ANIXTER INTERNATIONAL INC, 10-Q filed on 7/26/2016
Quarterly Report
Document and Entity Information
6 Months Ended
Jul. 1, 2016
Entity Information [Line Items]
 
Document Type
10-Q 
Amendment Flag
false 
Document Period End Date
Jul. 01, 2016 
Document Fiscal Year Focus
2016 
Document Fiscal Period Focus
Q2 
Trading Symbol
AXE 
Entity Registrant Name
ANIXTER INTERNATIONAL INC 
Entity Central Index Key
0000052795 
Current Fiscal Year End Date
--12-30 
Entity Filer Category
Large Accelerated Filer 
Entity Common Stock, Shares Outstanding
33,051,986 
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Net sales
$ 1,955.7 
$ 1,480.4 
$ 3,771.9 
$ 2,865.5 
Cost of goods sold
1,562.3 
1,151.5 
3,007.7 
2,227.3 
Gross profit
393.4 
328.9 
764.2 
638.2 
Operating expenses
336.7 
264.4 
647.2 
514.4 
Operating income
56.7 
64.5 
117.0 
123.8 
Other expense:
 
 
 
 
Interest expense
(19.8)
(12.7)
(39.9)
(26.9)
Other, net
(0.8)
(3.5)
(3.6)
(7.5)
Income from continuing operations before income taxes
36.1 
48.3 
73.5 
89.4 
Income tax expense from continuing operations
15.3 
18.8 
29.5 
33.4 
Net income from continuing operations
20.8 
29.5 
44.0 
56.0 
(Loss) income from discontinued operations before income taxes
(0.5)
46.5 
(1.2)
57.7 
Income tax (benefit) expense from discontinued operations
(0.2)
4.6 
(0.5)
23.2 
Net (loss) income from discontinued operations
(0.3)
41.9 
(0.7)
34.5 
Net income
20.5 
71.4 
43.3 
90.5 
Basic:
 
 
 
 
Continuing operations
$ 0.62 
$ 0.89 
$ 1.32 
$ 1.69 
Discontinued operations
$ (0.01)
$ 1.26 
$ (0.02)
$ 1.04 
Net income
$ 0.61 
$ 2.15 
$ 1.30 
$ 2.73 
Diluted:
 
 
 
 
Continuing operations
$ 0.62 
$ 0.88 
$ 1.32 
$ 1.68 
Discontinued operations
$ (0.01)
$ 1.26 
$ (0.03)
$ 1.03 
Net income
$ 0.61 
$ 2.14 
$ 1.29 
$ 2.71 
Basic weighted-average common shares outstanding
33.4 
33.2 
33.3 
33.2 
Effect of dilutive securities:
 
 
 
 
Stock options and units
0.1 
0.2 
0.1 
0.2 
Diluted weighted-average common shares outstanding
33.5 
33.4 
33.4 
33.4 
Net income
20.5 
71.4 
43.3 
90.5 
Other comprehensive income (loss):
 
 
 
 
Foreign currency translation
(5.1)
2.4 
13.2 
(38.6)
Changes in unrealized pension cost, net of tax
6.9 
4.2 
7.9 
5.1 
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax
(0.1)
Other comprehensive income (loss)
1.8 
6.6 
21.1 
(33.6)
Comprehensive income
$ 22.3 
$ 78.0 
$ 64.4 
$ 56.9 
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions, unless otherwise specified
Jul. 1, 2016
Jan. 1, 2016
Current assets:
 
 
Cash and cash equivalents
$ 133.2 
$ 151.3 
Accounts receivable, net
1,350.5 
1,326.4 
Inventories
1,186.5 
1,182.6 
Other current assets
50.9 
67.5 
Total current assets
2,721.1 
2,727.8 
Property and equipment, at cost
336.9 
346.4 
Accumulated depreciation
(196.3)
(214.6)
Property and equipment, net
140.6 
131.8 
Goodwill
767.0 
756.5 
Intangible assets, net
437.0 
453.8 
Other assets
72.9 
72.1 
Total assets
4,138.6 
4,142.0 
Current liabilities:
 
 
Accounts payable
1,001.8 
905.6 
Accrued expenses
217.2 
250.6 
Total current liabilities
1,219.0 
1,156.2 
Long-term debt
1,514.4 
1,642.9 
Other liabilities
155.4 
163.5 
Total liabilities
2,888.8 
2,962.6 
Stockholders’ equity:
 
 
Common stock - $1.00 par value, 100,000,000 shares authorized, 33,382,920 and 33,278,130 shares issued and outstanding at July 1, 2016 and January 1, 2016, respectively
33.4 
33.3 
Capital surplus
255.1 
249.2 
Retained earnings
1,170.7 
1,127.4 
Accumulated other comprehensive loss:
 
 
Foreign currency translation
(128.8)
(142.0)
Unrecognized pension liability, net
(80.6)
(88.5)
Total accumulated other comprehensive loss
(209.4)
(230.5)
Total stockholders’ equity
1,249.8 
1,179.4 
Total liabilities and stockholders’ equity
$ 4,138.6 
$ 4,142.0 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Jul. 1, 2016
Jan. 1, 2016
Common stock, par value
$ 1.00 
$ 1.00 
Common stock, shares authorized
100,000,000.00 
100,000,000.00 
Common stock, shares issued
33,382,920 
33,278,130 
Common stock, shares outstanding
33,382,920 
33,278,130 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Operating activities:
 
 
Net income
$ 43.3 
$ 90.5 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Loss (Gain) on sale of business, net of tax expense of $10.0 in 2015
(49.3)
Amortization of intangible assets
19.2 
10.7 
Depreciation
14.0 
11.9 
Stock-based compensation
8.4 
7.4 
Deferred income taxes
1.4 
Accretion of debt discount
1.1 
0.8 
Amortization of deferred financing costs
1.0 
0.7 
Pension plan contributions
(10.5)
(12.1)
Pension plan expenses
15.2 
5.9 
Excess income tax benefit from employee stock plans
(0.2)
(0.5)
Changes in current assets and liabilities, net
62.4 
(30.5)
Other, net
(5.9)
3.8 
Net cash provided by operating activities
149.4 
39.3 
Investing activities:
 
 
Capital expenditures, net
(16.4)
(22.1)
Proceeds from sale of business
(358.0)
Other, net
(4.7)
 
Cash Acquired from Acquisition
 
2.2 
Net cash (used in) provided by investing activities
(21.1)
338.1 
Financing activities:
 
 
Proceeds from borrowings
376.7 
508.8 
Repayments of borrowings
(496.7)
(573.8)
Retirement of Notes due 2015
(200.0)
Excess income tax benefit from employee stock plans
0.2 
0.5 
Other, net
(0.6)
(1.0)
Net cash used in financing activities
(143.5)
(268.0)
(Decrease) increase in cash and cash equivalents
(15.2)
109.4 
Effect of exchange rate changes on cash balances
(2.9)
4.8 
Cash and cash equivalents at beginning of period
151.3 
92.0 
Cash and cash equivalents at end of period
133.2 
206.2 
Canadian term loan [Member]
 
 
Financing activities:
 
 
Repayment of term loan
(23.1)
Term loan [Member]
 
 
Financing activities:
 
 
Repayment of term loan
$ 0 
$ (2.5)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation: The unaudited interim condensed consolidated financial statements of Anixter International Inc. and its subsidiaries (collectively referred to as "Anixter" or the "Company"), sometimes referred to in this Quarterly Report on Form 10-Q as "we", "our", "us", or "ourselves," have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Therefore, certain information and disclosures normally included in financial statements and related notes prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. Certain previously reported amounts have been reclassified to confirm to the current period presentation. The results as discussed in the financial statements reflect continuing operations only, unless otherwise noted.
These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Anixter's Annual Report on Form 10-K for the year ended January 1, 2016 ("2015 Form 10-K"). The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the Condensed Consolidated Financial Statements for the periods shown.
The Company maintains its financial records on the basis of a fiscal year ending on the Friday nearest December 31, with the fiscal quarters spanning thirteen weeks, with the first quarter ending on the Friday of the first thirteen-week period. The second quarter of fiscal year 2016 ended on July 1, 2016 and the second quarter of fiscal year 2015 ended on July 3, 2015.
Recently issued accounting pronouncements not yet adopted: In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, allows an employer to repurchase more of an employee’s shares than previously allowed for tax withholding purposes without triggering liability accounting, allows a company to make a policy election to account for forfeitures as they occur, and eliminates the requirement that excess tax benefits be realized before companies can recognize them. The new guidance also requires excess tax benefits and tax shortfalls to be presented on the cash flow statement as an operating activity rather than as a financing activity, and clarifies that cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation are to be presented as a financing activity. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The update’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. Examples of the use of judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The update also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The update provides for two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, as a revision to ASU 2014-09, which revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e. the original adoption date per ASU 2014-09). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies certain aspects of the principal-versus-agent guidance, including how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether it recognizes revenue over time or at a point in time. The amendments also clarify when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allow entities to disregard items that are immaterial in the context of a contract. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. The amendments also clarify how an entity should evaluate the collectibility threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard's contract criteria. We are currently evaluating the transition methods and the impact of adoption of these ASUs on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to put most leases on their balance sheets but recognize expenses on their income statements and also eliminates the current real estate-specific provisions. The guidance modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.
We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.
Other, net: The following represents the components of "Other, net" as reflected in the Condensed Consolidated Statements of Comprehensive Income:
 
 
Three Months Ended
 
Six Months Ended
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Other, net:
 
 
 
 
 
 
 
 
Foreign exchange
 
$
(1.4
)
 
$
(2.4
)
 
$
(4.5
)
 
$
(6.0
)
Foreign exchange devaluations
 

 

 

 
(0.7
)
Cash surrender value of life insurance policies
 
0.6

 
(0.6
)
 
1.2

 

Other
 

 
(0.5
)
 
(0.3
)
 
(0.8
)
Total other, net
 
$
(0.8
)
 
$
(3.5
)
 
$
(3.6
)
 
$
(7.5
)

