ANIXTER INTERNATIONAL INC, 10-Q filed on 4/28/2020
Quarterly Report
v3.20.1
Cover page - shares
3 Months Ended
Apr. 03, 2020
Apr. 20, 2020
Cover page [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Apr. 03, 2020  
Document Transition Report false  
Entity File Number 001-10212  
Entity Registrant Name ANIXTER INTERNATIONAL INC.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 94-1658138  
Entity Address, Address Line One 2301 Patriot Blvd.  
Entity Address, City or Town Glenview  
Entity Address, State or Province IL  
Entity Address, Postal Zip Code 60026  
City Area Code 224  
Local Phone Number 521-8000  
Title of 12(b) Security Common stock, $1 par value  
Trading Symbol AXE  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   34,001,490
Amendment Flag false  
Document Fiscal Year Focus 2020  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0000052795  
Current Fiscal Year End Date --01-01  
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($)
shares in Millions, $ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Net sales $ 2,071.7 $ 2,108.5
Cost of goods sold 1,655.3 1,689.6
Gross profit 416.4 418.9
Operating expenses 345.0 344.3
Operating income 71.4 74.6
Other expense:    
Interest expense (16.8) (20.4)
Other, net (6.6) 1.8
Income before income taxes 48.0 56.0
Income tax expense 12.3 16.9
Net Income $ 35.7 $ 39.1
Income per share:    
Basic $ 1.04 $ 1.15
Diluted $ 1.03 $ 1.14
Basic weighted-average common shares outstanding 34.3 33.9
Effect of dilutive securities:    
Stock options and units 0.3 0.3
Diluted weighted-average common shares outstanding 34.6 34.2
Foreign currency translation $ (65.5) $ 6.9
Changes in unrealized pension cost, net of tax (1.1) (0.2)
Other comprehensive income (loss) (64.4) 7.1
Comprehensive (loss) income $ (28.7) $ 46.2
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Apr. 03, 2020
Jan. 03, 2020
Current assets:    
Cash and cash equivalents $ 282.0 $ 79.6
Accounts receivable, net 1,533.0 1,540.3
Inventories 1,365.2 1,354.7
Other current assets 52.3 63.3
Total current assets 3,232.5 3,037.9
Property and equipment, at cost 436.5 432.3
Accumulated depreciation (261.7) (257.4)
Property and equipment, net 174.8 174.9
Operating leases 263.5 273.3
Goodwill 810.0 828.7
Intangible assets, net 342.9 361.2
Other assets 126.8 132.9
Total assets 4,950.5 4,808.9
Current liabilities:    
Accounts payable 1,104.8 1,100.3
Accrued expenses 253.0 330.3
Current operating lease obligations 63.1 62.9
Total current liabilities 1,420.9 1,493.5
Long-term debt 1,316.8 1,059.7
Operating lease obligations 209.2 219.1
Other liabilities 170.3 175.7
Total liabilities 3,117.2 2,948.0
Stockholders’ equity:    
Common Stock 34.4 34.2
Capital surplus 311.1 310.2
Retained earnings 1,819.5 1,783.8
Accumulated other comprehensive loss:    
Foreign currency translation (211.0) (145.5)
Unrecognized pension liability, net (120.7) (121.8)
Total accumulated other comprehensive loss (331.7) (267.3)
Total stockholders’ equity 1,833.3 1,860.9
Total liabilities and stockholders’ equity $ 4,950.5 $ 4,808.9
v3.20.1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Apr. 03, 2020
Jan. 03, 2020
Common stock, par value $ 1.00 $ 1.00
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 34,385,716 34,214,795
Common stock, shares outstanding 34,385,716 34,214,795
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Operating activities:    
Net income $ 35.7 $ 39.1
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation 8.5 9.3
Amortization of intangible assets 8.6 8.8
Stock-based compensation 4.6 4.1
Deferred income taxes 0.5 0.1
Pension plan contributions (2.5) (2.1)
Pension plan expenses 1.3 1.4
Changes in current assets and liabilities, net (115.1) (175.8)
Other, net 7.5 0.9
Net cash used in operating activities (50.9) (114.2)
Investing activities:    
Capital expenditures, net (6.9) (5.9)
Net cash used in investing activities (6.9) (5.9)
Financing activities:    
Proceeds from borrowings 648.7 1,241.5
Repayments of borrowings (393.6) (1,127.4)
Proceeds from stock options exercised 0.0 1.0
Other, net (0.6) (0.2)
Net cash provided by financing activities 254.5 114.9
Increase (decrease) in cash and cash equivalents 196.7 (5.2)
Effect of exchange rate changes on cash balances 5.7 1.2
Cash and cash equivalents at beginning of period 79.6 81.0
Cash and cash equivalents at end of period $ 282.0 $ 77.0
v3.20.1
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Common Stock [Member]
Capital Surplus [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Loss [Member]
Common stock, shares issued at Dec. 28, 2018   33,900,000      
Stockholders' equity at Dec. 28, 2018 $ 1,570.4 $ 33.9 $ 292.7 $ 1,513.2 $ (269.4)
Net income 39.1     39.1  
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]          
Foreign currency translation 6.9       6.9
Changes in unrealized pension cost, net of tax 0.2       0.2
Reclassification of tax effects [1]       7.7 (7.7)
Stock-based compensation 4.1   4.1    
Issuance of common stock and related taxes, shares   200,000      
Issuance of common stock and related taxes 0.0 $ 0.2 (0.2)    
Common stock, shares issued at Mar. 29, 2019   34,100,000      
Stockholders' equity at Mar. 29, 2019 $ 1,620.7 $ 34.1 296.6 1,560.0 (270.0)
Common stock, shares issued at Jan. 03, 2020 34,214,795 34,200,000      
Stockholders' equity at Jan. 03, 2020 $ 1,860.9 $ 34.2 310.2 1,783.8 (267.3)
Net income 35.7     35.7  
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract]          
Foreign currency translation (65.5)       (65.5)
Changes in unrealized pension cost, net of tax 1.1       1.1
Stock-based compensation 4.6   4.6    
Issuance of common stock and related taxes, shares   200,000      
Issuance of common stock and related taxes $ (3.5) $ 0.2 (3.7)    
Common stock, shares issued at Apr. 03, 2020 34,385,716 34,400,000      
Stockholders' equity at Apr. 03, 2020 $ 1,833.3 $ 34.4 $ 311.1 $ 1,819.5 $ (331.7)
[1] The Company reclassified $7.7 million of tax benefits from "Accumulated other comprehensive loss" to "Retained earnings" for the tax effects resulting from the December 22, 2017 enactment of the Tax Cuts and Jobs Act in accordance with the adoption of Accounting Standards Update 2018-02, "Income Statement - Reporting Comprehensive Income: Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" in the first quarter of 2019.
