.5 140.9 Transitional obligation — 0.1 $ 112.5 $ 106.8 |
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 2016 are as follows: (In millions) Amortization of prior service credit $ (4.0 ) Amortization of actuarial loss 8.6 Total amortization expected $ 4.6 |
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 2014 to the end of fiscal 2015 : Pension Benefits Domestic Foreign Total (In millions) 2015 2014 2015 2014 2015 2014 Change in projected benefit obligation: Beginning balance $ 277.4 $ 224.9 $ 278.6 $ 242.9 $ 556.0 $ 467.8 Service cost 3.9 3.7 6.6 5.9 10.5 9.6 Interest cost 11.6 10.8 9.1 10.6 20.7 21.4 Actuarial (gain) loss (24.3 ) 45.3 4.0 52.1 (20.3 ) 97.4 Plan amendment — — — (0.1 ) — (0.1 ) Lump sum settlement (10.2 ) — — — (10.2 ) — Benefits paid from plan assets (7.3 ) (6.5 ) (7.5 ) (13.9 ) (14.8 ) (20.4 ) Benefits paid from Company assets (0.8 ) (0.8 ) — — (0.8 ) (0.8 ) Plan participants contributions — — 0.2 0.3 0.2 0.3 Foreign currency exchange rate changes — — (24.3 ) (19.2 ) (24.3 ) (19.2 ) Impact due to curtailment (0.5 ) — (0.7 ) — (1.2 ) — Special termination benefits 0.3 — — — 0.3 — Ending balance $ 250.1 $ 277.4 $ 266.0 $ 278.6 $ 516.1 $ 556.0 Change in plan assets at fair value: Beginning balance $ 229.5 $ 213.8 $ 232.2 $ 222.9 $ 461.7 $ 436.7 Actual return on plan assets (13.0 ) 13.9 4.6 31.1 (8.4 ) 45.0 Company contributions to plan assets 19.1 8.3 18.6 7.7 37.7 16.0 Benefits paid from plan assets (17.5 ) (6.5 ) (7.5 ) (13.9 ) (25.0 ) (20.4 ) Plan participants contributions — — 0.2 0.3 0.2 0.3 Foreign currency exchange rate changes — — (20.0 ) (15.9 ) (20.0 ) (15.9 ) Ending balance $ 218.1 $ 229.5 $ 228.1 $ 232.2 $ 446.2 $ 461.7 Reconciliation of funded status: Projected benefit obligation $ (250.1 ) $ (277.4 ) $ (266.0 ) $ (278.6 ) $ (516.1 ) $ (556.0 ) Plan assets at fair value 218.1 229.5 228.1 232.2 446.2 461.7 Funded status $ (32.0 ) $ (47.9 ) $ (37.9 ) $ (46.4 ) $ (69.9 ) $ (94.3 ) Included in the 2015 and 2014 funded status is accrued benefit cost of approximately $16.2 million and $16.8 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations. Noncurrent asset $ — $ — $ 0.3 $ 5.0 $ 0.3 $ 5.0 Current liability (0.9 ) (0.8 ) — — (0.9 ) (0.8 ) Noncurrent liability (31.1 ) (47.1 ) (38.2 ) (51.4 ) (69.3 ) (98.5 ) Funded status $ (32.0 ) $ (47.9 ) $ (37.9 ) $ (46.4 ) $ (69.9 ) $ (94.3 ) Weighted-average assumptions used for measurement of the projected benefit obligation: Discount rate 4.65 % 4.14 % 3.35 % 3.44 % 3.98 % 3.79 % Salary growth rate 4.60 % 4.60 % 3.08 % 3.12 % 3.75 % 3.79 % |
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 1, 2016 , January 2, 2015 and January 3, 2014 : Pension Benefits Domestic Foreign Total (In millions) 2015 2014 2013 2015 2014 2013 2015 2014 2013 Components of net periodic cost: Service cost $ 5.2 $ 4.8 $ 8.5 $ 6.6 $ 5.9 $ 6.7 $ 11.8 $ 10.7 $ 15.2 Interest cost 11.6 10.8 9.6 9.1 10.6 9.4 20.7 21.4 19.0 Expected return on plan assets (15.1 ) (13.9 ) (11.8 ) (10.5 ) (12.5 ) (10.5 ) (25.6 ) (26.4 ) (22.3 ) Net amortization 1.3 (2.2 ) 3.1 2.9 1.1 1.7 4.2 (1.1 ) 4.8 Net periodic cost (benefit) $ 3.0 $ (0.5 ) $ 9.4 $ 8.1 $ 5.1 $ 7.3 $ 11.1 $ 4.6 $ 16.7 |
Weighted-average Assumption Used to Measure Net Periodic Cost | Weighted-average assumption used to measure net periodic cost: Discount rate 4.14 % 4.81 % 3.93 % 3.44 % 4.49 % 4.23 % 3.79 % 4.64 % 4.08 % Expected return on plan assets 6.50 % 6.50 % 6.50 % 4.77 % 5.67 % 5.27 % 5.63 % 6.08 % 5.86 % Salary growth rate 4.60 % 4.63 % 3.90 % 3.12 % 3.27 % 3.13 % 3.79 % 4.04 % 3.62 % |
Assets Measured at Fair Value on Recurring Basis | Disclosures concerning assets measured at fair value on a recurring basis at January 1, 2016 and January 2, 2015 , which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by us are as follows: As of January 1, 2016 Domestic Foreign Total (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Categories: Cash and short-term investments $ 9.7 $ — $ — $ 9.7 $ 4.2 $ — $ — $ 4.2 $ 13.9 $ — $ — $ 13.9 Equity securities: Domestic 109.2 — — 109.2 — 53.7 — 53.7 109.2 53.7 — 162.9 International (a) 16.6 — — 16.6 — 44.6 — 44.6 16.6 44.6 — 61.2 Fixed income securities: Domestic — 2.9 — 2.9 — 41.1 — 41.1 — 44.0 — 44.0 Corporate bonds — 79.7 — 79.7 — 9.8 — 9.8 — 89.5 — 89.5 Insurance funds — — — — — 15.6 58.9 74.5 — 15.6 58.9 74.5 Other — — — — — 0.2 — 0.2 — 0.2 — 0.2 Total at January 1, 2016 $ 135.5 $ 82.6 $ — $ 218.1 $ 4.2 $ 165.0 $ 58.9 $ 228.1 $ 139.7 $ 247.6 $ 58.9 $ 446.2 (a) Investment in funds outside the country where the pension plan originates is considered International. As of January 2, 2015 Domestic Foreign Total (In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Asset Categories: Cash and short-term investments $ 8.1 $ — $ — $ 8.1 $ 1.2 $ — $ — $ 1.2 $ 9.3 $ — $ — $ 9.3 Equity securities: Domestic 116.0 — — 116.0 0.3 59.7 — 60.0 116.3 59.7 — 176.0 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 1.0 79.7 — 80.7 1.0 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 $ 85.0 $ — $ 229.5 $ 5.5 $ 226.7 $ — $ 232.2 $ 150.0 $ 311.7 $ — $ 461.7 (a) Investment in funds outside the country where the pension plan originates is considered International. |
Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | (In millions) January 2, 2015 Balance Net purchases, Issuances and Settlements January 1, 2016 Balance Asset Categories: Insurance funds $ — $ 58.9 $ 58.9 Total Level 3 investments $ — $ 58.9 $ 58.9 |
Estimated Future Benefits Payments | We estimated future benefits payments are as follows at the end of 2015 : Estimated Future Benefit Payments (In millions) Domestic Foreign Total 2016 $ 9.1 $ 6.3 $ 15.4 2017 9.9 7.0 16.9 2018 10.7 7.0 17.7 2019 11.5 7.0 18.5 2020 12.3 7.1 19.4 2021-2025 71.7 41.0 112.7 Total $ 125.2 $ 75.4 $ 200.6 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
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 Stock Units (a) Weighted Average Grant Date Value (b) Employee Stock Units (c) Weighted Average Grant Date Value (b) 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 93.26 126.8 106.90 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 Granted 32.2 63.99 217.0 75.53 Converted (7.7 ) 59.56 (157.6 ) 71.71 Canceled — — (28.4 ) 77.15 Outstanding balance at January 1, 2016 307.8 $ 52.53 436.1 $ 81.56 (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 grant was estimated at the date of the grant using the Black-Scholes option pricing model with the following assumptions and resulting value: Expected Stock Price Volatility Risk-Free Interest Rate Expected Dividend Yield Average Expected Term Resulting Black Scholes Value 2013 Grants 42.0 % 1.1 % — 6.13 years $ 28.57 |
Activity Under the Employee Option Plans | The following table summarizes the activity under the employee option plans: (options in thousands) Employee Options Weighted Average Exercise Price Balance at December 28, 2012 749.0 $ 50.14 Adjusted (a) 39.4 47.91 Granted 56.0 68.64 Exercised (149.0 ) 54.17 Balance at January 3, 2014 695.4 47.93 Exercised (162.4 ) 44.40 Balance at January 2, 2015 533.0 49.00 Exercised — — Balance at January 1, 2016 533.0 $ 49.00 Options exercisable at year-end: 2013 (a) 486.1 $ 43.62 2014 405.6 $ 44.65 2015 472.5 $ 47.15 (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 Balance at January 2, 2015 127.4 $ 25.84 Vested (66.9 ) $ 25.53 Balance at January 1, 2016 60.5 $ 26.18 (a) All unvested stock options are expected to vest. |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Segment Information | Segment information for 2015 , 2014 and 2013 was as follows: (In millions) 2015 NSS EES (a) UPS (a) Corporate (b) Total Net Sales $ 3,924.4 $ 1,930.2 $ 335.9 $ — $ 6,190.5 Operating income 189.4 92.5 10.4 (24.5 ) 267.8 Depreciation 13.7 7.0 1.1 0.4 22.2 Amortization of intangibles 14.7 6.3 3.9 — 24.9 Total assets 1,902.8 1,071.4 813.4 350.6 4,138.2 Capital expenditures 3.0 1.0 0.8 21.9 26.7 2014 NSS (c) EES UPS Corporate (b) Total Net Sales $ 3,481.2 $ 2,025.8 $ — $ — $ 5,507.0 Operating income 182.8 139.0 — (11.7 ) 310.1 Depreciation 12.5 7.5 — — 20.0 Amortization of intangibles 4.9 5.7 — — 10.6 Total assets 1,867.2 972.4 — 334.3 3,173.9 Capital expenditures 2.6 1.3 — 30.3 34.2 2013 NSS EES UPS Corporate (b) Total Net Sales $ 3,247.2 $ 2,043.9 $ — $ — $ 5,291.1 Operating income 167.1 155.2 — (11.4 ) 310.9 Depreciation 11.5 7.1 — — 18.6 Amortization of intangibles 0.8 5.9 — — 6.7 Total assets 1,220.0 938.3 — 279.1 2,437.4 Capital expenditures 2.1 1.0 — 24.2 27.3 (a) At the beginning of the fourth quarter of 2015, we acquired Power Solutions which is reported in both the EES and UPS business segments. For further information, see Note 3. "Business Combinations" . (b) Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. (c) At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the NSS business segments. For further information, see Note 3. "Business Combinations" . |
Schedule of Segment Reporting Operating Income | Year Ended January 1, 2016 (In millions) NSS EES UPS Corporate Total Acquisition and integration costs $ — $ — $ (0.2 ) $ (13.0 ) $ (13.2 ) Latin America assets write-off (10.7 ) (1.0 ) — — (11.7 ) Restructuring charge (4.0 ) (4.0 ) (0.1 ) (0.1 ) (8.2 ) Write-off of capitalized software (1.9 ) (0.9 ) — (0.3 ) (3.1 ) Dilapidation provision (0.9 ) (0.8 ) — — (1.7 ) Pension divestiture costs (0.3 ) (0.1 ) — — (0.4 ) Total of items impacting operating income $ (17.8 ) $ (6.8 ) $ (0.3 ) $ (13.4 ) $ (38.3 ) Year Ended January 2, 2015 (In millions) NSS EES UPS Corporate Total Acquisition and integration costs $ (7.0 ) $ (0.2 ) $ — $ — $ (7.2 ) |
Summary of Net Sales and Property, Plant and Equipment and Total Assets by Geographic areas | The following table summarizes net sales, total assets and property and equipment by geographic areas for the years ended January 1, 2016 , January 2, 2015 and January 3, 2014 : Years Ended (In millions) January 1, 2016 January 2, 2015 January 3, 2014 Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales North America $ 4,837.3 78.2 % $ 4,057.7 73.7 % $ 3,902.7 73.8 % Europe 601.9 9.7 % 648.5 11.8 % 623.2 11.8 % Emerging Markets 751.3 12.1 % 800.8 14.5 % 765.2 14.4 % Net sales $ 6,190.5 100.0 % $ 5,507.0 100.0 % $ 5,291.1 100.0 % (In millions) January 1, 2016 January 2, 2015 Total assets North America $ 3,371.2 $ 2,395.5 Europe 252.9 238.9 Emerging Markets 514.1 539.5 Total assets $ 4,138.2 $ 3,173.9 (In millions) January 1, 2016 January 2, 2015 Net property and equipment North America $ 115.7 $ 87.7 Europe 9.9 10.3 Emerging Markets 6.2 6.2 Net property and equipment $ 131.8 $ 104.2 |
Changes in Goodwill | The following table presents the changes in goodwill allocated to our reporting units from January 3, 2014 to January 1, 2016 : (In millions) NSS EES UPS Total Balance as of January 3, 2014 $ 162.5 $ 179.6 $ — $ 342.1 Acquisition related (a) (b) 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 Acquisition related (c) (1.3 ) 34.7 155.3 188.7 Foreign currency translation (8.8 ) (1.7 ) (4.0 ) (14.5 ) Balance as of January 1, 2016 $ 393.3 $ 211.9 $ 151.3 $ 756.5 (a) 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. (b) 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 $2.2 million . The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. (c) At the beginning of the fourth quarter of 2015, we acquired the equity interest of certain subsidiaries of HD Supply, Inc. and certain assets that comprise Power Solutions in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). |
SUMMARIZED FINANCIAL INFORMAT36
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
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 1, January 2, Assets: Current assets $ 2,723.4 $ 2,210.2 Current assets of discontinued operations 3.8 379.2 Property, equipment and capital leases, net 141.1 114.7 Goodwill 756.5 582.3 Intangible assets, net 453.8 202.7 Other assets 72.1 101.8 $ 4,150.7 $ 3,590.9 Liabilities and Stockholder’s Equity: Current liabilities $ 1,151.5 $ 921.3 Current liabilities of discontinued operations 5.3 108.8 Subordinated notes payable to parent — 1.5 Long-term debt 1,655.6 1,216.1 Other liabilities 161.1 212.4 Stockholder’s equity 1,177.2 1,130.8 $ 4,150.7 $ 3,590.9 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended (In millions) January 1, January 2, January 3, Net sales $ 6,190.5 $ 5,507.0 $ 5,291.1 Operating income $ 273.8 $ 316.0 $ 316.8 Income from continuing operations before income taxes $ 187.9 $ 254.3 $ 265.3 Net income from discontinued operations $ 30.7 $ 31.4 $ 25.5 Net income $ 130.7 $ 197.7 $ 204.9 Comprehensive income $ 38.2 $ 86.3 $ 230.1 |
SELECTED QUARTERLY FINANCIAL 37
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Jan. 01, 2016 | |
Text Block [Abstract] | |
Summary of Quarterly Financial Data | (In millions, except per share amounts) First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) Year ended January 1, 2016 Net sales $ 1,385.1 $ 1,480.4 $ 1,489.2 $ 1,835.8 Cost of goods sold 1,075.8 1,151.5 1,158.3 1,464.4 Operating income 59.3 64.5 78.2 65.8 Income from continuing operations before income taxes 41.1 48.3 56.9 36.6 Net income from continuing operations 26.5 29.5 35.4 5.5 Net (loss) income from discontinued operations (7.4 ) 41.9 (2.9 ) (0.9 ) Net income $ 19.1 $ 71.4 $ 32.5 $ 4.6 Income (loss) per share: Basic: Continuing operations $ 0.80 $ 0.89 $ 1.06 $ 0.17 Discontinued operations $ (0.22 ) $ 1.26 $ (0.09 ) $ (0.03 ) Net income $ 0.58 $ 2.15 $ 0.97 $ 0.14 Diluted: Continuing operations $ 0.79 $ 0.88 $ 1.06 $ 0.17 Discontinued operations $ (0.22 ) $ 1.26 $ (0.09 ) $ (0.03 ) Net income $ 0.57 $ 2.14 $ 0.97 $ 0.14 Common stock price (NYSE symbol: AXE): High $ 88.11 $ 78.68 $ 69.15 $ 70.29 Low $ 73.34 $ 63.91 $ 55.71 $ 57.74 Close $ 76.75 $ 64.16 $ 57.73 $ 60.39 (a) In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million , ( $0.4 million , net of tax). (b) In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. (c) In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations" . (d) In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations" . "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt" . (In millions, except per share amounts) First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) Year ended January 2, 2015 (As Adjusted, See Note 2) Net sales $ 1,274.3 $ 1,342.9 $ 1,438.0 $ 1,451.8 Cost of goods sold 982.5 1,039.6 1,115.3 1,130.3 Operating income 70.0 77.2 82.5 80.4 Income from continuing operations before income taxes 50.2 66.3 70.2 62.9 Net income from continuing operations 37.7 44.5 45.4 35.8 Net income from discontinued operations 9.7 9.3 7.1 5.3 Net income $ 47.4 $ 53.8 $ 52.5 $ 41.1 Income per share: Basic: Continuing operations $ 1.15 $ 1.35 $ 1.37 $ 1.08 Discontinued operations $ 0.29 $ 0.28 $ 0.22 $ 0.16 Net income $ 1.44 $ 1.63 $ 1.59 $ 1.24 Diluted: Continuing operations $ 1.13 $ 1.33 $ 1.36 $ 1.07 Discontinued operations $ 0.30 $ 0.28 $ 0.21 $ 0.16 Net income $ 1.43 $ 1.61 $ 1.57 $ 1.23 Common stock price (NYSE symbol: AXE): High $ 115.84 $ 105.33 $ 103.47 $ 89.95 Low $ 84.55 $ 92.79 $ 82.40 $ 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 from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations" . 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 $0.5 million related to integration costs and $1.0 million related to acquisition transaction costs for Tri-Ed. For further information, see Note 3. "Business Combinations" . |