In the first quarter of 2015, the Venezuelan government changed its policy regarding the bolivar, which required us to use the Sistema Marginal de Divisas or Marginal Exchange System ("SIMADI") a "completely free floating" rate. In the first half of 2015, the Venezuelan bolivar was devalued from approximately 52.0 bolivars to one USD to approximately 200.0 bolivars to one USD. As a result of this devaluation, we recorded a foreign exchange loss of $0.7 million in the six months ended July 3, 2015. During the first six months of 2016, the Venezuelan bolivar was devalued from approximately 200.0 bolivars to one USD to approximately 625.0 bolivars to one USD, which we believe will be the rate available to us in the event we repatriate cash from Venezuela. This devaluation did not have a material impact on our consolidated financial statements.
Several of our subsidiaries conduct business in a currency other than the legal entity’s functional currency. Transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. The increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that is included in "Other, net" in the Condensed Consolidated Statements of Comprehensive Income.
We purchase foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on our reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. Our strategy is to negotiate terms for our derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative perfectly offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). Our counterparties to foreign currency forward contracts have investment-grade credit ratings. We expect the creditworthiness of our counterparties to remain intact through the term of the transactions. We regularly monitor the creditworthiness of our counterparties to ensure no issues exist which could affect the value of the derivatives.
We do not hedge 100% of our foreign currency-denominated accounts. In addition, the results of hedging can vary significantly based on various factors, such as the timing of executing the foreign currency forward contracts versus the movement of the currencies as well as the fluctuations in the account balances throughout each reporting period. The fair value of the foreign currency forward contracts is based on the difference between the contract rate and the current exchange rate. The fair value of the foreign currency forward contracts is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy. At July 1, 2016 and January 1, 2016, foreign currency forward contracts were revalued at then-current foreign exchange rates with the changes in valuation reflected directly in "Other, net" in the Condensed Consolidated Statements of Comprehensive Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At July 1, 2016 and January 1, 2016, the gross notional amount of the foreign currency forward contracts outstanding was approximately $139.0 million and $196.1 million, respectively. At July 1, 2016 and January 1, 2016, the net notional amount of the foreign currency forward contracts outstanding was approximately $104.4 million and $132.8 million, respectively. While all of our foreign currency forward contracts are subject to master netting arrangements with our counterparties, we present our assets and liabilities related to derivative instruments on a gross basis within the Condensed Consolidated Balance Sheets. The gross fair value of our derivative assets and liabilities are immaterial.
The combined effect of changes in both the equity and bond markets resulted in changes in the cash surrender value of our company owned life insurance policies associated with our sponsored deferred compensation program.
Accumulated other comprehensive income (loss): We accumulate unrealized gains and losses in "Accumulated other comprehensive loss" ("AOCI"). These changes are also reported in "Other comprehensive income (loss)" on the Condensed Consolidated Statements of Comprehensive Income. These include unrealized gains and losses related to our defined benefit obligations, certain immaterial derivative transactions that have been designated as cash flow hedges and foreign currency translation. See Note 8. "Pension Plans" for pension related amounts reclassified into net income.
Our investments in several subsidiaries are recorded in currencies other than the USD. As these foreign currency denominated investments are translated at the end of each period during consolidation using period-end exchange rates, fluctuations of exchange rates between the foreign currency and the USD increase or decrease the value of those investments. These fluctuations and the results of operations for foreign subsidiaries, where the functional currency is not the USD, are translated into USD using the average exchange rates during the periods reported, while the assets and liabilities are translated using period-end exchange rates. The assets and liabilities-related translation adjustments are recorded as a separate component of AOCI, "Foreign currency translation." In addition, as our subsidiaries maintain investments denominated in currencies other than local currencies, exchange rate fluctuations will occur. Borrowings are raised in certain foreign currencies to minimize the exchange rate translation adjustment risk.
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS
    
On February 9, 2015, our Board of Directors approved the disposition of the OEM Supply - Fasteners ("Fasteners") business.  On February 11, 2015, through our wholly-owned subsidiary Anixter Inc., we entered into a definitive asset purchase agreement with American Industrial Partners ("AIP") to sell the Fasteners business for $380.0 million in cash, subject to certain post-closing adjustments. We closed the sale of the Fasteners business to AIP, excluding certain foreign locations, on June 1, 2015 and settled all net working capital adjustments relating to these entities in the fourth quarter of 2015. We received cash of $371.8 million on the sale of the Fasteners business. Including transaction related costs of $16.4 million, the sale resulted in a pre-tax gain of $40.3 million ($23.3 million, net of tax).

The assets and liabilities and operating results of the Fasteners business are presented as "discontinued operations" in our Condensed Consolidated Financial Statements. Current assets of discontinued operations are presented within "Other current assets" in the Condensed Consolidated Balance Sheets. Current and long-term liabilities of discontinued operations are presented within "Accrued Expenses" and "Other liabilities," respectively, in the Condensed Consolidated Balance Sheets. The components of the results from discontinued operations reflected in our Condensed Consolidated Statements of Cash Flows were immaterial.

We allocated interest costs to discontinued operations as a result of the sale of the Fasteners business. There was no allocated interest cost in 2016. The allocated interest cost was $0.6 million and $1.1 million in the three and six months ended July 3, 2015. This represents the amount of interest costs not directly attributable to our other operations that would not have been incurred if we had the proceeds from the sale of the Fasteners business at the beginning of the period.

The following represents the components of the results from discontinued operations as reflected in our Condensed Consolidated Statements of Comprehensive Income:
 
 
Three Months Ended
 
Six Months Ended
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Net sales
 
$
1.3

 
$
148.4

 
$
1.8

 
$
397.8

Operating income
 
$

 
$
5.2

 
$

 
$
17.1

(Loss) income from discontinued operations before income taxes
 
$
(0.5
)
 
$
46.5

 
$
(1.2
)
 
$
57.7

Income tax (benefit) expense from discontinued operations
 
$
(0.2
)
 
$
4.6

 
$
(0.5
)
 
$
23.2

Net (loss) income from discontinued operations
 
$
(0.3
)
 
$
41.9

 
$
(0.7
)
 
$
34.5



As reflected on our Condensed Consolidated Balance Sheets as of July 1, 2016 and January 1, 2016, the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows:
(In millions)
July 1,
2016
 
January 1,
2016
Assets of discontinued operations:
 
 
 
Accounts receivable
$
0.9

 
$
2.6

Inventories
0.1

 
1.2

Total assets of discontinued operations
$
1.0

 
$
3.8

 
 
 
 
Liabilities of discontinued operations:
 
 
 
Accounts payable
$
1.2

 
$
1.3

Accrued expenses
4.1

 
4.0

Other liabilities
0.6

 
1.7

Total liabilities of discontinued operations
$
5.9

 
$
7.0



Total assets and liabilities of discontinued operations are included in other current assets, accrued expenses and other liabilities on the Condensed Consolidated Balance Sheets.
BUSINESS COMBINATION
BUSINESS COMBINATION
BUSINESS COMBINATION
On October 5, 2015, we completed the acquisition of the Power Solutions business ("Power Solutions") from HD Supply, Inc. in exchange for $829.4 million (net of cash and outstanding checks of $11.7 million). The acquisition was financed using borrowings under new financing arrangements and cash on hand.
Power Solutions was a compelling strategic acquisition for us that significantly enhances our competitive position in the electrical wire and cable business and further strengthens our customer and supplier value proposition. In addition to transforming our existing utility business into a leading North American distributor to the utility sector, this acquisition enables us to provide a full line electrical solution to our existing customers and provides us with broader access to the mid-size electrical construction market. The high voltage business of Power Solutions forms the Utility Power Solutions ("UPS") segment within our realigned reportable segments. The low voltage business of Power Solutions was combined into our historical Electrical and Electronic Wire and Cable ("W&C") segment to form the Electrical & Electronic Solutions ("EES") segment.
The following table sets forth the preliminary purchase price allocation, as of the acquisition date, for Power Solutions. During the second quarter of 2016, we recorded a preliminary purchase price allocation adjustment for the Power Solutions acquisition. The purchase price allocation is pending finalization of the valuation of the acquired leases, intangible assets and related deferred tax liabilities, which is expected to be completed in 2016.
(In millions)
 
 
 
Cash
 
 
$
11.7

Current assets, net
 
 
565.6

Property and equipment, net
 
 
30.8

Goodwill
 
 
189.4

Intangible assets
 
 
280.8

Non-current assets
 
 
5.4

Current liabilities
 
 
(234.1
)
Non-current liabilities
 
 
(8.5
)
Total purchase price
 
 
$
841.1


Power Solutions goodwill of $34.0 million and $155.4 million was recorded in the EES and UPS reportable segments, respectively. The goodwill resulting from the acquisition largely consists of our expected future product sales and synergies from combining Power Solutions products with our existing product offerings. Other than $78.8 million, the remaining goodwill is not deductible for tax purposes. The following table sets forth the components of preliminary identifiable intangible assets acquired and their estimated useful lives as of the date of the acquisition:
(In millions)
Average useful life (in years)
 
Fair value
Customer relationships
14-18
 
$
278.4

Non-compete agreements
1
 
2.4

Total intangible assets
 
 
$
280.8


For the three months ended July 1, 2016, the Power Solutions acquisition added $510.6 million of revenue and $12.7 million in operating income to our consolidated results. For the six months ended July 1, 2016, the Power Solutions acquisition added $1,004.9 million of revenue and $27.6 million in operating income to our consolidated results. Since the date of acquisition, the Power Solutions results are reflected in our Condensed Consolidated Financial Statements.

The following unaudited pro forma information shows our results of operations as if the acquisition of Power Solutions had been completed as of the beginning of fiscal 2015. Adjustments have been made for the pro forma effects of interest expense and deferred financing costs related to the financing for the acquisition, depreciation and amortization of tangible and intangible assets recognized as part of the business combinations, related income taxes and various other costs which would not have been incurred had we and Power Solutions operated as a combined entity.
 