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3 Months Ended
Apr. 03, 2020
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
NOTE 1.  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 ("U.S. GAAP") have been condensed or omitted. Certain prior period amounts have been reclassified to conform to the current year presentation.
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 3, 2020 ("2019 Form 10-K"). The condensed consolidated financial information furnished herein reflects all normal recurring adjustments, 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 typically spanning thirteen weeks. The first quarter ends on the Friday of the first thirteen-week period, the second and third quarters are thirteen weeks in duration and the fourth quarter is the remainder of the year. The first quarter of fiscal year 2020 ended on April 3, 2020, and the first quarter of fiscal year 2019 ended on March 29, 2019.
Recently issued and adopted accounting pronouncements: In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 Anixter's 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. The Company adopted this standard effective the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. See the section below titled "Receivables and expected credit losses" for more information on the Company's measurement of credit losses.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes step two from the goodwill impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. The new guidance requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The standard is effective for Anixter's financial statements issued for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this standard effective the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Changes to the Disclosure Requirements for Fair Value Measurement, which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures. The standard is effective for Anixter's financial statements issued for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted this standard effective the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company's related disclosures.
Recently issued accounting pronouncements not yet adopted: In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The standard is effective for Anixter's financial statements issued for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures.
In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes, which clarifies existing guidance and removes certain exceptions to the general principles for income taxes. The standard is effective for Anixter's financial statements issued for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its Condensed Consolidated Financial Statements.
The Company does not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on its Condensed Consolidated Financial Statements or disclosures.
Receivables and expected credit losses: The Company carries its accounts receivable at their face amounts less an allowance for expected credit losses, which was $29.7 million and $30.4 million as of April 3, 2020 and January 3, 2020, respectively. Changes in the allowance were not material for the three months ended April 3, 2020. On a regular basis, Anixter evaluates its accounts receivable and establishes the allowance for expected credit losses based on a combination of specific customer circumstances, as well as history of write-offs and collections, current credit conditions and economic forecasts. A receivable is considered past due if payments have not been received within the agreed upon invoice terms. Receivables are written off and deducted from the allowance account when the receivables are deemed uncollectible.
Revenue recognition: Anixter is a leading global distributor of network and security solutions, electrical and electronic solutions and utility power solutions. Through a global distribution network along with supply chain and technical expertise, Anixter helps customers reduce the risk, cost and complexity of their supply chains. Anixter is a leader in providing advanced inventory management services including procurement, just-in-time delivery, material management programs, turn-key yard layout and management, quality assurance testing, component kit production, storm/event kitting, small component assembly and e-commerce and electronic data interchange to a broad spectrum of customers with nearly 600,000 products. Revenue arrangements primarily consist of a single performance obligation to transfer promised goods or services. See Note 7. "Business Segments" for revenue disaggregated by geography.
Sales to customers and related cost of sales are primarily recognized at the point in time when control of goods transfers to the customer. For product sales, this generally occurs upon shipment of the products, however, this may occur at a later date depending on the agreed upon sales terms, such as delivery at the customer's designated location, or based on consignment terms. In instances where goods are not stocked by Anixter and delivery times are critical, product is purchased from the manufacturer and drop-shipped to the customer. Anixter generally takes control of the goods when shipped by the manufacturer and then recognizes revenue when control of the product transfers to the customer. When providing services, sales are recognized over time as control transfers to the customer, which occurs as services are rendered.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company estimates different forms of variable consideration at the time of sale based on historical experience, current conditions and contractual obligations. Revenue is recorded net of customer discounts, rebates and similar charges. When Anixter offers the right to return product, historical experience is utilized to establish a liability for the estimate of expected returns. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. The Company has elected to treat shipping and handling as a fulfillment activity. The practical expedient not to disclose information about remaining performance obligations has also been elected as these contracts have an original duration of one year or less or are contracts where the Company has applied the practical expedient to recognize service revenue in proportion to the amount Anixter has the right to invoice. The Company typically receives payment 30 to 60 days from the point it has satisfied the related performance obligation.
At January 3, 2020, $11.6 million of deferred revenue related to outstanding contracts was reported in "Accrued expenses" in the Company's Condensed Consolidated Balance Sheet. This balance primarily represents prepayments from customers. During the three months ended April 3, 2020, $4.1 million of this deferred revenue was recognized. At April 3, 2020, deferred revenue was $12.1 million. The Company expects to recognize this balance as revenue within the next twelve months.
