Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 30, 2016 | Feb. 15, 2017 | Jul. 01, 2016 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
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 | --12-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 33,115,697 | ||
Entity Public Float | $ 1,546,247,517 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Net sales | $ 7,622.8 | $ 6,190.5 | $ 5,507 |
Cost of goods sold | 6,074.8 | 4,850 | 4,267.7 |
Gross profit | 1,548 | 1,340.5 | 1,239.3 |
Operating expenses | 1,262.7 | 1,072.7 | 929.2 |
Operating income | 285.3 | 267.8 | 310.1 |
Other expense: | |||
Interest expense | (78.7) | (63.8) | (44.5) |
Other, net | (9.1) | (21.1) | (16) |
Income from continuing operations before income taxes | 197.5 | 182.9 | 249.6 |
Income tax expense from continuing operations | 76.4 | 86 | 86.2 |
Net income from continuing operations | 121.1 | 96.9 | 163.4 |
(Loss) income from discontinued operations before income taxes | (0.1) | 11.9 | 45.2 |
(Loss) gain on sale of business | (0.7) | 41 | 0 |
Income tax (benefit) expense from discontinued operations | (0.2) | 22.2 | 13.8 |
Net (loss) income from discontinued operations | (0.6) | 30.7 | 31.4 |
Net income | $ 120.5 | $ 127.6 | $ 194.8 |
Basic: | |||
Continuing operations | $ 3.63 | $ 2.92 | $ 4.95 |
Discontinued operations | (0.02) | 0.92 | 0.95 |
Net income | 3.61 | 3.84 | 5.90 |
Diluted: | |||
Continuing operations | 3.61 | 2.90 | 4.90 |
Discontinued operations | (0.02) | 0.91 | 0.94 |
Net income | $ 3.59 | $ 3.81 | $ 5.84 |
Basic weighted-average common shares outstanding | 33.4 | 33.2 | 33 |
Effect of dilutive securities: | |||
Stock options and units | 0.2 | 0.2 | 0.3 |
Diluted weighted-average common shares outstanding | 33.6 | 33.4 | 33.3 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Net income | $ 120.5 | $ 127.6 | $ 194.8 |
Other comprehensive loss: | |||
Foreign currency translation | (11.9) | (82.9) | (59.5) |
Changes in unrealized pension cost, net of tax | (8.5) | (9.5) | (51.8) |
Changes in fair market value of derivatives, net of tax | 0 | (0.1) | (0.1) |
Other comprehensive loss | (20.4) | (92.5) | (111.4) |
Comprehensive income | $ 100.1 | $ 35.1 | $ 83.4 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 115.1 | $ 151.3 |
Accounts receivable, net | 1,353.2 | 1,326.4 |
Inventories | 1,178.3 | 1,182.6 |
Other current assets | 41.9 | 67.5 |
Total current assets | 2,688.5 | 2,727.8 |
Property and equipment, at cost | 343.4 | 346.4 |
Accumulated depreciation | (203.1) | (214.6) |
Property and equipment, net | 140.3 | 131.8 |
Goodwill | 764.6 | 756.5 |
Intangible assets, net | 415.4 | 453.8 |
Other assets | 84.8 | 72.1 |
Total assets | 4,093.6 | 4,142 |
Current liabilities: | ||
Accounts payable | 1,006 | 905.6 |
Accrued expenses | 257.9 | 250.6 |
Total current liabilities | 1,263.9 | 1,156.2 |
Long-term debt | 1,378.8 | 1,642.9 |
Other liabilities | 158.7 | 163.5 |
Total liabilities | 2,801.4 | 2,962.6 |
Stockholders’ equity: | ||
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,437,882 and 33,278,130 shares issued and outstanding at December 30, 2016 and January 1, 2016, respectively | 33.4 | 33.3 |
Capital surplus | 261.8 | 249.2 |
Retained earnings | 1,247.9 | 1,127.4 |
Accumulated other comprehensive loss: | ||
Foreign currency translation | (153.9) | (142) |
Unrecognized pension liability, net | (97) | (88.5) |
Total accumulated other comprehensive loss | (250.9) | (230.5) |
Total stockholders’ equity | 1,292.2 | 1,179.4 |
Total liabilities and stockholders’ equity | $ 4,093.6 | $ 4,142 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 30, 2016 | Jan. 01, 2016 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 33,437,882 | 33,278,130 |
Common stock, shares outstanding | 33,437,882 | 33,278,130 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Operating activities: | |||
Net income | $ 120.5 | $ 127.6 | $ 194.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of business, net of tax expense of $17.3 in 2015 | 0 | (40) | 0 |
Depreciation | 27.9 | 23.8 | 24 |
Amortization of intangible assets | 37.6 | 25.4 | 11.7 |
Stock-based compensation | 16.5 | 14.5 | 13.8 |
Deferred income taxes | 0.7 | 5.9 | 25.7 |
Accretion of debt discount | 2.2 | 1.8 | 2.3 |
Amortization of deferred financing costs | 2.4 | 2 | 0 |
Pension plan contributions | (29) | (37.7) | (16.8) |
Pension plan expenses | 20.8 | 11.4 | 4.6 |
Loss on extinguishments of debt | 0 | 0.9 | 0 |
Excess income tax benefit from employee stock plans | (0.3) | (0.6) | (5.8) |
Changes in current assets and liabilities, net | |||
Accounts receivable | (32.6) | (5.9) | (102.9) |
Inventories | (5.8) | (54) | (49.6) |
Accounts payable | 102.4 | (15.3) | 54.9 |
Other current assets and liabilities, net | 21.8 | 31.1 | (49) |
Other, net | (6.3) | 1 | (3.5) |
Net cash provided by operating activities | 278.8 | 91.9 | 104.2 |
Investing activities: | |||
Acquisitions of businesses, net of cash acquired | (4.7) | (822.5) | (418.4) |
Proceeds from sale of business | 0 | 371.8 | 0 |
Capital expenditures, net | (32.6) | (28.6) | (40.3) |
Net cash used in investing activities | (37.3) | (479.3) | (458.7) |
Financing activities: | |||
Proceeds from borrowings | 1,136.5 | 1,442.6 | 1,550.4 |
Repayments of borrowings | (1,327.9) | (1,116.5) | (1,734.2) |
Retirement of Notes due 2015 | 0 | (200) | 0 |
Proceeds from issuance of Notes due 2021 | 0 | 0 | 394 |
Retirement of Notes due 2014 | 0 | 0 | (32.3) |
Deferred financing costs | 0 | (6.7) | (2.3) |
Proceeds from stock options exercised | 2.4 | 0 | 7.2 |
Excess income tax benefit from employee stock plans | 0.3 | 0.6 | 5.8 |
Other, net | (0.6) | (1) | (1.7) |
Net cash (used in) provided by financing activities | (273) | 449.8 | 385.7 |
(Decrease) increase in cash and cash equivalents | (31.5) | 62.4 | 31.2 |
Effect of exchange rate changes on cash balances | (4.7) | (3.1) | 3.5 |
Cash and cash equivalents at beginning of period | 151.3 | 92 | 57.3 |
Cash and cash equivalents at end of period | 115.1 | 151.3 | 92 |
Cash paid for interest | 75.7 | 56.1 | 37.6 |
Cash paid for taxes | 63.4 | 103.5 | 117 |
Senior notes due 2023 [Member] | |||
Financing activities: | |||
Proceeds from issuance of Notes due 2023 | 0 | 345.6 | 0 |
Deferred financing costs | (1.7) | ||
Canadian term loan [Member] | |||
Financing activities: | |||
Proceeds from issuance of term loan | 0 | 229.1 | 0 |
Repayment of term loan | (83.7) | (45.1) | 0 |
Term loan [Member] | |||
Financing activities: | |||
Proceeds from issuance of term loan | 0 | 0 | 200 |
Repayment of term loan | $ 0 | $ (198.8) | $ (1.2) |
CONSOLIDATED STATEMENTS OF CAS7
CONSOLIDATED STATEMENTS OF CASH FLOWS CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 12 Months Ended |
Jan. 01, 2016USD ($) | |
Statement of Cash Flows [Abstract] | |
Tax expense from gain on sale of business | $ 17.3 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] |
Common stock, shares issued | 32,900,000 | ||||
Stockholders' equity | $ 1,027.4 | $ 32.9 | $ 216.3 | $ 804.8 | $ (26.6) |
Net income | 194.8 | 194.8 | |||
Other comprehensive loss: | |||||
Foreign currency translation | (59.5) | (59.5) | |||
Changes in unrealized pension cost, net of tax | (51.8) | (51.8) | |||
Changes in fair market value of derivatives | (0.1) | (0.1) | |||
Dividend forfeited on common stock | 0.1 | 0.1 | |||
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 | ||
Common stock, shares issued | 33,100,000 | ||||
Stockholders' equity | 1,133 | $ 33.1 | 238.2 | 999.7 | (138) |
Net income | 127.6 | 127.6 | |||
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 | |||
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) | ||
Common stock, shares issued | 33,278,130 | 33,300,000 | |||
Stockholders' equity | $ 1,179.4 | $ 33.3 | 249.2 | 1,127.4 | (230.5) |
Net income | 120.5 | 120.5 | |||
Foreign currency translation | (11.9) | (11.9) | |||
Changes in unrealized pension cost, net of tax | (8.5) | (8.5) | |||
Changes in fair market value of derivatives | 0 | ||||
Stock-based compensation | 16.5 | 16.5 | |||
Issuance of common stock and related tax benefits, shares | 100,000 | ||||
Issuance Of common stock and related tax benefits | $ (3.8) | $ 0.1 | (3.9) | ||
Common stock, shares issued | 33,437,882 | 33,400,000 | |||
Stockholders' equity | $ 1,292.2 | $ 33.4 | $ 261.8 | $ 1,247.9 | $ (250.9) |
CONSOLIDATED STATEMENTS OF STO9
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Tax related to unrealized pension cost | $ 2.1 | $ 2.3 | $ 24.3 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 30, 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. 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 2016 , 2015 and 2014. 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 formed the Utility Power Solutions ("UPS") segment. Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") 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. Our significant estimates include allowance for doubtful accounts, inventory obsolescence, pension obligations, goodwill and indefinite-lived intangible assets, deferred tax assets and uncertain tax positions. 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 $43.6 million and $37.5 million at the end of 2016 and 2015 , 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 $20.1 million , $25.8 million and $11.4 million in 2016 , 2015 and 2014 , 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 December 30, 2016 and January 1, 2016 , we reported inventory of $1,178.3 million and $1,182.6 million , respectively (net of inventory reserves of $48.3 million and $42.4 million , respectively). 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 December 30, 2016 , net property and equipment consisted of $101.9 million of equipment and computer software, $36.0 million of buildings and leasehold improvements and $2.4 million of land. 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. 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 20 years. Buildings are recorded at cost and depreciated by applying the straight-line method over their estimated useful lives, which range from 7 to 40 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 $27.9 million , $22.2 million and $20.0 million in 2016 , 2015 and 2014 , 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 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 December 30, 2016 and January 1, 2016 , capitalized costs, net of accumulated amortization, for software developed for internal use were approximately $57.7 million and $49.5 million , respectively. Amortization expense charged to continuing operations for capitalized costs was $3.7 million , $2.8 million and $2.5 million in 2016, 2015 and 2014, 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 2016 , 2015 and 2014 were $0.7 million , $1.2 million and $0.8 million , respectively. Goodwill: We evaluate goodwill for impairment annually at the beginning of 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. As a result of the reclassification of net sales of various product categories between our segments during the first half of 2016 , we reassigned the carrying amount of goodwill based on the relative fair value of our reporting units. We then performed the quantitative two-step impairment test of goodwill for all reporting units before and after the change in composition of our segments utilizing a combination of the income and market approaches, both of which are broadly defined below. We concluded that no impairment of goodwill existed and the carrying amount of goodwill to be fully recoverable. In connection with our annual assessment of goodwill at the beginning of the third quarter of 2016 , we bypassed the qualitative assessment and performed a quantitative test for all reporting units and utilized a combination of the income and market approaches, 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 plus a forecast risk, 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. During the fourth quarter, we performed an interim goodwill impairment assessment for our NSS, EES and UPS reporting units. Although all of our reporting units have fair values that currently exceed the underlying carrying values, the margin of fair value over carrying value of our NSS and UPS reporting units were greater than 10%, while the fair value of our EES reporting unit was less than 10% over its carrying value due to the combined effects of the weaker industrial economy and lower commodity prices on a year over year basis. As a result, this unit is more susceptible to impairment risk from further adverse macroeconomic conditions. Any such adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that could trigger future impairment charges relating to the EES reporting unit. Intangible assets: As of December 30, 2016 and January 1, 2016 , our intangible asset balances are as follows: December 30, 2016 January 1, 2016 (In millions) Average useful life (in years) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships 6-20 $ 458.5 $ (80.1 ) $ 461.4 $ (48.4 ) Exclusive supplier agreement 21 22.1 (2.4 ) 22.0 (1.6 ) Trade names 3-10 12.6 (7.5 ) 13.3 (5.8 ) Trade names Indefinite 10.6 — 10.6 — Non-compete agreements 1-5 6.2 (4.6 ) 4.5 (2.2 ) Total $ 510.0 $ (94.6 ) $ 511.8 $ (58.0 ) 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. 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 $31.8 million per year for the next five years , of which $16.2 million and $11.9 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: Twelve Months Ended (In millions) December 30, January 1, January 2, Other, net: Foreign exchange $ (10.8 ) $ (14.9 ) $ (8.2 ) Foreign exchange devaluations — (3.6 ) (8.0 ) Cash surrender value of life insurance policies 1.2 (0.8 ) 0.8 Other 0.5 (1.8 ) (0.6 ) Total other, net $ (9.1 ) $ (21.1 ) $ (16.0 ) 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 again regarding the bolivar, which required us to use the Sistema Marginal de Divisas or Marginal Exchange System ("SIMADI") a "completely free floating" rate. As a result, the Venezuelan bolivar was devalued from approximately 52.0 bolivars to one USD to approximately 200.0 bolivars to one USD in the year ended January 1, 2016 . Due to these devaluations, we recorded a foreign exchange loss of $3.6 million for the year ended January 1, 2016 . During 2016 , the Venezuelan bolivar was devalued from approximately 200.0 bolivars to one USD to approximately 673.0 bolivars to one USD, which we believe will be the rate available to us in the event we repatriate cash from Venezuela. This devaluation did not have a material impact on our Consolidated Financial Statements as we have significantly less exposure in Venezuela in 2016 . 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 pesos to one USD after the central bank scaled back its intervention in a bid to preserve USD cash reserves. As a result of these devaluations, we recorded foreign exchange losses in these two countries of $8.0 million in the first quarter of 2014. Due to the strengthening of the USD against certain foreign currencies, primarily in Europe and Latin America, we recorded additional foreign exchange losses of $10.8 million , $14.9 million and $8.2 million in 2016, 2015 and 2014, respectively. 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 December 30, 2016 and January 1, 2016 , 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 December 30, 2016 and January 1, 2016 , the gross notional amount of the foreign currency forward contracts outstanding was approximately $114.8 million and $196.1 million , respectively. At December 30, 2016 and January 1, 2016 , the net notional amount of the foreign currency forward contracts outstanding was approximately $90.9 million and $132.8 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 resulted in changes in the cash surrender value of our company owned life insurance policies associated with our sponsored deferred compensation program. 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 $34.9 million and $29.1 million at December 30, 2016 and January 1, 2016 , 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 $12.4 million , $13.2 million and $12.6 million in 2016 , 2015 and 2014, 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 $113.9 million , $102.7 million and $99.5 million in 2016 , 2015 and 2014, respectively. Stock-based compensation: 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 loss: We accumulate unrealized gains and losses in "Accumulated other comprehensive loss" ("AOCI"). These changes are also reported in "Other comprehensive loss" 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 based on available evidence. 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. We had 0.2 million in 2016 and 2015 and 0.3 million in 2014, 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 2016 , 2015 and 2014, the antidilutive stock options and units were immaterial. Recently issued and adopted accounting pronouncements: In August 2016 , the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which makes eight targeted changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update provides specific guidance on cash flow classification issues that are not currently addressed by U.S. Generally Accepted Accounting Principles and thereby reduces the current diversity in practice. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2016-15 as of September 30, 2016 on a retrospective basis for all cash flow statement periods presented. The adoption of this standard had no impact on the Company's previously reported cash flows. Recently issued accounting pronouncements not yet adopted: In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers , and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016 and May 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10 and ASU 2016-12, respectively. The core principle of this new revenue recognition guidance is that a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance defines a five-step process to achieve this core principle, and in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under current guidance, including 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, among others. The new guidance 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 new guidance provides for two transition methods: a full retrospective approach and a modified retrospective approach. We will adopt the new revenue recognition guidance in the first quarter of our fiscal year 2018 and anticipate utilizing the modified retrospective method of adoption. We are continuing to evaluate the impact of this guidance on our consolidated results of ope |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 12 Months Ended |
Dec. 30, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DISCONTINUED OPERATIONS | 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 which we subsequently sold, 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 $16.4 million , the sale resulted in a pre-tax gain of $40.3 million ( $23.3 million , net of tax). The assets and liabilities and operating results of the Fasteners business are presented as "discontinued operations" in our Consolidated Financial Statements. Current assets of discontinued operations are presented within "Other current assets" in the Consolidated Balance Sheets. Current and long-term liabilities of discontinued operations are presented within "Accrued expenses" 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. There were no allocated interest costs in the year ended December 30, 2016 . The allocated interest costs were $1.1 million and $3.6 million in the twelve months ended January 1, 2016 and January 2, 2015 , 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 period. 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: Twelve Months Ended (In millions) December 30, January 1, January 2, Net sales $ 1.7 $ 405.9 $ 938.5 Operating (loss) income $ (0.2 ) $ 14.2 $ 50.8 (Loss) income from discontinued operations before income taxes $ (0.1 ) $ 11.9 $ 45.2 (Loss) gain on sale of discontinued operations $ (0.7 ) $ 41.0 $ — Income tax (benefit) expense from discontinued operations $ (0.2 ) $ 22.2 $ 13.8 Net (loss) income from discontinued operations $ (0.6 ) $ 30.7 $ 31.4 As reflected on our Consolidated Balance Sheets as of December 30, 2016 and January 1, 2016 , the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows: (In millions) December 30, January 1, Assets of discontinued operations: Accounts receivable $ 0.1 $ 2.6 Inventories — 1.2 Other current assets 0.1 — Total assets of discontinued operations $ 0.2 $ 3.8 Liabilities of discontinued operations: Accounts payable $ 0.2 $ 1.3 Accrued expenses 2.2 4.0 Other liabilities — 1.7 Total liabilities of discontinued operations $ 2.4 $ 7.0 |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 30, 2016 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | 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 $829.4 million (net of cash and outstanding checks of $11.7 million ). The acquisition was financed using borrowings under new financing arrangements and cash on hand. Power Solutions was a compelling strategic acquisition for us that significantly enhances our competitive position in the electrical wire and cable business and further strengthens 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 enables us to provide a full line electrical solution to our existing customers and provides us with broader access to the mid-size electrical construction market. The high voltage business of Power Solutions forms the Utility Power Solutions ("UPS") segment within our realigned reportable segments. 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 following table sets forth the final purchase price allocation, as of the acquisition date, for Power Solutions. The purchase price allocation, including the valuation of the acquired leases, intangible assets and related deferred tax liabilities was completed in the third quarter of 2016. (In millions) Cash $ 11.7 Current assets, net 560.1 Property and equipment, net 30.6 Goodwill 194.8 Intangible assets 280.9 Non-current assets 5.6 Current liabilities (234.1 ) Non-current liabilities (8.5 ) Total purchase price $ 841.1 Power Solutions goodwill of $35.4 million and $159.4 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 $81.0 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 14-18 $ 278.5 Non-compete agreements 1 2.4 Total intangible assets $ 280.9 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 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 and equipment, net 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 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 acquisitions of Power Solutions and Tri-Ed had been completed as of the beginning of fiscal 2014. Adjustments have been made for the pro forma effects of interest expense and deferred financing costs related to the financing for the acquisition, 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). Twelve Months Ended (In millions, except per share amounts) January 1, 2016 January 2, 2015 Net sales $ 7,733.4 $ 7,831.0 Net income from continuing operations $ 107.1 $ 180.5 Income per share from continuing operations: Basic $ 3.22 $ 5.46 Diluted $ 3.20 $ 5.41 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 30, 2016 | |
Accrued Liabilites, Current [Abstract] | |
Accrued Liabilities Disclosure [Text Block] | ACCRUED EXPENSES Accrued expenses consisted of the following: December 30, January 1, (In millions) Salaries and fringe benefits $ 105.2 $ 87.5 Other accrued expenses 150.3 157.8 Total accrued expenses $ 255.5 $ 245.3 |
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES | 12 Months Ended |
