ANIXTER INTERNATIONAL INC, 10-K filed on 2/27/2012
Annual Report
Document and Entity Information (USD $)
12 Months Ended
Dec. 30, 2011
Feb. 17, 2012
Jul. 1, 2011
Document and Entity Information [Abstract]
 
 
 
Entity Registrant Name
ANIXTER INTERNATIONAL INC 
 
 
Entity Central Index Key
0000052795 
 
 
Document Type
10-K 
 
 
Document Period End Date
Dec. 30, 2011 
 
 
Amendment Flag
false 
 
 
Document Fiscal Year Focus
2011 
 
 
Document Fiscal Period Focus
FY 
 
 
Current Fiscal Year End Date
--12-30 
 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
Yes 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Entity Public Float
 
 
$ 1,937,888,733 
Entity Common Stock, Shares Outstanding (actual number)
 
33,059,077 
 
Consolidated Statements of Operations (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Net sales
$ 6,146.9 
$ 5,274.5 
$ 4,779.6 
Cost of goods sold
4,739.5 
4,066.9 
3,702.5 
Gross profit
1,407.4 
1,207.6 
1,077.1 
Operating expenses
1,044.6 
940.4 
892.3 
Goodwill impairment
 
 
100.0 
Operating income
362.8 
267.2 
84.8 
Other expense:
 
 
 
Interest expense
(50.1)
(53.6)
(66.1)
Net loss on retirement of debt
 
(31.9)
(1.1)
Other, net
(9.2)
(1.5)
(19.2)
Income (loss) from continuing operations before income taxes
303.5 
180.2 
(1.6)
Income tax expense
102.8 
70.7 
39.8 
Net income (loss) from continuing operations
200.7 
109.5 
(41.4)
(Loss) income from discontinued operations, net of tax
(12.5)
(1.0)
12.1 
Net income (loss)
$ 188.2 
$ 108.5 
$ (29.3)
Basic:
 
 
 
Continuing operations
$ 5.87 
$ 3.21 
$ (1.17)
Discontinued operations
$ (0.37)
$ (0.03)
$ 0.34 
Net income (loss)
$ 5.50 
$ 3.18 
$ (0.83)
Diluted:
 
 
 
Continuing operations
$ 5.71 
$ 3.08 
$ (1.17)
Discontinued operations
$ (0.35)
$ (0.03)
$ 0.34 
Net income (loss)
$ 5.36 
$ 3.05 
$ (0.83)
Basic weighted-average common shares outstanding
34.2 
34.1 
35.1 
Effect of dilutive securities:
 
 
 
Stock options and units
0.4 
0.5 
 
Diluted weighted-average common shares outstanding
35.1 
35.5 
35.1 
Dividend declared per common share
 
$ 3.25 
 
Convertible notes due 2033 [Member]
 
 
 
Effect of dilutive securities:
 
 
 
Convertible notes due
0.2 
0.9 
 
Convertible notes Due 2013 [Member]
 
 
 
Effect of dilutive securities:
 
 
 
Convertible notes due
0.3 
 
 
Consolidated Balance Sheets (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Current assets:
 
 
Cash and cash equivalents
$ 106.1 
$ 78.4 
Accounts receivable (Includes $524.6 and $407.8 at December 30, 2011 and December 31, 2010, respectively, associated with securitization facility)
1,151.0 
1,069.9 
Inventories
1,070.7 
870.3 
Deferred income taxes
37.7 
50.3 
Other current assets
37.4 
50.2 
Assets of discontinued operations
186.8 
Total current assets
2,402.9 
2,305.9 
Property and equipment, at cost
291.0 
278.8 
Accumulated depreciation
(202.7)
(195.6)
Net property and equipment
88.3 
83.2 
Goodwill
351.7 
355.3 
Other assets
191.1 
188.9 
Total assets
3,034.0 
2,933.3 
Current liabilities:
 
 
Accounts payable
706.5 
639.3 
Accrued expenses
317.4 
215.5 
Short-term debt (Includes $200.0 at December 31, 2010 associated with securitization facility)
3.0 
203.4 
Liabilities of discontinued operations
14.6 
Total current liabilities
1,026.9 
1,072.8 
Long-term debt (Includes $175.0 at December 30, 2011 associated with securitization facility)
806.8 
688.7 
Other liabilities
199.1 
161.0 
Total liabilities
2,032.8 
1,922.5 
Stockholders' equity:
 
 
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,228,049 and 34,323,061 shares issued and outstanding in 2011 and 2010, respectively
33.2 
34.3 
Capital surplus
196.5 
230.1 
Retained earnings
857.0 
774.2 
Accumulated other comprehensive loss:
 
 
Foreign currency translation
(0.5)
16.8 
Unrecognized pension liability
(85.3)
(43.9)
Unrealized loss on derivatives, net
0.3 
(0.7)
Total accumulated other comprehensive loss
(85.5)
(27.8)
Total stockholders' equity
1,001.2 
1,010.8 
Total liabilities and stockholders' equity
$ 3,034.0 
$ 2,933.3 
Consolidated Balance Sheets (Parenthetical) (USD $)
In Millions, except Share data, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Consolidated Balance Sheets [Abstract]
 
 
Carrying amount of assets, consolidated VIE
$ 524.6 
$ 407.8 
Carrying amount of liabilities, consolidated VIE
$ 175.0 
$ 200.0 
Common stock, par value
$ 1.00 
$ 1.00 
Common stock, shares authorized
100,000,000 
100,000,000 
Common stock, shares issued
33,228,049 
34,323,061 
Common stock, shares outstanding
33,228,049 
34,323,061 
Consolidated Statements of Cash Flows (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Operating activities:
 
 
 
Net income (loss)
$ 188.2 
$ 108.5 
$ (29.3)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Loss on retirement of debt
 
31.9 
1.1 
Loss on sale of business
22.6 
 
 
Goodwill impairment
 
 
100.0 
Depreciation
22.1 
22.5 
24.1 
Accretion of debt discount
17.1 
18.8 
21.1 
Stock-based compensation
11.1 
16.7 
15.2 
Amortization of intangible assets
11.4 
11.3 
13.0 
Deferred income taxes
7.2 
21.6 
(1.6)
Amortization of deferred financing costs
2.5 
2.7 
2.9 
Excess income tax benefit from employee stock plans
(6.9)
(5.4)
(0.7)
Changes in current assets and liabilities:
 
 
 
Accounts receivable
(98.3)
(136.0)
149.4 
Inventories
(200.4)
(63.6)
264.8 
Accounts payable and other current assets and liabilities, net
171.6 
166.1 
(107.3)
Other, net
(3.8)
0.1 
(11.8)
Net cash provided by operating activities
144.4 
195.2 
440.9 
Investing activities:
 
 
 
Net proceeds from sale of business
143.6 
 
 
Capital expenditures, net
(26.4)
(19.6)
(21.9)
Acquisition of businesses, net of cash acquired
1.6 
(36.4)
(1.8)
Net cash provided by (used in) investing activities
118.8 
(56.0)
(23.7)
Financing activities:
 
 
 
Proceeds from borrowings
1,023.7 
1,029.2 
316.5 
Repayment of borrowings
(1,073.1)
(778.0)
(716.7)
Purchases of common stock for treasury
(107.5)
(41.2)
(34.9)
Retirement of Convertible Notes due 2033 - debt component
(48.9)
(65.6)
(56.5)
Retirement of Convertible Notes due 2033 - equity component
(44.9)
(54.0)
(34.3)
Proceeds from stock options exercised
13.4 
8.7 
2.5 
Excess income tax benefit from employee stock plans
6.9 
5.4 
0.7 
Deferred financing costs
(4.2)
(0.3)
(6.7)
Payment of cash dividend
(0.9)
(111.0)
(0.3)
Retirement of Notes due 2014
 
(165.5)
(26.5)
Proceeds from issuance of Notes due 2014
 
 
185.2 
Net cash used in financing activities
(235.5)
(172.3)
(371.0)
Increase (decrease) in cash and cash equivalents
27.7 
(33.1)
46.2 
Cash and cash equivalents at beginning of period
78.4 
111.5 
65.3 
Cash and cash equivalents at end of period
$ 106.1 
$ 78.4 
$ 111.5 
Consolidated Statements of Stockholders' Equity (USD $)
In Millions, except Share data, unless otherwise specified
Comprehensive Income (Loss)
Common Stock
Capital Surplus
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Total
Beginning Balance at Jan. 02, 2009
$ 0 
$ 35.3 
$ 243.7 
$ 882.8 
$ (89.0)
$ 1,072.8 
Beginning Balance, Shares at Jan. 02, 2009
 
35,300,000 
 
 
 
 
Net income (loss)
(29.3)
 
 
(29.3)
 
(29.3)
Other comprehensive income:
 
 
 
 
 
 
Foreign currency translation
52.7 
 
 
 
52.7 
52.7 
Changes in unrealized pension cost, net of tax of $0.9, $3.1 and $21.4 for 2009, 2010 and 2011 respectively
(19.9)
 
 
 
(19.9)
(19.9)
Changes in fair market value of derivatives, net of tax of $0.4, $0.9 and $0.4 for 2009, 2010 and 2011 respectively
0.9 
 
 
 
0.9 
0.9 
Comprehensive income
4.4 
 
 
 
 
 
Purchase and retirement of treasury stock (see Note 9.)
 
(1.0)
 
(33.9)
 
(34.9)
Purchase and retirement of treasury stock, shares (see Note 9.)
 
(1,000,000)
 
 
 
(1,000,000)
Equity component of repurchased convertible debt (see Note 5.)
 
 
(34.3)
 
 
(34.3)
Stock-based compensation
 
 
15.2 
 
 
15.2 
Issuance of common stock and related tax benefits
 
0.4 
0.5 
 
 
0.9 
Issuance of common stock and related tax benefits, shares
 
400,000 
 
 
 
 
Ending Balance at Jan. 01, 2010
34.7 
225.1 
819.6 
(55.3)
1,024.1 
Ending Balance, Shares at Jan. 01, 2010
 
34,700,000 
 
 
 
 
Net income (loss)
108.5 
 
 
108.5 
 
108.5 
Other comprehensive income:
 
 
 
 
 
 
Foreign currency translation
13.4 
 
 
 
13.4 
13.4 
Changes in unrealized pension cost, net of tax of $0.9, $3.1 and $21.4 for 2009, 2010 and 2011 respectively
12.9 
 
 
 
12.9 
12.9 
Changes in fair market value of derivatives, net of tax of $0.4, $0.9 and $0.4 for 2009, 2010 and 2011 respectively
1.2 
 
 
 
1.2 
1.2 
Comprehensive income
136.0 
 
 
 
 
 
Dividend declared on common stock ($3.25 per share)
 
 
 
(113.7)
 
(113.7)
Purchase and retirement of treasury stock (see Note 9.)
 
(1.0)
 
(40.2)
 
(41.2)
Purchase and retirement of treasury stock, shares (see Note 9.)
 
(1,000,000)
 
 
 
(1,000,000)
Equity component of repurchased convertible debt, net of tax of $33.6 and $6.2 for 2010 and 2011 respectively (see Note 5.)
 
 
(20.4)
 
 
(20.4)
Stock-based compensation
 
 
16.7 
 
 
16.7 
Issuance of common stock and related tax benefits
 
0.6 
8.7 
 
 
9.3 
Issuance of common stock and related tax benefits, shares
 
600,000 
 
 
 
 
Ending Balance at Dec. 31, 2010
34.3 
230.1 
774.2 
(27.8)
1,010.8 
Ending Balance, Shares at Dec. 31, 2010
 
34,300,000 
 
 
 
 
Net income (loss)
188.2 
 
 
188.2 
 
188.2 
Other comprehensive income:
 
 
 
 
 
 
Foreign currency translation
(18.3)
 
 
 
(18.3)
(18.3)
Foreign currency translation related to sale of business recognized in net income
 
 
 
 
1.0 
1.0 
Changes in unrealized pension cost, net of tax of $0.9, $3.1 and $21.4 for 2009, 2010 and 2011 respectively
(41.4)
 
 
 
(41.4)
(41.4)
Changes in fair market value of derivatives, net of tax of $0.4, $0.9 and $0.4 for 2009, 2010 and 2011 respectively
1.0 
 
 
 
1.0 
1.0 
Comprehensive income
129.5 
 
 
 
 
 
Dividend forfeited on common stock
 
 
 
0.1 
 
0.1 
Purchase and retirement of treasury stock (see Note 9.)
 
(2.0)
 
(105.5)
 
(107.5)
Purchase and retirement of treasury stock, shares (see Note 9.)
 
(2,000,000)
 
 
 
(2,000,000)
Equity component of repurchased convertible debt, net of tax of $33.6 and $6.2 for 2010 and 2011 respectively (see Note 5.)
 
 
(38.7)
 
 
(38.7)
Reversal of tax benefit on equity component of convertible debt repurchases (see Note 7.)
 
 
(18.7)
 
 
(18.7)
Stock-based compensation
 
 
11.1 
 
 
11.1 
Issuance of common stock and related tax benefits
 
0.9 
12.7 
 
 
13.6 
Issuance of common stock and related tax benefits, shares
 
900,000 
 
 
 
 
Ending Balance at Dec. 30, 2011
$ 0 
$ 33.2 
$ 196.5 
$ 857.0 
$ (85.5)
$ 1,001.2 
Ending Balance, Shares at Dec. 30, 2011
 
33,200,000 
 
 
 
 
Consolidated Statements of Stockholders' Equity (Parenthetical) (USD $)
In Millions, except Per Share data, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Unrealized pension cost, tax effect
$ 21.4 
$ 3.1 
$ 0.9 
Fair market value of derivatives, tax effect
0.4 
0.9 
0.4 
Dividend declared per common share
 
$ 3.25 
 
Equity component of repurchased convertible debt, tax effect
6.2 
33.6 
 
Capital Surplus
 
 
 
Equity component of repurchased convertible debt, tax effect
6.2 
33.6 
 
Retained Earnings
 
 
 
Dividend declared per common share
 
$ 3.25 
 
Accumulated Other Comprehensive Income (Loss)
 
 
 
Unrealized pension cost, tax effect
21.4 
3.1 
0.9 
Fair market value of derivatives, tax effect
0.4 
0.9 
0.4 
Comprehensive Income (Loss)
 
 
 
Unrealized pension cost, tax effect
21.4 
3.1 
0.9 
Fair market value of derivatives, tax effect
$ 0.4 
$ 0.9 
$ 0.4 
Summary of Significant Accounting Policies
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization: Anixter International Inc. ("the Company"), formerly known as Itel Corporation, which was incorporated in Delaware in 1967, is engaged in the distribution of communications and security products, electrical wire and cable products, fasteners and small parts through Anixter Inc. and its subsidiaries (collectively "Anixter").

Basis of presentation: The consolidated financial statements include the accounts of Anixter International Inc. and its subsidiaries. The Company's fiscal year ends on the Friday nearest December 31 and included 52 weeks in 2011, 2010 and 2009. Certain amounts have been reclassified to conform to the current year presentation. Also, as a result of the divestiture of a business, described in Note 4. "Discontinued Operations," the Company began recording the results of the divested business as discontinued operations in 2011 and all prior periods have been revised to reflect this classification.

Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and cash equivalents: Cash equivalents consist of short-term, highly liquid investments that mature within three months or less. Such investments are stated at cost, which approximates fair value.

           Receivables and allowance for doubtful accounts: The Company carries its accounts receivable at their face amounts less an allowance for doubtful accounts which was $19.5 million and $23.7 million at the end of 2011 and 2010, respectively. On a regular basis, the Company evaluates its accounts receivable and establishes 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. During 2011, the Company reached favorable settlements of several customer bankruptcy and disputes which were fully reserved at the beginning of 2011. The provision for doubtful accounts was $8.0 million, $12.8 million and $11.7 million in 2011, 2010 and 2009, 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 finished goods, are stated at the lower of cost or market. Cost is determined using the average-cost method. The Company has agreements with some of its vendors that provide a right to return products. This right is typically limited to a small percentage of the Company's total purchases from that vendor. Such rights provide that the Company can return slow-moving product and the vendor will replace it with faster-moving product chosen by the Company. Some vendor agreements contain price protection provisions that require the manufacturer to issue a credit in an amount sufficient to reduce the Company's current inventory carrying cost down to the manufacturer's current price. The Company considers these agreements in determining its reserve for obsolescence.

At December 30, 2011 and December 31, 2010, the Company reported inventory of $1,070.7 million and $870.3 million, respectively (net of inventory reserves of $61.2 million and $66.8 million, respectively). Each quarter the Company reviews for excess inventories and makes 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; and

 

   

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.

 

Goodwill: On an annual basis, the Company tests for goodwill impairment using a two-step process, unless there is a triggering event, in which case a test would be performed at the time that such triggering event occurs. The first step is to identify a potential impairment by comparing the fair value of a reporting unit with its carrying amount. For all periods presented, the Company's reporting units are consistent with its operating segments of North America, Europe, Latin America and Asia Pacific. The estimates of fair value of a reporting unit are determined using the income approach based on a discounted cash flow analysis. A discounted cash flow analysis requires the Company to make various judgmental assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on management's forecast of each reporting unit. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units from the perspective of market participants. The Company also reviews market multiple information to corroborate the fair value conclusions recorded through the aforementioned income approach. If step one 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 fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination.

The Company performed its 2011 annual impairment analysis during the third quarter of 2011 and concluded that no impairment existed. The Company expects the carrying amount of remaining goodwill to be fully recoverable.

Due to business and economic conditions that existed in 2009, the Company concluded that there were impairment indicators for the North America, Europe and Asia Pacific reporting units that required an interim impairment analysis be performed under Generally Accepted Accounting Principles ("U.S. GAAP") during the second fiscal quarter of that year.

 

In the first step of the impairment analysis, the Company performed valuation analyses utilizing the income approach to determine the fair value of its reporting units. The Company also considered the market approach as described in U.S. GAAP. Under the income approach, the Company determined the fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the reporting unit and the rate of return an outside investor would expect to earn. The inputs used for the income approach were significant unobservable inputs, or Level 3 inputs, in the fair value hierarchy described in recently issued accounting guidance on fair value measurements. Estimated future cash flows were based on the Company's internal projection models, industry projections and other assumptions deemed reasonable by management as those that would be made by a market participant. Based on the results of the Company's assessment in step one, it was determined that the carrying value of the Europe reporting unit exceeded its estimated fair value while North America and Asia Pacific's fair value exceeded the carrying value.

Therefore, the Company performed a second step of the impairment test to estimate the implied fair value of goodwill in Europe. In the second step of the impairment analysis, the Company determined the implied fair value of goodwill for the Europe reporting unit by allocating the fair value of the reporting unit to all of Europe's assets and liabilities, as if the reporting unit had been acquired in a business combination and the price paid to acquire it was the fair value. The analysis indicated that there would be an implied value attributable to goodwill of $12.1 million in the Europe reporting unit and accordingly, in the second quarter of 2009, the Company recorded a non-cash impairment charge related to the write-off of the remaining goodwill of $100.0 million associated with its Europe reporting unit.

 

Convertible Debt: The Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement). The liability and equity components are accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate. The bifurcation of the component of debt, classification of that component in equity and the accretion of the resulting discount on the debt is recognized as part of interest expense in the Company's Consolidated Statements of Operations. These provisions impact the accounting associated with the Company's $300 million convertible notes due 2013 ("Notes due 2013") and the Company's 3.25% zero coupon convertible notes due 2033 ("Notes due 2033") which are described further in Note 5. "Debt". The Notes due 2033 were retired in the third quarter of 2011.

The following table provides additional information about the Company's convertible debt instruments that are subject to these accounting requirements:

 

                         
     December 30, 2011      December 31, 2010  
     Notes due 2013      Notes due 2013      Notes due 2033  
($ and shares in millions, except conversion prices)                     

Carrying amount of the equity component

   $ 53.3       $ 53.3       $ (45.7 )  

Principal amount of the liability component

   $ 300.0       $ 300.0       $ 100.2   

Unamortized discount of liability component (a)

   $ (19.7 )      $ (35.8 )      $ (51.7 )  

Net carrying amount of liability component

   $ 280.3       $ 264.2       $ 48.5   

Remaining amortization period of discount (a)

     14 months         (c )        (c )  

Conversion price

   $ 59.78         (c )        (c )  

Number of shares to be issued upon conversion

     5.0         (c )        (c )  

If-converted value exceeds principal amount (b)

   $ —           (c )        (c )  

 

(a) The Notes due 2013 and Notes due 2033 were issued in February of 2007 and July of 2003, respectively. The Notes due 2033 were retired in the third quarter of 2011. For convertible debt accounting purposes, the expected life of the Notes due 2013 and the Notes due 2033 were determined to be six years and four years from the issuance date, respectively. As such, the Company is amortizing the unamortized discount through interest expense through February of 2013 for the Notes due 2013.
(b) If-converted value amounts are for disclosure purposes only. The Notes due 2013 are convertible when the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is more than $77.71. Based on the Company's stock prices during the year, the Notes due 2013 have not been convertible during 2011 and 2010.
(c) Data not required for comparative purposes.

 

The fair value of the liability component related to the Notes due 2013 was initially calculated based on a discount rate of 7.1%, representing the Company's nonconvertible debt borrowing rate at issuance for debt instruments with similar terms and characteristics. For accounting purposes, the expected life for a similar instrument was six years which was used to develop this nonconvertible debt borrowing rate. Interest cost relates to both the contractual interest coupon and amortization of the discount on the liability component. Non-cash interest cost recognized for the Notes due 2013 was $16.1 million, $15.1 million and $14.1 million for fiscal years 2011, 2010 and 2009, respectively. Cash interest cost recognized for the Notes due 2013 was $3.0 million in 2011, 2010 and 2009.

The fair value of the liability component related to the Notes due 2033 was initially calculated based on a discount rate of 6.1%, representing the Company's nonconvertible debt borrowing rate at issuance for debt instruments with similar terms and characteristics. For accounting purposes, the expected life for a similar instrument was four years which was used to develop this nonconvertible debt borrowing rate. Therefore, the amount of interest expense associated with the initial discount was fully recognized as of the end of 2007 (i.e., four years from issuance of these notes). Interest cost recognized for the Notes due 2033 was $0.5 million, $2.9 million and $5.2 million for fiscal years 2011, 2010 and 2009, respectively, based on the zero-coupon rate of 3.25% associated with the Notes due 2033.

 

Intangible assets: Intangible assets, included in other assets on the consolidated balance sheets, primarily consist of customer relationships that are being amortized over periods ranging from 8 to 15 years. The Company continually evaluates whether events or circumstances have occurred that would indicate the remaining estimated useful lives of its intangible assets warrant revision or that the remaining balance of such assets may not be recoverable. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. At December 30, 2011 and December 31, 2010, the Company's gross carrying amount of intangible assets subject to amortization was $130.4 million and $130.6 million, respectively. Accumulated amortization was $60.5 million and $50.4 million at December 30, 2011 and December 31, 2010, respectively. Intangible amortization expense related to all of the Company's net intangible assets of $69.9 million at December 30, 2011 is expected to be approximately $10.1 million per year for the next five years.

 

Foreign currency translation: The Company's investments in several subsidiaries are recorded in currencies other than the U.S. dollar. As these foreign currency denominated investments are translated at the end of each period during consolidation using period-end exchange rates, fluctuations of exchange rates between the foreign currency and the U.S. dollar increase or decrease the value of those investments. These fluctuations and the results of operations for foreign subsidiaries, where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the average exchange rates during the year, 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 Stockholders' Equity, "Foreign currency translation," which is a component of accumulated other comprehensive income (loss). In addition, as the Company's 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.

 

          Several of the Company's 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. That 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 Operations. The Company recognized $7.1 million, $2.5 million and $23.2 million in net foreign exchange losses in 2011, 2010 and 2009, respectively. See "Other, net" discussion herein for further information regarding these losses. 

 

The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company's strategy is to negotiate terms for its derivatives and other financial instruments to be perfectly 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). The Company's counterparties to its foreign currency forward contracts have investment-grade credit ratings. The Company expects the creditworthiness of its counterparties to remain intact through the term of the transactions. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist which could affect the value of the derivatives.

The Company does not hedge 100% of its foreign currency-denominated accounts and results of the 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, 2011 and December 31, 2010, 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 Operations offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At December 30, 2011 and December 31, 2010, the notional amount of the foreign currency forward contracts outstanding was approximately $161.3 million and $223.0 million, respectively. The fair value of the Company's foreign currency forward contracts was not significant at December 30, 2011 or December 31, 2010.

The following activity relates to foreign exchange gains and losses reflected in "Other, net" in the Company's Consolidated Statements of Operations (in millions):

 

                         
     Years Ended  
Income (Loss)    December 30,
2011
    December 31,
2010
    January 1,
2010
 

Remeasurement of multicurrency balances

   $ (0.6   $ (1.7   $ (11.2

Revaluation of foreign currency forward contracts

     (4.0     1.2        (8.1

Hedge costs

     (2.5     (2.0     (3.9
    

 

 

   

 

 

   

 

 

 

Total foreign exchange loss

   $ (7.1   $ (2.5   $ (23.2
    

 

 

   

 

 

   

 

 

 

 

Interest rate agreements: The Company uses interest rate swaps to reduce its exposure to fluctuations in interest rates. The objective of the currently outstanding interest rate swap (cash flow hedge) is to convert variable interest to fixed interest associated with forecasted interest payments resulting from revolving borrowings in the U.K. and are designated as hedging instruments. The Company does not enter into interest rate swaps for speculative purposes. Changes in the value of the interest rate swap is expected to be highly effective in offsetting the changes attributable to fluctuations in the variable rates. The Company's counterparty to its interest rate swap contract has an investment-grade credit rating. The Company expects the creditworthiness of its counterparty to remain intact through the term of the transaction. When entered into, the financial instrument is designated as a hedge of underlying exposures (interest payments associated with the U.K. borrowings) attributable to changes in the respective benchmark interest rate.

 

As of December 30, 2011, the Company had one interest rate swap agreement outstanding with a notional amount of GBP 15 million. The GBP swap agreement obligates the Company to pay a fixed rate through July 2012. The fair value of the Company's interest rate swap is determined by means of a mathematical model that calculates the present value of the anticipated cash flows from the transaction using mid-market prices and other economic data and assumptions, or by means of pricing indications from one or more other dealers selected at the discretion of the respective banks. These inputs would be considered Level 2 in the fair value hierarchy described in recently issued accounting guidance on fair value measurements. At December 30, 2011, the interest rate swap was revalued at current interest rates, with the change in valuation reflected directly in "Accumulated Other Comprehensive Loss" in the Company's Consolidated Balance Sheets. The fair market value of this agreement, which is the estimated exit price that the Company would pay to cancel the agreement, was not significant at December 30, 2011.

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 Operations were $12.1 million, $10.0 million and $9.9 million in 2011, 2010 and 2009, respectively. The majority of the Company's advertising and sales promotion costs are recouped through various cooperative advertising programs with vendors.

Shipping and handling fees and costs: The Company includes 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 Operations, which were $108.4 million, $94.6 million and $84.8 million for the years ended 2011, 2010 and 2009, respectively.

          Stock-based compensation: In accordance with U.S. accounting rules, the Company measures the cost of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method. Compensation costs for the plans have been determined based on the fair value at the grant date using the Black-Scholes option pricing model and amortized on a straight-line basis over the respective vesting period representing the requisite service period.