Other, net: The following represents the components of "Other, net" as reflected in the Condensed Consolidated Statements of Comprehensive (Loss) Income:
Three Months Ended
(In millions)April 3,
2020
March 29,
2019
Other, net:
Foreign exchange loss$(4.5) $(0.5) 
Cash surrender value of life insurance policies(3.0) 1.7  
Net periodic pension benefit1.0  0.8  
Other(0.1) (0.2) 
Total other, net$(6.6) $1.8  
Certain subsidiaries of Anixter 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 (Loss) Income.
The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company's strategy is to negotiate terms for its derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). Its counterparties to foreign currency forward contracts have investment-grade credit ratings. Anixter expects the creditworthiness of its counterparties to remain intact through the term of the transactions. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist which could affect the value of the derivatives.
The Company does not hedge 100% of its foreign currency-denominated accounts. 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 April 3, 2020 and January 3, 2020, 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 (Loss) Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At April 3, 2020 and January 3, 2020, the gross notional amount of the foreign currency forward contracts outstanding was approximately $124.1 million and $130.2 million, respectively. At April 3, 2020 and January 3, 2020, the net notional amount of the foreign currency forward contracts outstanding was approximately $124.1 million and $95.4 million, respectively. While all of the Company's foreign currency forward contracts are subject to master netting arrangements with its counterparties, assets and liabilities related to these contracts are presented on a gross basis within the Condensed Consolidated Balance Sheets. The gross fair value of assets and liabilities related to foreign currency forward contracts are immaterial.
The combined effect of changes in both the equity and bond markets resulted in changes in the cash surrender value of the Company's company owned life insurance policies associated with the sponsored deferred compensation program.
Accumulated other comprehensive loss: Unrealized gains and losses are accumulated in "Accumulated other comprehensive loss" ("AOCI"). These changes are also reported in "Other comprehensive (loss) income" on the Condensed Consolidated Statements of Comprehensive (Loss) Income. These include unrealized gains and losses related to the Company's defined benefit obligations and foreign currency translation. See Note 5. "Pension Plans" for pension related amounts reclassified into net income.
Investments in several subsidiaries are recorded in currencies other than the U.S. dollar ("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. 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 Anixter's subsidiaries maintain investments denominated in currencies other than local currencies, exchange rate fluctuations will occur. Borrowings are raised in certain foreign currencies to minimize the exchange rate translation adjustment risk.
Supplemental cash flow information: The following information discloses supplemental cash flow information about leasing activities.
During the three months ended April 3, 2020 and March 29, 2019, leased assets obtained in exchange for operating lease obligations were $10.5 million and $258.3 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $14.6 million in the first quarter of 2020 compared to $19.4 million in the prior year period.
v3.20.1
DEBT
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
DEBT DEBT
Debt is summarized below:
(In millions)April 3,
2020
January 3,
2020
Long-term debt:
6.00% Senior notes due 2025$247.4  $247.3  
5.50% Senior notes due 2023348.1  347.9  
5.125% Senior notes due 2021398.5  398.3  
Revolving lines of credit310.0  56.0  
Finance lease obligations7.9  6.0  
Other9.1  8.8  
Unamortized deferred financing costs(4.2) (4.6) 
Total long-term debt$1,316.8  $1,059.7  
Fair Value of Debt
The fair value of Anixter's debt instruments is measured using observable market information which would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements. The Company's fixed-rate debt consists of Senior notes due 2025, Senior notes due 2023 and Senior notes due 2021.
 
At April 3, 2020, the Company's total carrying value and estimated fair value of debt outstanding was $1,316.8 million and $1,317.8 million, respectively. This compares to a carrying value and estimated fair value of debt outstanding at January 3, 2020 of $1,059.7 million and $1,122.1 million, respectively. The increase in the carrying value and estimated fair value is primarily due to higher outstanding borrowings under Anixter's revolving lines of credit.
v3.20.1
LEGAL CONTINGENCIES
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
LEGAL CONTINGENCIES LEGAL CONTINGENCIES From time to time, Anixter is party to legal proceedings and matters that arise in the ordinary course of business. As of April 3, 2020, the Company does not believe there is a reasonable possibility that any material loss exceeding the amounts already recognized for these proceedings and matters has been incurred. However, the ultimate resolutions of these proceedings and matters are inherently unpredictable. As such, the Company's financial condition and results of operations could be adversely affected in any particular period by the unfavorable resolution of one or more of these proceedings or matters.
v3.20.1
INCOME TAXES
3 Months Ended
Apr. 03, 2020
INCOME TAXES INCOME TAXES
The Company's effective tax rate for the first quarter of 2020 was 25.7% compared to 30.3% in the prior year period. The decrease in the effective tax rate was due to a change in the country mix of earnings and associated tax benefits from our continued movement to a U.S.-center-led business model, with the major impact coming from a lower U.S. tax rate on foreign derived income and the ability to utilize foreign tax credits.
The December 22, 2017 Tax Cuts and Jobs Act subjects U.S. shareholders to tax on Global Intangible Low-Taxed Income ("GILTI") earned by certain foreign subsidiaries. The Company recognizes the tax on GILTI as a period expense in the period tax is incurred. Under this policy, the Company has not provided deferred taxes related to temporary differences that upon their reversal will affect the amount of income subject to GILTI in the period.
