Anixter International Inc. Financial Statement Analysis
ANIXTER INTERNATIONAL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Summary of Non-Vested Shares
The following table summarizes the changes to the non-vested shares:
(shares in thousands)
Balance at December 28, 2018
Granted
Vested
Non-vested
Performance
Shares (a)
Weighted-
average
Grant Date
Fair Value
147.9
$
47.73
58.1
62.00
(55.2)
17.40
(44.2)
48.61
Performance unit adjustments"
Canceled
Balance at January 3, 2020
(a) All non-vested stock performance units are expected to vest.
(b) Adjustments based on final evaluations for non-vested performance stock units.
106.6 $ 70.84
As of January 3, 2020, there was $13.6 million of total unrecognized compensation cost related to non-vested stock units
which is expected to be recognized over a weighted-average period of 1.4 years. As of January 3, 2020, all compensation cost
related to options granted to employees has been fully recognized.
NOTE 10. 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 NSS, EES and 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. Intercompany transactions are not significant. No
customer accounted for more than 3% of sales in 2019.
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 2019, 2018 and 2017 are as follows:
(In millions)
2019
NSS
EES
UPS
Corporate (a)
Total
Net sales
4,696.2
2,352.0 $
Operating income (loss)
325.5
139.5
1,797.4
83.5
$
8,845.6
Depreciation
9.4
7.3
3.7
(181.0)
16.8
367.5
37.2
Amortization of intangible assets
16.4
5.4
13.2
35.0
Total assets
2,224.8
1,085.2
943.6
Capital expenditures
3.1
1.7
14.6
555.2
20.6
4,808.9
40.0
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