Dec. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING AND OTHER CHARGES | RESTRUCTURING 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 Q2 2016 Plan Q4 2015 Plan Q2 2015 Plan Q4 2012 Plan Total Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) 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 Charges 4.3 1.5 (0.4 ) — — — 3.9 1.5 Payments and other (2.4 ) (0.3 ) (1.3 ) (0.2 ) (0.7 ) (0.2 ) (4.4 ) (0.7 ) Balance at December 30, 2016 $ 1.9 $ 1.2 $ 1.3 $ — $ 0.3 $ 0.2 $ 3.5 $ 1.4 (a) Employee-related costs primarily consist of severance benefits provided to employees who have been involuntarily terminated. (b) Facility exit and other costs primarily consist of lease termination costs. Q2 2016 Restructuring Plan In the second quarter of 2016, we recorded a pre-tax charge of $2.1 million , $1.4 million , and $2.2 million in our NSS, EES, and UPS segments, respectively, and an additional $0.1 million at our corporate headquarters, primarily for severance-related expenses associated with a reduction of approximately 150 positions. The $5.8 million charge primarily reflects actions we are taking to improve efficiencies in Canada and Latin America as well with the acquisition of Power Solutions. This charge was included in "Operating expenses" in our Consolidated Statement of Comprehensive Income (Loss) in the second quarter of 2016. The majority of the remaining charge included in accrued expenses of $3.1 million as of December 30, 2016 is expected to be paid by the second quarter of 2017. 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 was included in "Operating expenses" in our Consolidated Statement of Comprehensive Income (Loss) for fiscal year 2015. The majority of the remaining charge included in accrued expenses of $1.3 million as of December 30, 2016 is expected to be paid by the second quarter of 2017. Q2 2015 Restructuring Plan In the second quarter of 2015, we recorded a pre-tax charge of $3.0 million and $2.2 million in our NSS and EES segments, respectively, and an additional $0.1 million at our corporate headquarters for severance-related expenses associated with a reduction of approximately 100 positions. The $5.3 million charge reflects actions we took 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 was included in "Operating expenses" in our Consolidated Statement of Comprehensive Income (Loss) for fiscal year 2015. The majority of the remaining charge included in accrued expenses of $0.3 million as of December 30, 2016 is expected to be paid by the second quarter of 2017. 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 December 30, 2016 , the majority of the remaining charge included in accrued expenses of $0.2 million is expected to be paid by the second quarter of 2017. |
DEBT
DEBT | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
DEBT | DEBT Debt is summarized below: (In millions) December 30, January 1, Long-term debt: 5.50% Senior notes due 2023 $ 346.3 $ 345.8 5.125% Senior notes due 2021 395.7 394.9 5.625% Senior notes due 2019 347.7 346.8 Canadian term loan 95.4 172.9 Revolving lines of credit 197.1 390.1 Other 3.5 2.6 Unamortized deferred financing costs (6.9 ) (10.2 ) Total long-term debt $ 1,378.8 $ 1,642.9 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 December 30, 2016 are as follows: 2017 - $3.5 million , 2018 - $0.0 million , 2019 - $347.7 million , 2020 - $292.5 million , 2021 - $395.7 million and $346.3 million thereafter. Our average borrowings outstanding were $1,649.0 million and $1,338.4 million for the fiscal years ending December 30, 2016 and January 1, 2016, respectively. Our weighted-average cost of borrowings was 4.8% for the years ended December 30, 2016 and January 1, 2016, and 4.7% for the year ended January 2, 2015. Interest paid in 2016, 2015 and 2014 was $75.7 million , $56.0 million and $37.6 million , respectively. At the end of fiscal 2016, we had approximately $352.0 million and $132.5 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. 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 deferred financing 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, Inc. 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 $500.0 million to LIBOR plus 175 basis points when Combined Availability is less than $250.0 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 2016 and 2015, we repaid $83.7 million and $45.1 million , respectively, of the outstanding balance. We incurred $0.5 million and $0.3 million of additional interest expense in 2016 and 2015, respectively, due to the write-off of deferred financing 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. Due to our prepayment of the Canadian Term Loan, no amortization is required before the loan's maturity in 2020. 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 deferred financing 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 deferred financing 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 deferred financing 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 U.S. to 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. Short-term borrowings We have borrowings under other bank revolving lines of credit totaling $3.5 million and $2.6 million at the end of fiscal 2016 and 2015, respectively. Our short-term borrowings have maturity dates within the next fiscal year. However, all of the borrowings at the end of fiscal 2016 have been classified as long-term at December 30, 2016, as we have the intent and ability to refinance the debt under existing long-term financing agreements. 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 deferred financing costs. The remaining unamortized deferred financing 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 . During the first quarter of 2014, we retired the maturity value of $32.3 million with available borrowings under existing long-term financing agreements. 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 December 30, 2016 , our total carrying value and estimated fair value of debt outstanding was $1,378.8 million and $1,435.6 million , respectively. This compares to a carrying value and estimated fair value of debt outstanding at January 1, 2016 of $1,642.9 million and $1,669.5 million , respectively. The decrease in the carrying value and estimated fair value is primarily due to lower outstanding borrowings under our revolving lines of credit and partial repayment of our Canadian term loan. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 30, 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 December 30, 2016 and January 1, 2016. Minimum lease commitments under operating leases at December 30, 2016 are as follows: (In millions) 2017 $ 64.5 2018 57.8 2019 43.3 2020 33.9 2021 27.1 2022 and thereafter 43.1 Total $ 269.7 Total rental expense was $97.8 million , $78.0 million and $70.9 million in 2016, 2015 and 2014, respectively. Aggregate future minimum rentals to be received under non-cancelable subleases at December 30, 2016 were $6.8 million . As of December 30, 2016, we had $44.7 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 December 30, 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 |
Dec. 30, 2016 | |
INCOME TAXES | INCOME TAXES Income Before Tax Expense : Domestic income before income taxes was $162.4 million , $167.3 million and $173.0 million for 2016, 2015 and 2014, respectively. Foreign income before income taxes was $35.1 million , $15.6 million and $76.6 million for fiscal years 2016, 2015 and 2014, 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 December 30, January 1, January 2, Current: Foreign $ 18.5 $ 14.1 $ 22.6 State 7.0 7.2 4.7 Federal 50.2 58.8 33.2 75.7 80.1 60.5 Deferred: Foreign (2.8 ) 7.1 (1.0 ) State 0.2 (0.7 ) 3.3 Federal 3.3 (0.5 ) 23.4 0.7 5.9 25.7 Income tax expense $ 76.4 $ 86.0 $ 86.2 Reconciliations of income tax expense to the statutory corporate federal tax rate of 35% were as follows: (In millions) Years Ended December 30, January 1, January 2, Statutory tax expense $ 69.1 $ 64.0 $ 87.4 Increase (reduction) in taxes resulting from: State income taxes, net 4.5 4.7 5.4 Foreign tax effects 1.8 6.3 1.2 Change in valuation allowance 1.6 9.3 (9.2 ) Other, net (0.6 ) 1.7 1.4 Income tax expense $ 76.4 $ 86.0 $ 86.2 Tax Payments : We made net payments for income taxes in 2016, 2015 and 2014 of $63.4 million , $103.5 million and $117.0 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 December 30, 2016, various of our foreign subsidiaries had aggregate cumulative net operating losses ("NOL") carryforwards for foreign income tax purposes of approximately $95.6 million which are subject to various provisions of each respective country. Approximately $80.4 million of the NOL carryforwards may be carried forward indefinitely. The remaining NOL carryforwards expire at various times between 2017 and 2026 . Undistributed Earnings : As a result of our Board of Directors’ approval of the disposition of the Fasteners business during February 2015, we were no longer permanently reinvested with respect to the non-U.S. earnings of the Fasteners business, because, following the disposition, we intended to repatriate 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 included, as a component of discontinued operations, $10.0 million of 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 $656.0 million at December 30, 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 December 30, 2016, according to the foreign laws and treaties in place at that time, estimated U.S. federal income tax of approximately $60.2 million and various foreign jurisdiction withholding taxes of approximately $31.3 million would be payable upon the remittance of all earnings at December 30, 2016. Deferred Income Taxes : Significant components of our deferred tax assets (liabilities) included in "Other assets" and "Other liabilities" on the Consolidated Balance Sheets were as follows: (In millions) December 30, January 1, Deferred compensation and other postretirement benefits 46.9 36.0 Foreign NOL carryforwards and other 27.7 24.8 Accrued expenses and other 15.2 10.4 Inventory reserves 13.4 7.7 Unrealized foreign exchange — 5.8 Allowance for doubtful accounts 11.1 10.2 Gross deferred tax assets 114.3 94.9 Property, equipment, intangibles and other (107.1 ) (83.7 ) Gross deferred tax liabilities (107.1 ) (83.7 ) Deferred tax assets, net of deferred tax liabilities 7.2 11.2 Valuation allowance (20.7 ) (24.0 ) Net deferred tax liabilities $ (13.5 ) $ (12.8 ) Uncertain Tax Positions and Jurisdictions Subject to Examinations : A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2014, 2015 and 2016 is as follows: (In millions) 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 Additions for tax positions of prior years 0.4 Reductions for tax positions of prior years (0.7 ) Balance at December 30, 2016 $ 5.0 Interest and penalties accrued for unrecognized tax benefits were $0.2 million in 2016 and 2015, and $0.3 million in 2014. 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 $2.8 million , all of which would affect the effective tax rate, $0.3 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 $3.5 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 and later have not been examined by the Internal Revenue Service ("IRS") in the U.S., which is our most significant tax jurisdiction. For most states, fiscal tax years 2012 and later remain subject to examination. In Canada, the fiscal tax years 2012 and later are still subject to examination, while in the United Kingdom, the fiscal tax years 2015 and later remain subject to examination. |
PENSION PLANS
PENSION PLANS | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
PENSION PLANS | PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS Our defined benefit pension plans are the plans in the U.S., 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. 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 2016, 2015 and 2014, 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 2016, 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. These rates are adjusted to match the duration of the liabilities associated with the pension plans. At December 30, 2016 and January 1, 2016, we determined the consolidated weighted-average discount rate of all plans to be 3.73% and 3.98% , respectively, and used these rates to measure the projected benefit obligation ("PBO") at the end of each respective fiscal year end. Due primarily to the purchase of annuities by our U.S. and Europe plans, the PBO decreased to $481.8 million at the end of fiscal 2016 from $516.1 million at the end of fiscal 2015. Our consolidated net unfunded status was $69.1 million at the end of fiscal 2016 compared to $69.9 million at the end of 2015. A significant element in determining our net periodic benefit cost in accordance with U.S. GAAP is the expected return on plan assets. For 2016, we had assumed that the weighted-average expected long-term rate of return on plan assets would be 5.50% . This expected return on plan assets is included in the net periodic benefit cost for the fiscal year ended 2016. As a result of the combined effect of valuation changes in both the equity and bond markets, the plan assets produced an actual gain of approximately 11.9% and a loss of 1.9% in 2016 and 2015, respectively. The fair value of plan assets is $412.7 million at the end of fiscal 2016, compared to $446.2 million at the end of fiscal 2015. 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. In the fourth quarter of 2016, the Anixter Inc. Pension Plan was amended to allow for the benefits of certain retirees or beneficiaries to be transferred to a third-party annuity provider. We paid $10.5 million of additional contributions into the plan using excess cash from operations to fund the contributions. The plan purchased a $10.5 million annuity contract with a third-party insurance carrier and transferred the related pension obligations to the carrier. The funding of the premiums did not result in a settlement charge as the amount did not exceed the service and interest costs of the plan in 2016. In the fourth quarter of 2015, we commenced settlement of the liabilities of one of our Europe pension plans. At that time, we entered into a buy-in policy with an insurance carrier for that plan. In the second quarter of 2016, we terminated the buy-in policy and entered into an agreement for issuance of a buy-out policy with the insurance carrier for the pension obligation. Accumulated other comprehensive losses of approximately $9.6 million (£ 6.9 million ) were realized as a result of the buy-out policy and are reflected in our Consolidated Statements of Comprehensive Income. In the third quarter of 2015, we took two actions related to the Anixter Inc. Pension Plan in the U.S.. 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 U.S. 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. All non-union domestic employees hired or rehired before July 1, 2015, earn a benefit under a personal retirement account (hypothetical account balance). Each year, a participant’s account receives a credit equal to 2% 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. Effective December 31, 2013, we froze benefits provided under the Anixter Inc. Pension Plan to employees hired before June 1, 2004. These employees are covered under the personal retirement account pension formula described above for non-union domestic employees hired or rehired before July 1, 2015. 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 Actuaries' recent mortality experience study and reflected future mortality improvements based on the Social Security's expectations. In 2015 and 2016, the Society of Actuaries released new mortality improvement projection scales. As a result, we again updated U.S. mortality improvement assumptions in 2015 and 2016 for purposes of determining our mortality assumption used in the U.S. defined benefit plans' liability calculation. For the 2016 year end, we moved to the Society of Actuaries mortality improvement scale for improvements beyond the measurement date. The updated U.S. mortality assumptions resulted in a decrease of $0.8 million and $1.9 million to the benefit obligation as of the end of 2016 and 2015, respectively, prior to reflecting the discount rate change. 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 December 30, 2016 and January 1, 2016 and our asset allocation guidelines for such plans are summarized as follows. Domestic Plans December 30, January 1, 2016 Allocation Guidelines Min Target Max Large capitalization U.S. stocks 22.7 % 23.0 % 17 % 22 % 27 % Small to mid capitalization U.S. stocks 29.1 27.1 20 30 40 Emerging market equity 10.0 7.6 5 10 15 Total equity securities 61.8 57.7 62 Fixed income investments 35.0 37.9 31 38 45 Cash equivalents 3.2 4.4 — — 10 100.0 % 100.0 % 100 % Foreign Plans December 30, Allocation Guidelines Target Equity securities 61 % 60 % Fixed income investments 29 30 Other investments 10 10 100 % 100 % Foreign Plans January 1, Allocation Guidelines Target Equity securities 43 % 44 % Fixed income investments 22 22 Other investments 35 34 100 % 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 2016 and 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 2016 is 5.50% . 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) December 30, January 1, Changes to Balance: Beginning balance $ 112.5 $ 106.8 Recognized prior service cost 4.0 9.1 Recognized transition obligation (0.9 ) — Recognized net actuarial gain (14.8 ) (8.3 ) Prior service credit arising in current year (2.2 ) (29.8 ) Net actuarial loss arising in current year 20.6 34.7 Ending balance $ 119.2 $ 112.5 Components of Balance: Prior service credit $ (21.1 ) $ (25.0 ) Net actuarial loss 140.3 137.5 $ 119.2 $ 112.5 Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2017 are as follows: (In millions) Amortization of prior service credit $ (4.0 ) Amortization of actuarial loss 9.2 Total amortization expected $ 5.2 The following represents a reconciliation of the funded status of our pension plans from the beginning of fiscal 2015 to the end of fiscal 2016: Pension Benefits Domestic Plans Foreign Plans Total (In millions) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation: Beginning balance $ 250.1 $ 277.4 $ 266.0 $ 278.6 $ 516.1 $ 556.0 Service cost 3.2 3.9 5.8 6.6 9.0 10.5 Interest cost 11.5 11.6 7.8 9.1 19.3 20.7 Actuarial (gain) loss 13.0 (24.3 ) 43.0 4.0 56.0 (20.3 ) Lump sum settlement — (10.2 ) — — — (10.2 ) Benefits paid from plan assets (7.6 ) (7.3 ) (16.1 ) (7.5 ) (23.7 ) (14.8 ) Benefits paid from Company assets (0.9 ) (0.8 ) — — (0.9 ) (0.8 ) Plan participants contributions — — 0.2 0.2 0.2 0.2 Foreign currency exchange rate changes — — (26.5 ) (24.3 ) (26.5 ) (24.3 ) Impact due to curtailment — (0.5 ) — (0.7 ) — (1.2 ) Impact due to annuity purchase (10.5 ) — (57.2 ) — (67.7 ) — Special termination benefits — 0.3 — — — 0.3 Ending balance $ 258.8 $ 250.1 $ 223.0 $ 266.0 $ 481.8 $ 516.1 Change in plan assets at fair value: Beginning balance $ 218.1 $ 229.5 $ 228.1 $ 232.2 $ 446.2 $ 461.7 Actual return on plan assets 18.8 (13.0 ) 32.1 4.6 50.9 (8.4 ) Company contributions to plan assets 19.5 19.1 9.5 18.6 29.0 37.7 Benefits paid from plan assets (7.6 ) (17.5 ) (16.1 ) (7.5 ) (23.7 ) (25.0 ) Plan participants contributions — — 0.2 0.2 0.2 0.2 Purchase of annuity (10.5 ) — (57.2 ) — (67.7 ) — Foreign currency exchange rate changes — — (22.2 ) (20.0 ) (22.2 ) (20.0 ) Ending balance $ 238.3 $ 218.1 $ 174.4 $ 228.1 $ 412.7 $ 446.2 Reconciliation of funded status: Projected benefit obligation $ (258.8 ) $ (250.1 ) $ (223.0 ) $ (266.0 ) $ (481.8 ) $ (516.1 ) Plan assets at fair value 238.3 218.1 174.4 228.1 412.7 446.2 Funded status $ (20.5 ) $ (32.0 ) $ (48.6 ) $ (37.9 ) $ (69.1 ) $ (69.9 ) Included in the 2016 and 2015 funded status is accrued benefit cost of approximately $16.8 million and $16.2 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations. Noncurrent asset $ — $ — $ 0.3 $ 0.3 $ 0.3 $ 0.3 Current liability (0.9 ) (0.9 ) — — (0.9 ) (0.9 ) Noncurrent liability (19.6 ) (31.1 ) (48.9 ) (38.2 ) (68.5 ) (69.3 ) Funded status $ (20.5 ) $ (32.0 ) $ (48.6 ) $ (37.9 ) $ (69.1 ) $ (69.9 ) Weighted-average assumptions used for measurement of the projected benefit obligation: Discount rate 4.36 % 4.65 % 2.99 % 3.35 % 3.73 % 3.98 % Salary growth rate 4.63 % 4.60 % 3.01 % 3.08 % 3.73 % 3.75 % 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 December 30, 2016, January 1, 2016 and January 2, 2015: Pension Benefits Domestic Plans Foreign Plans Total (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of net periodic cost: Service cost $ 4.7 $ 5.2 $ 4.8 $ 5.9 $ 6.6 $ 5.9 $ 10.6 $ 11.8 $ 10.7 Interest cost 11.5 11.6 10.8 7.8 9.1 10.6 19.3 20.7 21.4 Expected return on plan assets (14.2 ) (15.1 ) (13.9 ) (9.4 ) (10.5 ) (12.5 ) (23.6 ) (25.6 ) (26.4 ) Net amortization 2.4 1.3 (2.2 ) 2.5 2.9 1.1 4.9 4.2 (1.1 ) Settlement charge — — — 9.6 — — 9.6 — — Net periodic cost (benefit) $ 4.4 $ 3.0 $ (0.5 ) $ 16.4 $ 8.1 $ 5.1 $ 20.8 $ 11.1 $ 4.6 Weighted-average assumption used to measure net periodic cost: Discount rate 4.65 % 4.14 % 4.81 % 3.35 % 3.44 % 4.49 % 3.98 % 3.79 % 4.64 % Expected return on plan assets 6.50 % 6.50 % 6.50 % 4.54 % 4.77 % 5.67 % 5.50 % 5.63 % 6.08 % Salary growth rate 4.60 % 4.60 % 4.63 % 3.08 % 3.12 % 3.27 % 3.75 % 3.79 % 4.04 % 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 U.S. 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 2016, 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 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 December 30, 2016 and January 1, 2016, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by us are as follows: As of December 30, 2016 Domestic Plans Foreign Plans 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 $ 7.5 $ — $ — $ 7.5 $ 0.6 $ — $ — $ 0.6 $ 8.1 $ — $ — $ 8.1 Equity securities: Domestic 123.5 — — 123.5 — 43.2 — 43.2 123.5 43.2 — 166.7 International (a) 23.7 — — 23.7 — 63.5 — 63.5 23.7 63.5 — 87.2 Fixed income securities: Domestic — 5.1 — 5.1 — 41.3 — 41.3 — 46.4 — 46.4 Corporate bonds — 78.5 — 78.5 — 9.6 — 9.6 — 88.1 — 88.1 Insurance funds — — — — — 16.0 — 16.0 — 16.0 — 16.0 Other — — — — — 0.2 — 0.2 — 0.2 — 0.2 Total at December 30, 2016 $ 154.7 $ 83.6 $ — $ 238.3 $ 0.6 $ 173.8 $ — $ 174.4 $ 155.3 $ 257.4 $ — $ 412.7 (a) Investment in funds outside the country where the pension plan originates is considered International. As of January 1, 2016 Domestic Plans Foreign Plans 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. We had no level 3 assets in 2016. Changes in our Level 3 plan assets, which are included in operations, for the years ended December 30, 2016 and January 1, 2016 included: (In millions) January 1, 2016 Balance Net purchases, Issuances and Settlements December 30, 2016 Balance Asset Categories: Insurance funds $ 58.9 $ (58.9 ) $ — Total Level 3 investments $ 58.9 $ (58.9 ) $ — (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 estimated future benefits payments are as follows at the end of 2016: Estimated Future Benefit Payments (In millions) Domestic Foreign Total 2017 $ 9.0 $ 4.0 $ 13.0 2018 9.8 4.3 14.1 2019 10.8 4.4 15.2 2020 11.6 4.5 16.1 2021 12.3 4.8 17.1 2022-2026 72.4 31.2 103.6 Total $ 125.9 $ 53.2 $ 179.1 The accumulated benefit obligation in 2016 and 2015 was $256.4 million and $248.1 million , respectively, for the Domestic Plans and $192.9 million and $235.7 million , respectively, for the Foreign Plans. We had 10 plans in 2016 and 2015 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 $390.2 million and $368.7 million for 2016 and 2015, respectively, and aggregate fair value of plan assets was $347.1 million and $324.7 million for 2016 and 2015, respectively. We currently estimate that we will make contributions of approximately $9.0 million to our Domestic Plans and $7.5 million to our Foreign Plans in 2017. In addition, we estimate that we will make $0.9 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 U.S. 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 years 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% of a participant's contribution up to 5% of the participant's compensation. 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 $12.2 million , $9.3 million and $9.2 million in 2016, 2015 and 2014, 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 ten -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 December 30, 2016, the deferred compensation liability included in "Accrued expenses" and "Other liabilities" on the Consolidated Balance Sheet was $4.9 million and $40.7 million , respectively. At January 1, 2016, the deferred compensation liability included in "Accrued expenses" and "Other liabilities" on the Consolidated Balance Sheet was $3.5 million and $42.9 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 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 December 30, 2016 and January 1, 2016, the cash surrender value of $35.9 million and $34.3 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 |