Anixter considers the undistributed earnings of its foreign subsidiaries to be indefinitely reinvested. Upon distribution of those earnings in the form of dividends or otherwise, Anixter may be subject to withholding taxes payable to the various foreign countries.
v3.20.1
PENSION PLANS
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
PENSION PLANS PENSION PLANS
The Company's defined benefit pension plans are the plans in the U.S., which consist of the Anixter Inc. Pension Plan, the Executive Benefit Plan and the Supplemental Executive Retirement Plan ("SERP") (together the "Domestic Plans") and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together the "Foreign Plans"). The majority of these defined benefit pension plans are non-contributory and, with the exception of the U.S. and Canada, 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. The Company's policy is to fund all Domestic Plans as required by the Employee Retirement Income Security Act of 1974 ("ERISA") and the IRS and all Foreign Plans as required by applicable foreign laws. The Executive Benefit Plan and SERP are the only two plans that are unfunded. Assets in the various plans consist primarily of equity securities and debt securities.
Components of net periodic pension (benefit) cost were as follows:
 Three Months Ended
 Domestic PlansForeign PlansTotal
(In millions)April 3, 2020March 29, 2019April 3, 2020March 29, 2019April 3, 2020March 29, 2019
Recorded in operating expenses:
Service cost$0.8  $0.8  $1.5  $1.4  $2.3  $2.2  
Recorded in other, net:
Interest cost2.4  2.8  1.5  1.7  3.9  4.5  
Expected return on plan assets(3.9) (3.7) (2.5) (2.7) (6.4) (6.4) 
Net amortization (a)
0.2  0.3  1.3  0.8  1.5  1.1  
Total recorded in other, net(1.3) (0.6) 0.3  (0.2) (1.0) (0.8) 
Total net periodic pension (benefit) cost$(0.5) $0.2  $1.8  $1.2  $1.3  $1.4  
(a)Reclassified from AOCI
v3.20.1
STOCKHOLDERS' EQUITY
3 Months Ended
Apr. 03, 2020
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY At April 3, 2020, there were approximately 1.1 million shares reserved for issuance under the 2017 Stock Incentive Plan. Under such plan, the Company pays its 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 units is amortized over the respective vesting period representing the requisite service period, generally three to six years. Director stock units are expensed in the period in which they are granted, as these vest immediately.
During the three months ended April 3, 2020, the Company granted 195,284 stock units to employees, with a weighted-average grant-date fair value of $19.0 million. During the three months ended April 3, 2020, the Company did not issue director stock units.
Antidilutive stock options and units are excluded from the calculation of weighted-average shares for diluted earnings per share. For the first quarter of 2020 and 2019, the antidilutive stock options and units were immaterial.
v3.20.1
BUSINESS SEGMENTS
3 Months Ended
Apr. 03, 2020
BUSINESS SEGMENTS BUSINESS SEGMENTS
Anixter is a leading distributor of network and security solutions, electrical and electronic wire and cable solutions and utility power solutions. The Company has identified Network & Security Solutions ("NSS"), Electrical and Electronic Solutions ("EES") and Utility Power Solutions ("UPS") as reportable segments. Within its segments, the Company is also organized by geographies. Anixter's geographies consist of North America, which includes the U.S. and Canada, EMEA, which includes Europe, the Middle East and Africa, and Emerging Markets, which includes Asia Pacific and Central and Latin America.
Corporate expenses are incurred to obtain and coordinate financing, tax, information technology, legal and other related services, certain of which were rebilled to subsidiaries. The Company also has 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.
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 product will be incorporated. Anixter also has largely specialized its 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, the Company reclassifies net sales by end market for prior periods. Such reclassifications typically do not materially change the sizing of, or the underlying trends of results within, each end market.
Segment Financial Information
Segment information for the three months ended April 3, 2020 and March 29, 2019 was as follows:
(In millions)
First Quarter of 2020NSSEESUPSCorporateTotal
Net sales$1,080.6  $542.2  $448.9  $—  $2,071.7  
Operating income (loss)63.2  28.7  22.0  (42.5) 71.4  

First Quarter of 2019NSSEESUPSCorporateTotal
Net sales$1,112.5  $566.0  $430.0  $—  $2,108.5  
Operating income (loss)70.9  29.1  18.5  (43.9) 74.6  

Geographic Information
The following table summarizes net sales by geographic areas for the three months ended April 3, 2020 and March 29, 2019:
 Three Months Ended
(In millions)April 3, 2020March 29, 2019
Net sales
North America$1,686.1  $1,697.8  
EMEA148.2  152.5  
Emerging Markets237.4  258.2  
Total net sales$2,071.7  $2,108.5  
Goodwill Assigned to Segments
The following table presents the changes in goodwill allocated to the Company's reporting units during the three months ended April 3, 2020:
(In millions)NSSEESUPSTotal
Balance as of January 3, 2020$463.6  $181.3  $183.8  $828.7  
Foreign currency translation and other(8.2) (0.8) (9.7) (18.7) 
Balance as of April 3, 2020$455.4  $180.5  $174.1  $810.0  
v3.20.1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.
Anixter International Inc. guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc., its 100% owned primary operating subsidiary. Anixter International Inc. has 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)April 3,
2020
January 3,
2020
Assets:
Current assets$3,228.8  $3,035.3  
Property and equipment, net179.0  179.5  
Operating leases255.7  265.1  
Goodwill810.0  828.7  
Intangible assets, net342.9  361.2  
Other assets126.8  132.9  
$4,943.2  $4,802.7  
Liabilities and Stockholder's Equity:
Current liabilities$1,418.1  $1,492.8  
Long-term debt1,322.6  1,065.9  
Operating lease obligations205.6  213.0  
Other liabilities166.0  172.6  
Stockholder’s equity1,830.9  1,858.4  
$4,943.2  $4,802.7  
ANIXTER INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME
 
Three Months Ended
 (In millions)
April 3,
2020
March 29,
2019
Net sales$2,071.7  $2,108.5  
Operating income$72.7  $76.1  
Income before income taxes$49.1  $57.4  
Net income$36.8  $40.4  
Comprehensive (loss) income$(27.6) $39.8  
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
3 Months Ended
Apr. 03, 2020
Basis of presentation
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 ("U.S. GAAP") have been condensed or omitted. Certain prior period amounts have been reclassified to conform to the current year presentation.