Other, net: The following represents the components of "Other, net" as reflected in the Company's Consolidated Statements of Operations for the fiscal years 2011, 2010 and 2009:

 

                         
     Years Ended  

(In millions)

   December 30,
2011
    December 31,
2010
    January 1,
2010
 

Other, net loss:

                

Foreign exchange

   $ (7.1   $ (2.5   $ (23.2

Cash surrender value of life insurance policies

     (0.9     3.0        3.4   

Settlement of interest rate swaps

     —          —          (2.1

Other

     (1.2     (2.0     2.7   
    

 

 

   

 

 

   

 

 

 
     $ (9.2   $ (1.5   $ (19.2
    

 

 

   

 

 

   

 

 

 

 

Due to the sharp increase of the U.S. dollar in 2011 against certain foreign currencies, primarily in the Emerging Markets where there are few cost-effective means of hedging, the Company recorded a foreign exchange loss of $7.1 million in 2011. In 2010, the Company recognized a foreign exchange gain of $2.1 million associated with the remeasurement of Venezuela's bolivar-denominated monetary assets on the Venezuelan balance sheet at the parallel exchange rate. The Company also recorded a foreign exchange loss of $13.8 million in 2009 due to the repatriation of cash from Venezuela and the remeasurement of monetary items on the Venezuelan balance sheet at the parallel exchange rate. The Company recorded other foreign exchange losses of $4.6 million and $9.4 million in 2010 and 2009, respectively. Further, the combined effect of declines in both the equity and bond markets resulted in a $0.9 million decline in the cash surrender value of Company owned life insurance policies associated with the Company sponsored deferred compensation program in 2011. This compares to a $3.0 million and $3.4 million increase in the cash surrender value of life insurance policies in 2010 and 2009, respectively. In 2009, the Company recorded a loss of $2.1 million associated with the cancellation of interest rate hedging contracts resulting from the repayment of the related borrowings. In 2009, the Company also recorded other income of $3.4 million related to the expiration of liabilities associated with a prior asset sale.

 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. The Company maintains 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. The Company recognizes 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 (loss) per share: Diluted net income (loss) 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.

In 2011 and 2010, 0.4 million and 0.5 million additional shares, respectively, related to stock options and stock units were included in the computation of diluted earnings per share because the effect of those common stock equivalents were dilutive during these periods. The Company excludes antidilutive stock options and units from the calculation of weighted-average shares for diluted earnings per share. The Company excluded 0.4 million, 0.4 million, and 0.5 million antidilutive stock options and units for 2011, 2010 and 2009, respectively

Due to the Company's obligation to settle the outstanding par value of the Notes due 2013 and Notes due 2033 in cash upon conversion, the Company is not required to include any shares underlying the convertible notes in its diluted weighted average shares outstanding until the average stock price per share for the period exceeds the conversion price of the respective instruments. Although the Notes due 2033 were retired during 2011, they were dilutive during the period as well as the corresponding period in 2010. At such time that the average stock price per share for the period exceeds the conversion price of the convertible notes, only the number of shares that would be potentially issuable (under the treasury stock method of accounting for share dilution) would be included in the dilutive share calculation, which is based upon the amount by which the average stock price exceeds the conversion price.

As a result of the conversion value exceeding the average accreted principal value during 2011 and 2010, the Company included 0.2 million and 0.9 million additional shares, respectively, related to the Notes due 2033 in the diluted weighted-average common shares outstanding. The Company's average stock price for 2009 did not exceed the average accreted principal value and, therefore, the Notes due 2033 were antidilutive for this period.

As a result of the Company's average stock price exceeding the conversion price during 2011, 0.3 million additional shares related to the Notes due 2013 were included in the diluted weighted-average common shares outstanding. The Company's average stock price for 2010 and 2009 did not exceed the conversion price and, therefore, the Notes due 2013 were antidilutive for these periods.

 

Accrued Expenses
ACCRUED EXPENSES

NOTE 2. ACCRUED EXPENSES

Accrued expenses consisted of the following:

 

     December 30,
2011
     December 31,
2010
 
     (In millions)  

Salaries and fringe benefits

   $         102.5       $           92.5   

Other accrued expenses

     214.9         123.0   
  

 

 

    

 

 

 

Total accrued expenses

   $ 317.4       $ 215.5   
  

 

 

    

 

 

 

Accrued expenses increased to $317.4 million at the end of fiscal 2011 from $215.5 million at the end of fiscal 2010 primarily due to an increase in income taxes payable and higher variable costs, including employee incentives, due to the growth in sales during fiscal 2011.

Restructuring Charge
RESTRUCTURING CHARGE

NOTE 3. RESTRUCTURING CHARGE

In order to improve the profitability of the Company's European segment, management approved a facility consolidation and headcount reduction plan during the first quarter of 2011 that will eliminate a number of European facilities and reduce operating costs. As a result, the Company recorded a pre-tax charge of $5.3 million which is included in "Operating Expenses" in the Company's Consolidated Statement of Operations for the fiscal year ended December 30, 2011. The charge includes certain exit costs and employee severance charges which are expected to be fully paid by the end of fiscal 2013. Additional costs of approximately $0.8 million related to moving expenses are expected to be recorded when incurred.

In 2009, the Company undertook expense reduction actions that resulted in $5.7 million of severance costs primarily related to staffing reductions needed to re-align the Company's business in response to current market conditions. The majority of these costs were incurred in North America while the balance of the expenses was primarily incurred in Europe. The 2009 obligations for these expense reduction actions were fully paid by the end of 2010.

Discontinued Operations
DISCONTINUED OPERATIONS

NOTE 4. DISCONTINUED OPERATIONS

Discontinued Operations: In August of 2011, the Company's board of directors approved the sale of the Company's Aerospace Hardware business ("Aerospace") and the transaction closed on August 26, 2011. Although the Company's historical performance in Aerospace has been strong, customer and supplier consolidation has resulted in a business model distinctly different than the Company's overall strategy. The transaction will enable the Company to focus its attention and resources on its core operations and strategic initiatives. Beginning in the third quarter of 2011, the Company began to record the results of this business as "Discontinued Operations" and all prior periods have been revised to reflect this classification. North America and Europe segment information which is presented in Note 10. "Business Segments" has also been revised from the prior year presentation to reflect the discontinued operations.

The sales price of $155.0 million resulted in net proceeds of $143.6 million after adjusting for working capital adjustments and amounts paid by the Company for legal and advisory fees. The Company reported a net loss from discontinued operations in 2011 of $12.5 million, which included a net loss on the sale of $21.0 million primarily due to the write off of goodwill of $19.0 million.

An additional $30.0 million will be paid to the Company if certain financial targets are achieved on or before December 31, 2013. The contingent payment of $30.0 million was not recorded, nor was it included in the calculation of the loss on the sale of Aerospace as it is the Company's policy to recognize contingent receivables in connection with a divestiture on the date the contingent receivable is realized.

The following represents the components of the results from Discontinued Operations as reflected in the Company's Consolidated Statement of Operations (in millions):

 

     Years Ended  
     December 30,
2011 (a)
    December 31,
2010
    January 1,
2010
 

Net sales

   $         123.2      $         197.6      $         202.8   

Operating income (loss)

     13.4        (1.0     18.6   

(Loss) income from discontinued operations before tax

     (9.3     (0.9     18.8   

Income tax expense

     3.2        0.1        6.7   

(Loss) income from discontinued operations, net of tax

     (12.5     (1.0     12.1   

 

(a) Includes the results through the date of the divestiture on August 26, 2011, including the pre-tax loss on sale of business of $22.6 million ($21.0 million, net of tax).

As reflected on the Company's Consolidated Balance Sheet as of December 31, 2010, the Company has reclassified the assets and liabilities of Aerospace to discontinued operations as follows (in millions):

 

     December 31,
2010
 

Assets of discontinued operations:

  

Accounts receivable

   $         29.4   

Inventories

     132.4   

Goodwill

     19.0   

Other assets(a)

     6.0   
  

 

 

 

Total assets of discontinued operations

   $ 186.8   
  

 

 

 

Liabilities of discontinued operations:

  

Accounts payable

   $ 9.4   

Accrued expenses(a)

     3.4   

Other liabilities

     1.8   
  

 

 

 

Total liabilities of discontinued operations

   $ 14.6   
  

 

 

 

(a) Certain assets and liabilities, primarily related to a legal accrual, were not reclassified to discontinued operations as they were retained by the Company. See Note 6. "Commitments and Contingencies" for further information.

Debt
DEBT

NOTE 5. DEBT

Debt is summarized below:

 

                 
(In millions)    December 30,
2011
     December 31,
2010
 

Long-term debt:

                 

Convertible senior notes due 2013

   $ 280.3       $ 264.2   

Senior notes due 2015

     200.0         200.0   

Accounts receivable securitization facility

     175.0         —     

Revolving lines of credit and other

     120.4         145.4   

Senior notes due 2014

     31.1         30.6   

Convertible notes due 2033

     —           48.5   
    

 

 

    

 

 

 

Total long-term debt

     806.8         688.7   

Short-term debt

     3.0         203.4   
    

 

 

    

 

 

 

Total debt

   $ 809.8       $ 892.1   
    

 

 

    

 

 

 

Certain debt agreements entered into by the Company's operating subsidiaries contain various restrictions, including restrictions on payments to the Company. These restrictions have not had, nor are expected to have, an adverse impact on the Company's ability to meet its cash obligations. The Company has guaranteed substantially all of the debt of its subsidiaries.

Aggregate annual maturities of debt at December 30, 2011 were as follows: 2012 — $3.0 million; 2013 — $455.8 million; 2014 — $31.1 million; 2015 — $200.0 million and 2016 — $119.9 million. The estimated fair value of the Company's debt at December 30, 2011 and December 31, 2010 was $881.6 million and $1,021.6 million, respectively, based on public quotations and current market rates. Interest paid in 2011, 2010 and 2009 was $31.6 million, $36.4 million and $37.2 million, respectively. The Company's average borrowings outstanding were $988.0 million and $845.0 million for the fiscal years ending December 30, 2011 and December 31, 2010, respectively. The Company's weighted-average cost of borrowings was 5.1%, 6.3% and 6.7% for the years ended December 30, 2011 and December 31, 2010 and January 1, 2010, respectively.

Retirement of Debt

During 2011, the Company retired its Notes due 2033 as a result of repurchases and bondholder conversions. The Company paid approximately $93.8 million in cash and $14.9 million was settled in stock. Available borrowings under the Company's long-term revolving credit facility were used to retire these notes. In connection with the retirement of debt, the Company reduced the accreted value of debt by $48.9 million and recorded a gross reduction to stockholders' equity of $44.9 million.

During 2010, the Company's primary operating subsidiary, Anixter Inc., retired $133.7 million of accreted value of its 10% Senior Notes due 2014 ("Notes due 2014") for $165.5 million. Available cash and other borrowings were used to retire these notes. The Company also retired $67.0 million of accreted value of its Notes due 2033 for $119.6 million. Long-term revolving credit borrowings were used to repurchase these notes. In connection with these repurchases, the Company reduced the accreted value of debt by $200.7 million and recorded a gross reduction to stockholders' equity of $54.0 million.

During 2009, Anixter Inc. retired $23.6 million of accreted value of its Notes due 2014 for $27.7 million ($1.2 million of which was accrued at year-end 2009). Available cash was used to retire these notes. The Company also retired $60.1 million of accreted value of its Notes due 2033 for $90.8 million. Long-term revolving credit borrowings were used to repurchase these notes. In connection with these repurchases, the Company reduced the accreted value of debt by $83.7 million and recorded a gross reduction to stockholders' equity of $34.3 million.

The retirement of debt in 2011 did not have a significant impact on the Company's Consolidated Statement of Operations. As a result of the retirement of debt in 2010 and 2009, the Company recognized a pre-tax loss of $31.9 million and $1.1 million, respectively.

Revolving Lines of Credit

At the end of fiscal 2011, the Company had approximately $313.0 million in available, committed, unused credit lines with financial institutions that have investment-grade credit ratings. As such, the Company expects to have access to this availability based on its assessment of the viability of the associated financial institutions which are party to these agreements. Long-term borrowings under the committed credit facilities totaled $120.4 million and $145.4 million at December 30, 2011 and December 31, 2010, respectively.

In the second quarter of 2011, Anixter Inc. refinanced its senior unsecured revolving credit facility. At December 30, 2011, long-term borrowings under this agreement, which is guaranteed by the Company, were $111.0 million as compared to $131.1 million of outstanding long-term borrowings at the end of fiscal 2010. The following are the key terms to the revolving credit agreement:

 

 

The size of the credit facility is $400 million (or the equivalent in Euros) and matures in April 2016.

 

 

The pricing grid is a leverage-based pricing grid. Based on Anixter Inc.'s current leverage ratio, the applicable margin is Libor plus 200 basis points.

 

 

As of the end of 2011, the consolidated fixed charge coverage ratio (as defined in the revolving credit agreement) requires a minimum coverage 2.50 times. As of December 30, 2011, the consolidated fixed charge coverage ratio was 4.51.

 

 

The consolidated leverage ratio (as defined in the revolving credit agreement) limits the maximum leverage allowed to 3.25. As of December 30, 2011, the consolidated leverage ratio was 1.35.

 

 

Anixter Inc. will be permitted to direct funds to the Company for payment of dividends and share repurchases to a maximum of $175 million plus 50 percent of Anixter Inc.'s cumulative net income from the effective date of the new agreement. As of December 30, 2011, Anixter Inc. has the ability to distribute $152.7 million of funds to the Company.

 

 

Anixter Inc. will be allowed to prepay, purchase or redeem indebtedness of the Company, provided that its proforma leverage ratio (as defined in the agreement) is less than or equal to 2.75 to 1.00 and that its unrestricted domestic cash balance plus availability under the revolving credit agreement and the accounts receivable securitization facility is equal to or greater than $175 million.

The Company is in compliance with all of the covenant ratios and believes that there is adequate margin between the covenant ratios and the actual ratios given the current trends of the business. As of December 30, 2011, the total availability of all revolving lines of credit at Anixter Inc. would be permitted to be borrowed.

Excluding the primary revolving credit facility at December 30, 2011 and December 31, 2010, certain subsidiaries had long-term borrowings under other bank revolving lines of credit and miscellaneous facilities of $9.4 million and $14.3 million, respectively, which mature beyond twelve months of the Company's fiscal year end December 30, 2011.

Senior Notes Due 2014

In March 2009, the Company's primary operating subsidiary, Anixter Inc., issued $200 million in principal of its Notes due 2014 which were priced at a discount to par that resulted in a yield to maturity of 12%. The Notes due 2014 pay interest semiannually at a rate of 10% per annum and mature on March 15, 2014. In addition, before March 15, 2012, Anixter Inc. may redeem up to 35% of the Notes due 2014 at the redemption price of 110% of their principal amount plus accrued interest, using the net cash proceeds from public sales of the Company's stock. Net proceeds from this offering were approximately $180.4 million after deducting discounts, commissions and expenses of $4.8 million which are being amortized through March 2014. At December 30, 2011 and December 31, 2010, the Notes due 2014 outstanding were $31.1 million and $30.6 million, respectively. The Company fully and unconditionally guarantees the Notes due 2014, which are unsecured obligations of Anixter Inc.

Convertible Debt

Convertible Senior Notes Due 2013

In February 2007, the Company completed a private placement of $300.0 million principal amount of Notes due 2013. In May 2007, the Company registered the Notes due 2013 and shares of the Company's common stock issuable upon conversion of the Notes due 2013 for resale by certain selling security holders. The Notes due 2013 are structurally subordinated to the indebtedness of Anixter.

The Notes due 2013 pay interest semiannually at a rate of 1.00% per annum. The Notes due 2013 are convertible, at the holders' option, at a conversion rate of 16.727 shares per $1,000 principal amount of Notes due 2013 (for an aggregate of 5.0 million shares), equivalent to a conversion price of $59.78 per share. The Company has sufficient authorized shares to settle such conversion.

In periods during which the Notes due 2013 are convertible, any conversion will be settled in cash up to the principal amount, and any excess conversion value will be delivered, at the Company's election in cash, common stock or a combination of cash and common stock. Based on the Company's stock price at the end of fiscal 2011, the Notes due 2013 are not currently convertible.

In connection with the issuance of the Notes due 2013, the Company purchased a call option that covers 5.0 million shares of its common stock, subject to customary anti-dilution adjustments. The purchased call option currently has an exercise price of $59.78 per share.

Concurrently with purchasing the call option, the Company sold to the counterparty a warrant to purchase shares of its common stock, subject to customary anti-dilution adjustments. The sold warrant currently has an exercise price of $77.98 and may not be exercised prior to the maturity of the notes. The shares related to the warrant are 5.0 million shares.

Holders of the Notes due 2013 may convert them prior to the close of business on the business day before the maturity date based on the applicable conversion rate only under the following circumstances:

Conversion Based on Common Stock Price

Holders may convert during any fiscal quarter and only during any fiscal quarter, if the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is more than 130% of the conversion price per share, or $77.71. The conversion price per share is equal to $1,000 divided by the then applicable conversion rate (currently 16.727 shares per $1,000 principal amount).

Conversion Based on Trading Price of Notes

Holders may convert during the five business day period after any period of five consecutive trading days in which the trading price per $1,000 principal amount of Notes due 2013 for each trading day of that period was less than 98% of the product of the closing price of the Company's common stock for each trading day of that period and the then applicable conversion rate.

Conversion Upon Certain Distributions

If the Company elects to:

 

   

distribute, to all holders of the Company's common stock, any rights entitling them to purchase, for a period expiring within 45 days of distribution, common stock, or securities convertible into common stock, at less than, or having a conversion price per share less than, the closing price of the Company's common stock; or

 

   

distribute, to all holders of the Company's common stock, assets, cash, debt securities or rights to purchase the Company's securities, which distribution has a per share value exceeding 15% of the closing price of such common stock,

holders may surrender their Notes due 2013 for conversion at any time until the earlier of the close of business on the business day prior to the ex-dividend date or the Company's announcement that such distribution will not take place.

Conversion Upon a Fundamental Change

Holders may surrender Notes due 2013 for conversion at any time beginning 15 days before the anticipated effective date of a fundamental change and until the Company makes any required purchase of the Notes due 2013 as a result of the fundamental change. A "fundamental change" means the occurrence of a change of control or a termination of trading of the Company's common stock. Certain change of control events may give rise to a make whole premium.

Conversion at Maturity

Holders may surrender their Notes due 2013 for conversion at any time beginning on January 15, 2013 and ending at the close of business on the business day immediately preceding the maturity date.

The "conversion rate" is 16.727 shares of the Company's common stock, subject to certain customary anti-dilution adjustments. These adjustments consist of adjustments for:

 

   

stock dividends and distributions, share splits and share combinations,

 

   

the issuance of any rights to all holders of the Company's common stock to purchase shares of such stock at an issuance price of less than the closing price of such stock, exercisable within 45 days of issuance,

 

   

the distribution of stock, debt or other assets, to all holders of the Company's common stock, other than distributions covered above, and

 

   

issuer tender offers at a premium to the closing price of the Company's common stock.

The "conversion value" of the Notes due 2013 means the average of the daily conversion values, as defined below, for each of the 20 consecutive trading days of the conversion reference period. The "daily conversion value" means, with respect to any trading day, the product of (1) the applicable conversion rate and (2) the volume weighted-average price per share of the Company's common stock on such trading day.

The "conversion reference period" means:

 

   

for Notes due 2013 that are converted during the one month period prior to maturity date of the notes, the 20 consecutive trading days preceding and ending on the maturity date, subject to any extension due to a market disruption event, and

 

   

in all other instances, the 20 consecutive trading days beginning on the third trading day following the conversion date.

The "conversion date" with respect to the Notes due 2013 means the date on which the holder of the Notes due 2013 has complied with all the requirements under the indenture to convert such Notes due 2013.

Convertible Notes Due 2033

The Company retired its Notes due 2033 in 2011. At the end of 2010, the Notes due 2033 had an aggregate principal amount at maturity of $100.2 million and a book value of $48.5 million. Although the Notes due 2033 were convertible at the end of 2010 and the holders could have required the Company to purchase their notes on July 7, 2011, they were classified as long-term as the Company had the intent and ability to refinance the accreted value under existing long-term financing agreements.

Senior Notes Due 2015

Anixter Inc. also has the $200.0 million 5.95% Senior Notes due 2015 ("Notes due 2015"), which are fully and unconditionally guaranteed by the Company. Interest of 5.95% on the Notes due 2015 is payable semi-annually on March 1 and September 1 of each year.

Other Borrowings

As of December 30, 2011 and December 31, 2010, the Company's short-term debt outstanding was $3.0 million and $203.4 million, respectively. At December 31, 2010, short-term debt consisted primarily of the funding related to the Anixter Receivables Corporation ("ARC") facility which was amended in the second quarter of 2011 by the Anixter Inc. The following key changes were made to the program:

 

   

The size of the program increased from $200 million to $275 million.

 

   

The liquidity termination date of the program will be May 2013 (formerly the termination date was during July 2011).

 

 

   

The renewed program carries an all-in drawn funding cost of Commercial Paper ("CP") plus 90 basis points (previously CP plus 115 basis points).

 

   

Unused capacity fees decreased from a range of 57.5 to 60 basis points to a range of 45 to 55 basis points depending on utilization.

All other material terms and conditions remain unchanged. As a result of the change in maturity, the $175.0 million outstanding at December 30, 2011 is classified as long-term on the Company's Consolidated Balance Sheet at December 30, 2011 (formerly short-term debt as of December 31, 2010).

Under Anixter's accounts receivable securitization program, the Company sells, on an ongoing basis without recourse, a majority of the accounts receivable originating in the United States to ARC, which is considered a wholly-owned, bankruptcy-remote variable interest entity ("VIE"). The Company has the authority to direct the activities of the VIE and, as a result, the Company has concluded that it maintains control of the VIE and is the primary beneficiary as defined by accounting guidance and, therefore, consolidates the account balances of ARC. As of December 30, 2011 and December 31, 2010, $524.6 million and $407.8 million of the Company's receivables were sold to ARC, respectively. ARC in turn sells an interest in these receivables to a financial institution for proceeds up to $275.0 million. The assets of ARC are not available to Anixter until all obligations of ARC are satisfied in the event of bankruptcy or insolvency proceedings.

Fair Value of Debt

The fair value of the Company's 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.

The Company's fixed-rate debt primarily consists of nonconvertible and convertible debt as follows:

 

   

Nonconvertible fixed-rate debt consisting of the Notes due 2015 and Notes due 2014.

 

   

Convertible fixed-rate debt.

At December 30, 2011, the Company's carrying value of its fixed-rate debt was $511.4 million as compared to $543.3 million at December 31, 2010. The estimated fair market value of the Company's fixed-rate debt at December 30, 2011 and December 31, 2010 was $583.2 million and $672.8 million, respectively. The decline in the carrying value and estimated fair market value is primarily due to the retirement of the Notes due 2033 during 2011. As of December 30, 2011 and December 31, 2010, the Company's carrying value of its variable-rate debt was $298.4 million and $348.8 million, respectively, which approximates the estimated fair market value.

Commitments and Contingencies
COMMITMENTS AND CONTINGENCIES

NOTE 6. COMMITMENTS AND CONTINGENCIES

Substantially all of the Company's office and warehouse facilities and equipment 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 by the Company contain renewal options.

Minimum lease commitments under operating leases at December 30, 2011 are as follows (in millions):

 

         

2012

   $ 61.8   

2013

     49.0   

2014

     39.6   

2015

     28.5   

2016

     20.4   

2017 and thereafter

     43.7   
    

 

 

 

Total

   $ 243.0   
    

 

 

 

Total rental expense was $82.1 million, $76.4 million and $78.2 million in 2011, 2010 and 2009, respectively. Aggregate future minimum rentals to be received under non-cancelable subleases at December 30, 2011 were $1.7 million.

In April 2008, the Company voluntarily disclosed to the U.S. Departments of Treasury and Commerce that one of its foreign subsidiaries may have violated U.S. export control laws and regulations in connection with re-exports of goods to prohibited parties or destinations including Cuba and Syria, countries identified by the State Department as state sponsors of terrorism. The Company performed a thorough review of its export and re-export transactions and did not identify any other potentially significant violations. The Company determined and took appropriate corrective actions. The Company submitted the results of its review and its corrective action plan to the applicable U.S. government agencies. On November 1, 2011, the Company received a warning letter from the U.S. Commerce Department and on December 20, 2011, the Company received a cautionary letter from the U.S. Treasury Department stating that each department was officially closing the matter without fines, penalties or other consequences to the Company.

In May 2009, Raytheon Co. filed for arbitration against one of the Company's subsidiaries, Anixter Inc., alleging that it had supplied non-conforming parts to Raytheon. Raytheon sought damages of approximately $26 million. The arbitration hearing concluded in October 2010 and the arbitration panel rendered its decision at the end of 2010. The arbitration panel entered an interim award against the Company in the amount of $20.8 million. In April 2011, the arbitration panel entered a final award that reiterated the $20.8 million liability and added additional liability of $1.5 million in favor of Raytheon for certain of its attorneys' fees and costs in the arbitration proceeding. In the fourth quarter of 2010, the Company recorded a pre-tax charge of $20.0 million which approximates the expected cost of the award after consideration of insurance proceeds, fees, costs and interest on the award at 10% per annum until paid. As a result of the Company's sale of its Aerospace business in the third quarter of 2011 the charge related to this matter was reclassified to discontinued operations in the Company's Consolidated Statement of Operations for the year ended December 31, 2010. Assets and liabilities related to the Raytheon matter were retained by the Company and were not reclassified to assets and liabilities of discontinued operations. In June 2011, the Company filed a motion to vacate the arbitration award in the Superior Court of Maricopa County, Arizona. In November 2011, the court denied the Company's motion and confirmed the arbitration award in full. During the fourth quarter of 2011, the Company recorded an additional $2.5 million in discontinued operations to cover expected interest associated with further appeal proceedings. In February 2012, the Company filed a notice of appeal, appealing the judgment confirming the arbitration award to the Arizona Court of Appeals. See Note 13. "Subsequent Event" for further information.

In September 2009, the Garden City Employees' Retirement System filed a purported class action under the federal securities laws in the United States District Court for the Northern District of Illinois against the Company, its current and former chief executive officers and its former chief financial officer. In November 2009, the Court entered an order appointing the Indiana Laborers Pension Fund as lead plaintiff and appointing lead plaintiff's counsel. In January 2010, the lead plaintiff filed an amended complaint. The amended complaint principally alleges that the Company made misleading statements during 2008 regarding certain aspects of its financial performance and outlook. The amended complaint seeks unspecified damages on behalf of persons who purchased the common stock of the Company between January 29 and October 20, 2008. In March 2011, the Court dismissed the complaint but allowed the lead plaintiff the opportunity to re-plead its complaint. The plaintiff did so in April 2011. The Company and the other defendants intend to continue to defend themselves vigorously against the allegations. Based on facts known to management at this time, the Company cannot estimate the amount of loss, if any, and, therefore, has not made any accrual for this matter in these financial statements.

In October 2009, the Company disclosed to the U.S. Government that it may have violated laws and regulations restricting entertainment of government employees. The Inspector General of the relevant federal agency is investigating the disclosure and the Company is cooperating in the investigation. Civil and or criminal penalties could be assessed against the Company in connection with any violations that are determined to have occurred. In January 2012, the Company was informed by the Department of Justice, Civil Division, that it is investigating this matter and that a qui tam action has been filed under the False Claims Act, which remains under seal pursuant to statute. The Department of Justice has received an order partially lifting the seal to permit the government to discuss the matter with the Company; however, the government has instructed Anixter that it must maintain the confidentiality of the matter. Based on facts known to management at this time, the Company cannot estimate the amount of loss, if any, and, therefore, has not made any accrual for this matter in these financial statements.

From time to time, in the ordinary course of business, the Company and its subsidiaries become involved as plaintiffs or defendants in various other legal proceedings not enumerated above. The claims and counterclaims in such other legal proceedings, including those for punitive damages, individually in certain cases and in the aggregate, involve amounts that may be material. However, it is the opinion of the Company's management, based on the advice of its counsel, that the ultimate disposition of those proceedings will not be material. As of December 30, 2011, the Company does 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, the Company's 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

NOTE 7. INCOME TAXES

Taxable Income: Domestic income from continuing operations before income taxes was $204.5 million, $113.8 million and $79.6 million for 2011, 2010 and 2009, respectively. Foreign income from continuing operations before income taxes (and before goodwill impairment loss) was $99.0 million, $66.4 million and $18.8 million for fiscal years 2011, 2010 and 2009, respectively.

 

Tax Provisions and Reconciliation to the Statutory Rate: The components of the Company's tax expense on continuing operations and the reconciliation to the statutory federal rate are identified below.