Dec. 30, 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 2016 and 2015. Common Stock We have the authority to issue 100.0 million shares of common stock, par value $1.00 per share, of which 33.4 million shares and 33.3 million shares were outstanding at the end of fiscal 2016 and 2015, respectively. Share Repurchases We did not repurchase any shares during any of the periods presented in these Consolidated Financial Statements. Stock-Based Compensation At December 30, 2016, there were 1.2 million shares reserved for issuance under all incentive plans. Restricted Stock Units and Performance 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 $13.7 million , $11.3 million and $10.2 million in 2016, 2015 and 2014, respectively. During the first quarter of 2016, we initiated a performance-based restricted stock unit ("performance units") program that will vest in one-third tranches to be evaluated on the anniversary of the first, second and third performance cycles. Each evaluation period will be based on the achievement of our total shareholder return ("TSR") relative to the TSR of the S&P Mid Cap 400 index. The issuance of the vested shares will be on the final vesting date of year three. The granted units will be adjusted based on the specific payout percentage of the grant agreement. The fair value of each tranche related to the performance units were estimated at the grant date using the Monte Carlo Simulation pricing model. 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 $2.3 million , $2.0 million and $1.9 million in 2016, 2015 and 2014, respectively. The total fair value of stock units that vested was $12.0 million , $13.4 million and $11.7 million in 2016, 2015 and 2014, 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 Fair Value (b) Employee Stock Units (c) Weighted Average Grant Date Fair Value (b) 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 Granted 33.3 56.34 491.5 39.93 Converted — — (125.2 ) 80.58 Canceled — — (75.0 ) 55.89 Outstanding balance at December 30, 2016 341.1 $ 52.90 727.4 $ 56.25 (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 2.3 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 2016, 2015 and 2014 was $5.4 million , $12.8 million and $21.0 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 2016, 2015 and 2014 was $79.9 million , $44.9 million and $60.7 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 2016, 2015 and 2014 was $27.6 million , $18.6 million and $25.0 million , respectively. Stock Options Options previously granted under these plans have been granted with exercise prices at the fair market value of the common stock on the date of grant. All options expire ten years after the date of grant. These options were granted with vesting periods of four years representing the requisite service period based on the specific terms of the 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 2016, 2015 or 2014. Our compensation expense associated with the stock options in 2016, 2015 and 2014 was $0.5 million , $0.9 million and $1.3 million , respectively. The total fair value of stock options that vested was $1.0 million , $1.7 million and $1.7 million in 2016, 2015 and 2014, respectively. The following table summarizes the activity under the employee option plans: (options in thousands) Employee Options Weighted Average Exercise Price 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 Exercised (44.8 ) 52.55 Balance at December 30, 2016 488.2 $ 48.68 Options exercisable at year-end: 2014 405.6 $ 44.65 2015 472.5 $ 47.15 2016 468.4 $ 48.00 The weighted-average remaining contractual term for options outstanding for 2016 was 4.2 years . The weighted-average remaining contractual term for options exercisable for 2016 was 4.1 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 2016 and 2014 was $1.0 million and $7.9 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 2016, 2015 and 2014 was $15.8 million , $ 19.6 million and $20.9 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 2016, 2015 and 2014 was $15.5 million , $15.9 million and $17.7 million , respectively. Summary of Non-Vested Shares The following table summarizes the changes to the unvested shares: (shares in thousands) Non-vested Option Weighted-average Non-vested Performance Shares (a) Weighted-average Grant Date Fair Value Balance at January 1, 2016 60.5 $ 26.18 — — Granted — — 85.8 $ 21.53 Vested (40.7 ) $ 25.80 — — Canceled — — (3.0 ) $ 21.53 Balance at December 30, 2016 19.8 $ 26.95 82.8 $ 21.53 (a) All non-vested stock options and performance units are expected to vest. As of December 30, 2016, there was $17.4 million and $0.1 million of total unrecognized compensation cost related to non-vested stock units and options granted to employees, respectively, which is expected to be recognized over a weighted-average period of 1.5 years and 1.0 year , respectively. |
BUSINESS SEGMENTS
BUSINESS SEGMENTS | 12 Months Ended |
Dec. 30, 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. We have identified Network & Security Solutions ("NSS"), Electrical and Electronic Solutions ("EES") and Utility Power Solutions ("UPS") as reportable segments. We incur corporate expenses to obtain and coordinate financing, tax, information technology, legal and other related services, certain of which were rebilled to subsidiaries. These corporate expenses were historically allocated to our business segments based primarily on projected sales and estimated use of time. A portion of these corporate expenses were reported in corporate as they historically had been allocated to the Fasteners segment but were not considered directly related to the discontinued operations. Beginning in the first quarter of 2016, we no longer allocate corporate expenses to our business segments. We also have various corporate assets which are reported in corporate. Segment assets may not include jointly used 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 2016. 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. We also have largely specialized our sales organization by segment. 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. Segment Financial Information Segment information for 2016, 2015 and 2014 are as follows: 2016 NSS EES UPS Corporate (a) Total Net Sales $ 4,083.8 $ 2,103.2 $ 1,435.8 $ — $ 7,622.8 Operating income 275.8 97.5 56.7 (144.7 ) 285.3 Depreciation 3.2 2.7 4.2 17.8 27.9 Amortization of intangible assets 14.1 8.5 15.0 — 37.6 Total assets 1,974.0 983.6 821.9 313.9 4,093.4 Capital expenditures 3.4 2.9 2.5 23.8 32.6 2015 (As revised) NSS EES (b) UPS (b) Corporate (a) Total Net Sales $ 3,968.2 $ 1,816.5 $ 405.8 $ — $ 6,190.5 Operating income 258.2 121.1 22.4 (133.9 ) 267.8 Depreciation 3.6 1.4 1.2 16.0 22.2 Amortization of intangible assets 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 (As revised) NSS (c) EES UPS Corporate (a) Total Net Sales $ 3,526.0 $ 1,911.1 $ 69.9 $ — $ 5,507.0 Operating income 261.1 162.5 10.9 (124.4 ) 310.1 Depreciation 3.0 1.2 — 15.8 20.0 Amortization of intangible assets 4.9 5.7 — — 10.6 Total assets 1,863.7 972.4 — 337.8 3,173.9 Capital expenditures 2.6 1.3 — 30.3 34.2 (a) Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. (b) 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" . (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" . Net sales and operating income included in the tables above in our UPS segment were previously reported in our EES segment prior to the Power Solutions acquisition on October 5, 2015. Operating results were restated for the years ended January 1, 2016 and January 2, 2015 due to change in composition of our reportable segments in the first quarter of 2016. The items impacting operating income by segment in 2016, 2015 and 2014 are reflected in the tables below. All other items impacted consolidated results only and were not allocated to segments. Year Ended December 30, 2016 (In millions) NSS EES UPS Corporate Total Amortization of intangible assets $ (14.1 ) $ (8.5 ) $ (15.0 ) $ — $ (37.6 ) UK pension settlement — — — (9.6 ) (9.6 ) Restructuring charge (1.7 ) (1.3 ) (2.1 ) (0.3 ) (5.4 ) Acquisition and integration costs — — (0.3 ) (4.8 ) (5.1 ) Latin America bad debt provision (3.9 ) (3.7 ) — — (7.6 ) Total of items impacting operating income $ (19.7 ) $ (13.5 ) $ (17.4 ) $ (14.7 ) $ (65.3 ) Year Ended January 1, 2016 (In millions) NSS EES UPS Corporate Total Amortization of intangible assets $ (14.7 ) $ (6.3 ) $ (3.9 ) $ — $ (24.9 ) UK pension settlement — — — (0.4 ) (0.4 ) Restructuring charge (2.4 ) (3.2 ) (0.1 ) (2.5 ) (8.2 ) Acquisition and integration costs — — (0.2 ) (13.0 ) (13.2 ) Write-off of capitalized software — — — (3.1 ) (3.1 ) Latin America bad debt provision (10.7 ) (1.0 ) — — (11.7 ) Dilapidation provision — — — (1.7 ) (1.7 ) Total of items impacting operating income $ (27.8 ) $ (10.5 ) $ (4.2 ) $ (20.7 ) $ (63.2 ) Year Ended January 2, 2015 (In millions) NSS EES UPS Corporate Total Amortization of intangible assets $ (4.9 ) $ (5.7 ) $ — $ — $ (10.6 ) Acquisition and integration costs (7.0 ) (0.2 ) — — (7.2 ) Total of items impacting operating income $ (11.9 ) $ (5.9 ) $ — $ — $ (17.8 ) Geographic Information We attribute foreign sales based on the location of the customer purchasing the product. In North America (U.S. and Canada), sales in the U.S. were $5,613.6 million , $4,137.9 million and $3,287.4 million in 2016, 2015 and 2014, respectively. Canadian sales were $771.0 million , $691.3 million and $751.8 million in 2016, 2015 and 2014, respectively. No other individual foreign country’s net sales within EMEA (Europe, Middle East and Africa) or the Emerging Markets (Asia Pacific and Latin America) were material in 2016, 2015 and 2014. Our tangible long-lived assets primarily consist of $121.0 million of property and equipment in the U.S. 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 December 30, 2016, January 1, 2016 and January 2, 2015: Years Ended (In millions) December 30, 2016 January 1, 2016 January 2, 2015 Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales North America $ 6,384.6 83.8 % $ 4,829.2 78.0 % $ 4,039.2 73.3 % EMEA 570.1 7.4 % 601.9 9.7 % 648.5 11.8 % Emerging Markets 668.1 8.8 % 759.4 12.3 % 819.3 14.9 % Net sales $ 7,622.8 100.0 % $ 6,190.5 100.0 % $ 5,507.0 100.0 % (In millions) December 30, 2016 January 1, 2016 Total assets North America $ 3,376.8 $ 3,371.2 EMEA 224.9 252.9 Emerging Markets 491.7 514.1 Total assets $ 4,093.4 $ 4,138.2 (In millions) December 30, 2016 January 1, 2016 Net property and equipment North America $ 126.0 $ 115.7 EMEA 8.1 9.9 Emerging Markets 6.2 6.2 Net property and equipment $ 140.3 $ 131.8 Goodwill Assigned to Segments The following table presents the changes in goodwill allocated to our reporting units from January 2, 2015 to December 30, 2016 : (In millions) NSS EES UPS Total Balance as of January 2, 2015 $ 403.4 $ 178.9 $ — $ 582.3 Acquisition related (a) (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 Acquisition related (b) (0.5 ) 0.7 4.3 4.5 Reassignment of goodwill 11.2 (31.8 ) 20.6 — Foreign currency translation 1.0 0.2 2.4 3.6 Balance as of December 30, 2016 $ 405.0 $ 181.0 $ 178.6 $ 764.6 (a) 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 $829.4 million (net of cash and outstanding checks of $11.7 million ). (b) In the first, second and third quarters of 2016, we recorded an immaterial increase in goodwill primarily related to determining the fair value of inventory and fixed assets relating to the Power Solutions acquisition. |
SUMMARIZED FINANCIAL INFORMATIO
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
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) December 30, January 1, Assets: Current assets $ 2,688.3 $ 2,727.2 Property, equipment and capital leases, net 148.4 141.1 Goodwill 764.6 756.5 Intangible assets, net 415.4 453.8 Other assets 84.8 72.1 $ 4,101.5 $ 4,150.7 Liabilities and Stockholders' Equity: Current liabilities $ 1,264.9 $ 1,156.8 Subordinated notes payable to parent 0.7 — Long-term debt 1,390.1 1,655.6 Other liabilities 156.8 161.1 Stockholder’s equity 1,289.0 1,177.2 $ 4,101.5 $ 4,150.7 ANIXTER INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Twelve Months Ended (In millions) December 30, January 1, January 2, Net sales $ 7,622.8 $ 6,190.5 $ 5,507.0 Operating income $ 291.6 $ 273.8 $ 316.0 Income from continuing operations before income taxes $ 202.6 $ 187.9 $ 254.3 Net (loss) income from discontinued operations $ (0.6 ) $ 30.7 $ 31.4 Net income $ 123.8 $ 130.7 $ 197.7 Comprehensive income $ 103.4 $ 38.2 $ 86.3 |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Dec. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 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 December 30, 2016 and January 1, 2016 . 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. We have never paid ordinary cash dividends on our common stock. As of February 15, 2017 , we had 1,761 shareholders of record. (In millions, except per share amounts) Year ended December 30, 2016 First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) Net sales $ 1,816.2 $ 1,955.7 $ 1,956.3 $ 1,894.6 Cost of goods sold 1,445.4 1,562.3 1,559.6 1,507.5 Operating income 60.3 56.7 87.3 81.0 Income from continuing operations before income taxes 37.4 36.1 65.4 58.6 Net income from continuing operations 23.2 20.8 40.3 36.8 Net (loss) income from discontinued operations (0.4 ) (0.3 ) 0.1 — Net income $ 22.8 $ 20.5 $ 40.4 $ 36.8 Income per share: Basic: Continuing operations $ 0.70 $ 0.62 $ 1.21 $ 1.10 Discontinued operations $ (0.01 ) $ (0.01 ) $ — $ — Net income $ 0.69 $ 0.61 $ 1.21 $ 1.10 Diluted: Continuing operations $ 0.70 $ 0.62 $ 1.20 $ 1.09 Discontinued operations $ (0.02 ) $ (0.01 ) $ 0.01 $ — Net income $ 0.68 $ 0.61 $ 1.21 $ 1.09 Common stock price (NYSE symbol: AXE): High $ 60.10 $ 63.49 $ 65.96 $ 84.05 Low $ 37.60 $ 49.29 $ 51.50 $ 58.99 Close $ 52.48 $ 54.09 $ 64.50 $ 81.05 (a) In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. (b) In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. (c) In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million . (d) In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million of acquisition and integration costs. (In millions, except per share amounts) Year ended January 1, 2016 First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) 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 intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million . (b) In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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 $5.0 million of intangible asset amortization expense and $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 $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt" . |
CONDENSED FINANCIAL INFORMATION
CONDENSED FINANCIAL INFORMATION OF REGISTRANT ANIXTER INTERNATIONAL INC. | 12 Months Ended |
Dec. 30, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Years Ended (In millions) December 30, January 1, January 2, Operating loss $ (5.0 ) $ (4.8 ) $ (4.4 ) Other income: Interest income, including intercompany 5.7 5.0 4.8 Income before income taxes and equity in earnings of subsidiaries 0.7 0.2 0.4 Income tax expense 0.2 0.2 0.1 Income before equity in earnings of subsidiaries 0.5 — 0.3 Equity in earnings of subsidiaries 120.0 127.6 194.5 Net income $ 120.5 $ 127.6 $ 194.8 Comprehensive income $ 100.1 $ 35.1 $ 83.4 See accompanying note to the condensed financial information of registrant. BALANCE SHEETS (In millions) December 30, January 1, ASSETS Current assets: Cash and cash equivalents $ 0.2 $ 0.1 Other assets 0.1 0.6 Total current assets 0.3 0.7 Other assets (primarily investment in and advances to subsidiaries) 1,294.2 1,181.8 $ 1,294.5 $ 1,182.5 LIABILITIES AND STOCKHOLDERS’ EQUITY Liabilities: Accounts payable and accrued expenses, due currently $ 0.5 $ 0.7 Other non-current liabilities 1.8 2.4 Total liabilities 2.3 3.1 Stockholders’ equity: Common stock 33.4 33.3 Capital surplus 261.8 249.2 Retained earnings 1,247.9 1,127.4 Accumulated other comprehensive loss (250.9 ) (230.5 ) Total stockholders’ equity 1,292.2 1,179.4 $ 1,294.5 $ 1,182.5 See accompanying note to the condensed financial information of registrant. STATEMENTS OF CASH FLOWS Years Ended December 30, January 1, January 2, (In millions) Operating activities: Net income $ 120.5 $ 127.6 $ 194.8 Adjustments to reconcile net income to net cash used in operating activities: Equity in earnings of subsidiaries (120.0 ) (127.6 ) (194.5 ) Dividend from subsidiary 4.8 6.9 2.4 Stock-based compensation 2.3 2.0 1.9 Income tax expense 0.2 0.2 0.1 Intercompany transactions (9.3 ) (9.3 ) (9.8 ) Changes in assets and liabilities, net 0.5 (0.1 ) — Net cash used in operating activities (1.0 ) (0.3 ) (5.1 ) Investing activities: — — — Financing activities: Proceeds from stock options exercised 2.4 — 7.2 Loans from (to) subsidiaries, net (0.7 ) 1.5 (0.5 ) Other, net (0.6 ) (1.1 ) (1.7 ) Net cash provided by financing activities 1.1 0.4 5.0 Increase (decrease) in cash and cash equivalents 0.1 0.1 (0.1 ) Cash and cash equivalents at beginning of period 0.1 — 0.1 Cash and cash equivalents at end of period $ 0.2 $ 0.1 $ — See accompanying 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" in the notes to the Consolidated Financial Statements for details on dividend restrictions from Anixter Inc. to the parent company. |
Significant Accounting Policies [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" in the notes to the Consolidated Financial Statements for details on dividend restrictions from Anixter Inc. to the parent company. |
SUMMARY OF SIGNIFICANT ACCOUN24
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 30, 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. |
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 2016 , 2015 and 2014. 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 formed the Utility Power Solutions ("UPS") segment. |
Use of estimates | Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles ("GAAP") 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. Our significant estimates include allowance for doubtful accounts, inventory obsolescence, pension obligations, goodwill and indefinite-lived intangible assets, deferred tax assets and uncertain tax positions. |
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 $43.6 million and $37.5 million at the end of 2016 and 2015 , 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 $20.1 million , $25.8 million and $11.4 million in 2016 , 2015 and 2014 , 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 December 30, 2016 and January 1, 2016 , we reported inventory of $1,178.3 million and $1,182.6 million , respectively (net of inventory reserves of $48.3 million and $42.4 million , respectively). 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 December 30, 2016 , net property and equipment consisted of $101.9 million of equipment and computer software, $36.0 million of buildings and leasehold improvements and $2.4 million of land. 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. 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 20 years. Buildings are recorded at cost and depreciated by applying the straight-line method over their estimated useful lives, which range from 7 to 40 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 $27.9 million , $22.2 million and $20.0 million in 2016 , 2015 and 2014 , 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 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 December 30, 2016 and January 1, 2016 , capitalized costs, net of accumulated amortization, for software developed for internal use were approximately $57.7 million and $49.5 million , respectively. Amortization expense charged to continuing operations for capitalized costs was $3.7 million , $2.8 million and $2.5 million in 2016, 2015 and 2014, 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 2016 , 2015 and 2014 were $0.7 million , $1.2 million and $0.8 million , respectively. |
Goodwill | Goodwill: We evaluate goodwill for impairment annually at the beginning of 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. As a result of the reclassification of net sales of various product categories between our segments during the first half of 2016 , we reassigned the carrying amount of goodwill based on the relative fair value of our reporting units. We then performed the quantitative two-step impairment test of goodwill for all reporting units before and after the change in composition of our segments utilizing a combination of the income and market approaches, both of which are broadly defined below. We concluded that no impairment of goodwill existed and the carrying amount of goodwill to be fully recoverable. In connection with our annual assessment of goodwill at the beginning of the third quarter of 2016 , we bypassed the qualitative assessment and performed a quantitative test for all reporting units and utilized a combination of the income and market approaches, 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 plus a forecast risk, 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. During the fourth quarter, we performed an interim goodwill impairment assessment for our NSS, EES and UPS reporting units. Although all of our reporting units have fair values that currently exceed the underlying carrying values, the margin of fair value over carrying value of our NSS and UPS reporting units were greater than 10%, while the fair value of our EES reporting unit was less than 10% over its carrying value due to the combined effects of the weaker industrial economy and lower commodity prices on a year over year basis. As a result, this unit is more susceptible to impairment risk from further adverse macroeconomic conditions. Any such adverse changes in the future could reduce the underlying cash flows used to estimate fair values and could result in a decline in fair value that could trigger future impairment charges relating to the EES reporting unit. |
Intangible Assets | Intangible assets: As of December 30, 2016 and January 1, 2016 , our intangible asset balances are as follows: December 30, 2016 January 1, 2016 (In millions) Average useful life (in years) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships 6-20 $ 458.5 $ (80.1 ) $ 461.4 $ (48.4 ) Exclusive supplier agreement 21 22.1 (2.4 ) 22.0 (1.6 ) Trade names 3-10 12.6 (7.5 ) 13.3 (5.8 ) Trade names Indefinite 10.6 — 10.6 — Non-compete agreements 1-5 6.2 (4.6 ) 4.5 (2.2 ) Total $ 510.0 $ (94.6 ) $ 511.8 $ (58.0 ) 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. 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 $31.8 million per year for the next five years , of which $16.2 million and $11.9 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: Twelve Months Ended (In millions) December 30, January 1, January 2, Other, net: Foreign exchange $ (10.8 ) $ (14.9 ) $ (8.2 ) Foreign exchange devaluations — (3.6 ) (8.0 ) Cash surrender value of life insurance policies 1.2 (0.8 ) 0.8 Other 0.5 (1.8 ) (0.6 ) Total other, net $ (9.1 ) $ (21.1 ) $ (16.0 ) 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 again regarding the bolivar, which required us to use the Sistema Marginal de Divisas or Marginal Exchange System ("SIMADI") a "completely free floating" rate. As a result, the Venezuelan bolivar was devalued from approximately 52.0 bolivars to one USD to approximately 200.0 bolivars to one USD in the year ended January 1, 2016 . Due to these devaluations, we recorded a foreign exchange loss of $3.6 million for the year ended January 1, 2016 . During 2016 , the Venezuelan bolivar was devalued from approximately 200.0 bolivars to one USD to approximately 673.0 bolivars to one USD, which we believe will be the rate available to us in the event we repatriate cash from Venezuela. This devaluation did not have a material impact on our Consolidated Financial Statements as we have significantly less exposure in Venezuela in 2016 . 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 pesos to one USD after the central bank scaled back its intervention in a bid to preserve USD cash reserves. As a result of these devaluations, we recorded foreign exchange losses in these two countries of $8.0 million in the first quarter of 2014. Due to the strengthening of the USD against certain foreign currencies, primarily in Europe and Latin America, we recorded additional foreign exchange losses of $10.8 million , $14.9 million and $8.2 million in 2016, 2015 and 2014, respectively. 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 December 30, 2016 and January 1, 2016 , 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 December 30, 2016 and January 1, 2016 , the gross notional amount of the foreign currency forward contracts outstanding was approximately $114.8 million and $196.1 million , respectively. At December 30, 2016 and January 1, 2016 , the net notional amount of the foreign currency forward contracts outstanding was approximately $90.9 million and $132.8 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 resulted in changes in the cash surrender value of our company owned life insurance policies associated with our sponsored deferred compensation program. |