 
Three Months Ended
 
Six Months Ended
(In millions, except per share amounts)
 
July 3, 2015
 
July 3, 2015
Net sales
 
$
2,007.2

 
$
3,874.9

Net income from continuing operations
 
$
34.5

 
$
64.1

Income per share from continuing operations:
 
 
 
 
Basic
 
$
1.04

 
$
1.93

Diluted
 
$
1.03

 
$
1.92

RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING AND OTHER CHARGES
RESTRUCTURING CHARGES
We consider restructuring activities to be programs whereby we fundamentally change our operations, such as closing and consolidating facilities, reducing headcount and realigning operations in response to changing market conditions. The following table summarizes activity related to liabilities associated with our restructuring activities:
 
Restructuring Activity
 
Q2 2016
Plan
 
Q4 2015
Plan
 
Q2 2015
Plan
 
Q4 2012
Plan
 
Total
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
Balance at January 1, 2016
$

 
$

 
$
3.0

 
$
0.2

 
$
1.0

 
$
0.4

 
$
4.0

 
$
0.6

Charges
4.3

 
1.5

 
(0.2
)
 

 

 

 
4.1

 
1.5

Payments and other
(0.2
)
 

 
(1.4
)
 
(0.2
)
 
(0.5
)
 
(0.1
)
 
(2.1
)
 
(0.3
)
Balance at July 1, 2016
$
4.1

 
$
1.5

 
$
1.4

 
$

 
$
0.5

 
$
0.3

 
$
6.0

 
$
1.8


(a)
Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated.
(b)
Facility exit and other costs primarily consist of lease termination costs.
Q2 2016 Restructuring Plan
In the second quarter of 2016, we recorded a pre-tax charge of $2.1 million, $1.4 million, and $2.2 million in our NSS, EES, and UPS segments, respectively, and an additional $0.1 million at our corporate headquarters, primarily for severance-related expenses associated with a reduction of approximately 150 positions which will result in approximately $10.0 million of annualized savings. The $5.8 million charge primarily reflects actions we are taking to improve efficiencies in our Canada and Latin America regions. This charge was included in "Operating expenses" in our Consolidated Statement of Comprehensive Income in the second quarter of 2016. The majority of the remaining charge included in accrued expenses of $5.6 million as of July 1, 2016 is expected to be paid by the second quarter of 2017.
Q4 2015 Restructuring Plan
In the fourth quarter of 2015, we recorded a pre-tax charge of $1.0 million, $2.3 million and $0.1 million in our NSS, EES, and UPS segments, respectively, primarily for severance-related expenses associated with a reduction of approximately 80 positions. The $3.4 million charge primarily reflects actions we are taking to improve efficiencies in conjunction with the acquisition of Power Solutions which will result in approximately $4.0 million of annualized savings. This charge was included in "Operating expenses" in our Consolidated Statement of Comprehensive Income for fiscal year 2015. The majority of the remaining charge included in accrued expenses of $1.4 million as of July 1, 2016 is expected to be paid by the fourth quarter of 2016.
Q2 2015 Restructuring Plan
In the second quarter of 2015, we recorded a pre-tax charge of $3.0 million and $2.2 million in our NSS and EES segments, respectively, and an additional $0.1 million at our corporate headquarters for severance-related expenses associated with a reduction of approximately 100 positions. The $5.3 million charge reflects actions we took to improve efficiencies and eliminate the stranded costs in conjunction with the sale of the Fasteners business which will result in approximately $13.0 million of annualized savings. In the fourth quarter of 2015, we reduced the charge by $0.5 million, primarily in our EES segment, due to a reduction in estimated future obligations under the plan. This charge was included in "Operating expenses" in our Consolidated Statement of Comprehensive Income for fiscal year 2015. The majority of the remaining charge included in accrued expenses of $0.5 million as of July 1, 2016 is expected to be paid by the second quarter of 2016.
Q4 2012 Restructuring Plan
In the fourth quarter of 2012, recognizing the ongoing challenging global economic conditions, we took aggressive actions to restructure our costs across all segments and geographies, resulting in a pre-tax charge of $4.1 million and $2.8 million in our NSS and EES segments, respectively. The $6.9 million restructuring charge primarily consisted of severance-related expenses associated with a reduction of over 200 positions. This charge was included in "Operating expenses" in our Consolidated Statement of Income for fiscal year 2012. At July 1, 2016, the majority of the remaining charge included in accrued expenses of $0.3 million is expected to be paid in 2016.
DEBT
DEBT
DEBT
Debt is summarized below:
(In millions)
 
July 1,
2016
 
January 1,
2016
Long-term debt:
 
 
 
 
5.50% Senior notes due 2023
 
$
346.0

 
$
345.8

5.125% Senior notes due 2021
 
395.3

 
394.9

5.625% Senior notes due 2019
 
347.2

 
346.8

Canadian term loan
 
162.1

 
172.9

Revolving lines of credit
 
270.0

 
390.1

Other
 
2.2

 
2.6

Unamortized debt issuance costs
 
(8.4
)
 
(10.2
)
Total long-term debt
 
$
1,514.4

 
$
1,642.9


 
Retirement of Debt
In the first quarter of 2015, we retired our 5.95% Senior notes due 2015 upon maturity for $200.0 million. Available borrowings under existing long-term financing agreements were used to settle the maturity value.
Fair Value of Debt
The fair value of our debt instruments is measured using observable market information which would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements. Our fixed-rate debt consists of the Senior notes due 2023, Senior notes due 2021 and Senior notes due 2019.
 
At July 1, 2016, our total carrying value and estimated fair value of debt outstanding was $1,514.4 million and $1,552.8 million, respectively. This compares to a carrying value and estimated fair value of debt outstanding at January 1, 2016 of $1,642.9 million and $1,669.5 million, respectively. The decrease in the carrying value and estimated fair value is primarily due to lower outstanding borrowings under our revolving lines of credit and partial repayment of our Canadian term loan.
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES
From time to time, we are party to legal proceedings and matters that arise in the ordinary course of business. As of July 1, 2016, we do not believe there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters has been incurred. However, the ultimate resolutions of these proceedings and matters are inherently unpredictable. As such, our financial condition and results of operations could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters.
INCOME TAXES
INCOME TAXES
 INCOME TAXES
Our effective tax rate from continuing operations for the second quarter of 2016 was 42.4% compared to 38.8% in the prior year period. Our effective tax rate from continuing operations for the six months ended July 1, 2016 was 40.1% compared to 37.3% in the prior year period. The increase was attributable to the change in the country mix of earnings since many of the current year operating expense charges of $33.7 million in the three months ended July 1, 2016 and $45.6 million in the six months ended July 1, 2016, were incurred in countries with low income tax rates or have valuation allowances recorded against deferred tax assets.
As of January 2, 2015, we asserted permanent reinvestment of all non-U.S. earnings, including the non-U.S. earnings of the Fasteners business.  As a result of our Board of Directors’ approval of the disposition of the Fasteners business, we were no longer permanently reinvested with respect to the non-U.S. earnings of the Fasteners business, because, following the disposition, we intended to repatriate to the U.S. most of the net proceeds attributable to the sale of the non-U.S. Fasteners business via intercompany debt repayment, dividend or other means.  During the second quarter of 2015, we refined the anticipated repatriation amount and the estimated tax impact of the change in the reinvestment assertion, and we reduced the first quarter estimate by $4.9 million. Therefore, our six months ended July 3, 2015 results included, as a component of discontinued operations, $10.3 million of expense for U.S. federal and state, and foreign income taxes and withholding taxes related to this change in our reinvestment assertion. We consider the remaining undistributed earnings of our foreign subsidiaries, along with future earnings, to be indefinitely reinvested and, accordingly, no provision for U.S. federal and state income taxes or any withholding taxes has been recorded.
PENSION PLANS
PENSION PLANS
PENSION PLANS
Our defined benefit pension plans are the plans in the United States, which consist of the Anixter Inc. Pension Plan, the Executive Benefit Plan and the Supplemental Executive Retirement Plan ("SERP") (together the "Domestic Plans") and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together the "Foreign Plans"). The majority of our defined benefit pension plans are non-contributory and cover substantially all full-time domestic employees and certain employees in other countries. Retirement benefits are provided based on compensation as defined in both the Domestic Plans and the Foreign Plans. Our policy is to fund all Domestic Plans as required by the Employee Retirement Income Security Act of 1974 ("ERISA") and the IRS and all Foreign Plans as required by applicable foreign laws. The Executive Benefit Plan and SERP are the only two plans that are unfunded. Assets in the various plans consist primarily of equity securities and fixed income investments.
In the fourth quarter of 2015, we commenced settlement of the liabilities of one of our Europe pension plans. At that time, we entered into a buy-in policy with an insurance carrier for that plan. In the second quarter of 2016, we terminated the buy-in policy and entered into an agreement for issuance of a buy-out policy and settled the pension obligation. Accumulated other comprehensive losses of approximately $9.6 million6.9 million) were realized as a result of the settlement and are reflected in our Condensed Consolidated Statement of Comprehensive Income.
Components of net periodic pension cost are as follows:
 
 
Three Months Ended
 
 
Domestic
 
Foreign
 
Total
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Service cost
 
$
1.2

 
$
1.7

 
$
1.5

 
$
1.6

 
$
2.7

 
$
3.3

Interest cost
 
2.8

 
4.1

 
2.3

 
2.3

 
5.1

 
6.4

Expected return on plan assets
 
(3.5
)
 
(5.3
)
 
(2.6
)
 
(2.7
)
 
(6.1
)
 
(8.0
)
Net amortization (a)
 
0.5

 
0.5

 
0.7

 
0.8

 
1.2

 
1.3

Settlement charge
 

 

 
9.6

 

 
9.6

 

Net periodic pension cost
 
$
1.0

 
$
1.0

 
$
11.5

 
$
2.0

 
$
12.5

 
$
3.0


(a) Reclassified into operating expenses from AOCI.