Income tax expense (benefit) was comprised of (in millions):

 

     Years Ended  
     December 30,
2011
    December 31,
2010
     January 1,
2010
 

Current:

       

Foreign

   $         28.3      $         21.0       $         18.2   

State

     8.1        4.0         (0.4

Federal

     59.2        24.1         23.6   
  

 

 

   

 

 

    

 

 

 
     95.6        49.1         41.4   

Deferred:

       

Foreign

     (14.9     0.4         (5.9

State

     1.7        2.3         0.2   

Federal

     20.4        18.9         4.1   
  

 

 

   

 

 

    

 

 

 
     7.2        21.6         (1.6
  

 

 

   

 

 

    

 

 

 

Income tax expense

   $ 102.8      $ 70.7       $ 39.8   
  

 

 

   

 

 

    

 

 

 

Reconciliations of income tax expense to the statutory corporate federal tax rate of 35% were as follows (in millions):

 

     Years Ended  
     December 30,
2011
    December
31, 2010
     January 1,
2010
 

Statutory tax expense

   $         106.2      $         63.1       $         (0.6

Increase (reduction) in taxes resulting from:

       

Nondeductible goodwill impairment loss

                    35.0   

State income taxes, net

     6.5        4.0         2.1   

Foreign tax effects

     (1.4     1.7         8.6   

Changes in valuation allowances(a)

     (11.3             (4.5

Other, net

     2.8        1.9         (0.8
  

 

 

   

 

 

    

 

 

 

Income tax expense

   $ 102.8      $ 70.7       $ 39.8   
  

 

 

   

 

 

    

 

 

 

(a) In 2011, the Company recorded a tax benefit of $11.3 million, net, related to changes in tax valuation allowances primarily in certain foreign jurisdictions. Approximately $7.4 million, net, of the tax benefit was a correction of an error from prior periods to reverse valuation allowances for deferred tax assets in certain foreign jurisdictions where sufficient evidence existed to support the realization of these deferred tax assets at a more likely than not level. The Company has determined the error is not material to previously issued financial statements, and the correction of these errors is not material to the results of operations for the fiscal year ended December 30, 2011.

 

Tax Payments: The Company made net payments for income taxes in 2011, 2010 and 2009 of $41.9 million, $61.9 million and $56.2 million, respectively.

Net Operating Losses: The Company and its U.S. subsidiaries file their federal income tax return on a consolidated basis. The Company had no tax credit carryforwards for U.S. federal income tax purposes.

At December 30, 2011, various foreign subsidiaries of the Company had aggregate cumulative net operating losses ("NOL") carryforwards for foreign income tax purposes of approximately $110.0 million, which are subject to various provisions of each respective country. Approximately $98.0 million of the NOL carryforwards may be carried forward indefinitely. The remaining NOL carryforwards expire at various times between 2012 and 2021.

Undistributed Earnings: The undistributed earnings of the Company's foreign subsidiaries amounted to approximately $432.5 million at December 30, 2011. The Company considers 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, the Company 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, 2011, according to the foreign laws and treaties in place at that time, estimated U.S. federal income tax of approximately $50.0 million and various foreign jurisdiction withholding taxes of approximately $26.7 million would be payable upon the remittance of all earnings at December 30, 2011.

Deferred Income Taxes: Significant components of the Company's deferred tax assets and (liabilities) were as follows (in millions):

 

     December 30,
2011
    December 31,
2010
 

Property, equipment, intangibles and other

   $         (21.5   $         (21.6

Accreted interest (Notes due 2033)

            (6.0
  

 

 

   

 

 

 

Gross deferred tax liabilities

     (21.5     (27.6

Deferred compensation and other postretirement benefits

     75.3        57.7   

Inventory reserves

     12.5        31.5   

Foreign NOL carryforwards and other

     33.7        21.8   

Allowance for doubtful accounts

     5.8        8.3   

Other

     16.6        10.8   
  

 

 

   

 

 

 

Gross deferred tax assets

     143.9        130.1   
  

 

 

   

 

 

 

Deferred tax assets, net of deferred tax liabilities

     122.4        102.5   

Valuation allowance

     (20.3     (18.8
  

 

 

   

 

 

 

Net deferred tax assets

   $ 102.1      $ 83.7   
  

 

 

   

 

 

 

Net current deferred tax assets

   $ 37.7      $ 50.3   

Net non-current deferred tax assets

     64.4        33.4   
  

 

 

   

 

 

 

Net deferred tax assets

   $ 102.1      $ 83.7   
  

 

 

   

 

 

 

 

Uncertain Tax Positions and Jurisdictions Subject to Examinations: A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal 2009, 2010 and 2011 is as follows:

 

     (in millions)  

Balance at January 2, 2009

   $         5.8   

Additions for tax positions of prior years

     4.0   

Reductions for tax positions of prior years

     (5.2
  

 

 

 

Balance at January 1, 2010

   $ 4.6   

Additions for tax positions of prior years

     1.9   

Reductions for tax positions of prior years

     (2.5
  

 

 

 

Balance at December 31, 2010

   $ 4.0   

Additions for tax positions of prior years

     20.2   

Reductions for tax positions of prior years

     (1.3
  

 

 

 

Balance at December 30, 2011

   $ 22.9   
  

 

 

 

In 2009 and 2010, the Company recorded adjustments to stockholders' equity of $18.7 million for tax benefits attributable to deductions claimed in 2009 and 2010 tax returns related to financing activities. In 2011, the Company determined that such deductions do not meet the more likely than not standard for recognition of the related tax benefits and recorded $18.7 million of accrued taxes payable with an offsetting entry to stockholders' equity. This balance has been included in the table above for uncertain tax positions. The Company has determined that the error is not material to previously issued financial statements and the correction of the error is not material to the results of operations for the fiscal year ended December 30, 2011.

Interest and penalties related to taxes were minimal in 2011 and $1.4 million in 2010. Interest and penalties are reflected in the "Other, net" line in the Consolidated Statement of Operations. The Company has accrued $1.3 million and $1.9 million at December 30, 2011 and December 31, 2010, respectively, for the payment of interest and penalties.

The Company estimates that of the unrecognized tax benefit balance of $24.2 million, all of which would affect the effective tax rate, $3.8 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 $24.2 million cover a range of issues, in particular, certain financing-related activities of the Company, intercompany charges and withholding taxes, and involve numerous different taxing jurisdictions.

Only the returns for fiscal tax years 2008 and later remain subject to examination by the Internal Revenue Service ("IRS") in the United States, which is the most significant tax jurisdiction for the Company. An IRS examination of fiscal tax years 2008 and 2009 was completed in January 2012. For most states, fiscal tax years 2008 and later remain subject to examination, although for some states the period subject to examination ranges back to as early as fiscal tax year 2003. In Canada, the fiscal tax years 2007 and later are still subject to examination, while in the United Kingdom, the fiscal tax years 2008 and later remain subject to examination.

Pension Plans, Post-Retirement Benefits and Other Benefits
PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS

NOTE 8. PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS

The Company has various defined benefit and defined contribution pension plans. The defined benefit plans of the Company are the Anixter Inc. Pension Plan, Executive Benefit Plan and Supplemental Executive Retirement Plan (SERP) (together the "Domestic Plans") and various pension plans covering employees of foreign subsidiaries ("Foreign Plans"). The majority of the Company's 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 and Foreign Plans. The Company's 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.

The assets 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, Anixter seeks to achieve a high level of total investment return consistent with a prudent level of portfolio risk. The risk tolerance of Anixter indicates an above average ability to accept risk relative to that of a typical defined benefit pension plan as the duration of the projected benefit obligation is longer than the average company. The risk preference indicates a willingness to accept some increases in short-term volatility in order to maximize long-term returns. However, the duration of the fixed income portion of the Domestic Plan approximates the duration of the projected benefit obligation to reduce the effect of changes in discount rates that are used to measure the funded status of the Plan. The measurement date for all plans of the Company is equal to the fiscal year end.

The Domestic Plans' and Foreign Plans' asset mixes as of December 30, 2011 and December 31, 2010 and the Company's asset allocation guidelines for such plans are summarized as follows:

 

                                         
     Domestic Plans  
    

December 

30,

    December 31,     Allocation Guidelines  
     2011     2010     Min     Target     Max  

Large capitalization U.S. stocks

     32.8     33.2     20     30     40

Small capitalization U.S. stocks

     16.8        17.3        15        20        25   

International stocks

     16.3        16.6        15        20        25   
    

 

 

   

 

 

           

 

 

         

Total equity securities

     65.9        67.1                70           

Fixed income investments

     29.9        30.3        25        30        35   

Other investments

     4.2        2.6        —          —          —     
    

 

 

   

 

 

           

 

 

         
       100.0     100.0             100        
    

 

 

   

 

 

           

 

 

         
                         
     Foreign Plans  
     December  30,
2011
    December  31,
2010
    Allocation Guidelines  
         Target  

Equity securities

     43.3     46.2     49

Fixed income investments

     48.7        44.9        43   

Other investments

     8.0        8.9        8   
    

 

 

   

 

 

   

 

 

 
       100.0     100.0     100.0
    

 

 

   

 

 

   

 

 

 

The pension committees meet regularly to assess investment performance and re-allocate 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, the Company periodically rebalances its asset portfolios to be in line with its allocation guidelines.

The North American investment policy guidelines are 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;

 

   

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 domestic equity funds are limited as to the percentage that can be invested in international securities;

 

   

The international stock fund is limited to readily marketable securities; and

 

   

The fixed income fund has a duration that approximates the duration of the projected benefit obligations.

The investment policies for the European 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; and

 

   

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. The Company uses 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 and generally does not change annually. The weighted-average expected rate of return on plan assets used in the determination of net periodic pension cost for 2011 is 6.91%.

 

Included in accumulated other comprehensive income as of December 30, 2011 are the deferred prior service cost, deferred net transition obligation and deferred net actuarial loss of $0.7 million, $0.1 million and $84.5 million, respectively. Included in accumulated other comprehensive income as of December 31, 2010 are the deferred prior service cost, deferred net transition obligation and deferred net actuarial loss of $3.3 million, $0.1 million and $40.5 million, respectively. During the year ended December 30, 2011, the Company reduced accumulated other comprehensive income by $41.4 million (net of tax of $21.4 million), $43.9 million of which related to deferred actuarial losses (net of tax of $23.0 million) offset by a reduction of deferred prior service costs of $2.5 million (net of tax of $1.6 million). Included in these reductions to accumulated other comprehensive income during 2011 were actuarial losses and prior service costs of $2.2 million and $0.4 million, respectively, as a result of being recognized as components of net periodic pension cost. Over the next fiscal year, the Company expects to amortize actuarial losses and prior service costs of $9.0 million and $0.1 million, respectively, from accumulated other comprehensive income into net periodic pension cost. Amortization of the transition obligation over the next fiscal year will be insignificant.

The following represents a reconciliation of the funded status of the Company's pension plans from the beginning of fiscal 2010 to the end of fiscal 2011:

 

                                                 
     Pension Benefits  
     Domestic     Foreign     Total  
     2011     2010     2011     2010     2011     2010  
     (In millions)  

Change in projected benefit obligation:

                                                

Beginning balance

   $ 225.4      $ 197.9      $ 174.6      $ 175.9      $ 400.0      $ 373.8   

Service cost

     7.0        6.1        5.3        4.7        12.3        10.8   

Interest cost

     12.0        11.6        9.7        9.9        21.7        21.5   

Plan participants contributions

     —          —          0.4        0.3        0.4        0.3   

Actuarial loss (gain)

     49.7        15.3        11.1        (6.1     60.8        9.2   

Benefits paid

     (6.1     (6.1     (6.3     (5.6     (12.4     (11.7

Foreign currency exchange rate changes

     —          —          (2.0     (4.5     (2.0     (4.5

Other

     (0.3     0.6        —          —          (0.3     0.6   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 287.7      $ 225.4      $ 192.8      $ 174.6      $ 480.5      $ 400.0   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Change in plan assets at fair value:

                                                

Beginning balance

   $ 148.0      $ 127.3      $ 165.8      $ 149.5      $ 313.8      $ 276.8   

Actual (loss) return on plan assets

     5.7        19.9        9.1        15.0        14.8        34.9   

Company contributions

     10.4        6.9        9.8        10.0        20.2        16.9   

Plan participants contributions

     —          —          0.4        0.3        0.4        0.3   

Benefits paid

     (6.1     (6.1     (6.3     (5.6     (12.4     (11.7

Foreign currency exchange rate changes

     —          —          (1.7     (3.4     (1.7     (3.4
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 158.0      $ 148.0      $ 177.1      $ 165.8      $ 335.1      $ 313.8   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of funded status:

                                                

Projected benefit obligation

   $ (287.7   $ (225.4   $ (192.8   $ (174.6   $ (480.5   $ (400.0

Plan assets at fair value

     158.0        148.0        177.1        165.8        335.1        313.8   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funded status

   $ (129.7   $ (77.4   $ (15.7   $ (8.8   $ (145.4   $ (86.2
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Included in the 2011 and 2010 funded status is accrued benefit cost of approximately $17.9 million and $13.0 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations.    

Noncurrent asset

   $ —        $ —        $ 5.3      $ 2.0      $ 5.3      $ 2.0   

Current liability

     (0.8     (0.6     —          —          (0.8     (0.6

Noncurrent liability

     (128.9     (76.8     (21.0     (10.8     (149.9     (87.6
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funded status

   $ (129.7   $ (77.4   $ (15.7   $ (8.8   $ (145.4   $ (86.2
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average assumptions used for measurement of the projected benefit obligation:

 

Discount rate

     4.37     5.53     4.84     5.43     4.56     5.49

Salary growth rate

     3.90     3.91     3.13     3.57     3.57     3.76

The following represents the funded components of net periodic pension cost as reflected in the Company's Consolidated Statements of Operations and the weighted-average assumptions used to measure net periodic cost for the years ended December 30, 2011, December 31, 2010 and January 1, 2010:

 

                                                                         
     Pension Benefits  
     Domestic     Foreign     Total  
     2011     2010     2009     2011     2010     2009     2011     2010     2009  
     (In millions)  

Components of net periodic cost:

                                                                        

Service cost

   $ 7.0      $ 6.1      $ 6.6      $ 5.3      $ 4.7      $ 4.0      $ 12.3      $ 10.8      $ 10.6   

Interest cost

     12.0        11.6        11.0        9.7        9.9        8.6        21.7        21.5        19.6   

Expected return on plan assets

     (11.8     (10.8     (9.9     (10.1     (8.9     (7.9     (21.9     (19.7     (17.8

Net amortization

     3.4        3.5        3.7        0.3        0.6        (0.1     3.7        4.1        3.6   

Curtailment loss

     0.6        —          —          —          —          —          0.6        —          —     
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic cost

   $ 11.2      $ 10.4      $ 11.4      $ 5.2      $ 6.3      $ 4.6      $ 16.4      $ 16.7      $ 16.0   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average assumption used to measure net periodic cost:

 

Discount rate

     5.53     5.99     5.90     5.43     5.77     6.45     5.49     5.88     6.12

Expected return on plan assets

     8.00     8.50     8.50     5.93     6.02     6.02     6.91     7.16     7.26

Salary growth rate

     3.91     3.91     4.43     3.57     3.59     3.66     3.76     3.79     4.05

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 2011, 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 the Company's pension assets valued by Level 1 inputs are comprised of Domestic equity and fixed income securities 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 the Company's pension assets valued by Level 2 inputs are comprised of common/collective/pool funds (i.e., mutual funds) which are not exchange traded. These assets are valued at their Net Asset Values ("NAV") and considered observable inputs, or Level 2.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. The Company does not have any pension assets valued by Level 3 inputs.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Plan's assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset.

 

Disclosures concerning assets measured at fair value on a recurring basis at the end of each fiscal year, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by the Company are as follows:

 

                                                                         
     Pension Assets  
     Domestic      Foreign      Total  
     Level 1      Level 2      Total      Level 1      Level 2      Total      Level 1      Level 2      Total  
     (In millions)  

Asset Categories:

                                                                                

Cash and short-term investments

   $ 6.6       $ —         $ 6.6       $ 1.4       $ —         $ 1.4       $ 8.0       $ —         $ 8.0   

Equity securities:

                                                                                

Domestic

     78.4         —           78.4         0.1         30.7         30.8         78.5         30.7         109.2   

International

     —           25.7         25.7         —           45.8         45.8         —           71.5         71.5   

Fixed income securities:

                                                                                

Domestic

     31.7         1.0         32.7         0.5         65.6         66.1         32.2         66.6         98.8   

Corporate bonds

     —           14.6         14.6         0.4         19.9         20.3         0.4         34.5         34.9   

Insurance funds

     —           —           —           —           12.2         12.2         —           12.2         12.2   

Other

     —           —           —           0.1         0.4         0.5         0.1         0.4         0.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 116.7       $ 41.3       $ 158.0       $ 2.5       $ 174.6       $ 177.1       $ 119.2       $ 215.9       $ 335.1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

The Company's estimated future benefits payments are as follows at the end of 2011:

 

                         
     Estimated Future Benefit
Payments
 
     Domestic      Foreign      Total  
     (In millions)  

2012

   $ 8.8       $ 5.7       $ 14.5   

2013

     8.1         5.7         13.8   

2014

     8.8         6.3         15.1   

2015

     9.4         6.2         15.6   

2016

     10.1         6.5         16.6   

2017-2021

     63.9         37.4         101.3   
    

 

 

    

 

 

    

 

 

 

Total

   $ 109.1       $ 67.8       $ 176.9   
    

 

 

    

 

 

    

 

 

 

The accumulated benefit obligation in 2011 and 2010 was $251.7 million and $202.0 million, respectively, for the Domestic Plans and $161.4 million and $148.5 million, respectively, for the Foreign Plans. The Company had six plans in 2011 and seven plans in 2010 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 $256.3 million and $209.4 million for 2011 and 2010, respectively, and aggregate fair value of plan assets was $161.8 million and $154.5 million for 2011 and 2010, respectively.

The Company currently estimates that it will make contributions of approximately $14.2 million to its Domestic Plans and $9.2 million to its Foreign Plans in 2012.

Non-union domestic employees of the Company hired on or after June 1, 2004 earn a benefit under a personal retirement account (hypothetical account balance). Each year, a participant's account receives a credit equal to 2.0% of the participant's salary (2.5% if the participant's years of service at August 1 of the plan year are five years or more). Beginning January 1, 2011, active participants with three years of service became fully vested in their hypothetical personal retirement account (previously, participants vested after five 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 in the Domestic Plan and is based on the 10-year Treasury note rate as of the last business day of December.

Anixter Inc. adopted the Anixter Inc. Employee Savings Plan effective January 1, 1994. The Plan is a defined-contribution plan covering all non-union domestic employees of the Company. 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. The Company makes a matching contribution equal to 25% of a participant's contribution, up to 6% of a participant's compensation. The Company also has certain foreign defined contribution plans. The Company's contributions to these plans are based upon various levels of employee participation and legal requirements. The total expense related to defined contribution plans was $5.9 million, $5.4 million and $5.0 million in 2011, 2010 and 2009, respectively.

A non-qualified deferred compensation plan was implemented on January 1, 1995. The plan permits selected employees to make pre-tax deferrals of salary and bonus. Interest is accrued monthly on the deferred compensation balances based on the average 10-year Treasury note rate for the previous three months times a factor of 1.4, and the rate is further adjusted if certain financial goals of the Company are achieved. The plan provides for benefit payments upon retirement, death, disability, termination or other scheduled dates determined by the participant. At December 30, 2011 and December 31, 2010, the deferred compensation liability included in other liabilities on the Consolidated Balance Sheets was $44.1 million and $42.3 million, respectively.

Concurrent with the implementation of the deferred compensation plan, the Company purchased variable, separate account life insurance policies on the plan participants with benefits accruing to the Company. 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, the Company paid level annual premiums on the above company-owned policies. The last premium was paid in 2005. Policy proceeds are payable to the Company upon the insured participant's death. At December 30, 2011 and December 31, 2010, the cash surrender value of $33.9 million and $34.8 million, respectively, was recorded under this program and reflected in "Other assets" on the consolidated balance sheets.

The Company has no other post-retirement benefits other than the pension and savings plans described herein.

Stockholders' Equity
STOCKHOLDERS' EQUITY

NOTE 9. STOCKHOLDERS' EQUITY

Preferred Stock

The Company has 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 2011 and 2010.

Common Stock

The Company has the authority to issue 100.0 million shares of common stock, par value $1.00 per share, of which 33.2 million shares and 34.3 million shares were outstanding at the end of fiscal 2011 and 2010, respectively.

Special Dividend

On September 23, 2010, the Company's Board of Directors declared a special dividend of $3.25 per common share, or approximately $113.7 million, as a return of excess capital to shareholders. The dividend declared was recorded as a reduction to retained earnings as of the end of the third quarter of 2010 and was paid on October 28, 2010 to shareholders of record on October 15, 2010.

In accordance with the antidilution provisions of the Company's stock incentive plans, the exercise price and number of options outstanding were adjusted to reflect the special dividend. The average exercise price of outstanding options decreased from $43.88 to $41.16, and the number of outstanding options increased from 1.3 million to 1.4 million. In addition, the dividend will be paid to holders of stock units upon vesting of the units. These changes resulted in no additional compensation expense.

The conversion rate of the Notes due 2013 was adjusted in October 2010 to reflect the special dividend. Holders of the Notes due 2013 may convert each Note into 16.727 shares, compared to 15.753 shares before the adjustment, of the Company's common stock, for which the Company has reserved 5.0 million of its authorized shares, compared to 4.7 million shares before adjustment.

Stock-Based Compensation

In 2010, the Company's shareholders approved the 2010 Stock Incentive Plan consisting of 1.8 million shares of the Company's common stock. At December 30, 2011, there were 2.3 million shares reserved for issuance under all incentive plans.

Stock Units

The Company granted 157,790268,701 and 371,131 stock units to employees in 2011, 2010 and 2009, respectively, with a weighted-average grant date fair value of $69.91, $42.72 and $29.41 per share, respectively. The grant-date value of the stock units is amortized and converted to outstanding shares of common stock on a one-for-one basis primarily over a four-year or six-year vesting period from the date of grant based on the specific terms of the grant. Compensation expense associated with the stock units was $6.8 million, $11.6 million and $10.3 million in 2011, 2010 and 2009, respectively.

The Company's Director Stock Unit Plan allows the Company to pay its 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, the Company includes these units in its 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. Stock units were granted to ten directors in 2011 and twelve directors in 2010 and 2009 having an aggregate value at grant date of $1.6 million, $1.3 million and $1.9 million, respectively. Compensation expense associated with the director stock units was $1.6 million, $1.7 million and $1.9 million in 2011, 2010 and 2009, respectively.

The following table summarizes the activity under the director and employee stock unit plans:

 

                                 
     Director
Stock
Units (1)
    Weighted
Average
Grant Date
Value (2)
     Employee
Stock
Units
    Weighted
Average
Grant Date
Value (2)
 
     (Units in thousands)  

Outstanding balance at January 2, 2009

     193.9      $ 40.14         582.6      $ 54.74   

Granted

     48.9        38.39         371.1        29.41   

Converted

     (2.7     46.91         (177.4     46.02   

Cancelled

     —          —           (17.2     47.79   
    

 

 

            

 

 

         

Outstanding balance at January 1, 2010

     240.1        39.71         759.1        44.55   

Granted

     26.8        47.32         268.7        42.72   

Converted

     (37.2     38.14         (197.4     51.09   

Cancelled

     —          —           (6.7     45.32   
    

 

 

            

 

 

         

Outstanding balance at December 31, 2010

     229.7        40.85         823.7        42.38   

Granted

     27.7        59.14         157.8        69.91   

Converted

     (7.2     45.74         (281.9     44.67   

Cancelled

     —          —           (82.5     43.99   
    

 

 

            

 

 

         

Outstanding balance at December 30, 2011

     250.2      $ 42.74         617.1      $ 48.16   
    

 

 

            

 

 

         

 

(1) Generally, stock units are included in the Company's common stock outstanding on the date of vesting as the conditions for conversion have been met. However, director units are considered convertible units if vested and the individual has elected to defer for conversion until a pre-arranged time selected by each individual. All of the director stock units outstanding are convertible.
(2) Director and employee stock units are granted at no cost to the participants.

The Company's stock price was $59.64, $59.73 and $47.10 at December 30, 2011, December 31, 2010 and January 1, 2010, respectively. The weighted-average remaining contractual term for outstanding employee units is 1.9 years.

The aggregate intrinsic value of units converted into stock represents the total pre-tax intrinsic value (calculated using the Company's 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 2011, 2010 and 2009 was $20.0 million, $10.4 million and $5.3 million, respectively.

The aggregate intrinsic value of units outstanding represents the total pre-tax intrinsic value (calculated using the Company's 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 2011, 2010 and 2009 was $51.7 million, $62.9 million and $47.1 million, respectively.

The aggregate intrinsic value of units convertible represents the total pre-tax intrinsic value (calculated using the Company's 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 2011, 2010 and 2009 was $14.9 million, $14.1 million and $12.0 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. The Company generally issues new shares to satisfy stock option exercises as opposed to adjusting treasury shares. In accordance with U.S. GAAP, the fair value of stock option grants is amortized over the respective vesting period representing the requisite service period.

During 2011, 2010 and 2009, the Company granted 75,88696,492 and 97,222 stock options, respectively, to employees with a grant-date fair market value of approximately $2.2 million, $1.6 million and $1.2 million, respectively. These options were granted with vesting periods of four years representing the requisite service period based on the specific terms of the grant. The weighted-average fair value of the 2011, 2010 and 2009 stock option grants was $28.50, $17.10 and $12.37 per share, respectively, which was estimated at the date of the grants using the Black-Scholes option pricing model with the following assumptions:

 

                                 
     Expected
Stock Price
Volatility
    Risk-Free
Interest Rate
    Expected
Dividend
Yield
     Average Expected
Life
 

2011 Grants

     37.9     2.4     —           6.13 years   

2010 Grants

     36.2     2.7     —           6.13 years   

2009 Grants

     35.4     2.7     —           7 years   

Primarily due to the change in the population of employees that receive options together with changes in the stock compensation plans (which now include restricted stock units as well as stock options), historical exercise behavior on previous grants do not provide a reasonable estimate for future exercise activity. Therefore, the average expected term was calculated using the simplified method, as defined by U.S. GAAP, for estimating the expected term.

The Company's compensation expense associated with the stock options in 2011, 2010 and 2009 was $2.7 million, $3.4 million and $3.0 million, respectively.

The following table summarizes the activity under the employee option plans (Options in thousands):

 

The Company's stock price was $59.64, $59.73 and $47.10 at December 30, 2011, December 31, 2010 and January 1, 2010, respectively. The weighted-average remaining contractual term for options outstanding for 2011 was 6.7 years. The weighted-average remaining contractual term for options exercisable for 2011 was 5.6 years.

The aggregate intrinsic value of options exercised represents the total pre-tax intrinsic value (calculated as the difference between the Company's stock price on the date of exercise and the exercise price, multiplied by the number of options exercised) that was received by the option holders. The aggregate intrinsic value of options exercised for 2011, 2010 and 2009 was $18.1 million, $15.5 million and $5.8 million, respectively.

The aggregate intrinsic value of options outstanding represents the total pre-tax intrinsic value (calculated as the difference between the Company's 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 2011, 2010 and 2009 was $25.4 million, $39.9 million and $43.4 million, respectively.

The aggregate intrinsic value of options exercisable represents the total pre-tax intrinsic value (calculated as the difference between the Company's 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 2011, 2010 and 2009 was $12.7 million, $22.2 million and $25.5 million, respectively.

Summary of Non-Vested Shares

The following table summarizes the changes to the unvested employee stock units and options:

 

                 
     Non-vested
Shares
    Weighted-average
Grant  Date Fair Value
 
     (shares in thousands)  

Non-vested shares at December 31, 2010

     1,391.3      $ 32.82   

Granted

     233.7        56.46   

Vested

     (522.6     33.51   

Cancelled

     (134.5     34.71   
    

 

 

         

Non-vested shares at December 30, 2011

     967.9      $ 37.89   
    

 

 

         

As of December 30, 2011, there was $15.5 million of total unrecognized compensation cost related to unvested stock units and options granted to employees which is expected to be recognized over a weighted-average period of 1.8 years.

Share Repurchases

During 2011, the Company repurchased 2.0 million shares in the open market at an average cost of $53.73 per share. Purchases were made in the open market and financed from a portion of the proceeds from the sale of Aerospace. During 2010, the Company purchased 1.0 million shares at an average cost of $41.24 per share. Purchases were made in the open market using available cash on hand and available borrowings. During 2009, the Company purchased 1.0 million shares at an average cost of $34.95 per share. Purchases were made in the open market and were financed from cash generated by operations and the net proceeds from the issuance of the Notes due 2014.