SUMMARY OF SIGNIFICANT ACCOUN38
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2016USD ($) | Apr. 03, 2015USD ($) | Apr. 04, 2014USD ($) | Jan. 01, 2016USD ($)shares | Jan. 02, 2015USD ($)shares | Jan. 03, 2014USD ($)shares | |
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total purchase price, net of cash acquired and working capital adjustment | $ 822.5 | $ 418.4 | $ 0 | |||
Fiscal Year Term | 52 weeks | 52 weeks | 53 weeks | |||
Cash and Cash Equivalent Maturity Period Maximum | 3 months | |||||
Allowance for doubtful accounts | $ 37.5 | $ 37.5 | $ 27 | |||
Provision for doubtful accounts | 25.8 | 11.4 | $ 10.2 | |||
Inventories | 1,182.6 | 1,182.6 | 859 | |||
Net of inventory reserves | 42.4 | 42.4 | 34.7 | |||
Property and Equipment, net | 131.8 | 131.8 | 104.2 | |||
Depreciation expense | 23.8 | 24 | 22.1 | |||
Impairment charge related to write-down of property and equipment | 1.7 | |||||
Capitalized costs | $ 49.5 | 49.5 | 44.1 | |||
Capitalized Computer Software, Amortization | 2.8 | 2.5 | 2.4 | |||
Interest Costs Capitalized | 1.2 | 0.8 | 0.6 | |||
Average amortization of intangible assets | $ 33.9 | |||||
Years of Average Amortization of Intangibles | 5 years | |||||
Percent devaluation of foreign currency against the US dollar | 0.40 | |||||
Foreign Exchange Gain Loss Due To Devaluation | $ 2.9 | $ 0.7 | $ 8 | $ 3.6 | 8 | 1.1 |
Foreign Currency Transaction Gain (Loss), before Tax | $ (14.9) | (8.2) | (6.3) | |||
Rate of foreign currency denominated accounts not hedged | 100.00% | |||||
Interest Income Related To Finalizing Prior Year Tax Returns | 0.7 | |||||
Reserves for returns and credits provided to customers | $ 29.1 | 23.7 | ||||
Advertising and promotion costs | 13.2 | 12.6 | 12.4 | |||
Shipping and handling costs | $ 102.7 | $ 99.5 | $ 99.6 | |||
Percentage threshold for tax benefit recognized | 50.00% | |||||
Total additional shares included in the computation of diluted earnings per share | shares | 0.2 | 0.3 | 0.3 | |||
Convertible notes due (in shares) | shares | 0 | 0 | 0.1 | |||
Deferred Tax Assets, Gross, Current | 28 | $ 28 | ||||
Unamortized Debt Issuance Expense | 10.2 | 10.2 | $ 5.7 | |||
Equipment And Computer Software [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and Equipment, net | 90.4 | $ 90.4 | 75.9 | |||
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 Leasehold Improvements [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and Equipment, net | 40.6 | $ 40.6 | 28.3 | |||
Building and Leasehold Improvements [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 7 years | |||||
Building and Leasehold Improvements [Member] | Maximum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Estimated useful life | 39 years | |||||
Land [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Property and Equipment, net | $ 0.8 | $ 0.8 | ||||
Argentina, Pesos | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 8 | |||||
Argentina, Pesos | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 6.5 | |||||
Venezuela bolivar [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 200 | 49 | 200 | 6.30 | ||
Venezuela bolivar [Member] | Minimum [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Foreign Currency Exchange Rate, Translation | 4.30 | |||||
Net [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative, Notional Amount | $ 132.8 | $ 132.8 | 121.9 | |||
gross [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Derivative, Notional Amount | $ 196.1 | 196.1 | 222.9 | |||
Power Solutions [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total purchase price, net of cash acquired and working capital adjustment | 824.7 | |||||
Cash and outstanding checks acquired | 11.7 | |||||
Net working capital adjustment | (3.8) | |||||
Average amortization of intangible assets | 16.7 | |||||
Tri-Ed [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Total purchase price, net of cash acquired and working capital adjustment | 418.4 | |||||
Cash and outstanding checks acquired | 11.6 | |||||
Net working capital adjustment | 2.2 | |||||
Average amortization of intangible assets | 12.7 | |||||
Continuing Operations [Member] | ||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||
Depreciation expense | $ 22.2 | $ 20 | $ 18.6 |
SUMMARY OF SIGNIFICANT ACCOUN39
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Indefinite and Finite-lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 511.8 | $ 236.3 |
Accumulated amortization | (58) | (33.6) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 461.4 | 184.8 |
Customer Relationships [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Customer Relationships [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Exclusive supplier agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 22 | 22.9 |
Exclusive supplier agreement [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 21 years | |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount, finite tradenames | $ 13.3 | 14.1 |
Trade Names [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Trade Names [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 4.5 | 3.9 |
Non-compete Agreements [Member] | Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Non-compete Agreements [Member] | Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (48.4) | (29) |
Exclusive supplier agreement [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | (1.6) | (0.3) |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | (5.8) | (3.4) |
Non-compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated amortization | $ (2.2) | (0.9) |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying amount | $ 10.6 |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Components of Other Net Reflected in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2016 | Apr. 03, 2015 | Apr. 04, 2014 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Other, net loss: | ||||||
Foreign Currency Transaction Gain (Loss), before Tax | $ (14.9) | $ (8.2) | $ (6.3) | |||
Foreign Exchange Devaluations | $ (2.9) | $ (0.7) | $ (8) | (3.6) | (8) | (1.1) |
Cash surrender value of life insurance policies | (0.8) | 0.8 | 0.2 | |||
Other | (1.8) | (0.6) | (1.7) | |||
Total | $ (21.1) | $ (16) | $ (8.9) |
ACCRUED EXPENSES - Accrued Expe
ACCRUED EXPENSES - Accrued Expenses (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 |
Schedule Of Accrued Expenses And Other Current Liabilities [Line Items] | ||
Salaries and fringe benefits | $ 87.5 | $ 77.4 |
Other accrued expenses | 157.8 | 105.8 |
Total accrued expenses | $ 245.3 | $ 183.2 |
DISCONTINUED OPERATIONS DISCO42
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Consideration for discontinued operations | $ 380 | ||
Proceeds from sale of business | 371.8 | $ 0 | $ 0 |
Provision for doubtful accounts | 25.8 | 11.4 | 10.2 |
Transaction related costs | 16.3 | ||
Gain on sale of discontinued operations | 40 | 0 | 0 |
Gain on sale of discontinued operations, net of tax | 23.7 | ||
Discontinued operations allocated interest costs | 1.1 | 3.6 | 3.5 |
Pension curtailment gain | 5.1 | ||
Special termination benefit costs | 0.3 | ||
Fastener Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of discontinued operations | $ 41 | $ 0 | $ 0 |
DISCONTINUED OPERATIONS DISCO43
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Results from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 01, 2016 | [1] | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | [4] | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | [7] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Net sales | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 1,451.8 | $ 1,438 | $ 1,342.9 | $ 1,274.3 | $ 6,190.5 | $ 5,507 | $ 5,291.1 | |||||||
Operating income | 65.8 | 78.2 | 64.5 | 59.3 | 80.4 | 82.5 | 77.2 | 70 | 267.8 | 310.1 | 310.9 | |||||||
Gain on sale of discontinued operations | 40 | 0 | 0 | |||||||||||||||
Net income from discontinued operations | $ (0.9) | $ (2.9) | $ 41.9 | $ (7.4) | $ 5.3 | $ 7.1 | $ 9.3 | $ 9.7 | ||||||||||
Fastener Business [Member] | ||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||||||||
Net sales | 405.9 | 938.5 | 935.5 | |||||||||||||||
Operating income | 14.2 | 50.8 | 43.9 | |||||||||||||||
Income from discontinued operations before income taxes | 11.9 | 45.2 | 38.1 | |||||||||||||||
Gain on sale of discontinued operations | 41 | 0 | 0 | |||||||||||||||
Income tax expense from discontinued operations | 22.2 | 13.8 | 12.6 | |||||||||||||||
Net income from discontinued operations | $ 30.7 | $ 31.4 | $ 25.5 | |||||||||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | |||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | |||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | |||||||||||||||||
[6] | 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 | |||||||||||||||||
[7] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. |
DISCONTINUED OPERATIONS DISCO44
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Assets and Liabilities from Discontinued Operations (Details) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | $ 1,326.4 | $ 1,171 |
Inventories | 1,182.6 | 859 |
Other current assets | 63.7 | 54.9 |
Net property and equipment | 131.8 | 104.2 |
Other assets | 72.1 | 101.8 |
Total assets of discontinued operations | 4,142 | 3,580.8 |
Accounts payable | 905.6 | 738.5 |
Accrued expenses | 245.3 | 183.2 |
Other liabilities | 163.5 | 215.3 |
Total liabilities of discontinued operations | 2,962.6 | 2,447.8 |
Fastener Business [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 2.6 | 158.2 |
Inventories | 1.2 | 213.8 |
Other current assets | 0 | 7.2 |
Net property and equipment | 0 | 16.8 |
Other assets | 0 | 10.9 |
Total assets of discontinued operations | 3.8 | 406.9 |
Accounts payable | 1.3 | 92.8 |
Accrued expenses | 4 | 16 |
Other liabilities | 1.7 | 0.2 |
Total liabilities of discontinued operations | $ 7 | $ 109 |
BUSINESS COMBINATION - Additio
BUSINESS COMBINATION - Additional information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 01, 2016 | Oct. 02, 2015 | [5] | Jul. 03, 2015 | [6] | Apr. 03, 2015 | [7] | Jan. 02, 2015 | Oct. 03, 2014 | [8] | Jul. 04, 2014 | [9] | Apr. 04, 2014 | [10] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Sep. 17, 2014 | |||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total purchase price, net of cash acquired and working capital adjustment | $ 822.5 | $ 418.4 | $ 0 | |||||||||||||||||||
Goodwill | 188.7 | [1] | 244.8 | [2],[3] | ||||||||||||||||||
Repayments of Long-term Debt | 0 | 32.3 | 0 | |||||||||||||||||||
Net sales | $ 1,835.8 | [4] | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 1,451.8 | $ 1,438 | $ 1,342.9 | $ 1,274.3 | 6,190.5 | 5,507 | 5,291.1 | ||||||||||
Operating income | 65.8 | [4] | $ 78.2 | $ 64.5 | $ 59.3 | 80.4 | $ 82.5 | $ 77.2 | $ 70 | 267.8 | 310.1 | 310.9 | ||||||||||
Transaction related costs | 16.3 | 16.3 | ||||||||||||||||||||
Term loan [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Repayments of Debt | 200 | |||||||||||||||||||||
Debt Instrument, Face Amount | 200 | 200 | ||||||||||||||||||||
Senior notes due 2021 [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Debt Instrument, Face Amount | 400 | 400 | ||||||||||||||||||||
Electrical and Electronic Solutions [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Goodwill | [1] | 34.7 | ||||||||||||||||||||
Net sales | 1,930.2 | [11] | 2,025.8 | 2,043.9 | ||||||||||||||||||
Operating income | 92.5 | [11] | 139 | 155.2 | ||||||||||||||||||
Utility Power Solutions [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Goodwill | [1] | 155.3 | ||||||||||||||||||||
Net sales | 335.9 | [11] | 0 | 0 | ||||||||||||||||||
Operating income | 10.4 | [11] | 0 | $ 0 | ||||||||||||||||||
Power Solutions [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total purchase price, net of cash acquired and working capital adjustment | 824.7 | |||||||||||||||||||||
Cash and outstanding checks acquired | 11.7 | |||||||||||||||||||||
Net working capital adjustment | (3.8) | |||||||||||||||||||||
Goodwill | 190 | |||||||||||||||||||||
Goodwill expected to be tax deductible | $ 84.9 | 84.9 | ||||||||||||||||||||
Net sales | 459.2 | |||||||||||||||||||||
Operating income | 10.9 | |||||||||||||||||||||
Power Solutions [Member] | Operating Expense [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Acquisition and integration costs | 11.9 | |||||||||||||||||||||
Power Solutions [Member] | Electrical and Electronic Solutions [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Goodwill | 34.7 | |||||||||||||||||||||
Power Solutions [Member] | Utility Power Solutions [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Goodwill | 155.3 | |||||||||||||||||||||
Tri-Ed [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Total purchase price, net of cash acquired and working capital adjustment | 418.4 | |||||||||||||||||||||
Cash and outstanding checks acquired | 11.6 | |||||||||||||||||||||
Net working capital adjustment | 2.2 | |||||||||||||||||||||
Goodwill | $ 242.2 | |||||||||||||||||||||
Goodwill expected to be tax deductible | 12.2 | 12.2 | ||||||||||||||||||||
Transaction related costs | 7 | 7 | ||||||||||||||||||||
Percentage of Voting Interests Acquired | 100.00% | |||||||||||||||||||||
Tri-Ed [Member] | Operating Expense [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Transaction related costs | $ 6.7 | 6.7 | ||||||||||||||||||||
Tri-Ed [Member] | Other Expense [Member] | ||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||
Acquisition and integration costs | $ 0.3 | |||||||||||||||||||||
[1] | At the beginning of the fourth quarter of 2015, we acquired the equity interest of certain subsidiaries of HD Supply, Inc. and certain assets that comprise Power Solutions in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). | |||||||||||||||||||||
[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 $2.2 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. | |||||||||||||||||||||
[3] | 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. | |||||||||||||||||||||
[4] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||||||
[5] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||||||
[6] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | |||||||||||||||||||||
[7] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | |||||||||||||||||||||
[8] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | |||||||||||||||||||||
[9] | 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 | |||||||||||||||||||||
[10] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | |||||||||||||||||||||