 
 
Six Months Ended
 
 
Domestic
 
Foreign
 
Total
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Service cost
 
$
2.4

 
$
3.0

 
$
3.0

 
$
3.3

 
$
5.4

 
$
6.3

Interest cost
 
5.7

 
6.7

 
4.4

 
4.6

 
10.1

 
11.3

Expected return on plan assets
 
(7.1
)
 
(8.8
)
 
(5.1
)
 
(5.3
)
 
(12.2
)
 
(14.1
)
Net amortization (a)
 
1.0

 
0.9

 
1.3

 
1.5

 
2.3

 
2.4

Settlement charge
 

 

 
9.6

 

 
9.6

 

Net periodic pension cost
 
$
2.0

 
$
1.8

 
$
13.2

 
$
4.1

 
$
15.2

 
$
5.9

(a) Reclassified into operating expenses from AOCI.
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY
At the end of the second quarter of 2016, there were 1.2 million shares reserved for issuance under all incentive plans. Under the current stock incentive plans, we pay non-employee directors annual retainer fees and, at their election, meeting fees in the form of stock units. Employee and director stock units are included in common stock outstanding on the date of vesting, and stock options are included in common stock outstanding upon exercise by the participant. The fair value of employee stock options and units is amortized over the respective vesting period representing the requisite service period, generally three, four or six years for stock units and four years for stock options. Director stock units are expensed in the period in which they are granted, as these vest immediately.
During the first quarter of 2016, we initiated a performance-based restricted stock unit ("performance units") program that will vest in one-third tranches to be evaluated on the anniversary of the first, second and third performance cycles. Each evaluation period will be based on the achievement of our total shareholder return ("TSR") relative to the TSR of the S&P Mid Cap 400 index. The issuance of the vested shares will be on the final vesting date of year three. The granted units will be adjusted based on the specific payout percentage of the grant agreement. The fair value of each tranche related to the performance units were estimated at the grant date using the Monte Carlo Simulation pricing model.
During the three and six months ended July 1, 2016, we granted 10,026 and 405,628 stock units to employees, respectively, with a weighted-average grant-date fair value of $0.6 million and $17.8 million, respectively. During the three months ended July 1, 2016, we did not issue performance units to employees. During the six months ended July 1, 2016, we granted 85,839 performance units to employees with a weighted-average grant-date fair value of $1.8 million. During the three and six months ended July 1, 2016, we granted directors 12,999 and 23,167 stock units, respectively, with a weighted-average grant-date fair value of $0.7 million and $1.2 million, respectively. We exclude antidilutive stock options and units from the calculation of weighted-average shares for diluted earnings per share. For the second quarter of 2016 and 2015, the antidilutive stock options and units were immaterial.
BUSINESS SEGMENTS
BUSINESS SEGMENTS
BUSINESS SEGMENTS
We are a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable products and utility power solutions. We have identified Network & Security Solutions ("NSS"), Electrical and Electronic Solutions ("EES") and Utility Power Solutions ("UPS") as reportable segments.
We incur corporate expenses to obtain and coordinate financing, tax, information technology, legal and other related services, certain of which were rebilled to subsidiaries. These corporate expenses were historically allocated to our business segments based primarily on projected sales and estimated use of time. A portion of these corporate expenses were reported in corporate as they historically had been allocated to the Fasteners segment but were not considered directly related to the discontinued operations. Beginning in the first quarter of 2016, we no longer allocate corporate expenses to our business segments. We also have various corporate assets which are reported in corporate. Segment assets may not include jointly used assets, but segment results include depreciation expense or other allocations related to those assets as such allocation is made for internal reporting. Interest expense and other non-operating items are not allocated to the segments or reviewed on a segment basis, except as previously discussed in Note 2. "Discontinued Operations."
The categorization of net sales by end market is determined using a variety of data points including the technical characteristic of the product, the "sold to" customer information, the "ship to" customer information and the end customer product or application into which our product will be incorporated. We also have largely specialized our sales organization by segment. As data systems for capturing and tracking this data evolve and improve, the categorization of products by end market can vary over time. When this occurs, we reclassify net sales by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.
Segment Financial Information
Segment information for the three and six months ended July 1, 2016 and July 3, 2015 are as follows:
(In millions)
 
 
 
 
 
 
 
 
 
 
Second Quarter of 2016
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,044.7

 
$
555.1

 
$
355.9

 
$

 
$
1,955.7

Operating income
 
64.9

 
23.9

 
12.0

 
(44.1
)
 
56.7

Second Quarter of 2015 (As revised)
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,011.7

 
$
449.5

 
$
19.2

 
$

 
$
1,480.4

Operating income
 
66.6

 
33.6

 
2.4

 
(38.1
)
 
64.5

Six Months of 2016
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,993.8

 
$
1,061.1

 
$
717.0

 
$

 
$
3,771.9

Operating income
 
123.7

 
46.4

 
26.3

 
(79.4
)
 
117.0

Six Months of 2015 (As revised)
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,939.7

 
$
890.3

 
$
35.5

 
$

 
$
2,865.5

Operating income
 
122.3

 
69.4

 
4.4

 
(72.3
)
 
123.8


Net sales and operating income in our UPS segment for the six months ended July 3, 2015 were previously reported in our EES segment.

Goodwill Assigned to Segments
The following table presents the changes in goodwill allocated to our reporting units during the six months ended July 1, 2016:
 
(In millions)
 
NSS
 
EES
 
UPS
 
Total
Balance as of January 1, 2016
 
$
393.3

 
$
211.9

 
$
151.3

 
$
756.5

Acquisition related (a)
 
(0.5
)
 
(1.4
)
 
1.0

 
(0.9
)
Reassignment of goodwill
 
11.2

 
(31.8
)
 
20.6

 

Foreign currency translation
 
3.2

 
0.6

 
7.6

 
11.4

Balance as of July 1, 2016
 
$
407.2

 
$
179.3

 
$
180.5

 
$
767.0


(a)
In the first and second quarters of 2016, we recorded an immaterial decrease in goodwill primarily related to a preliminary valuation of Power Solutions value of fixed assets.
We evaluate goodwill for impairment annually at the beginning of the third quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. We assess goodwill for impairment by first performing a qualitative assessment, which considers specific factors, based on the weight of evidence, and the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount using the qualitative assessment, we perform the two-step impairment test. From time to time, we may also bypass the qualitative assessment and proceed directly to the two-step impairment test. The first step of the impairment test is to identify a potential impairment by comparing the fair value of a reporting unit with its carrying amount. The estimates of fair value of a reporting unit are determined using the income approach and/or the market approach as described below. If step one of the test indicates a carrying value above the estimated fair value, the second step of the goodwill impairment test is performed by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied residual value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination.
As a result of the reclassification of net sales of various product categories between our segments in 2016, we reassigned the carrying amount of goodwill based on the relative fair value of our reporting units. We then performed the quantitative two-step impairment test of goodwill for all reporting units before and after the change in composition of our segments utilizing a combination of the income and market approaches, both of which are broadly defined below. We concluded that no impairment of goodwill existed and the carrying amount of goodwill to be fully recoverable.
The income approach is a quantitative evaluation to determine the fair value of the reporting unit. Under the income approach we determine the fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital plus a forecast risk, which reflects the overall level of inherent risk of the reporting unit and the rate of return a market participant would expect to earn. The inputs used for the income approach were significant unobservable inputs, or Level 3 inputs, as described in the accounting fair value hierarchy. Estimated future cash flows were based on our internal projection models, industry projections and other assumptions deemed reasonable by management.
The market approach measures the fair value of a reporting unit through the analysis of recent sales, offerings, and financial multiples (sales or earnings before interest, tax, depreciation and amortization ("EBITDA")) of comparable businesses. Consideration is given to the financial conditions and operating performance of the reporting unit being valued relative to those publicly-traded companies operating in the same or similar lines of business.
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.
Anixter International Inc. guarantees, fully and unconditionally, substantially all of the debt of our subsidiaries, which include Anixter Inc., our 100% owned primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc.:
ANIXTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)
 
July 1,
2016
 
January 1,
2016
Assets:
 
 
 
 
Current assets
 
$
2,719.9

 
$
2,727.2

Property, equipment and capital leases, net
 
149.3

 
141.1

Goodwill
 
767.0

 
756.5

Intangible assets, net
 
437.0

 
453.8

Other assets
 
72.9

 
72.1

 
 
$
4,146.1

 
$
4,150.7

Liabilities and Stockholder’s Equity:
 
 
 
 
Current liabilities
 
$
1,219.9

 
$
1,156.8

Long-term debt
 
1,526.4

 
1,655.6

Other liabilities
 
153.5

 
161.1

Stockholder’s equity
 
1,246.3

 
1,177.2

 
 
$
4,146.1

 
$
4,150.7


ANIXTER INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
 
 
Three Months Ended
 
Six Months Ended
 (In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Net sales
 
$
1,955.7

 
$
1,480.4

 
$
3,771.9

 
$
2,865.5

Operating income
 
$
58.2

 
$
65.9

 
$
120.1

 
$
126.7

Income from continuing operations before income taxes
 
$
37.4

 
$
49.3

 
$
76.1

 
$
91.7

Net (loss) income from discontinued operations
 
$
(0.3
)
 
$
41.9

 
$
(0.7
)
 
$
34.5

Net income
 
$
21.2

 
$
72.2

 
$
44.8

 
$
92.2

Comprehensive income
 
$
23.0

 
$
78.8

 
$
65.9

 
$
58.6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
Basis of presentation: The unaudited interim condensed consolidated financial statements of Anixter International Inc. and its subsidiaries (collectively referred to as "Anixter" or the "Company"), sometimes referred to in this Quarterly Report on Form 10-Q as "we", "our", "us", or "ourselves," have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Therefore, certain information and disclosures normally included in financial statements and related notes prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. Certain previously reported amounts have been reclassified to confirm to the current period presentation. The results as discussed in the financial statements reflect continuing operations only, unless otherwise noted.
These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Anixter's Annual Report on Form 10-K for the year ended January 1, 2016 ("2015 Form 10-K"). The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the Condensed Consolidated Financial Statements for the periods shown.
The Company maintains its financial records on the basis of a fiscal year ending on the Friday nearest December 31, with the fiscal quarters spanning thirteen weeks, with the first quarter ending on the Friday of the first thirteen-week period. The second quarter of fiscal year 2016 ended on July 1, 2016 and the second quarter of fiscal year 2015 ended on July 3, 2015.
Recently issued accounting pronouncements not yet adopted: In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting, which changes how companies account for certain aspects of share-based payments to employees. The new guidance requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled, allows an employer to repurchase more of an employee’s shares than previously allowed for tax withholding purposes without triggering liability accounting, allows a company to make a policy election to account for forfeitures as they occur, and eliminates the requirement that excess tax benefits be realized before companies can recognize them. The new guidance also requires excess tax benefits and tax shortfalls to be presented on the cash flow statement as an operating activity rather than as a financing activity, and clarifies that cash paid to a tax authority when shares are withheld to satisfy its statutory income tax withholding obligation are to be presented as a financing activity. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which provides guidance for revenue recognition. The update’s core principle is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than under current guidance. Examples of the use of judgments and estimates may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The update also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The update provides for two transition methods to the new guidance: a retrospective approach and a modified retrospective approach. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers: Deferral of the Effective Date, as a revision to ASU 2014-09, which revised the effective date to fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted but not prior to periods beginning after December 15, 2016 (i.e. the original adoption date per ASU 2014-09). In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers: Principal versus Agent Considerations, which clarifies certain aspects of the principal-versus-agent guidance, including how an entity should identify the unit of accounting for the principal versus agent evaluation and how it should apply the control principle to certain types of arrangements, such as service transactions. The amendments also reframe the indicators to focus on evidence that an entity is acting as a principal rather than as an agent. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers: Identifying Performance Obligations and Licensing, which clarifies how an entity should evaluate the nature of its promise in granting a license of intellectual property, which will determine whether it recognizes revenue over time or at a point in time. The amendments also clarify when a promised good or service is separately identifiable (i.e., distinct within the context of the contract) and allow entities to disregard items that are immaterial in the context of a contract. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers: Narrow-Scope Improvements and Practical Expedients, which amends the new revenue recognition guidance on transition, collectibility, noncash consideration and the presentation of sales and other similar taxes. The amendments also clarify how an entity should evaluate the collectibility threshold and when an entity can recognize nonrefundable consideration received as revenue if an arrangement does not meet the standard's contract criteria. We are currently evaluating the transition methods and the impact of adoption of these ASUs on our consolidated financial statements.
In February 2016, the FASB issued ASU 2016-02, Leases, which requires lessees to put most leases on their balance sheets but recognize expenses on their income statements and also eliminates the current real estate-specific provisions. The guidance modifies the classification criteria and the accounting for sales-type and direct financing leases for lessors. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, which requires the measurement of expected credit losses for financial instruments held at the reporting date based on historical experience, current conditions and reasonable forecasts. The main objective of this ASU is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The standard is effective for our financial statements issued for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. We are currently evaluating the impact of adoption of this ASU on our consolidated financial statements.
We do not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on our consolidated financial statements or disclosures.
Other, net: The following represents the components of "Other, net" as reflected in the Condensed Consolidated Statements of Comprehensive Income:
 