Fair value measurement | Fair value measurement: Our assets and liabilities measured at fair value on a recurring basis consist of foreign currency forward contracts and the assets of our defined benefit plans. The fair value of the foreign currency forward contracts is discussed above in the section titled "Other, net." The fair value of the assets of our defined benefit plans is discussed in Note 9. "Pension Plans, Post-Retirement Benefits and Other Benefits" . 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 $34.9 million and $29.1 million at December 30, 2016 and January 1, 2016 , 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 $12.4 million , $13.2 million and $12.6 million in 2016 , 2015 and 2014, 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 $113.9 million , $102.7 million and $99.5 million in 2016 , 2015 and 2014, respectively. |
Stock-based compensation | Stock-based compensation: 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 loss: We accumulate unrealized gains and losses in "Accumulated other comprehensive loss" ("AOCI"). These changes are also reported in "Other comprehensive loss" 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 based on available evidence. 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. We had 0.2 million in 2016 and 2015 and 0.3 million in 2014, 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 2016 , 2015 and 2014, the antidilutive stock options and units were immaterial. |
Recently issued and adopted accounting pronouncements | Recently issued and adopted accounting pronouncements: In August 2016 , the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments , which makes eight targeted changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The update provides specific guidance on cash flow classification issues that are not currently addressed by U.S. Generally Accepted Accounting Principles and thereby reduces the current diversity in practice. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted. We adopted ASU 2016-15 as of September 30, 2016 on a retrospective basis for all cash flow statement periods presented. The adoption of this standard had no impact on the Company's previously reported cash flows. |
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 , and issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016 and May 2016 within ASU 2015-14, ASU 2016-08, ASU 2016-10 and ASU 2016-12, respectively. The core principle of this new revenue recognition guidance is that a company will recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. The new guidance defines a five-step process to achieve this core principle, and in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than are required under current guidance, including 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, among others. The new guidance 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 new guidance provides for two transition methods: a full retrospective approach and a modified retrospective approach. We will adopt the new revenue recognition guidance in the first quarter of our fiscal year 2018 and anticipate utilizing the modified retrospective method of adoption. We are continuing to evaluate the impact of this guidance on our consolidated results of operations and financial condition. We have developed a multi-phase plan to assess the impact of adoption on our material revenue streams, evaluate the new disclosure requirements, and identify and implement appropriate changes to our business processes, systems and controls to support recognition and disclosure under the new guidance. We are currently in the process of completing our initial analysis and performing detailed reviews of significant contracts to determine any adjustments necessary to existing accounting policies and to support an evaluation of the impact on our results of operations and financial condition. In February 2016, the FASB issued ASU 2016-02, Leases , which requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The guidance modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adoption of this ASU on our Consolidated Financial Statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting , which changes how companies account for certain aspects of share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, allows an employer to repurchase more of an employee’s shares than previously allowed for tax withholding purposes without triggering liability accounting, allows a company to make a policy election to account for forfeitures as they occur, and eliminates the requirement that excess tax benefits be realized before companies can recognize them. The new guidance also requires excess tax benefits and tax shortfalls to be presented on the cash flow statement as an operating activity rather than as a financing activity, and clarifies that cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation are to be presented as a financing activity. 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 are currently evaluating the impact of adoption of this ASU on our Consolidated Financial Statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses , which requires the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We are currently evaluating 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 |
Dec. 30, 2016 | |
Schedule Of Finite And Indefinite Lived Intangible Assets By Major Class | As of December 30, 2016 and January 1, 2016 , our intangible asset balances are as follows: December 30, 2016 January 1, 2016 (In millions) Average useful life (in years) Gross carrying amount Accumulated amortization Gross carrying amount Accumulated amortization Customer relationships 6-20 $ 458.5 $ (80.1 ) $ 461.4 $ (48.4 ) Exclusive supplier agreement 21 22.1 (2.4 ) 22.0 (1.6 ) Trade names 3-10 12.6 (7.5 ) 13.3 (5.8 ) Trade names Indefinite 10.6 — 10.6 — Non-compete agreements 1-5 6.2 (4.6 ) 4.5 (2.2 ) Total $ 510.0 $ (94.6 ) $ 511.8 $ (58.0 ) |
Summary of Components of Other Net Reflected in Consolidated Statements of Operations | Other, net: The following represents the components of "Other, net" as reflected in the Consolidated Statements of Income: Twelve Months Ended (In millions) December 30, January 1, January 2, Other, net: Foreign exchange $ (10.8 ) $ (14.9 ) $ (8.2 ) Foreign exchange devaluations — (3.6 ) (8.0 ) Cash surrender value of life insurance policies 1.2 (0.8 ) 0.8 Other 0.5 (1.8 ) (0.6 ) Total other, net $ (9.1 ) $ (21.1 ) $ (16.0 ) |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 12 Months Ended |
Dec. 30, 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] | The following represents the components of the results from discontinued operations as reflected in our Consolidated Statements of Income: Twelve Months Ended (In millions) December 30, January 1, January 2, Net sales $ 1.7 $ 405.9 $ 938.5 Operating (loss) income $ (0.2 ) $ 14.2 $ 50.8 (Loss) income from discontinued operations before income taxes $ (0.1 ) $ 11.9 $ 45.2 (Loss) gain on sale of discontinued operations $ (0.7 ) $ 41.0 $ — Income tax (benefit) expense from discontinued operations $ (0.2 ) $ 22.2 $ 13.8 Net (loss) income from discontinued operations $ (0.6 ) $ 30.7 $ 31.4 |
Disposal Group, Including Discontinued operations, Balance Sheet [Table Text Block] | As reflected on our Consolidated Balance Sheets as of December 30, 2016 and January 1, 2016 , the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows: (In millions) December 30, January 1, Assets of discontinued operations: Accounts receivable $ 0.1 $ 2.6 Inventories — 1.2 Other current assets 0.1 — Total assets of discontinued operations $ 0.2 $ 3.8 Liabilities of discontinued operations: Accounts payable $ 0.2 $ 1.3 Accrued expenses 2.2 4.0 Other liabilities — 1.7 Total liabilities of discontinued operations $ 2.4 $ 7.0 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Business Acquisition [Line Items] | |
Acquisition pro forma information | Twelve Months Ended (In millions, except per share amounts) January 1, 2016 January 2, 2015 Net sales $ 7,733.4 $ 7,831.0 Net income from continuing operations $ 107.1 $ 180.5 Income per share from continuing operations: Basic $ 3.22 $ 5.46 Diluted $ 3.20 $ 5.41 |
Power Solutions [Member] | |
Business Acquisition [Line Items] | |
Purchase price allocation | (In millions) Cash $ 11.7 Current assets, net 560.1 Property and equipment, net 30.6 Goodwill 194.8 Intangible assets 280.9 Non-current assets 5.6 Current liabilities (234.1 ) Non-current liabilities (8.5 ) Total purchase price $ 841.1 |
Intangible assets acquired | (In millions) Average useful life (in years) Fair value Customer relationships 14-18 $ 278.5 Non-compete agreements 1 2.4 Total intangible assets $ 280.9 |
Tri-Ed | |
Business Acquisition [Line Items] | |
Purchase price allocation | 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 and equipment, net 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 | 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 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Accrued Liabilites, Current [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consisted of the following: December 30, January 1, (In millions) Salaries and fringe benefits $ 105.2 $ 87.5 Other accrued expenses 150.3 157.8 Total accrued expenses $ 255.5 $ 245.3 |
RESTRUCTURING AND OTHER CHARG29
RESTRUCTURING AND OTHER CHARGES (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of Liabilities Associated with Restructuring and Employee Severance | The following table summarizes activity related to liabilities associated with our restructuring activities: Restructuring Activity Q2 2016 Plan Q4 2015 Plan Q2 2015 Plan Q4 2012 Plan Total Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) Employee-Related Costs (a) Facility Exit and Other Costs (b) 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 Charges 4.3 1.5 (0.4 ) — — — 3.9 1.5 Payments and other (2.4 ) (0.3 ) (1.3 ) (0.2 ) (0.7 ) (0.2 ) (4.4 ) (0.7 ) Balance at December 30, 2016 $ 1.9 $ 1.2 $ 1.3 $ — $ 0.3 $ 0.2 $ 3.5 $ 1.4 (a) Employee-related costs primarily consist of severance benefits provided to employees who have been involuntarily terminated. (b) Facility exit and other costs primarily consist of lease termination costs. |
DEBT (Tables)
DEBT (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
Debt | Debt is summarized below: (In millions) December 30, January 1, Long-term debt: 5.50% Senior notes due 2023 $ 346.3 $ 345.8 5.125% Senior notes due 2021 395.7 394.9 5.625% Senior notes due 2019 347.7 346.8 Canadian term loan 95.4 172.9 Revolving lines of credit 197.1 390.1 Other 3.5 2.6 Unamortized deferred financing costs (6.9 ) (10.2 ) Total long-term debt $ 1,378.8 $ 1,642.9 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
Minimum Lease Commitments Under Operating Leases | Minimum lease commitments under operating leases at December 30, 2016 are as follows: (In millions) 2017 $ 64.5 2018 57.8 2019 43.3 2020 33.9 2021 27.1 2022 and thereafter 43.1 Total $ 269.7 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Schedule of Components of Income Tax Expense (Benefit) | Income tax expense was comprised of: (In millions) Years Ended December 30, January 1, January 2, Current: Foreign $ 18.5 $ 14.1 $ 22.6 State 7.0 7.2 4.7 Federal 50.2 58.8 33.2 75.7 80.1 60.5 Deferred: Foreign (2.8 ) 7.1 (1.0 ) State 0.2 (0.7 ) 3.3 Federal 3.3 (0.5 ) 23.4 0.7 5.9 25.7 Income tax expense $ 76.4 $ 86.0 $ 86.2 |
Schedule of Effective Income Tax Rate Reconciliation | Reconciliations of income tax expense to the statutory corporate federal tax rate of 35% were as follows: (In millions) Years Ended December 30, January 1, January 2, Statutory tax expense $ 69.1 $ 64.0 $ 87.4 Increase (reduction) in taxes resulting from: State income taxes, net 4.5 4.7 5.4 Foreign tax effects 1.8 6.3 1.2 Change in valuation allowance 1.6 9.3 (9.2 ) Other, net (0.6 ) 1.7 1.4 Income tax expense $ 76.4 $ 86.0 $ 86.2 |
Schedule of Deferred Tax Assets and Liabilities | Deferred Income Taxes : Significant components of our deferred tax assets (liabilities) included in "Other assets" and "Other liabilities" on the Consolidated Balance Sheets were as follows: (In millions) December 30, January 1, Deferred compensation and other postretirement benefits 46.9 36.0 Foreign NOL carryforwards and other 27.7 24.8 Accrued expenses and other 15.2 10.4 Inventory reserves 13.4 7.7 Unrealized foreign exchange — 5.8 Allowance for doubtful accounts 11.1 10.2 Gross deferred tax assets 114.3 94.9 Property, equipment, intangibles and other (107.1 ) (83.7 ) Gross deferred tax liabilities (107.1 ) (83.7 ) Deferred tax assets, net of deferred tax liabilities 7.2 11.2 Valuation allowance (20.7 ) (24.0 ) Net deferred tax liabilities $ (13.5 ) $ (12.8 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2014, 2015 and 2016 is as follows: (In millions) 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 Additions for tax positions of prior years 0.4 Reductions for tax positions of prior years (0.7 ) Balance at December 30, 2016 $ 5.0 |
PENSION PLANS (Tables)
PENSION PLANS (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
Weighted Average Percentage Of Actual And Target Asset Allocation Table | The Domestic Plans’ and Foreign Plans’ asset mixes as of December 30, 2016 and January 1, 2016 and our asset allocation guidelines for such plans are summarized as follows. Domestic Plans December 30, January 1, 2016 Allocation Guidelines Min Target Max Large capitalization U.S. stocks 22.7 % 23.0 % 17 % 22 % 27 % Small to mid capitalization U.S. stocks 29.1 27.1 20 30 40 Emerging market equity 10.0 7.6 5 10 15 Total equity securities 61.8 57.7 62 Fixed income investments 35.0 37.9 31 38 45 Cash equivalents 3.2 4.4 — — 10 100.0 % 100.0 % 100 % Foreign Plans December 30, Allocation Guidelines Target Equity securities 61 % 60 % Fixed income investments 29 30 Other investments 10 10 100 % 100 % Foreign Plans January 1, Allocation Guidelines Target Equity securities 43 % 44 % Fixed income investments 22 22 Other investments 35 34 100 % 100 % |
Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) | 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) December 30, January 1, Changes to Balance: Beginning balance $ 112.5 $ 106.8 Recognized prior service cost 4.0 9.1 Recognized transition obligation (0.9 ) — Recognized net actuarial gain (14.8 ) (8.3 ) Prior service credit arising in current year (2.2 ) (29.8 ) Net actuarial loss arising in current year 20.6 34.7 Ending balance $ 119.2 $ 112.5 |
Accumulated Other Comprehensive Income (Loss) for Benefit Plans | Components of Balance: Prior service credit $ (21.1 ) $ (25.0 ) Net actuarial loss 140.3 137.5 $ 119.2 $ 112.5 |
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 2017 are as follows: (In millions) Amortization of prior service credit $ (4.0 ) Amortization of actuarial loss 9.2 Total amortization expected $ 5.2 |
Reconciliation of Net Funded Status of Pension Plans | The following represents a reconciliation of the funded status of our pension plans from the beginning of fiscal 2015 to the end of fiscal 2016: Pension Benefits Domestic Plans Foreign Plans Total (In millions) 2016 2015 2016 2015 2016 2015 Change in projected benefit obligation: Beginning balance $ 250.1 $ 277.4 $ 266.0 $ 278.6 $ 516.1 $ 556.0 Service cost 3.2 3.9 5.8 6.6 9.0 10.5 Interest cost 11.5 11.6 7.8 9.1 19.3 20.7 Actuarial (gain) loss 13.0 (24.3 ) 43.0 4.0 56.0 (20.3 ) Lump sum settlement — (10.2 ) — — — (10.2 ) Benefits paid from plan assets (7.6 ) (7.3 ) (16.1 ) (7.5 ) (23.7 ) (14.8 ) Benefits paid from Company assets (0.9 ) (0.8 ) — — (0.9 ) (0.8 ) Plan participants contributions — — 0.2 0.2 0.2 0.2 Foreign currency exchange rate changes — — (26.5 ) (24.3 ) (26.5 ) (24.3 ) Impact due to curtailment — (0.5 ) — (0.7 ) — (1.2 ) Impact due to annuity purchase (10.5 ) — (57.2 ) — (67.7 ) — Special termination benefits — 0.3 — — — 0.3 Ending balance $ 258.8 $ 250.1 $ 223.0 $ 266.0 $ 481.8 $ 516.1 Change in plan assets at fair value: Beginning balance $ 218.1 $ 229.5 $ 228.1 $ 232.2 $ 446.2 $ 461.7 Actual return on plan assets 18.8 (13.0 ) 32.1 4.6 50.9 (8.4 ) Company contributions to plan assets 19.5 19.1 9.5 18.6 29.0 37.7 Benefits paid from plan assets (7.6 ) (17.5 ) (16.1 ) (7.5 ) (23.7 ) (25.0 ) Plan participants contributions — — 0.2 0.2 0.2 0.2 Purchase of annuity (10.5 ) — (57.2 ) — (67.7 ) — Foreign currency exchange rate changes — — (22.2 ) (20.0 ) (22.2 ) (20.0 ) Ending balance $ 238.3 $ 218.1 $ 174.4 $ 228.1 $ 412.7 $ 446.2 Reconciliation of funded status: Projected benefit obligation $ (258.8 ) $ (250.1 ) $ (223.0 ) $ (266.0 ) $ (481.8 ) $ (516.1 ) Plan assets at fair value 238.3 218.1 174.4 228.1 412.7 446.2 Funded status $ (20.5 ) $ (32.0 ) $ (48.6 ) $ (37.9 ) $ (69.1 ) $ (69.9 ) Included in the 2016 and 2015 funded status is accrued benefit cost of approximately $16.8 million and $16.2 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations. Noncurrent asset $ — $ — $ 0.3 $ 0.3 $ 0.3 $ 0.3 Current liability (0.9 ) (0.9 ) — — (0.9 ) (0.9 ) Noncurrent liability (19.6 ) (31.1 ) (48.9 ) (38.2 ) (68.5 ) (69.3 ) Funded status $ (20.5 ) $ (32.0 ) $ (48.6 ) $ (37.9 ) $ (69.1 ) $ (69.9 ) Weighted-average assumptions used for measurement of the projected benefit obligation: Discount rate 4.36 % 4.65 % 2.99 % 3.35 % 3.73 % 3.98 % Salary growth rate 4.63 % 4.60 % 3.01 % 3.08 % 3.73 % 3.75 % |
Components of Net Periodic Benefit Costs | 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 December 30, 2016, January 1, 2016 and January 2, 2015: Pension Benefits Domestic Plans Foreign Plans Total (In millions) 2016 2015 2014 2016 2015 2014 2016 2015 2014 Components of net periodic cost: Service cost $ 4.7 $ 5.2 $ 4.8 $ 5.9 $ 6.6 $ 5.9 $ 10.6 $ 11.8 $ 10.7 Interest cost 11.5 11.6 10.8 7.8 9.1 10.6 19.3 20.7 21.4 Expected return on plan assets (14.2 ) (15.1 ) (13.9 ) (9.4 ) (10.5 ) (12.5 ) (23.6 ) (25.6 ) (26.4 ) Net amortization 2.4 1.3 (2.2 ) 2.5 2.9 1.1 4.9 4.2 (1.1 ) Settlement charge — — — 9.6 — — 9.6 — — Net periodic cost (benefit) $ 4.4 $ 3.0 $ (0.5 ) $ 16.4 $ 8.1 $ 5.1 $ 20.8 $ 11.1 $ 4.6 |
Weighted-Average Assumptions Used to Measure Net Periodic Benefit Cost | Weighted-average assumption used to measure net periodic cost: Discount rate 4.65 % 4.14 % 4.81 % 3.35 % 3.44 % 4.49 % 3.98 % 3.79 % 4.64 % Expected return on plan assets 6.50 % 6.50 % 6.50 % 4.54 % 4.77 % 5.67 % 5.50 % 5.63 % 6.08 % Salary growth rate 4.60 % 4.60 % 4.63 % 3.08 % 3.12 % 3.27 % 3.75 % 3.79 % 4.04 % |
Assets Measured at Fair Value on a Recurring Basis | Disclosures concerning assets measured at fair value on a recurring basis at December 30, 2016 and January 1, 2016, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by us are as follows: As of December 30, 2016 Domestic Plans Foreign Plans 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 $ 7.5 $ — $ — $ 7.5 $ 0.6 $ — $ — $ 0.6 $ 8.1 $ — $ — $ 8.1 Equity securities: Domestic 123.5 — — 123.5 — 43.2 — 43.2 123.5 43.2 — 166.7 International (a) 23.7 — — 23.7 — 63.5 — 63.5 23.7 63.5 — 87.2 Fixed income securities: Domestic — 5.1 — 5.1 — 41.3 — 41.3 — 46.4 — 46.4 Corporate bonds — 78.5 — 78.5 — 9.6 — 9.6 — 88.1 — 88.1 Insurance funds — — — — — 16.0 — 16.0 — 16.0 — 16.0 Other — — — — — 0.2 — 0.2 — 0.2 — 0.2 Total at December 30, 2016 $ 154.7 $ 83.6 $ — $ 238.3 $ 0.6 $ 173.8 $ — $ 174.4 $ 155.3 $ 257.4 $ — $ 412.7 (a) Investment in funds outside the country where the pension plan originates is considered International. As of January 1, 2016 Domestic Plans Foreign Plans 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. |
Change in Level 3 Assets Measured at Fair Value on a Recurring Basis | Changes in our Level 3 plan assets, which are included in operations, for the years ended December 30, 2016 and January 1, 2016 included: (In millions) January 1, 2016 Balance Net purchases, Issuances and Settlements December 30, 2016 Balance Asset Categories: Insurance funds $ 58.9 $ (58.9 ) $ — Total Level 3 investments $ 58.9 $ (58.9 ) $ — (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 Benefit Payments | We estimated future benefits payments are as follows at the end of 2016: Estimated Future Benefit Payments (In millions) Domestic Foreign Total 2017 $ 9.0 $ 4.0 $ 13.0 2018 9.8 4.3 14.1 2019 10.8 4.4 15.2 2020 11.6 4.5 16.1 2021 12.3 4.8 17.1 2022-2026 72.4 31.2 103.6 Total $ 125.9 $ 53.2 $ 179.1 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Text Block [Abstract] | |
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 Fair Value (b) Employee Stock Units (c) Weighted Average Grant Date Fair Value (b) 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 Granted 33.3 56.34 491.5 39.93 Converted — — (125.2 ) 80.58 Canceled — — (75.0 ) 55.89 Outstanding balance at December 30, 2016 341.1 $ 52.90 727.4 $ 56.25 (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. |
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 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 Exercised (44.8 ) 52.55 Balance at December 30, 2016 488.2 $ 48.68 Options exercisable at year-end: 2014 405.6 $ 44.65 2015 472.5 $ 47.15 2016 468.4 $ 48.00 |
Changes to the Unvested Shares | The following table summarizes the changes to the unvested shares: (shares in thousands) Non-vested Option Weighted-average Non-vested Performance Shares (a) Weighted-average Grant Date Fair Value Balance at January 1, 2016 60.5 $ 26.18 — — Granted — — 85.8 $ 21.53 Vested (40.7 ) $ 25.80 — — Canceled — — (3.0 ) $ 21.53 Balance at December 30, 2016 19.8 $ 26.95 82.8 $ 21.53 |
BUSINESS SEGMENTS (Tables)
BUSINESS SEGMENTS (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Segment Information | Segment information for 2016, 2015 and 2014 are as follows: 2016 NSS EES UPS Corporate (a) Total Net Sales $ 4,083.8 $ 2,103.2 $ 1,435.8 $ — $ 7,622.8 Operating income 275.8 97.5 56.7 (144.7 ) 285.3 Depreciation 3.2 2.7 4.2 17.8 27.9 Amortization of intangible assets 14.1 8.5 15.0 — 37.6 Total assets 1,974.0 983.6 821.9 313.9 4,093.4 Capital expenditures 3.4 2.9 2.5 23.8 32.6 2015 (As revised) NSS EES (b) UPS (b) Corporate (a) Total Net Sales $ 3,968.2 $ 1,816.5 $ 405.8 $ — $ 6,190.5 Operating income 258.2 121.1 22.4 (133.9 ) 267.8 Depreciation 3.6 1.4 1.2 16.0 22.2 Amortization of intangible assets 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 (As revised) NSS (c) EES UPS Corporate (a) Total Net Sales $ 3,526.0 $ 1,911.1 $ 69.9 $ — $ 5,507.0 Operating income 261.1 162.5 10.9 (124.4 ) 310.1 Depreciation 3.0 1.2 — 15.8 20.0 Amortization of intangible assets 4.9 5.7 — — 10.6 Total assets 1,863.7 972.4 — 337.8 3,173.9 Capital expenditures 2.6 1.3 — 30.3 34.2 |
Schedule Of Segment Operating Income Results Table | Year Ended December 30, 2016 (In millions) NSS EES UPS Corporate Total Amortization of intangible assets $ (14.1 ) $ (8.5 ) $ (15.0 ) $ — $ (37.6 ) UK pension settlement — — — (9.6 ) (9.6 ) Restructuring charge (1.7 ) (1.3 ) (2.1 ) (0.3 ) (5.4 ) Acquisition and integration costs — — (0.3 ) (4.8 ) (5.1 ) Latin America bad debt provision (3.9 ) (3.7 ) — — (7.6 ) Total of items impacting operating income $ (19.7 ) $ (13.5 ) $ (17.4 ) $ (14.7 ) $ (65.3 ) Year Ended January 1, 2016 (In millions) NSS EES UPS Corporate Total Amortization of intangible assets $ (14.7 ) $ (6.3 ) $ (3.9 ) $ — $ (24.9 ) UK pension settlement — — — (0.4 ) (0.4 ) Restructuring charge (2.4 ) (3.2 ) (0.1 ) (2.5 ) (8.2 ) Acquisition and integration costs — — (0.2 ) (13.0 ) (13.2 ) Write-off of capitalized software — — — (3.1 ) (3.1 ) Latin America bad debt provision (10.7 ) (1.0 ) — — (11.7 ) Dilapidation provision — — — (1.7 ) (1.7 ) Total of items impacting operating income $ (27.8 ) $ (10.5 ) $ (4.2 ) $ (20.7 ) $ (63.2 ) Year Ended January 2, 2015 (In millions) NSS EES UPS Corporate Total Amortization of intangible assets $ (4.9 ) $ (5.7 ) $ — $ — $ (10.6 ) Acquisition and integration costs (7.0 ) (0.2 ) — — (7.2 ) Total of items impacting operating income $ (11.9 ) $ (5.9 ) $ — $ — $ (17.8 ) |
Revenue from External Customers by Geographic Areas | Years Ended (In millions) December 30, 2016 January 1, 2016 January 2, 2015 Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales Net Sales % of Total Net Sales North America $ 6,384.6 83.8 % $ 4,829.2 78.0 % $ 4,039.2 73.3 % EMEA 570.1 7.4 % 601.9 9.7 % 648.5 11.8 % Emerging Markets 668.1 8.8 % 759.4 12.3 % 819.3 14.9 % Net sales $ 7,622.8 100.0 % $ 6,190.5 100.0 % $ 5,507.0 100.0 % |