[11] | At the beginning of the fourth quarter of 2015, we acquired Power Solutions which is reported in both the EES and UPS business segments. For further information, see Note 3. "Business Combinations" . |
BUSINESS COMBINATION BUSINESS C
BUSINESS COMBINATION BUSINESS COMBINATIONS - Purchase Price Allocation - Power Solutions (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 01, 2016 | Jan. 02, 2015 | ||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 188.7 | [1] | $ 244.8 | [2],[3] | |
Power Solutions [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 11.7 | ||||
Current assets, net | 564.6 | ||||
Property, plant, and equipment | 25 | ||||
Goodwill | 190 | ||||
Intangible assets | 283.9 | ||||
Non-current assets | 5.4 | ||||
Current liabilities | (231.6) | ||||
Non-current liabilities | (8.8) | ||||
Total purchase price | $ 840.2 | ||||
Network and Security Solutions [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | [2],[3] | $ 243.4 | |||
[1] | At the beginning of the fourth quarter of 2015, we acquired the equity interest of certain subsidiaries of HD Supply, Inc. and certain assets that comprise Power Solutions in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). | ||||
[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 $2.2 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. | ||||
[3] | 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. |
BUSINESS COMBINATION BUSINESS47
BUSINESS COMBINATION BUSINESS COMBINATIONS - Intangible Assets Acquired - Power Solutions (Details) - Power Solutions [Member] $ in Millions | 12 Months Ended |
Jan. 01, 2016USD ($) | |
Business Acquisition [Line Items] | |
Intangible assets fair value | $ 283.9 |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Intangible assets fair value | 281.5 |
Non-compete Agreements [Member] | |
Business Acquisition [Line Items] | |
Intangible assets fair value | $ 2.4 |
Minimum [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Average useful life (in years) | 14 years |
Maximum [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Average useful life (in years) | 18 years |
Maximum [Member] | Non-compete Agreements [Member] | |
Business Acquisition [Line Items] | |
Average useful life (in years) | 1 year |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase Price Allocation - Tri-Ed (Detail) - USD ($) $ in Millions | 12 Months Ended | ||||
Jan. 01, 2016 | Jan. 02, 2015 | ||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 188.7 | [1] | $ 244.8 | [2],[3] | |
Tri-Ed [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash | 11.6 | ||||
Current assets, net | 203.9 | ||||
Property, plant, and equipment | 2.7 | ||||
Goodwill | 242.2 | ||||
Intangible assets | 166.8 | ||||
Current liabilities | (143.3) | ||||
Non-current liabilities | (56.1) | ||||
Total purchase price | $ 427.8 | ||||
Network and Security Solutions [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | [2],[3] | $ 243.4 | |||
[1] | At the beginning of the fourth quarter of 2015, we acquired the equity interest of certain subsidiaries of HD Supply, Inc. and certain assets that comprise Power Solutions in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). | ||||
[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 $2.2 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. | ||||
[3] | 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. |
BUSINESS COMBINATION, Intangibl
BUSINESS COMBINATION, Intangible assets acquired - Tri-Ed (Details) - Tri-Ed [Member] $ in Millions | 12 Months Ended |
Jan. 01, 2016USD ($) | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Total intangible assets | $ 166.8 |
Trade Names [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Intangible Assets fair value, indefinite-lived | 10.6 |
Customer Relationships [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Intangible assets fair value | $ 120.6 |
Customer Relationships [Member] | Minimum [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Average useful life (in years) | 11 years |
Customer Relationships [Member] | Maximum [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Average useful life (in years) | 18 years |
Exclusive supplier agreement [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Intangible assets fair value | $ 23.2 |
Exclusive supplier agreement [Member] | Maximum [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Average useful life (in years) | 21 years |
Tri-Ed trade name [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Intangible assets fair value | $ 9.2 |
Tri-Ed trade name [Member] | Maximum [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Average useful life (in years) | 4 years |
Non-compete Agreements [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Intangible assets fair value | $ 3.2 |
Non-compete Agreements [Member] | Minimum [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Average useful life (in years) | 4 years |
Non-compete Agreements [Member] | Maximum [Member] | |
ScheduleOfAcquiredFiniteAndIndefiniteLivedIntangibleAssetsByMajorClass [Line Items] | |
Average useful life (in years) | 5 years |
BUSINESS AQUISITION, PRO FORMA
BUSINESS AQUISITION, PRO FORMA (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | |||
Net sales | $ 7,733.4 | $ 7,831 | $ 5,863.2 |
Net income from continuing operations | $ 107.1 | $ 180.5 | $ 178.3 |
Income per share from continuing operations | |||
Basic | $ 3.22 | $ 5.46 | $ 5.44 |
Diluted | $ 3.20 | $ 5.41 | $ 5.37 |
RESTRUCTURING CHARGE RESTRUCTUR
RESTRUCTURING CHARGE RESTRUCTURING CHARGES - Summary of Liabilities Associated with Restructuring and Employee Severance (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2016 | Jul. 03, 2015 | Jan. 01, 2016 | Jan. 02, 2015 | |
Employee Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | $ 0 | $ 1.6 | ||
Restructuring Charges | 8 | |||
Payments and other | 4 | 1.6 | ||
Restructuring Reserve, Ending balance | $ 4 | 4 | 0 | |
Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | 0.8 | 0.3 | ||
Restructuring Charges | 0.2 | |||
Payments and other | 0.4 | 0.5 | ||
Restructuring Reserve, Ending balance | 0.6 | 0.6 | 0.8 | |
Q4 2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | 2.9 | |||
Restructuring Reserve, Ending balance | 3.2 | 3.2 | ||
Q4 2015 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | 0 | 0 | ||
Restructuring Charges | 3.2 | |||
Payments and other | 0.2 | 0 | ||
Restructuring Reserve, Ending balance | 3 | 3 | 0 | |
Q4 2015 Restructuring Plan [Member] | Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | 0 | 0 | ||
Restructuring Charges | 0.2 | |||
Payments and other | 0 | 0 | ||
Restructuring Reserve, Ending balance | 0.2 | 0.2 | 0 | |
Q2 2015 Restructuring Plan [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 5.3 | |||
Q2 2015 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | 0 | 0 | ||
Restructuring Charges | 4.8 | |||
Payments and other | 3.8 | 0 | ||
Restructuring Reserve, Ending balance | 1 | 1 | 0 | |
Q4 2012 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | 0 | 1.6 | ||
Restructuring Charges | 0 | |||
Payments and other | 0 | 1.6 | ||
Restructuring Reserve, Ending balance | 0 | 0 | 0 | |
Q4 2012 Restructuring Plan [Member] | Facility Closing [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Reserve, Beginning balance | 0.8 | 0.3 | ||
Restructuring Charges | 0 | |||
Payments and other | 0.4 | 0.5 | ||
Restructuring Reserve, Ending balance | $ 0.4 | $ 0.4 | $ 0.8 |
RESTRUCTURING CHARGE RESTRUCT52
RESTRUCTURING CHARGE RESTRUCTURING CHARGES - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2016USD ($) | Oct. 02, 2015USD ($) | Jul. 03, 2015USD ($) | Apr. 03, 2015USD ($) | Oct. 03, 2014USD ($) | Apr. 04, 2014USD ($) | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) | Dec. 28, 2012USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||||||||
Acquisition and integration costs | $ 4.1 | $ 8.1 | $ 1 | $ 13.2 | $ 7.5 | |||||
Latin America assets write-off | 9.1 | 2.6 | 11.7 | |||||||
Write-off of capitalized software | (3.1) | 3.1 | ||||||||
Dilapidation provision | 1.7 | 1.7 | ||||||||
Gains (Losses) on Extinguishment of Debt | (0.9) | (0.9) | 0 | $ 0 | ||||||
Pension Divestiture Costs | 0.4 | 0.4 | ||||||||
Foreign Exchange Devaluations | (2.9) | $ (0.7) | $ (8) | (3.6) | (8) | (1.1) | ||||
Write off of Deferred Debt Issuance Cost | 0.3 | |||||||||
(Establishment) reversal of deferred tax asset valuation allowance | 11.3 | (6.9) | ||||||||
Other tax expense | 0.5 | |||||||||
Net Benefit Related To Closing Prior Tax Years | $ (1.9) | 1.9 | 4.7 | |||||||
Interest Income Related To Finalizing Prior Year Tax Returns | 0.7 | |||||||||
Employee Related Costs [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 8 | |||||||||
Restructuring Reserve | 4 | 4 | 0 | 1.6 | ||||||
Facility Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 0.2 | |||||||||
Restructuring Reserve | 0.6 | $ 0.6 | 0.8 | 0.3 | ||||||
Q4 2015 Restructuring Plan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 2.9 | |||||||||
Number of Positions Eliminated | 80 | |||||||||
Restructuring Reserve | 3.2 | $ 3.2 | ||||||||
Q4 2015 Restructuring Plan [Member] | Operating Expense [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 3.4 | |||||||||
Q4 2015 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 3.2 | |||||||||
Restructuring Reserve | 3 | 3 | 0 | 0 | ||||||
Q4 2015 Restructuring Plan [Member] | Facility Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 0.2 | |||||||||
Restructuring Reserve | 0.2 | 0.2 | 0 | 0 | ||||||
Q4 2015 Restructuring Plan [Member] | Network and Security Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 1 | |||||||||
Q4 2015 Restructuring Plan [Member] | Electrical and Electronic Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 2.3 | |||||||||
Q4 2015 Restructuring Plan [Member] | Utility Power Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 0.1 | |||||||||
Q2 2015 Restructuring Plan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 5.3 | |||||||||
Number of Positions Eliminated | 100 | |||||||||
Q2 2015 Restructuring Plan [Member] | Operating Expense [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 5.3 | |||||||||
Q2 2015 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 4.8 | |||||||||
Restructuring Reserve | 1 | 1 | 0 | 0 | ||||||
Q2 2015 Restructuring Plan [Member] | Network and Security Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 3 | |||||||||
Q2 2015 Restructuring Plan [Member] | Electrical and Electronic Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 2.2 | |||||||||
Restructuring charge adjustment | 0.5 | |||||||||
Q2 2015 Restructuring Plan [Member] | Corporate Segment [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 0.1 | |||||||||
Q4 2012 Restructuring Plan [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Number of Positions Eliminated | 200 | |||||||||
Q4 2012 Restructuring Plan [Member] | Operating Expense [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 6.9 | |||||||||
Q4 2012 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 0 | |||||||||
Restructuring Reserve | 0 | 0 | 0 | 1.6 | ||||||
Q4 2012 Restructuring Plan [Member] | Facility Closing [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 0 | |||||||||
Restructuring Reserve | $ 0.4 | $ 0.4 | $ 0.8 | $ 0.3 | ||||||
Q4 2012 Restructuring Plan [Member] | Network and Security Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | 4.1 | |||||||||
Q4 2012 Restructuring Plan [Member] | Electrical and Electronic Solutions [Member] | ||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||
Restructuring Charges | $ 2.8 |
DEBT- Debt (Detail)
DEBT- Debt (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 |
Debt Instrument [Line Items] | ||
Long-term Debt | $ 1,642.9 | $ 1,202 |
Unamortized debt issuance costs | 10.2 | 5.7 |
Senior notes due 2023 [Domain] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 345.8 | 0 |
Senior notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 394.9 | 394.2 |
Senior notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 346.8 | 345.9 |
Canadian Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 172.9 | 0 |
Revolving Lines of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 390.1 | 0 |
Term loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 198.8 |
Accounts receivable securitization facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 65 |
Senior notes due 2015 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | 0 | 200 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term Debt | $ 2.6 | $ 3.8 |
DEBT- Additional Information (D
DEBT- Additional Information (Detail) $ / shares in Units, shares in Millions, CAD in Millions | Jul. 18, 2013USD ($) | Jul. 15, 2013$ / shares | Jan. 01, 2016USD ($) | Apr. 04, 2014USD ($) | Sep. 27, 2013shares | Mar. 29, 2013USD ($) | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) | Jan. 01, 2016CAD |
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 2,600,000 | $ 2,600,000 | ||||||||
Annual maturities of debt, year two | 0 | 0 | ||||||||
Annual maturities of debt, year three | 5,000,000 | 5,000,000 | ||||||||
Annual maturities of debt, year four | 368,400,000 | 368,400,000 | ||||||||
Annual maturities of debt, year five | 536,400,000 | 536,400,000 | ||||||||
Annual maturities of debt, after year five | 740,700,000 | 740,700,000 | ||||||||
Long-term debt, weighted average amount outstanding | $ 1,338,400,000 | $ 1,027,400,000 | ||||||||
Weighted-average cost of borrowings | 4.80% | 4.70% | 5.30% | |||||||
Long-term debt, interest paid | $ 56,000,000 | $ 37,600,000 | $ 40,000,000 | |||||||
Line of credit facility maximum borrowing capacity | 750,000,000 | 750,000,000 | ||||||||
Receivables Sold | 0 | 0 | 548,500,000 | |||||||
Short-term debt | 2,600,000 | 2,600,000 | 10,100,000 | |||||||
Gains (Losses) on Extinguishment of Debt | (900,000) | (900,000) | 0 | 0 | ||||||
Write off of Deferred Debt Issuance Cost | 300,000 | |||||||||
Long-term Debt | 1,642,900,000 | 1,642,900,000 | 1,202,000,000 | |||||||
Repayments of Long-term Debt | 0 | 32,300,000 | 0 | |||||||
Payments for repurchase of warrants | 0 | 0 | 19,200,000 | |||||||
Long-term Debt Fair Value | 1,669,500,000 | 1,669,500,000 | 1,238,100,000 | |||||||
Payments of Debt Issuance Costs | 6,700,000 | 2,300,000 | 1,200,000 | |||||||
Retirement of Notes | $ 0 | 0 | 300,000,000 | |||||||
Canadian Term Loan [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Maximum leverage ratio | 4.25 | |||||||||
Minimum fixed charge coverage ratio | 3 | |||||||||
Debt Instrument, Face Amount | CAD | CAD 225 | |||||||||
Write off of Deferred Debt Issuance Cost | $ 300,000 | |||||||||
Long-term Debt | 172,900,000 | $ 172,900,000 | 0 | |||||||
Canadian Term Loan [Member] | Minimum [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Consolidated leverage ratio | 1.25 | |||||||||
Canadian Term Loan [Member] | Maximum [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Consolidated leverage ratio | 3 | |||||||||
