PENSION PLANS, POST-RETIREMENT BENEFITS AND OTHER BENEFITS

The Company's defined benefit pension plans are the plans in the U.S., which consist of the Anixter Inc. Pension Plan, the Executive Benefit Plan and the Supplemental Executive Retirement Plan ("SERP") (together the "Domestic Plans") and various defined benefit pension plans covering employees of foreign subsidiaries in Canada and Europe (together the "Foreign Plans"). The majority of these defined benefit pension plans are non-contributory and, with the exception of the U.S., cover substantially all full-time domestic employees and certain employees in other countries. Retirement benefits are provided based on compensation as defined in both the Domestic Plans and the Foreign Plans. The Company's policy is to fund all Domestic Plans as required by the Employee Retirement Income Security Act of 1974 ("ERISA") and the IRS and all Foreign Plans as required by applicable foreign laws. The Executive Benefit Plan and SERP are the only two plans that are unfunded. Assets in the various plans consist primarily of equity securities and fixed income investments.

Accounting rules related to pensions and the policies used generally reduce the recognition of actuarial gains and losses in the net benefit cost, as any significant actuarial gains/losses are amortized over the remaining service lives of the plan participants. These actuarial gains and losses are mainly attributable to the return on plan assets that differ from that assumed and differences in the obligation due to changes in the discount rate, plan demographic changes and other assumptions.

The measurement date for all plans is December 31st. Accordingly, at the end of each fiscal year, the Company determines the discount rate to be used to discount the plan liabilities to their present value. The discount rate reflects the current rate at which the pension liabilities could be effectively settled at the end of the year. In estimating this rate at the end of 2017, 2016 and 2015, the Company reviewed rates of return on relevant market indices (i.e., the Citigroup pension liability index and the Ryan ALM Above Median yield curves). At the end of 2017, 2016 and 2015, the Company concluded the Ryan ALM Above Median yield curves are more consistent with observable market conditions and industry standards for developing spot rate curves. These rates are adjusted to match the duration of the liabilities associated with the pension plans.

At December 29, 2017 and December 30, 2016, the Company determined the consolidated weighted-average discount rate of all plans to be 3.26% and 3.73%, respectively, and used these rates to measure the projected benefit obligation ("PBO") at the end of each respective fiscal year end. Due primarily to actuarial losses and foreign currency exchange rate changes, the PBO increased to $533.4 million at the end of fiscal 2017 from $481.8 million at the end of fiscal 2016. The consolidated net unfunded status was $43.5 million at the end of fiscal 2017 compared to $69.1 million at the end of 2016.

A significant element in determining net periodic benefit cost in accordance with U.S. GAAP is the expected return on plan assets. For 2017, the Company had assumed that the weighted-average expected long-term rate of return on plan assets would be 5.59%. This expected return on plan assets is included in the net periodic benefit cost for the fiscal year ended 2017. As a result of the combined effect of valuation changes in both the equity and bond markets, the plan assets produced actual gains of approximately 13.3% and 11.9% in 2017 and 2016, respectively. The fair value of plan assets is $489.9 million at the end of fiscal 2017, compared to $412.7 million at the end of fiscal 2016. The difference between the expected return and the actual return on plan assets is amortized into expense over the service lives of the plan participants. These amounts are reflected on the balance sheet through charges to "Accumulated other comprehensive loss," a component of "Stockholders’ Equity" in the Consolidated Balance Sheets.

In the fourth quarter of 2017, the Company transferred the benefits of certain retirees or beneficiaries to a third-party annuity provider. The Company paid $11.3 million of additional contributions into the plan using excess cash from operations to fund the contributions. The plan purchased an $11.3 million annuity contract with a third-party insurance carrier and transferred the related pension obligations to the carrier. The funding of the premiums did not result in a settlement charge as the amount did not exceed the service and interest costs of the plan in 2017.