Business Segments
BUSINESS SEGMENTS

NOTE 10. BUSINESS SEGMENTS

The Company is engaged in the distribution of communication and security products, electrical and electronic wire and cable products and fasteners and other small parts ("C" Class inventory components) from top suppliers to contractors and installers, and also to end users including manufacturers, natural resources companies, utilities and original equipment manufacturers who use the Company's products as a component in their end product. The Company is organized by geographic regions, and accordingly, has identified North America (United States and Canada), Europe and Emerging Markets (Asia Pacific and Latin America) as reportable segments. The Company obtains and coordinates financing, tax, information technology, legal and other related services, certain of which are rebilled to subsidiaries. Certain corporate expenses are allocated to the segments based primarily on specific identification, projected sales and estimated use of time. Interest expense and other non-operating items are not allocated to the segments or reviewed on a segment basis. Intercompany transactions are not significant. No customer accounted for more than 3% of sales in 2011. Export sales were insignificant.

The Company attributes foreign sales based on the location of the customer purchasing the product. In North America, sales in the United States were $3,561.7 million, $3,081.4 million and $2,830.3 million in 2011, 2010 and 2009, respectively. Canadian sales were $740.8 million, $619.8 million and $567.5 million in 2011, 2010 and 2009, respectively. No other individual foreign country's net sales within the Europe or Emerging Markets' geographic segments were material to the Company in 2011, 2010 or 2009. The Company's tangible long-lived assets primarily consist of property, plant and equipment in the United States. No other individual foreign country's tangible long-lived assets are material to the Company.

Segment information for 2011, 2010 and 2009 was as follows (in millions):

 

                                 
     North
America
     Europe     Emerging
Markets
     Total  

2011

                                  

Net sales

   $ 4,302.5       $ 1,150.0      $ 694.4       $ 6,146.9   

Operating income

     307.7         15.7        39.4         362.8   

Depreciation

     14.5         5.6        2.0         22.1   

Amortization of intangibles

     5.2         6.1        0.1         11.4   

Tangible long-lived assets

     99.6         28.3        6.3         134.2   

Total assets

     2,015.9         622.3        395.8         3,034.0   

Capital expenditures

     18.3         5.2        2.9         26.4   
         

2010

                                  

Net sales

   $ 3,701.2       $ 1,008.4      $ 564.9       $ 5,274.5   

Operating income (loss)

     235.1         (0.9     33.0         267.2   

Depreciation

     14.7         5.6        2.2         22.5   

Amortization of intangibles

     5.0         6.2        0.1         11.3   

Tangible long-lived assets

     95.9         24.5        5.5         125.9   

Total assets

     2,043.9         586.7        302.7         2,933.3   

Capital expenditures

     16.6         1.9        1.1         19.6   
         

2009

                                  

Net sales

   $ 3,397.8       $ 887.9      $ 493.9       $ 4,779.6   

Operating income (loss)

     175.1         (120.0     29.7         84.8   

Depreciation

     15.0         7.0        2.1         24.1   

Amortization of intangibles

     6.3         6.6        0.1         13.0   

Tangible long-lived assets

     92.2         32.5        5.5         130.2   

Total assets

     1,869.5         545.6        256.6         2,671.7   

Capital expenditures

     17.0         2.9        2.0         21.9   

 

The following table summarizes net sales by end market for the years ended December 30, 2011, December 31, 2011 and January 1, 2010 (in millions):

 

                                                 
     Years Ended  
     December 30, 2011     December 31, 2010     January 1, 2010  
     Net Sales      % of Total
Net Sales
    Net Sales      % of Total
Net Sales
    Net Sales      % of Total
Net Sales
 

Enterprise Cabling and Security

   $ 3,245.9         52.8   $ 2,912.6         55.2   $ 2,744.1         57.4

Electrical Wire and Cable

     1,949.5         31.7     1,602.5         30.4     1,385.7         29.0

OEM Supply

     951.5         15.5     759.4         14.4     649.8         13.6
    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Net Sales

   $ 6,146.9         100.0   $ 5,274.5         100.0   $ 4,779.6         100.0
    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

The categorization of net sales by end market is determined using a variety of data points including the technical characteristics of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which the Company's product will be incorporated. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, the Company reclassifies 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.

The following table presents the changes in goodwill allocated to the Company's reportable segments from January 1, 2010 to December 30, 2011 (in millions):

 

                                 
     North
America
    Europe(a)     Emerging
Markets
    Total  

Balance as of January 1, 2010(b)

   $ 316.3      $ 11.7      $ 10.7      $ 338.7   

Acquisition related (c)

     15.3        —          —          15.3   

Foreign currency translation

     0.8        (0.7     1.2        1.3   
    

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2010

   $ 332.4      $ 11.0      $ 11.9      $ 355.3   

Acquisition related(c)

     (2.8     —          —          (2.8

Foreign currency translation

     (0.4     (0.1     (0.3     (0.8
    

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 30, 2011

   $ 329.2      $ 10.9      $ 11.6      $ 351.7   
    

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Europe's goodwill balance includes $100.0 million of accumulated impairment losses for all periods presented.
(b) As a result of the disposition of the Company's Aerospace business in the third quarter of 2011, goodwill of $19.0 million allocated to the North America and Europe reportable segments was written off and prior period amounts were reclassified to "Assets of discontinued operations" on the Company's Consolidated Balance Sheet as of January 1, 2010.
(c) In the year ended December 30, 2011, the Company adjusted goodwill recognized in 2010 by $2.8 million, related to the acquisition of Clark Security Products, Inc and General Lock, LLC (collectively "Clark") for which the Company paid $36.4 million in 2010 (offset in 2011 by $1.6 million which was returned to the Company as a result of net working capital adjustments). The purchase price, as well as the allocation thereof, was finalized in 2011.
Summarized Financial Information of Anixter, Inc.
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC

NOTE 11.   SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.

The Company guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc. The Company has no independent assets or operations and all subsidiaries other than Anixter Inc. are minor.The following summarizes the financial information for Anixter Inc. (in millions):

ANIXTER INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

 

     December 30,
2011
     December 31,
2010
 

Assets:

     

Current assets(a)

   $         2,404.0       $         2,309.1   

Property, equipment and capital leases, net

     102.3         98.3   

Goodwill

     351.7         355.3   

Other assets

     190.2         187.0   
  

 

 

    

 

 

 
   $ 3,048.2       $ 2,949.7   
  

 

 

    

 

 

 

Liabilities and Stockholder's Equity:

     

Current liabilities(a)

   $ 1,023.3       $ 1,069.0   

Subordinated notes payable to parent

     6.0         8.5   

Long-term debt

     543.9         394.3   

Other liabilities

     198.2         159.1   

Stockholder's equity

     1,276.8         1,318.8   
  

 

 

    

 

 

 
   $ 3,048.2       $ 2,949.7   
  

 

 

    

 

 

 

 

(a)

Includes assets and liabilities related to discontinued operations of $186.8 and $14.6, respectively, at December 31, 2010 (see Note 4. "Discontinued Operations.")

ANIXTER INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

     Years Ended  
     December 30,
2011
    December 31,
2010
    January 1,
2010
 

Net sales

   $         6,146.9      $         5,274.5      $         4,779.6   

Operating income

   $ 368.3      $ 273.0      $ 90.5   

Income from continuing operations before income taxes

   $ 328.0      $ 204.2      $ 21.1   

Net (loss) income from discontinued operations

   $ (12.5   $ (1.0   $ 12.1   

Net income (loss)

   $ 203.3      $ 123.2      $ (15.4
Selected Quarterly Financial Data
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

NOTE 12. 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, 2011 and December 31, 2010. The Company has never paid ordinary cash dividends on its common stock. However, in 2010, the Company declared a special dividend of $3.25 per common share, or $113.7 million, as a return of excess capital to shareholders and was paid on October 28, 2010 to shareholders of record on October 15, 2010. As of February 17, 2012, the Company had 2,209 shareholders of record.

 

(In millions, except per share amounts)    First
Quarter (1)
     Second
Quarter
     Third
Quarter
(2)
    Fourth
Quarter
(3)
 

Year ended December 30, 2011

          

Net sales

   $         1,470.8       $         1,565.3       $         1,611.8      $         1,499.0   

Cost of goods sold

     1,132.1         1,207.3         1,249.8        1,150.3   

Operating income

     77.5         92.0         101.7        91.6   

Income from continuing operations before income taxes

     65.4         77.6         83.3        77.2   

Net income from continuing operations

     40.9         48.4         61.6        49.8   

Income (loss) from discontinued operations, net

     3.4         3.7         (18.1     (1.5

Net income

   $ 44.3       $ 52.1       $ 43.5      $ 48.3   

Income (loss) per share

          

Basic:

          

Continuing operations

   $ 1.19       $ 1.39       $ 1.80      $ 1.50   

Discontinued operations

   $ 0.10       $ 0.11       $ (0.53   $ (0.05

Net income

   $ 1.29       $ 1.50       $ 1.27      $ 1.45   

Diluted:

          

Continuing operations

   $ 1.13       $ 1.33       $ 1.78      $ 1.49   

Discontinued operations

   $ 0.10       $ 0.10       $ (0.52   $ (0.05

Net income

   $ 1.23       $ 1.43       $ 1.26      $ 1.44   

Stock price range:

          

High

   $ 73.56       $ 76.16       $ 68.15      $ 62.99   

Low

   $ 59.52       $ 60.54       $ 47.38      $ 44.52   

Close

   $ 68.30       $ 66.10       $ 47.44      $ 59.64   

 

(1)

In the first quarter of 2011, the Company recorded a pre-tax charge of $5.3 million related to facility consolidations and headcount reductions in Europe. See Note 3. "Restructuring Charge."

(2)

In the third quarter of 2011, the Company recorded a tax benefit of $8.8 million which was primarily related to the reversal of deferred income tax valuation allowances in certain foreign jurisdictions. See Note 7. "Income Taxes."

(3)

During the fourth quarter of 2011, the Company recorded a tax benefit of $2.0 million primarily related to the reversal of deferred income tax valuation allowances in certain foreign jurisdictions.

 

 

(In millions, except per share amounts)    First
Quarter
(1)
     Second
Quarter
(2)
     Third
Quarter
(3)
     Fourth
Quarter
(4)
 

Year ended December 31, 2010

           

Net sales

   $     1,221.8       $     1,321.3       $     1,344.9       $     1,386.5   

Cost of goods sold

     945.8         1,020.7         1,035.8         1,064.6   

Operating income

     51.4         66.5         70.8         78.5   

Income from continuing operations before income taxes

     4.3         53.6         57.3         65.0   

Net income from continuing operations

     2.6         32.2         32.6         42.1   

Income (loss) from discontinued operations, net

     3.3         2.4         3.9         (10.6

Net income

   $ 5.9       $ 34.6       $ 36.5       $ 31.5   

Income (loss) per share

           

Basic:

           

Continuing operations

   $ 0.08       $ 0.95       $ 0.96       $ 1.23   

Discontinued operations

   $ 0.09       $ 0.07       $ 0.11       $ (0.31

Net income

   $ 0.17       $ 1.02       $ 1.07       $ 0.92   

Diluted:

           

Continuing operations

   $ 0.07       $ 0.91       $ 0.92       $ 1.18   

Discontinued operations

   $ 0.09       $ 0.07       $ 0.11       $ (0.30

Net income

   $ 0.16       $ 0.98       $ 1.03       $ 0.88   

Stock price range:

           

High

   $ 48.85       $ 54.16       $ 54.99       $ 61.17   

Low

   $ 38.42       $ 41.31       $ 41.27       $ 52.10   

Close

   $ 47.16       $ 41.90       $ 54.28       $ 59.73   

 

(1)

During the first quarter of 2010, the Company repurchased a portion of its Notes due 2014 which resulted in the recognition of a pre-tax loss of $30.5 million ($18.9 million, net of tax).

(2)

Net income in the second quarter includes a foreign exchange gain of $2.1 million ($0.8 million, net of tax) due to the remeasurement of Venezuela's bolivar-denominated balance sheet at the new government rate. During the second quarter of 2010, the Company repurchased a portion of its Notes due 2033 which resulted in the recognition of a pre-tax gain of $0.8 million ($0.5 million, net of tax).

(3)

During third quarter of 2010, the Company repurchased a portion of its Notes due 2014 and 2033 which resulted in the recognition of a pre-tax loss of $2.7 million ($1.7 million, net of tax).

(4)

During the fourth quarter of 2010, the Company repurchased a portion of its Notes due 2033 which resulted in the recognition of a pre-tax gain of $0.5 million ($0.3 million, net of tax). Also during the fourth quarter of 2010, the Company recorded a tax benefit of $1.3 million for the reversal of prior year foreign taxes.

Subsequent Event
SUBSEQUENT EVENTS

NOTE 13.   SUBSEQUENT EVENT

In February 2012, the Company appealed to the Arizona Court of Appeals the Maricopa County Superior Court judgment confirming the arbitration award related to the Raytheon matter which is discussed in more detail in Note 6. "Commitments and Contingencies." As part of the appellate process, the Company has posted collateral by tendering $10.0 million to Raytheon in cash and posting a bond in favor of Raytheon in the amount of $12.4 million. In the event the judgment is upheld, Raytheon has agreed that post-judgment interest will not accrue on $10.0 million of the judgment from the date that the Company tendered the cash collateral. In the event the judgment is not upheld, the Company will receive a return of the cash and the bond.

Condensed Financial Information of Registrant Anixter International Inc. (Parent Company)
CONDENSED FINANCIAL INFORMATION OF REGISTRANT ANIXTER INTERNATIONAL INC. (PARENT COMPANY)

ANIXTER INTERNATIONAL INC.

SCHEDULE I — CONDENSED FINANCIAL INFORMATION OF REGISTRANT

ANIXTER INTERNATIONAL INC. (PARENT COMPANY)

STATEMENTS OF OPERATIONS

 

     Years Ended  
(In millions)    December 30,
2011
    December 31,
2010
    January 1,
2010
 

Operating loss

   $ (4.3   $ (4.6   $ (4.2

Other (expense) income:

      

Interest expense, including intercompany

     (16.2     (17.3     (18.4

Other

     0.2        1.7        4.2   
  

 

 

   

 

 

   

 

 

 

Loss before income taxes and equity in earnings of subsidiaries

     (20.3     (20.2     (18.4

Income tax benefit

     7.7        7.7        6.7   
  

 

 

   

 

 

   

 

 

 

Loss before equity in earnings of subsidiaries

     (12.6     (12.5     (11.7

Equity in earnings (loss) of subsidiaries

     200.8        121.0        (17.6
  

 

 

   

 

 

   

 

 

 

Net income (loss)

   $ 188.2      $ 108.5      $ (29.3
  

 

 

   

 

 

   

 

 

 

See accompanying note to the condensed financial information of registrant.

 

BALANCE SHEETS

 

(In millions)    December 30,
2011
    December 31,
2010
 
ASSETS     

Current assets:

    

Cash and cash equivalents

   $ 0.4      $ 0.4   

Other assets

     0.4        0.5   
  

 

 

   

 

 

 

Total current assets

     0.8        0.9   

Investment in and advances to subsidiaries

     1,284.8        1,328.9   

Other assets

     1.0        1.9   
  

 

 

   

 

 

 
   $ 1,286.6      $ 1,331.7   
  

 

 

   

 

 

 
LIABILITIES AND STOCKHOLDERS' EQUITY     

Liabilities:

    

Accounts payable and accrued expenses, due currently

   $ 2.3      $ 2.3   

Amounts currently due to affiliates, net

     1.9        4.1   

Long-term debt

     280.4        312.7   

Other non-current liabilities

     0.8        1.8   
  

 

 

   

 

 

 

Total liabilities

     285.4        320.9   

Stockholders' equity:

    

Common stock

     33.2        34.3   

Capital surplus

     196.5        230.1   

Accumulated other comprehensive loss

     (85.5     (27.8

Retained earnings

     857.0        774.2   
  

 

 

   

 

 

 

Total stockholders' equity

     1,001.2        1,010.8   
  

 

 

   

 

 

 
   $ 1,286.6      $ 1,331.7   
  

 

 

   

 

 

 

See accompanying note to the condensed financial information of registrant.

 

STATEMENTS OF CASH FLOWS

 

(In millions)    Years Ended  
      December 30,
2011
    December 31,
2010
    January 1,
2010
 

Operating activities:

      

Net income (loss)

   $ 188.2      $ 108.5      $ (29.3

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

      

Dividend from subsidiary

     201.3        271.8        125.7   

Equity in earnings of subsidiaries

     (200.8     (121.0     17.6   

Net gain on retirement of debt

     (0.1     (1.4     (3.6

Accretion of debt discount

     16.6        18.0        19.3   

Stock-based compensation

     1.6        1.8        1.9   

Amortization of deferred financing costs

     0.9        0.9        0.8   

Intercompany transactions

     (13.8     (0.9     (12.4

Income tax benefit

     (7.7     (7.7     (6.7

Changes in assets and liabilities, net

     0.1        (2.1     (0.3
  

 

 

   

 

 

   

 

 

 

Net cash provided by operating activities

     186.3        267.9        113.0   

Investing activities

                     

Financing activities:

      

Purchase of common stock for treasury

     (107.5     (41.2     (34.9

Retirement of Notes due 2033 – debt component

     (48.9     (65.6     (56.5

Retirement of Notes due 2033 – equity component

     (44.9     (54.0     (34.3

Proceeds from issuance of common stock

     13.4        8.7        2.5   

Loans (to) from subsidiaries, net

     2.5        (5.0     11.0   

Payment of cash dividend

     (0.9     (111.0     (0.3
  

 

 

   

 

 

   

 

 

 

Net cash used in financing activities

     (186.3     (268.1     (112.5
  

 

 

   

 

 

   

 

 

 

(Decrease) increase in cash and cash equivalents

            (0.2 )      0.5   

Cash and cash equivalents at beginning of year

     0.4        0.6        0.1   
  

 

 

   

 

 

   

 

 

 

Cash and cash equivalents at end of year

   $ 0.4      $ 0.4      $ 0.6   
  

 

 

   

 

 

   

 

 

 

See accompanying note to the condensed financial information of registrant.

 

NOTE TO THE CONDENSED FINANCIAL INFORMATION OF REGISTRANT

Note A — Basis of Presentation

In the parent company condensed financial statements, the Company's investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The Company's share of net income of its unconsolidated subsidiaries is included in consolidated income using the equity method. The parent company financial statements should be read in conjunction with the Company's consolidated financial statements.

Valuation and Qualifying Accounts and Reserves
VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

ANIXTER INTERNATIONAL INC.

SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS AND RESERVES

Years ended December 30, 2011, December 31, 2010 and January 1, 2010

 

(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, 2011:

              

Allowance for doubtful accounts

   $           23.7       $ 8.0      $ (2.7   $ (9.5   $ 19.5   

Allowance for deferred tax asset

   $           18.8       $ (17.3   $ 18.8      $ —        $ 20.3   

Year ended December 31, 2010:

              

Allowance for doubtful accounts

   $           24.8       $ 12.8      $ (0.4   $ (13.5   $ 23.7   

Allowance for deferred tax asset

   $           18.7       $ 1.7      $ (1.6   $ —        $ 18.8   

Year ended January 1, 2010:

              

Allowance for doubtful accounts

   $           29.4       $ 11.7      $ 0.2      $ (16.5   $ 24.8   

Allowance for deferred tax asset

   $           13.8       $ (6.6   $ 11.5      $ —        $ 18.7   
Summary of Significant Accounting Policies (Policies)

Organization: Anixter International Inc. ("the Company"), formerly known as Itel Corporation, which was incorporated in Delaware in 1967, is engaged in the distribution of communications and security products, electrical wire and cable products, fasteners and small parts through Anixter Inc. and its subsidiaries (collectively "Anixter").

Basis of presentation: The consolidated financial statements include the accounts of Anixter International Inc. and its subsidiaries. The Company's fiscal year ends on the Friday nearest December 31 and included 52 weeks in 2011, 2010 and 2009. Certain amounts have been reclassified to conform to the current year presentation. Also, as a result of the divestiture of a business, described in Note 4. "Discontinued Operations," the Company began recording the results of the divested business as discontinued operations in 2011 and all prior periods have been revised to reflect this classification.

Use of estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

Cash and cash equivalents: Cash equivalents consist of short-term, highly liquid investments that mature within three months or less. Such investments are stated at cost, which approximates fair value.

           Receivables and allowance for doubtful accounts: The Company carries its accounts receivable at their face amounts less an allowance for doubtful accounts which was $19.5 million and $23.7 million at the end of 2011 and 2010, respectively. On a regular basis, the Company evaluates its accounts receivable and establishes 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. During 2011, the Company reached favorable settlements of several customer bankruptcy and disputes which were fully reserved at the beginning of 2011. The provision for doubtful accounts was $8.0 million, $12.8 million and $11.7 million in 2011, 2010 and 2009, 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 finished goods, are stated at the lower of cost or market. Cost is determined using the average-cost method. The Company has agreements with some of its vendors that provide a right to return products. This right is typically limited to a small percentage of the Company's total purchases from that vendor. Such rights provide that the Company can return slow-moving product and the vendor will replace it with faster-moving product chosen by the Company. Some vendor agreements contain price protection provisions that require the manufacturer to issue a credit in an amount sufficient to reduce the Company's current inventory carrying cost down to the manufacturer's current price. The Company considers these agreements in determining its reserve for obsolescence.

At December 30, 2011 and December 31, 2010, the Company reported inventory of $1,070.7 million and $870.3 million, respectively (net of inventory reserves of $61.2 million and $66.8 million, respectively). Each quarter the Company reviews for excess inventories and makes 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; and

 

   

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.

Goodwill: On an annual basis, the Company tests for goodwill impairment using a two-step process, unless there is a triggering event, in which case a test would be performed at the time that such triggering event occurs. The first step is to identify a potential impairment by comparing the fair value of a reporting unit with its carrying amount. For all periods presented, the Company's reporting units are consistent with its operating segments of North America, Europe, Latin America and Asia Pacific. The estimates of fair value of a reporting unit are determined using the income approach based on a discounted cash flow analysis. A discounted cash flow analysis requires the Company to make various judgmental assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on management's forecast of each reporting unit. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units from the perspective of market participants. The Company also reviews market multiple information to corroborate the fair value conclusions recorded through the aforementioned income approach. If step one 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 fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination.

The Company performed its 2011 annual impairment analysis during the third quarter of 2011 and concluded that no impairment existed. The Company expects the carrying amount of remaining goodwill to be fully recoverable.

Due to business and economic conditions that existed in 2009, the Company concluded that there were impairment indicators for the North America, Europe and Asia Pacific reporting units that required an interim impairment analysis be performed under Generally Accepted Accounting Principles ("U.S. GAAP") during the second fiscal quarter of that year.

 

In the first step of the impairment analysis, the Company performed valuation analyses utilizing the income approach to determine the fair value of its reporting units. The Company also considered the market approach as described in U.S. GAAP. Under the income approach, the Company determined the fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of the reporting unit and the rate of return an outside investor would expect to earn. The inputs used for the income approach were significant unobservable inputs, or Level 3 inputs, in the fair value hierarchy described in recently issued accounting guidance on fair value measurements. Estimated future cash flows were based on the Company's internal projection models, industry projections and other assumptions deemed reasonable by management as those that would be made by a market participant. Based on the results of the Company's assessment in step one, it was determined that the carrying value of the Europe reporting unit exceeded its estimated fair value while North America and Asia Pacific's fair value exceeded the carrying value.

Therefore, the Company performed a second step of the impairment test to estimate the implied fair value of goodwill in Europe. In the second step of the impairment analysis, the Company determined the implied fair value of goodwill for the Europe reporting unit by allocating the fair value of the reporting unit to all of Europe's assets and liabilities, as if the reporting unit had been acquired in a business combination and the price paid to acquire it was the fair value. The analysis indicated that there would be an implied value attributable to goodwill of $12.1 million in the Europe reporting unit and accordingly, in the second quarter of 2009, the Company recorded a non-cash impairment charge related to the write-off of the remaining goodwill of $100.0 million associated with its Europe reporting unit.

 

Convertible Debt: The Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement). The liability and equity components are accounted for in a manner that reflects an issuer's nonconvertible debt borrowing rate. The bifurcation of the component of debt, classification of that component in equity and the accretion of the resulting discount on the debt is recognized as part of interest expense in the Company's Consolidated Statements of Operations. These provisions impact the accounting associated with the Company's $300 million convertible notes due 2013 ("Notes due 2013") and the Company's 3.25% zero coupon convertible notes due 2033 ("Notes due 2033") which are described further in Note 5. "Debt". The Notes due 2033 were retired in the third quarter of 2011.

The following table provides additional information about the Company's convertible debt instruments that are subject to these accounting requirements:

 

                         
     December 30, 2011      December 31, 2010  
     Notes due 2013      Notes due 2013      Notes due 2033  
($ and shares in millions, except conversion prices)                     

Carrying amount of the equity component

   $ 53.3       $ 53.3       $ (45.7 )  

Principal amount of the liability component

   $ 300.0       $ 300.0       $ 100.2   

Unamortized discount of liability component (a)

   $ (19.7 )      $ (35.8 )      $ (51.7 )  

Net carrying amount of liability component

   $ 280.3       $ 264.2       $ 48.5   

Remaining amortization period of discount (a)

     14 months         (c )        (c )  

Conversion price

   $ 59.78         (c )        (c )  

Number of shares to be issued upon conversion

     5.0         (c )        (c )  

If-converted value exceeds principal amount (b)

   $ —           (c )        (c )  

 

(a) The Notes due 2013 and Notes due 2033 were issued in February of 2007 and July of 2003, respectively. The Notes due 2033 were retired in the third quarter of 2011. For convertible debt accounting purposes, the expected life of the Notes due 2013 and the Notes due 2033 were determined to be six years and four years from the issuance date, respectively. As such, the Company is amortizing the unamortized discount through interest expense through February of 2013 for the Notes due 2013.
(b) If-converted value amounts are for disclosure purposes only. The Notes due 2013 are convertible when the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is more than $77.71. Based on the Company's stock prices during the year, the Notes due 2013 have not been convertible during 2011 and 2010.
(c) Data not required for comparative purposes.

 

The fair value of the liability component related to the Notes due 2013 was initially calculated based on a discount rate of 7.1%, representing the Company's nonconvertible debt borrowing rate at issuance for debt instruments with similar terms and characteristics. For accounting purposes, the expected life for a similar instrument was six years which was used to develop this nonconvertible debt borrowing rate. Interest cost relates to both the contractual interest coupon and amortization of the discount on the liability component. Non-cash interest cost recognized for the Notes due 2013 was $16.1 million, $15.1 million and $14.1 million for fiscal years 2011, 2010 and 2009, respectively. Cash interest cost recognized for the Notes due 2013 was $3.0 million in 2011, 2010 and 2009.

The fair value of the liability component related to the Notes due 2033 was initially calculated based on a discount rate of 6.1%, representing the Company's nonconvertible debt borrowing rate at issuance for debt instruments with similar terms and characteristics. For accounting purposes, the expected life for a similar instrument was four years which was used to develop this nonconvertible debt borrowing rate. Therefore, the amount of interest expense associated with the initial discount was fully recognized as of the end of 2007 (i.e., four years from issuance of these notes). Interest cost recognized for the Notes due 2033 was $0.5 million, $2.9 million and $5.2 million for fiscal years 2011, 2010 and 2009, respectively, based on the zero-coupon rate of 3.25% associated with the Notes due 2033.

 

Intangible assets: Intangible assets, included in other assets on the consolidated balance sheets, primarily consist of customer relationships that are being amortized over periods ranging from 8 to 15 years. The Company continually evaluates whether events or circumstances have occurred that would indicate the remaining estimated useful lives of its intangible assets warrant revision or that the remaining balance of such assets may not be recoverable. The Company uses an estimate of the related undiscounted cash flows over the remaining life of the asset in measuring whether the asset is recoverable. At December 30, 2011 and December 31, 2010, the Company's gross carrying amount of intangible assets subject to amortization was $130.4 million and $130.6 million, respectively. Accumulated amortization was $60.5 million and $50.4 million at December 30, 2011 and December 31, 2010, respectively. Intangible amortization expense related to all of the Company's net intangible assets of $69.9 million at December 30, 2011 is expected to be approximately $10.1 million per year for the next five years.