Long-lived Assets by Geographic Areas | (In millions) December 30, 2016 January 1, 2016 Total assets North America $ 3,376.8 $ 3,371.2 EMEA 224.9 252.9 Emerging Markets 491.7 514.1 Total assets $ 4,093.4 $ 4,138.2 (In millions) December 30, 2016 January 1, 2016 Net property and equipment North America $ 126.0 $ 115.7 EMEA 8.1 9.9 Emerging Markets 6.2 6.2 Net property and equipment $ 140.3 $ 131.8 |
Changes in Goodwill | The following table presents the changes in goodwill allocated to our reporting units from January 2, 2015 to December 30, 2016 : (In millions) NSS EES UPS Total Balance as of January 2, 2015 $ 403.4 $ 178.9 $ — $ 582.3 Acquisition related (a) (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 Acquisition related (b) (0.5 ) 0.7 4.3 4.5 Reassignment of goodwill 11.2 (31.8 ) 20.6 — Foreign currency translation 1.0 0.2 2.4 3.6 Balance as of December 30, 2016 $ 405.0 $ 181.0 $ 178.6 $ 764.6 (a) 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 $829.4 million (net of cash and outstanding checks of $11.7 million ). (b) In the first, second and third quarters of 2016, we recorded an immaterial increase in goodwill primarily related to determining the fair value of inventory and fixed assets |
SUMMARIZED FINANCIAL INFORMAT36
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. (Tables) | 12 Months Ended |
Dec. 30, 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) December 30, January 1, Assets: Current assets $ 2,688.3 $ 2,727.2 Property, equipment and capital leases, net 148.4 141.1 Goodwill 764.6 756.5 Intangible assets, net 415.4 453.8 Other assets 84.8 72.1 $ 4,101.5 $ 4,150.7 Liabilities and Stockholders' Equity: Current liabilities $ 1,264.9 $ 1,156.8 Subordinated notes payable to parent 0.7 — Long-term debt 1,390.1 1,655.6 Other liabilities 156.8 161.1 Stockholder’s equity 1,289.0 1,177.2 $ 4,101.5 $ 4,150.7 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | ANIXTER INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME Twelve Months Ended (In millions) December 30, January 1, January 2, Net sales $ 7,622.8 $ 6,190.5 $ 5,507.0 Operating income $ 291.6 $ 273.8 $ 316.0 Income from continuing operations before income taxes $ 202.6 $ 187.9 $ 254.3 Net (loss) income from discontinued operations $ (0.6 ) $ 30.7 $ 31.4 Net income $ 123.8 $ 130.7 $ 197.7 Comprehensive income $ 103.4 $ 38.2 $ 86.3 |
SELECTED QUARTERLY FINANCIAL 37
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | (In millions, except per share amounts) Year ended December 30, 2016 First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) Net sales $ 1,816.2 $ 1,955.7 $ 1,956.3 $ 1,894.6 Cost of goods sold 1,445.4 1,562.3 1,559.6 1,507.5 Operating income 60.3 56.7 87.3 81.0 Income from continuing operations before income taxes 37.4 36.1 65.4 58.6 Net income from continuing operations 23.2 20.8 40.3 36.8 Net (loss) income from discontinued operations (0.4 ) (0.3 ) 0.1 — Net income $ 22.8 $ 20.5 $ 40.4 $ 36.8 Income per share: Basic: Continuing operations $ 0.70 $ 0.62 $ 1.21 $ 1.10 Discontinued operations $ (0.01 ) $ (0.01 ) $ — $ — Net income $ 0.69 $ 0.61 $ 1.21 $ 1.10 Diluted: Continuing operations $ 0.70 $ 0.62 $ 1.20 $ 1.09 Discontinued operations $ (0.02 ) $ (0.01 ) $ 0.01 $ — Net income $ 0.68 $ 0.61 $ 1.21 $ 1.09 Common stock price (NYSE symbol: AXE): High $ 60.10 $ 63.49 $ 65.96 $ 84.05 Low $ 37.60 $ 49.29 $ 51.50 $ 58.99 Close $ 52.48 $ 54.09 $ 64.50 $ 81.05 (a) In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. (b) In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. (c) In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million . (d) In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million of acquisition and integration costs. (In millions, except per share amounts) Year ended January 1, 2016 First Quarter (a) Second Quarter (b) Third Quarter (c) Fourth Quarter (d) 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 intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million . (b) In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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 $5.0 million of intangible asset amortization expense and $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 $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt" . |
VALUATION AND QUALIFYING ACCOUN
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Tables) | 12 Months Ended |
Dec. 30, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | ANIXTER INTERNATIONAL INC. SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES Years ended December 30, 2016 , January 1, 2016 and January 2, 2015 (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 December 30, 2016: Allowance for doubtful accounts $ 37.5 $ 20.1 $ (3.8 ) $ (10.2 ) $ 43.6 Allowance for deferred tax asset $ 24.0 $ 1.6 $ (4.9 ) $ — $ 20.7 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 |
SUMMARY OF SIGNIFICANT ACCOUN39
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 ($) | Dec. 30, 2016USD ($)shares | Jan. 01, 2016USD ($)shares | Jan. 02, 2015USD ($)shares | |||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Fiscal Year Term | 52 weeks | 52 weeks | 52 weeks | |||||
Cash and cash equivalent maturity period maximum | 3 months | |||||||
Allowance for doubtful accounts | $ 37.5 | $ 43.6 | $ 37.5 | |||||
Provision for doubtful accounts | 20.1 | 25.8 | $ 11.4 | |||||
Inventories | 1,182.6 | 1,178.3 | 1,182.6 | |||||
Inventory valuation reserves | 42.4 | 48.3 | 42.4 | |||||
Property and equipment | 131.8 | 140.3 | 131.8 | |||||
Depreciation | 27.9 | 23.8 | 24 | |||||
Capitalized costs for computer software, net | $ 49.5 | 57.7 | 49.5 | |||||
Capitalized costs for computer software, amortization | 3.7 | 2.8 | 2.5 | |||||
Interest costs capitalized | 0.7 | 1.2 | 0.8 | |||||
Average amortization of intangible assets | $ 31.8 | |||||||
Years of average amortization of intangible assets | 5 years | |||||||
Percent devaluation of Argentine Peso against the US dollar | 0.40 | |||||||
Foreign exchange devaluations | $ (2.9) | $ (0.7) | $ (8) | $ 0 | (3.6) | (8) | ||
Foreign exchange | $ (10.8) | (14.9) | (8.2) | |||||
Rate of foreign currency denominated accounts not hedged | 100.00% | |||||||
Reserve for returns and credits provided to customers | $ 34.9 | 29.1 | ||||||
Advertising and promotion costs | 12.4 | 13.2 | 12.6 | |||||
Shipping and handling costs | $ 113.9 | $ 102.7 | $ 99.5 | |||||
Percentage threshold for tax benefit recognized | 50.00% | |||||||
Stock options and units | shares | 0.2 | 0.2 | 0.3 | |||||
Network and Security Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Depreciation | $ 3.2 | $ 3.6 | $ 3 | [1] | ||||
Electrical and Electronic Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Depreciation | 2.7 | 1.4 | [2] | 1.2 | ||||
Utility Power Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Depreciation | $ 4.2 | $ 1.2 | [2] | $ 0 | ||||
Venezuela bolivar [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Foreign currency exchange rate | 200 | 49 | 673 | 200 | 52 | |||
Argentina Peso [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Foreign currency exchange rate | 8 | |||||||
Gross [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Notional amount of foreign currency forward contracts | $ 196.1 | $ 114.8 | $ 196.1 | |||||
Net [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Notional amount of foreign currency forward contracts | 132.8 | 90.9 | 132.8 | |||||
Equipment And Computer Software [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property and equipment | 90.4 | 101.9 | 90.4 | |||||
Building and Building Improvements [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property and equipment | 40.6 | 36 | 40.6 | |||||
Land [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property and equipment | $ 0.8 | 2.4 | 0.8 | |||||
Continuing Operations [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Depreciation | $ 27.9 | $ 22.2 | $ 20 | |||||
Minimum [Member] | Network and Security Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Minimum margin of fair value in excess of carrying value | 10.00% | |||||||
Minimum [Member] | Electrical and Electronic Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Minimum margin of fair value in excess of carrying value | 3.00% | |||||||
Minimum [Member] | Utility Power Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Minimum margin of fair value in excess of carrying value | 10.00% | |||||||
Minimum [Member] | Argentina Peso [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Foreign currency exchange rate | 6.5 | |||||||
Minimum [Member] | Equipment And Computer Software [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 3 years | |||||||
Minimum [Member] | Building and Building Improvements [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 7 years | |||||||
Maximum [Member] | Equipment And Computer Software [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 20 years | |||||||
Maximum [Member] | Building and Building Improvements [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Property, Plant and Equipment, Useful Life | 40 years | |||||||
Power Solutions [Member] | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Average amortization of intangible assets | $ 16.2 | |||||||
Tri-Ed | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Average amortization of intangible assets | $ 11.9 | |||||||
[1] | 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". | |||||||
[2] | 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". |
SUMMARY OF SIGNIFICANT ACCOUN40
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Indefinite and Finite-Lived Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 510 | $ 511.8 |
Accumulated amortization | (94.6) | (58) |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | 458.5 | 461.4 |
Accumulated amortization | (80.1) | (48.4) |
Exclusive Supplier Agreement [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | 22.1 | 22 |
Accumulated amortization | (2.4) | (1.6) |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount, finite trade names | 12.6 | 13.3 |
Accumulated amortization | (7.5) | (5.8) |
Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | 6.2 | 4.5 |
Accumulated amortization | (4.6) | (2.2) |
Indefinite-Lived Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Gross carrying amount | $ 10.6 | $ 10.6 |
Minimum [Member] | Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 6 years | |
Minimum [Member] | Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum [Member] | Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 1 year | |
Maximum [Member] | Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Maximum [Member] | Exclusive Supplier Agreement [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 21 years | |
Maximum [Member] | Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 10 years | |
Maximum [Member] | Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 5 years |
SUMMARY OF SIGNIFICANT ACCOUN41
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 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Other, net: | ||||||
Foreign exchange | $ (10.8) | $ (14.9) | $ (8.2) | |||
Foreign exchange devaluations | $ (2.9) | $ (0.7) | $ (8) | 0 | (3.6) | (8) |
Cash surrender value of life insurance policies | 1.2 | (0.8) | 0.8 | |||
Other | 0.5 | (1.8) | (0.6) | |||
Total other, net | $ (9.1) | $ (21.1) | $ (16) |
DISCONTINUED OPERATIONS - Addit
DISCONTINUED OPERATIONS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | 23 Months Ended | |||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Dec. 30, 2016 | Feb. 11, 2015 | |
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 | $ 0 | $ 371.8 | $ 0 | ||
Transaction related costs | 16.4 | ||||
Gain on sale of business | 0 | 40 | 0 | $ 40.3 | |
Gain on sale of business, net of tax | $ 23.3 | ||||
Discontinued operations allocated interest costs | $ 0 | 1.1 | $ 3.6 | ||
Pension curtailment gain | 5.1 | ||||
Special termination benefit costs | $ 0.3 |
DISCONTINUED OPERATIONS - Resul
DISCONTINUED OPERATIONS - Results from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 30, 2016 | [1] | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | [4] | Jan. 01, 2016 | [5] | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | [8] | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Net sales | $ 1,894.6 | $ 1,956.3 | $ 1,955.7 | $ 1,816.2 | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 7,622.8 | $ 6,190.5 | $ 5,507 | ||||||||
Operating (loss) income | 81 | 87.3 | 56.7 | 60.3 | 65.8 | 78.2 | 64.5 | 59.3 | 285.3 | 267.8 | 310.1 | ||||||||
(Loss) income from discontinued operations before income taxes | (0.1) | 11.9 | 45.2 | ||||||||||||||||
(Loss) gain on sale of business | (0.7) | 41 | 0 | ||||||||||||||||
Income tax (benefit) expense from discontinued operations | (0.2) | 22.2 | 13.8 | ||||||||||||||||
Net (loss) income from discontinued operations | $ 0 | $ 0.1 | $ (0.3) | $ (0.4) | $ (0.9) | $ (2.9) | $ 41.9 | $ (7.4) | (0.6) | 30.7 | 31.4 | ||||||||
Fastener Business [Member] | |||||||||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||
Net sales | 1.7 | 405.9 | 938.5 | ||||||||||||||||
Operating (loss) income | (0.2) | 14.2 | 50.8 | ||||||||||||||||
Net (loss) income from discontinued operations | $ (0.6) | $ 30.7 | $ 31.4 | ||||||||||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | ||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | ||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | ||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | ||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | ||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. |
DISCONTINUED OPERATIONS - Asset
DISCONTINUED OPERATIONS - Assets and Liabilities from Discontinued Operations (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | $ 1,353.2 | $ 1,326.4 |
Inventories | 1,178.3 | 1,182.6 |
Other current assets | 41.9 | 67.5 |
Total assets | 4,093.6 | 4,142 |
Accounts payable | 1,006 | 905.6 |
Accrued expenses | 257.9 | 250.6 |
Other liabilities | 158.7 | 163.5 |
Total liabilities | 2,801.4 | 2,962.6 |
Fastener Business [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable | 0.1 | 2.6 |
Inventories | 0 | 1.2 |
Other current assets | 0.1 | 0 |
Total assets | 0.2 | 3.8 |
Accounts payable | 0.2 | 1.3 |
Accrued expenses | 2.2 | 4 |
Other liabilities | 0 | 1.7 |
Total liabilities | $ 2.4 | $ 7 |
BUSINESS COMBINATION - Additio
BUSINESS COMBINATION - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Business Acquisition [Line Items] | |||
Total purchase price, net of cash acquired and working capital adjustment | $ 4.7 | $ 822.5 | $ 418.4 |
Power Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Total purchase price, net of cash acquired and working capital adjustment | 829.4 | ||
Cash acquired from acquisition | 11.7 | ||
Goodwill expected to be tax deductible | 81 | ||
Power Solutions [Member] | Electrical and Electronic Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 35.4 | ||
Power Solutions [Member] | Utility Power Solutions [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 159.4 | ||
Tri-Ed | |||
Business Acquisition [Line Items] | |||
Total purchase price, net of cash acquired and working capital adjustment | 418.4 | ||
Cash acquired from acquisition | 11.6 | ||
Net assets adjustment | 2.2 | ||
Goodwill expected to be tax deductible | $ 12.2 | ||
Percentage of voting interests acquired | 100.00% | ||
Term loan [Member] | |||
Business Acquisition [Line Items] | |||
Repayments of debt | $ 200 | ||
Senior notes due 2021 [Member] | |||
Business Acquisition [Line Items] | |||
Face amount of debt instrument | $ 400 |
BUSINESS COMBINATION - Purchase
BUSINESS COMBINATION - Purchase Price Allocation - Power Solutions (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 01, 2016 | Dec. 30, 2016 | Oct. 05, 2015 | Jan. 02, 2015 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 756.5 | $ 764.6 | $ 582.3 | |
Power Solutions [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 11.7 | |||
Current assets, net | 560.1 | |||
Property and equipment, net | 30.6 | |||
Goodwill | 194.8 | |||
Intangible assets | 280.9 | |||
Non-current assets | 5.6 | |||
Current liabilities | (234.1) | |||
Non-current liabilities | $ (8.5) | |||
Total purchase price | $ 841.1 |
BUSINESS COMBINATION - Intangib
BUSINESS COMBINATION - Intangible Assets Acquired - Power Solutions (Details) - Power Solutions [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2016 | Oct. 05, 2015 | |
Business Acquisition [Line Items] | ||
Intangible assets | $ 280.9 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 278.5 | |
Non-compete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 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 - Purcha48
BUSINESS COMBINATION - Purchase Price Allocation - Tri-Ed (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jan. 02, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Sep. 17, 2014 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 582.3 | $ 764.6 | $ 756.5 | |
Tri-Ed | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 11.6 | |||
Current assets, net | 203.9 | |||
Property and equipment, net | 2.7 | |||
Goodwill | 242.2 | |||
Intangible assets | 166.8 | |||
Current liabilities | (143.3) | |||
Non-current liabilities | $ (56.1) | |||
Total purchase price | $ 427.8 |
BUSINESS COMBINATION - Intang49
BUSINESS COMBINATION - Intangible Assets Acquired - Tri-Ed (Details) - Tri-Ed - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2016 | Sep. 17, 2014 | |
Business Acquisition [Line Items] | ||
Intangible assets | $ 166.8 | |
Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 120.6 | |
Exclusive Supplier Agreement [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 23.2 | |
Tri-Ed trade name [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 9.2 | |
Non-compete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | 3.2 | |
Trade Names [Member] | ||
Business Acquisition [Line Items] | ||
Intangible assets | $ 10.6 | |
Minimum [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Average useful life (in years) | 11 years | |
Minimum [Member] | Non-compete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Average useful life (in years) | 4 years | |
Maximum [Member] | Customer Relationships [Member] | ||
Business Acquisition [Line Items] | ||
Average useful life (in years) | 18 years | |
Maximum [Member] | Exclusive Supplier Agreement [Member] | ||
Business Acquisition [Line Items] | ||
Average useful life (in years) | 21 years | |
Maximum [Member] | Tri-Ed trade name [Member] | ||
Business Acquisition [Line Items] | ||
Average useful life (in years) | 4 years | |
Maximum [Member] | Non-compete Agreements [Member] | ||
Business Acquisition [Line Items] | ||
Average useful life (in years) | 5 years |
BUSINESS COMBINATION - Pro Form
BUSINESS COMBINATION - Pro Forma (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jan. 01, 2016 | Jan. 02, 2015 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||
Net sales | $ 7,733.4 | $ 7,831 |
Net income from continuing operations | $ 107.1 | $ 180.5 |
Income (loss) per share: | ||
Basic | $ 3.22 | $ 5.46 |
Diluted | $ 3.20 | $ 5.41 |
ACCRUED EXPENSES - Accrued Expe
ACCRUED EXPENSES - Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 |
Accrued Expenses [Line Items] | ||
Accrued expenses | $ 257.9 | $ 250.6 |
Continuing Operations [Member] | ||
Accrued Expenses [Line Items] | ||
Salaries and fringe benefits | 105.2 | 87.5 |
Other accrued expenses | 150.3 | 157.8 |
Accrued expenses | $ 255.5 | $ 245.3 |
RESTRUCTURING AND OTHER CHARG52
RESTRUCTURING AND OTHER CHARGES - Summary of Liabilities Associated with Restructuring and Employee Severance (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | ||
Employee Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [1] | $ 4 | $ 0 |
Restructuring charges | [1] | 3.9 | 8 |
Payments and other | [1] | (4.4) | (4) |
Restructuring Reserve, Ending balance | [1] | 3.5 | 4 |
Facility Exit and Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [2] | 0.6 | 0.8 |
Restructuring charges | [2] | 1.5 | 0.2 |
Payments and other | [2] | (0.7) | (0.4) |
Restructuring Reserve, Ending balance | [2] | 1.4 | 0.6 |
Q2 2016 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Ending balance | 3.1 | ||
Q2 2016 Restructuring Plan [Member] | Employee Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [1] | 0 | 0 |
Restructuring charges | [1] | 4.3 | 0 |
Payments and other | [1] | (2.4) | 0 |
Restructuring Reserve, Ending balance | [1] | 1.9 | 0 |
Q2 2016 Restructuring Plan [Member] | Facility Exit and Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [2] | 0 | 0 |
Restructuring charges | [2] | 1.5 | 0 |
Payments and other | [2] | (0.3) | 0 |
Restructuring Reserve, Ending balance | [2] | 1.2 | 0 |
Q4 2015 Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Ending balance | 1.3 | ||
Q4 2015 Restructuring Plan [Member] | Employee Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [1] | 3 | 0 |
Restructuring charges | [1] | 3.2 | |
Restructuring charge adjustment | [1] | (0.4) | |
Payments and other | [1] | (1.3) | (0.2) |
Restructuring Reserve, Ending balance | [1] | 1.3 | 3 |
Q4 2015 Restructuring Plan [Member] | Facility Exit and Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [2] | 0.2 | 0 |
Restructuring charges | [2] | 0 | 0.2 |
Payments and other | [2] | (0.2) | 0 |
Restructuring Reserve, Ending balance | [2] | 0 | 0.2 |
Q2 2015 Restructuring Plan [Member] | Employee Related Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [1] | 1 | 0 |
Restructuring charges | [1] | 0 | 4.8 |
Payments and other | [1] | (0.7) | (3.8) |
Restructuring Reserve, Ending balance | [1] | 0.3 | 1 |
Q4 2012 Restructuring Plan [Member] | Facility Exit and Other Costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve, Beginning balance | [2] | 0.4 | 0.8 |
Restructuring charges | [2] | 0 | 0 |
Payments and other | [2] | (0.2) | (0.4) |
Restructuring Reserve, Ending balance | [2] | $ 0.2 | $ 0.4 |
[1] | Employee-related costs primarily consist of severance benefits provided to employees who have been involuntarily terminated. | ||
[2] | Facility exit and other costs primarily consist of lease termination costs. |
RESTRUCTURING AND OTHER CHARG53
RESTRUCTURING AND OTHER CHARGES - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Jul. 01, 2016USD ($) | Jan. 01, 2016USD ($) | Jul. 03, 2015USD ($) | Dec. 28, 2012USD ($) | Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | ||
Employee Related Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | [1] | $ 3.9 | $ 8 | |||||
Restructuring Reserve | [1] | $ 4 | 3.5 | 4 | $ 0 | |||
Facility Exit and Other Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | [2] | 1.5 | 0.2 | |||||
Restructuring Reserve | [2] | 0.6 | 1.4 | 0.6 | 0.8 | |||
Q2 2016 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of Positions Eliminated | 150 | |||||||
Restructuring Reserve | 3.1 | |||||||
Q2 2016 Restructuring Plan [Member] | Operating Expense [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 5.8 | |||||||
Q2 2016 Restructuring Plan [Member] | Employee Related Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | [1] | 4.3 | 0 | |||||
Restructuring Reserve | [1] | 0 | 1.9 | 0 | 0 | |||
Q2 2016 Restructuring Plan [Member] | Facility Exit and Other Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | [2] | 1.5 | 0 | |||||
Restructuring Reserve | [2] | $ 0 | 1.2 | 0 | 0 | |||
Q2 2016 Restructuring Plan [Member] | Network and Security Solutions [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.1 | |||||||
Q2 2016 Restructuring Plan [Member] | Electrical and Electronic Solutions [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 1.4 | |||||||
Q2 2016 Restructuring Plan [Member] | Utility Power Solutions [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | 2.2 | |||||||
Q2 2016 Restructuring Plan [Member] | Corporate [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | $ 0.1 | |||||||
Q4 2015 Restructuring Plan [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Number of Positions Eliminated | 80 | |||||||
Restructuring Reserve | 1.3 | |||||||
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 | [1] | 3.2 | ||||||
Restructuring charge adjustment | [1] | (0.4) | ||||||
Restructuring Reserve | [1] | 3 | 1.3 | 3 | 0 | |||
Q4 2015 Restructuring Plan [Member] | Facility Exit and Other Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | [2] | 0 | 0.2 | |||||
Restructuring Reserve | [2] | 0.2 | 0 | 0.2 | 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] | ||||||||
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 | [1] | 0 | 4.8 | |||||
Restructuring Reserve | [1] | 1 | 0.3 | 1 | 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 [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] | Facility Exit and Other Costs [Member] | ||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||