Term loan [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Repayments of Debt | $ 200,000,000 | |||||||||
Debt Instrument, Face Amount | 200,000,000 | |||||||||
Long-term Debt | 0 | 0 | 198,800,000 | |||||||
Accounts receivable securitization facility [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | 300,000,000 | |||||||||
Receivables Sold | 548,500,000 | |||||||||
Long-term Debt | 0 | 0 | 65,000,000 | |||||||
Senior notes due 2014 [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Debt Instrument, Face Amount | $ 200,000,000 | |||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 10.00% | |||||||||
Long-term Debt | $ 32,100,000 | |||||||||
Repayments of Long-term Debt | $ 32,300,000 | |||||||||
Yield to maturity rate of senior notes | 12.00% | |||||||||
Revolving Lines of Credit [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Line of credit facility maximum borrowing capacity | $ 400,000,000 | |||||||||
Long-term Debt | 390,100,000 | 390,100,000 | 0 | |||||||
Receivables facility [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Committed, unused available credit lines | 155,200,000 | 155,200,000 | ||||||||
Line of credit facility maximum borrowing capacity | 600,000,000 | 600,000,000 | ||||||||
Inventory facility [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Committed, unused available credit lines | 134,200,000 | 134,200,000 | ||||||||
Line of credit facility maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | ||||||||
Senior notes due 2015 [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.95% | 5.95% | 5.95% | |||||||
Long-term Debt | $ 0 | $ 0 | $ 200,000,000 | |||||||
Repayments of Long-term Debt | $ 200,000,000 | |||||||||
Convertible Notes Due 2013 [Member] | ||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 72.81 | |||||||||
Warrant exercisable period | 40 days | |||||||||
Class of Warrant or Right, Date from which Warrants or Rights Exercisable | Jul. 15, 2013 | |||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares | 5.4 | |||||||||
Payments for repurchase of warrants | $ 19,200,000 | |||||||||
Retirement of Notes | $ 300,000,000 |
DEBT Revolving lines of credit
DEBT Revolving lines of credit and Canadian term loan (Details) CAD in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2016USD ($) | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) | Jan. 01, 2016CAD | |
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 750 | $ 750 | |||
Finance transaction costs | 6.7 | ||||
Capitalized debt issuance costs | 5.4 | 5.4 | |||
Debt issuance costs expensed | 1.3 | ||||
Write off of Deferred Debt Issuance Cost | 0.3 | ||||
Term loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 200 | ||||
Repayments of Debt | 200 | ||||
Receivables facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | 600 | 600 | |||
Committed, unused available credit lines | 155.2 | 155.2 | |||
Inventory facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | 150 | 150 | |||
Committed, unused available credit lines | $ 134.2 | $ 134.2 | |||
Canadian Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | CAD | CAD 225 | ||||
Minimum fixed charge coverage ratio | 3 | ||||
Proceeds from (Repayments of) Other Long-term Debt | $ 45.1 | 0 | $ 0 | ||
Write off of Deferred Debt Issuance Cost | $ 0.3 | ||||
Maturity period | 5 years | ||||
Percent of periodic debt maturity in years 1 and 2 | 5.00% | 5.00% | 5.00% | ||
Percent of periodic debt maturity in years 3 and 4 | 10.00% | 10.00% | 10.00% | ||
Percent of periodic debt maturity in year 5 | 70.00% | 70.00% | 70.00% | ||
Maximum leverage ratio | 4.25 | ||||
Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Percent of Combined Facilities availability | 50.00% | 50.00% | 50.00% | ||
Minimum fixed charge coverage ratio | 1.1 | ||||
Revolving Lines of Credit [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 400 | ||||
Canada, Dollars | Canadian Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Face Amount | $ 300 | $ 300 | |||
Percent of eligible receivables [Member] | Receivables facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Limit on debt instruments available borrowings | 85.00% | 85.00% | 85.00% | ||
Percent of net orderly liquidation value of appraised eligible domestic inventory [Member] | Inventory facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Limit on debt instruments available borrowings | 85.00% | 85.00% | 85.00% | ||
Percent of book value of appraised eligible domestic inventory [Member] [Member] | Inventory facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Limit on debt instruments available borrowings | 75.00% | 75.00% | 75.00% | ||
Percent of net orderly liquidation value of eligible domestic inventory not appraised [Member] | Inventory facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Limit on debt instruments available borrowings | 40.00% | 40.00% | 40.00% | ||
Minimum range impacting basis spread [Member] | Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Committed, unused available credit lines | $ 500 | $ 500 | |||
Maximum range impacting basis spread [Member] [Member] | Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Committed, unused available credit lines | $ 250 | $ 250 | |||
Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Undrawn commitment fee rate | 0.25% | 0.25% | 0.25% | ||
Minimum [Member] | Canadian Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio | 1.25 | ||||
Minimum [Member] | Canadian Term Loan [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | ||||
Minimum [Member] | Canadian Term Loan [Member] | Percentage over Banker's Acceptance Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | ||||
Minimum [Member] | Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Minimum [Member] | Impact on acquisitions and restricted payments [Member] | Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Committed, unused available credit lines | $ 112.5 | $ 112.5 | |||
Maximum [Member] | |||||
Debt Instrument [Line Items] | |||||
Undrawn commitment fee rate | 0.375% | 0.375% | 0.375% | ||
Maximum [Member] | Canadian Term Loan [Member] | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio | 3 | ||||
Maximum [Member] | Canadian Term Loan [Member] | Prime Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | ||||
Maximum [Member] | Canadian Term Loan [Member] | Percentage over Banker's Acceptance Rate [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% | ||||
Maximum [Member] | Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | ||||
Maximum [Member] | Minimum range impacting basis spread [Member] | Combined facilities [Member] | |||||
Debt Instrument [Line Items] | |||||
Committed, unused available credit lines | $ 150 | $ 150 |
DEBT Long-term debt Senior note
DEBT Long-term debt Senior noted due 2023 (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2016USD ($) | |
Debt Instrument [Line Items] | |
Debt Issuance Cost | $ 6.7 |
Senior notes due 2023 [Member] | |
Debt Instrument [Line Items] | |
Debt Instrument, Face Amount | $ 350 |
discount percentage of par value | 98.75% |
Debt Instrument, Unamortized Discount | $ 4.4 |
Debt Issuance Cost | $ 1.7 |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.50% |
Debt Instrument, Maturity Date | Mar. 1, 2023 |
Redemption Price Rate On Principal Amount | 100.00% |
Redemption Price As Percentage Of Principal Amount In Case Of Change Of Control | 101.00% |
DEBT Long-term debt Senior no57
DEBT Long-term debt Senior notes due 2021 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Debt Instrument [Line Items] | |||
Payments of Debt Issuance Costs | $ 6.7 | $ 2.3 | $ 1.2 |
Senior notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 400 | ||
discount percentage of par value | 98.50% | ||
Debt Instrument, Unamortized Discount | $ 6 | ||
Proceeds from Issuance of Debt | 393.1 | ||
Payments of Debt Issuance Costs | $ 0.9 | ||
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 5.125% | ||
Debt Instrument, Maturity Date | Oct. 1, 2021 | ||
Redemption Price Rate On Principal Amount | 100.00% | ||
Redemption Price As Percentage Of Principal Amount In Case Of Change Of Control | 101.00% |
DEBT Long-term debt Senior no58
DEBT Long-term debt Senior notes due 2019 (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Debt Instrument [Line Items] | |||
Payments of Debt Issuance Costs | $ 6.7 | $ 2.3 | $ 1.2 |
Senior notes due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 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 | 5.625% | ||
Debt Instrument, Maturity Date | May 1, 2019 | ||
Redemption Price Rate On Principal Amount | 100.00% | ||
Redemption Price As Percentage Of Principal Amount In Case Of Change Of Control | 101.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Disclosure Commitments And Contingencies Additional Information [Abstract] | |||
Operating Leases expiration | various dates through 2027 | ||
Rental expense | $ 78 | $ 70.9 | $ 68.4 |
Additional amount recorded in discontinued operations | 7.1 | ||
Letters of Credit Outstanding, Amount | $ 38.7 |
COMMITMENTS AND CONTINGENCIES60
COMMITMENTS AND CONTINGENCIES - Minimum Lease Commitments Under Operating Leases (Detail) $ in Millions | Jan. 01, 2016USD ($) |
Operating Leased Assets [Line Items] | |
2,016 | $ 71.4 |
2,017 | 57.6 |
2,018 | 48.3 |
2,019 | 34.6 |
2,020 | 25.6 |
2021 and thereafter | 58.4 |
Total | $ 295.9 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 | |
Schedule Of Income Taxes [Line Items] | ||||
Income before income taxes, Domestic | $ 167.3 | $ 173 | $ 164.6 | |
Income before income taxes, Foreign | $ 15.6 | 76.6 | 93.5 | |
Statutory corporate federal tax rate | 35.00% | |||
Cash paid for taxes | $ 103.5 | 117 | 82 | |
Taxes Resulting From Repatriation of Foreign Earnings | 10 | |||
Undistributed earnings of foreign subsidiaries | 647.4 | |||
Interest and penalties related to taxes | 0.2 | 0.3 | 0.2 | |
Unrecognized tax benefit | 5.3 | $ 3 | $ 3.4 | $ 3.4 |
Unrecognized tax benefit that would affect effective tax rate in next twelve months | 0.5 | |||
Reserves for uncertain tax positions, including interest and penalties | 3.9 | |||
Indefinite [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating Loss Carryforwards | 74.1 | |||
Domestic Tax Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Undistributed earnings, U.S. federal income tax | 56.6 | |||
Foreign Tax Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating Loss Carryforwards | 87.6 | |||
Undistributed earnings, U.S. federal income tax | $ 31.9 | |||
Minimum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating Loss Carryforwards, Expiration Dates | Jan. 2, 2016 | |||
Maximum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating Loss Carryforwards, Expiration Dates | Dec. 31, 2024 | |||
Excluding acquired uncertain tax position [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Unrecognized tax benefit | $ 3.1 | |||
Power Solutions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Interest and penalties related to taxes | 0.7 | |||
Unrecognized tax benefit | $ 2.9 |
INCOME TAXES - Income Tax Expen
INCOME TAXES - Income Tax Expense (Benefit) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Current: | |||
Foreign | $ 14.1 | $ 22.6 | $ 26.5 |
State | 7.2 | 4.7 | 4.5 |
Federal | 58.8 | 33.2 | 29.8 |
Total current income taxes | 80.1 | 60.5 | 60.8 |
Deferred: | |||
Foreign | 7.1 | (1) | 1.6 |
State | (0.7) | 3.3 | 2.5 |
Federal | (0.5) | 23.4 | 18.2 |
Total deferred income taxes | 5.9 | 25.7 | 22.3 |
Income tax expense | $ 86 | $ 86.2 | $ 83.1 |
INCOME TAXES - Reconciliation o
INCOME TAXES - Reconciliation of Tax Provision at Federal Statutory Rate to Provision for Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Reconciliation Of Statutory Federal Tax Rate [Line Items] | |||
Statutory tax expense | $ 64 | $ 87.4 | $ 90.3 |
Increase (reduction) in taxes resulting from: | |||
State income taxes, net | 4.7 | 5.4 | 4.8 |
Foreign tax effects | 6.3 | 1.2 | (7.6) |
Change in valuation allowance | 9.3 | (9.2) | 0.3 |
Other, net | 1.7 | 1.4 | (4.7) |
Income tax expense | $ 86 | $ 86.2 | $ 83.1 |
INCOME TAXES - Components of De
INCOME TAXES - Components of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 |
Components Of Deferred Tax Assets And Liabilities [Line Items] | ||
Deferred compensation and other postretirement benefits | $ 36 | $ 41.2 |
Foreign NOL carryforwards and other | 24.8 | 28.2 |
Accrued expenses and other | 10.4 | 4.7 |
Inventory reserves | 7.7 | 14.6 |
Unrealized foreign exchange | 5.8 | 0 |
Allowance for doubtful accounts | 10.2 | 7.7 |
Gross deferred tax assets | 94.9 | 96.4 |
Property, equipment, intangibles and other | (83.7) | (84.8) |
Deferred tax assets, net of deferred tax liabilities | 11.2 | 11.6 |
Valuation allowance | (24) | (11.9) |
Net deferred tax liabilities | $ 12.8 | $ 0.3 |
INCOME TAXES - Reconciliation65
INCOME TAXES - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 3 | $ 3.4 | $ 3.4 |
Additions for tax positions of prior years | 0.4 | 0.4 | 0.2 |
Addition for Power Solutions acquisition | 2.2 | ||
Reductions for tax positions of prior years | (0.3) | (0.8) | (0.2) |
Ending Balance | 5.3 | $ 3 | $ 3.4 |
Power Solutions [Member] | |||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Ending Balance | $ 2.9 |
PENSION PLANS, POST-RETIREMEN66
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Additional Information (Detail) £ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) | Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($)Plans | Jan. 02, 2015USD ($) | Jan. 03, 2014USD ($) | Jan. 01, 2016GBP (£) | |
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 ("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. | ||||||
Weighted-average expected rate of return on plan assets | 5.63% | ||||||
Defined Benefit Plan Assets Actual Gain (Loss) | (1.90%) | 10.00% | |||||
Plan assets at fair value | $ 461.7 | $ 436.7 | $ 446.2 | $ 461.7 | $ 436.7 | ||
Defined contribution charge | 2.5 | 0.8 | |||||
Lump sum settlement payment | 36.2 | 10.2 | 0 | ||||
Accumulated other comprehensive loss | $ 106.8 | 32.3 | 112.5 | 106.8 | 32.3 | ||
Change in Assumption of Mortality Rate | $ (1.9) | $ 17.7 | |||||
Discount rate | 3.79% | 3.98% | 3.79% | 3.98% | |||
Defined Benefit Plan, Benefit Obligation | $ 556 | 467.8 | $ 516.1 | $ 556 | 467.8 | ||
Defined Benefit Plan, Funded Status of Plan | $ (94.3) | (69.9) | (94.3) | ||||
Company contributions | 34 | $ 37.7 | $ 16 | ||||
Actuarial loss (gain) related to settlement charge | 15.3 | ||||||
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 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 | ||||||
Pension curtailment gain | $ 5.1 | ||||||
Special termination benefit costs | $ 0.3 | ||||||
Number of plans with accumulated benefit obligations in excess of fair value of plan assets | Plans | 10 | ||||||
Aggregate pension accumulated benefit obligation | $ 398.9 | $ 368.7 | $ 398.9 | ||||
Aggregate fair value of plan assets | 334.9 | 324.7 | 334.9 | ||||