In the fourth quarter of 2016, the Anixter Inc. Pension Plan was amended to allow for the benefits of certain retirees or beneficiaries to be transferred to a third-party annuity provider. The Company paid $10.5 million of additional contributions into the plan using excess cash from operations to fund the contributions. The plan purchased a $10.5 million annuity contract with a third-party insurance carrier and transferred the related pension obligations to the carrier. The funding of the premiums did not result in a settlement charge as the amount did not exceed the service and interest costs of the plan in 2016.

In the fourth quarter of 2015, the Company commenced settlement of the liabilities of one of its Europe pension plans. At that time, Anixter entered into a buy-in policy with an insurance carrier for that plan. In the second quarter of 2016, the Company terminated the buy-in policy, and entered into an agreement for issuance of a buy-out policy with the insurance carrier for the pension obligation. Accumulated other comprehensive losses of approximately $9.6 million (£6.9 million) were realized as a result of the buy-out policy, and are reflected in the Company's Consolidated Statements of Comprehensive Income.

In the third quarter of 2015, the Company took two actions related to the Anixter Inc. Pension Plan in the U.S.. First, the plan was frozen to entrants first hired or rehired on or after July 1, 2015. 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 or greater. This contribution is in lieu of being eligible for the Anixter Inc. Pension Plan. The total expense related to the amendment was $0.8 million. Second, the Company amended the Anixter Inc. Pension Plan in the U.S. to allow for terminated Fasteners employees to become immediately vested, if they were hired before February 12, 2015 and are not already fully vested. Furthermore, the amendment allows for employees who were terminated in connection with the sale of the Fastener business, the one-time option to receive a cash payout of their vested benefits. This resulted in $10.2 million of additional contributions paid by Anixter using excess cash from operations to fund $10.2 million of payments. The funding of the cash payments did not result in a settlement charge as the amount did not exceed the service and interest costs of the plan in 2015.

All non-union domestic employees hired or rehired before July 1, 2015, earn a benefit under a personal retirement account (hypothetical account balance). Each year, a participant’s account receives a credit equal to 2% of the participant’s salary (2.5% if the participant’s years of service at August 1 of the plan year are 5 years or more). Active participants become fully vested in their hypothetical personal retirement account after 3 years of service. Interest earned on the credited amount is not credited to the personal retirement account but is contributed to the participant’s account in the Anixter Inc. Employee Savings Plan. The interest contribution equals the interest earned on the personal retirement account balance as of January 1^st in the Domestic Plan and is based on the 10-year Treasury note rate as of the last business day of December.

In 2016 and 2017, the Society of Actuaries released new mortality improvement projection scales. As a result, the Company updated U.S. mortality improvement assumptions in 2016 and 2017 for purposes of determining its mortality assumption used in the U.S. defined benefit plans' liability calculation. The updated U.S. mortality assumptions resulted in a decrease of $1.6 million and $0.8 million to the benefit obligation as of the end of 2017 and 2016, respectively, prior to reflecting the discount rate change. In 2017, the U.S. assumptions were also updated to reflect the results of an experience study performed during 2017. The net impact of updating these assumptions was a decrease in the obligation of $0.1 million prior to reflecting the discount and mortality change.

The assets of the various defined benefit plans are held in separate independent trusts and managed by independent third party advisors. The investment objective of both the Domestic and Foreign Plans is to ensure, over the long-term life of the plans, an adequate level of assets to fund the benefits to employees and their beneficiaries at the time they are payable. In meeting this objective, the Company seeks to achieve a level of absolute investment return consistent with a prudent level of portfolio risk. Anixter's risk preference is to refrain from exposing the plans to higher volatility in pursuit of potential higher returns.

The Domestic Plans’ and Foreign Plans’ asset mixes as of December 29, 2017 and December 30, 2016 and the asset allocation guidelines for such plans are summarized as follows.