 

Foreign currency translation: The Company's investments in several subsidiaries are recorded in currencies other than the U.S. dollar. As these foreign currency denominated investments are translated at the end of each period during consolidation using period-end exchange rates, fluctuations of exchange rates between the foreign currency and the U.S. dollar increase or decrease the value of those investments. These fluctuations and the results of operations for foreign subsidiaries, where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the average exchange rates during the year, 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 Stockholders' Equity, "Foreign currency translation," which is a component of accumulated other comprehensive income (loss). In addition, as the Company's 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.

 

          Several of the Company's 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. That 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 Operations. The Company recognized $7.1 million, $2.5 million and $23.2 million in net foreign exchange losses in 2011, 2010 and 2009, respectively. See "Other, net" discussion herein for further information regarding these losses. 

 

The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company's strategy is to negotiate terms for its derivatives and other financial instruments to be perfectly 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). The Company's counterparties to its foreign currency forward contracts have investment-grade credit ratings. The Company expects the creditworthiness of its counterparties to remain intact through the term of the transactions. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist which could affect the value of the derivatives.

The Company does not hedge 100% of its foreign currency-denominated accounts and results of the 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, 2011 and December 31, 2010, 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 Operations offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At December 30, 2011 and December 31, 2010, the notional amount of the foreign currency forward contracts outstanding was approximately $161.3 million and $223.0 million, respectively. The fair value of the Company's foreign currency forward contracts was not significant at December 30, 2011 or December 31, 2010.

The following activity relates to foreign exchange gains and losses reflected in "Other, net" in the Company's Consolidated Statements of Operations (in millions):

 

                         
     Years Ended  
Income (Loss)    December 30,
2011
    December 31,
2010
    January 1,
2010
 

Remeasurement of multicurrency balances

   $ (0.6   $ (1.7   $ (11.2

Revaluation of foreign currency forward contracts

     (4.0     1.2        (8.1

Hedge costs

     (2.5     (2.0     (3.9
    

 

 

   

 

 

   

 

 

 

Total foreign exchange loss

   $ (7.1   $ (2.5   $ (23.2
    

 

 

   

 

 

   

 

 

 

 

Interest rate agreements: The Company uses interest rate swaps to reduce its exposure to fluctuations in interest rates. The objective of the currently outstanding interest rate swap (cash flow hedge) is to convert variable interest to fixed interest associated with forecasted interest payments resulting from revolving borrowings in the U.K. and are designated as hedging instruments. The Company does not enter into interest rate swaps for speculative purposes. Changes in the value of the interest rate swap is expected to be highly effective in offsetting the changes attributable to fluctuations in the variable rates. The Company's counterparty to its interest rate swap contract has an investment-grade credit rating. The Company expects the creditworthiness of its counterparty to remain intact through the term of the transaction. When entered into, the financial instrument is designated as a hedge of underlying exposures (interest payments associated with the U.K. borrowings) attributable to changes in the respective benchmark interest rate.

 

As of December 30, 2011, the Company had one interest rate swap agreement outstanding with a notional amount of GBP 15 million. The GBP swap agreement obligates the Company to pay a fixed rate through July 2012. The fair value of the Company's interest rate swap is determined by means of a mathematical model that calculates the present value of the anticipated cash flows from the transaction using mid-market prices and other economic data and assumptions, or by means of pricing indications from one or more other dealers selected at the discretion of the respective banks. These inputs would be considered Level 2 in the fair value hierarchy described in recently issued accounting guidance on fair value measurements. At December 30, 2011, the interest rate swap was revalued at current interest rates, with the change in valuation reflected directly in "Accumulated Other Comprehensive Loss" in the Company's Consolidated Balance Sheets. The fair market value of this agreement, which is the estimated exit price that the Company would pay to cancel the agreement, was not significant at December 30, 2011.

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 Operations were $12.1 million, $10.0 million and $9.9 million in 2011, 2010 and 2009, respectively. The majority of the Company's advertising and sales promotion costs are recouped through various cooperative advertising programs with vendors.

Shipping and handling fees and costs: The Company includes 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 Operations, which were $108.4 million, $94.6 million and $84.8 million for the years ended 2011, 2010 and 2009, respectively.

          Stock-based compensation: In accordance with U.S. accounting rules, the Company measures the cost of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method. Compensation costs for the plans have been determined based on the fair value at the grant date using the Black-Scholes option pricing model and amortized on a straight-line basis over the respective vesting period representing the requisite service period.

Other, net: The following represents the components of "Other, net" as reflected in the Company's Consolidated Statements of Operations for the fiscal years 2011, 2010 and 2009:

 

                         
     Years Ended  

(In millions)

   December 30,
2011
    December 31,
2010
    January 1,
2010
 

Other, net loss:

                

Foreign exchange

   $ (7.1   $ (2.5   $ (23.2

Cash surrender value of life insurance policies

     (0.9     3.0        3.4   

Settlement of interest rate swaps

     —          —          (2.1

Other

     (1.2     (2.0     2.7   
    

 

 

   

 

 

   

 

 

 
     $ (9.2   $ (1.5   $ (19.2
    

 

 

   

 

 

   

 

 

 

 

Due to the sharp increase of the U.S. dollar in 2011 against certain foreign currencies, primarily in the Emerging Markets where there are few cost-effective means of hedging, the Company recorded a foreign exchange loss of $7.1 million in 2011. In 2010, the Company recognized a foreign exchange gain of $2.1 million associated with the remeasurement of Venezuela's bolivar-denominated monetary assets on the Venezuelan balance sheet at the parallel exchange rate. The Company also recorded a foreign exchange loss of $13.8 million in 2009 due to the repatriation of cash from Venezuela and the remeasurement of monetary items on the Venezuelan balance sheet at the parallel exchange rate. The Company recorded other foreign exchange losses of $4.6 million and $9.4 million in 2010 and 2009, respectively. Further, the combined effect of declines in both the equity and bond markets resulted in a $0.9 million decline in the cash surrender value of Company owned life insurance policies associated with the Company sponsored deferred compensation program in 2011. This compares to a $3.0 million and $3.4 million increase in the cash surrender value of life insurance policies in 2010 and 2009, respectively. In 2009, the Company recorded a loss of $2.1 million associated with the cancellation of interest rate hedging contracts resulting from the repayment of the related borrowings. In 2009, the Company also recorded other income of $3.4 million related to the expiration of liabilities associated with a prior asset sale.

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. The Company maintains 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. The Company recognizes 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 (loss) per share: Diluted net income (loss) 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.

In 2011 and 2010, 0.4 million and 0.5 million additional shares, respectively, related to stock options and stock units were included in the computation of diluted earnings per share because the effect of those common stock equivalents were dilutive during these periods. The Company excludes antidilutive stock options and units from the calculation of weighted-average shares for diluted earnings per share. The Company excluded 0.4 million, 0.4 million, and 0.5 million antidilutive stock options and units for 2011, 2010 and 2009, respectively

Due to the Company's obligation to settle the outstanding par value of the Notes due 2013 and Notes due 2033 in cash upon conversion, the Company is not required to include any shares underlying the convertible notes in its diluted weighted average shares outstanding until the average stock price per share for the period exceeds the conversion price of the respective instruments. Although the Notes due 2033 were retired during 2011, they were dilutive during the period as well as the corresponding period in 2010. At such time that the average stock price per share for the period exceeds the conversion price of the convertible notes, only the number of shares that would be potentially issuable (under the treasury stock method of accounting for share dilution) would be included in the dilutive share calculation, which is based upon the amount by which the average stock price exceeds the conversion price.

As a result of the conversion value exceeding the average accreted principal value during 2011 and 2010, the Company included 0.2 million and 0.9 million additional shares, respectively, related to the Notes due 2033 in the diluted weighted-average common shares outstanding. The Company's average stock price for 2009 did not exceed the average accreted principal value and, therefore, the Notes due 2033 were antidilutive for this period.

As a result of the Company's average stock price exceeding the conversion price during 2011, 0.3 million additional shares related to the Notes due 2013 were included in the diluted weighted-average common shares outstanding. The Company's average stock price for 2010 and 2009 did not exceed the conversion price and, therefore, the Notes due 2013 were antidilutive for these periods.

Summary of Significant Accounting Policies (Tables)
December 30, 2011     December 31, 2010  
      Notes due 2013     Notes due 2013     Notes due 2033  
($ and shares in millions, except conversion prices)                   

Carrying amount of the equity component

   $ 53.3      $ 53.3      $ (45.7

Principal amount of the liability component

   $ 300.0      $ 300.0      $ 100.2   

Unamortized discount of liability component (a)

   $ (19.7   $ (35.8   $ (51.7

Net carrying amount of liability component

   $               280.3      $             264.2      $             48.5   

Remaining amortization period of discount (a)

     14 months        (c     (c

Conversion price

   $ 59.78        (c     (c

Number of shares to be issued upon conversion

     5.0        (c     (c

If-converted value exceeds principal amount (b)

   $        (c     (c

 

(a)

The Notes due 2013 and Notes due 2033 were issued in February of 2007 and July of 2003, respectively. The Notes due 2033 were retired in the third quarter of 2011. For convertible debt accounting purposes, the expected life of the Notes due 2013 and the Notes due 2033 were determined to be six years and four years

 

from the issuance date, respectively. As such, the Company is amortizing the unamortized discount through interest expense through February of 2013 for the Notes due 2013.

(b)

If-converted value amounts are for disclosure purposes only. The Notes due 2013 are convertible when the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is more than $77.71. Based on the Company's stock prices during the year, the Notes due 2013 have not been convertible during 2011 and 2010.

(c)

Data not required for comparative purposes.

                         
     Years Ended  
Income (Loss)    December 30,
2011
    December 31,
2010
    January 1,
2010
 

Remeasurement of multicurrency balances

   $ (0.6   $ (1.7   $ (11.2

Revaluation of foreign currency forward contracts

     (4.0     1.2        (8.1

Hedge costs

     (2.5     (2.0     (3.9
    

 

 

   

 

 

   

 

 

 

Total foreign exchange loss

   $ (7.1   $ (2.5   $ (23.2
    

 

 

   

 

 

   

 

 

 
                         
     Years Ended  

(In millions)

   December 30,
2011
    December 31,
2010
    January 1,
2010
 

Other, net loss:

                

Foreign exchange

   $ (7.1   $ (2.5   $ (23.2

Cash surrender value of life insurance policies

     (0.9     3.0        3.4   

Settlement of interest rate swaps

     —          —          (2.1

Other

     (1.2     (2.0     2.7   
    

 

 

   

 

 

   

 

 

 
     $ (9.2   $ (1.5   $ (19.2
    

 

 

   

 

 

   

 

 

 
Accrued Expenses (Tables)
Accrued expenses
     December 30,
2011
     December 31,
2010
 
     (In millions)  

Salaries and fringe benefits

   $         102.5       $           92.5   

Other accrued expenses

     214.9         123.0   
  

 

 

    

 

 

 

Total accrued expenses

   $ 317.4       $ 215.5   
  

 

 

    

 

 

 
Discontinued Operations (Tables)
   Years Ended  
     December 30,
2011 (a)
    December 31,
2010
    January 1,
2010
 

Net sales

   $         123.2      $         197.6      $         202.8   

Operating income (loss)

     13.4        (1.0     18.6   

(Loss) income from discontinued operations before tax

     (9.3     (0.9     18.8   

Income tax expense

     3.2        0.1        6.7   

(Loss) income from discontinued operations, net of tax

     (12.5     (1.0     12.1   

 

(a) Includes the results through the date of the divestiture on August 26, 2011, including the pre-tax loss on sale of business of $22.6 million ($21.0 million, net of tax).

   December 31,
2010
 

Assets of discontinued operations:

  

Accounts receivable

   $         29.4   

Inventories

     132.4   

Goodwill

     19.0   

Other assets(a)

     6.0   
  

 

 

 

Total assets of discontinued operations

   $ 186.8   
  

 

 

 

Liabilities of discontinued operations:

  

Accounts payable

   $ 9.4   

Accrued expenses(a)

     3.4   

Other liabilities

     1.8   
  

 

 

 

Total liabilities of discontinued operations

   $ 14.6   
  

 

 

 

(a) Certain assets and liabilities, primarily related to a legal accrual, were not reclassified to discontinued operations as they were retained by the Company. See Note 6. "Commitments and Contingencies" for further information.

Debt (Tables)
Debt
                 
(In millions)    December 30,
2011
     December 31,
2010
 

Long-term debt:

                 

Convertible senior notes due 2013

   $ 280.3       $ 264.2   

Senior notes due 2015

     200.0         200.0   

Accounts receivable securitization facility

     175.0         —     

Revolving lines of credit and other

     120.4         145.4   

Senior notes due 2014

     31.1         30.6   

Convertible notes due 2033

     —           48.5   
    

 

 

    

 

 

 

Total long-term debt

     806.8         688.7   

Short-term debt

     3.0         203.4   
    

 

 

    

 

 

 

Total debt

   $ 809.8       $ 892.1   
    

 

 

    

 

 

 
Commitments and Contingencies (Tables)
Minimum lease commitments under operating leases
         

2012

   $ 61.8   

2013

     49.0   

2014

     39.6   

2015

     28.5   

2016

     20.4   

2017 and thereafter

     43.7   
    

 

 

 

Total

   $ 243.0   
    

 

 

 
Income Taxes (Tables)
     Years Ended  
     December 30,
2011
    December 31,
2010
     January 1,
2010
 

Current:

       

Foreign

   $         28.3      $         21.0       $         18.2   

State

     8.1        4.0         (0.4

Federal

     59.2        24.1         23.6   
  

 

 

   

 

 

    

 

 

 
     95.6        49.1         41.4   

Deferred:

       

Foreign

     (14.9     0.4         (5.9

State

     1.7        2.3         0.2   

Federal

     20.4        18.9         4.1   
  

 

 

   

 

 

    

 

 

 
     7.2        21.6         (1.6
  

 

 

   

 

 

    

 

 

 

Income tax expense

   $ 102.8      $ 70.7       $ 39.8   
  

 

 

   

 

 

    

 

 

 
   Years Ended  
     December 30,
2011
    December
31, 2010
     January 1,
2010
 

Statutory tax expense

   $         106.2      $         63.1       $         (0.6

Increase (reduction) in taxes resulting from:

       

Nondeductible goodwill impairment loss

                    35.0   

State income taxes, net

     6.5        4.0         2.1   

Foreign tax effects

     (1.4     1.7         8.6   

Changes in valuation allowances(a)

     (11.3             (4.5

Other, net

     2.8        1.9         (0.8
  

 

 

   

 

 

    

 

 

 

Income tax expense

   $ 102.8      $ 70.7       $ 39.8   
  

 

 

   

 

 

    

 

 

 

(a) In 2011, the Company recorded a tax benefit of $11.3 million, net, related to changes in tax valuation allowances primarily in certain foreign jurisdictions. Approximately $7.4 million, net, of the tax benefit was a correction of an error from prior periods to reverse valuation allowances for deferred tax assets in certain foreign jurisdictions where sufficient evidence existed to support the realization of these deferred tax assets at a more likely than not level. The Company has determined the error is not material to previously issued financial statements, and the correction of these errors is not material to the results of operations for the fiscal year ended December 30, 2011.

     December 30,
2011
    December 31,
2010
 

Property, equipment, intangibles and other

   $         (21.5   $         (21.6

Accreted interest (Notes due 2033)

            (6.0
  

 

 

   

 

 

 

Gross deferred tax liabilities

     (21.5     (27.6

Deferred compensation and other postretirement benefits

     75.3        57.7   

Inventory reserves

     12.5        31.5   

Foreign NOL carryforwards and other

     33.7        21.8   

Allowance for doubtful accounts

     5.8        8.3   

Other

     16.6        10.8   
  

 

 

   

 

 

 

Gross deferred tax assets

     143.9        130.1   
  

 

 

   

 

 

 

Deferred tax assets, net of deferred tax liabilities

     122.4        102.5   

Valuation allowance

     (20.3     (18.8
  

 

 

   

 

 

 

Net deferred tax assets

   $ 102.1      $ 83.7   
  

 

 

   

 

 

 

Net current deferred tax assets

   $ 37.7      $ 50.3   

Net non-current deferred tax assets

     64.4        33.4   
  

 

 

   

 

 

 

Net deferred tax assets

   $ 102.1      $ 83.7   
  

 

 

   

 

 

 
     (in millions)  

Balance at January 2, 2009

   $         5.8   

Additions for tax positions of prior years

     4.0   

Reductions for tax positions of prior years

     (5.2
  

 

 

 

Balance at January 1, 2010

   $ 4.6   

Additions for tax positions of prior years

     1.9   

Reductions for tax positions of prior years

     (2.5
  

 

 

 

Balance at December 31, 2010

   $ 4.0   

Additions for tax positions of prior years

     20.2   

Reductions for tax positions of prior years

     (1.3
  

 

 

 

Balance at December 30, 2011

   $ 22.9   
  

 

 

 
Pension Plans, Post-Retirement Benefits and Other Benefits (Tables)

 

     Domestic Plans  
     December  30,
2011
    December 31,
2010
    Allocation Guidelines  
         Min     Target     Max  

Large capitalization U.S. stocks

     32.8     33.2     20     30     40

Small capitalization U.S. stocks

     16.8        17.3        15        20        25   

International stocks

     16.3        16.6        15        20        25   
  

 

 

   

 

 

     

 

 

   

Total equity securities

     65.9        67.1          70     

Fixed income investments

     29.9        30.3        25        30        35   

Other investments

     4.2        2.6                        
  

 

 

   

 

 

     

 

 

   
     100.0     100.0       100  
  

 

 

   

 

 

     

 

 

   

 

     Foreign Plans  
     December  30,
2011
    December  31,
2010
    Allocation Guidelines  
         Target  

Equity securities

     43.3     46.2     49

Fixed income investments

     48.7        44.9        43   

Other investments

     8.0        8.9        8   
  

 

 

   

 

 

   

 

 

 
     100.0     100.0     100.0
  

 

 

   

 

 

   

 

 

 
                                                 
     Pension Benefits  
     Domestic     Foreign     Total  
     2011     2010     2011     2010     2011     2010  
     (In millions)  

Change in projected benefit obligation:

                                                

Beginning balance

   $ 225.4      $ 197.9      $ 174.6      $ 175.9      $ 400.0      $ 373.8   

Service cost

     7.0        6.1        5.3        4.7        12.3        10.8   

Interest cost

     12.0        11.6        9.7        9.9        21.7        21.5   

Plan participants contributions

     —          —          0.4        0.3        0.4        0.3   

Actuarial loss (gain)

     49.7        15.3        11.1        (6.1     60.8        9.2   

Benefits paid

     (6.1     (6.1     (6.3     (5.6     (12.4     (11.7

Foreign currency exchange rate changes

     —          —          (2.0     (4.5     (2.0     (4.5

Other

     (0.3     0.6        —          —          (0.3     0.6   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 287.7      $ 225.4      $ 192.8      $ 174.6      $ 480.5      $ 400.0   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Change in plan assets at fair value:

                                                

Beginning balance

   $ 148.0      $ 127.3      $ 165.8      $ 149.5      $ 313.8      $ 276.8   

Actual (loss) return on plan assets

     5.7        19.9        9.1        15.0        14.8        34.9   

Company contributions

     10.4        6.9        9.8        10.0        20.2        16.9   

Plan participants contributions

     —          —          0.4        0.3        0.4        0.3   

Benefits paid

     (6.1     (6.1     (6.3     (5.6     (12.4     (11.7

Foreign currency exchange rate changes

     —          —          (1.7     (3.4     (1.7     (3.4
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending balance

   $ 158.0      $ 148.0      $ 177.1      $ 165.8      $ 335.1      $ 313.8   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Reconciliation of funded status:

                                                

Projected benefit obligation

   $ (287.7   $ (225.4   $ (192.8   $ (174.6   $ (480.5   $ (400.0

Plan assets at fair value

     158.0        148.0        177.1        165.8        335.1        313.8   
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funded status

   $ (129.7   $ (77.4   $ (15.7   $ (8.8   $ (145.4   $ (86.2
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
Included in the 2011 and 2010 funded status is accrued benefit cost of approximately $17.9 million and $13.0 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations.    

Noncurrent asset

   $ —        $ —        $ 5.3      $ 2.0      $ 5.3      $ 2.0   

Current liability

     (0.8     (0.6     —          —          (0.8     (0.6

Noncurrent liability

     (128.9     (76.8     (21.0     (10.8     (149.9     (87.6
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Funded status

   $ (129.7   $ (77.4   $ (15.7   $ (8.8   $ (145.4   $ (86.2
    

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Weighted-average assumptions used for measurement of the projected benefit obligation:

 

Discount rate

     4.37     5.53     4.84     5.43     4.56     5.49

Salary growth rate

     3.90     3.91     3.13     3.57     3.57     3.76

Pension Benefits  
     Domestic     Foreign     Total  
     2011     2010     2009     2011     2010     2009     2011     2010     2009  
     (In millions)  

Components of net periodic cost:

                  

Service cost

   $ 7.0      $ 6.1      $ 6.6      $ 5.3      $ 4.7      $ 4.0      $ 12.3      $ 10.8      $ 10.6   

Interest cost

     12.0        11.6        11.0        9.7        9.9        8.6        21.7        21.5        19.6   

Expected return on plan assets

     (11.8     (10.8     (9.9     (10.1     (8.9     (7.9     (21.9     (19.7     (17.8

Net amortization

     3.4        3.5        3.7        0.3        0.6        (0.1     3.7        4.1        3.6   

Curtailment loss

     0.6        —          —          —          —          —          0.6        —          —     
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net periodic cost

   $ 11.2      $ 10.4      $ 11.4      $ 5.2      $ 6.3      $ 4.6      $ 16.4      $ 16.7      $ 16.0

Weighted-average assumption used to measure net periodic cost:

 

Discount rate

     5.53     5.99     5.90     5.43     5.77     6.45     5.49     5.88     6.12

Expected return on plan assets

     8.00     8.50     8.50     5.93     6.02     6.02     6.91     7.16     7.26

Salary growth rate

     3.91     3.91     4.43     3.57     3.59     3.66     3.76     3.79     4.05
                                                                         
     Pension Assets  
     Domestic      Foreign      Total  
     Level 1      Level 2      Total      Level 1      Level 2      Total      Level 1      Level 2      Total  
     (In millions)  

Asset Categories:

                                                                                

Cash and short-term investments

   $ 6.6       $ —         $ 6.6       $ 1.4       $ —         $ 1.4       $ 8.0       $ —         $ 8.0   

Equity securities:

                                                                                

Domestic

     78.4         —           78.4         0.1         30.7         30.8         78.5         30.7         109.2   

International

     —           25.7         25.7         —           45.8         45.8         —           71.5         71.5   

Fixed income securities:

                                                                                

Domestic

     31.7         1.0         32.7         0.5         65.6         66.1         32.2         66.6         98.8   

Corporate bonds

     —           14.6         14.6         0.4         19.9         20.3         0.4         34.5         34.9   

Insurance funds

     —           —           —           —           12.2         12.2         —           12.2         12.2   

Other

     —           —           —           0.1         0.4         0.5         0.1         0.4         0.5   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 116.7       $ 41.3       $ 158.0       $ 2.5       $ 174.6       $ 177.1       $ 119.2       $ 215.9       $ 335.1   
    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 
                         
     Estimated Future Benefit
Payments
 
     Domestic      Foreign      Total  
     (In millions)  

2012

   $ 8.8       $ 5.7       $ 14.5   

2013

     8.1         5.7         13.8   

2014

     8.8         6.3         15.1   

2015

     9.4         6.2         15.6   

2016

     10.1         6.5         16.6   

2017-2021

     63.9         37.4         101.3   
    

 

 

    

 

 

    

 

 

 

Total

   $ 109.1       $ 67.8       $ 176.9   
    

 

 

    

 

 

    

 

 

 
Stockholder's Equity (Tables)
   Director
Stock
Units (1)
    Weighted
Average
Grant Date
Value (2)
     Employee
Stock
Units
    Weighted
Average
Grant Date
Value (2)
 
     (Units in thousands)  

Outstanding balance at January 2, 2009

     193.9      $ 40.14         582.6      $ 54.74   

Granted

     48.9        38.39         371.1        29.41   

Converted

     (2.7     46.91         (177.4     46.02   

Cancelled

                    (17.2     47.79   
  

 

 

      

 

 

   

Outstanding balance at January 1, 2010

     240.1        39.71         759.1        44.55   

Granted

     26.8        47.32         268.7        42.72   

Converted

     (37.2     38.14         (197.4     51.09   

Cancelled

                    (6.7     45.32   
  

 

 

      

 

 

   

Outstanding balance at December 31, 2010

     229.7        40.85         823.7        42.38   

Granted

     27.7        59.14         157.8        69.91   

Converted

     (7.2     45.74         (281.9     44.67   

Cancelled

                    (82.5     43.99   
  

 

 

      

 

 

   

Outstanding balance at December 30, 2011

     250.2      $ 42.74         617.1      $ 48.16   
  

 

 

      

 

 

   
(1)

Generally, stock units are included in the Company's common stock outstanding on the date of vesting as the conditions for conversion have been met. However, director units are considered convertible units if vested and the individual has elected to defer for conversion until a pre-arranged time selected by each individual. All of the director stock units outstanding are convertible.

(2)

Director and employee stock units are granted at no cost to the participants.

                                 
     Expected
Stock Price
Volatility
    Risk-Free
Interest Rate
    Expected
Dividend
Yield
     Average Expected
Life
 

2011 Grants

     37.9     2.4     —           6.13 years   

2010 Grants

     36.2     2.7     —           6.13 years   

2009 Grants

     35.4     2.7     —           7 years   
                 
     Non-vested
Shares
    Weighted-average
Grant  Date Fair Value
 
     (shares in thousands)  

Non-vested shares at December 31, 2010

     1,391.3      $ 32.82   

Granted

     233.7        56.46   

Vested

     (522.6     33.51   

Cancelled

     (134.5     34.71   
    

 

 

         

Non-vested shares at December 30, 2011

     967.9      $ 37.89   
    

 

 

         
Business Segments (Tables)
12 Months Ended
Dec. 30, 2011
Dec. 31, 2011
Business Segments [Abstract]
 
 
Segment Information
 
Summary of net sales by end market
 
Changes in Goodwill
 
                                 
     North
America
     Europe     Emerging
Markets
     Total  

2011

                                  

Net sales

   $ 4,302.5       $ 1,150.0      $ 694.4       $ 6,146.9   

Operating income

     307.7         15.7        39.4         362.8   

Depreciation

     14.5         5.6        2.0         22.1   

Amortization of intangibles

     5.2         6.1        0.1         11.4   

Tangible long-lived assets

     99.6         28.3        6.3         134.2   

Total assets

     2,015.9         622.3        395.8         3,034.0   

Capital expenditures

     18.3         5.2        2.9         26.4   
         

2010

                                  

Net sales

   $ 3,701.2       $ 1,008.4      $ 564.9       $ 5,274.5   

Operating income (loss)

     235.1         (0.9     33.0         267.2   

Depreciation

     14.7         5.6        2.2         22.5   

Amortization of intangibles

     5.0         6.2        0.1         11.3   

Tangible long-lived assets

     95.9         24.5        5.5         125.9   

Total assets

     2,043.9         586.7        302.7         2,933.3   

Capital expenditures

     16.6         1.9        1.1         19.6   
         

2009

                                  

Net sales

   $ 3,397.8       $ 887.9      $ 493.9       $ 4,779.6   

Operating income (loss)

     175.1         (120.0     29.7         84.8   

Depreciation

     15.0         7.0        2.1         24.1   

Amortization of intangibles

     6.3         6.6        0.1         13.0   

Tangible long-lived assets

     92.2         32.5        5.5         130.2   

Total assets

     1,869.5         545.6        256.6         2,671.7   

Capital expenditures

     17.0         2.9        2.0         21.9   
                                                 
     Years Ended  
     December 30, 2011     December 31, 2010     January 1, 2010  
     Net Sales      % of Total
Net Sales
    Net Sales      % of Total
Net Sales
    Net Sales      % of Total
Net Sales
 

Enterprise Cabling and Security

   $ 3,245.9         52.8   $ 2,912.6         55.2   $ 2,744.1         57.4

Electrical Wire and Cable

     1,949.5         31.7     1,602.5         30.4     1,385.7         29.0

OEM Supply

     951.5         15.5     759.4         14.4     649.8         13.6
    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Net Sales

   $ 6,146.9         100.0   $ 5,274.5         100.0   $ 4,779.6         100.0
    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

     North
America
    Europe (a)     Emerging
Markets
    Total  

Balance as of January 1, 2010(b)

   $         316.3      $         11.7      $         10.7      $         338.7   

Acquisition related (c)

     15.3                      15.3   

Foreign currency translation

     0.8        (0.7     1.2        1.3   
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2010

   $ 332.4      $ 11.0      $ 11.9      $ 355.3   

Acquisition related(c)

     (2.8                   (2.8

Foreign currency translation

     (0.4     (0.1     (0.3     (0.8
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 30, 2011

   $ 329.2      $ 10.9      $ 11.6      $ 351.7   
  

 

 

   

 

 

   

 

 

   

 

 

 

 

(a)

Europe's goodwill balance includes $100.0 million of accumulated impairment losses for all periods presented.