Expected future benefit Payments in 2016 | $ 15.4 | ||||||
Minimum period of service required to get enrolled in tax deferred plan | 60 days | ||||||
Percentage of match on defined contribution by participants | 50.00% | ||||||
Maximum annual contributions per employee eligible for match | 5.00% | ||||||
Defined contribution plans, expense | $ 9.3 | 9.2 | 8.5 | ||||
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 | 45.7 | $ 46.4 | 45.7 | ||||
Cash surrender value recorded under deferred compensation plan | 35.5 | 34.3 | 35.5 | ||||
Pension Plans, Domestic [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Plan assets at fair value | 229.5 | 213.8 | 218.1 | 229.5 | 213.8 | ||
Lump sum settlement payment | 10.2 | 0 | |||||
Defined Benefit Plan, Benefit Obligation | 277.4 | 224.9 | 250.1 | 277.4 | 224.9 | ||
Defined Benefit Plan, Funded Status of Plan | (47.9) | (32) | (47.9) | ||||
Company contributions | 19.1 | 8.3 | |||||
Accumulated Benefit Obligation | 275.2 | 248.1 | 275.2 | ||||
Expected future benefit Payments in 2016 | 9.1 | ||||||
Other Pension Plan [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Accumulated other comprehensive loss | 7.8 | £ 5.3 | |||||
Pension Plans, Foreign [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Plan assets at fair value | 232.2 | 222.9 | 228.1 | 232.2 | 222.9 | ||
Lump sum settlement payment | 0 | 0 | |||||
Defined Benefit Plan, Benefit Obligation | 278.6 | $ 242.9 | 266 | 278.6 | $ 242.9 | ||
Defined Benefit Plan, Funded Status of Plan | (46.4) | (37.9) | (46.4) | ||||
Company contributions | 18.6 | 7.7 | |||||
Accumulated Benefit Obligation | $ 241.4 | 235.7 | $ 241.4 | ||||
Expected future benefit Payments in 2016 | $ 6.3 | ||||||
Scenario, Forecast [Member] | Pension Plans, Domestic [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Estimated Company contribution to plans | $ 9.9 | ||||||
Scenario, Forecast [Member] | Other Pension Plan [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Expected future benefit Payments in 2016 | 0.8 | ||||||
Scenario, Forecast [Member] | Pension Plans, Foreign [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Estimated Company contribution to plans | $ 7.2 | ||||||
Minimum [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Defined contribution discretionary contribution percentage | 2.00% | ||||||
Maximum [Member] | |||||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||||||
Defined contribution discretionary contribution percentage | 2.50% |
PENSION PLANS, POST-RETIREMEN67
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Weighted Average Percentage of Actual and Target Asset Allocation (Detail) | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
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% | |
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% | 100.00% |
Large capitalization U.S. stocks [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 23.00% | 22.80% |
Allocation Guidelines, Minimum | 17.00% | |
Allocation Guidelines, Target | 22.00% | |
Allocation Guidelines, Maximum | 27.00% | |
Small to mid capitalization U.S. stocks [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 27.10% | 27.70% |
Allocation Guidelines, Minimum | 20.00% | |
Allocation Guidelines, Target | 30.00% | |
Allocation Guidelines, Maximum | 40.00% | |
Emerging Market Equity [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 7.60% | 8.90% |
Allocation Guidelines, Minimum | 5.00% | |
Allocation Guidelines, Target | 10.00% | |
Allocation Guidelines, Maximum | 15.00% | |
Equity Securities [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 57.70% | 59.40% |
Allocation Guidelines, Target | 62.00% | |
Equity Securities [Member] | Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 43.00% | 46.00% |
Allocation Guidelines, Target | 44.00% | 48.00% |
Fixed Income Investments [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 37.90% | 37.10% |
Allocation Guidelines, Minimum | 31.00% | |
Allocation Guidelines, Target | 38.00% | |
Allocation Guidelines, Maximum | 45.00% | |
Fixed Income Investments [Member] | Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 22.00% | 47.00% |
Allocation Guidelines, Target | 22.00% | 45.00% |
Other Investments [Member] | Pension Plans, Domestic [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 4.40% | 3.50% |
Allocation Guidelines, Minimum | 0.00% | |
Allocation Guidelines, Target | 0.00% | |
Allocation Guidelines, Maximum | 10.00% | |
Other Investments [Member] | Pension Plans, Foreign [Member] | ||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||
Allocation of Plan Assets | 35.00% | 7.00% |
Allocation Guidelines, Target | 34.00% | 7.00% |
PENSION PLANS, POST-RETIREMEN68
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Summary of Changes in Accumulated Other Comprehensive Income for Defined Benefit Plans (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
Disclosure Pension Plans Post Retirement Benefits And Other Benefits Summary Of Changes In Accumulated Other Comprehensive Income For Defined Benefit Plans [Abstract] | ||
Beginning balance | $ 106.8 | $ 32.3 |
Recognized prior service cost | 9.1 | 4.6 |
Recognized net actuarial gain | (8.3) | (3.5) |
Prior service credit arising in current year | (29.8) | (3.1) |
Net actuarial loss (gain) arising in current year | 34.7 | 76.5 |
Ending balance | $ 112.5 | $ 106.8 |
PENSION PLANS, POST-RETIREMEN69
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Accumulated Other Comprehensive Income for Benefit Plans (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 |
Disclosure Pension Plans Postretirement Benefits And Other Benefits Accumulated Other Comprehensive Income For Benefit Plans [Abstract] | |||
Prior service credit | $ (25) | $ (34.2) | |
Net actuarial loss | 137.5 | 140.9 | |
Transitional obligation | 0 | 0.1 | |
Ending balance in Accumulated Other Comprehensive Income | $ 112.5 | $ 106.8 | $ 32.3 |
PENSION PLANS, POST-RETIREMEN70
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) $ in Millions | 12 Months Ended |
Jan. 01, 2016USD ($) | |
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) |
Amortization of actuarial loss | 8.6 |
Total amortization expected | $ 4.6 |
PENSION PLANS, POST-RETIREMEN71
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Reconciliation of Funded Status of Pension Plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 03, 2014 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Jan. 01, 2016 | Jan. 02, 2015 | |
Change in projected benefit obligation: | ||||||
Beginning balance | $ 556 | $ 467.8 | ||||
Service cost | 10.5 | 9.6 | ||||
Interest cost | 20.7 | 21.4 | ||||
Actuarial (gain) loss | (20.3) | 97.4 | ||||
Plan amendment | 0 | (0.1) | ||||
Lump sum settlement | $ (36.2) | (10.2) | 0 | |||
Benefits paid from plan assets | (14.8) | (20.4) | ||||
Benefits paid from Company assets | (0.8) | (0.8) | ||||
Plan participants contributions | 0.2 | 0.3 | ||||
Foreign currency exchange rate changes | (24.3) | (19.2) | ||||
Impact due to curtailment | (1.2) | 0 | ||||
Special termination benefits | 0.3 | 0 | ||||
Ending balance | 467.8 | 516.1 | 556 | $ 467.8 | ||
Change in plan assets at fair value: | ||||||
Beginning balance | 461.7 | 436.7 | ||||
Actual return on plan assets | (8.4) | 45 | ||||
Company contributions to plan assets | 34 | 37.7 | 16 | |||
Benefits paid from assets | (25) | (20.4) | ||||
Plan participants contributions | 0.2 | 0.3 | ||||
Foreign currency exchange rate changes | (20) | (15.9) | ||||
Ending balance | 436.7 | 446.2 | 461.7 | 436.7 | ||
Reconciliation of funded status: | ||||||
Projected benefit obligation | (467.8) | (556) | (467.8) | (467.8) | $ (516.1) | $ (556) |
Plan assets at fair value | 436.7 | 461.7 | 436.7 | 436.7 | 446.2 | 461.7 |
Funded status | (69.9) | (94.3) | ||||
Accrued Benefit cost related to two non-qualified plan | 16.2 | 16.8 | ||||
Noncurrent asset | 0.3 | 5 | ||||
Current liability | (0.9) | (0.8) | ||||
Noncurrent liability | (69.3) | (98.5) | ||||
Funded status | $ (69.9) | $ (94.3) | ||||
Weighted-average assumptions used for measurement of the projected benefit obligation: | ||||||
Discount rate | 3.98% | 3.79% | ||||
Projected Benefit Obligation [Member] | ||||||
Weighted-average assumptions used for measurement of the projected benefit obligation: | ||||||
Discount rate | 3.98% | 3.79% | ||||
Salary growth rate | 3.75% | 3.79% | ||||
Pension Plans, Domestic [Member] | ||||||
Change in projected benefit obligation: | ||||||
Beginning balance | 277.4 | 224.9 | ||||
Service cost | 3.9 | 3.7 | ||||
Interest cost | 11.6 | 10.8 | 9.6 | |||
Actuarial (gain) loss | (24.3) | 45.3 | ||||
Plan amendment | 0 | 0 | ||||
Lump sum settlement | (10.2) | 0 | ||||
Benefits paid from plan assets | (7.3) | (6.5) | ||||
Benefits paid from Company assets | (0.8) | (0.8) | ||||
Plan participants contributions | 0 | 0 | ||||
Foreign currency exchange rate changes | 0 | 0 | ||||
Impact due to curtailment | (0.5) | 0 | ||||
Special termination benefits | 0.3 | 0 | ||||
Ending balance | 224.9 | 250.1 | 277.4 | 224.9 | ||
Change in plan assets at fair value: | ||||||
Beginning balance | 229.5 | 213.8 | ||||
Actual return on plan assets | (13) | 13.9 | ||||
Company contributions to plan assets | 19.1 | 8.3 | ||||
Benefits paid from assets | (17.5) | (6.5) | ||||
Plan participants contributions | 0 | 0 | ||||
Foreign currency exchange rate changes | 0 | 0 | ||||
Ending balance | 213.8 | 218.1 | 229.5 | 213.8 | ||
Reconciliation of funded status: | ||||||
Projected benefit obligation | (224.9) | (277.4) | (224.9) | (224.9) | $ (250.1) | $ (277.4) |
Plan assets at fair value | 213.8 | 229.5 | 213.8 | 213.8 | 218.1 | 229.5 |
Funded status | (32) | (47.9) | ||||
Noncurrent asset | 0 | 0 | ||||
Current liability | (0.9) | (0.8) | ||||
Noncurrent liability | (31.1) | (47.1) | ||||
Funded status | $ (32) | $ (47.9) | ||||
Pension Plans, Domestic [Member] | Projected Benefit Obligation [Member] | ||||||
Weighted-average assumptions used for measurement of the projected benefit obligation: | ||||||
Discount rate | 4.65% | 4.14% | ||||
Salary growth rate | 4.60% | 4.60% | ||||
Pension Plans, Foreign [Member] | ||||||
Change in projected benefit obligation: | ||||||
Beginning balance | 278.6 | 242.9 | ||||
Service cost | 6.6 | 5.9 | ||||
Interest cost | 9.1 | 10.6 | 9.4 | |||
Actuarial (gain) loss | 4 | 52.1 | ||||
Plan amendment | 0 | (0.1) | ||||
Lump sum settlement | 0 | 0 | ||||
Benefits paid from plan assets | (7.5) | (13.9) | ||||
Benefits paid from Company assets | 0 | 0 | ||||
Plan participants contributions | 0.2 | 0.3 | ||||
Foreign currency exchange rate changes | (24.3) | (19.2) | ||||
Impact due to curtailment | (0.7) | 0 | ||||
Special termination benefits | 0 | 0 | ||||
Ending balance | 242.9 | 266 | 278.6 | 242.9 | ||
Change in plan assets at fair value: | ||||||
Beginning balance | 232.2 | 222.9 | ||||
Actual return on plan assets | 4.6 | 31.1 | ||||
Company contributions to plan assets | 18.6 | 7.7 | ||||
Benefits paid from assets | (7.5) | (13.9) | ||||
Plan participants contributions | 0.2 | 0.3 | ||||
Foreign currency exchange rate changes | (20) | (15.9) | ||||
Ending balance | 222.9 | 228.1 | 232.2 | 222.9 | ||
Reconciliation of funded status: | ||||||
Projected benefit obligation | (242.9) | (278.6) | (242.9) | (242.9) | $ (266) | $ (278.6) |
Plan assets at fair value | $ 222.9 | $ 232.2 | $ 222.9 | $ 222.9 | 228.1 | 232.2 |
Funded status | (37.9) | (46.4) | ||||
Noncurrent asset | 0.3 | 5 | ||||
Current liability | 0 | 0 | ||||
Noncurrent liability | (38.2) | (51.4) | ||||
Funded status | $ (37.9) | $ (46.4) | ||||
Pension Plans, Foreign [Member] | Projected Benefit Obligation [Member] | ||||||
Weighted-average assumptions used for measurement of the projected benefit obligation: | ||||||
Discount rate | 3.35% | 3.44% | ||||
Salary growth rate | 3.08% | 3.12% |
PENSION PLANS, POST-RETIREMEN72
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Components of Net Periodic Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Components of net periodic cost: | |||
Interest cost | $ 20.7 | $ 21.4 | |
Net periodic cost (benefit) | 11.4 | 4.6 | $ 16.7 |
Pension Plans, Domestic [Member] | |||
Components of net periodic cost: | |||
Service cost | 5.2 | 4.8 | 8.5 |
Interest cost | 11.6 | 10.8 | 9.6 |
Expected return on plan assets | (15.1) | (13.9) | (11.8) |
Net amortization | 1.3 | (2.2) | 3.1 |
Net periodic cost (benefit) | 3 | (0.5) | 9.4 |
Pension Plans, Foreign [Member] | |||
Components of net periodic cost: | |||
Service cost | 6.6 | 5.9 | 6.7 |
Interest cost | 9.1 | 10.6 | 9.4 |
Expected return on plan assets | (10.5) | (12.5) | (10.5) |
Net amortization | 2.9 | 1.1 | 1.7 |
Net periodic cost (benefit) | 8.1 | 5.1 | 7.3 |
Continuing Operations [Member] | |||
Components of net periodic cost: | |||
Service cost | 11.8 | 10.7 | 15.2 |
Interest cost | 20.7 | 21.4 | 19 |
Expected return on plan assets | (25.6) | (26.4) | (22.3) |
Net amortization | 4.2 | (1.1) | 4.8 |
Net periodic cost (benefit) | $ 11.1 | $ 4.6 | $ 16.7 |
PENSION PLANS, POST-RETIREMEN73
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Weighted-average Assumption Used To Measure Net Periodic Cost (Detail) | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Expected return on plan assets | 5.63% | ||
Net Periodic Benefit Cost [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount Rate | 3.79% | 4.64% | 4.08% |
Expected return on plan assets | 5.63% | 6.08% | 5.86% |
Salary growth rate | 3.79% | 4.04% | 3.62% |
Pension Plans, Domestic [Member] | Net Periodic Benefit Cost [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount Rate | 4.14% | 4.81% | 3.93% |
Expected return on plan assets | 6.50% | 6.50% | 6.50% |
Salary growth rate | 4.60% | 4.63% | 3.90% |
Pension Plans, Foreign [Member] | Net Periodic Benefit Cost [Member] | |||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |||
Discount Rate | 3.44% | 4.49% | 4.23% |
Expected return on plan assets | 4.77% | 5.67% | 5.27% |
Salary growth rate | 3.12% | 3.27% | 3.13% |
PENSION PLANS, POST-RETIREMEN74
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | $ 446.2 | $ 461.7 | $ 436.7 | |
Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 13.9 | 9.3 | ||
Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 162.9 | 176 | ||
Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 61.2 | 68.3 | ||
Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 44 | 82.2 | ||
Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 89.5 | 111.3 | ||
Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 74.5 | 14.5 | ||
Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0.2 | 0.1 | ||
Level 1 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 139.7 | 150 | ||
Level 1 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 13.9 | 9.3 | ||
Level 1 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 109.2 | 116.3 | ||
Level 1 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 16.6 | 22.6 | ||