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 3, 2020 ("2019 Form 10-K"). The condensed consolidated financial information furnished herein reflects all normal recurring adjustments, 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 typically spanning thirteen weeks. The first quarter ends on the Friday of the first thirteen-week period, the second and third quarters are thirteen weeks in duration and the fourth quarter is the remainder of the year. The first quarter of fiscal year 2020 ended on April 3, 2020, and the first quarter of fiscal year 2019 ended on March 29, 2019.
Recently issued and adopted accounting pronouncements
Recently issued and adopted accounting pronouncements: In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 Anixter's 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. The Company adopted this standard effective the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements. See the section below titled "Receivables and expected credit losses" for more information on the Company's measurement of credit losses.
In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other: Simplifying the Test for Goodwill Impairment, which removes step two from the goodwill impairment test. Step two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. The new guidance requires an entity to perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, including goodwill. The standard is effective for Anixter's financial statements issued for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company adopted this standard effective the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company's Condensed Consolidated Financial Statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement: Changes to the Disclosure Requirements for Fair Value Measurement, which changes the disclosure requirements for fair value measurements by removing, adding and modifying certain disclosures. The standard is effective for Anixter's financial statements issued for fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company adopted this standard effective the first quarter of fiscal year 2020. The adoption of this standard did not have a material impact on the Company's related disclosures.
Recently issued accounting pronouncements not yet adopted Recently issued accounting pronouncements not yet adopted: In August 2018, the FASB issued ASU 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General: Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing and adding certain disclosures for these plans. The standard is effective for Anixter's financial statements issued for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its related disclosures.
In December 2019, the FASB issued ASU 2019-12, Income Taxes - Simplifying the Accounting for Income Taxes, which clarifies existing guidance and removes certain exceptions to the general principles for income taxes. The standard is effective for Anixter's financial statements issued for fiscal years beginning after December 15, 2020. Early adoption is permitted. The Company is currently evaluating the impact of adoption of this ASU on its Condensed Consolidated Financial Statements.
The Company does not believe that any other recently issued, but not yet effective, accounting pronouncements, if adopted, would have a material impact on its Condensed Consolidated Financial Statements or disclosures.
Receivables and expected credit losses Receivables and expected credit losses: The Company carries its accounts receivable at their face amounts less an allowance for expected credit losses, which was $29.7 million and $30.4 million as of April 3, 2020 and January 3, 2020, respectively. Changes in the allowance were not material for the three months ended April 3, 2020. On a regular basis, Anixter evaluates its accounts receivable and establishes the allowance for expected credit losses based on a combination of specific customer circumstances, as well as history of write-offs and collections, current credit conditions and economic forecasts. A receivable is considered past due if payments have not been received within the agreed upon invoice terms. Receivables are written off and deducted from the allowance account when the receivables are deemed uncollectible.
Revenue recognition
Revenue recognition: Anixter is a leading global distributor of network and security solutions, electrical and electronic solutions and utility power solutions. Through a global distribution network along with supply chain and technical expertise, Anixter helps customers reduce the risk, cost and complexity of their supply chains. Anixter is a leader in providing advanced inventory management services including procurement, just-in-time delivery, material management programs, turn-key yard layout and management, quality assurance testing, component kit production, storm/event kitting, small component assembly and e-commerce and electronic data interchange to a broad spectrum of customers with nearly 600,000 products. Revenue arrangements primarily consist of a single performance obligation to transfer promised goods or services. See Note 7. "Business Segments" for revenue disaggregated by geography.
Sales to customers and related cost of sales are primarily recognized at the point in time when control of goods transfers to the customer. For product sales, this generally occurs upon shipment of the products, however, this may occur at a later date depending on the agreed upon sales terms, such as delivery at the customer's designated location, or based on consignment terms. In instances where goods are not stocked by Anixter and delivery times are critical, product is purchased from the manufacturer and drop-shipped to the customer. Anixter generally takes control of the goods when shipped by the manufacturer and then recognizes revenue when control of the product transfers to the customer. When providing services, sales are recognized over time as control transfers to the customer, which occurs as services are rendered.
Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring goods or providing services. The Company estimates different forms of variable consideration at the time of sale based on historical experience, current conditions and contractual obligations. Revenue is recorded net of customer discounts, rebates and similar charges. When Anixter offers the right to return product, historical experience is utilized to establish a liability for the estimate of expected returns. Sales and other tax amounts collected from customers for remittance to governmental authorities are excluded from revenue. The Company has elected to treat shipping and handling as a fulfillment activity. The practical expedient not to disclose information about remaining performance obligations has also been elected as these contracts have an original duration of one year or less or are contracts where the Company has applied the practical expedient to recognize service revenue in proportion to the amount Anixter has the right to invoice. The Company typically receives payment 30 to 60 days from the point it has satisfied the related performance obligation.
At January 3, 2020, $11.6 million of deferred revenue related to outstanding contracts was reported in "Accrued expenses" in the Company's Condensed Consolidated Balance Sheet. This balance primarily represents prepayments from customers. During the three months ended April 3, 2020, $4.1 million of this deferred revenue was recognized. At April 3, 2020, deferred revenue was $12.1 million. The Company expects to recognize this balance as revenue within the next twelve months.