Restructuring charges | [2] | 0 | 0 | |||||
Restructuring Reserve | [2] | $ 0.4 | $ 0.2 | $ 0.4 | $ 0.8 | |||
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 | |||||||
[1] | Employee-related costs primarily consist of severance benefits provided to employees who have been involuntarily terminated. | |||||||
[2] | Facility exit and other costs primarily consist of lease termination costs. |
DEBT (Detail)
DEBT (Detail) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,378.8 | $ 1,642.9 |
Unamortized deferred financing costs | (6.9) | (10.2) |
5.50% Senior notes due 2023 [Domain] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 346.3 | 345.8 |
5.125% Senior notes due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 395.7 | 394.9 |
5.625% Senior notes due 2019 [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 347.7 | 346.8 |
Canadian term loan [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 95.4 | 172.9 |
Receivables facility [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | 197.1 | 390.1 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 3.5 | $ 2.6 |
DEBT - Additional Information (
DEBT - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jan. 01, 2016 | Apr. 03, 2015 | Apr. 04, 2014 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Oct. 05, 2015 | |
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Aggregate annual maturities of debt before accretion of debt discount - 2017 | $ 3,500,000 | ||||||
Aggregate annual maturities of debt before accretion of debt discount - 2018 | 0 | ||||||
Aggregate annual maturities of debt before accretion of debt discount - 2019 | 347,700,000 | ||||||
Aggregate annual maturities of debt before accretion of debt discount - 2020 | 292,500,000 | ||||||
Aggregate annual maturities of debt before accretion of debt discount - 2021 | 395,700,000 | ||||||
Aggregate annual maturities of debt before accretion of debt discount - after 2021 | 346,300,000 | ||||||
Average borrowings outstanding | $ 1,649,000,000 | $ 1,338,400,000 | |||||
Weighted average cost of borrowings | 4.80% | 4.80% | 4.70% | ||||
Cash paid for interest | $ 75,700,000 | $ 56,100,000 | $ 37,600,000 | ||||
Revolving credit facility maximum borrowing capacity | $ 750,000,000 | ||||||
Short-term Debt | $ 2,600,000 | 3,500,000 | 2,600,000 | ||||
Loss on extinguishment of debt | (900,000) | 0 | (900,000) | 0 | |||
Repayments of Senior Debt | 0 | 200,000,000 | 0 | ||||
Retirement of Notes due 2014 | 0 | 0 | 32,300,000 | ||||
Long-term debt | 1,642,900,000 | 1,378,800,000 | 1,642,900,000 | ||||
Long-term Debt Fair Value | 1,669,500,000 | 1,435,600,000 | 1,669,500,000 | ||||
Receivables facility [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Available, committed, unused borrowings | 352,000,000 | ||||||
Revolving credit facility maximum borrowing capacity | 600,000,000 | ||||||
Long-term debt | $ 390,100,000 | 197,100,000 | 390,100,000 | ||||
Inventory asset based revolving credit facility [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Available, committed, unused borrowings | 132,500,000 | ||||||
Revolving credit facility maximum borrowing capacity | 150,000,000 | ||||||
Accounts Receivable Securitization Facility [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Revolving credit facility maximum borrowing capacity | 300,000,000 | ||||||
Revolving Lines of Credit [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Revolving credit facility maximum borrowing capacity | $ 400,000,000 | ||||||
Term loan [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Repayments of debt | 200,000,000 | ||||||
5.95% Senior notes due 2015 [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Fixed interest rate percentage on long term debt | 5.95% | ||||||
Repayments of Senior Debt | $ 200,000,000 | ||||||
10% Senior Notes Due 2014 [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Fixed interest rate percentage on long term debt | 10.00% | ||||||
Face amount of debt instrument | $ 200,000,000 | ||||||
Yield to maturity rate Of senior notes | 12.00% | ||||||
Maturity date of debt instrument | Mar. 15, 2014 | ||||||
Retirement of Notes due 2014 | $ 32,300,000 | ||||||
Continuing Operations [Member] | |||||||
Line Of Credit Facility Covenant Compliance [Line Items] | |||||||
Cash paid for interest | $ 75,700,000 | $ 56,000,000 | $ 37,600,000 |
DEBT - Revolving Lines of Credi
DEBT - Revolving Lines of Credit and Canadian Term Loan (Details) CAD in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Jan. 01, 2016USD ($) | Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | Oct. 05, 2015CAD | Oct. 05, 2015USD ($) | |
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 750 | |||||
Financing costs | $ 6.7 | |||||
Deferred financing costs | $ 5.4 | 5.4 | ||||
Debt related expenses | 1.3 | |||||
Write off of deferred debt financing costs | $ 0.3 | |||||
Receivables facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt term | 5 years | |||||
Revolving credit facility maximum borrowing capacity | 600 | |||||
Available, committed, unused borrowings | $ 352 | |||||
Inventory asset based revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt term | 5 years | |||||
Revolving credit facility maximum borrowing capacity | 150 | |||||
Available, committed, unused borrowings | $ 132.5 | |||||
Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long term debt term | 5 years | |||||
Face amount of debt instrument | 225 | |||||
Minimum fixed charge coverage ratio | 3 | |||||
Repayments of Canadian Term Loan | $ (83.7) | (45.1) | ||||
Write off of deferred debt financing costs | $ 0.5 | $ 0.3 | ||||
Percent of periodic debt maturity in years 1 and 2 | 5.00% | |||||
Percent of periodic debt maturity in years 3 and 4 | 10.00% | |||||
Percent of periodic debt maturity in year 5 | 70.00% | |||||
Maximum leverage ratio | 4.25 | |||||
Combined facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Percent of Combined Facilities availability | 50.00% | |||||
Minimum fixed charge coverage ratio | 1.1 | |||||
Revolving Lines of Credit [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Revolving credit facility maximum borrowing capacity | $ 400 | |||||
Term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Repayments of debt | $ 200 | |||||
Canada, Dollars | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt instrument | CAD | CAD 300 | |||||
Percent of eligible receivables [Member] | Receivables facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Limit on debt instruments available borrowings | 85.00% | |||||
Percent of net orderly liquidation value of appraised eligible domestic inventory [Member] | Inventory asset based revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Limit on debt instruments available borrowings | 85.00% | |||||
Percent of book value of appraised eligible domestic inventory [Member] [Member] | Inventory asset based revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Limit on debt instruments available borrowings | 75.00% | |||||
Percent of net orderly liquidation value of eligible domestic inventory not appraised [Member] | Inventory asset based revolving credit facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Limit on debt instruments available borrowings | 40.00% | |||||
Minimum range impacting basis spread [Member] | Combined facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Available, committed, unused borrowings | $ 500 | |||||
Maximum range impacting basis spread [Member] [Member] | Combined facilities [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Available, committed, unused borrowings | $ 250 | |||||
Minimum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Undrawn commitment fee rate | 0.25% | |||||
Minimum [Member] | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated leverage ratio | 1.25 | |||||
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] | ||||||
Available, committed, unused borrowings | $ 112.5 | |||||
Maximum [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Undrawn commitment fee rate | 0.375% | |||||
Maximum [Member] | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Consolidated leverage ratio | 3 | |||||
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] | ||||||
Available, committed, unused borrowings | $ 150 | |||||
Prime Rate [Member] | Minimum [Member] | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 0.375% | |||||
Prime Rate [Member] | Maximum [Member] | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |||||
Percentage over Banker's Acceptance Rate [Member] | Minimum [Member] | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 1.375% | |||||
Percentage over Banker's Acceptance Rate [Member] | Maximum [Member] | Canadian term loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Basis Spread on Variable Rate | 2.25% |
DEBT - Long Term Debt Senior No
DEBT - Long Term Debt Senior Notes Due 2023 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Debt Instrument [Line Items] | |||
Payments of deferred financing cost | $ 0 | $ 6.7 | $ 2.3 |
Senior notes due 2023 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 350 | ||
Discount percentage of par value | 98.75% | ||
Unamortized debt discount | $ 4.4 | ||
Payments of deferred financing cost | $ 1.7 | ||
Fixed interest rate percentage on long term debt | 5.50% | ||
Maturity date of debt instrument | 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 58
DEBT - Long Term Debt Senior Notes Due 2021 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Debt Instrument [Line Items] | |||
Payments of deferred financing cost | $ 0 | $ 6.7 | $ 2.3 |
Senior notes due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 400 | ||
Discount percentage of par value | 98.50% | ||
Unamortized debt discount | $ 6 | ||
Proceeds from issuance of debt | 393.1 | ||
Payments of deferred financing cost | $ 0.9 | ||
Fixed interest rate percentage on long term debt | 5.125% | ||
Maturity date of debt instrument | 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 Senior Notes D
DEBT - Long Term Senior Notes Due 2019 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Debt Instrument [Line Items] | |||
Payments of deferred financing cost | $ 0 | $ 6.7 | $ 2.3 |
5.625% Senior notes due 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Face amount of debt instrument | $ 350 | ||
Discount percentage of par value | 98.25% | ||
Unamortized debt discount | $ 6.1 | ||
Proceeds from issuance of debt | 342.9 | ||
Payments of deferred financing cost | $ 1 | ||
Fixed interest rate percentage on long term debt | 5.625% | ||
Maturity date of debt instrument | 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 (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating leases expiration | various dates through 2027 | ||
Total operating lease rent expense | $ 97.8 | $ 78 | $ 70.9 |
Future minimum sublease rentals | 6.8 | ||
Outstanding letters of credit and guarantees | $ 44.7 |
COMMITMENTS AND CONTINGENCIES61
COMMITMENTS AND CONTINGENCIES - Minimum Lease Commitments Under Operating Leases (Details) $ in Millions | Dec. 30, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum lease commitments under operating leases - 2017 | $ 64.5 |
Minimum lease commitments under operating leases - 2018 | 57.8 |
Minimum lease commitments under operating leases - 2019 | 43.3 |
Minimum lease commitments under operating leases - 2020 | 33.9 |
Minimum lease commitments under operating leases - 2021 | 27.1 |
Minimum lease commitments under operating leases - 2022 and thereafter | 43.1 |
Total minimum lease commitments under operating leases | $ 269.7 |
INCOME TAXES - Additional Infor
INCOME TAXES - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 | |
Schedule Of Income Taxes [Line Items] | ||||
Domestic income from continuing operations before income taxes | $ 162.4 | $ 167.3 | $ 173 | |
Foreign income from continuing operations before income taxes | $ 35.1 | 15.6 | 76.6 | |
Statutory corporate federal tax rate | 35.00% | |||
Cash paid for taxes | $ 63.4 | 103.5 | 117 | |
Taxes Resulting From Repatriation of Foreign Earnings | 10 | |||
Undistributed earnings of foreign subsidiaries | 656 | |||
Interest and penalties accrued for unrecognized tax benefits | 0.2 | 0.2 | 0.3 | |
Unrecognized tax benefits | 5 | 5.3 | $ 3 | $ 3.4 |
Unrecognized tax benefits that would impact effective tax rate within next twelve months | 0.3 | |||
Reserves For uncertain tax positions including interest and penalties | 3.5 | |||
Foreign Tax Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating loss carryforwards | 95.6 | |||
Undistributed foreign earnings deferred tax liabilities | 31.3 | |||
Domestic Tax Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Undistributed foreign earnings deferred tax liabilities | 60.2 | |||
Indefinite Period [Member] | Foreign Tax Authority [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 80.4 | |||
Minimum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating loss carryforwards expiration date | Jan. 1, 2017 | |||
Maximum [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Operating loss carryforwards expiration date | Dec. 31, 2026 | |||
Power Solutions [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Interest and penalties accrued for unrecognized tax benefits | 0.7 | |||
Unrecognized tax benefits | $ 2.9 | |||
Excluding acquired uncertain tax position [Member] | ||||
Schedule Of Income Taxes [Line Items] | ||||
Unrecognized tax benefits | $ 2.8 |
INCOME TAXES - Components of In
INCOME TAXES - Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Current: | |||
Foreign | $ 18.5 | $ 14.1 | $ 22.6 |
State | 7 | 7.2 | 4.7 |
Federal | 50.2 | 58.8 | 33.2 |
Current income tax expense | 75.7 | 80.1 | 60.5 |
Deferred: | |||
Foreign | (2.8) | 7.1 | (1) |
State | 0.2 | (0.7) | 3.3 |
Federal | 3.3 | (0.5) | 23.4 |
Deferred income taxes | 0.7 | 5.9 | 25.7 |
Income tax expense | $ 76.4 | $ 86 | $ 86.2 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Income Tax Disclosure [Abstract] | |||
Statutory tax expense | $ 69.1 | $ 64 | $ 87.4 |
Increase (reduction) in income taxes resulting from: | |||
State income taxes, net | 4.5 | 4.7 | 5.4 |
Foreign tax effects | 1.8 | 6.3 | 1.2 |
Change in valuation allowance | 1.6 | 9.3 | (9.2) |
Other, net | (0.6) | 1.7 | 1.4 |
Income tax expense | $ 76.4 | $ 86 | $ 86.2 |
INCOME TAXES - Deferred Tax Ass
INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 |
Income Tax Disclosure [Abstract] | ||
Deferred compensation and other postretirement benefits | $ 46.9 | $ 36 |
Foreign NOL carryforwards and other | 27.7 | 24.8 |
Accrued expenses and other | 15.2 | 10.4 |
Inventory reserves | 13.4 | 7.7 |
Unrealized foreign exchange | 0 | 5.8 |
Allowance for doubtful accounts | 11.1 | 10.2 |
Gross deferred tax assets | 114.3 | 94.9 |
Property, equipment, intangibles and other | (107.1) | (83.7) |
Deferred tax assets, net of deferred tax liabilities | 7.2 | 11.2 |
Valuation Allowance | (20.7) | (24) |
Net deferred tax liabilities | $ 13.5 | $ 12.8 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 5.3 | $ 3 | $ 3.4 |
Additions for tax positions of prior years | 0.4 | 0.4 | 0.4 |
Reductions for tax positions of prior years | (0.7) | (0.3) | (0.8) |
Addition for Power Solutions acquisition | 2.2 | ||
Ending balance | $ 5 | $ 5.3 | $ 3 |
PENSION PLANS - Additional Info
PENSION PLANS - Additional Information (Details) £ in Millions, $ in Millions | 12 Months Ended | ||||
Dec. 30, 2016USD ($)Plans | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | Jul. 01, 2016USD ($) | Jul. 01, 2016GBP (£) | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Consolidated weighted-average discount rate | 3.73% | 3.98% | |||
Pension benefit obligation | $ 481.8 | $ 516.1 | $ 556 | ||
Net unfunded status | $ (69.1) | $ (69.9) | |||
Weighted-average expected long-term rate of return on plan assets | 5.50% | ||||
Plan assets actual gain (loss) Percentage | 11.90% | (1.90%) | |||
Plan assets at fair value | $ 412.7 | $ 446.2 | 461.7 | ||
Company contributions to plan assets | 29 | 37.7 | |||
Purchase of annuity | (67.7) | 0 | |||
Accumulated other comprehensive loss before tax | 119.2 | 112.5 | 106.8 | ||
Employee savings plan employer discretionary contribution amount | 0.8 | ||||
Settlements | $ 0 | 10.2 | |||
Participants years of service required to receive credit equal to 2.5% | 5 years | ||||
Period Of service required to get fully vested in hypothetical personal retirement account balance | 3 years | ||||
Change in assumption of mortality rate | $ (0.8) | (1.9) | |||
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 accumulated benefit obligation for pension plans with accumulated benefit obligations in excess of plan assets | $ 390.2 | 368.7 | |||
Aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets | 347.1 | 324.7 | |||
Expected future benefit payments in next twelve months | $ 13 | ||||
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 plan expense | $ 12.2 | 9.3 | 9.2 | ||
Treasury note rate term | 10 years | ||||
Number of previous month of ten year treasury note rate used to calculate average rate for interest accrual | 3 months | ||||
Interests accrual factor | 1.4 | ||||
Current deferred compensation liability | $ 4.9 | 3.5 | |||
Noncurrent deferred compensation liability | 40.7 | 42.9 | |||
Cash surrender value of life insurance | 35.9 | 34.3 | |||
Other Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Company contributions to plan assets | 10.5 | ||||
Accumulated other comprehensive loss before tax | $ (9.6) | £ (6.9) | |||
Expected future benefit payments in next twelve months | 0.9 | ||||
United States Pension Plan of US Entity [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension benefit obligation | 258.8 | 250.1 | 277.4 | ||
Net unfunded status | (20.5) | (32) | |||
Plan assets at fair value | 238.3 | 218.1 | 229.5 | ||
Company contributions to plan assets | 19.5 | 19.1 | |||
Purchase of annuity | (10.5) | 0 | |||
Settlements | 0 | 10.2 | |||
Accumulated benefit obligation | 256.4 | 248.1 | |||
Estimated future employer contributions in next fiscal year | 9 | ||||
Expected future benefit payments in next twelve months | 9 | ||||
Foreign Pension Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Pension benefit obligation | 223 | 266 | 278.6 | ||
Net unfunded status | (48.6) | (37.9) | |||
Plan assets at fair value | 174.4 | 228.1 | $ 232.2 | ||
Company contributions to plan assets | 9.5 | 18.6 | |||
Purchase of annuity | (57.2) | 0 | |||
Settlements | 0 | 0 | |||
Accumulated benefit obligation | 192.9 | $ 235.7 | |||
Estimated future employer contributions in next fiscal year | 7.5 | ||||
Expected future benefit payments in next twelve months | $ 4 | ||||
Minimum [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution discretionary contribution percentage | 2.00% | ||||
Maximum [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined contribution discretionary contribution percentage | 2.50% |
PENSION PLANS - Weighted Averag
PENSION PLANS - Weighted Average Percentage of Actual and Target Asset Allocation (Details) | 12 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
United States Pension Plan of US Entity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 100.00% | 100.00% |
Target plan asset allocations | 100.00% | |
United States Pension Plan of US Entity [Member] | Large Capitalization U.S. Stocks [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 22.70% | 23.00% |
Target plan asset allocations minimum range | 17.00% | |
Target plan asset allocations | 22.00% | |
Target plan asset allocations maximum range | 27.00% | |
United States Pension Plan of US Entity [Member] | Small to Mid Capitalization U.S. Stocks [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 29.10% | 27.10% |
Target plan asset allocations minimum range | 20.00% | |
Target plan asset allocations | 30.00% | |
Target plan asset allocations maximum range | 40.00% | |
United States Pension Plan of US Entity [Member] | Emerging Market Equity [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 10.00% | 7.60% |
Target plan asset allocations minimum range | 5.00% | |
Target plan asset allocations | 10.00% | |
Target plan asset allocations maximum range | 15.00% | |
United States Pension Plan of US Entity [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 61.80% | 57.70% |
Target plan asset allocations | 62.00% | |
United States Pension Plan of US Entity [Member] | Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 35.00% | 37.90% |
Target plan asset allocations minimum range | 31.00% | |
Target plan asset allocations | 38.00% | |
Target plan asset allocations maximum range | 45.00% | |
United States Pension Plan of US Entity [Member] | Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 3.20% | 4.40% |
Target plan asset allocations minimum range | 0.00% | |
Target plan asset allocations | 0.00% | |
Target plan asset allocations maximum range | 10.00% | |
Foreign Pension Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 100.00% | 100.00% |
Target plan asset allocations | 100.00% | 100.00% |
Foreign Pension Plan [Member] | Equity Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 61.00% | 43.00% |
Target plan asset allocations | 60.00% | 44.00% |
Foreign Pension Plan [Member] | Fixed Income Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 29.00% | 22.00% |
Target plan asset allocations | 30.00% | 22.00% |
Foreign Pension Plan [Member] | Other Investments [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Actual plan asset allocations | 10.00% | 35.00% |
Target plan asset allocations | 10.00% | 34.00% |
PENSION PLANS - Defined Benefit
PENSION PLANS - Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $ 112.5 | $ 106.8 |
Recognized prior service cost | 4 | 9.1 |
Recognized transition obligation | (0.9) | 0 |
Recognized net actuarial gain | (14.8) | (8.3) |
Prior service credit arising in current year | (2.2) | (29.8) |
Net actuarial loss arising in current year | 20.6 | 34.7 |
Ending balance | $ 119.2 | $ 112.5 |
PENSION PLANS - Accumulated Oth
PENSION PLANS - Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Prior service credit | $ (21.1) | $ (25) | |
Net actuarial loss | 140.3 | 137.5 | |
Accumulated other comprehensive loss before tax | $ 119.2 | $ 112.5 | $ 106.8 |
PENSION PLANS - Amounts in Accu
PENSION PLANS - Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year (Details) $ in Millions | 12 Months Ended |
Dec. 30, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Amortization of prior service credit | $ (4) |
Amortization of actuarial loss | 9.2 |
Total amortization expected | $ 5.2 |
PENSION PLANS - Reconcilation o
PENSION PLANS - Reconcilation of Net Funded Status of Pension Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | |
Change in projected benefit obligation: | |||||
Beginning balance | $ 516.1 | $ 556 | |||
Service cost | 9 | 10.5 | |||
Interest cost | 19.3 | 20.7 | |||
Actuarial (gain) loss | 56 | (20.3) | |||
Lump sum settlement | 0 | (10.2) | |||
Benefits paid from plan assets | (23.7) | (14.8) | |||
Benefits paid from company assets | (0.9) | (0.8) | |||
Plan participants contributions | 0.2 | 0.2 | |||
Foreign currency exchange rate changes | (26.5) | (24.3) | |||
Impact due to curtailment | 0 | (1.2) | |||
Impact due to annuity purchase | (67.7) | 0 | |||
Special termination benefits | 0 | 0.3 | |||
Ending balance | 481.8 | 516.1 | $ 556 | ||
Change in plan assets at fair value: | |||||
Beginning balance | 446.2 | 461.7 | |||
Actual return on plan assets | 50.9 | (8.4) | |||
Company contributions to plan assets | 29 | 37.7 | |||
Benefits paid from plan assets | (23.7) | (25) | |||
Plan participants contributions | 0.2 | 0.2 | |||
Purchase of annuity | (67.7) | 0 | |||
Foreign currency exchange rate changes | (22.2) | (20) | |||
Ending balance | 412.7 | 446.2 | 461.7 | ||
Reconciliation of funded status: | |||||
Pension benefit obligation | (516.1) | (556) | (556) | $ (481.8) | $ (516.1) |
Plan assets at fair value | 446.2 | 461.7 | 461.7 | 412.7 | 446.2 |
Funded status | (69.1) | (69.9) | |||
Accrued benefit cost related to two non-qualified plans | 0 | 16.2 | |||
Non-current asset | 0.3 | 0.3 | |||
Current liability | (0.9) | (0.9) | |||
Noncurrent liability | (68.5) | (69.3) | |||
Funded status | $ (69.1) | $ (69.9) | |||
Weighted average assumptions used for measurement of the projected benefit obligation | |||||
Discount rate | 3.73% | 3.98% | |||
Projected Benefit Obligation [Member] | |||||
Weighted average assumptions used for measurement of the projected benefit obligation | |||||
Discount rate | 3.73% | 3.98% | |||
Salary growth rate | 3.73% | 3.75% | |||