 
Three Months Ended
 
Six Months Ended
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Other, net:
 
 
 
 
 
 
 
 
Foreign exchange
 
$
(1.4
)
 
$
(2.4
)
 
$
(4.5
)
 
$
(6.0
)
Foreign exchange devaluations
 

 

 

 
(0.7
)
Cash surrender value of life insurance policies
 
0.6

 
(0.6
)
 
1.2

 

Other
 

 
(0.5
)
 
(0.3
)
 
(0.8
)
Total other, net
 
$
(0.8
)
 
$
(3.5
)
 
$
(3.6
)
 
$
(7.5
)

In the first quarter of 2015, the Venezuelan government changed its policy regarding the bolivar, which required us to use the Sistema Marginal de Divisas or Marginal Exchange System ("SIMADI") a "completely free floating" rate. In the first half of 2015, the Venezuelan bolivar was devalued from approximately 52.0 bolivars to one USD to approximately 200.0 bolivars to one USD. As a result of this devaluation, we recorded a foreign exchange loss of $0.7 million in the six months ended July 3, 2015. During the first six months of 2016, the Venezuelan bolivar was devalued from approximately 200.0 bolivars to one USD to approximately 625.0 bolivars to one USD, which we believe will be the rate available to us in the event we repatriate cash from Venezuela. This devaluation did not have a material impact on our consolidated financial statements.
Several of our subsidiaries conduct business in a currency other than the legal entity’s functional currency. Transactions may produce receivables or payables that are fixed in terms of the amount of foreign currency that will be received or paid. A change in exchange rates between the functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. The increase or decrease in expected functional currency cash flows is a foreign currency transaction gain or loss that is included in "Other, net" in the Condensed Consolidated Statements of Comprehensive Income.
We purchase foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on our reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. Our strategy is to negotiate terms for our derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative perfectly offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). Our counterparties to foreign currency forward contracts have investment-grade credit ratings. We expect the creditworthiness of our counterparties to remain intact through the term of the transactions. We regularly monitor the creditworthiness of our counterparties to ensure no issues exist which could affect the value of the derivatives.
We do not hedge 100% of our foreign currency-denominated accounts. In addition, the results of hedging can vary significantly based on various factors, such as the timing of executing the foreign currency forward contracts versus the movement of the currencies as well as the fluctuations in the account balances throughout each reporting period. The fair value of the foreign currency forward contracts is based on the difference between the contract rate and the current exchange rate. The fair value of the foreign currency forward contracts is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy. At July 1, 2016 and January 1, 2016, foreign currency forward contracts were revalued at then-current foreign exchange rates with the changes in valuation reflected directly in "Other, net" in the Condensed Consolidated Statements of Comprehensive Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At July 1, 2016 and January 1, 2016, the gross notional amount of the foreign currency forward contracts outstanding was approximately $139.0 million and $196.1 million, respectively. At July 1, 2016 and January 1, 2016, the net notional amount of the foreign currency forward contracts outstanding was approximately $104.4 million and $132.8 million, respectively. While all of our foreign currency forward contracts are subject to master netting arrangements with our counterparties, we present our assets and liabilities related to derivative instruments on a gross basis within the Condensed Consolidated Balance Sheets. The gross fair value of our derivative assets and liabilities are immaterial.
The combined effect of changes in both the equity and bond markets resulted in changes in the cash surrender value of our company owned life insurance policies associated with our sponsored deferred compensation program.
Accumulated other comprehensive income (loss): We accumulate unrealized gains and losses in "Accumulated other comprehensive loss" ("AOCI"). These changes are also reported in "Other comprehensive income (loss)" on the Condensed Consolidated Statements of Comprehensive Income. These include unrealized gains and losses related to our defined benefit obligations, certain immaterial derivative transactions that have been designated as cash flow hedges and foreign currency translation. See Note 8. "Pension Plans" for pension related amounts reclassified into net income.
Our investments in several subsidiaries are recorded in currencies other than the USD. As these foreign currency denominated investments are translated at the end of each period during consolidation using period-end exchange rates, fluctuations of exchange rates between the foreign currency and the USD increase or decrease the value of those investments. These fluctuations and the results of operations for foreign subsidiaries, where the functional currency is not the USD, are translated into USD using the average exchange rates during the periods reported, while the assets and liabilities are translated using period-end exchange rates. The assets and liabilities-related translation adjustments are recorded as a separate component of AOCI, "Foreign currency translation." In addition, as our subsidiaries maintain investments denominated in currencies other than local currencies, exchange rate fluctuations will occur. Borrowings are raised in certain foreign currencies to minimize the exchange rate translation adjustment risk.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
Summary of Components of Other Net Reflected in Consolidated Statements of Operations
Other, net: The following represents the components of "Other, net" as reflected in the Condensed Consolidated Statements of Comprehensive Income:
 
 
Three Months Ended
 
Six Months Ended
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Other, net:
 
 
 
 
 
 
 
 
Foreign exchange
 
$
(1.4
)
 
$
(2.4
)
 
$
(4.5
)
 
$
(6.0
)
Foreign exchange devaluations
 

 

 

 
(0.7
)
Cash surrender value of life insurance policies
 
0.6

 
(0.6
)
 
1.2

 

Other
 

 
(0.5
)
 
(0.3
)
 
(0.8
)
Total other, net
 
$
(0.8
)
 
$
(3.5
)
 
$
(3.6
)
 
$
(7.5
)
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS (Tables)
The following represents the components of the results from discontinued operations as reflected in our Condensed Consolidated Statements of Comprehensive Income:
 
 
Three Months Ended
 
Six Months Ended
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Net sales
 
$
1.3

 
$
148.4

 
$
1.8

 
$
397.8

Operating income
 
$

 
$
5.2

 
$

 
$
17.1

(Loss) income from discontinued operations before income taxes
 
$
(0.5
)
 
$
46.5

 
$
(1.2
)
 
$
57.7

Income tax (benefit) expense from discontinued operations
 
$
(0.2
)
 
$
4.6

 
$
(0.5
)
 
$
23.2

Net (loss) income from discontinued operations
 
$
(0.3
)
 
$
41.9

 
$
(0.7
)
 
$
34.5

As reflected on our Condensed Consolidated Balance Sheets as of July 1, 2016 and January 1, 2016, the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows:
(In millions)
July 1,
2016
 
January 1,
2016
Assets of discontinued operations:
 
 
 
Accounts receivable
$
0.9

 
$
2.6

Inventories
0.1

 
1.2

Total assets of discontinued operations
$
1.0

 
$
3.8

 
 
 
 
Liabilities of discontinued operations:
 
 
 
Accounts payable
$
1.2

 
$
1.3

Accrued expenses
4.1

 
4.0

Other liabilities
0.6

 
1.7

Total liabilities of discontinued operations
$
5.9

 
$
7.0

BUSINESS COMBINATION (Tables) (Power Solutions [Member])
(In millions)
 
 
 
Cash
 
 
$
11.7

Current assets, net
 
 
565.6

Property and equipment, net
 
 
30.8

Goodwill
 
 
189.4

Intangible assets
 
 
280.8

Non-current assets
 
 
5.4

Current liabilities
 
 
(234.1
)
Non-current liabilities
 
 
(8.5
)
Total purchase price
 
 
$
841.1

(In millions)
Average useful life (in years)
 
Fair value
Customer relationships
14-18
 
$
278.4

Non-compete agreements
1
 
2.4

Total intangible assets
 
 
$
280.8

 
 
Three Months Ended
 
Six Months Ended
(In millions, except per share amounts)
 
July 3, 2015
 
July 3, 2015
Net sales
 
$
2,007.2

 
$
3,874.9

Net income from continuing operations
 
$
34.5

 
$
64.1

Income per share from continuing operations:
 
 
 
 
Basic
 
$
1.04

 
$
1.93

Diluted
 
$
1.03

 
$
1.92

RESTRUCTURING AND OTHER CHARGES (Tables)
Summary of Liabilities Associated with Restructuring and Employee Severance
The following table summarizes activity related to liabilities associated with our restructuring activities:
 
Restructuring Activity
 
Q2 2016
Plan
 
Q4 2015
Plan
 
Q2 2015
Plan
 
Q4 2012
Plan
 
Total
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
 
Employee-Related Costs (a)
 
Facility Exit and Other Costs (b)
Balance at January 1, 2016
$

 
$

 
$
3.0

 
$
0.2

 
$
1.0

 
$
0.4

 
$
4.0

 
$
0.6

Charges
4.3

 
1.5

 
(0.2
)
 

 

 

 
4.1

 
1.5

Payments and other
(0.2
)
 

 
(1.4
)
 
