Anixter International Inc. Financial Statement Analysis
ANIXTER INTERNATIONAL INC.
We recorded the following items that impacted the comparability of the results for the last three fiscal years:
Items Impacting Comparability of Results:
(In millions, except per share amounts)
Years Ended
January 3,
2020
December 28,
2018
December 29,
2017
Items impacting operating expense and operating income:
Favorable (Unfavorable)
Amortization of intangible assets
$
(35.0) $
(37.3) $
(36.1)
Merger costs
(12.8)
Restructuring charge
Acquisition and integration costs
CEO retirement agreement expense
U.K. facility relocation costs
(9.4)
0.3
(2.9)
(2.3)
(2.6)
(1.0)
Impairment of intangible assets
(5.7)
Total of items impacting operating expense and operating income
$
(47.5) $
(53.2) $
(44.1)
Items impacting other expenses:
Loss on extinguishment of debt
(4.6)
Total of items impacting other expenses
$
(4.6) $
Total of items impacting pre-tax income
$
(47.5) $
(57.8) $
(44.1)
Items impacting income taxes:
Tax impact of items impacting pre-tax income above
8.8
12.6
14.8
Transition tax on deferred foreign income
2.8
(50.0)
Rate change impact of net deferred tax liability
(0.7)
14.4
Reversal of deferred income tax valuation allowances
45.9
1.4
Tax expense related to domestic permanent tax differences
(0.7)
Tax
expense related to prior year tax positions
(0.8)
(0.1)
(1.3)
Total of items impacting income taxes
$
53.9 $
15.3 $
(22.1)
Net income impact of these items
$
6.4 $
(42.5) $
(66.2)
Diluted EPS impact of these items
$
0.19
$
(1.25) $
(1.95)
The items impacting operating income by segment are reflected in the tables below.
Items Impacting Comparability of Operating Expense and Operating Income by Segment:
(In millions)
NSS
EES
Year Ended January 3, 2020
UPS
Corporate
Total
Amortization of intangible assets
$
(16.4) $
(5.4) $
(13.2) $
$
Merger costs
(12.8)
(35.0)
(12.8)
Restructuring charge
(0.5)
0.1
0.4
Acquisition and integration costs
0.3
0.3
Total of items impacting operating expense and
operating income
$
(16.4) $
(5.9) $ (13.1) $
(12.1) $
(47.5)
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