United States Pension Plan of US Entity [Member] | |||||
Change in projected benefit obligation: | |||||
Beginning balance | 250.1 | 277.4 | |||
Service cost | 3.2 | 3.9 | |||
Interest cost | 11.5 | 11.6 | 10.8 | ||
Actuarial (gain) loss | 13 | (24.3) | |||
Lump sum settlement | 0 | (10.2) | |||
Benefits paid from plan assets | (7.6) | (7.3) | |||
Benefits paid from company assets | (0.9) | (0.8) | |||
Plan participants contributions | 0 | 0 | |||
Foreign currency exchange rate changes | 0 | 0 | |||
Impact due to curtailment | 0 | (0.5) | |||
Impact due to annuity purchase | (10.5) | 0 | |||
Special termination benefits | 0 | 0.3 | |||
Ending balance | 258.8 | 250.1 | 277.4 | ||
Change in plan assets at fair value: | |||||
Beginning balance | 218.1 | 229.5 | |||
Actual return on plan assets | 18.8 | (13) | |||
Company contributions to plan assets | 19.5 | 19.1 | |||
Benefits paid from plan assets | (7.6) | (17.5) | |||
Plan participants contributions | 0 | 0 | |||
Purchase of annuity | (10.5) | 0 | |||
Foreign currency exchange rate changes | 0 | 0 | |||
Ending balance | 238.3 | 218.1 | 229.5 | ||
Reconciliation of funded status: | |||||
Pension benefit obligation | (250.1) | (277.4) | (277.4) | $ (258.8) | $ (250.1) |
Plan assets at fair value | 218.1 | 229.5 | 229.5 | 238.3 | 218.1 |
Funded status | (20.5) | (32) | |||
Non-current asset | 0 | 0 | |||
Current liability | (0.9) | (0.9) | |||
Noncurrent liability | (19.6) | (31.1) | |||
Funded status | $ (20.5) | $ (32) | |||
United States Pension Plan of US Entity [Member] | Projected Benefit Obligation [Member] | |||||
Weighted average assumptions used for measurement of the projected benefit obligation | |||||
Discount rate | 4.36% | 4.65% | |||
Salary growth rate | 4.63% | 4.60% | |||
Foreign Pension Plan [Member] | |||||
Change in projected benefit obligation: | |||||
Beginning balance | 266 | 278.6 | |||
Service cost | 5.8 | 6.6 | |||
Interest cost | 7.8 | 9.1 | 10.6 | ||
Actuarial (gain) loss | 43 | 4 | |||
Lump sum settlement | 0 | 0 | |||
Benefits paid from plan assets | (16.1) | (7.5) | |||
Benefits paid from company assets | 0 | 0 | |||
Plan participants contributions | 0.2 | 0.2 | |||
Foreign currency exchange rate changes | (26.5) | (24.3) | |||
Impact due to curtailment | 0 | (0.7) | |||
Impact due to annuity purchase | (57.2) | 0 | |||
Special termination benefits | 0 | 0 | |||
Ending balance | 223 | 266 | 278.6 | ||
Change in plan assets at fair value: | |||||
Beginning balance | 228.1 | 232.2 | |||
Actual return on plan assets | 32.1 | 4.6 | |||
Company contributions to plan assets | 9.5 | 18.6 | |||
Benefits paid from plan assets | (16.1) | (7.5) | |||
Plan participants contributions | 0.2 | 0.2 | |||
Purchase of annuity | (57.2) | 0 | |||
Foreign currency exchange rate changes | (22.2) | (20) | |||
Ending balance | 174.4 | 228.1 | 232.2 | ||
Reconciliation of funded status: | |||||
Pension benefit obligation | (266) | (278.6) | (278.6) | $ (223) | $ (266) |
Plan assets at fair value | $ 228.1 | $ 232.2 | $ 232.2 | 174.4 | 228.1 |
Funded status | (48.6) | (37.9) | |||
Non-current asset | 0.3 | 0.3 | |||
Current liability | 0 | 0 | |||
Noncurrent liability | (48.9) | (38.2) | |||
Funded status | $ (48.6) | $ (37.9) | |||
Foreign Pension Plan [Member] | Projected Benefit Obligation [Member] | |||||
Weighted average assumptions used for measurement of the projected benefit obligation | |||||
Discount rate | 2.99% | 3.35% | |||
Salary growth rate | 3.01% | 3.08% |
PENSION PLANS - Components of N
PENSION PLANS - Components of Net Periodic Cost (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Components of net periodic cost: | |||
Interest cost | $ 19.3 | $ 20.7 | |
Net periodic cost (benefit) | 20.8 | 11.4 | $ 4.6 |
United States Pension Plan of US Entity [Member] | |||
Components of net periodic cost: | |||
Service cost | 4.7 | 5.2 | 4.8 |
Interest cost | 11.5 | 11.6 | 10.8 |
Expected return on plan assets | (14.2) | (15.1) | (13.9) |
Net amortization | 2.4 | 1.3 | (2.2) |
Settlement charge | 0 | 0 | 0 |
Net periodic cost (benefit) | 4.4 | 3 | (0.5) |
Foreign Pension Plan [Member] | |||
Components of net periodic cost: | |||
Service cost | 5.9 | 6.6 | 5.9 |
Interest cost | 7.8 | 9.1 | 10.6 |
Expected return on plan assets | (9.4) | (10.5) | (12.5) |
Net amortization | 2.5 | 2.9 | 1.1 |
Settlement charge | 9.6 | 0 | 0 |
Net periodic cost (benefit) | 16.4 | 8.1 | 5.1 |
Continuing Operations [Member] | |||
Components of net periodic cost: | |||
Service cost | 10.6 | 11.8 | 10.7 |
Interest cost | 19.3 | 20.7 | 21.4 |
Expected return on plan assets | (23.6) | (25.6) | (26.4) |
Net amortization | 4.9 | 4.2 | (1.1) |
Settlement charge | 9.6 | 0 | 0 |
Net periodic cost (benefit) | $ 20.8 | $ 11.1 | $ 4.6 |
PENSION PLANS - Weighted-Averag
PENSION PLANS - Weighted-Average Assumptions Used to Measure Net Periodic Benefit Costs (Details) | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Expected return on plan assets | 5.50% | ||
Net Periodic Benefit Cost [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 3.98% | 3.79% | 4.64% |
Expected return on plan assets | 5.50% | 5.63% | 6.08% |
Salary growth rate | 3.75% | 3.79% | 4.04% |
United States Pension Plan of US Entity [Member] | Net Periodic Benefit Cost [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 4.65% | 4.14% | 4.81% |
Expected return on plan assets | 6.50% | 6.50% | 6.50% |
Salary growth rate | 4.60% | 4.60% | 4.63% |
Foreign Pension Plan [Member] | Net Periodic Benefit Cost [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount Rate | 3.35% | 3.44% | 4.49% |
Expected return on plan assets | 4.54% | 4.77% | 5.67% |
Salary growth rate | 3.08% | 3.12% | 3.27% |
PENSION PLANS - Assets Measured
PENSION PLANS - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 412.7 | $ 446.2 | $ 461.7 |
Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 8.1 | 13.9 | |
Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 166.7 | 162.9 | |
Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 87.2 | 61.2 | |
Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 46.4 | 44 | |
Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 88.1 | 89.5 | |
Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 16 | 74.5 | |
Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.2 | 0.2 | |
United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 238.3 | 218.1 | 229.5 |
United States Pension Plan of US Entity [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 7.5 | 9.7 | |
United States Pension Plan of US Entity [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 123.5 | 109.2 | |
United States Pension Plan of US Entity [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 23.7 | 16.6 | |
United States Pension Plan of US Entity [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 5.1 | 2.9 | |
United States Pension Plan of US Entity [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 78.5 | 79.7 | |
United States Pension Plan of US Entity [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
United States Pension Plan of US Entity [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 174.4 | 228.1 | 232.2 |
Foreign Pension Plan [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.6 | 4.2 | |
Foreign Pension Plan [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 43.2 | 53.7 | |
Foreign Pension Plan [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 63.5 | 44.6 | |
Foreign Pension Plan [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 41.3 | 41.1 | |
Foreign Pension Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 9.6 | 9.8 | |
Foreign Pension Plan [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 16 | 74.5 | |
Foreign Pension Plan [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.2 | 0.2 | |
Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 155.3 | 139.7 | |
Level 1 [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 8.1 | 13.9 | |
Level 1 [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 123.5 | 109.2 | |
Level 1 [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 23.7 | 16.6 | |
Level 1 [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 154.7 | 135.5 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 7.5 | 9.7 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 123.5 | 109.2 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 23.7 | 16.6 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.6 | 4.2 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.6 | 4.2 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 1 [Member] | Foreign Pension Plan [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 257.4 | 247.6 | |
Level 2 [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 43.2 | 53.7 | |
Level 2 [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 63.5 | 44.6 | |
Level 2 [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 46.4 | 44 | |
Level 2 [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 88.1 | 89.5 | |
Level 2 [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 16 | 15.6 | |
Level 2 [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.2 | 0.2 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 83.6 | 82.6 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 5.1 | 2.9 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 78.5 | 79.7 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 173.8 | 165 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 43.2 | 53.7 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 63.5 | 44.6 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 41.3 | 41.1 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 9.6 | 9.8 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 16 | 15.6 | |
Level 2 [Member] | Foreign Pension Plan [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0.2 | 0.2 | |
Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 58.9 | 0 |
Level 3 [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 58.9 | $ 0 |
Level 3 [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | United States Pension Plan of US Entity [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Foreign Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 58.9 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Cash and Short-Term Investments [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Equity Securities International [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Fixed Income Securities Domestic [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Corporate Bonds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 0 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Insurance Funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | 0 | 58.9 | |
Level 3 [Member] | Foreign Pension Plan [Member] | Other [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets at fair value | $ 0 | $ 0 |
PENSION PLANS - Change in Level
PENSION PLANS - Change in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 30, 2016 | Jan. 01, 2016 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | $ 446.2 | $ 461.7 |
Ending balance | 412.7 | 446.2 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 58.9 | 0 |
Net purchases, issuances and settlements | (58.9) | 58.9 |
Ending balance | 0 | 58.9 |
Insurance Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 74.5 | |
Ending balance | 16 | 74.5 |
Insurance Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Beginning balance | 58.9 | 0 |
Net purchases, issuances and settlements | (58.9) | 58.9 |
Ending balance | $ 0 | $ 58.9 |
PENSION PLANS - Estimated Futur
PENSION PLANS - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 30, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 13 |
2,018 | 14.1 |
2,019 | 15.2 |
2,020 | 16.1 |
2,021 | 17.1 |
2022-2026 | 103.6 |
Total | 179.1 |
United States Pension Plan of US Entity [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 9 |
2,018 | 9.8 |
2,019 | 10.8 |
2,020 | 11.6 |
2,021 | 12.3 |
2022-2026 | 72.4 |
Total | 125.9 |
Foreign Pension Plan [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | 4 |
2,018 | 4.3 |
2,019 | 4.4 |
2,020 | 4.5 |
2,021 | 4.8 |
2022-2026 | 31.2 |
Total | $ 53.2 |
STOCKHOLDERS' EQUITY - Addition
STOCKHOLDERS' EQUITY - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred Stock, Shares Authorized | 15,000,000 | 15,000,000 | |
Preferred Stock, Par or Stated Value Per Share | $ 1 | $ 1 | |
Preferred Stock, Shares Outstanding | 0 | 0 | |
Common stock, shares authorized | 100,000,000 | 100,000,000 | |
Common stock, par value | $ 1 | $ 1 | |
Common stock, shares outstanding | 33,437,882 | 33,278,130 | |
Number of shares available for grant | 1,200,000 | ||
Stock-based compensation | $ 16.5 | $ 14.5 | $ 13.8 |
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Stock-based compensation | $ 13.7 | 11.3 | 10.2 |
Fair value of vested stock units | $ 12 | 13.4 | 11.7 |
Stock units outstanding weighted-average remaining term | 2 years 3 months | ||
Aggregate intrinsic value of stock units converted into stock | $ 5.4 | 12.8 | 21 |
Aggregate intrinsic value of stock units outstanding | 79.9 | 44.9 | 60.7 |
Aggregate intrinsic value of convertible stock units | 27.6 | 18.6 | 25 |
Unrecognized compensation cost related to non-vested shares and options | $ 17.4 | ||
Weighted-average recognition period for unrecognized compensation cost related to non-vested shares and options | 1 year 6 months | ||
Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 6 years | ||
Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 4 years | ||
Stock-based compensation | $ 0.5 | 0.9 | 1.3 |
Stock options expiration period | 10 years | ||
Fair value of vested stock options during the period | $ 1 | $ 1.7 | $ 1.7 |
Stock options outstanding weighted-average remaining term | 4 years 2 months | ||
Stock options exercisable weighted-average remaining term | 4 years 1 month | ||
Options exercised | 44,800 | 0 | 162,400 |
Aggregate intrinsic value of stock options exercised during the period | $ 1 | $ 7.9 | |
Aggregate intrinsic value of stock options outstanding | 15.8 | $ 19.6 | 20.9 |
Aggregate intrinsic value of exercisable stock options | 15.5 | 15.9 | 17.7 |
Unrecognized compensation cost related to non-vested shares and options | $ 0.1 | ||
Weighted-average recognition period for unrecognized compensation cost related to non-vested shares and options | 1 year | ||
Director stock units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation | $ 2.3 | $ 2 | $ 1.9 |
STOCKHOLDERS' EQUITY - Activity
STOCKHOLDERS' EQUITY - Activity Under the Director and Employee Stock Unit Plans (Details) - $ / shares | 12 Months Ended | |||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | ||
Director stock units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance | [1] | 307,800 | 283,300 | 302,500 |
Granted | [1] | 33,300 | 32,200 | 20,300 |
Converted | [1] | 0 | (7,700) | (39,500) |
Canceled | [1] | 0 | 0 | 0 |
Ending balance | [1] | 341,100 | 307,800 | 283,300 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Beginning balance, weighted average grant date value | [2] | $ 52.53 | $ 51.42 | $ 47.81 |
Granted, weighted average grant date fair value | [2] | 56.34 | 63.99 | 93.26 |
Converted, weighted average grant date fair value | [2] | 0 | 59.56 | 45.82 |
Canceled, weighted average grant date fair value | [2] | 0 | 0 | 0 |
Ending balance, weighted average grant date fair value | [2] | $ 52.90 | $ 52.53 | $ 51.42 |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | ||||
Beginning balance | [3] | 436,100 | 405,100 | 453,300 |
Granted | [3] | 491,500 | 217,000 | 126,800 |
Converted | [3] | (125,200) | (157,600) | (163,100) |
Canceled | [3] | (75,000) | (28,400) | (11,900) |
Ending balance | [3] | 727,400 | 436,100 | 405,100 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||||
Beginning balance, weighted average grant date value | [2] | $ 81.56 | $ 80.65 | $ 65.64 |
Granted, weighted average grant date fair value | [2] | 39.93 | 75.53 | 106.90 |
Converted, weighted average grant date fair value | [2] | 80.58 | 71.71 | 59.92 |
Canceled, weighted average grant date fair value | [2] | 55.89 | 77.15 | 72.53 |
Ending balance, weighted average grant date fair value | [2] | $ 56.25 | $ 81.56 | $ 80.65 |
[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 - Activi80
STOCKHOLDERS' EQUITY - Activity Under the Employee Option Plans (Details) - Employee Stock Option [Member] - $ / shares | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Beginning balance | 533,000 | 533,000 | 695,400 |
Exercised | (44,800) | 0 | (162,400) |
Ending balance | 488,200 | 533,000 | 533,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Beginning balance, weighted average exercise price | $ 49 | $ 49 | $ 47.93 |
Exercised, weighted average exercise price | 52.55 | 0 | 44.40 |
Ending balance, weighted average exercise price | $ 48.68 | $ 49 | $ 49 |
Options exercisable at year end | 468,400 | 472,500 | 405,600 |
Options exercisable at year end, weighted average exercise price | $ 48 | $ 47.15 | $ 44.65 |
STOCKHOLDERS' EQUITY - Changes
STOCKHOLDERS' EQUITY - Changes to the Unvested Stock Options (Details) | 12 Months Ended |
Dec. 30, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested options, beginning balance | shares | 60,500 |
Non-vested options, granted | shares | 0 |
Non-vested options, vested | shares | (40,700) |
Non-vested options, canceled | shares | 0 |
Non-vested options, ending balance | shares | 19,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Non-vested options, weighted average grant date fair value, beginning balance | $ / shares | $ 26.18 |
Non-vested options, weighted average grant date fair value, granted | $ / shares | 0 |
Non-vested options, weighted average grant date fair value, vested | $ / shares | 25.80 |
Non-vested options, weighted average grant date fair value, canceled | $ / shares | 0 |
Non-vested options, weighted average grant date fair value, ending balance | $ / shares | $ 26.95 |
Performance Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Non-vested performance shares, beginning balance | shares | 0 |
Non-vested performance shares, granted | shares | 85,800 |
Non-vested performance shares, vested | shares | 0 |
Non-vested performance shares, canceled | shares | (3,000) |
Non-vested performance shares, ending balance | shares | 82,800 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Beginning balance, weighted average grant date value | $ / shares | $ 0 |
Granted, weighted average grant date fair value | $ / shares | 21.53 |
Vested, weighted average grant date fair value | $ / shares | 0 |
Canceled, weighted average grant date fair value | $ / shares | 21.53 |
Ending balance, weighted average grant date fair value | $ / shares | $ 21.53 |
BUSINESS SEGMENTS - Additional
BUSINESS SEGMENTS - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Goodwill [Line Items] | |||
Segment reporting disclosure of major customers | 0.02 | ||
Property and equipment | $ 140.3 | $ 131.8 | |
Total purchase price, net of cash acquired and working capital adjustment | 4.7 | 822.5 | $ 418.4 |
UNITED STATES | |||
Goodwill [Line Items] | |||
Revenues | 5,613.6 | 4,137.9 | 3,287.4 |
Property and equipment | 121 | ||
CANADA | |||
Goodwill [Line Items] | |||
Revenues | $ 771 | 691.3 | $ 751.8 |
Power Solutions [Member] | |||
Goodwill [Line Items] | |||
Total purchase price, net of cash acquired and working capital adjustment | 829.4 | ||
Cash acquired from acquisition | $ 11.7 |
BUSINESS SEGMENTS - Segment Inf
BUSINESS SEGMENTS - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 30, 2016 | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | [4] | Jan. 01, 2016 | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | [8] | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | ||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | $ 1,894.6 | [1] | $ 1,956.3 | $ 1,955.7 | $ 1,816.2 | $ 1,835.8 | [5] | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 7,622.8 | $ 6,190.5 | $ 5,507 | |||||||||
Operating income | 81 | [1] | $ 87.3 | $ 56.7 | $ 60.3 | 65.8 | [5] | $ 78.2 | $ 64.5 | $ 59.3 | 285.3 | 267.8 | 310.1 | |||||||||
Depreciation | 27.9 | 23.8 | 24 | |||||||||||||||||||
Amortization of intangible assets | 37.6 | 25.4 | 11.7 | |||||||||||||||||||
Total assets | 4,093.6 | 4,142 | 4,093.6 | 4,142 | ||||||||||||||||||
Capital expenditures | 32.6 | 28.6 | 40.3 | |||||||||||||||||||
Network and Security Solutions [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 4,083.8 | 3,968.2 | 3,526 | [9] | ||||||||||||||||||
Operating income | 275.8 | 258.2 | 261.1 | [9] | ||||||||||||||||||
Depreciation | 3.2 | 3.6 | 3 | [9] | ||||||||||||||||||
Amortization of intangible assets | 14.1 | 14.7 | 4.9 | [9] | ||||||||||||||||||
Total assets | 1,974 | 1,902.8 | 1,974 | 1,902.8 | 1,863.7 | [9] | ||||||||||||||||
Capital expenditures | 3.4 | 3 | 2.6 | [9] | ||||||||||||||||||
Electrical and Electronic Solutions [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 2,103.2 | 1,816.5 | [10] | 1,911.1 | ||||||||||||||||||
Operating income | 97.5 | 121.1 | [10] | 162.5 | ||||||||||||||||||
Depreciation | 2.7 | 1.4 | [10] | 1.2 | ||||||||||||||||||
Amortization of intangible assets | 8.5 | 6.3 | [10] | 5.7 | ||||||||||||||||||
Total assets | 983.6 | 1,071.4 | [10] | 983.6 | 1,071.4 | [10] | 972.4 | |||||||||||||||
Capital expenditures | 2.9 | 1 | [10] | 1.3 | ||||||||||||||||||
Utility Power Solutions [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 1,435.8 | 405.8 | [10] | 69.9 | ||||||||||||||||||
Operating income | 56.7 | 22.4 | [10] | 10.9 | ||||||||||||||||||
Depreciation | 4.2 | 1.2 | [10] | 0 | ||||||||||||||||||
Amortization of intangible assets | 15 | 3.9 | [10] | 0 | ||||||||||||||||||
Total assets | 821.9 | 813.4 | [10] | 821.9 | 813.4 | [10] | 0 | |||||||||||||||
Capital expenditures | 2.5 | 0.8 | [10] | 0 | ||||||||||||||||||
Corporate [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | [11] | 0 | 0 | 0 | ||||||||||||||||||
Operating income | [11] | (144.7) | (133.9) | (124.4) | ||||||||||||||||||
Depreciation | [11] | 17.8 | 16 | 15.8 | ||||||||||||||||||
Amortization of intangible assets | [11] | 0 | 0 | 0 | ||||||||||||||||||
Total assets | [11] | 313.9 | 350.6 | 313.9 | 350.6 | 337.8 | ||||||||||||||||
Capital expenditures | [11] | 23.8 | 21.9 | 30.3 | ||||||||||||||||||
Continuing Operations [Member] | ||||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||||
Net sales | 7,622.8 | 6,190.5 | 5,507 | |||||||||||||||||||
Operating income | 285.3 | 267.8 | 310.1 | |||||||||||||||||||
Depreciation | 27.9 | 22.2 | 20 | |||||||||||||||||||
Amortization of intangible assets | 37.6 | 24.9 | 10.6 | |||||||||||||||||||
Total assets | $ 4,093.4 | $ 4,138.2 | 4,093.4 | 4,138.2 | 3,173.9 | |||||||||||||||||
Capital expenditures | $ 32.6 | $ 26.7 | $ 34.2 | |||||||||||||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | |||||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | |||||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | |||||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | |||||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | |||||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | |||||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | |||||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. | |||||||||||||||||||||
[9] | At the end of the third quarter of 2014, we acquired Tri-Ed which is reported in the NSS business segments. For further information, see Note 3. "Business Combinations". | |||||||||||||||||||||
[10] | At the beginning of the fourth quarter of 2015, we acquired Power Solutions which is reported in both the EES and UPS business segments. For further information, see Note 3. "Business Combinations". | |||||||||||||||||||||
[11] | Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. |
BUSINESS SEGMENTS - Segment Ope
BUSINESS SEGMENTS - Segment Operating Income Results (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 30, 2016 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Jul. 03, 2015 | Apr. 03, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | $ (37.6) | $ (25.4) | $ (11.7) | |||||||||||
Network and Security Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | (14.1) | (14.7) | (4.9) | [1] | ||||||||||
Electrical and Electronic Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | (8.5) | (6.3) | [2] | (5.7) | ||||||||||
Utility Power Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | (15) | (3.9) | [2] | 0 | ||||||||||
Corporate [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | [3] | 0 | 0 | 0 | ||||||||||
Operating Income (Loss) [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | $ (9) | $ (9.4) | $ (9.5) | $ (9.7) | $ (9.6) | $ (5) | $ (5.2) | $ (5.1) | (37.6) | (24.9) | (10.6) | |||