(0.2
)
 
(0.5
)
 
(0.1
)
 
(2.1
)
 
(0.3
)
Balance at July 1, 2016
$
4.1

 
$
1.5

 
$
1.4

 
$

 
$
0.5

 
$
0.3

 
$
6.0

 
$
1.8


(a)
Employee-related costs primarily consist of termination benefits provided to employees who have been involuntarily terminated.
(b)
Facility exit and other costs primarily consist of lease termination costs.
DEBT (Tables)
Debt
Debt is summarized below:
(In millions)
 
July 1,
2016
 
January 1,
2016
Long-term debt:
 
 
 
 
5.50% Senior notes due 2023
 
$
346.0

 
$
345.8

5.125% Senior notes due 2021
 
395.3

 
394.9

5.625% Senior notes due 2019
 
347.2

 
346.8

Canadian term loan
 
162.1

 
172.9

Revolving lines of credit
 
270.0

 
390.1

Other
 
2.2

 
2.6

Unamortized debt issuance costs
 
(8.4
)
 
(10.2
)
Total long-term debt
 
$
1,514.4

 
$
1,642.9

PENSION PLANS (Tables)
Components of Net Periodic Cost
Components of net periodic pension cost are as follows:
 
 
Three Months Ended
 
 
Domestic
 
Foreign
 
Total
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Service cost
 
$
1.2

 
$
1.7

 
$
1.5

 
$
1.6

 
$
2.7

 
$
3.3

Interest cost
 
2.8

 
4.1

 
2.3

 
2.3

 
5.1

 
6.4

Expected return on plan assets
 
(3.5
)
 
(5.3
)
 
(2.6
)
 
(2.7
)
 
(6.1
)
 
(8.0
)
Net amortization (a)
 
0.5

 
0.5

 
0.7

 
0.8

 
1.2

 
1.3

Settlement charge
 

 

 
9.6

 

 
9.6

 

Net periodic pension cost
 
$
1.0

 
$
1.0

 
$
11.5

 
$
2.0

 
$
12.5

 
$
3.0


(a) Reclassified into operating expenses from AOCI.

 
 
Six Months Ended
 
 
Domestic
 
Foreign
 
Total
(In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Service cost
 
$
2.4

 
$
3.0

 
$
3.0

 
$
3.3

 
$
5.4

 
$
6.3

Interest cost
 
5.7

 
6.7

 
4.4

 
4.6

 
10.1

 
11.3

Expected return on plan assets
 
(7.1
)
 
(8.8
)
 
(5.1
)
 
(5.3
)
 
(12.2
)
 
(14.1
)
Net amortization (a)
 
1.0

 
0.9

 
1.3

 
1.5

 
2.3

 
2.4

Settlement charge
 

 

 
9.6

 

 
9.6

 

Net periodic pension cost
 
$
2.0

 
$
1.8

 
$
13.2

 
$
4.1

 
$
15.2

 
$
5.9

(a) Reclassified into operating expenses from AOCI.
BUSINESS SEGMENTS (Tables)
Segment information for the three and six months ended July 1, 2016 and July 3, 2015 are as follows:
(In millions)
 
 
 
 
 
 
 
 
 
 
Second Quarter of 2016
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,044.7

 
$
555.1

 
$
355.9

 
$

 
$
1,955.7

Operating income
 
64.9

 
23.9

 
12.0

 
(44.1
)
 
56.7

Second Quarter of 2015 (As revised)
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,011.7

 
$
449.5

 
$
19.2

 
$

 
$
1,480.4

Operating income
 
66.6

 
33.6

 
2.4

 
(38.1
)
 
64.5

Six Months of 2016
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,993.8

 
$
1,061.1

 
$
717.0

 
$

 
$
3,771.9

Operating income
 
123.7

 
46.4

 
26.3

 
(79.4
)
 
117.0

Six Months of 2015 (As revised)
 
NSS
 
EES
 
UPS
 
Corporate
 
Total
Net Sales
 
$
1,939.7

 
$
890.3

 
$
35.5

 
$

 
$
2,865.5

Operating income
 
122.3

 
69.4

 
4.4

 
(72.3
)
 
123.8


The following table presents the changes in goodwill allocated to our reporting units during the six months ended July 1, 2016:
 
(In millions)
 
NSS
 
EES
 
UPS
 
Total
Balance as of January 1, 2016
 
$
393.3

 
$
211.9

 
$
151.3

 
$
756.5

Acquisition related (a)
 
(0.5
)
 
(1.4
)
 
1.0

 
(0.9
)
Reassignment of goodwill
 
11.2

 
(31.8
)
 
20.6

 

Foreign currency translation
 
3.2

 
0.6

 
7.6

 
11.4

Balance as of July 1, 2016
 
$
407.2

 
$
179.3

 
$
180.5

 
$
767.0


(a)
In the first and second quarters of 2016, we recorded an immaterial decrease in goodwill primarily related to a preliminary valuation of Power Solutions value of fixed assets.
We evaluate goodwill for impairment annually at the beginning of the third quarter and when events or changes in circumstances indicate the carrying value of these assets might exceed their current fair values. We assess goodwill for impairment by first performing a qualitative assessment, which considers specific factors, based on the weight of evidence, and the significance of all identified events and circumstances in the context of determining whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying amount using the qualitative assessment, we perform the two-step impairment test. From time to time, we may also bypass the qualitative assessment and proceed directly to the two-step impairment test. The first step of the impairment test is to identify a potential impairment by comparing the fair value of a reporting unit with its carrying amount. The estimates of fair value of a reporting unit are determined using the income approach and/or the market approach as described below. If step one of the test indicates a carrying value above the estimated fair value, the second step of the goodwill impairment test is performed by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. The implied residual value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination.
As a result of the reclassification of net sales of various product categories between our segments in 2016, we reassigned the carrying amount of goodwill based on the relative fair value of our reporting units. We then performed the quantitative two-step impairment test of goodwill for all reporting units before and after the change in composition of our segments utilizing a combination of the income and market approaches, both of which are broadly defined below. We concluded that no impairment of goodwill existed and the carrying amount of goodwill to be fully recoverable.
The income approach is a quantitative evaluation to determine the fair value of the reporting unit. Under the income approach we determine the fair value based on estimated future cash flows discounted by an estimated weighted-average cost of capital plus a forecast risk, which reflects the overall level of inherent risk of the reporting unit and the rate of return a market participant would expect to earn. The inputs used for the income approach were significant unobservable inputs, or Level 3 inputs, as described in the accounting fair value hierarchy. Estimated future cash flows were based on our internal projection models, industry projections and other assumptions deemed reasonable by management.
The market approach measures the fair value of a reporting unit through the analysis of recent sales, offerings, and financial multiples (sales or earnings before interest, tax, depreciation and amortization ("EBITDA")) of comparable businesses. Consideration is given to the financial conditions and operating performance of the reporting unit being valued relative to those publicly-traded companies operating in the same or similar lines of business.
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. (Tables)
The following summarizes the financial information for Anixter Inc.:
ANIXTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)
 
July 1,
2016
 
January 1,
2016
Assets:
 
 
 
 
Current assets
 
$
2,719.9

 
$
2,727.2

Property, equipment and capital leases, net
 
149.3

 
141.1

Goodwill
 
767.0

 
756.5

Intangible assets, net
 
437.0

 
453.8

Other assets
 
72.9

 
72.1

 
 
$
4,146.1

 
$
4,150.7

Liabilities and Stockholder’s Equity:
 
 
 
 
Current liabilities
 
$
1,219.9

 
$
1,156.8

Long-term debt
 
1,526.4

 
1,655.6

Other liabilities
 
153.5

 
161.1

Stockholder’s equity
 
1,246.3

 
1,177.2

 
 
$
4,146.1

 
$
4,150.7

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
 
 
Three Months Ended
 
Six Months Ended
 (In millions)
 
July 1,
2016
 
July 3,
2015
 
July 1,
2016
 
July 3,
2015
Net sales
 
$
1,955.7

 
$
1,480.4

 
$
3,771.9

 
$
2,865.5

Operating income
 
$
58.2

 
$
65.9

 
$
120.1

 
$
126.7

Income from continuing operations before income taxes
 
$
37.4

 
$
49.3

 
$
76.1

 
$
91.7

Net (loss) income from discontinued operations
 
$
(0.3
)
 
$
41.9

 
$
(0.7
)
 
$
34.5

Net income
 
$
21.2

 
$
72.2

 
$
44.8

 
$
92.2

Comprehensive income
 
$
23.0

 
$
78.8

 
$
65.9

 
$
58.6

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Venezuela bolivar [Member]
Jan. 1, 2016
Venezuela bolivar [Member]
Jul. 3, 2015
Venezuela bolivar [Member]
Jan. 2, 2015
Venezuela bolivar [Member]
Jul. 1, 2016
Gross [Member]
Jan. 1, 2016
Gross [Member]
Jul. 1, 2016
Net [Member]
Jan. 1, 2016
Net [Member]
Summary Of Significant Accounting Policies [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange
$ (1.4)
$ (2.4)
$ (4.5)
$ (6.0)
 
 
 
 
 
 
 
 
Foreign Currency Exchange Rate, Translation
 
 
 
 
625 
200 
200 
52.0 
 
 
 
 
Foreign exchange devaluations
(0.7)
 
 
 
 
 
 
 
 
Rate of foreign currency denominated accounts not hedged
 
 
100.00% 
 
 
 
 
 
 
 
 
 
Derivative, Notional Amount
 
 
 
 
 
 
 
 
139.0 
196.1 
104.4 
132.8 
Cash surrender value of life insurance policies
0.6 
(0.6)
1.2 
 
 
 
 
 
 
 
 
Other
(0.5)
(0.3)
(0.8)
 
 
 
 
 
 
 
 
Other, net
$ (0.8)
$ (3.5)
$ (3.6)
$ (7.5)
 
 
 
 
 
 
 
 
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Components of Other Net Reflected in Consolidated Statements of Operations (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Other, net:
 
 
 
 
Foreign exchange
$ (1.4)
$ (2.4)
$ (4.5)
$ (6.0)
Foreign exchange devaluations
(0.7)
Cash surrender value of life insurance policies
0.6 
(0.6)
1.2 
Other
(0.5)
(0.3)
(0.8)
Total other, net
$ (0.8)
$ (3.5)
$ (3.6)
$ (7.5)
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 12 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Jan. 1, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
Consideration for discontinued operations
 