Level 1 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 1 | ||
Level 1 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0.7 | ||
Level 1 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 1 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0.1 | ||
Level 2 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 247.6 | 311.7 | ||
Level 2 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 2 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 53.7 | 59.7 | ||
Level 2 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 44.6 | 45.7 | ||
Level 2 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 44 | 81.2 | ||
Level 2 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 89.5 | 110.6 | ||
Level 2 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 15.6 | 14.5 | ||
Level 2 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0.2 | 0 | ||
Level 3 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 58.9 | 0 | ||
Level 3 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 3 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 3 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 3 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 3 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Level 3 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 58.9 | 0 | ||
Level 3 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 218.1 | 229.5 | 213.8 | |
Pension Plans, Domestic [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 9.7 | 8.1 | ||
Pension Plans, Domestic [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 109.2 | 116 | ||
Pension Plans, Domestic [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 16.6 | 20.4 | ||
Pension Plans, Domestic [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 2.9 | 1.5 | ||
Pension Plans, Domestic [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 79.7 | 83.5 | ||
Pension Plans, Domestic [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 135.5 | 144.5 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 9.7 | 8.1 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 109.2 | 116 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | [1] | 16.6 | 20.4 | |
Pension Plans, Domestic [Member] | Level 1 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 1 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 82.6 | 85 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | [1] | 0 | 0 | |
Pension Plans, Domestic [Member] | Level 2 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 2.9 | 1.5 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 79.7 | 83.5 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 2 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Domestic [Member] | Level 3 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 228.1 | 232.2 | $ 222.9 | |
Pension Plans, Foreign [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 4.2 | 1.2 | ||
Pension Plans, Foreign [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 53.7 | 60 | ||
Pension Plans, Foreign [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | [1] | 44.6 | 47.9 | |
Pension Plans, Foreign [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 41.1 | 80.7 | ||
Pension Plans, Foreign [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 9.8 | 27.8 | ||
Pension Plans, Foreign [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 74.5 | 14.5 | ||
Pension Plans, Foreign [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0.2 | 0.1 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 4.2 | 5.5 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 4.2 | 1.2 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0.3 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | [1] | 0 | 2.2 | |
Pension Plans, Foreign [Member] | Level 1 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 1 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0.7 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | Level 1 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0.1 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 165 | 226.7 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 53.7 | 59.7 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | [1] | 44.6 | 45.7 | |
Pension Plans, Foreign [Member] | Level 2 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 41.1 | 79.7 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 9.8 | 27.1 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 15.6 | 14.5 | ||
Pension Plans, Foreign [Member] | Level 2 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0.2 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 58.9 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | Cash and Short-Term Investments [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | Equity Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | Equity Securities International [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | [1] | 0 | 0 | |
Pension Plans, Foreign [Member] | Level 3 [Member] | Fixed Income Securities Domestic [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | Corporate Bonds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 0 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | Insurance Funds [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | 58.9 | 0 | ||
Pension Plans, Foreign [Member] | Level 3 [Member] | Other [Member] | ||||
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | ||||
Plan assets at fair value | $ 0 | $ 0 | ||
[1] | Investment in funds outside the country where the pension plan originates is considered International. |
PENSION PLANS, POST-RETIREMEN75
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) $ in Millions | 12 Months Ended |
Jan. 01, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | $ 461.7 |
Ending balance | 446.2 |
Level 3 [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 0 |
Net purchases, Issuances, and settlements | 58.9 |
Ending balance | 58.9 |
Insurance Funds [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 14.5 |
Ending balance | 74.5 |
Insurance Funds [Member] | Level 3 [Member] | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Beginning balance | 0 |
Net purchases, Issuances, and settlements | 58.9 |
Ending balance | $ 58.9 |
PENSION PLANS, POST-RETIREMEN76
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS - Estimated Future Benefits Payments (Detail) $ in Millions | Jan. 01, 2016USD ($) |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2,016 | $ 15.4 |
2,017 | 16.9 |
2,018 | 17.7 |
2,019 | 18.5 |
2,020 | 19.4 |
2021-2025 | 112.7 |
Total | 200.6 |
Pension Plans, Domestic [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2,016 | 9.1 |
2,017 | 9.9 |
2,018 | 10.7 |
2,019 | 11.5 |
2,020 | 12.3 |
2021-2025 | 71.7 |
Total | 125.2 |
Pension Plans, Foreign [Member] | |
Pension Plans, Postretirement and Other Employee Benefits [Line Items] | |
2,016 | 6.3 |
2,017 | 7 |
2,018 | 7 |
2,019 | 7 |
2,020 | 7.1 |
2021-2025 | 41 |
Total | $ 75.4 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | Jan. 02, 2014 | Nov. 25, 2013 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
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 | 33,278,130 | 33,141,950 | ||||
Dividend declared per common share (in dollars per share) | $ 5 | $ 5 | $ 0 | $ 0 | $ 5 | |
Dividend declared on common stock | $ 166.5 | $ 166.5 | ||||
Dividend declared recorded as a reduction to retained earnings | $ 164.2 | |||||
Dividends Payable | 2.3 | |||||
Special dividend make-whole payments | $ 1.1 | 1.7 | 1.5 | |||
Number of shares available for grant | 1,700,000 | |||||
Stock-based compensation | $ 14.5 | 13.8 | $ 13.6 | |||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average exercise price of outstanding options | $ 54.70 | |||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average exercise price of outstanding options | $ 51.61 | |||||
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 | |||||
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 | $ 11.3 | 10.2 | $ 9.5 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value | $ 13.4 | 12.2 | ||||
Share based compensation arrangement by share based payment award units outstanding weighted average remaining contractual term | 2 years 2 months | |||||
Share-based Compensation Arrangement By Share-based Payment Award Units Converted Aggregate Intrinsic Value | $ 12.8 | 21 | 14.6 | |||
Share-based Compensation Arrangement By Share-based Payment Award Units Outstanding Aggregate Intrinsic Value | 44.9 | 60.7 | 67.7 | |||
Share based compensation arrangement by share based payment award units convertible aggregate intrinsic value | $ 18.6 | 25 | 27.1 | |||
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 | $ 2 | $ 1.9 | $ 1.9 | |||
Employee stock option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Average exercise price of outstanding options | $ 49 | $ 49 | $ 47.93 | $ 50.14 | ||
Share based compensation arrangement by share based payment award, award vesting period | 4 years | |||||
Stock-based compensation | $ 0.9 | $ 1.3 | $ 1.7 | |||
Share based compensation arrangement by share based payment award options expire period after grant date | 10 years | |||||
Share based compensation arrangement by share based payment award options grants in period grant date fair market value | 1.6 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested in Period, Fair Value | $ 1.7 | 1.7 | 2 | |||
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. | |||||
Options, Outstanding, Weighted Average Remaining Contractual Term | 5 years | |||||
Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 7 months | |||||
Options, Exercises in Period, Total Intrinsic Value | 7.9 | 2.8 | ||||
Options, Outstanding, Intrinsic Value | $ 19.6 | 20.9 | 29 | |||
Options, Exercisable, Intrinsic Value | 15.9 | 17.7 | $ 22.4 | |||
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 | $ 15.7 | $ 0.5 | ||||
Total unrecognized compensation cost, weighted average period | 1 year 7 months | 1 year 1 month |
STOCKHOLDERS' EQUITY - Activity
STOCKHOLDERS' EQUITY - Activity Under the Director and Employee Stock Unit Plans (Detail) - $ / shares | 12 Months Ended | |||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | ||
Director Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning Balance | [1] | 283,300 | 302,500 | 271,900 |
Granted | [1] | 32,200 | 20,300 | 30,600 |
Converted | [1] | (7,700) | (39,500) | 0 |
Cancelled | [1] | 0 | 0 | 0 |
Ending Balance | [1] | 307,800 | 283,300 | 302,500 |
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 | [2] | $ 51.42 | $ 47.81 | $ 44.62 |
Granted, Weighted Average Grant Date Value | [2] | 63.99 | 93.26 | 76.13 |
Converted, Weighted Average Grant Date Value | [2] | 59.56 | 45.82 | 0 |
Cancelled, Weighted Average Grant Date Value | [2] | 0 | 0 | 0 |
Ending Balance, Weighted Average Grant Date Value | [2] | $ 52.53 | $ 51.42 | $ 47.81 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning Balance | [3] | 405,100 | 453,300 | 518,200 |
Granted | [3] | 217,000 | 126,800 | 167,500 |
Converted | [3] | (157,600) | (163,100) | (213,600) |
Cancelled | [3] | (28,400) | (11,900) | (18,800) |
Ending Balance | [3] | 436,100 | 405,100 | 453,300 |
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 | [2] | $ 80.65 | $ 65.64 | $ 56.68 |
Granted, Weighted Average Grant Date Value | [2] | 75.53 | 106.90 | 68.64 |
Converted, Weighted Average Grant Date Value | [2] | 71.71 | 59.92 | 46.19 |
Cancelled, Weighted Average Grant Date Value | [2] | 77.15 | 72.53 | 66.63 |
Ending Balance, Weighted Average Grant Date Value | [2] | $ 81.56 | $ 80.65 | $ 65.64 |
[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 - Weighted
STOCKHOLDERS' EQUITY - Weighted-average fair value of stock options granted valuation assumption (Detail) | 12 Months Ended |
Jan. 03, 2014$ / shares | |
Expected Stock Price Volatility | 42.00% |
Risk-Free Interest Rate | 1.10% |
Expected Dividend Yield | 0.00% |
Average Expected Term | 6 years 1 month 17 days |
Resulting Black Scholes Value | $ 28.57 |
STOCKHOLDERS' EQUITY - Activi80
STOCKHOLDERS' EQUITY - Activity Under the Employee Option Plans (Detail) - Employee stock option [Member] - $ / shares | 12 Months Ended | ||||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||
Beginning Balance | 533,000 | 695,400 | 749,000 | ||
Adjusted | [1] | 39,400 | |||
Granted | 56,000 | ||||
Exercised | 0 | (162,400) | (149,000) | ||
Ending Balance | 533,000 | 533,000 | 695,400 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||||
Beginning Balance, Weighted-Average Exercise Price | $ 49 | $ 47.93 | $ 50.14 | ||
Adjusted, Weighted-Average Exercise Price | [1] | 47.91 | |||
Granted, Weighted-Average Exercise Price | 68.64 | ||||
Exercised, Weighted-Average Exercise Price | 0 | 44.40 | 54.17 | ||
Ending Balance, Weighted-Average Exercise Price | $ 49 | $ 49 | $ 47.93 | ||
Options exercisable at year-end | 472,500 | 405,600 | 486,100 | [1] | |
Options exercisable at year-end Weighted-Average Exercise Price: | $ 47.15 | $ 44.65 | $ 43.62 | [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
STOCKHOLDERS' EQUITY - Changes to Unvested Employee Stock Units And Options (Detail) - Unvested Employee Stock Options [Member] | 12 Months Ended | |
Jan. 01, 2016$ / sharesshares | ||
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 | shares | 127,400 | [1] |
Vested | shares | (66,900) | [1] |
Non-vested Shares Ending Balance | shares | 60,500 | [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 | $ / shares | $ 25.84 | |
Vested, Weighted-Average Grant Date Fair Value | $ / shares | 25.53 | |
Non-vested Ending Balance, Weighted-Average Grant Date Fair Value | $ / shares | $ 26.18 | |
[1] | All unvested stock options are expected to vest. |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Segment Reporting Information [Line Items] | ||||||
Acquisition and integration costs | $ 4.1 | $ 8.1 | $ 1 | $ 13.2 | $ 7.5 | |
Single customer percentage of sales maximum | 0.02 | |||||
Net property and equipment | 131.8 | $ 131.8 | 104.2 | |||
UNITED STATES | ||||||
Segment Reporting Information [Line Items] | ||||||
Domestic sales | 4,137.9 | 3,287.4 | $ 3,140.3 | |||
Net property and equipment | $ 110.2 | 110.2 | ||||
CANADA | ||||||
Segment Reporting Information [Line Items] | ||||||
Domestic sales | 699.4 | 770.3 | $ 762.4 | |||
Operating Income (Loss) [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Acquisition and integration costs | 13.2 | 7.2 | ||||
Operating Income (Loss) [Member] | Corporate [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Acquisition and integration costs | $ 13 | $ 0 |
BUSINESS SEGMENTS - Segment Inf
BUSINESS SEGMENTS - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Jan. 01, 2016 | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | [4] | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | [7] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | $ 1,835.8 | [1] | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 1,451.8 | $ 1,438 | $ 1,342.9 | $ 1,274.3 | $ 6,190.5 | $ 5,507 | $ 5,291.1 | ||||||||||