UK pension settlement | (9.6) | (0.4) | (9.6) | (0.4) | ||||||||||
Restructuring charges | (5.6) | (5.4) | (8.2) | |||||||||||
Acquisition and integration costs | $ (0.8) | $ (0.7) | (1.4) | $ (2.2) | (4.1) | $ (8.1) | (1) | (5.1) | (13.2) | (7.2) | ||||
Write-off of capitalized software | (3.1) | (3.1) | ||||||||||||
Latin America bad debt provision | $ (7.6) | $ (9.1) | (2.6) | (7.6) | (11.7) | |||||||||
Dilapidation provision | $ (1.7) | (1.7) | ||||||||||||
Items impacting operating income | (65.3) | (63.2) | (17.8) | |||||||||||
Operating Income (Loss) [Member] | Network and Security Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | (14.1) | (14.7) | (4.9) | |||||||||||
UK pension settlement | 0 | 0 | ||||||||||||
Restructuring charges | (1.7) | (2.4) | ||||||||||||
Acquisition and integration costs | 0 | 0 | (7) | |||||||||||
Write-off of capitalized software | 0 | |||||||||||||
Latin America bad debt provision | (3.9) | (10.7) | ||||||||||||
Dilapidation provision | 0 | |||||||||||||
Items impacting operating income | (19.7) | (27.8) | (11.9) | |||||||||||
Operating Income (Loss) [Member] | Electrical and Electronic Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | (8.5) | (6.3) | (5.7) | |||||||||||
UK pension settlement | 0 | 0 | ||||||||||||
Restructuring charges | (1.3) | (3.2) | ||||||||||||
Acquisition and integration costs | 0 | 0 | (0.2) | |||||||||||
Write-off of capitalized software | 0 | |||||||||||||
Latin America bad debt provision | (3.7) | (1) | ||||||||||||
Dilapidation provision | 0 | |||||||||||||
Items impacting operating income | (13.5) | (10.5) | (5.9) | |||||||||||
Operating Income (Loss) [Member] | Utility Power Solutions [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | (15) | (3.9) | 0 | |||||||||||
UK pension settlement | 0 | 0 | ||||||||||||
Restructuring charges | (2.1) | (0.1) | ||||||||||||
Acquisition and integration costs | (0.3) | (0.2) | 0 | |||||||||||
Write-off of capitalized software | 0 | |||||||||||||
Latin America bad debt provision | 0 | 0 | ||||||||||||
Dilapidation provision | 0 | |||||||||||||
Items impacting operating income | (17.4) | (4.2) | 0 | |||||||||||
Operating Income (Loss) [Member] | Corporate [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Amortization of intangible assets | 0 | 0 | 0 | |||||||||||
UK pension settlement | (9.6) | (0.4) | ||||||||||||
Restructuring charges | (0.3) | (2.5) | ||||||||||||
Acquisition and integration costs | (4.8) | (13) | 0 | |||||||||||
Write-off of capitalized software | (3.1) | |||||||||||||
Latin America bad debt provision | 0 | 0 | ||||||||||||
Dilapidation provision | (1.7) | |||||||||||||
Items impacting operating income | $ (14.7) | $ (20.7) | $ 0 | |||||||||||
[1] | 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". | |||||||||||||
[2] | 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". | |||||||||||||
[3] | Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets. |
BUSINESS SEGMENTS - Revenue Fro
BUSINESS SEGMENTS - Revenue From External Customers by Geographic Areas (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 30, 2016 | [1] | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | [4] | Jan. 01, 2016 | [5] | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | [8] | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Net sales | $ 1,894.6 | $ 1,956.3 | $ 1,955.7 | $ 1,816.2 | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 7,622.8 | $ 6,190.5 | $ 5,507 | ||||||||
Percentage of total net sales | 100.00% | 100.00% | 100.00% | ||||||||||||||||
North America [Member] | |||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Net sales | $ 6,384.6 | $ 4,829.2 | $ 4,039.2 | ||||||||||||||||
Percentage of total net sales | 83.80% | 78.00% | 73.30% | ||||||||||||||||
EMEA [Member] | |||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Net sales | $ 570.1 | $ 601.9 | $ 648.5 | ||||||||||||||||
Percentage of total net sales | 7.40% | 9.70% | 11.80% | ||||||||||||||||
Emerging Markets [Member] | |||||||||||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||||||||||
Net sales | $ 668.1 | $ 759.4 | $ 819.3 | ||||||||||||||||
Percentage of total net sales | 8.80% | 12.30% | 14.90% | ||||||||||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | ||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | ||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | ||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | ||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | ||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. |
BUSINESS SEGEMENTS - Long-Lived
BUSINESS SEGEMENTS - Long-Lived Assets by Geographic Areas (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | $ 4,093.6 | $ 4,142 | |
Property and equipment | 140.3 | 131.8 | |
North America [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | 3,376.8 | 3,371.2 | |
Property and equipment | 126 | 115.7 | |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | 224.9 | 252.9 | |
Property and equipment | 8.1 | 9.9 | |
Emerging Markets [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | 491.7 | 514.1 | |
Property and equipment | 6.2 | 6.2 | |
Continuing Operations [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total assets | $ 4,093.4 | $ 4,138.2 | $ 3,173.9 |
BUSINESS SEGMENTS - Changes in
BUSINESS SEGMENTS - Changes in Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 30, 2016 | Jan. 01, 2016 | |||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | $ 756.5 | $ 582.3 | ||
Acquisition related | 4.5 | [1] | 188.7 | [2] |
Reassignment of goodwill | 0 | |||
Foreign currency translation | 3.6 | (14.5) | ||
Goodwill, Ending Balance | 764.6 | 756.5 | ||
Network and Security Solutions [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 393.3 | 403.4 | ||
Acquisition related | (0.5) | [1] | (1.3) | [2] |
Reassignment of goodwill | 11.2 | |||
Foreign currency translation | 1 | (8.8) | ||
Goodwill, Ending Balance | 405 | 393.3 | ||
Electrical and Electronic Solutions [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 211.9 | 178.9 | ||
Acquisition related | 0.7 | [1] | 34.7 | [2] |
Reassignment of goodwill | (31.8) | |||
Foreign currency translation | 0.2 | (1.7) | ||
Goodwill, Ending Balance | 181 | 211.9 | ||
Utility Power Solutions [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, Beginning Balance | 151.3 | 0 | ||
Acquisition related | 4.3 | [1] | 155.3 | [2] |
Reassignment of goodwill | 20.6 | |||
Foreign currency translation | 2.4 | (4) | ||
Goodwill, Ending Balance | $ 178.6 | $ 151.3 | ||
[1] | In the first, second and third quarters of 2016, we recorded an immaterial increase in goodwill primarily related to determining the fair value of inventory and fixed assets relating to the Power Solutions acquisition. | |||
[2] | 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 $829.4 million (net of cash and outstanding checks of $11.7 million). |
SUMMARIZED FINANCIAL INFORMAT88
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - Additional Information (Detail) | 12 Months Ended |
Dec. 30, 2016 | |
Disclosure Summarized Financial Information Of Anixter Inc Additional Information [Abstract] | |
Description of guarantees given by parent company | Anixter International Inc. guarantees, fully and unconditionally, substantially all of the debt of our subsidiaries, which include Anixter Inc., our 100% owned primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. |
SUMMARIZED FINANCIAL INFORMAT89
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED BALANCE SHEETS (Detail) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 |
Assets: | ||||
Current assets | $ 2,688.5 | $ 2,727.8 | ||
Property, equipment and capital leases, net | 140.3 | 131.8 | ||
Goodwill | 764.6 | 756.5 | $ 582.3 | |
Intangible assets, net | 415.4 | 453.8 | ||
Other assets | 84.8 | 72.1 | ||
Total assets | 4,093.6 | 4,142 | ||
Liabilities and Stockholders' Equity: | ||||
Current liabilities | 1,263.9 | 1,156.2 | ||
Other liabilities | 158.7 | 163.5 | ||
Stockholders' equity | 1,292.2 | 1,179.4 | $ 1,133 | $ 1,027.4 |
Total liabilities and stockholders’ equity | 4,093.6 | 4,142 | ||
Anixter Inc. [Member] | ||||
Assets: | ||||
Current assets | 2,688.3 | 2,727.2 | ||
Property, equipment and capital leases, net | 148.4 | 141.1 | ||
Goodwill | 764.6 | 756.5 | ||
Intangible assets, net | 415.4 | 453.8 | ||
Other assets | 84.8 | 72.1 | ||
Total assets | 4,101.5 | 4,150.7 | ||
Liabilities and Stockholders' Equity: | ||||
Current liabilities | 1,264.9 | 1,156.8 | ||
Subordinated notes payable to parent | 0.7 | 0 | ||
Long-term debt | 1,390.1 | 1,655.6 | ||
Other liabilities | 156.8 | 161.1 | ||
Stockholders' equity | 1,289 | 1,177.2 | ||
Total liabilities and stockholders’ equity | $ 4,101.5 | $ 4,150.7 |
SUMMARIZED FINANCIAL INFORMAT90
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 30, 2016 | [1] | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | [4] | Jan. 01, 2016 | [5] | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | [8] | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | $ 1,894.6 | $ 1,956.3 | $ 1,955.7 | $ 1,816.2 | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 7,622.8 | $ 6,190.5 | $ 5,507 | ||||||||
Operating income | 81 | 87.3 | 56.7 | 60.3 | 65.8 | 78.2 | 64.5 | 59.3 | 285.3 | 267.8 | 310.1 | ||||||||
Income from continuing operations before income taxes | 58.6 | 65.4 | 36.1 | 37.4 | 36.6 | 56.9 | 48.3 | 41.1 | 197.5 | 182.9 | 249.6 | ||||||||
Net (loss) income from discontinued operations | 0 | 0.1 | (0.3) | (0.4) | (0.9) | (2.9) | 41.9 | (7.4) | (0.6) | 30.7 | 31.4 | ||||||||
Net income | $ 36.8 | $ 40.4 | $ 20.5 | $ 22.8 | $ 4.6 | $ 32.5 | $ 71.4 | $ 19.1 | 120.5 | 127.6 | 194.8 | ||||||||
Comprehensive income | 100.1 | 35.1 | 83.4 | ||||||||||||||||
Anixter Inc. [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Net sales | 7,622.8 | 6,190.5 | 5,507 | ||||||||||||||||
Operating income | 291.6 | 273.8 | 316 | ||||||||||||||||
Income from continuing operations before income taxes | 202.6 | 187.9 | 254.3 | ||||||||||||||||
Net (loss) income from discontinued operations | (0.6) | 30.7 | 31.4 | ||||||||||||||||
Net income | 123.8 | 130.7 | 197.7 | ||||||||||||||||
Comprehensive income | $ 103.4 | $ 38.2 | $ 86.3 | ||||||||||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | ||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | ||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | ||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | ||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | ||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. |
SELECTED QUARTERLY FINANCIAL 91
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) - Additional Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 30, 2016USD ($) | Sep. 30, 2016USD ($) | Jul. 01, 2016USD ($) | Apr. 01, 2016USD ($) | Jan. 01, 2016USD ($) | Oct. 02, 2015USD ($) | Jul. 03, 2015USD ($) | Apr. 03, 2015USD ($) | Apr. 04, 2014USD ($) | Dec. 30, 2016USD ($) | Jan. 01, 2016USD ($) | Jan. 02, 2015USD ($) | Feb. 15, 2017shareholder | |
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||
Amortization of intangible assets | $ 37.6 | $ 25.4 | $ 11.7 | ||||||||||
Foreign exchange devaluations | $ 2.9 | $ 0.7 | $ 8 | 0 | 3.6 | 8 | |||||||
Operating expenses | 1,262.7 | 1,072.7 | 929.2 | ||||||||||
Loss on extinguishment of debt | (0.9) | 0 | (0.9) | 0 | |||||||||
Write off of deferred debt financing costs | 0.3 | ||||||||||||
Subsequent Event [Member] | |||||||||||||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||
Number Of Stockholders | shareholder | 1,761 | ||||||||||||
Operating Income (Loss) [Member] | |||||||||||||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||
Amortization of intangible assets | $ 9 | $ 9.4 | $ 9.5 | $ 9.7 | 9.6 | $ 5 | $ 5.2 | $ 5.1 | 37.6 | 24.9 | 10.6 | ||
Acquisition and integration costs | $ 0.8 | 0.7 | 1.4 | $ 2.2 | 4.1 | $ 8.1 | 1 | 5.1 | 13.2 | $ 7.2 | |||
UK pension settlement | 9.6 | 0.4 | 9.6 | 0.4 | |||||||||
Latin America bad debt provision | 7.6 | 9.1 | 2.6 | 7.6 | 11.7 | ||||||||
Restructuring charges | $ 5.6 | $ 5.4 | 8.2 | ||||||||||
Restructuring charge adjustment | $ 0.2 | ||||||||||||
Operating expenses | 19.3 | ||||||||||||
Write-off of capitalized software | 3.1 | 3.1 | |||||||||||
Dilapidation provision | 1.7 | $ 1.7 | |||||||||||
Q2 2015 Restructuring Plan [Member] | Operating Income (Loss) [Member] | |||||||||||||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||
Restructuring charges | $ 5.3 | ||||||||||||
Q4 2015 Restructuring Plan [Member] | Operating Income (Loss) [Member] | |||||||||||||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||
Restructuring charges | $ 2.9 |
SELECTED QUARTERLY FINANCIAL 92
SELECTED QUARTERLY FINANCIAL DATA - Summary of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||
Dec. 30, 2016 | [1] | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | [4] | Jan. 01, 2016 | [5] | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | [8] | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |||
Quarterly Operating Results Unaudited [Line Items] | |||||||||||||||||||||
Net sales | $ 1,894.6 | $ 1,956.3 | $ 1,955.7 | $ 1,816.2 | $ 1,835.8 | $ 1,489.2 | $ 1,480.4 | $ 1,385.1 | $ 7,622.8 | $ 6,190.5 | $ 5,507 | ||||||||||
Cost of goods sold | 1,507.5 | 1,559.6 | 1,562.3 | 1,445.4 | 1,464.4 | 1,158.3 | 1,151.5 | 1,075.8 | 6,074.8 | 4,850 | 4,267.7 | ||||||||||
Operating income | 81 | 87.3 | 56.7 | 60.3 | 65.8 | 78.2 | 64.5 | 59.3 | 285.3 | 267.8 | 310.1 | ||||||||||
Income from continuing operations before income taxes | 58.6 | 65.4 | 36.1 | 37.4 | 36.6 | 56.9 | 48.3 | 41.1 | 197.5 | 182.9 | 249.6 | ||||||||||
Net income from continuing operations | 36.8 | 40.3 | 20.8 | 23.2 | 5.5 | 35.4 | 29.5 | 26.5 | 121.1 | 96.9 | 163.4 | ||||||||||
Net (loss) income from discontinued operations | 0 | 0.1 | (0.3) | (0.4) | (0.9) | (2.9) | 41.9 | (7.4) | (0.6) | 30.7 | 31.4 | ||||||||||
Net income | $ 36.8 | $ 40.4 | $ 20.5 | $ 22.8 | $ 4.6 | $ 32.5 | $ 71.4 | $ 19.1 | $ 120.5 | $ 127.6 | $ 194.8 | ||||||||||
Basic: | |||||||||||||||||||||
Continuing operations | $ 1.10 | $ 1.21 | $ 0.62 | $ 0.70 | $ 0.17 | $ 1.06 | $ 0.89 | $ 0.80 | $ 3.63 | $ 2.92 | $ 4.95 | ||||||||||
Discontinued operations | 0 | 0 | (0.01) | (0.01) | (0.03) | (0.09) | 1.26 | (0.22) | (0.02) | 0.92 | 0.95 | ||||||||||
Net income | 1.10 | 1.21 | 0.61 | 0.69 | 0.14 | 0.97 | 2.15 | 0.58 | 3.61 | 3.84 | 5.90 | ||||||||||
Diluted: | |||||||||||||||||||||
Continuing operations | 1.09 | 1.20 | 0.62 | 0.70 | 0.17 | 1.06 | 0.88 | 0.79 | 3.61 | 2.90 | 4.90 | ||||||||||
Discontinued operations | 0 | 0.01 | (0.01) | (0.02) | (0.03) | (0.09) | 1.26 | (0.22) | (0.02) | 0.91 | 0.94 | ||||||||||
Net income | 1.09 | 1.21 | 0.61 | 0.68 | 0.14 | 0.97 | 2.14 | 0.57 | 3.59 | 3.81 | $ 5.84 | ||||||||||
Common stock price (NYSE symbol: AXE): | |||||||||||||||||||||
Stock price high | 84.05 | 65.96 | 63.49 | 60.10 | 70.29 | 69.15 | 78.68 | 88.11 | |||||||||||||
Stock price low | 58.99 | 51.50 | 49.29 | 37.60 | 57.74 | 55.71 | 63.91 | 73.34 | |||||||||||||
Share price close | $ 81.05 | $ 64.50 | $ 54.09 | $ 52.48 | $ 60.39 | $ 57.73 | $ 64.16 | $ 76.75 | $ 81.05 | [1] | $ 60.39 | [5] | |||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | ||||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | ||||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | ||||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | ||||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | ||||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. |
Schedule 1 - STATEMENTS OF INCO
Schedule 1 - STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 30, 2016 | [1] | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | [4] | Jan. 01, 2016 | [5] | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | [8] | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Operating loss | $ 81 | $ 87.3 | $ 56.7 | $ 60.3 | $ 65.8 | $ 78.2 | $ 64.5 | $ 59.3 | $ 285.3 | $ 267.8 | $ 310.1 | ||||||||
Other income: | |||||||||||||||||||
Income tax expense | 76.4 | 86 | 86.2 | ||||||||||||||||
Net income | $ 36.8 | $ 40.4 | $ 20.5 | $ 22.8 | $ 4.6 | $ 32.5 | $ 71.4 | $ 19.1 | 120.5 | 127.6 | 194.8 | ||||||||
Comprehensive income | 100.1 | 35.1 | 83.4 | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||||||
Operating loss | (5) | (4.8) | (4.4) | ||||||||||||||||
Other income: | |||||||||||||||||||
Interest income, including intercompany | 5.7 | 5 | 4.8 | ||||||||||||||||
Income before income taxes and equity in earnings of subsidiaries | 0.7 | 0.2 | 0.4 | ||||||||||||||||
Income tax expense | 0.2 | 0.2 | 0.1 | ||||||||||||||||
Income before equity in earnings of subsidiaries | 0.5 | 0 | 0.3 | ||||||||||||||||
Equity in earnings of subsidiaries | 120 | 127.6 | 194.5 | ||||||||||||||||
Net income | 120.5 | 127.6 | 194.8 | ||||||||||||||||
Comprehensive income | $ 100.1 | $ 35.1 | $ 83.4 | ||||||||||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | ||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | ||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | ||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | ||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | ||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. |
Schedule 1 - BALANCE SHEETS (De
Schedule 1 - BALANCE SHEETS (Details) - USD ($) $ in Millions | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | Jan. 03, 2014 |
Current assets: | ||||
Cash and cash equivalents | $ 115.1 | $ 151.3 | $ 92 | $ 57.3 |
Other assets | 41.9 | 67.5 | ||
Total current assets | 2,688.5 | 2,727.8 | ||
Total assets | 4,093.6 | 4,142 | ||
Liabilities: | ||||
Other non-current liabilities | 158.7 | 163.5 | ||
Total liabilities | 2,801.4 | 2,962.6 | ||
Stockholders’ equity: | ||||
Common stock | 33.4 | 33.3 | ||
Capital surplus | 261.8 | 249.2 | ||
Retained earnings | 1,247.9 | 1,127.4 | ||
Accumulated other comprehensive loss | (250.9) | (230.5) | ||
Total stockholders’ equity | 1,292.2 | 1,179.4 | 1,133 | 1,027.4 |
Total liabilities and stockholders’ equity | 4,093.6 | 4,142 | ||
Parent Company [Member] | ||||
Current assets: | ||||
Cash and cash equivalents | 0.2 | 0.1 | $ 0 | $ 0.1 |
Other assets | 0.1 | 0.6 | ||
Total current assets | 0.3 | 0.7 | ||
Other assets (primarily investment in and advances to subsidiaries) | 1,294.2 | 1,181.8 | ||
Total assets | 1,294.5 | 1,182.5 | ||
Liabilities: | ||||
Accounts payable and accrued expenses, due currently | 0.5 | 0.7 | ||
Other non-current liabilities | 1.8 | 2.4 | ||
Total liabilities | 2.3 | 3.1 | ||
Stockholders’ equity: | ||||
Common stock | 33.4 | 33.3 | ||
Capital surplus | 261.8 | 249.2 | ||
Retained earnings | 1,247.9 | 1,127.4 | ||
Accumulated other comprehensive loss | (250.9) | (230.5) | ||
Total stockholders’ equity | 1,292.2 | 1,179.4 | ||
Total liabilities and stockholders’ equity | $ 1,294.5 | $ 1,182.5 |
Schedule 1 - STATEMENTS OF CASH
Schedule 1 - STATEMENTS OF CASH FLOWS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 30, 2016 | Sep. 30, 2016 | [2] | Jul. 01, 2016 | [3] | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | [6] | Jul. 03, 2015 | [7] | Apr. 03, 2015 | Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |||||
Operating activities: | |||||||||||||||||||
Net income | $ 36.8 | [1] | $ 40.4 | $ 20.5 | $ 22.8 | [4] | $ 4.6 | [5] | $ 32.5 | $ 71.4 | $ 19.1 | [8] | $ 120.5 | $ 127.6 | $ 194.8 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Stock-based compensation | 16.5 | 14.5 | 13.8 | ||||||||||||||||
Income tax expense | 76.4 | 86 | 86.2 | ||||||||||||||||
Net cash used in operating activities | 278.8 | 91.9 | 104.2 | ||||||||||||||||
Investing activities: | |||||||||||||||||||
Net cash used in investing activities | (37.3) | (479.3) | (458.7) | ||||||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from stock options exercised | 2.4 | 0 | 7.2 | ||||||||||||||||
Other, net | (0.6) | (1) | (1.7) | ||||||||||||||||
Net cash provided by financing activities | (273) | 449.8 | 385.7 | ||||||||||||||||
(Decrease) increase in cash and cash equivalents | (31.5) | 62.4 | 31.2 | ||||||||||||||||
Cash and cash equivalents at beginning of period | 151.3 | 92 | 151.3 | 92 | 57.3 | ||||||||||||||
Cash and cash equivalents at end of period | 115.1 | 151.3 | 115.1 | 151.3 | 92 | ||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Operating activities: | |||||||||||||||||||
Net income | 120.5 | 127.6 | 194.8 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Equity in earnings of subsidiaries | (120) | (127.6) | (194.5) | ||||||||||||||||
Dividend from subsidiary | 4.8 | 6.9 | 2.4 | ||||||||||||||||
Stock-based compensation | 2.3 | 2 | 1.9 | ||||||||||||||||
Income tax expense | 0.2 | 0.2 | 0.1 | ||||||||||||||||
Intercompany transactions | (9.3) | (9.3) | (9.8) | ||||||||||||||||
Changes in assets and liabilities, net | 0.5 | (0.1) | 0 | ||||||||||||||||
Net cash used in operating activities | (1) | (0.3) | (5.1) | ||||||||||||||||
Investing activities: | |||||||||||||||||||
Net cash used in investing activities | 0 | 0 | 0 | ||||||||||||||||
Financing activities: | |||||||||||||||||||
Proceeds from stock options exercised | 2.4 | 0 | 7.2 | ||||||||||||||||
Loans from (to) subsidiaries, net | (0.7) | 1.5 | (0.5) | ||||||||||||||||
Other, net | (0.6) | (1.1) | (1.7) | ||||||||||||||||
Net cash provided by financing activities | 1.1 | 0.4 | 5 | ||||||||||||||||
(Decrease) increase in cash and cash equivalents | 0.1 | 0.1 | (0.1) | ||||||||||||||||
Cash and cash equivalents at beginning of period | $ 0.1 | $ 0 | 0.1 | 0 | 0.1 | ||||||||||||||
Cash and cash equivalents at end of period | $ 0.2 | $ 0.1 | $ 0.2 | $ 0.1 | $ 0 | ||||||||||||||
[1] | In the fourth quarter of 2016, "Operating income" includes $9.0 million of intangible asset amortization expense and $0.8 million | ||||||||||||||||||
[2] | In the third quarter of 2016, "Operating income" includes $9.4 million of intangible asset amortization expense, $0.7 million of acquisition and integration costs, and a restructuring charge reversal of $0.2 million. | ||||||||||||||||||
[3] | In the second quarter of 2016, "Operating income" includes $9.5 million of intangible asset amortization expense, $9.6 million related to a settlement of pension obligations in the UK, $7.6 million of Latin America bad debt provision, $5.6 million of restructuring charges, and $1.4 million of acquisition and integration costs. | ||||||||||||||||||
[4] | In the first quarter of 2016, "Operating income" includes $9.7 million of intangible asset amortization expense and $2.2 million of acquisition and integration costs. | ||||||||||||||||||
[5] | In the fourth quarter of 2015, "Operating income" includes $9.6 million of intangible asset amortization expense, $9.1 million of assets write-off in Latin America, $2.9 million of restructuring charges, 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 Argentine 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 deferred financing costs on the early payment of debt, as described in Note 6. "Debt". | ||||||||||||||||||
[6] | In the third quarter of 2015, "Operating income" includes $5.0 million of intangible asset amortization expense and $8.1 million of acquisition and integration costs related to the Power Solutions acquisition. For further information, see Note 3. "Business Combinations". | ||||||||||||||||||
[7] | In the second quarter of 2015, "Operating income" includes $19.3 million of expense, which includes $5.2 million of intangible asset amortization expense, $5.3 million of restructuring charges, 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. | ||||||||||||||||||
[8] | In the first quarter of 2015, we recorded intangible asset amortization expense of $5.1 million and foreign exchange losses due to the devaluation of the Venezuelan bolivar of $0.7 million. |
Schedule 2-VALUATION AND QUALIF
Schedule 2-VALUATION AND QUALIFYING ACCOUNTS AND RESERVES (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 30, 2016 | Jan. 01, 2016 | Jan. 02, 2015 | |
Allowance for Doubtful Accounts [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of the period | $ 37.5 | $ 27 | $ 16.3 |
Charged to income | 20.1 | 25.8 | 11.4 |
Charged to other accounts | (3.8) | (5.1) | 12.2 |
Deductions | (10.2) | (10.2) | (12.9) |
Balance at end of the period | 43.6 | 37.5 | 27 |
Valuation Allowance of Deferred Tax Assets [Member] | |||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at beginning of the period | 24 | 11.9 | 21.9 |
Charged to income | 1.6 | 12.9 | (9.2) |
Charged to other accounts | (4.9) | (0.8) | (0.8) |
Deductions | 0 | 0 | 0 |
Balance at end of the period | $ 20.7 | $ 24 | $ 11.9 |