Anixter International Inc. Financial Statement Analysis
ANIXTER INTERNATIONAL INC.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
Total rental expense was $107.3 million and $100.9 million in 2018 and 2017, respectively.
The weighted-average remaining lease term and weighted-average discount rate under operating leases were as follows:
Lease term and discount rate
Weighted-average remaining lease term
Weighted-average discount rate
(a)
January 3, 2020
6.5 years
5.9 %
(a) Upon adoption of ASU 2016-02, the discount rate used for existing leases was established as of December 29, 2018.
Maturities of operating lease liabilities at January 3, 2020 were as follows:
(In millions)
2020
2021
2022
2023
2024
2025 and thereafter
Total lease payments
Less imputed interest
Present value of lease liabilities
$
75.4
59.2
54.4
40.8
32.0
81.6
$
343.4
61.4
$
282.0
Operating lease payments include $17.4 million related to options to extend lease terms that are reasonably certain of
being exercised. As of January 3, 2020, the Company has additional leases related to facilities that have not yet commenced of
$7.5 million. These operating leases will commence in fiscal year 2020 with lease terms of three to eleven years. Anixter
subleases certain real estate to third parties. During the year ended January 3, 2020, the Company recognized income of $1.1
million, which was included within "Operating expenses" in the Company's Consolidated Statements of Income. Aggregate
future minimum rentals to be received under non-cancelable subleases at January 3, 2020 were $3.7 million.
During the year ended January 3, 2020, leased assets obtained in exchange for operating lease obligations were $348.3
million. The operating cash outflow for amounts included in the measurement of operating lease obligations was $63.5 million.
NOTE 5. DEBT
Debt is summarized below:
(In millions)
Long-term debt:
6.00% Senior notes due 2025
5.50% Senior notes due 2023
5.125% Senior notes due 2021
Revolving lines of credit
Finance lease obligations
Other
Unamortized deferred financing costs
January 3,
2020
December 28,
2018
247.3
246.9
347.9
347.4
398.3
397.4
56.0
260.0
6.0
0.9
8.8
6.1
(4.6)
(6.0)
$
1,059.7 $
1,252.7
Total long-term debt
Certain debt agreements entered into by Anixter's operating subsidiaries contain various restrictions, including
restrictions on payments to the Company. These restrictions have not had, nor are expected to have, an adverse impact on the
Company's ability to meet cash obligations. Anixter International Inc. has guaranteed substantially all of the debt of its
subsidiaries.
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