 
 
 
$ 380.0 
Proceeds from sale of business
 
 
358.0 
371.8 
Transaction related costs
16.4 
 
16.4 
 
 
Loss (Gain) on sale of business, net of tax expense of $10.0 in 2015
 
 
49.3 
 
Gain on sale of discontinued operations, net of tax
 
 
23.3 
 
 
Discontinued operations allocated interest costs
0.6 
 
 
 
Fastener Business [Member]
 
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
 
Loss (Gain) on sale of business, net of tax expense of $10.0 in 2015
 
 
$ 40.3 
 
 
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Results from Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
$ 1,955.7 
$ 1,480.4 
$ 3,771.9 
$ 2,865.5 
Operating income
56.7 
64.5 
117.0 
123.8 
(Loss) income from discontinued operations before income taxes
(0.5)
46.5 
(1.2)
57.7 
Income tax (benefit) expense from discontinued operations
(0.2)
4.6 
(0.5)
23.2 
Net loss from discontinued operations
(0.3)
41.9 
(0.7)
34.5 
Fastener Business [Member]
 
 
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
 
 
Net sales
1.3 
148.4 
1.8 
397.8 
Operating income
5.2 
17.1 
Net loss from discontinued operations
$ (0.3)
$ 41.9 
$ (0.7)
$ 34.5 
DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS - Assets and Liabilities from Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2016
Jan. 1, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Accounts receivable
$ 1,350.5 
$ 1,326.4 
Inventories
1,186.5 
1,182.6 
Total assets
4,138.6 
4,142.0 
Accounts payable
1,001.8 
905.6 
Accrued expenses
217.2 
250.6 
Other liabilities
155.4 
163.5 
Total liabilities
2,888.8 
2,962.6 
Fastener Business [Member]
 
 
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
 
 
Accounts receivable
0.9 
2.6 
Inventories
0.1 
1.2 
Total assets
1.0 
3.8 
Accounts payable
1.2 
1.3 
Accrued expenses
4.1 
4.0 
Other liabilities
0.6 
1.7 
Total liabilities
$ 5.9 
$ 7.0 
BUSINESS COMBINATION - Additional information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Electrical and Electronic Solutions [Member]
Jul. 3, 2015
Electrical and Electronic Solutions [Member]
Jul. 1, 2016
Electrical and Electronic Solutions [Member]
Jul. 3, 2015
Electrical and Electronic Solutions [Member]
Jul. 1, 2016
Utility Power Solutions [Member]
Jul. 3, 2015
Utility Power Solutions [Member]
Jul. 1, 2016
Utility Power Solutions [Member]
Jul. 3, 2015
Utility Power Solutions [Member]
Jul. 1, 2016
Power Solutions [Member]
Jan. 1, 2016
Power Solutions [Member]
Jan. 1, 2016
Power Solutions [Member]
Electrical and Electronic Solutions [Member]
Jan. 1, 2016
Power Solutions [Member]
Utility Power Solutions [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total purchase price, net of cash acquired and working capital adjustment
 
 
$ 4.7 
 
 
 
 
 
 
 
 
 
 
$ 829.4 
 
 
Cash Acquired from Acquisition
 
 
 
2.2 
 
 
 
 
 
 
 
 
 
11.7 
 
 
Net working capital adjustment
 
 
 
 
 
 
 
 
 
 
 
 
 
(3.8)
 
 
Goodwill
 
 
 
 
 
 
 
 
 
 
 
 
 
189.4 
34.0 
155.4 
Goodwill expected to be tax deductible
 
 
 
 
 
 
 
 
 
 
 
 
 
78.8 
 
 
Net sales
1,955.7 
1,480.4 
3,771.9 
2,865.5 
555.1 
449.5 
1,061.1 
890.3 
355.9 
19.2 
717.0 
35.5 
510.6 
 
 
 
Operating income
$ 56.7 
$ 64.5 
$ 117.0 
$ 123.8 
$ 23.9 
$ 33.6 
$ 46.4 
$ 69.4 
$ 12.0 
$ 2.4 
$ 26.3 
$ 4.4 
$ 12.7 
 
 
 
BUSINESS COMBINATION BUSINESS COMBINATION - Purchase Price Allocation - Power Solutions (Details) (Power Solutions [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2016
Power Solutions [Member]
 
Business Acquisition [Line Items]
 
Cash
$ 11.7 
Current assets, net
565.6 
Property, plant, and equipment
30.8 
Goodwill
189.4 
Intangible assets
280.8 
Non-current assets
5.4 
Current liabilities
(234.1)
Non-current liabilities
(8.5)
Total purchase price
$ 841.1 
BUSINESS COMBINATION BUSINESS COMBINATION - Intangible Assets Acquired - Power Solutions (Details) (Power Solutions [Member], USD $)
In Millions, unless otherwise specified
12 Months Ended
Jan. 1, 2016
Business Acquisition [Line Items]
 
Intangible assets fair value
$ 280.8 
Customer Relationships [Member]
 
Business Acquisition [Line Items]
 
Intangible assets fair value
278.4 
Non-compete Agreements [Member]
 
Business Acquisition [Line Items]
 
Intangible assets fair value
$ 2.4 
Minimum [Member] |
Customer Relationships [Member]
 
Business Acquisition [Line Items]
 
Average useful life (in years)
14 years 0 months 
Maximum [Member] |
Customer Relationships [Member]
 
Business Acquisition [Line Items]
 
Average useful life (in years)
18 years 0 months 
Maximum [Member] |
Non-compete Agreements [Member]
 
Business Acquisition [Line Items]
 
Average useful life (in years)
1 year 
BUSINESS COMBINATION - Pro Forma (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 3, 2015
Jul. 3, 2015
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items]
 
 
Net sales
$ 2,007.2 
$ 3,874.9 
Net income from continuing operations
$ 34.5 
$ 64.1 
Income per share from continuing operations
 
 
Basic
$ 1.04 
$ 1.93 
Diluted
$ 1.03 
$ 1.92 
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES - Summary of Liabilities Associated with Restructuring and Employee Severance (Details) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jul. 1, 2016
Employee Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve, Beginning balance
$ 4.0 
Payments and other
(2.1)
Restructuring Reserve, Ending balance
6.0 
Facility Exit and Other Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve, Beginning balance
0.6 
Payments and other
(0.3)
Restructuring Reserve, Ending balance
1.8 
Q2 2016 Restructuring Plan [Member] |
Employee Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Charges
4.3 
Restructuring Reserve, Beginning balance
Payments and other
(0.2)
Restructuring Reserve, Ending balance
4.1 
Q2 2016 Restructuring Plan [Member] |
Facility Exit and Other Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Charges
1.5 
Restructuring Reserve, Beginning balance
Payments and other
Restructuring Reserve, Ending balance
1.5 
Q4 2015 Restructuring Plan [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve, Ending balance
1.4 
Q4 2015 Restructuring Plan [Member] |
Employee Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Charges
(0.2)
Restructuring Reserve, Beginning balance
3.0 
Payments and other
(1.4)
Restructuring Reserve, Ending balance
1.4 
Q4 2015 Restructuring Plan [Member] |
Facility Exit and Other Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Charges
Restructuring Reserve, Beginning balance
0.2 
Payments and other
(0.2)
Restructuring Reserve, Ending balance
Q2 2015 Restructuring Plan [Member] |
Employee Related Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Charges
Restructuring Reserve, Beginning balance
1.0 
Payments and other
(0.5)
Restructuring Reserve, Ending balance
0.5 
Q4 2012 Restructuring Plan [Member] |
Facility Exit and Other Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Charges
Restructuring Reserve, Beginning balance
0.4 
Payments and other
(0.1)
Restructuring Reserve, Ending balance
$ 0.3 
RESTRUCTURING AND OTHER CHARGES RESTRUCTURING AND OTHER CHARGES - Additional Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 3 Months Ended 6 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended 3 Months Ended
Jul. 1, 2016
Employee Related Costs [Member]
Jan. 1, 2016
Employee Related Costs [Member]
Jul. 1, 2016
Facility Exit and Other Costs [Member]
Jan. 1, 2016
Facility Exit and Other Costs [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Jul. 1, 2016
Q4 2015 Restructuring Plan [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Operating Expense [Member]
Jul. 1, 2016
Q4 2015 Restructuring Plan [Member]
Employee Related Costs [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Employee Related Costs [Member]
Jul. 1, 2016
Q4 2015 Restructuring Plan [Member]
Facility Exit and Other Costs [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Facility Exit and Other Costs [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Network and Security Solutions [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Electrical and Electronic Solutions [Member]
Jan. 1, 2016
Q4 2015 Restructuring Plan [Member]
Utility Power Solutions [Member]
Jul. 3, 2015
Q2 2015 Restructuring Plan [Member]
Jul. 3, 2015
Q2 2015 Restructuring Plan [Member]
Operating Expense [Member]
Jul. 1, 2016
Q2 2015 Restructuring Plan [Member]
Employee Related Costs [Member]
Jan. 1, 2016
Q2 2015 Restructuring Plan [Member]
Employee Related Costs [Member]
Jul. 3, 2015
Q2 2015 Restructuring Plan [Member]
Network and Security Solutions [Member]
Jan. 1, 2016
Q2 2015 Restructuring Plan [Member]
Electrical and Electronic Solutions [Member]
Jul. 3, 2015
Q2 2015 Restructuring Plan [Member]
Electrical and Electronic Solutions [Member]
Jul. 3, 2015
Q2 2015 Restructuring Plan [Member]
Corporate Segment [Member]
Dec. 28, 2012
Q4 2012 Restructuring Plan [Member]
Dec. 28, 2012
Q4 2012 Restructuring Plan [Member]
Operating Expense [Member]
Jul. 1, 2016
Q4 2012 Restructuring Plan [Member]
Facility Exit and Other Costs [Member]
Jan. 1, 2016
Q4 2012 Restructuring Plan [Member]
Facility Exit and Other Costs [Member]
Dec. 28, 2012
Q4 2012 Restructuring Plan [Member]
Network and Security Solutions [Member]
Dec. 28, 2012
Q4 2012 Restructuring Plan [Member]
Electrical and Electronic Solutions [Member]
Restructuring Cost and Reserve [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restructuring Charges
 
 
 
 
 
 
$ 3.4 
$ (0.2)
 