(b)

As a result of the disposition of the Company's Aerospace business in the third quarter of 2011, goodwill of $19.0 million allocated to the North America and Europe reportable segments was written off and prior period amounts were reclassified to "Assets of discontinued operations" on the Company's Consolidated Balance Sheet as of January 1, 2010.

(c)

In the year ended December 30, 2011, the Company adjusted goodwill recognized in 2010 by $2.8 million, related to the acquisition of Clark Security Products, Inc and General Lock, LLC (collectively "Clark") for which the Company paid $36.4 million in 2010 (offset in 2011 by $1.6 million which was returned to the Company as a result of net working capital adjustments). The purchase price, as well as the allocation thereof, was finalized in 2011.

Summarized Financial Information of Anixter, Inc. (Tables)
   December 30,
2011
     December 31,
2010
 

Assets:

     

Current assets(a)

   $         2,404.0       $         2,309.1   

Property, equipment and capital leases, net

     102.3         98.3   

Goodwill

     351.7         355.3   

Other assets

     190.2         187.0   
  

 

 

    

 

 

 
   $ 3,048.2       $ 2,949.7   
  

 

 

    

 

 

 

Liabilities and Stockholder's Equity:

     

Current liabilities(a)

   $ 1,023.3       $ 1,069.0   

Subordinated notes payable to parent

     6.0         8.5   

Long-term debt

     543.9         394.3   

Other liabilities

     198.2         159.1   

Stockholder's equity

     1,276.8         1,318.8   
  

 

 

    

 

 

 
   $ 3,048.2       $ 2,949.7   
  

 

 

    

 

 

 

 

(a)

Includes assets and liabilities related to discontinued operations of $186.8 and $14.6, respectively, at December 31, 2010 (see Note 4. "Discontinued Operations.")

     Years Ended  
     December 30,
2011
    December 31,
2010
    January 1,
2010
 

Net sales

   $         6,146.9      $         5,274.5      $         4,779.6   

Operating income

   $ 368.3      $ 273.0      $ 90.5   

Income from continuing operations before income taxes

   $ 328.0      $ 204.2      $ 21.1   

Net (loss) income from discontinued operations

   $ (12.5   $ (1.0   $ 12.1   

Net income (loss)

   $ 203.3      $ 123.2      $ (15.4
Selected Quarterly Financial Data (Tables)
Summary of Quarterly Financial Data
(In millions, except per share amounts)    First
Quarter (1)
     Second
Quarter
     Third
Quarter
(2)
    Fourth
Quarter
(3)
 

Year ended December 30, 2011

          

Net sales

   $         1,470.8       $         1,565.3       $         1,611.8      $         1,499.0   

Cost of goods sold

     1,132.1         1,207.3         1,249.8        1,150.3   

Operating income

     77.5         92.0         101.7        91.6   

Income from continuing operations before income taxes

     65.4         77.6         83.3        77.2   

Net income from continuing operations

     40.9         48.4         61.6        49.8   

Income (loss) from discontinued operations, net

     3.4         3.7         (18.1     (1.5

Net income

   $ 44.3       $ 52.1       $ 43.5      $ 48.3   

Income (loss) per share

          

Basic:

          

Continuing operations

   $ 1.19       $ 1.39       $ 1.80      $ 1.50   

Discontinued operations

   $ 0.10       $ 0.11       $ (0.53   $ (0.05

Net income

   $ 1.29       $ 1.50       $ 1.27      $ 1.45   

Diluted:

          

Continuing operations

   $ 1.13       $ 1.33       $ 1.78      $ 1.49   

Discontinued operations

   $ 0.10       $ 0.10       $ (0.52   $ (0.05

Net income

   $ 1.23       $ 1.43       $ 1.26      $ 1.44   

Stock price range:

          

High

   $ 73.56       $ 76.16       $ 68.15      $ 62.99   

Low

   $ 59.52       $ 60.54       $ 47.38      $ 44.52   

Close

   $ 68.30       $ 66.10       $ 47.44      $ 59.64   

 

(1)

In the first quarter of 2011, the Company recorded a pre-tax charge of $5.3 million related to facility consolidations and headcount reductions in Europe. See Note 3. "Restructuring Charge."

(2)

In the third quarter of 2011, the Company recorded a tax benefit of $8.8 million which was primarily related to the reversal of deferred income tax valuation allowances in certain foreign jurisdictions. See Note 7. "Income Taxes."

(3)

During the fourth quarter of 2011, the Company recorded a tax benefit of $2.0 million primarily related to the reversal of deferred income tax valuation allowances in certain foreign jurisdictions.

 

(In millions, except per share amounts)    First
Quarter
(1)
     Second
Quarter
(2)
     Third
Quarter
(3)
     Fourth
Quarter
(4)
 

Year ended December 31, 2010

           

Net sales

   $     1,221.8       $     1,321.3       $     1,344.9       $     1,386.5   

Cost of goods sold

     945.8         1,020.7         1,035.8         1,064.6   

Operating income

     51.4         66.5         70.8         78.5   

Income from continuing operations before income taxes

     4.3         53.6         57.3         65.0   

Net income from continuing operations

     2.6         32.2         32.6         42.1   

Income (loss) from discontinued operations, net

     3.3         2.4         3.9         (10.6

Net income

   $ 5.9       $ 34.6       $ 36.5       $ 31.5   

Income (loss) per share

           

Basic:

           

Continuing operations

   $ 0.08       $ 0.95       $ 0.96       $ 1.23   

Discontinued operations

   $ 0.09       $ 0.07       $ 0.11       $ (0.31

Net income

   $ 0.17       $ 1.02       $ 1.07       $ 0.92   

Diluted:

           

Continuing operations

   $ 0.07       $ 0.91       $ 0.92       $ 1.18   

Discontinued operations

   $ 0.09       $ 0.07       $ 0.11       $ (0.30

Net income

   $ 0.16       $ 0.98       $ 1.03       $ 0.88   

Stock price range:

           

High

   $ 48.85       $ 54.16       $ 54.99       $ 61.17   

Low

   $ 38.42       $ 41.31       $ 41.27       $ 52.10   

Close

   $ 47.16       $ 41.90       $ 54.28       $ 59.73   

 

(1)

During the first quarter of 2010, the Company repurchased a portion of its Notes due 2014 which resulted in the recognition of a pre-tax loss of $30.5 million ($18.9 million, net of tax).

(2)

Net income in the second quarter includes a foreign exchange gain of $2.1 million ($0.8 million, net of tax) due to the remeasurement of Venezuela's bolivar-denominated balance sheet at the new government rate. During the second quarter of 2010, the Company repurchased a portion of its Notes due 2033 which resulted in the recognition of a pre-tax gain of $0.8 million ($0.5 million, net of tax).

(3)

During third quarter of 2010, the Company repurchased a portion of its Notes due 2014 and 2033 which resulted in the recognition of a pre-tax loss of $2.7 million ($1.7 million, net of tax).

(4)

During the fourth quarter of 2010, the Company repurchased a portion of its Notes due 2033 which resulted in the recognition of a pre-tax gain of $0.5 million ($0.3 million, net of tax). Also during the fourth quarter of 2010, the Company recorded a tax benefit of $1.3 million for the reversal of prior year foreign taxes.

Summary of Significant Accounting Policies (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Convertible debt instruments
 
 
Net carrying amount of liability component
$ 806.8 
$ 688.7 
Convertible notes due 2033 [Member]
 
 
Convertible debt instruments
 
 
Carrying amount of the equity component
 
(45.7)
Principal amount of the liability component
 
100.2 
Unamortized discount of liability component
 
(51.7)
Net carrying amount of liability component
48.5 
Convertible notes Due 2013 [Member]
 
 
Convertible debt instruments
 
 
Carrying amount of the equity component
53.3 
53.3 
Principal amount of the liability component
300.0 
300.0 
Unamortized discount of liability component
(19.7)
(35.8)
Net carrying amount of liability component
280.3 
264.2 
Remaining amortization period of discount
14 months 
 
Conversion price
$ 59.78 
 
Number of shares to be issued upon conversion
5.0 
 
If-converted value exceeds principal amount
$ 0 
 
Summary of Significant Accounting Policies (Details 1) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Summary of foreign exchange gains (losses) reflected in Consolidated Statements of Operations
 
 
 
Remeasurement of multicurrency balances
$ (0.6)
$ (1.7)
$ (11.2)
Revaluation of foreign currency forward contracts
(4.0)
1.2 
(8.1)
Hedge costs
(2.5)
(2.0)
(3.9)
Total foreign exchange loss
$ (7.1)
$ (2.5)
$ (23.2)
Summary of Significant Accounting Policies (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Other, net (loss) gain:
 
 
 
Foreign exchange
$ (7.1)
$ (2.5)
$ (23.2)
Cash surrender value of life insurance policies
(0.9)
3.0 
3.4 
Settlement of interest rate swaps
 
 
(2.1)
Other
(1.2)
(2.0)
2.7 
Total
$ (9.2)
$ (1.5)
$ (19.2)
Summary of Significant Accounting Policies (Details Textual)
Share data in Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jul. 2, 2010
USD ($)
Dec. 30, 2011
USD ($)
years
Dec. 31, 2010
USD ($)
Jan. 1, 2010
USD ($)
Jan. 2, 2009
USD ($)
Dec. 30, 2011
Equipment and Computer Software [Member]
USD ($)
Dec. 31, 2010
Equipment and Computer Software [Member]
USD ($)
Dec. 30, 2011
Buildings and Leasehold Improvements [Member]
USD ($)
Dec. 31, 2010
Buildings and Leasehold Improvements [Member]
USD ($)
Dec. 30, 2011
Europe [Member]
USD ($)
Dec. 31, 2010
Europe [Member]
USD ($)
Jan. 1, 2010
Europe [Member]
USD ($)
Jul. 3, 2009
Europe [Member]
USD ($)
Dec. 30, 2011
Convertible notes due 2033 [Member]
USD ($)
Dec. 31, 2010
Convertible notes due 2033 [Member]
USD ($)
Jan. 1, 2010
Convertible notes due 2033 [Member]
USD ($)
Dec. 30, 2011
Convertible notes Due 2013 [Member]
USD ($)
Dec. 31, 2010
Convertible notes Due 2013 [Member]
USD ($)
Jan. 1, 2010
Convertible notes Due 2013 [Member]
USD ($)
Dec. 30, 2011
Stock Option and Stock Units [Member]
Dec. 31, 2010
Stock Option and Stock Units [Member]
Jan. 1, 2010
Stock Option and Stock Units [Member]
Dec. 30, 2011
Interest Rate Swap One Agreement GBP [Member]
GBP (£)
Summary Of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Property and Equipment, net
 
$ 88,300,000 
$ 83,200,000 
 
 
$ 62,900,000 
$ 57,500,000 
$ 25,400,000 
$ 25,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Goodwill
 
351,700,000 
355,300,000 
338,700,000 
 
 
 
 
 
10,900,000 
11,000,000 
11,700,000 
12,100,000 
 
 
 
 
 
 
 
 
 
 
Accumulated goodwill impairment loss
 
 
 
 
 
 
 
 
 
100,000,000 
 
100,000,000 
 
 
 
 
 
 
 
 
 
 
 
Convertible notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
300,000,000 
 
 
 
 
 
 
Percentage of zero coupon convertible notes due 2033
 
 
 
 
 
 
 
 
 
 
 
 
 
3.25% 
 
 
 
 
 
 
 
 
 
Expected life of convertible notes
 
 
 
 
 
 
 
 
 
 
 
 
 
4 years 
 
 
6 years 
 
 
 
 
 
 
Condition for convertible debt if convertible
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum price of common stock required for conversion of debt
 
$ 77.71 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 77.71 
 
 
 
 
 
 
Debt instrument nonconvertible effective interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
6.10% 
 
 
7.10% 
 
 
 
 
 
 
Non-cash interest cost recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,100,000 
15,100,000 
14,100,000 
 
 
 
 
Cash interest cost recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
500,000 
2,900,000 
5,200,000 
3,000,000 
3,000,000 
3,000,000 
 
 
 
 
Fiscal year term
 
 
52 weeks 
52 weeks 
 
 
 
 
 
 
 
 
 
 
 
 
52 weeks 
 
 
 
 
 
 
Notional amount of interest rate swap agreements outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15,000,000 
Total additional shares included in the computation of diluted earnings per share
 
0.4 
0.5 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4 
0.5 
 
 
Additional shares excluded from computation of diluted earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.4 
0.4 
0.5 
 
Additional shares related to Notes due
 
 
 
 
 
 
 
 
 
 
 
 
 
0.2 
0.9 
 
0.3 
 
 
 
 
 
 
Minimum trading days for surrendering securities for conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
Maximum trading days for surrendering securities for conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
Summary of Significant Accounting Policies (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for doubtful accounts
 
19,500,000 
23,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Provision for doubtful accounts
 
8,000,000 
12,800,000 
11,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Inventories
 
1,070,700,000 
870,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net of inventory reserves
 
61,200,000 
66,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated useful life, Minimum (in years)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Estimated useful life, Maximum (in years)
 
10 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Depreciation expense
 
22,100,000 
22,500,000 
24,100,000 
24,100,000 
 
 
 
 
5,600,000 
5,600,000 
7,000,000 
 
 
 
 
 
 
 
 
 
 
 
Capitalized costs
 
27,900,000 
22,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets, useful life, minimum
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Finite-lived intangible assets, useful life, maximum
 
15 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gross carrying value of intangible assets
 
130,400,000 
130,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accumulated amortization
 
60,500,000 
50,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net intangible assets
 
69,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Intangible amortization expense related to net intangible assets
 
10,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange losses
 
7,100,000 
2,500,000 
23,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate of foreign currency denominated accounts not hedged
 
100.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign currency forward contracts outstanding
 
161,300,000 
223,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserves for returns and credits provided to customers
 
30,700,000 
29,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advertising and promotion costs
 
12,100,000 
10,000,000 
9,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shipping and handling costs
 
108,400,000 
94,600,000 
84,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange gain (loss) due to the repatriation of cash and remeasurement value
2,100,000 
7,100,000 
2,100,000 
13,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other foreign exchange losses
 
 
4,600,000 
9,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gain (Loss) in life insurance policies due to market performance
 
(900,000)
3,000,000 
3,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss due to cancellation of interest rate hedging contracts
 
 
 
2,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Income related to expiration of liabilities associated with a prior asset sale
 
 
 
$ 3,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage threshold for tax benefit recognized
 
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The Notes due 2013 are convertible when the closing price of the Company's common stock for at least 20 trading days in the 30 consecutive trading days ending on the last trading day of the immediately preceding fiscal quarter is more than $77.71.
Accrued Expenses (Details) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Accrued expenses
 
 
Salaries and fringe benefits
$ 102.5 
$ 92.5 
Other accrued expenses
214.9 
123.0 
Total accrued expenses
$ 317.4 
$ 215.5 
Accrued Expenses (Details Textual) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Accrued Expenses (Textual) [Abstract]
 
 
Accrued expenses
$ 317.4 
$ 215.5 
Restructuring Charge (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Jan. 1, 2010
Restructuring Charge (Textual) [Abstract]
 
 
Pre tax restructuring charges
$ 5.3 
 
Expected restructuring charges
0.8 
 
Severance cost
 
$ 5.7 
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Summary of components of discontinued operation reflected in Consolidated Statement of Operations
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
$ 123.2 
$ 197.6 
$ 202.8 
Operating income (loss)
 
 
 
 
 
 
 
 
13.4 
(1.0)
18.6 
(Loss) income from discontinued operations before tax
(2.5)
 
 
 
 
 
 
 
(9.3)
(0.9)
18.8 
Income tax expense
 
 
 
 
 
 
 
 
3.2 
0.1 
6.7 
(Loss) income from discontinued operations, net of tax
$ (1.5)
$ (18.1)
$ 3.7 
$ 3.4 
$ (10.6)
$ 3.9 
$ 2.4 
$ 3.3 
$ (12.5)
$ (1.0)
$ 12.1 
Discontinued Operations (Details 1) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Assets of discontinued operations:
 
 
Accounts receivable
 
$ 29.4 
Inventories
 
132.4 
Goodwill
 
19.0 
Other assets
 
6.0 
Total assets of discontinued operations
186.8 
Liabilities of discontinued operations:
 
 
Accounts payable
 
9.4 
Accrued expenses
 
3.4 
Other liabilities
 
1.8 
Total liabilities of discontinued operations
$ 0 
$ 14.6 
Discontinued Operations (Details Textual) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Dec. 31, 2013
Discontinued Operations (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
Sale price
 
 
 
 
 
 
 
 
$ 155.0 
 
 
 
Cash received up on sale of discontinued operations
 
 
 
 
 
 
 
 
143.6 
 
 
 
Goodwill written off
 
 
 
 
 
 
 
 
19.0 
 
 
 
Additional targets achieved on discontinued operations
 
 
 
 
 
 
 
 
 
 
 
30.0 
Loss on sale of business
 
 
 
 
 
 
 
 
22.6 
 
 
 
Loss on sale of business, net of tax
 
 
 
 
 
 
 
 
21.0 
 
 
 
Loss from discontinued operations
$ 1.5 
$ 18.1 
$ (3.7)
$ (3.4)
$ 10.6 
$ (3.9)
$ (2.4)
$ (3.3)
$ 12.5 
$ 1.0 
$ (12.1)
 
Debt (Details) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Long-term debt:
 
 
Total long-term debt
$ 806.8 
$ 688.7 
Short-term debt
3.0 
203.4 
Total debt
809.8 
892.1 
Convertible senior notes due 2013 [Member]
 
 
Long-term debt:
 
 
Total long-term debt
280.3 
264.2 
Senior notes due 2015 [Member]
 
 
Long-term debt:
 
 
Total long-term debt
200.0 
200.0 
Accounts receivable securitization facility [Member]
 
 
Long-term debt:
 
 
Total long-term debt
175.0 
Revolving lines of credit and other [Member]
 
 
Long-term debt:
 
 
Total long-term debt
120.4 
145.4 
Senior notes due 2014 [Member]
 
 
Long-term debt:
 
 
Total long-term debt
31.1 
30.6 
Convertible notes due 2033 [Member]
 
 
Long-term debt:
 
 
Total long-term debt
$ 0 
$ 48.5 
Debt (Details Textual) (USD $)
12 Months Ended 3 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Dec. 30, 2011
Dec. 31, 2011
Dec. 31, 2010
Jan. 1, 2010
Dec. 30, 2011
Minimum [Member]
Dec. 30, 2011
Maximum [Member]
Dec. 31, 2010
Convertible notes due 2033 [Member]
Jul. 2, 2010
Convertible notes due 2033 [Member]
Dec. 30, 2011
Convertible notes due 2033 [Member]
Dec. 31, 2010
Convertible notes due 2033 [Member]
Jan. 1, 2010
Convertible notes due 2033 [Member]
Dec. 30, 2011
10% Senior Notes Due 2014 [Member]
Dec. 31, 2010
10% Senior Notes Due 2014 [Member]
Jan. 1, 2010
10% Senior Notes Due 2014 [Member]
Mar. 31, 2009
10% Senior Notes Due 2014 [Member]
Dec. 30, 2011
Convertible senior notes due 2013 [Member]
Dec. 31, 2010
Convertible senior notes due 2013 [Member]
Feb. 28, 2007
Convertible senior notes due 2013 [Member]
Dec. 30, 2011
Senior notes due 2015 [Member]
Dec. 31, 2010
Senior notes due 2015 [Member]
Dec. 30, 2011
Senior notes due 2014 [Member]
Dec. 31, 2010
Senior notes due 2014 [Member]
Dec. 30, 2011
Accounts receivable securitization facility [Member]
Dec. 31, 2010
Accounts receivable securitization facility [Member]
Dec. 30, 2011
Revolving Lines of Credit Agreement [Member]
Dec. 31, 2010
Revolving Lines of Credit Agreement [Member]
Dec. 30, 2011
Revolving lines of credit and other [Member]
Dec. 31, 2010
Revolving lines of credit and other [Member]
Dec. 31, 2010
3.25% Convertible Notes Due 2033 [Member]
Dec. 30, 2011
Fixed Rate Debt [Member]
Dec. 31, 2010
Fixed Rate Debt [Member]
Dec. 30, 2011
Variable Rate Debt [Member]
Dec. 31, 2010
Variable Rate Debt [Member]
Dec. 30, 2011
Parent Company [Member]
Dec. 31, 2010
Parent Company [Member]
Jan. 1, 2010
Parent Company [Member]
Line of Credit Facility [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement of Notes due 2033 in stock
 
 
 
 
 
 
 
 
$ 14,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reduction of accreted value of convertible debt, debt component
 
 
 
 
 
 
 
 
48,900,000 
200,700,000 
83,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retired amount of Senior Notes due
 
 
165,500,000 
26,500,000 
 
 
 
 
 
119,600,000 
90,800,000 
 
165,500,000 
27,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retired remaining 10% Senior Notes due 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
1,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum trading days for surrendering securities for conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
30 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum period for security conversion for corporate transactions before effective date of transaction
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average daily conversion values conversion period
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Conversion rate adjustments distribution expiry
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
45 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Period of conversion for trading price of notes
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, Maturity Date
 
 
 
 
 
 
 
 
 
 
 
Mar. 15, 2014 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Committed, unused available credit lines
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
313,000,000 
 
 
 
 
 
 
 
 
 
Line of credit facility, Amount outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
111,000,000 
131,100,000 
120,400,000 
145,400,000 
 
 
 
 
 
 
 
 
Line of Credit Facility Maximum Borrowing Capacity
275,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
400,000,000 
 
 
 
 
 
 
 
 
 
 
 
Size of the credit facility after amendment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
275,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount that can be distributed
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
152,700,000 
 
 
Debt instrument, issuance date description
 
 
 
 
 
 
 
 
 
 
 
March 2009 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unused capacity fees, utilization dependent low range
 
 
 
 
0.45% 
0.55% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument, face amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
200,000,000 
1,000 
 
300,000,000 
200,000,000 
 
 
 
 
 
 
 
 
 
48,500,000 
583,200,000 
672,800,000 
 
 
 
 
 
Debt instrument, interest rate
 
 
 
 
 
 
 
 
3.25% 
 
 
10.00% 
 
 
 
1.00% 
 
 
5.95% 
 
 
10.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unused capacity fees, utilization dependent high range
 
 
 
 
0.575% 
0.60% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis spread added to base reference funding cost to compute interest rate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
90.00% 
115.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum trading days for surrendering securities for conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
20 days 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum rate of sale of common stock on conversion price per share for surrendering securities for conversion
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
130.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Maximum rate of trading price on closing price of common stock for conversion on trading price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
98.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loss on retirement of debt
 
 
31,900,000 
1,100,000 
 
 
(500,000)
(800,000)
 
 
 
180,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(100,000)
(1,400,000)
(3,600,000)
Minimum rate of sale price of common stock for security conversion during distributions
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt conversion converted instrument rate shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16.727 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Adjusted conversion rate, shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt
806,800,000 
 
688,700,000 
 
 
 
48,500,000 
 
48,500,000 
 
31,100,000 
30,600,000 
 
 
280,300,000 
264,200,000 
 
200,000,000 
200,000,000 
31,100,000 
30,600,000 
175,000,000 
 
 
120,400,000 
145,400,000 
100,200,000 
511,400,000 
543,300,000 
298,400,000 
348,800,000 
 
 
 
Debt instrument, conversion trigger price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 59.78 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Call options, exercise price
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 59.78 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement of Notes
 
 
 
 
 
 
 
 
93,800,000 
67,000,000 
60,100,000 
 
133,700,000 
23,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt instrument frequency of interest payment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
payable semi-annually on March 1 and September 1 of each year 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Retirement of Convertible Notes due 2033 - equity component
 
 
 
 
 
 
 
 
44,900,000 
54,000,000 
34,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual maturities of debt, current year
3,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual maturities of debt, year two
455,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual maturities of debt, year three
31,100,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual maturities of debt, year four
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Annual maturities of debt, year five
119,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, fair value
881,600,000 
 
1,021,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, interest paid
31,600,000 
 
36,400,000 
37,200,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term debt, weighted average amount outstanding
988,000,000 
 
845,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted-average cost of borrowings
5.10% 
 
6.30% 
6.70% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Current leverage ratio applicable margin
2.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of credit facility, borrowings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
111,000,000 
131,100,000 
120,400,000 
145,400,000 
 
 
 
 
 
 
 
 
Long term borrowings maturity period
12 months 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revolving lines of credit, maturity date description
April 2016 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long term borrowings under other bank revolving lines of credit
9,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated fixed charge coverage ratio
451.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Lines of credit agreement, fixed charge coverage ratio
250.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated leverage ratio maximum limit
325.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated leverage ratio
135.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Base reference amount added to specified percent of company's cumulative net income to compute requirement of debt instrument covenant
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percent of company's cumulative net income added to base reference amount to compute requirement of debt instrument covenant
50.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchases of common stock for treasury
107,500,000 
 
41,200,000 
34,900,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
107,500,000 
41,200,000 
34,900,000 
Proforma leverage ratio
275.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Minimum unrestricted domestic cash balance plus availability under revolving credit agreement and accounts receivable securitization facility
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term borrowings under other miscellaneous facilities
14,300,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Yield to maturity rate of senior notes
12.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Rate of redemption of senior notes
35.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Redemption price rate on principal amount
110.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amortization of discount commission and expenses
4,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt
3,000,000 
 
203,400,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Receivables Sold
524,600,000 
 
407,800,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance costs
4,200,000 
 
300,000 
6,700,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Short-term debt, average outstanding amount
175,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercise price of warrants
$ 77.98 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Purchase of call options, common stock coverage, shares
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Warrants, shares adjusted
5,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt conversion converted instrument rate Per share
$ 77.71 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Carrying amount of liabilities, consolidated VIE
175,000,000 
 
200,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liquidity termination date of the program
 
May 2013 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Former program maturity date
July 2011 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares to be convertible for principal slab amount
16.727 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal slab amount for conversion of shares
$ 1,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commitments and Contingencies (Details) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Minimum lease commitments under operating leases
 
2012
$ 61.8 
2013
49.0 
2014
39.6 
2015
28.5 
2016
20.4 
2017 and thereafter
43.7 
Total
$ 243.0 
Commitments and Contingencies (Details Textual) (USD $)
In Millions, unless otherwise specified
1 Months Ended 3 Months Ended 12 Months Ended
Jan. 29, 2010
May 31, 2009
Dec. 30, 2011
Jul. 1, 2011
Dec. 31, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Commitments and Contingencies (Textual) [Abstract]
 
 
 
 
 
 
 
 
Rental expense
 
 
 
 
 
$ 82.1 
$ 76.4 
$ 78.2 
Aggregate future minimum rentals to be received under non-cancelable subleases
 
 
1.7 
 
 
1.7 
 
 
Claim for damages made by Raytheon
 
26 
 
 
 
 
 
 
Interim award against the company by the arbitration panel
 
 
 