Operating income | 65.8 | [1] | $ 78.2 | $ 64.5 | $ 59.3 | 80.4 | $ 82.5 | $ 77.2 | $ 70 | 267.8 | 310.1 | 310.9 | ||||||||||
Depreciation | 23.8 | 24 | 22.1 | |||||||||||||||||||
Amortization of intangibles | 25.4 | 11.7 | 8 | |||||||||||||||||||
Total assets | 4,142 | 3,580.8 | 4,142 | 3,580.8 | ||||||||||||||||||
Capital expenditures | 28.6 | 40.3 | 32.2 | |||||||||||||||||||
Network and Security Solutions [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 3,924.4 | 3,481.2 | [8] | 3,247.2 | ||||||||||||||||||
Operating income | 189.4 | 182.8 | [8] | 167.1 | ||||||||||||||||||
Depreciation | 13.7 | 12.5 | [8] | 11.5 | ||||||||||||||||||
Amortization of intangibles | 14.7 | 4.9 | [8] | 0.8 | ||||||||||||||||||
Total assets | 1,902.8 | 1,867.2 | [8] | 1,902.8 | 1,867.2 | [8] | 1,220 | |||||||||||||||
Capital expenditures | 3 | 2.6 | [8] | 2.1 | ||||||||||||||||||
Electrical and Electronic Solutions [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 1,930.2 | [9] | 2,025.8 | 2,043.9 | ||||||||||||||||||
Operating income | 92.5 | [9] | 139 | 155.2 | ||||||||||||||||||
Depreciation | 7 | [9] | 7.5 | 7.1 | ||||||||||||||||||
Amortization of intangibles | 6.3 | [9] | 5.7 | 5.9 | ||||||||||||||||||
Total assets | 1,071.4 | [9] | 972.4 | 1,071.4 | [9] | 972.4 | 938.3 | |||||||||||||||
Capital expenditures | 1 | [9] | 1.3 | 1 | ||||||||||||||||||
Utility Power Solutions [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 335.9 | [9] | 0 | 0 | ||||||||||||||||||
Operating income | 10.4 | [9] | 0 | 0 | ||||||||||||||||||
Depreciation | 1.1 | [9] | 0 | 0 | ||||||||||||||||||
Amortization of intangibles | 3.9 | [9] | 0 | 0 | ||||||||||||||||||
Total assets | 813.4 | [9] | 0 | 813.4 | [9] | 0 | 0 | |||||||||||||||
Capital expenditures | 0.8 | [9] | 0 | 0 | ||||||||||||||||||
Corporate [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | [10] | 0 | 0 | 0 | ||||||||||||||||||
Operating income | [10] | (24.5) | (11.7) | (11.4) | ||||||||||||||||||
Depreciation | [10] | 0.4 | 0 | 0 | ||||||||||||||||||
Amortization of intangibles | [10] | 0 | 0 | 0 | ||||||||||||||||||
Total assets | [10] | 350.6 | 334.3 | 350.6 | 334.3 | 279.1 | ||||||||||||||||
Capital expenditures | [10] | 21.9 | 30.3 | 24.2 | ||||||||||||||||||
Continuing Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 6,190.5 | 5,507 | 5,291.1 | |||||||||||||||||||
Operating income | 267.8 | 310.1 | 310.9 | |||||||||||||||||||
Depreciation | 22.2 | 20 | 18.6 | |||||||||||||||||||
Amortization of intangibles | 24.9 | 10.6 | 6.7 | |||||||||||||||||||
Total assets | $ 4,138.2 | $ 3,173.9 | 4,138.2 | 3,173.9 | 2,437.4 | |||||||||||||||||
Capital expenditures | $ 26.7 | $ 34.2 | $ 27.3 | |||||||||||||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | |||||||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | |||||||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | |||||||||||||||||||||
[6] | 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 | |||||||||||||||||||||
[7] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. | |||||||||||||||||||||
[8] | At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the NSS business segments. For further information, see Note 3. "Business Combinations" . | |||||||||||||||||||||
[9] | At the beginning of the fourth quarter of 2015, we acquired Power Solutions which is reported in both the EES and UPS business segments. For further information, see Note 3. "Business Combinations" . | |||||||||||||||||||||
[10] | Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. |
BUSINESS SEGMENTS - Schedule of
BUSINESS SEGMENTS - Schedule of Segment Reporting Operating Income (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Jan. 01, 2016 | Jan. 02, 2015 | |
Segment Operating Income [Line Items] | |||||
Acquisition and integration costs | $ 4.1 | $ 8.1 | $ 1 | $ 13.2 | $ 7.5 |
Latin America assets write-off | $ 9.1 | 2.6 | 11.7 | ||
Write-off of capitalized software | 3.1 | (3.1) | |||
Dilapidation provision | 1.7 | 1.7 | |||
Pension Divestiture Costs | $ 0.4 | 0.4 | |||
Operating Income (Loss) [Member] | |||||
Segment Operating Income [Line Items] | |||||
Acquisition and integration costs | 13.2 | 7.2 | |||
Latin America assets write-off | 11.7 | ||||
Restructuring Charges | 8.2 | ||||
Write-off of capitalized software | 3.1 | ||||
Dilapidation provision | 1.7 | ||||
Pension Divestiture Costs | 0.4 | ||||
Other Operating Income | 38.3 | ||||
Operating Income (Loss) [Member] | Network and Security Solutions [Member] | |||||
Segment Operating Income [Line Items] | |||||
Acquisition and integration costs | 0 | 7 | |||
Latin America assets write-off | 10.7 | ||||
Restructuring Charges | 4 | ||||
Write-off of capitalized software | 1.9 | ||||
Dilapidation provision | 0.9 | ||||
Pension Divestiture Costs | 0.3 | ||||
Other Operating Income | 17.8 | ||||
Operating Income (Loss) [Member] | Electrical and Electronic Solutions [Member] | |||||
Segment Operating Income [Line Items] | |||||
Acquisition and integration costs | 0 | 0.2 | |||
Latin America assets write-off | 1 | ||||
Restructuring Charges | 4 | ||||
Write-off of capitalized software | 0.9 | ||||
Dilapidation provision | 0.8 | ||||
Pension Divestiture Costs | 0.1 | ||||
Other Operating Income | 6.8 | ||||
Operating Income (Loss) [Member] | Utility Power Solutions [Member] | |||||
Segment Operating Income [Line Items] | |||||
Acquisition and integration costs | 0.2 | 0 | |||
Latin America assets write-off | 0 | ||||
Restructuring Charges | 0.1 | ||||
Write-off of capitalized software | 0 | ||||
Dilapidation provision | 0 | ||||
Pension Divestiture Costs | 0 | ||||
Other Operating Income | 0.3 | ||||
Operating Income (Loss) [Member] | Corporate [Member] | |||||
Segment Operating Income [Line Items] | |||||
Acquisition and integration costs | 13 | $ 0 | |||
Latin America assets write-off | 0 | ||||
Restructuring Charges | 0.1 | ||||
Write-off of capitalized software | 0.3 | ||||
Dilapidation provision | 0 | ||||
Pension Divestiture Costs | 0 | ||||
Other Operating Income | $ 13.4 |
BUSINESS SEGMENTS - Summary of
BUSINESS SEGMENTS - Summary of Net Sales and Property, Plant and Equipment and Total Assets by Geographic areas (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 01, 2016 | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | [4] | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | [7] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | ||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||||
Net sales | $ 1,835.8 | [1] | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 1,451.8 | $ 1,438 | $ 1,342.9 | $ 1,274.3 | $ 6,190.5 | $ 5,507 | $ 5,291.1 | ||||||
% of Total Net Sales | 100.00% | 100.00% | 100.00% | |||||||||||||||
Total assets | 4,142 | 3,580.8 | $ 4,142 | $ 3,580.8 | ||||||||||||||
Net property and equipment | 131.8 | 104.2 | 131.8 | 104.2 | ||||||||||||||
Continuing Operations [Member] | ||||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||||
Net sales | 6,190.5 | 5,507 | $ 5,291.1 | |||||||||||||||
Total assets | 4,138.2 | 3,173.9 | 4,138.2 | 3,173.9 | 2,437.4 | |||||||||||||
North America [Member] | ||||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||||
Net sales | $ 4,837.3 | $ 4,057.7 | $ 3,902.7 | |||||||||||||||
% of Total Net Sales | 78.20% | 73.70% | 73.80% | |||||||||||||||
Total assets | 3,371.2 | 2,395.5 | $ 3,371.2 | $ 2,395.5 | ||||||||||||||
Net property and equipment | 115.7 | 87.7 | 115.7 | 87.7 | ||||||||||||||
Europe [Member] | ||||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||||
Net sales | $ 601.9 | $ 648.5 | $ 623.2 | |||||||||||||||
% of Total Net Sales | 9.70% | 11.80% | 11.80% | |||||||||||||||
Total assets | 252.9 | 238.9 | $ 252.9 | $ 238.9 | ||||||||||||||
Net property and equipment | 9.9 | 10.3 | 9.9 | 10.3 | ||||||||||||||
Emerging Markets [Member] | ||||||||||||||||||
Net Sales And Long Lived Assets By Geographical Areas [Line Items] | ||||||||||||||||||
Net sales | $ 751.3 | $ 800.8 | $ 765.2 | |||||||||||||||
% of Total Net Sales | 12.10% | 14.50% | 14.40% | |||||||||||||||
Total assets | 514.1 | 539.5 | $ 514.1 | $ 539.5 | ||||||||||||||
Net property and equipment | $ 6.2 | $ 6.2 | $ 6.2 | $ 6.2 | ||||||||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | |||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | |||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | |||||||||||||||||
[6] | 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 | |||||||||||||||||
[7] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. |
BUSINESS SEGMENTS - Changes in
BUSINESS SEGMENTS - Changes in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |||||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | ||||
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | $ 582.3 | $ 342.1 | ||||
Acquisition related | 188.7 | [1] | 244.8 | [2],[3] | ||
Foreign currency translation | (14.5) | (4.6) | ||||
Goodwill, Ending Balance | 756.5 | 582.3 | $ 342.1 | |||
Total purchase price, net of cash acquired and working capital adjustment | 822.5 | 418.4 | 0 | |||
Network and Security Solutions [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 403.4 | 162.5 | ||||
Acquisition related | [1] | (1.3) | ||||
Acquisition related | [2],[3] | 243.4 | ||||
Foreign currency translation | (8.8) | (2.5) | ||||
Goodwill, Ending Balance | 393.3 | 403.4 | 162.5 | |||
Electrical and Electronic Solutions [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 178.9 | 179.6 | ||||
Acquisition related | [2],[3] | 1.4 | ||||
Acquisition related | [1] | 34.7 | ||||
Foreign currency translation | (1.7) | (2.1) | ||||
Goodwill, Ending Balance | 211.9 | 178.9 | 179.6 | |||
Utility Power Solutions [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Goodwill, Beginning Balance | 0 | 0 | ||||
Acquisition related | [2],[3] | 0 | ||||
Acquisition related | [1] | 155.3 | ||||
Foreign currency translation | (4) | 0 | ||||
Goodwill, Ending Balance | 151.3 | 0 | $ 0 | |||
Tri-Ed [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Acquisition related | 242.2 | |||||
Total purchase price, net of cash acquired and working capital adjustment | 418.4 | |||||
Cash and outstanding checks acquired | 11.6 | |||||
Net working capital adjustment | $ 2.2 | |||||
Power Solutions [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Acquisition related | 190 | |||||
Total purchase price, net of cash acquired and working capital adjustment | 824.7 | |||||
Cash and outstanding checks acquired | 11.7 | |||||
Net working capital adjustment | (3.8) | |||||
Power Solutions [Member] | Electrical and Electronic Solutions [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Acquisition related | 34.7 | |||||
Power Solutions [Member] | Utility Power Solutions [Member] | ||||||
Goodwill [Roll Forward] | ||||||
Acquisition related | $ 155.3 | |||||
[1] | At the beginning of the fourth quarter of 2015, we acquired the equity interest of certain subsidiaries of HD Supply, Inc. and certain assets that comprise Power Solutions in exchange for $824.7 million (net of cash and outstanding checks of $11.7 million and an unfavorable net working capital adjustment of $3.8 million based on preliminary calculations). | |||||
[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 $2.2 million. The acquisition resulted in the allocation of $243.4 million of the purchase price to goodwill. | |||||
[3] | In the first quarter of 2014, we recorded an immaterial reclassification adjustment between deferred tax liabilities and goodwill related to the purchase price allocation related to the acquisition of Jorvex. |
SUMMARIZED FINANCIAL INFORMAT87
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - Additional Information (Detail) | 12 Months Ended |
Jan. 01, 2016 | |
Disclosure Summarized Financial Information Of Anixter Inc Additional Information [Abstract] | |
Description of guarantees given by parent company | Anixter International Inc. guarantees, fully and unconditionally, substantially all of the debt of our subsidiaries, which include Anixter Inc., our 100% owned primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc.: |
SUMMARIZED FINANCIAL INFORMAT88
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED BALANCE SHEETS (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Assets: | ||||
Current assets | $ 2,727.8 | $ 2,589.8 | ||
Current assets of discontinued operations | 3.8 | 379.2 | ||
Property, equipment and capital leases, net | 131.8 | 104.2 | ||
Goodwill | 756.5 | 582.3 | $ 342.1 | |
Intangible assets, net | 453.8 | 202.7 | ||
Other assets | 72.1 | 101.8 | ||
Total assets | 4,142 | 3,580.8 | ||
Liabilities and Stockholder's Equity: | ||||
Current liabilities | 1,156.2 | 1,030.5 | ||
Current liabilities of discontinued operations | 5.3 | 108.8 | ||
Other liabilities | 163.5 | 215.3 | ||
Stockholder's equity | 1,179.4 | 1,133 | $ 1,027.4 | $ 969.9 |
Total liabilities and stockholders’ equity | 4,142 | 3,580.8 | ||
Anixter Inc. [Member] | ||||
Assets: | ||||
Current assets | 2,723.4 | 2,210.2 | ||
Current assets of discontinued operations | 3.8 | 379.2 | ||
Property, equipment and capital leases, net | 141.1 | 114.7 | ||
Goodwill | 756.5 | 582.3 | ||
Intangible assets, net | 453.8 | 202.7 | ||
Other assets | 72.1 | 101.8 | ||
Total assets | 4,150.7 | 3,590.9 | ||
Liabilities and Stockholder's Equity: | ||||
Current liabilities | 1,151.5 | 921.3 | ||
Current liabilities of discontinued operations | 5.3 | 108.8 | ||
Subordinated notes payable to parent | 0 | 1.5 | ||
Long-term debt | 1,655.6 | 1,216.1 | ||
Other liabilities | 161.1 | 212.4 | ||
Stockholder's equity | 1,177.2 | 1,130.8 | ||
Total liabilities and stockholders’ equity | $ 4,150.7 | $ 3,590.9 |
SUMMARIZED FINANCIAL INFORMAT89
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 01, 2016 | [1] | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | [4] | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | [7] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 1,451.8 | $ 1,438 | $ 1,342.9 | $ 1,274.3 | $ 6,190.5 | $ 5,507 | $ 5,291.1 | |||||||
Operating income | 65.8 | 78.2 | 64.5 | 59.3 | 80.4 | 82.5 | 77.2 | 70 | 267.8 | 310.1 | 310.9 | |||||||
Income from continuing operations before income taxes | 36.6 | 56.9 | 48.3 | 41.1 | 62.9 | 70.2 | 66.3 | 50.2 | 182.9 | 249.6 | 258.1 | |||||||
Net income from discontinued operations | (0.9) | (2.9) | 41.9 | (7.4) | 5.3 | 7.1 | 9.3 | 9.7 | ||||||||||
Net income | $ 4.6 | $ 32.5 | $ 71.4 | $ 19.1 | $ 41.1 | $ 52.5 | $ 53.8 | $ 47.4 | 127.6 | 194.8 | 200.5 | |||||||
Comprehensive income | 35.1 | 83.4 | 225.7 | |||||||||||||||
Anixter Inc. [Member] | ||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | ||||||||||||||||||
Net sales | 6,190.5 | 5,507 | 5,291.1 | |||||||||||||||
Operating income | 273.8 | 316 | 316.8 | |||||||||||||||
Income from continuing operations before income taxes | 187.9 | 254.3 | 265.3 | |||||||||||||||
Net income from discontinued operations | 30.7 | 31.4 | 25.5 | |||||||||||||||
Net income | 130.7 | 197.7 | 204.9 | |||||||||||||||