Other, net
Other, net: The following represents the components of "Other, net" as reflected in the Condensed Consolidated Statements of Comprehensive (Loss) Income:
Three Months Ended
(In millions)April 3,
2020
March 29,
2019
Other, net:
Foreign exchange loss$(4.5) $(0.5) 
Cash surrender value of life insurance policies(3.0) 1.7  
Net periodic pension benefit1.0  0.8  
Other(0.1) (0.2) 
Total other, net$(6.6) $1.8  
Certain subsidiaries of Anixter 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 (Loss) Income.
The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company's strategy is to negotiate terms for its derivatives and other financial instruments to be highly effective, such that the change in the value of the derivative offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). Its counterparties to foreign currency forward contracts have investment-grade credit ratings. Anixter expects the creditworthiness of its counterparties to remain intact through the term of the transactions. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist which could affect the value of the derivatives.
The Company does not hedge 100% of its foreign currency-denominated accounts. 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 April 3, 2020 and January 3, 2020, 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 (Loss) Income offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At April 3, 2020 and January 3, 2020, the gross notional amount of the foreign currency forward contracts outstanding was approximately $124.1 million and $130.2 million, respectively. At April 3, 2020 and January 3, 2020, the net notional amount of the foreign currency forward contracts outstanding was approximately $124.1 million and $95.4 million, respectively. While all of the Company's foreign currency forward contracts are subject to master netting arrangements with its counterparties, assets and liabilities related to these contracts are presented on a gross basis within the Condensed Consolidated Balance Sheets. The gross fair value of assets and liabilities related to foreign currency forward contracts are immaterial.
The combined effect of changes in both the equity and bond markets resulted in changes in the cash surrender value of the Company's company owned life insurance policies associated with the sponsored deferred compensation program.
Accumulated other comprehensive loss Accumulated other comprehensive loss: Unrealized gains and losses are accumulated in "Accumulated other comprehensive loss" ("AOCI"). These changes are also reported in "Other comprehensive (loss) income" on the Condensed Consolidated Statements of Comprehensive (Loss) Income. These include unrealized gains and losses related to the Company's defined benefit obligations and foreign currency translation. See Note 5. "Pension Plans" for pension related amounts reclassified into net income.Investments in several subsidiaries are recorded in currencies other than the U.S. dollar ("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. 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 Anixter's subsidiaries maintain investments denominated in currencies other than local currencies, exchange rate fluctuations will occur. Borrowings are raised in certain foreign currencies to minimize the exchange rate translation adjustment risk.
Supplemental cash flow information
Supplemental cash flow information: The following information discloses supplemental cash flow information about leasing activities.
During the three months ended April 3, 2020 and March 29, 2019, leased assets obtained in exchange for operating lease obligations were $10.5 million and $258.3 million, respectively. The operating cash outflow for amounts included in the measurement of operating lease obligations was $14.6 million in the first quarter of 2020 compared to $19.4 million in the prior year period.
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
3 Months Ended
Apr. 03, 2020
Summary of Components of Other Net Reflected in Consolidated Statements of Operations
Other, net: The following represents the components of "Other, net" as reflected in the Condensed Consolidated Statements of Comprehensive (Loss) Income:
Three Months Ended
(In millions)April 3,
2020
March 29,
2019
Other, net:
Foreign exchange loss$(4.5) $(0.5) 
Cash surrender value of life insurance policies(3.0) 1.7  
Net periodic pension benefit1.0  0.8  
Other(0.1) (0.2) 
Total other, net$(6.6) $1.8  
v3.20.1
DEBT (Tables)
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
Debt
Debt is summarized below:
(In millions)April 3,
2020
January 3,
2020
Long-term debt:
6.00% Senior notes due 2025$247.4  $247.3  
5.50% Senior notes due 2023348.1  347.9  
5.125% Senior notes due 2021398.5  398.3  
Revolving lines of credit310.0  56.0  
Finance lease obligations7.9  6.0  
Other9.1  8.8  
Unamortized deferred financing costs(4.2) (4.6) 
Total long-term debt$1,316.8  $1,059.7  
v3.20.1
PENSION PLANS (Tables)
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
Components of Net Periodic Benefit Costs omponents of net periodic pension (benefit) cost were as follows:
 Three Months Ended
 Domestic PlansForeign PlansTotal
(In millions)April 3, 2020March 29, 2019April 3, 2020March 29, 2019April 3, 2020March 29, 2019
Recorded in operating expenses:
Service cost$0.8  $0.8  $1.5  $1.4  $2.3  $2.2  
Recorded in other, net:
Interest cost2.4  2.8  1.5  1.7  3.9  4.5  
Expected return on plan assets(3.9) (3.7) (2.5) (2.7) (6.4) (6.4) 
Net amortization (a)
0.2  0.3  1.3  0.8  1.5  1.1  
Total recorded in other, net(1.3) (0.6) 0.3  (0.2) (1.0) (0.8) 
