Anixter International Inc. Financial Statement Analysis
PART I
ITEM 1. BUSINESS.
Company Overview
Anixter International Inc. and its subsidiaries (collectively referred to as "Anixter" or the "Company"), sometimes
referred to in this Annual Report on Form 10-K as "we", "our", "us", or "ourselves", founded in 1957, is headquartered near
Chicago, Illinois and trades on the New York Stock Exchange under the symbol AXE. The Company was formerly known as
Itel Corporation which was incorporated under Delaware law in 1967. Through Anixter Inc. and its subsidiaries, we are a
leading distributor of network and security solutions, electrical and electronic solutions, and utility power solutions.
Through our global presence, technical expertise and supply chain solutions, we help our customers reduce the risk, cost
and complexity of their supply chains. We add value to the distribution process by providing over 100,000 customers access to
innovative inventory management programs, nearly 600,000 products and over $1.0 billion in inventory, 309 warehouses/
branch locations with approximately 9 million square feet of space, and locations in over 300 cities across approximately 50
countries. We are 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.
Our customers are international, national, regional and local businesses, covering a broad and diverse set of industry
groups including manufacturing, resource extraction, telecommunications, service providers, finance, education, healthcare,
retail, transportation, utilities (both public power and investor owned), defense and government; and include contractors,
installers, system integrators, value-added resellers, architects, engineers and wholesale distributors. Our customer base is well-
diversified with no single customer accounting for more than 3% of sales.
Our differentiated operating model is premised on our belief that our customers and suppliers value a partner with
consistent global product offerings, technical expertise (including product and application knowledge and support) and
customized supply chain solutions, all supported by common business practices that ensure the same "look, touch and feel"
worldwide.
Our growth strategy is driven by constant refresh and expansion of our product and solution offerings to meet
marketplace needs. This organic growth approach extends to a constantly evolving set of supply chain services that are
designed to lower the customer's total cost of procuring, owning and deploying the products we sell. We have identified
security, professional audio/visual, wireless, industrial automation, electrical grid upgrades, as well as emerging technologies
such as 5G and IoT as growth opportunities we are pursuing. Organic growth will periodically be supplemented with
acquisitions where the benefits associated with geographic expansion, market penetration or new product line additions are
weighted in favor of "buying versus building."
Business Segments and Products
We have identified Network & Security Solutions ("NSS"), Electrical & Electronic Solutions ("EES") and Utility Power
Solutions ("UPS") as reportable segments. The following is a brief description of each of our reportable segments and business
activities.
Within our segments, we are also organized by geographies. Our 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 ("CALA").
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