	Domestic Plans
	December 29, 2017		December 30, 2016		Allocation Guidelines
	December 29, 2017		December 30, 2016		Min		Target		Max
Large capitalization U.S. stocks	23.6	%	22.7	%	17	%	22	%	27	%
Small to mid capitalization U.S. stocks	28.3		29.1		20		30		40
Emerging market equity	11.8		10.0		5		10		15
Total equity securities	63.7		61.8				62
Fixed income investments	33.4		35.0		31		38		45
Cash equivalents	2.9		3.2		—		—		10
	100.0	%	100.0	%			100	%



	Foreign Plans
	December 29, 2017		Allocation
			Guidelines
			Target
Equity securities	62	%	60	%
Fixed income investments	29		30
Other investments	9		10
	100	%	100	%



	Foreign Plans
	December 30, 2016		Allocation
			Guidelines
			Target
Equity securities	61	%	60	%
Fixed income investments	29		30
Other investments	10		10
	100	%	100	%

The pension committees meet regularly to assess investment performance and reallocate assets that fall outside of its allocation guidelines. The variations between the allocation guidelines and actual asset allocations reflect relative performance differences in asset classes. From time to time, the Company periodically rebalances its asset portfolios to be in line with its allocation guidelines.

For 2017 and 2016, the U.S. investment policy guidelines were as follows:


•	Each asset class is actively managed by one investment manager


•	Each asset class may be invested in a commingled fund, mutual fund, or separately managed account


•	Investment in Exchange Traded Funds (ETFs) is permissible


•	Each manager is expected to be "fully invested" with minimal cash holdings


•	The use of options and futures is limited to covered hedges only


•	Each equity asset manager has a minimum number of individual company stocks that need to be held and there are restrictions on the total market value that can be invested in any one industry and the percentage that any one company can be of the portfolio total


•	The fixed income funds are diversified by issuer and industry, with maximum limits on investment in U.S. Treasuries and U.S. Government Agencies

The investment policies for the Foreign plans are the responsibility of the various trustees. Generally, the investment policy guidelines are as follows:


•	Make sure that the obligations to the beneficiaries of the Plan can be met


•	Maintain funds at a level to meet the minimum funding requirements


•	The investment managers are expected to provide a return, within certain tracking tolerances, close to that of the relevant market’s indices

The expected long-term rate of return on both the Domestic and Foreign Plans’ assets reflects the average rate of earnings expected on the invested assets and future assets to be invested to provide for the benefits included in the projected benefit obligation. The Company uses historic plan asset returns combined with current market conditions to estimate the rate of return. The expected rate of return on plan assets is a long-term assumption based on an analysis of historical and forward looking returns considering the respective plan’s actual and target asset mix. The weighted-average expected rate of return on plan assets used in the determination of net periodic pension cost for 2017 is 5.59%.

The following table sets forth the changes and the end of year components of "Accumulated other comprehensive loss" for the defined benefit plans:



(In millions)	December 29, 2017			December 30, 2016
Changes to Balance:
Beginning balance	$	119.2		$	112.5
Recognized prior service cost	4.0			4.0
Recognized transition obligation	—			(0.9		)
Recognized net actuarial gain	(9.6		)	(14.8		)
Prior service credit arising in current year	4.2			(2.2		)
Net actuarial (gain) loss arising in current year	(5.6		)	20.6
Ending balance	$	112.2		$	119.2



Components of Balance:
Prior service credit	$	(17.3	)	$	(21.1	)
Net actuarial loss	129.5			140.3
	$	112.2		$	119.2

Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2018 are as follows:



(In millions)
Amortization of prior service credit	$	(4.0	)
Amortization of actuarial loss	7.5
Total amortization expected	$	3.5

The following represents a reconciliation of the funded status of the Company's pension plans for fiscal years 2017 and 2016:



	Pension Benefits
	Domestic Plans						Foreign Plans						Total
(In millions)	2017			2016			2017			2016			2017			2016
Change in projected benefit obligation:
Beginning balance	$	258.8		$	250.1		$	223.0		$	266.0		$	481.8		$	516.1
Service cost	3.3			3.2			5.9			5.8			9.2			9.0
Interest cost	11.1			11.5			6.9			7.8			18.0			19.3
Actuarial loss	22.4			13.0			8.6			43.0			31.0			56.0
Benefits paid from plan assets	(7.5		)	(7.6		)	(6.7		)	(16.1		)	(14.2		)	(23.7		)
Benefits paid from Company assets	(1.0		)	(0.9		)	—			—			(1.0		)	(0.9		)
Plan participants contributions	—			—			0.1			0.2			0.1			0.2
Foreign currency exchange rate changes	—			—			21.2			(26.5		)	21.2			(26.5		)
Impact due to annuity purchase	(11.3		)	(10.5		)	(1.4		)	(57.2		)	(12.7		)	(67.7		)
Ending balance	$	275.8		$	258.8		$	257.6		$	223.0		$	533.4		$	481.8
Change in plan assets at fair value:
Beginning balance	$	238.3		$	218.1		$	174.4		$	228.1		$	412.7		$	446.2
Actual return on plan assets	41.0			18.8			18.9			32.1			59.9			50.9
Company contributions to plan assets	20.3			19.5			7.1			9.5			27.4			29.0
Benefits paid from plan assets	(7.5		)	(7.6		)	(6.7		)	(16.1		)	(14.2		)	(23.7		)
Plan participants contributions	—			—			0.1			0.2			0.1			0.2
Purchase of annuity	(11.3		)	(10.5		)	(1.4		)	(57.2		)	(12.7		)	(67.7		)
Foreign currency exchange rate changes	—			—			16.7			(22.2		)	16.7			(22.2		)
Ending balance	$	280.8		$	238.3		$	209.1		$	174.4		$	489.9		$	412.7
Reconciliation of funded status:
Projected benefit obligation	$	(275.8	)	$	(258.8	)	$	(257.6	)	$	(223.0	)	$	(533.4	)	$	(481.8	)
Plan assets at fair value	280.8			238.3			209.1			174.4			489.9			412.7
Funded status	$	5.0		$	(20.5	)	$	(48.5	)	$	(48.6	)	$	(43.5	)	$	(69.1	)
Included in the 2017 and 2016 funded status is accrued benefit cost of approximately $17.7 million and $16.8 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations.
Noncurrent asset	$	22.6		$	—		$	0.2		$	0.3		$	22.8		$	0.3
Current liability	(0.8		)	(0.9		)	—			—			(0.8		)	(0.9		)
Noncurrent liability	(16.8		)	(19.6		)	(48.7		)	(48.9		)	(65.5		)	(68.5		)
Funded status	$	5.0		$	(20.5	)	$	(48.5	)	$	(48.6	)	$	(43.5	)	$	(69.1	)
Weighted-average assumptions used for measurement of the projected benefit obligation:
Discount rate	3.78		%	4.36		%	2.70		%	2.99		%	3.26		%	3.73		%
Salary growth rate	3.76		%	4.63		%	3.04		%	3.01		%	3.36		%	3.73		%

The following represents the funded components of net periodic pension cost as reflected in the Company's Consolidated Statements of Income and the weighted-average assumptions used to measure net periodic pension cost for the years ended December 29, 2017, December 30, 2016 and January 1, 2016:



	Pension Benefits
	Domestic Plans									Foreign Plans									Total
(In millions)	2017			2016			2015			2017			2016			2015			2017			2016			2015
Components of net periodic pension cost:
Service cost	$	4.7		$	4.7		$	5.2		$	5.9		$	5.9		$	6.6		$	10.6		$	10.6		$	11.8
Interest cost	11.1			11.5			11.6			6.9			7.8			9.1			18.0			19.3			20.7
Expected return on plan assets	(14.9		)	(14.2		)	(15.1		)	(8.8		)	(9.4		)	(10.5		)	(23.7		)	(23.6		)	(25.6		)
Net amortization	2.5			2.4			1.3			3.0			2.5			2.9			5.5			4.9			4.2
Settlement charge	—			—			—			—			9.6			—			—			9.6			—
Net periodic pension cost	$	3.4		$	4.4		$	3.0		$	7.0		$	16.4		$	8.1		$	10.4		$	20.8		$	11.1