 
20.8 
 
20.8 
 
Interest Cost associated with unfavorable arbitration ruling
 
 
 
 
10.00% 
 
 
 
Fees and arbitration proceeding costs
 
 
 
1.5 
 
 
 
 
Pre-tax charge
 
 
 
 
20.0 
 
 
 
Amended complaint seeks unspecified damages on behalf of persons who purchased common stock
between January 29 and October 20, 2008 
 
 
 
 
 
 
 
Operating Leases expiration
 
 
 
 
 
various dates through 2027 
 
 
Additional amount recorded in discontinued operations
 
 
$ 2.5 
 
 
$ 9.3 
$ 0.9 
$ (18.8)
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Current:
 
 
 
Foreign
$ 28.3 
$ 21.0 
$ 18.2 
State
8.1 
4.0 
(0.4)
Federal
59.2 
24.1 
23.6 
Total current income taxes
95.6 
49.1 
41.4 
Deferred:
 
 
 
Foreign
(14.9)
0.4 
(5.9)
State
1.7 
2.3 
0.2 
Federal
20.4 
18.9 
4.1 
Total deferred income taxes
7.2 
21.6 
(1.6)
Income tax expense
$ 102.8 
$ 70.7 
$ 39.8 
Income Taxes (Details 1) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Reconciliation of tax provision at federal statutory rate to provision for income
 
 
 
 
 
Statutory tax expense
 
 
$ 106.2 
$ 63.1 
$ (0.6)
Increase (reduction) in taxes resulting from:
 
 
 
 
 
Nondeductible goodwill impairment loss
 
 
   
   
35.0 
State income taxes, net
 
 
6.5 
4.0 
2.1 
Foreign tax effects
 
 
(1.4)
1.7 
8.6 
Changes in valuation allowances
2.0 
8.8 
(11.3)
   
(4.5)
Other, net
 
 
2.8 
1.9 
(0.8)
Income tax expense
 
 
$ 102.8 
$ 70.7 
$ 39.8 
Income Taxes (Details 2) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Components of deferred tax assets and liabilities
 
 
Property, equipment, intangibles and other
$ (21.5)
$ (21.6)
Accreted interest (Notes due 2033)
 
(6.0)
Gross deferred tax liabilities
(21.5)
(27.6)
Deferred compensation and other postretirement benefits
75.3 
57.7 
Inventory reserves
12.5 
31.5 
Foreign NOL carryforwards and other
33.7 
21.8 
Allowance for doubtful accounts
5.8 
8.3 
Other
16.6 
10.8 
Gross deferred tax assets
143.9 
130.1 
Deferred tax assets, net of deferred tax liabilities
122.4 
102.5 
Valuation allowance
(20.3)
(18.8)
Net deferred tax assets
102.1 
83.7 
Net current deferred tax assets
37.7 
50.3 
Net non-current deferred tax assets
$ 64.4 
$ 33.4 
Income Taxes (Details 3) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Reconciliation of the beginning and ending amount of unrecognized tax benefits
 
 
 
Beginning Balance
$ 4.0 
$ 4.6 
$ 5.8 
Additions for tax positions of prior years
20.2 
1.9 
4.0 
Reductions for tax positions of prior years
(1.3)
(2.5)
(5.2)
Ending Balance
$ 22.9 
$ 4.0 
$ 4.6 
Income Taxes (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Income Taxes [Line Items]
 
 
 
Operating Loss Carryforwards
$ 110.0 
 
 
Income Taxes (Textual) [Abstract]
 
 
 
Income before income taxes, Domestic
204.5 
113.8 
79.6 
Income before income taxes and goodwill impairment loss
99.0 
66.4 
18.8 
Statutory corporate federal tax rate
35.00% 
 
 
Payments for income taxes, net
41.9 
61.9 
56.2 
Undistributed earnings of foreign subsidiaries
432.5 
 
 
Undistributed earnings, U.S. federal income tax
50.0 
 
 
Undistributed earnings, foreign jurisdiction
26.7 
 
 
Reversal of tax benefit on equity component of convertible debt repurchases (see Note 7.) net income
 
18.7 
18.7 
Interest and penalties related to taxes
 
1.4 
 
Unrecognized tax benefit, for payment of interest and penalties
1.3 
 
 
Unrecognized tax benefit accrual, for payment of interest and penalties
 
1.9 
 
Unrecognized tax benefit that would effect effective tax rate in next twelve months
3.8 
 
 
Net tax benefit from correction of error from prior periods
7.4 
 
 
Tax benefit related to reversal of valuation allowance
11.3 
 
 
Reductions for tax positions of prior years
(1.3)
(2.5)
(5.2)
Reserves for uncertain tax positions, including interest and penalties
24.2 
 
 
Accrued taxes payable
18.7 
 
 
Indefinite [Member]
 
 
 
Income Taxes [Line Items]
 
 
 
Operating Loss Carryforwards
$ 98.0 
 
 
Pension Plans, Post-Retirement Benefits and Other Benefits (Details)
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
100.00% 
100.00% 
Allocation Guidelines, Target, Total
100.00% 
 
Pension Plans, Foreign [Member]
 
 
Allocation of Plan Assets
 
 
Allocation Guidelines, Target, Total
100.00% 
 
Equity Securities [Member] |
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
65.90% 
67.10% 
Allocation Guidelines, Target
70.00% 
 
Equity Securities [Member] |
Pension Plans, Foreign [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
43.30% 
46.20% 
Allocation Guidelines, Target
49.00% 
 
Fixed Income Investments [Member] |
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
29.90% 
30.30% 
Allocation Guidelines, Fixed income investments, Minimum
25.00% 
 
Allocation Guidelines, Fixed income investments, Target
30.00% 
 
Allocation Guidelines, Fixed income investments, Maximum
35.00% 
 
Fixed Income Investments [Member] |
Pension Plans, Foreign [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
48.70% 
44.90% 
Allocation Guidelines, Fixed income investments, Target
43.00% 
 
Other Investments [Member] |
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
4.20% 
2.60% 
Other Investments [Member] |
Pension Plans, Foreign [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
8.00% 
8.90% 
Allocation Guidelines, Other investments, Target
8.00% 
 
Large capitalization U.S. stocks [Member] |
Equity Securities [Member] |
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
32.80% 
33.20% 
Allocation Guidelines, Minimum
20.00% 
 
Allocation Guidelines, Target
30.00% 
 
Allocation Guidelines, Maximum
40.00% 
 
Small capitalization U.S. stocks [Member] |
Equity Securities [Member] |
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
16.80% 
17.30% 
Allocation Guidelines, Minimum
15.00% 
 
Allocation Guidelines, Target
20.00% 
 
Allocation Guidelines, Maximum
25.00% 
 
International stocks [Member] |
Equity Securities [Member] |
Pension Plans, Domestic [Member]
 
 
Allocation of Plan Assets
 
 
Allocation of Plan Assets
16.30% 
16.60% 
Allocation Guidelines, Minimum
15.00% 
 
Allocation Guidelines, Target
20.00% 
 
Allocation Guidelines, Maximum
25.00% 
 
Pension Plans, Post-Retirement Benefits and Other Benefits (Details 1) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Change in projected benefit obligation:
 
 
 
Beginning balance
$ 400.0 
$ 373.8 
 
Service cost
12.3 
10.8 
10.6 
Interest cost
21.7 
21.5 
19.6 
Plan participants contributions
0.4 
0.3 
 
Actuarial loss (gain)
60.8 
9.2 
 
Benefits paid
(12.4)
(11.7)
 
Foreign currency exchange rate changes
(2.0)
(4.5)
 
Other
(0.3)
0.6 
 
Ending balance
480.5 
400.0 
373.8 
Change in plan assets at fair value:
 
 
 
Beginning balance
313.8 
276.8 
 
Actual (loss) return on plan assets
14.8 
34.9 
 
Company contributions
20.2 
16.9 
 
Plan participants contributions
0.4 
0.3 
 
Benefits paid
(12.4)
(11.7)
 
Foreign currency exchange rate changes
(1.7)
(3.4)
 
Ending balance
335.1 
313.8 
276.8 
Reconciliation of funded status:
 
 
 
Projected benefit obligation
(480.5)
(400.0)
(373.8)
Plan assets at fair value
335.1 
313.8 
276.8 
Funded status
(145.4)
(86.2)
 
Noncurrent asset Long-term asset
5.3 
2.0 
 
Current liability
(0.8)
(0.6)
 
Noncurrent liability
(149.9)
(87.6)
 
Funded status
(145.4)
(86.2)
 
Weighted-average assumptions used for measurement of the projected benefit obligation:
 
 
 
Discount rate
4.56% 
5.49% 
 
Salary growth rate
3.57% 
3.76% 
 
Pension Plans, Domestic [Member]
 
 
 
Change in projected benefit obligation:
 
 
 
Beginning balance
225.4 
197.9 
 
Service cost
7.0 
6.1 
6.6 
Interest cost
12.0 
11.6 
11.0 
Plan participants contributions
   
   
 
Actuarial loss (gain)
49.7 
15.3 
 
Benefits paid
(6.1)
(6.1)
 
Foreign currency exchange rate changes
   
   
 
Other
(0.3)
0.6 
 
Ending balance
287.7 
225.4 
197.9 
Change in plan assets at fair value:
 
 
 
Beginning balance
148.0 
127.3 
 
Actual (loss) return on plan assets
5.7 
19.9 
 
Company contributions
10.4 
6.9 
 
Plan participants contributions
   
   
 
Benefits paid
(6.1)
(6.1)
 
Foreign currency exchange rate changes
   
   
 
Ending balance
158.0 
148.0 
127.3 
Reconciliation of funded status:
 
 
 
Projected benefit obligation
(287.7)
(225.4)
(197.9)
Plan assets at fair value
158.0 
148.0 
127.3 
Funded status
(129.7)
(77.4)
 
Noncurrent asset Long-term asset
 
Current liability
(0.8)
(0.6)
 
Noncurrent liability
(128.9)
(76.8)
 
Funded status
(129.7)
(77.4)
 
Weighted-average assumptions used for measurement of the projected benefit obligation:
 
 
 
Discount rate
4.37% 
5.53% 
 
Salary growth rate
3.90% 
3.91% 
 
Pension Plans, Foreign [Member]
 
 
 
Change in projected benefit obligation:
 
 
 
Beginning balance
174.6 
175.9 
 
Service cost
5.3 
4.7 
4.0 
Interest cost
9.7 
9.9 
8.6 
Plan participants contributions
0.4 
0.3 
 
Actuarial loss (gain)
11.1 
(6.1)
 
Benefits paid
(6.3)
(5.6)
 
Foreign currency exchange rate changes
(2.0)
(4.5)
 
Ending balance
192.8 
174.6 
175.9 
Change in plan assets at fair value:
 
 
 
Beginning balance
165.8 
149.5 
 
Actual (loss) return on plan assets
9.1 
15.0 
 
Company contributions
9.8 
10.0 
 
Plan participants contributions
0.4 
0.3 
 
Benefits paid
(6.3)
(5.6)
 
Foreign currency exchange rate changes
(1.7)
(3.4)
 
Ending balance
177.1 
165.8 
149.5 
Reconciliation of funded status:
 
 
 
Projected benefit obligation
(192.8)
(174.6)
(175.9)
Plan assets at fair value
177.1 
165.8 
149.5 
Funded status
(15.7)
(8.8)
 
Noncurrent asset Long-term asset
5.3 
2.0 
 
Current liability
 
Noncurrent liability
(21.0)
(10.8)
 
Funded status
$ (15.7)
$ (8.8)
 
Weighted-average assumptions used for measurement of the projected benefit obligation:
 
 
 
Discount rate
4.84% 
5.43% 
 
Salary growth rate
3.13% 
3.57% 
 
Pension Plans, Post-Retirement Benefits and Other Benefits (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Components of net periodic cost:
 
 
 
Service cost
$ 12.3 
$ 10.8 
$ 10.6 
Interest cost
21.7 
21.5 
19.6 
Expected return on plan assets
(21.9)
(19.7)
(17.8)
Net amortization
3.7 
4.1 
3.6 
Curtailment loss
0.6 
 
 
Net periodic cost
16.4 
16.7 
16.0 
Weighted-average assumption used to measure net periodic cost:
 
 
 
Discount rate
5.49% 
5.88% 
6.12% 
Expected return on plan assets
6.91% 
7.16% 
7.26% 
Salary growth rate
3.76% 
3.79% 
4.05% 
Pension Plans, Domestic [Member]
 
 
 
Components of net periodic cost:
 
 
 
Service cost
7.0 
6.1 
6.6 
Interest cost
12.0 
11.6 
11.0 
Expected return on plan assets
(11.8)
(10.8)
(9.9)
Net amortization
3.4 
3.5 
3.7 
Curtailment loss
0.6 
 
 
Net periodic cost
11.2 
10.4 
11.4 
Weighted-average assumption used to measure net periodic cost:
 
 
 
Discount rate
5.53% 
5.99% 
5.90% 
Expected return on plan assets
8.00% 
8.50% 
8.50% 
Salary growth rate
3.91% 
3.91% 
4.43% 
Pension Plans, Foreign [Member]
 
 
 
Components of net periodic cost:
 
 
 
Service cost
5.3 
4.7 
4.0 
Interest cost
9.7 
9.9 
8.6 
Expected return on plan assets
(10.1)
(8.9)
(7.9)
Net amortization
0.3 
0.6 
(0.1)
Net periodic cost
$ 5.2 
$ 6.3 
$ 4.6 
Weighted-average assumption used to measure net periodic cost:
 
 
 
Discount rate
5.43% 
5.77% 
6.45% 
Expected return on plan assets
5.93% 
6.02% 
6.02% 
Salary growth rate
3.57% 
3.59% 
3.66% 
Pension Plans, Post-Retirement Benefits and Other Benefits (Details 3) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
$ 335.1 
$ 313.8 
$ 276.8 
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
158.0 
148.0 
127.3 
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
177.1 
165.8 
149.5 
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
119.2 
 
 
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
116.7 
 
 
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
2.5 
 
 
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
215.9 
 
 
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
41.3 
 
 
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
174.6 
 
 
Cash and short-term investments [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
8.0 
 
 
Cash and short-term investments [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
6.6 
 
 
Cash and short-term investments [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
1.4 
 
 
Cash and short-term investments [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
8.0 
 
 
Cash and short-term investments [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
6.6 
 
 
Cash and short-term investments [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
1.4 
 
 
Cash and short-term investments [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Cash and short-term investments [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Cash and short-term investments [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Equity Securities Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
109.2 
 
 
Equity Securities Domestic [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
78.4 
 
 
Equity Securities Domestic [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
30.8 
 
 
Equity Securities Domestic [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
78.5 
 
 
Equity Securities Domestic [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
78.4 
 
 
Equity Securities Domestic [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.1 
 
 
Equity Securities Domestic [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
30.7 
 
 
Equity Securities Domestic [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Equity Securities Domestic [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
30.7 
 
 
Equity Securities International [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
71.5 
 
 
Equity Securities International [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
25.7 
 
 
Equity Securities International [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
45.8 
 
 
Equity Securities International [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Equity Securities International [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Equity Securities International [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Equity Securities International [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
71.5 
 
 
Equity Securities International [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
25.7 
 
 
Equity Securities International [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
45.8 
 
 
Fixed Income Securities Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
98.8 
 
 
Fixed Income Securities Domestic [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
32.7 
 
 
Fixed Income Securities Domestic [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
66.1 
 
 
Fixed Income Securities Domestic [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
32.2 
 
 
Fixed Income Securities Domestic [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
31.7 
 
 
Fixed Income Securities Domestic [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.5 
 
 
Fixed Income Securities Domestic [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
66.6 
 
 
Fixed Income Securities Domestic [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
1.0 
 
 
Fixed Income Securities Domestic [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
65.6 
 
 
Fixed Income Securities Corporate bonds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
34.9 
 
 
Fixed Income Securities Corporate bonds [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
14.6 
 
 
Fixed Income Securities Corporate bonds [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
20.3 
 
 
Fixed Income Securities Corporate bonds [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.4 
 
 
Fixed Income Securities Corporate bonds [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Fixed Income Securities Corporate bonds [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.4 
 
 
Fixed Income Securities Corporate bonds [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
34.5 
 
 
Fixed Income Securities Corporate bonds [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
14.6 
 
 
Fixed Income Securities Corporate bonds [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
19.9 
 
 
Insurance funds [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
12.2 
 
 
Insurance funds [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Insurance funds [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
12.2 
 
 
Insurance funds [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Insurance funds [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Insurance funds [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Insurance funds [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
12.2 
 
 
Insurance funds [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Insurance funds [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
12.2 
 
 
Other [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.5 
 
 
Other [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Other [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.5 
 
 
Other [Member] |
Level 1 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.1 
 
 
Other [Member] |
Level 1 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Other [Member] |
Level 1 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.1 
 
 
Other [Member] |
Level 2 [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
0.4 
 
 
Other [Member] |
Level 2 [Member] |
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
 
 
Other [Member] |
Level 2 [Member] |
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Plan assets at fair value
$ 0.4 
 
 
Pension Plans, Post-Retirement Benefits and Other Benefits (Details 4) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Estimated future benefits payments
 
2012
$ 14.5 
2013
13.8 
2014
15.1 
2015
15.6 
2016
16.6 
2017-2021
101.3 
Total
176.9 
Pension Plans, Domestic [Member]
 
Estimated future benefits payments
 
2012
8.8 
2013
8.1 
2014
8.8 
2015
9.4 
2016
10.1 
2017-2021
63.9 
Total
109.1 
Pension Plans, Foreign [Member]
 
Estimated future benefits payments
 
2012
5.7 
2013
5.7 
2014
6.3 
2015
6.2 
2016
6.5 
2017-2021
37.4 
Total
$ 67.8 
Pension Plans, Post-Retirement Benefits and Other Benefits (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Pension Plans (Textual) [Abstract]
 
 
 
General discussion of pension and other postretirement benefits
 
 
Weighted-average expected rate of return on plan assets
6.91% 
7.16% 
7.26% 
Deferred prior service cost
$ 0.7 
$ 3.3 
 
Deferred net transition obligation
0.1 
0.1 
 
Deferred net actuarial loss
84.5 
40.5 
 
Accumulated other comprehensive income adjustment
41.4 
(12.9)
19.9 
Net of tax
21.4 
3.1 
0.9 
Deferred actuarial losses
43.9 
 
 
Defined benefit plan accumulated other comprehensive income deferred tax related to prior service cost
1.6 
 
 
Additional deferred prior service costs
2.5 
 
 
Defined benefit plan accumulated other comprehensive income deferred actuarial gains losses tax
23.0 
 
 
Reclassifications from deferred prior service cost
0.4 
 
 
Reclassifications from deferred actuarial loss
2.2 
 
 
Amortization of net actuarial loss
9.0 
 
 
Amortization of prior service cost
0.1 
 
 
Accrued Benefit cost related to two non-qualified plan
17.9 
13.0 
 
Number of plans with accumulated benefit obligations in excess of fair value of plan assets
 
Aggregate pension accumulated benefit obligation
256.3 
209.4 
 
Aggregate fair value of plan assets
161.8 
154.5 
 
Percentage of participant's salary received as credit
2.00% 
 
 
Percentage of participant's salary received as credit for service period of five years or more
2.50% 
 
 
Participant's years of service required to receive a credit equal to 2.5%
 
five years or more 
 
Period of service required to get fully vested in hypothetical personal retirement account balance
3 years 
 
 
Period of service required to get fully vested in hypothetical personal retirement account balance previously
5 years 
 
 
Minimum period of service required to get enrolled in tax deferred plan
60 days 
 
 
Rate of Company's matching contribution on participant's contribution
25.00% 
 
 
Rate of Company's matching contribution on participant's compensation
6.00% 
 
 
Defined contribution plans, expense
5.9 
5.4 
5.0 
Interests accrued period
3 months 
 
 
Interests accrual factor
1.4 
 
 
Deferred compensation liability
44.1 
42.3 
 
Cash surrender value recorded under deferred compensation plan
33.9 
34.8 
 
Pension Plans, Domestic [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Accumulated benefit obligation
251.7 
202.0 
 
Estimated Company contribution to plans
14.2 
 
 
Pension Plans (Textual) [Abstract]
 
 
 
Weighted-average expected rate of return on plan assets
8.00% 
8.50% 
8.50% 
Pension Plans, Foreign [Member]
 
 
 
Defined Benefit Plan Disclosure [Line Items]
 
 
 
Accumulated benefit obligation
161.4 
148.5 
 
Estimated Company contribution to plans
$ 9.2 
 
 
Pension Plans (Textual) [Abstract]
 
 
 
Weighted-average expected rate of return on plan assets
5.93% 
6.02% 
6.02% 

The Company has various defined benefit and defined contribution pension plans. The defined benefit plans of the Company are the Anixter Inc. Pension Plan, Executive Benefit Plan and Supplemental Executive Retirement Plan (SERP) (together the "Domestic Plans") and various pension plans covering employees of foreign subsidiaries ("Foreign Plans"). The majority of the Company's 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 and Foreign Plans. The Company's 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.

Stockholders' Equity (Details) (USD $)
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Director Stock Units [Member]
 
 
 
Share based compensation restricted stock unit plan activity
 
 
 
Beginning Balance
229,700 
240,100 
193,900 
Granted
27,700 
26,800 
48,900 
Converted
(7,200)
(37,200)
2,700 
Ending Balance
250,200 
229,700 
240,100 
Beginning Balance, Weighted Average Grant Date Value
$ 40.85 
$ 39.71 
$ 40.14 
Granted, Weighted Average Grant Date Value
$ 59.14 
$ 47.32 
$ 38.39 
Converted, Weighted Average Grant Date Value
$ 45.74 
$ 38.14 
$ 46.91 
Ending Balance, Weighted Average Grant Date Value
$ 42.74 
$ 40.85 
$ 39.71 
Employee Stock Units [Member]
 
 
 
Share based compensation restricted stock unit plan activity
 
 
 
Beginning Balance
823,700 
759,100 
582,600 
Granted
157,800 
268,700 
371,100 
Converted
(281,900)
(197,400)
(177,400)
Cancelled
(82,500)
(6,700)
(17,200)
Ending Balance
617,100 
823,700 
759,100 
Beginning Balance, Weighted Average Grant Date Value
$ 42.38 
$ 44.55 
$ 54.74 
Granted, Weighted Average Grant Date Value
$ 69.91 
$ 42.72 
$ 29.41 
Converted, Weighted Average Grant Date Value
$ 44.67 
$ 51.09 
$ 46.02 
Cancelled, Weighted Average Grant Date Value
$ 43.99 
$ 45.32 
$ 47.79 
Ending Balance, Weighted Average Grant Date Value
$ 48.16 
$ 42.38 
$ 44.55 
Stockholders' Equity (Details 1)
12 Months Ended
Dec. 30, 2011
years
Dec. 31, 2010
years
Jan. 1, 2010
years
Weighted-average fair value of stock options granted valuation assumption
 
 
 
Expected Stock Price Volatility
37.90% 
36.20% 
35.40% 
Risk-Free Interest Rate
2.40% 
2.70% 
2.70% 
Expected Dividend Yield
0.00% 
0.00% 
0.00% 
Average Expected Life
6.13 
6.13 
Stockholders' Equity (Details 2) (USD $)
12 Months Ended
Oct. 13, 2010
Oct. 12, 2010
Dec. 30, 2011
Employee Stock Option [Member]
Dec. 31, 2010
Employee Stock Option [Member]
Jan. 1, 2010
Employee Stock Option [Member]
Activity under the employee option plans
 
 
 
 
 
Beginning Balance
1,400,000 
1,300,000 
1,234,900 
1,562,200 
1,729,800 
Adjusted
 
 
 
87,200 
 
Granted
 
 
75,900 
96,500 
97,200 
Exercised
 
 
(502,500)
(510,900)
(264,800)
Cancelled
 
 
(52,000)
(100)
 
Ending Balance
1,400,000 
1,300,000 
756,300 
1,234,900 
1,562,200 
Beginning Balance, Weighted-Average Exercise Price
$ 41.16 
$ 43.88 
$ 40.27 
$ 36.15 
$ 33.78 
Adjusted, Weighted-Average Exercise Price
 
 
 
$ 37.87 
 
Granted, Weighted-Average Exercise Price
 
 
$ 69.54 
$ 42.71 
$ 29.41 
Exercised, Weighted-Average Exercise Price
 
 
$ 29.92 
$ 21.25 
$ 18.21 
Cancelled, Weighted-Average Exercise Price
 
 
$ 52.33 
$ 22.39 
   
Ending Balance, Weighted-Average Exercise Price
$ 41.16 
$ 43.88 
$ 49.26 
$ 40.27 
$ 36.15 
Options exercisable at year-end
 
 
405,500 
661,200 
956,800 
Options exercisable at year-end Weighted-Average Exercise Price:
 
 
$ 28.20 
$ 26.12 
$ 20.43 
Stockholders' Equity (Details 3) (Unvested employee stock units and options [Member], USD $)
12 Months Ended
Dec. 30, 2011
Unvested employee stock units and options [Member]
 
Changes to the unvested employee stock units and options
 
Non-vested shares at December 31, 2010
1,391,300 
Granted
233,700 
Vested
(522,600)
Cancelled
(134,500)
Non-vested shares at December 30, 2011
967,900 
Non-vested Beginning Balance, Weighted-Average Grant Date Fair Value
$ 32.82 
Granted, Weighted-Average Grant Date Fair Value
$ 56.46 
Vested, Weighted-Average Grant Date Fair Value
$ 33.51 
Cancelled, Weighted-Average Grant Date Fair Value
$ 34.71 
Non-vested Ending Balance, Weighted-Average Grant Date Fair Value
$ 37.89 
Stockholders' Equity (Details Textual) (USD $)
In Millions, except Share data, unless otherwise specified
1 Months Ended 12 Months Ended
Sep. 23, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Oct. 13, 2010
Oct. 12, 2010
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Compensation expense with stock units
 
$ 6.8 
$ 11.6 
$ 10.3 
 
 
Stockholders' Equity (Textual) [Abstract]
 
 
 
 
 
 
Preferred stock, shares authorized
 
15,000,000 
15,000,000 
 
 
 
Preferred stock, par value
 
$ 1.00 
$ 1.00 
 
 
 
Common stock, shares authorized
 
100,000,000 
100,000,000 
 
 
 
Common stock, par value
 
$ 1.00 
$ 1.00 
 
 
 
Dividend declared per common share
$ 3.25 
 
$ 3.25 
 
 
 
Dividend declared on common stock ($3.25 per share)
113.7 
 
113.7 
 
 
 
Average exercise price of outstanding options
 
 
 
 
$ 41.16 
$ 43.88 
Increase in number of outstanding options and options outstanding number beginning at special dividend
 
 
 
 
1,400,000 
1,300,000 
Repurchase of outstanding shares
 
2,000,000 
1,000,000 
1,000,000 
 
 
Number of shares available for grant
 
2,300,000 
 
 
 
 
Number of directors
 
10 
12 
12 
 
 
Common stock, shares outstanding
 
33,228,049 
34,323,061 
 
 
 
Total unrecognized compensation cost related to unvested stock units and options granted
 
15.5 
 
 
 
 
Total unrecognized compensation cost, weighted average period
 
1.8 
 
 
 
 
Shares purchased, average cost
 
$ 53.73 
$ 41.24 
$ 34.95 
 
 
Conversion ratio of hundred percent
 
100.00% 
 
 
 
 
Stock Units [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Vesting period, minimum
 
4 years 
 
 
 
 
Vesting period, maximum
 
6 years 
 
 
 
 
Stock price
 
$ 59.64 
$ 59.73 
$ 47.10 
 
 
Share based compensation arrangement by share based payment award units outstanding weighted average remaining contractual term
 
1.9 
 
 
 
 
Share based compensation arrangement by share based payment award units outstanding aggregate intrinsic value
 
51.7 
62.9 
47.1 
 
 
Share based compensation arrangement by share based payment award units converted aggregate intrinsic value
 
20.0 
10.4 
5.3 
 
 
Share based compensation arrangement by share based payment award units convertible aggregate intrinsic value
 
14.9 
14.1 
12.0 
 
 
2010 Stock incentive plan [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Number of common shares in Stock Incentive Plan
 