Total net periodic pension (benefit) cost$(0.5) $0.2  $1.8  $1.2  $1.3  $1.4  
v3.20.1
BUSINESS SEGMENTS (Tables)
3 Months Ended
Apr. 03, 2020
Segment Information
Segment information for the three months ended April 3, 2020 and March 29, 2019 was as follows:
(In millions)
First Quarter of 2020NSSEESUPSCorporateTotal
Net sales$1,080.6  $542.2  $448.9  $—  $2,071.7  
Operating income (loss)63.2  28.7  22.0  (42.5) 71.4  

First Quarter of 2019NSSEESUPSCorporateTotal
Net sales$1,112.5  $566.0  $430.0  $—  $2,108.5  
Operating income (loss)70.9  29.1  18.5  (43.9) 74.6  
Revenue from External Customers by Geographic Areas
 Three Months Ended
(In millions)April 3, 2020March 29, 2019
Net sales
North America$1,686.1  $1,697.8  
EMEA148.2  152.5  
Emerging Markets237.4  258.2  
Total net sales$2,071.7  $2,108.5  
Changes in Goodwill
The following table presents the changes in goodwill allocated to the Company's reporting units during the three months ended April 3, 2020:
(In millions)NSSEESUPSTotal
Balance as of January 3, 2020$463.6  $181.3  $183.8  $828.7  
Foreign currency translation and other(8.2) (0.8) (9.7) (18.7) 
Balance as of April 3, 2020$455.4  $180.5  $174.1  $810.0  
v3.20.1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC. (Tables)
3 Months Ended
Apr. 03, 2020
Text Block [Abstract]  
CONDENSED CONSOLIDATED BALANCE SHEETS The following summarizes the financial information for Anixter Inc.:
ANIXTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

(In millions)April 3,
2020
January 3,
2020
Assets:
Current assets$3,228.8  $3,035.3  
Property and equipment, net179.0  179.5  
Operating leases255.7  265.1  
Goodwill810.0  828.7  
Intangible assets, net342.9  361.2  
Other assets126.8  132.9  
$4,943.2  $4,802.7  
Liabilities and Stockholder's Equity:
Current liabilities$1,418.1  $1,492.8  
Long-term debt1,322.6  1,065.9  
Operating lease obligations205.6  213.0  
Other liabilities166.0  172.6  
Stockholder’s equity1,830.9  1,858.4  
$4,943.2  $4,802.7  
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
ANIXTER INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE (LOSS) INCOME
 
Three Months Ended
 (In millions)
April 3,
2020
March 29,
2019
Net sales$2,071.7  $2,108.5  
Operating income$72.7  $76.1  
Income before income taxes$49.1  $57.4  
Net income$36.8  $40.4  
Comprehensive (loss) income$(27.6) $39.8  
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail)
$ in Millions
3 Months Ended
Apr. 03, 2020
USD ($)
Mar. 29, 2019
USD ($)
Jan. 03, 2020
USD ($)
Summary Of Significant Accounting Policies [Line Items]      
Accounts Receivable, Allowance for Credit Loss $ 29.7   $ 30.4
Number of products 600,000    
Deferred revenue, current $ 12.1   11.6
Recognition of deferred revenue $ 4.1    
Rate of foreign currency denominated accounts not hedged 100.00%    
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability $ 10.5 $ 258.3  
Operating Lease, Payments 14.6 $ 19.4  
Gross [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Derivative, Notional Amount 124.1   130.2
Net [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Derivative, Notional Amount $ 124.1   $ 95.4
Minimum [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Number of days between performance obligation satisfaction and payment 30 days    
Maximum [Member]      
Summary Of Significant Accounting Policies [Line Items]      
Number of days between performance obligation satisfaction and payment 60 days    
v3.20.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Summary of Components of Other Net Reflected in Consolidated Statements of Operations (Detail) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Other, net:    
Foreign exchange loss $ (4.5) $ (0.5)
Cash surrender value of life insurance policies (3.0) 1.7
Net periodic pension benefit 1.0 0.8
Other (0.1) (0.2)
Total other, net $ (6.6) $ 1.8
v3.20.1
DEBT (Detail) - USD ($)
$ in Millions
Apr. 03, 2020
Jan. 03, 2020
Debt Instrument [Line Items]    
Long-term debt $ 1,316.8 $ 1,059.7
Finance lease obligations 7.9 6.0
Unamortized deferred financing costs (4.2) (4.6)
6.00% Senior notes due 2025 [Member]    
Debt Instrument [Line Items]    
Long-term debt 247.4 247.3
5.50% Senior notes due 2023 [Domain]    
Debt Instrument [Line Items]    
Long-term debt 348.1 347.9
5.125% Senior notes due 2021 [Member]    
Debt Instrument [Line Items]    
Long-term debt 398.5 398.3
Revolving Credit Facility [Member]    
Debt Instrument [Line Items]    
Long-term debt 310.0 56.0
Other [Member]    
Debt Instrument [Line Items]    
Long-term debt $ 9.1 $ 8.8
v3.20.1
DEBT - Additional Information (Detail) - USD ($)
$ in Millions
Apr. 03, 2020
Jan. 03, 2020
Line Of Credit Facility Covenant Compliance [Line Items]    
Long-term debt $ 1,316.8 $ 1,059.7
Long-term debt fair value $ 1,317.8 $ 1,122.1
v3.20.1
INCOME TAXES - Additional Information (Detail)
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Disclosure Income Taxes Additional Information [Abstract]    
Effective Income Tax Rate 25.70% 30.30%
v3.20.1
PENSION PLANS - Components of Net Periodic Cost (Detail) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Components of net periodic pension (benefit) cost:    
Total recorded in other, net $ (1.0) $ (0.8)
Net periodic pension (benefit) cost 1.3 1.4
Continuing Operations [Member]    
Components of net periodic pension (benefit) cost:    
Service cost 2.3 2.2
Interest cost 3.9 4.5
Expected return on plan assets (6.4) (6.4)
Net amortization [1] 1.5 1.1
Net periodic pension (benefit) cost 1.3 1.4
UNITED STATES    
Components of net periodic pension (benefit) cost:    
Service cost 0.8 0.8