$ 0 
 
$ 1.0 
$ 2.3 
$ 0.1 
 
$ 5.3 
$ 0 
 
$ 3.0 
 
$ 2.2 
$ 0.1 
 
$ 6.9 
$ 0 
 
$ 4.1 
$ 2.8 
Number of Positions Eliminated
 
 
 
 
80 
 
 
 
 
 
 
 
 
 
100 
 
 
 
 
 
 
 
200 
 
 
 
 
 
Restructuring charge adjustment
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0.5 
 
 
 
 
 
 
 
 
Restructuring Reserve
$ 6.0 
$ 4.0 
$ 1.8 
$ 0.6 
 
$ 1.4 
 
$ 1.4 
$ 3.0 
$ 0 
$ 0.2 
 
 
 
 
 
$ 0.5 
$ 1.0 
 
 
 
 
 
 
$ 0.3 
$ 0.4 
 
 
DEBT (Detail) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2016
Jan. 1, 2016
Debt Instrument [Line Items]
 
 
Long-term debt
$ 1,514.4 
$ 1,642.9 
Unamortized debt issuance costs
(8.4)
(10.2)
Senior notes due 2023 [Domain]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
346.0 
345.8 
Senior notes due 2021 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
395.3 
394.9 
Senior notes due 2019 [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
347.2 
346.8 
Canadian term loan [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
162.1 
172.9 
Revolving Lines of Credit [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
270.0 
390.1 
Other [Member]
 
 
Debt Instrument [Line Items]
 
 
Long-term debt
$ 2.2 
$ 2.6 
DEBT- Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Jul. 1, 2016
Jan. 1, 2016
Apr. 3, 2015
Senior notes due 2015 [Member]
Line Of Credit Facility Covenant Compliance [Line Items]
 
 
 
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate
 
 
5.95% 
Repayments of Long-term Debt
 
 
$ 200.0 
Long-term debt
1,514.4 
1,642.9 
 
Long-term Debt Fair Value
$ 1,552.8 
$ 1,669.5 
 
INCOME TAXES - Additional Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Schedule Of Income Taxes [Line Items]
 
 
 
 
Effective Income Tax Rate Reconciliation, Percent
42.40% 
38.80% 
40.10% 
37.30% 
Taxes Resulting From Repatriation of Foreign Earnings
$ 4.9 
 
$ 10.3 
 
PENSION PLANS - Components of Net Periodic Cost (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Components of net periodic cost:
 
 
 
 
Net periodic cost
 
 
$ 15.2 
$ 5.9 
Pension Plans, Domestic [Member]
 
 
 
 
Components of net periodic cost:
 
 
 
 
Service cost
1.2 
1.7 
2.4 
3.0 
Interest cost
2.8 
4.1 
5.7 
6.7 
Expected return on plan assets
(3.5)
(5.3)
(7.1)
(8.8)
Net amortization
0.5 
0.5 
1.0 
0.9 
Settlement charge
Net periodic cost
1.0 
1.0 
2.0 
1.8 
Pension Plans, Foreign [Member]
 
 
 
 
Components of net periodic cost:
 
 
 
 
Service cost
1.5 
1.6 
3.0 
3.3 
Interest cost
2.3 
2.3 
4.4 
4.6 
Expected return on plan assets
(2.6)
(2.7)
(5.1)
(5.3)
Net amortization
0.7 
0.8 
1.3 
1.5 
Settlement charge
9.6 
9.6 
Net periodic cost
11.5 
2.0 
13.2 
4.1 
Continuing Operations [Member]
 
 
 
 
Components of net periodic cost:
 
 
 
 
Service cost
2.7 
3.3 
5.4 
6.3 
Interest cost
5.1 
6.4 
10.1 
11.3 
Expected return on plan assets
(6.1)
(8.0)
(12.2)
(14.1)
Net amortization
1.2 
1.3 
2.3 
2.4 
Settlement charge
9.6 
9.6 
Net periodic cost
$ 12.5 
$ 3.0 
$ 15.2 
$ 5.9 
PENSION PLANS PENSION PLANS - Additional Information (Details) (Details)
In Millions, unless otherwise specified
Jul. 1, 2016
USD ($)
Jul. 1, 2016
GBP (£)
Disclosure Pension Plans Post Retirement Benefits And Other Benefits Additional Information [Abstract]
 
 
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Minimum Pension Liability, before Tax
$ 9.6 
£ 6.9 
STOCKHOLDERS' EQUITY - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 1, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Number of shares available for grant
1,200,000 
1,200,000 
Restricted Stock Units (RSUs) [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share based compensation arrangement by share based payment award, award vesting period
 
4 years 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted
10,026 
405,628 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Fair Value
$ 0.6 
$ 17.8 
Restricted Stock Units (RSUs) [Member] |
Maximum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share based compensation arrangement by share based payment award, award vesting period
 
6 years 
Restricted Stock Units (RSUs) [Member] |
Minimum [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share based compensation arrangement by share based payment award, award vesting period
 
3 years 
Performance Restricted Stock Units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted
85,839 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Fair Value
1.8 
Employee stock option [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share based compensation arrangement by share based payment award, award vesting period
 
4 years 
Director stock units [Member]
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted
12,999 
23,167 
Share Based Compensation Arrangement By Share Based Payment Award Equity Instruments Other Than Options Grants In Period Aggregate Fair Value
$ 0.7 
$ 1.2 
BUSINESS SEGMENTS - Segment Information (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
$ 1,955.7 
$ 1,480.4 
$ 3,771.9 
$ 2,865.5 
Operating income
56.7 
64.5 
117.0 
123.8 
Network and Security Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
1,044.7 
1,011.7 
1,993.8 
1,939.7 
Operating income
64.9 
66.6 
123.7 
122.3 
Electrical and Electronic Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
555.1 
449.5 
1,061.1 
890.3 
Operating income
23.9 
33.6 
46.4 
69.4 
Utility Power Solutions [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
355.9 
19.2 
717.0 
35.5 
Operating income
12.0 
2.4 
26.3 
4.4 
Corporate [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
Operating income
(44.1)
(38.1)
(79.4)
(72.3)
Continuing Operations [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Net sales
1,955.7 
1,480.4 
3,771.9 
2,865.5 
Operating income
$ 56.7 
$ 64.5 
$ 117.0 
$ 123.8 
BUSINESS SEGMENTS - Changes in Goodwill (Detail) (USD $)
In Millions, unless otherwise specified
6 Months Ended
Jul. 1, 2016
Goodwill [Roll Forward]
 
Goodwill, Beginning Balance
$ 756.5 
Goodwill, Purchase Accounting Adjustments
(0.9)
Foreign currency translation
11.4 
Goodwill, Ending Balance
767.0 
Network and Security Solutions [Member]
 
Goodwill [Roll Forward]
 
Goodwill, Beginning Balance
393.3 
Goodwill, Purchase Accounting Adjustments
(0.5)
Foreign currency translation
3.2 
Goodwill, Ending Balance
407.2 
Electrical and Electronic Solutions [Member]
 
Goodwill [Roll Forward]
 
Goodwill, Beginning Balance
211.9 
Goodwill, Purchase Accounting Adjustments
(1.4)
Foreign currency translation
0.6 
Goodwill, Ending Balance
179.3 
Utility Power Solutions [Member]
 
Goodwill [Roll Forward]
 
Goodwill, Beginning Balance
151.3 
Goodwill, Purchase Accounting Adjustments
1.0 
Foreign currency translation
7.6 
Goodwill, Ending Balance
$ 180.5 
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - Additional Information (Detail)
Description of guarantees given by parent company
Anixter International Inc. guarantees, fully and unconditionally, substantially all of the debt of our subsidiaries, which include Anixter Inc., our 100% owned primary operating subsidiary. We have no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc.:
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED BALANCE SHEETS (Detail) (USD $)
In Millions, unless otherwise specified
Jul. 1, 2016
Jan. 1, 2016
Assets:
 
 
Current assets
$ 2,721.1 
$ 2,727.8 
Property, equipment and capital leases, net
140.6 
131.8 
Goodwill
767.0 
756.5 
Intangible assets, net
437.0 
453.8 
Other assets
72.9 
72.1 
Total assets
4,138.6 
4,142.0 
Liabilities and Stockholder's Equity:
 
 
Current liabilities
1,219.0 
1,156.2 
Other liabilities
155.4 
163.5 
Stockholder's equity
1,249.8 
1,179.4 
Total liabilities and stockholders’ equity
4,138.6 
4,142.0 
Anixter Inc. [Member]
 
 
Assets:
 
 
Current assets
2,719.9 
2,727.2 
Property, equipment and capital leases, net
149.3 
141.1 
Goodwill
767.0 
756.5 
Intangible assets, net
437.0 
453.8 
Other assets
72.9 
72.1 
Total assets
4,146.1 
4,150.7 
Liabilities and Stockholder's Equity:
 
 
Current liabilities
1,219.9 
1,156.8 
Long-term debt
1,526.4 
1,655.6 
Other liabilities
153.5 
161.1 
Stockholder's equity
1,246.3 
1,177.2 
Total liabilities and stockholders’ equity
$ 4,146.1 
$ 4,150.7 
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) (USD $)
In Millions, unless otherwise specified
3 Months Ended 6 Months Ended
Jul. 1, 2016
Jul. 3, 2015
Jul. 1, 2016
Jul. 3, 2015
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net sales
$ 1,955.7 
$ 1,480.4 
$ 3,771.9 
$ 2,865.5 
Operating income
56.7 
64.5 
117.0 
123.8 
Income from continuing operations before income taxes
36.1 
48.3 
73.5 
89.4 
Net loss from discontinued operations
(0.3)
41.9 
(0.7)
34.5 
Net income
20.5 
71.4 
43.3 
90.5 
Comprehensive income (loss)
22.3 
78.0 
64.4 
56.9 
Anixter Inc. [Member]
 
 
 
 
Condensed Financial Statements, Captions [Line Items]
 
 
 
 
Net sales
1,955.7 
1,480.4 
3,771.9 
2,865.5 
Operating income
58.2 
65.9 
120.1 
126.7 
Income from continuing operations before income taxes
37.4 
49.3 
76.1 
91.7 
Net loss from discontinued operations
(0.3)
41.9 
(0.7)
34.5 
Net income
21.2 
72.2 
44.8 
92.2 
Comprehensive income (loss)
$ 23.0 
$ 78.8 
$ 65.9 
$ 58.6