Comprehensive income | $ 38.2 | $ 86.3 | $ 230.1 | |||||||||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | |||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | |||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | |||||||||||||||||
[6] | 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 | |||||||||||||||||
[7] | 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. |
SELECTED QUARTERLY FINANCIAL 90
SELECTED QUARTERLY FINANCIAL DATA - Additional Information (Detail) $ / shares in Units, $ in Millions | Jan. 02, 2014$ / shares | Nov. 25, 2013$ / shares | Jan. 01, 2016USD ($) | Oct. 02, 2015USD ($) | Jul. 03, 2015USD ($) | Apr. 03, 2015USD ($) | Jan. 02, 2015USD ($) | Oct. 03, 2014USD ($) | Jul. 04, 2014USD ($) | Apr. 04, 2014USD ($) | Jan. 01, 2016USD ($)$ / shares | Jan. 02, 2015USD ($)$ / shares | Jan. 03, 2014USD ($)$ / shares | Feb. 10, 2016shareholder |
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Dividend declared per common share (in dollars per share) | $ / shares | $ 5 | $ 5 | $ 0 | $ 0 | $ 5 | |||||||||
Dividend declared on common stock | $ 166.5 | $ 166.5 | ||||||||||||
Payment of special cash dividend | 164.2 | |||||||||||||
Foreign Exchange Devaluations | $ 2.9 | $ 0.7 | $ 8 | $ 3.6 | 8 | 1.1 | ||||||||
Foreign Exchange (Gain) Loss Due To Devaluation, net of tax | $ 0.4 | 5.3 | ||||||||||||
Operating expenses | $ 14.1 | 1,072.7 | 929.2 | 886.3 | ||||||||||
Write-off of capitalized software | 3.1 | (3.1) | ||||||||||||
Latin America assets write-off | 9.1 | 2.6 | 11.7 | |||||||||||
Dilapidation provision | 1.7 | 1.7 | ||||||||||||
Acquisition and integration costs | 4.1 | $ 8.1 | 1 | 13.2 | 7.5 | |||||||||
Pension Divestiture Costs | 0.4 | 0.4 | ||||||||||||
Tax Benefit Related To Reversal Of Valuation Allowance | $ 2 | $ 4.9 | ||||||||||||
Net Benefit Related To Closing Prior Tax Years | $ 1.9 | (1.9) | (4.7) | |||||||||||
Tax Cost Related To Acquisition Transaction Costs Capitalized For Tax Purposes | 1.1 | |||||||||||||
Integration costs | $ 0.5 | 0.5 | ||||||||||||
Gains (Losses) on Extinguishment of Debt | (0.9) | $ (0.9) | $ 0 | $ 0 | ||||||||||
Write off of Deferred Debt Issuance Cost | 0.3 | |||||||||||||
Subsequent Event [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Number of stockholders | shareholder | 1,830 | |||||||||||||
Within operating expenses [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Acquisition and integration costs | $ 1 | 5.7 | ||||||||||||
Within other expenses [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Acquisition and integration costs | $ 0.3 | |||||||||||||
Q2 2015 Restructuring Plan [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Restructuring Charges | $ 5.3 | |||||||||||||
Q4 2015 Restructuring Plan [Member] | ||||||||||||||
Quarterly Operating Results Unaudited [Line Items] | ||||||||||||||
Restructuring Charges | $ 2.9 |
SELECTED QUARTERLY FINANCIAL 91
SELECTED QUARTERLY FINANCIAL DATA - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jan. 01, 2016 | [1] | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | [4] | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | [7] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | ||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||||||||
Net sales | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 1,451.8 | $ 1,438 | $ 1,342.9 | $ 1,274.3 | $ 6,190.5 | $ 5,507 | $ 5,291.1 | ||||||||
Cost of goods sold | 1,464.4 | 1,158.3 | 1,151.5 | 1,075.8 | 1,130.3 | 1,115.3 | 1,039.6 | 982.5 | 4,850 | 4,267.7 | 4,092.2 | ||||||||
Operating income | 65.8 | 78.2 | 64.5 | 59.3 | 80.4 | 82.5 | 77.2 | 70 | 267.8 | 310.1 | 310.9 | ||||||||
Income from continuing operations before income taxes | 36.6 | 56.9 | 48.3 | 41.1 | 62.9 | 70.2 | 66.3 | 50.2 | 182.9 | 249.6 | 258.1 | ||||||||
Net income from continuing operations | 5.5 | 35.4 | 29.5 | 26.5 | 35.8 | 45.4 | 44.5 | 37.7 | 96.9 | 163.4 | 175 | ||||||||
Net income from discontinued operations | (0.9) | (2.9) | 41.9 | (7.4) | 5.3 | 7.1 | 9.3 | 9.7 | |||||||||||
Net income | $ 4.6 | $ 32.5 | $ 71.4 | $ 19.1 | $ 41.1 | $ 52.5 | $ 53.8 | $ 47.4 | $ 127.6 | $ 194.8 | $ 200.5 | ||||||||
Basic: | |||||||||||||||||||
Continuing operations | $ 0.17 | $ 1.06 | $ 0.89 | $ 0.80 | $ 1.08 | $ 1.37 | $ 1.35 | $ 1.15 | $ 2.92 | $ 4.95 | $ 5.34 | ||||||||
Discontinued operations | (0.03) | (0.09) | 1.26 | (0.22) | 0.16 | 0.22 | 0.28 | 0.29 | 0.92 | 0.95 | 0.78 | ||||||||
Net income | 0.14 | 0.97 | 2.15 | 0.58 | 1.24 | 1.59 | 1.63 | 1.44 | 3.84 | 5.90 | 6.12 | ||||||||
Diluted: | |||||||||||||||||||
Continuing operations | 0.17 | 1.06 | 0.88 | 0.79 | 1.07 | 1.36 | 1.33 | 1.13 | 2.90 | 4.90 | 5.27 | ||||||||
Discontinued operations | (0.03) | (0.09) | 1.26 | (0.22) | 0.16 | 0.21 | 0.28 | 0.30 | 0.91 | 0.94 | 0.77 | ||||||||
Net income | 0.14 | 0.97 | 2.14 | 0.57 | 1.23 | 1.57 | 1.61 | 1.43 | 3.81 | 5.84 | $ 6.04 | ||||||||
Stock price range: | |||||||||||||||||||
Stock Price High | 70.29 | 69.15 | 78.68 | 88.11 | 89.95 | 103.47 | 105.33 | 115.84 | |||||||||||
Stock Price Low | 57.74 | 55.71 | 63.91 | 73.34 | 75.81 | 82.40 | 92.79 | 84.55 | |||||||||||
Share Price | $ 60.39 | $ 57.73 | $ 64.16 | $ 76.75 | $ 88.18 | $ 85.41 | $ 102.89 | $ 99.06 | $ 60.39 | [1] | $ 88.18 | ||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | ||||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | ||||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | ||||||||||||||||||
[6] | 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 | ||||||||||||||||||
[7] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. |
Schedule 1-STATEMENTS OF INCOME
Schedule 1-STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jan. 01, 2016 | [1] | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | [4] | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | [7] | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Schedule of Condensed Consolidating Statement of Income and Comprehensive Income [Line Items] | ||||||||||||||||||
Operating loss | $ 65.8 | $ 78.2 | $ 64.5 | $ 59.3 | $ 80.4 | $ 82.5 | $ 77.2 | $ 70 | $ 267.8 | $ 310.1 | $ 310.9 | |||||||
Income tax expense (benefit) | 86 | 86.2 | 83.1 | |||||||||||||||
Net income | $ 4.6 | $ 32.5 | $ 71.4 | $ 19.1 | $ 41.1 | $ 52.5 | $ 53.8 | $ 47.4 | 127.6 | 194.8 | 200.5 | |||||||
Comprehensive income | 35.1 | 83.4 | 225.7 | |||||||||||||||
Parent Company [Member] | ||||||||||||||||||
Schedule of Condensed Consolidating Statement of Income and Comprehensive Income [Line Items] | ||||||||||||||||||
Operating loss | (4.8) | (4.4) | (4.3) | |||||||||||||||
Interest income, including intercompany | 5 | 4.8 | 2.1 | |||||||||||||||
Income (loss) before income taxes and equity in earnings of subsidiaries | 0.2 | 0.4 | (2.2) | |||||||||||||||
Income tax expense (benefit) | 0.2 | 0.1 | (0.8) | |||||||||||||||
Income (loss) before equity in earnings of subsidiaries | 0 | 0.3 | (1.4) | |||||||||||||||
Equity in earnings of subsidiaries | 127.6 | 194.5 | 201.9 | |||||||||||||||
Net income | 127.6 | 194.8 | 200.5 | |||||||||||||||
Comprehensive income | $ 35.1 | $ 83.4 | $ 225.7 | |||||||||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | |||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | |||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | |||||||||||||||||
[6] | 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 | |||||||||||||||||
[7] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. |
Schedule 1-BALANCE SHEETS (Deta
Schedule 1-BALANCE SHEETS (Detail) - USD ($) $ in Millions | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | Dec. 28, 2012 |
Current assets: | ||||
Cash and cash equivalents | $ 151.3 | $ 92 | $ 57.3 | $ 89.4 |
Other assets | 63.7 | 54.9 | ||
Total current assets | 2,727.8 | 2,589.8 | ||
Total assets | 4,142 | 3,580.8 | ||
Liabilities: | ||||
Other non-current liabilities | 163.5 | 215.3 | ||
Total liabilities | 2,962.6 | 2,447.8 | ||
Stockholders’ equity: | ||||
Common stock | 33.3 | 33.1 | ||
Capital surplus | 249.2 | 238.2 | ||
Retained earnings | 1,127.4 | 999.7 | ||
Accumulated other comprehensive loss | (230.5) | (138) | ||
Total stockholders’ equity | 1,179.4 | 1,133 | 1,027.4 | 969.9 |
Total liabilities and stockholders’ equity | 4,142 | 3,580.8 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0.1 | 0 | $ 0.1 | $ 0.4 |
Other assets | 0.6 | 0.5 | ||
Total current assets | 0.7 | 0.5 | ||
Other assets (primarily investment in and advances to subsidiaries) | 1,181.8 | 1,137 | ||
Total assets | 1,182.5 | 1,137.5 | ||
Liabilities: | ||||
Accounts payable and accrued expenses, due currently | 0.7 | 1.5 | ||
Other non-current liabilities | 2.4 | 3 | ||
Total liabilities | 3.1 | 4.5 | ||
Stockholders’ equity: | ||||
Common stock | 33.3 | 33.1 | ||
Capital surplus | 249.2 | 238.2 | ||
Retained earnings | 1,127.4 | 999.7 | ||
Accumulated other comprehensive loss | (230.5) | (138) | ||
Total stockholders’ equity | 1,179.4 | 1,133 | ||
Total liabilities and stockholders’ equity | $ 1,182.5 | $ 1,137.5 |
Schedule 1-STATEMENTS OF CASH F
Schedule 1-STATEMENTS OF CASH FLOWS (Detail) - USD ($) $ in Millions | Jan. 02, 2014 | Jan. 01, 2016 | Oct. 02, 2015 | [2] | Jul. 03, 2015 | [3] | Apr. 03, 2015 | Jan. 02, 2015 | Oct. 03, 2014 | [5] | Jul. 04, 2014 | [6] | Apr. 04, 2014 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |||
Operating activities: | |||||||||||||||||||
Net income | $ 4.6 | [1] | $ 32.5 | $ 71.4 | $ 19.1 | [4] | $ 41.1 | $ 52.5 | $ 53.8 | $ 47.4 | [7] | $ 127.6 | $ 194.8 | $ 200.5 | |||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Stock-based compensation | 14.5 | 13.8 | 13.6 | ||||||||||||||||
Income tax expense (benefit) | 86 | 86.2 | 83.1 | ||||||||||||||||
Accretion of debt discount | 1.8 | 2.3 | 3.7 | ||||||||||||||||
Amortization of deferred financing costs | 2 | 0 | 1.7 | ||||||||||||||||
Net cash (used in) provided by operating activities | 91.9 | 104.2 | 334.5 | ||||||||||||||||
Investing activities | (479.3) | (458.7) | (32.2) | ||||||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from stock options exercised | 0 | 7.2 | 8.1 | ||||||||||||||||
Retirement of Notes due 2013 | 0 | 0 | (300) | ||||||||||||||||
Payment of special cash dividend | $ (164.2) | ||||||||||||||||||
Payments for repurchase of warrants | 0 | 0 | (19.2) | ||||||||||||||||
Other, net | (1) | (1.7) | 0 | ||||||||||||||||
Net cash provided by (used in) financing activities | 449.8 | 385.7 | (324.1) | ||||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 62.4 | 31.2 | (21.8) | ||||||||||||||||
Cash and cash equivalents at beginning of period | 92 | 57.3 | 92 | 57.3 | 89.4 | ||||||||||||||
Cash and cash equivalents at end of period | 151.3 | 92 | 151.3 | 92 | 57.3 | ||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income | 127.6 | 194.8 | 200.5 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Equity in earnings of subsidiaries | (127.6) | (194.5) | (201.9) | ||||||||||||||||
Dividend from subsidiary | 6.9 | 2.4 | 491.7 | ||||||||||||||||
Stock-based compensation | 2 | 1.9 | 1.9 | ||||||||||||||||
Income tax expense (benefit) | 0.2 | 0.1 | (0.8) | ||||||||||||||||
Intercompany transactions | (9.3) | (9.8) | (11.5) | ||||||||||||||||
Accretion of debt discount | 0 | 0 | 2.2 | ||||||||||||||||
Amortization of deferred financing costs | 0 | 0 | 0.1 | ||||||||||||||||
Changes in assets and liabilities, net | (0.1) | 0 | 0.3 | ||||||||||||||||
Net cash (used in) provided by operating activities | (0.3) | (5.1) | 482.5 | ||||||||||||||||
Investing activities | 0 | 0 | 0 | ||||||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from stock options exercised | 0 | 7.2 | 8.1 | ||||||||||||||||
Loans from (to) subsidiaries, net | 1.5 | (0.5) | (6) | ||||||||||||||||
Retirement of Notes due 2013 | 0 | 0 | (300) | ||||||||||||||||
Payment of special cash dividend | 0 | 0 | (165.7) | ||||||||||||||||
Payments for repurchase of warrants | 0 | 0 | (19.2) | ||||||||||||||||
Other, net | (1.1) | (1.7) | 0 | ||||||||||||||||
Net cash provided by (used in) financing activities | 0.4 | 5 | (482.8) | ||||||||||||||||
Cash and Cash Equivalents, Period Increase (Decrease) | 0.1 | (0.1) | (0.3) | ||||||||||||||||
Cash and cash equivalents at beginning of period | $ 0 | $ 0.1 | 0 | 0.1 | 0.4 | ||||||||||||||
Cash and cash equivalents at end of period | $ 0.1 | $ 0 | $ 0.1 | $ 0 | $ 0.1 | ||||||||||||||
[1] | In the fourth quarter of 2015, "Operating income" includes $9.1 million of assets write-off in Latin America, $2.9 million of restructuring costs, and $4.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". "Income from continuing operations before income taxes" includes foreign exchange losses of $2.9 million due to the devaluation of the Argentina peso, a $0.9 million loss on the extinguishment of debt and $0.3 million of additional interest expense due to the write-off of debt issuance costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[2] | In the third quarter of 2015, "Operating income" includes $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[3] | In the second quarter of 2015, "Operating income" includes $14.1 million of expense, which includes $5.3 million of restructuring costs, a write-off of capitalized software of $3.1 million that has no ongoing economic benefit to continuing operations, $2.6 million of assets write-off in Latin America, a $1.7 million dilapidation provision related to our leasehold properties, acquisition and integration costs of $1.0 million and $0.4 million related to pension divestiture costs. | ||||||||||||||||||
[4] | In the first quarter of 2015, we recorded foreign exchange losses due to the devaluation of the Venezuela bolivar of $0.7 million, ($0.4 million, net of tax). | ||||||||||||||||||
[5] | In the third quarter of 2014, "Operating income" includes $5.7 million and "Income from continuing operations before income taxes" includes $0.3 million related to acquisition transaction and financing costs for Tri-Ed. For further information, see Note 3. "Business Combinations". 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. | ||||||||||||||||||
[6] | 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 | ||||||||||||||||||
[7] | 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 $4.9 million primarily related to the reversal of deferred income tax valuation allowances in Europe. |
Schedule 2-VALUATION AND QUALIF
Schedule 2-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Allowance for doubtful accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of the period | $ 27 | $ 16.3 | $ 20.1 |
Charged to income | 25.8 | 11.4 | 10.2 |
Charged to other accounts | (5.1) | 12.2 | (2.1) |
Deductions | (10.2) | (12.9) | (11.9) |
Balance at end of the period | 37.5 | 27 | 16.3 |
Allowance for deferred tax asset [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of the period | 11.9 | 21.9 | 22.2 |
Charged to income | 12.9 | (9.2) | 0.3 |
Charged to other accounts | (0.8) | (0.8) | (0.6) |
Deductions | 0 | 0 | 0 |
Balance at end of the period | $ 24 | $ 11.9 | $ 21.9 |