Interest cost 2.4 2.8
Expected return on plan assets (3.9) (3.7)
Net amortization [1] 0.2 0.3
Total recorded in other, net (1.3) (0.6)
Net periodic pension (benefit) cost (0.5) 0.2
Foreign Plan [Member]    
Components of net periodic pension (benefit) cost:    
Service cost 1.5 1.4
Interest cost 1.5 1.7
Expected return on plan assets (2.5) (2.7)
Net amortization [1] 1.3 0.8
Total recorded in other, net 0.3 (0.2)
Net periodic pension (benefit) cost $ 1.8 $ 1.2
[1] Reclassified from AOCI
v3.20.1
STOCKHOLDERS' EQUITY - Additional Information (Detail)
$ / shares in Millions
3 Months Ended
Apr. 03, 2020
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of shares available for grant 1,100,000
Granted 195,284
Granted, weighted average grant date fair value | $ / shares $ 19.0
Minimum [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 3 years
Maximum [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Award vesting period 6 years
v3.20.1
BUSINESS SEGMENTS - Segment Information (Detail) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Segment Reporting Information [Line Items]    
Net sales $ 2,071.7 $ 2,108.5
Operating income (loss) 71.4 74.6
Network and Security Solutions [Member]    
Segment Reporting Information [Line Items]    
Net sales 1,080.6 1,112.5
Operating income (loss) 63.2 70.9
Electrical and Electronic Solutions [Member]    
Segment Reporting Information [Line Items]    
Net sales 542.2 566.0
Operating income (loss) 28.7 29.1
Utility Power Solutions [Member]    
Segment Reporting Information [Line Items]    
Net sales 448.9 430.0
Operating income (loss) 22.0 18.5
Corporate [Member]    
Segment Reporting Information [Line Items]    
Net sales 0.0 0.0
Operating income (loss) (42.5) (43.9)
Continuing Operations [Member]    
Segment Reporting Information [Line Items]    
Net sales 2,071.7 2,108.5
Operating income (loss) $ 71.4 $ 74.6
v3.20.1
BUSINESS SEGMENTS - Revenue From External Customers by Geographic Areas (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Revenues from External Customers and Long-Lived Assets [Line Items]    
Net sales $ 2,071.7 $ 2,108.5
North America [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Net sales 1,686.1 1,697.8
EMEA [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Net sales 148.2 152.5
Emerging Markets [Member]    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Net sales $ 237.4 $ 258.2
v3.20.1
BUSINESS SEGMENTS - Changes in Goodwill (Detail)
$ in Millions
3 Months Ended
Apr. 03, 2020
USD ($)
Goodwill [Roll Forward]  
Goodwill, Beginning Balance $ 828.7
Foreign currency translation and other (18.7)
Goodwill, Ending Balance 810.0
Network and Security Solutions [Member]  
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 463.6
Foreign currency translation and other (8.2)
Goodwill, Ending Balance 455.4
Electrical and Electronic Solutions [Member]  
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 181.3
Foreign currency translation and other (0.8)
Goodwill, Ending Balance 180.5
Utility Power Solutions [Member]  
Goodwill [Roll Forward]  
Goodwill, Beginning Balance 183.8
Foreign currency translation and other (9.7)
Goodwill, Ending Balance $ 174.1
v3.20.1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - Additional Information (Detail)
3 Months Ended
Apr. 03, 2020
Disclosure Summarized Financial Information Of Anixter Inc Additional Information [Abstract]  
Description of guarantees given by parent company Anixter International Inc. guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc., its 100% owned primary operating subsidiary. Anixter International Inc. has no independent assets or operations and all subsidiaries other than Anixter Inc. are minor.
v3.20.1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED BALANCE SHEETS (Detail) - USD ($)
$ in Millions
Apr. 03, 2020
Jan. 03, 2020
Mar. 29, 2019
Dec. 28, 2018
Assets:        
Current assets $ 3,232.5 $ 3,037.9    
Property and equipment 174.8 174.9    
Operating leases 263.5 273.3    
Goodwill 810.0 828.7    
Intangible assets, net 342.9 361.2    
Other assets 126.8 132.9    
Total assets 4,950.5 4,808.9    
Liabilities and Stockholders' Equity:        
Current liabilities 1,420.9 1,493.5    
Operating lease obligations 209.2 219.1    
Other liabilities 170.3 175.7    
Stockholders' equity 1,833.3 1,860.9 $ 1,620.7 $ 1,570.4
Total liabilities and stockholders’ equity 4,950.5 4,808.9    
Anixter Inc. [Member]        
Assets:        
Current assets 3,228.8 3,035.3    
Property and equipment 179.0 179.5    
Operating leases 255.7 265.1    
Goodwill 810.0 828.7    
Intangible assets, net 342.9 361.2    
Other assets 126.8 132.9    
Total assets 4,943.2 4,802.7    
Liabilities and Stockholders' Equity:        
Current liabilities 1,418.1 1,492.8    
Long-term debt 1,322.6 1,065.9    
Operating lease obligations 205.6 213.0    
Other liabilities 166.0 172.6    
Stockholders' equity 1,830.9 1,858.4    
Total liabilities and stockholders’ equity $ 4,943.2 $ 4,802.7    
v3.20.1
SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC - CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Detail) - USD ($)
$ in Millions
3 Months Ended
Apr. 03, 2020
Mar. 29, 2019
Condensed Financial Statements, Captions [Line Items]    
Net sales $ 2,071.7 $ 2,108.5
Operating income 71.4 74.6
Income before income taxes 48.0 56.0
Net income 35.7 39.1
Comprehensive (loss) income (28.7) 46.2
Anixter Inc. [Member]    
Condensed Financial Statements, Captions [Line Items]    
Net sales 2,071.7 2,108.5
Operating income 72.7 76.1
Income before income taxes 49.1 57.4
Net income 36.8 40.4
Comprehensive (loss) income $ (27.6) $ 39.8