 
1,800,000 
 
 
 
Director Stock Units [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Number of stock units granted
 
27,700 
26,800 
48,900 
 
 
Compensation expense with stock units
 
1.6 
1.7 
1.9 
 
 
Aggregate value of stock units
 
1.6 
1.3 
1.9 
 
 
Employee Stock Units [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Number of stock units granted
 
157,800 
268,700 
371,100 
 
 
Stock Options [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Share based compensation arrangement by share based payment award options grants in period grant date fair market value
 
2.2 
1.6 
1.2 
 
 
Weighted-average grant-date fair value
 
$ 28.50 
$ 17.10 
$ 12.37 
 
 
Number of stock units granted
 
75,886 
96,492 
97,222 
 
 
Compensation expense with stock units
 
2.7 
3.4 
3.0 
 
 
Options, Outstanding, Intrinsic Value
 
25.4 
39.9 
43.4 
 
 
Options, Exercisable, Intrinsic Value
 
12.7 
22.2 
25.5 
 
 
Stock price
 
$ 59.64 
$ 59.73 
$ 47.10 
 
 
Options, Exercises in Period, Total Intrinsic Value
 
$ 18.1 
$ 15.5 
$ 5.8 
 
 
Options, Outstanding, Weighted Average Remaining Contractual Term
 
6.7 
 
 
 
 
Options, Exercisable, Weighted Average Remaining Contractual Term
 
5.6 
 
 
 
 
Share based compensation arrangement by share based payment award options expire period after grant date
 
10 years 
 
 
 
 
Share based compensation arrangement by share based payment award, award vesting period
 
4 years 
 
 
 
 
Convertible notes Due 2013 [Member]
 
 
 
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
 
 
 
Debt Conversion Converted Instrument Rate Shares
 
16.727 
 
 
 
 
Number of shares that can be converted against note before adjustment
 
15.753 
 
 
 
 
Common stock, shares reserved before adjustment
 
4,700,000 
 
 
 
 
Common stock, share reserved
 
5,000,000 
 
 
 
 
Business Segments (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Jan. 2, 2009
Segment Information
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,499.0 
$ 1,611.8 
$ 1,565.3 
$ 1,470.8 
$ 1,386.5 
$ 1,344.9 
$ 1,321.3 
$ 1,221.8 
$ 6,146.9 
$ 5,274.5 
$ 4,779.6 
 
Operating income
91.6 
101.7 
92.0 
77.5 
78.5 
70.8 
66.5 
51.4 
362.8 
267.2 
84.8 
 
Depreciation
 
 
 
 
 
 
 
 
22.1 
22.5 
24.1 
24.1 
Amortization of intangibles
 
 
 
 
 
 
 
 
11.4 
11.3 
13.0 
 
Tangible long-lived assets
134.2 
 
 
 
125.9 
 
 
 
134.2 
125.9 
130.2 
 
Total assets
3,034.0 
 
 
 
2,933.3 
 
 
 
3,034.0 
2,933.3 
2,671.7 
 
Capital expenditures
 
 
 
 
 
 
 
 
26.4 
19.6 
21.9 
 
North America [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Segment Information
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
4,302.5 
3,701.2 
3,397.8 
 
Operating income
 
 
 
 
 
 
 
 
307.7 
235.1 
175.1 
 
Depreciation
 
 
 
 
 
 
 
 
14.5 
14.7 
15.0 
 
Amortization of intangibles
 
 
 
 
 
 
 
 
5.2 
5.0 
6.3 
 
Tangible long-lived assets
99.6 
 
 
 
95.9 
 
 
 
99.6 
95.9 
92.2 
 
Total assets
2,015.9 
 
 
 
2,043.9 
 
 
 
2,015.9 
2,043.9 
1,869.5 
 
Capital expenditures
 
 
 
 
 
 
 
 
18.3 
16.6 
17.0 
 
Europe [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Segment Information
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,150.0 
1,008.4 
887.9 
 
Operating income
 
 
 
 
 
 
 
 
15.7 
(0.9)
(120.0)
 
Depreciation
 
 
 
 
 
 
 
 
5.6 
5.6 
7.0 
 
Amortization of intangibles
 
 
 
 
 
 
 
 
6.1 
6.2 
6.6 
 
Tangible long-lived assets
28.3 
 
 
 
24.5 
 
 
 
28.3 
24.5 
32.5 
 
Total assets
622.3 
 
 
 
586.7 
 
 
 
622.3 
586.7 
545.6 
 
Capital expenditures
 
 
 
 
 
 
 
 
5.2 
1.9 
2.9 
 
Emerging Markets [Member]
 
 
 
 
 
 
 
 
 
 
 
 
Segment Information
 
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
694.4 
564.9 
493.9 
 
Operating income
 
 
 
 
 
 
 
 
39.4 
33.0 
29.7 
 
Depreciation
 
 
 
 
 
 
 
 
2.0 
2.2 
2.1 
 
Amortization of intangibles
 
 
 
 
 
 
 
 
0.1 
0.1 
0.1 
 
Tangible long-lived assets
6.3 
 
 
 
5.5 
 
 
 
6.3 
5.5 
5.5 
 
Total assets
395.8 
 
 
 
302.7 
 
 
 
395.8 
302.7 
256.6 
 
Capital expenditures
 
 
 
 
 
 
 
 
$ 2.9 
$ 1.1 
$ 2.0 
 
Business Segments (Details 1) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Summary of net sales by end market
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,499.0 
$ 1,611.8 
$ 1,565.3 
$ 1,470.8 
$ 1,386.5 
$ 1,344.9 
$ 1,321.3 
$ 1,221.8 
$ 6,146.9 
$ 5,274.5 
$ 4,779.6 
% of Total Net Sales
100.00% 
 
 
 
100.00% 
 
 
 
100.00% 
100.00% 
100.00% 
Enterprise Cabling and Security [Member]
 
 
 
 
 
 
 
 
 
 
 
Summary of net sales by end market
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
3,245.9 
2,912.6 
2,744.1 
% of Total Net Sales
52.80% 
 
 
 
55.20% 
 
 
 
52.80% 
55.20% 
57.40% 
Wire and Cable [Member]
 
 
 
 
 
 
 
 
 
 
 
Summary of net sales by end market
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
1,949.5 
1,602.5 
1,385.7 
% of Total Net Sales
31.70% 
 
 
 
30.40% 
 
 
 
31.70% 
30.40% 
29.00% 
OEM Supply [Member]
 
 
 
 
 
 
 
 
 
 
 
Summary of net sales by end market
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
$ 951.5 
$ 759.4 
$ 649.8 
% of Total Net Sales
15.50% 
 
 
 
14.40% 
 
 
 
15.50% 
14.40% 
13.60% 
Business Segments (Details 2) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jul. 3, 2009
Changes in goodwill
 
 
 
Goodwill, Beginning Balance
$ 355.3 
$ 338.7 
 
Acquisition related
(2.8)
15.3 
 
Foreign currency translation
(0.8)
1.3 
 
Goodwill, Ending Balance
351.7 
355.3 
 
North America [Member]
 
 
 
Changes in goodwill
 
 
 
Goodwill, Beginning Balance
332.4 
316.3 
 
Acquisition related
(2.8)
15.3 
 
Foreign currency translation
(0.4)
0.8 
 
Goodwill, Ending Balance
329.2 
332.4 
 
Europe [Member]
 
 
 
Changes in goodwill
 
 
 
Goodwill, Beginning Balance
11.0 
11.7 
12.1 
Foreign currency translation
(0.1)
(0.7)
 
Goodwill, Ending Balance
10.9 
11.0 
12.1 
Emerging Markets [Member]
 
 
 
Changes in goodwill
 
 
 
Goodwill, Beginning Balance
11.9 
10.7 
 
Foreign currency translation
(0.3)
1.2 
 
Goodwill, Ending Balance
$ 11.6 
$ 11.9 
 
Business Segments (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended 3 Months Ended 12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Sep. 30, 2011
North America [Member]
Dec. 30, 2011
Europe [Member]
Jan. 1, 2010
Europe [Member]
Dec. 30, 2011
CANADA
Dec. 31, 2010
CANADA
Jan. 1, 2010
CANADA
Dec. 30, 2011
Clark [Member]
Goodwill [Line Items]
 
 
 
 
 
 
 
 
 
 
Foreign sales
 
 
 
 
 
 
$ 740.8 
$ 619.8 
$ 567.5 
 
Accumulated goodwill impairment loss
 
 
 
 
100.0 
100.0 
 
 
 
 
Goodwill written off
19.0 
 
 
19.0 
 
 
 
 
 
 
Cash paid, net of cash acquired, for prior year acquisition
(1.6)
36.4 
1.8 
 
 
 
 
 
 
36.4 
Recognition of goodwill due to valuation
 
 
 
 
 
 
 
 
 
2.8 
Business Segments (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
Maximum sales percentage by customer
3.00% 
 
 
 
 
 
 
 
 
 
Domestic sales
3,561.7 
3,081.4 
2,830.3 
 
 
 
 
 
 
 
Net working capital adjustments
$ 1.6 
 
 
 
 
 
 
 
 
 
Summarized Financial Information of Anixter, Inc. (Details) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Jan. 2, 2009
ASSETS
 
 
 
 
Current assets
$ 2,402.9 
$ 2,305.9 
 
 
Property, equipment and capital leases, net
88.3 
83.2 
 
 
Goodwill
351.7 
355.3 
338.7 
 
Other assets
191.1 
188.9 
 
 
Total assets
3,034.0 
2,933.3 
2,671.7 
 
Liabilities and Stockholders' Equity
 
 
 
 
Current liabilities
1,026.9 
1,072.8 
 
 
Long-term debt
806.8 
688.7 
 
 
Other liabilities
199.1 
161.0 
 
 
Stockholder's Equity
1,001.2 
1,010.8 
1,024.1 
1,072.8 
Total liabilities and stockholders' equity
3,034.0 
2,933.3 
 
 
Anixter Inc. [Member]
 
 
 
 
ASSETS
 
 
 
 
Current assets
2,404.0 
2,309.1 
 
 
Property, equipment and capital leases, net
102.3 
98.3 
 
 
Goodwill
351.7 
355.3 
 
 
Other assets
190.2 
187.0 
 
 
Total assets
3,048.2 
2,949.7 
 
 
Liabilities and Stockholders' Equity
 
 
 
 
Current liabilities
1,023.3 
1,069.0 
 
 
Subordinated notes payable to parent
6.0 
8.5 
 
 
Long-term debt
543.9 
394.3 
 
 
Other liabilities
198.2 
159.1 
 
 
Stockholder's Equity
1,276.8 
1,318.8 
 
 
Total liabilities and stockholders' equity
$ 3,048.2 
$ 2,949.7 
 
 
Summarized Financial Information of Anixter, Inc. (Details 1) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,499.0 
$ 1,611.8 
$ 1,565.3 
$ 1,470.8 
$ 1,386.5 
$ 1,344.9 
$ 1,321.3 
$ 1,221.8 
$ 6,146.9 
$ 5,274.5 
$ 4,779.6 
Operating income
91.6 
101.7 
92.0 
77.5 
78.5 
70.8 
66.5 
51.4 
362.8 
267.2 
84.8 
(Loss) income from discontinued operations, net of tax
(1.5)
(18.1)
3.7 
3.4 
(10.6)
3.9 
2.4 
3.3 
(12.5)
(1.0)
12.1 
Net income (loss)
48.3 
43.5 
52.1 
44.3 
31.5 
36.5 
34.6 
5.9 
188.2 
108.5 
(29.3)
Anixter Inc. [Member]
 
 
 
 
 
 
 
 
 
 
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
6,146.9 
5,274.5 
4,779.6 
Operating income
 
 
 
 
 
 
 
 
368.3 
273.0 
90.5 
Income from continuing operations before income taxes
 
 
 
 
 
 
 
 
328.0 
204.2 
21.1 
(Loss) income from discontinued operations, net of tax
 
 
 
 
 
 
 
 
(12.5)
(1.0)
12.1 
Net income (loss)
 
 
 
 
 
 
 
 
$ 203.3 
$ 123.2 
$ (15.4)
Summarized Financial Information of Anixter, Inc. (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2010
Dec. 30, 2011
Description of guarantees given by parent company
 
Assets of discontinued operations
$ 186.8 
$ 0 
Liabilities of discontinued operations
14.6 
Parent Company [Member]
 
 
Assets of discontinued operations
 
186.8 
Liabilities of discontinued operations
 
$ 14.6 
The Company guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc. The Company has no independent assets or operations and all subsidiaries other than Anixter Inc. are minor.
Selected Quarterly Financial Data (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Summary of Quarterly Financial Data
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 1,499.0 
$ 1,611.8 
$ 1,565.3 
$ 1,470.8 
$ 1,386.5 
$ 1,344.9 
$ 1,321.3 
$ 1,221.8 
$ 6,146.9 
$ 5,274.5 
$ 4,779.6 
Cost of goods sold
1,150.3 
1,249.8 
1,207.3 
1,132.1 
1,064.6 
1,035.8 
1,020.7 
945.8 
4,739.5 
4,066.9 
3,702.5 
Operating income
91.6 
101.7 
92.0 
77.5 
78.5 
70.8 
66.5 
51.4 
362.8 
267.2 
84.8 
Income from continuing operations before income taxes
77.2 
83.3 
77.6 
65.4 
65.0 
57.3 
53.6 
4.3 
303.5 
180.2 
(1.6)
Net income from continuing operations
49.8 
61.6 
48.4 
40.9 
42.1 
32.6 
32.2 
2.6 
200.7 
109.5 
(41.4)
Income (loss)from discontinued operations, net
(1.5)
(18.1)
3.7 
3.4 
(10.6)
3.9 
2.4 
3.3 
(12.5)
(1.0)
12.1 
Net income
$ 48.3 
$ 43.5 
$ 52.1 
$ 44.3 
$ 31.5 
$ 36.5 
$ 34.6 
$ 5.9 
$ 188.2 
$ 108.5 
$ (29.3)
Basic:
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.50 
$ 1.80 
$ 1.39 
$ 1.19 
$ 1.23 
$ 0.96 
$ 0.95 
$ 0.08 
$ 5.87 
$ 3.21 
$ (1.17)
Discontinued operations
$ (0.05)
$ (0.53)
$ 0.11 
$ 0.10 
$ (0.31)
$ 0.11 
$ 0.07 
$ 0.09 
$ (0.37)
$ (0.03)
$ 0.34 
Net income
$ 1.45 
$ 1.27 
$ 1.50 
$ 1.29 
$ 0.92 
$ 1.07 
$ 1.02 
$ 0.17 
$ 5.50 
$ 3.18 
$ (0.83)
Diluted:
 
 
 
 
 
 
 
 
 
 
 
Continuing operations
$ 1.49 
$ 1.78 
$ 1.33 
$ 1.13 
$ 1.18 
$ 0.92 
$ 0.91 
$ 0.07 
$ 5.71 
$ 3.08 
$ (1.17)
Discontinued operations
$ (0.05)
$ (0.52)
$ 0.10 
$ 0.10 
$ (0.30)
$ 0.11 
$ 0.07 
$ 0.09 
$ (0.35)
$ (0.03)
$ 0.34 
Net income
$ 1.44 
$ 1.26 
$ 1.43 
$ 1.23 
$ 0.88 
$ 1.03 
$ 0.98 
$ 0.16 
$ 5.36 
$ 3.05 
$ (0.83)
Stock price range:
 
 
 
 
 
 
 
 
 
 
 
High
$ 62.99 
$ 68.15 
$ 76.16 
$ 73.56 
$ 61.17 
$ 54.99 
$ 54.16 
$ 48.85 
 
 
 
Low
$ 44.52 
$ 47.38 
$ 60.54 
$ 59.52 
$ 52.10 
$ 41.27 
$ 41.31 
$ 38.42 
 
 
 
Close
$ 59.64 
$ 47.44 
$ 66.10 
$ 68.30 
$ 59.73 
$ 54.28 
$ 41.90 
$ 47.16 
 
 
 
Selected Quarterly Financial Data (Details Textual) (USD $)
In Millions, except Per Share data, unless otherwise specified
1 Months Ended 3 Months Ended 12 Months Ended 3 Months Ended 12 Months Ended
Sep. 23, 2010
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Dec. 31, 2010
Jul. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Feb. 17, 2012
Dec. 31, 2010
Convertible notes due 2033 [Member]
Jul. 2, 2010
Convertible notes due 2033 [Member]
Apr. 2, 2010
Convertible Notes Due 2014 [Member]
Oct. 1, 2010
Convertible Notes Due 2014 and 2033 [Member]
Dec. 30, 2011
Europe [Member]
Schedule Of Quarterly Financial Information [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pre-tax gain / (loss) related to retirement of notes
 
 
 
 
 
 
 
$ (31.9)
$ (1.1)
 
$ 0.5 
$ 0.8 
$ 30.5 
$ 2.7 
 
Net of tax related to retirement of notes
 
 
 
 
 
 
 
 
 
 
0.3 
0.5 
18.9 
1.7 
 
Pre tax restructuring charges
 
 
 
 
 
 
5.3 
 
 
 
 
 
 
 
5.3 
Selected Quarterly Financial Data (Textual) [Abstract]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dividend declared per common share
$ 3.25 
 
 
 
 
 
 
$ 3.25 
 
 
 
 
 
 
 
Dividend declared on common stock ($3.25 per share)
113.7 
 
 
 
 
 
 
113.7 
 
 
 
 
 
 
 
Number of stockholders
 
 
 
 
 
 
 
 
 
2,209 
 
 
 
 
 
Foreign exchange gain (loss) due to the repatriation of cash and remeasurement value
 
 
 
 
 
2.1 
7.1 
2.1 
13.8 
 
 
 
 
 
 
Foreign currency exchange rate repatriation of cash remeasurement value, net of tax
 
 
 
0.8 
 
 
 
 
 
 
 
 
 
 
 
Tax benefit
 
2.0 
8.8 
 
 
 
(11.3)
   
(4.5)
 
 
 
 
 
 
Tax benefit expense associated with reversal of prior year foreign taxes
 
 
 
 
$ 1.3 
 
 
 
 
 
 
 
 
 
 
Subsequent Event (Details) (Pending or Threatened Litigation [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Pending or Threatened Litigation [Member]
 
Subsequent Event (Textual) [Abstract]
 
Cash collateral for arbitration
$ 10.0 
Non cash collateral for arbitration
$ 12.4 
Condensed Financial Information of Registrant Anixter International Inc. (Parent Company) (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Statements of operations
 
 
 
 
 
 
 
 
 
 
 
Operating loss
$ 91.6 
$ 101.7 
$ 92.0 
$ 77.5 
$ 78.5 
$ 70.8 
$ 66.5 
$ 51.4 
$ 362.8 
$ 267.2 
$ 84.8 
Other (expense) income:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(50.1)
(53.6)
(66.1)
Income (loss) from continuing operations before income taxes
77.2 
83.3 
77.6 
65.4 
65.0 
57.3 
53.6 
4.3 
303.5 
180.2 
(1.6)
Income tax benefit
 
 
 
 
 
 
 
 
(102.8)
(70.7)
(39.8)
Net income (loss)
48.3 
43.5 
52.1 
44.3 
31.5 
36.5 
34.6 
5.9 
188.2 
108.5 
(29.3)
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Statements of operations
 
 
 
 
 
 
 
 
 
 
 
Operating loss
 
 
 
 
 
 
 
 
(4.3)
(4.6)
(4.2)
Other (expense) income:
 
 
 
 
 
 
 
 
 
 
 
Interest expense
 
 
 
 
 
 
 
 
(16.2)
(17.3)
(18.4)
Other
 
 
 
 
 
 
 
 
0.2 
1.7 
4.2 
Income (loss) from continuing operations before income taxes
 
 
 
 
 
 
 
 
(20.3)
(20.2)
(18.4)
Income tax benefit
 
 
 
 
 
 
 
 
7.7 
7.7 
6.7 
Loss before equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
(12.6)
(12.5)
(11.7)
Equity in earnings (loss) of subsidiaries
 
 
 
 
 
 
 
 
200.8 
121.0 
(17.6)
Net income (loss)
 
 
 
 
 
 
 
 
$ 188.2 
$ 108.5 
$ (29.3)
Condensed Financial Information of Registrant Anixter International Inc. (Parent Company) (Details 1) (USD $)
In Millions, unless otherwise specified
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Jan. 2, 2009
Current assets:
 
 
 
 
Cash and cash equivalents
$ 106.1 
$ 78.4 
$ 111.5 
$ 65.3 
Other assets
37.4 
50.2 
 
 
Total current assets
2,402.9 
2,305.9 
 
 
Other assets
191.1 
188.9 
 
 
Total assets
3,034.0 
2,933.3 
2,671.7 
 
Liabilities:
 
 
 
 
Long-term debt
806.8 
688.7 
 
 
Other non-current liabilities
199.1 
161.0 
 
 
Total liabilities
2,032.8 
1,922.5 
 
 
Stockholders' equity:
 
 
 
 
Common stock
33.2 
34.3 
 
 
Capital surplus
196.5 
230.1 
 
 
Accumulated other comprehensive loss
(85.5)
(27.8)
 
 
Retained earnings
857.0 
774.2 
 
 
Total stockholders' equity
1,001.2 
1,010.8 
1,024.1 
1,072.8 
Total liabilities and stockholders' equity
3,034.0 
2,933.3 
 
 
Parent Company [Member]
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
0.4 
0.4 
0.6 
0.1 
Other assets
0.4 
0.5 
 
 
Total current assets
0.8 
0.9 
 
 
Investment in and advances to subsidiaries
1,284.8 
1,328.9 
 
 
Other assets
1.0 
1.9 
 
 
Total assets
1,286.6 
1,331.7 
 
 
Liabilities:
 
 
 
 
Accounts payable and accrued expenses, due currently
2.3 
2.3 
 
 
Amounts currently due to affiliates, net
1.9 
4.1 
 
 
Long-term debt
280.4 
312.7 
 
 
Other non-current liabilities
0.8 
1.8 
 
 
Total liabilities
285.4 
320.9 
 
 
Stockholders' equity:
 
 
 
 
Common stock
33.2 
34.3 
 
 
Capital surplus
196.5 
230.1 
 
 
Accumulated other comprehensive loss
(85.5)
(27.8)
 
 
Retained earnings
857.0 
774.2 
 
 
Total stockholders' equity
1,001.2 
1,010.8 
 
 
Total liabilities and stockholders' equity
$ 1,286.6 
$ 1,331.7 
 
 
Condensed Financial Information of Registrant Anixter International Inc. (Parent Company) (Details 2) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Dec. 30, 2011
Sep. 30, 2011
Jul. 1, 2011
Apr. 1, 2011
Dec. 31, 2010
Oct. 1, 2010
Jul. 2, 2010
Apr. 2, 2010
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
$ 48.3 
$ 43.5 
$ 52.1 
$ 44.3 
$ 31.5 
$ 36.5 
$ 34.6 
$ 5.9 
$ 188.2 
$ 108.5 
$ (29.3)
Adjustments to reconcile net income(loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Loss on retirement of debt
 
 
 
 
 
 
 
 
 
31.9 
1.1 
Accretion of debt discount
 
 
 
 
 
 
 
 
17.1 
18.8 
21.1 
Stock-based compensation
 
 
 
 
 
 
 
 
11.1 
16.7 
15.2 
Amortization of deferred financing costs
 
 
 
 
 
 
 
 
2.5 
2.7 
2.9 
Income tax expense
 
 
 
 
 
 
 
 
102.8 
70.7 
39.8 
Net cash provided by operating activities
 
 
 
 
 
 
 
 
144.4 
195.2 
440.9 
Investing activities
 
 
 
 
 
 
 
 
118.8 
(56.0)
(23.7)
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
Purchases of common stock for treasury
 
 
 
 
 
 
 
 
(107.5)
(41.2)
(34.9)
Retirement of Convertible Notes due 2033 - debt component
 
 
 
 
 
 
 
 
(48.9)
(65.6)
(56.5)
Retirement of Convertible Notes due 2033 - equity component
 
 
 
 
 
 
 
 
(44.9)
(54.0)
(34.3)
Payment of cash dividend
 
 
 
 
 
 
 
 
(0.9)
(111.0)
(0.3)
Net cash used in financing activities
 
 
 
 
 
 
 
 
(235.5)
(172.3)
(371.0)
Increase (decrease) in cash and cash equivalents
 
 
 
 
 
 
 
 
27.7 
(33.1)
46.2 
Cash and cash equivalents at beginning of period
 
 
 
78.4 
 
 
 
111.5 
78.4 
111.5 
65.3 
Cash and cash equivalents at end of period
106.1 
 
 
 
78.4 
 
 
 
106.1 
78.4 
111.5 
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Operating activities:
 
 
 
 
 
 
 
 
 
 
 
Net income (loss)
 
 
 
 
 
 
 
 
188.2 
108.5 
(29.3)
Adjustments to reconcile net income(loss) to net cash provided by (used in) operating activities:
 
 
 
 
 
 
 
 
 
 
 
Dividend from subsidiary
 
 
 
 
 
 
 
 
201.3 
271.8 
125.7 
Equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
(200.8)
(121.0)
17.6 
Loss on retirement of debt
 
 
 
 
 
 
 
 
(0.1)
(1.4)
(3.6)
Accretion of debt discount
 
 
 
 
 
 
 
 
16.6 
18.0 
19.3 
Stock-based compensation
 
 
 
 
 
 
 
 
1.6 
1.8 
1.9 
Amortization of deferred financing costs
 
 
 
 
 
 
 
 
0.9 
0.9 
0.8 
Intercompany transactions
 
 
 
 
 
 
 
 
(13.8)
(0.9)
(12.4)
Income tax expense
 
 
 
 
 
 
 
 
(7.7)
(7.7)
(6.7)
Changes in current assets and liabilities, net
 
 
 
 
 
 
 
 
0.1 
(2.1)
(0.3)
Net cash provided by operating activities
 
 
 
 
 
 
 
 
186.3 
267.9 
113.0 
Investing activities
 
 
 
 
 
 
 
 
Financing activities:
 
 
 
 
 
 
 
 
 
 
 
Purchases of common stock for treasury
 
 
 
 
 
 
 
 
(107.5)
(41.2)
(34.9)
Retirement of Convertible Notes due 2033 - debt component
 
 
 
 
 
 
 
 
(48.9)
(65.6)
(56.5)
Retirement of Convertible Notes due 2033 - equity component
 
 
 
 
 
 
 
 
(44.9)
(54.0)
(34.3)
Proceeds from issuance of common stock
 
 
 
 
 
 
 
 
13.4 
8.7 
2.5 
Loans (to) from subsidiaries, net
 
 
 
 
 
 
 
 
2.5 
(5.0)
11.0 
Payment of cash dividend
 
 
 
 
 
 
 
 
(0.9)
(111.0)
(0.3)
Net cash used in financing activities
 
 
 
 
 
 
 
 
(186.3)
(268.1)
(112.5)
Increase (decrease) in cash and cash equivalents
 
 
 
 
 
 
 
 
(0.2)
0.5 
Cash and cash equivalents at beginning of period
 
 
 
0.4 
 
 
 
0.6 
0.4 
0.6 
0.1 
Cash and cash equivalents at end of period
$ 0.4 
 
 
 
$ 0.4 
 
 
 
$ 0.4 
$ 0.4 
$ 0.6 
Valuation and Qualifying Accounts and Reserves (Details) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 30, 2011
Dec. 31, 2010
Jan. 1, 2010
Allowance for doubtful accounts [Member]
 
 
 
Valuation and Qualifying Accounts and Reserves
 
 
 
Balance at beginning of the period
$ 23.7 
$ 24.8 
$ 29.4 
Charged to income
8.0 
12.8 
11.7 
Charged to other accounts
(2.7)
(0.4)
0.2 
Deductions
(9.5)
(13.5)
(16.5)
Balance at end of the period
19.5 
23.7 
24.8 
Allowance for deferred tax asset [Member]
 
 
 
Valuation and Qualifying Accounts and Reserves
 
 
 
Balance at beginning of the period
18.8 
18.7 
13.8 
Charged to income
(17.3)
1.7 
(6.6)
Charged to other accounts
18.8 
(1.6)
11.5 
Balance at end of the period
$ 20.3 
$ 18.8 
$ 18.7