Anixter International Inc. Financial Statement Analysis slide image

Anixter International Inc. Financial Statement Analysis

(In millions) ANIXTER INTERNATIONAL INC. NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued) December 29, 2017 Balance Purchases, sales and settlements December 28, 2018 Balance Asset Categories: Property/real estate Total Level 3 investments $ $ 32.7 $ 32.7 $ 32.7 $ 32.7 The Company estimated future benefits payments are as follows at the end of 2019: Estimated Future Benefit Payments (In millions) 2020 2021 2022 2023 2024 2025-2029 Total Domestic Foreign Total $ 10.9 $ 5.6 $ 16.5 11.6 5.6 17.2 12.4 6.1 18.5 13.2 6.6 19.8 14.2 7.2 21.4 80.6 53.2 133.8 $ 142.9 $ 84.3 $ 227.2 The accumulated benefit obligation in 2019 and 2018 was $293.2 million and $258.2 million, respectively, for the Domestic Plans and $253.3 million and $212.6 million, respectively, for the Foreign Plans. The Company had 9 plans in 2019 and 10 plans in 2018 where the accumulated benefit obligation was in excess of the fair value of plan assets. For pension plans with accumulated benefit obligations in excess of plan assets the aggregate pension accumulated benefit obligation was $261.8 million and $220.3 million for 2019 and 2018, respectively, and aggregate fair value of plan assets was $208.3 million and $179.0 million for 2019 and 2018, respectively. The Company currently estimates that it will make contributions of approximately $6.6 million to its Foreign Plans in 2020. In addition, the Company estimates that it will make $1.1 million of benefit payments directly to participants of its two domestic unfunded non-qualified pension plans. The Company does not expect to make a contribution to its domestic qualified pension pension plan in 2020 due to its overfunded status. Defined Contribution Plan Anixter Inc. adopted the Anixter Inc. Employee Savings Plan effective January 1, 1994. The Plan is a defined- contribution plan covering all non-union domestic employees. Participants are eligible and encouraged to enroll in the tax- deferred plan on their date of hire and are automatically enrolled approximately 60 days after their date of hire unless they opt out. The savings plan is subject to the provisions of ERISA. In the third quarter of 2015, Anixter Inc. amended the Anixter Inc. Pension Plan in the U.S. whereby employees first hired or rehired on or after July 1, 2015 are no longer eligible to participate in the Anixter Inc. Pension Plan. Anixter Inc. will make an annual contribution to the Employee Savings Plan on behalf of each active participant who is first hired or rehired on or after July 1, 2015, or is not participating in the Anixter Inc. Pension Plan. The amount of the employer annual contribution to each active participant's account will be an amount determined by multiplying the participant's salary for the Plan year by either: (1) 2% if such participant's years of service as of August 1 of the Plan year is fewer than five, or (2) 2.5% if such participant's years of service as of August 1 of the Plan year is five years or greater. This contribution is in lieu of being eligible for the Anixter Inc. Pension Plan. Effective January 1, 2014, Anixter began matching contributions to equal 50% of a participant's contribution up to 5% of the participant's compensation. The Company also has certain foreign defined contribution plans. Contributions to these plans are based upon various levels of employee participation and legal requirements. The total expense related to defined contribution plans was $14.4 million, $13.8 million and $13.3 million in 2019, 2018 and 2017, respectively. 88 68
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