Weighted-average assumption used to measure net periodic pension cost:
Discount rate	4.36	%	4.65	%	4.14	%	2.99	%	3.35	%	3.44	%	3.73	%	3.98	%	3.79	%
Expected return on plan assets	6.25	%	6.50	%	6.50	%	4.79	%	4.54	%	4.77	%	5.59	%	5.50	%	5.63	%
Salary growth rate	4.63	%	4.60	%	4.60	%	3.01	%	3.08	%	3.12	%	3.73	%	3.75	%	3.79	%

In connection with the disposition of the Fasteners business, the Company recognized a pension curtailment gain of $5.1 million related to the Anixter pension plan in the U.S. and special termination benefit costs of $0.3 million in 2015 in discontinued operations.

Fair Value Measurements

The following presents information about the Plan’s assets measured at fair value on a recurring basis at the end of fiscal 2017, and the valuation techniques used by the Plan to determine those fair values. The inputs used in the determination of these fair values are categorized according to the fair value hierarchy as being Level 1, Level 2 or Level 3.

In general, fair values determined by Level 1 inputs use quoted prices in active markets for identical assets that the Plan has the ability to access. The majority of pension assets valued by Level 1 inputs are primarily comprised of Domestic equity which are traded actively on public exchanges and valued at quoted prices at the end of the fiscal year.

Fair values determined by Level 2 inputs use other inputs that are observable, either directly or indirectly. These Level 2 inputs include quoted prices for similar assets in active markets, and other inputs such as interest rates and yield curves that are observable at commonly quoted intervals. The majority of pension assets valued by Level 2 inputs are comprised of common/collective/pool funds (i.e., mutual funds). These assets are valued at their net asset values and considered observable inputs, or Level 2.

Level 3 inputs are unobservable inputs, including inputs that are available in situations where there is little, if any, market activity for the related asset. The only pension assets valued by Level 3 inputs relate to the buy-in policy in connection with the Fasteners disposition.

In instances where inputs used to measure fair value fall into different levels in the above fair value hierarchy, fair value measurements in their entirety are categorized based on the lowest level input that is significant to the valuation. The Plan’s assessment of the significance of particular inputs to these fair value measurements requires judgment and considers factors specific to each asset.

Disclosures concerning assets measured at fair value on a recurring basis at December 29, 2017 and December 30, 2016, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by the Company are as follows:



	As of December 29, 2017
	Domestic Plans								Foreign Plans								Total
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Asset Categories:
Cash and short-term investments	$	8.1	$	—	$	—	$	8.1	$	0.3	$	0.3	$	—	$	0.6	$	8.4	$	0.3	$	—	$	8.7
Equity securities:
Domestic	145.6		—		—		145.6		—		51.1		—		51.1		145.6		51.1		—		196.7
International ^(a)	33.2		—		—		33.2		—		78.2		—		78.2		33.2		78.2		—		111.4
Fixed income securities:
Domestic	0.4		4.0		—		4.4		—		48.0		—		48.0		0.4		52.0		—		52.4
Corporate bonds	—		89.5		—		89.5		—		11.8		—		11.8		—		101.3		—		101.3
Insurance funds	—		—		—		—		—		19.1		—		19.1		—		19.1		—		19.1
Other	—		—		—		—		—		0.3		—		0.3		—		0.3		—		0.3
Total at December 29, 2017	$	187.3	$	93.5	$	—	$	280.8	$	0.3	$	208.8	$	—	$	209.1	$	187.6	$	302.3	$	—	$	489.9


(a)	Investment in funds outside the country where the pension plan originates is considered International.



	As of December 30, 2016
	Domestic Plans								Foreign Plans								Total
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Asset Categories:
Cash and short-term investments	$	7.5	$	—	$	—	$	7.5	$	0.6	$	—	$	—	$	0.6	$	8.1	$	—	$	—	$	8.1
Equity securities:
Domestic	123.5		—		—		123.5		—		43.2		—		43.2		123.5		43.2		—		166.7
International ^(a)	23.7		—		—		23.7		—		63.5		—		63.5		23.7		63.5		—		87.2
Fixed income securities:
Domestic	—		5.1		—		5.1		—		41.3		—		41.3		—		46.4		—		46.4
Corporate bonds	—		78.5		—		78.5		—		9.6		—		9.6		—		88.1		—		88.1
Insurance funds	—		—		—		—		—		16.0		—		16.0		—		16.0		—		16.0
Other	—		—		—		—		—		0.2		—		0.2		—		0.2		—		0.2
Total at December 30, 2016	$	154.7	$	83.6	$	—	$	238.3	$	0.6	$	173.8	$	—	$	174.4	$	155.3	$	257.4	$	—	$	412.7


(a)	Investment in funds outside the country where the pension plan originates is considered International.

Anixter had no level 3 assets in 2017. Changes in Anixter's Level 3 plan assets, which are included in operations, for the years ended December 30, 2016 and January 1, 2016 included:



(In millions)	January 1, 2016 Balance		Net purchases, Issuances and Settlements			December 30, 2016 Balance
Asset Categories:
Insurance funds	$	58.9	$	(58.9	)	$	—
Total Level 3 investments	$	58.9	$	(58.9	)	$	—

The Company estimated future benefits payments are as follows at the end of 2017:



	Estimated Future Benefit Payments
(In millions)	Domestic		Foreign		Total
2018	$	8.7	$	3.7	$	12.4
2019	9.7		3.9		13.6
2020	10.7		3.9		14.6
2021	11.5		4.1		15.6
2022	12.3		5.5		17.8
2023-2027	106.6		29.0		135.6
Total	$	159.5	$	50.1	$	209.6

The accumulated benefit obligation in 2017 and 2016 was $273.1 million and $256.4 million, respectively, for the Domestic Plans and $225.5 million and $192.9 million, respectively, for the Foreign Plans. The Company had 9 plans in 2017 and 10 plans in 2016 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 $170.1 million and $390.2 million for 2017 and 2016, respectively, and aggregate fair value of plan assets was $129.2 million and $347.1 million for 2017 and 2016, respectively.

The Company currently estimates that it will make contributions of approximately $8.0 million to its Foreign Plans in 2018. In addition, the Company estimates that it will make $0.8 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 2018 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 from continuing operations related to defined contribution plans was $13.3 million, $12.2 million and $9.3 million in 2017, 2016 and 2015, respectively.

Deferred Compensation Plan

A non-qualified deferred compensation plan was implemented on January 1, 1995. The plan permits selected employees to make pre-tax deferrals of salary and bonus. Interest is accrued monthly on the deferred compensation balances based on the average ten-year Treasury note rate for the previous three months times a factor of 1.4, and the rate is further adjusted if certain financial goals are achieved. The plan provides for benefit payments upon retirement, death, disability, termination or other scheduled dates determined by the participant. At December 29, 2017, the deferred compensation liability included in "Accrued expenses" and "Other liabilities" on the Consolidated Balance Sheet was $3.8 million and $41.1 million, respectively. At December 30, 2016, the deferred compensation liability included in "Accrued expenses" and "Other liabilities" on the Consolidated Balance Sheet was $4.9 million and $40.7 million, respectively.

Concurrent with the implementation of the deferred compensation plan, the Company purchased variable, separate account life insurance policies on the plan participants with benefits accruing to Anixter. To provide for the liabilities associated with the deferred compensation plan and an executive non-qualified defined benefit plan, fixed general account "increasing whole life" insurance policies were purchased on the lives of certain participants. Prior to 2006, the Company paid annual premiums on the above company-owned policies. The last premium was paid in 2005. Policy proceeds are payable to Anixter upon the insured participant’s death. At December 29, 2017 and December 30, 2016, the cash surrender value of $38.3 million and $35.9 million, respectively, was recorded under this program and reflected in "Other assets" on the Consolidated Balance Sheets.