BUSINESS SEGMENTS

Anixter is a leading distributor of enterprise cabling and security solutions, electrical and electronic wire and cable solutions and utility power solutions. The Company has identified Network & Security Solutions ("NSS"), Electrical & Electronic Solutions ("EES") and Utility Power Solutions ("UPS") as reportable segments.

Corporate expenses are incurred to obtain and coordinate financing, tax, information technology, legal and other related services, certain of which were rebilled to subsidiaries. These corporate expenses were historically allocated to business segments based primarily on projected sales and estimated use of time. A portion of these corporate expenses were reported in corporate as they historically had been allocated to the Fasteners segment but were not considered directly related to the discontinued operations. Beginning in the first quarter of 2016, the Company no longer allocates corporate expenses to its business segments. 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, except as previously discussed in Note 2. "Discontinued Operations." Intercompany transactions are not significant. No customer accounted for more than 2% of sales in 2017.

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 2017, 2016 and 2015 are as follows:



(in millions)
2017	NSS		EES		UPS		Corporate (a)			Total
Net Sales	$	4,114.4	$	2,225.5	$	1,587.5	$	—		$	7,927.4
Operating income	262.6		114.3		73.1		(136.9		)	313.1
Depreciation	3.1		2.4		3.9		18.8			28.2
Amortization of intangible assets	14.4		8.4		13.3		—			36.1
Total assets	1,947.1		1,068.3		871.4		365.4			4,252.2
Capital expenditures	3.7		1.9		1.7		33.8			41.1



2016	NSS		EES		UPS		Corporate (a)			Total
Net Sales	$	4,083.8	$	2,103.2	$	1,435.8	$	—		$	7,622.8
Operating income	275.8		97.5		56.7		(144.7		)	285.3
Depreciation	3.2		2.7		4.2		17.8			27.9
Amortization of intangible assets	14.1		8.5		15.0		—			37.6
Total assets	1,974.0		983.6		821.9		313.9			4,093.4
Capital expenditures	3.4		2.9		2.5		23.8			32.6



2015 (As revised)	NSS		EES (b)		UPS (b)		Corporate (a)			Total
Net Sales	$	3,968.2	$	1,816.5	$	405.8	$	—		$	6,190.5
Operating income	258.2		121.1		22.4		(133.9		)	267.8
Depreciation	3.6		1.4		1.2		16.0			22.2
Amortization of intangible assets	14.7		6.3		3.9		—			24.9
Total assets	1,902.8		1,071.4		813.4		350.6			4,138.2
Capital expenditures	3.0		1.0		0.8		21.9			26.7


(a)	Corporate "Total assets" primarily consists of cash and cash equivalents, deferred tax assets, and corporate fixed assets.


(b)	At the beginning of the fourth quarter of 2015, the Company acquired Power Solutions which is reported in both the EES and UPS business segments. For further information, see Note 3. "Business Combinations".

Net sales and operating income included in the tables above in the Company's UPS segment were previously reported in its EES segment prior to the Power Solutions acquisition on October 5, 2015. Operating results were restated for the year ended January 1, 2016 due to change in composition of the Company's reportable segments in the first quarter of 2016.

The items impacting operating expense and operating income by segment in 2017, 2016 and 2015 are reflected in the tables below. All other items impacted consolidated results only and were not allocated to segments.



	Year Ended December 29, 2017
(In millions)	NSS			EES			UPS			Corporate			Total
Amortization of intangible assets	$	(14.4	)	$	(8.4	)	$	(13.3	)	$	—		$	(36.1	)
Restructuring charge	—			0.5			(0.1		)	(0.4		)	—
Acquisition and integration costs	—			—			—			(2.3		)	(2.3		)
Impairment of intangible assets	(5.7		)	—			—			—			(5.7		)
Total of items impacting operating expense and operating income	$	(20.1	)	$	(7.9	)	$	(13.4	)	$	(2.7	)	$	(44.1	)



	Year Ended December 30, 2016
(In millions)	NSS			EES			UPS			Corporate			Total
Amortization of intangible assets	$	(14.1	)	$	(8.5	)	$	(15.0	)	$	—		$	(37.6	)
UK pension settlement	—			—			—			(9.6		)	(9.6		)
Restructuring charge	(1.7		)	(1.3		)	(2.1		)	(0.3		)	(5.4		)
Acquisition and integration costs	—			—			(0.3		)	(4.8		)	(5.1		)
Latin America bad debt provision	(3.9		)	(3.7		)	—			—			(7.6		)
Total of items impacting operating expense and operating income	$	(19.7	)	$	(13.5	)	$	(17.4	)	$	(14.7	)	$	(65.3	)



	Year Ended January 1, 2016
(In millions)	NSS			EES			UPS			Corporate			Total
Amortization of intangible assets	$	(14.7	)	$	(6.3	)	$	(3.9	)	$	—		$	(24.9	)
UK pension settlement	—			—			—			(0.4		)	(0.4		)
Restructuring charge	(2.4		)	(3.2		)	(0.1		)	(2.5		)	(8.2		)
Acquisition and integration costs	—			—			(0.2		)	(13.0		)	(13.2		)
Write-off of capitalized software	—			—			—			(3.1		)	(3.1		)
Latin America bad debt provision	(10.7		)	(1.0		)	—			—			(11.7		)
Dilapidation provision	—			—			—			(1.7		)	(1.7		)
Total of items impacting operating expense and operating income	$	(27.8	)	$	(10.5	)	$	(4.2	)	$	(20.7	)	$	(63.2	)

Geographic Information

The Company attributes foreign sales based on the location of the customer purchasing the product. In North America (U.S. and Canada), sales in the U.S. were $5,771.5 million, $5,613.6 million and $4,137.9 million in 2017, 2016 and 2015, respectively. Canadian sales were $772.5 million, $771.0 million and $691.3 million in 2017, 2016 and 2015, respectively. No other individual foreign country’s net sales within EMEA (Europe, Middle East and Africa) or the Emerging Markets (Asia Pacific and Latin America) were material in 2017, 2016 and 2015. The Company's tangible long-lived assets primarily consist of $135.2 million of property and equipment in the U.S. No other individual foreign country’s tangible long-lived assets are material.

The following table summarizes net sales by geographic areas for the years ended December 29, 2017, December 30, 2016 and January 1, 2016:



	Years Ended
(In millions)	December 29, 2017				December 30, 2016				January 1, 2016
Sales	Net Sales		% of Total Net Sales		Net Sales		% of Total Net Sales		Net Sales		% of Total Net Sales
North America	$	6,544.0	82.5	%	$	6,384.6	83.8	%	$	4,829.2	78.0	%
EMEA	626.3		7.9	%	570.1		7.4	%	601.9		9.7	%
Emerging Markets	757.1		9.6	%	668.1		8.8	%	759.4		12.3	%
Net sales	$	7,927.4	100.0	%	$	7,622.8	100.0	%	$	6,190.5	100.0	%

The following table summarizes total assets and net property and equipment by geographic areas for the years ended December 29, 2017 and December 30, 2016:



(In millions)	December 29, 2017		December 30, 2016
Total assets
North America	$	3,468.3	$	3,376.8
EMEA	249.5		224.9
Emerging Markets	534.4		491.7
Total assets	$	4,252.2	$	4,093.4



(In millions)	December 29, 2017		December 30, 2016
Net property and equipment
North America	$	140.5	$	126.0
EMEA	7.2		8.1
Emerging Markets	6.6		6.2
Net property and equipment	$	154.3	$	140.3

Goodwill Assigned to Segments

The following table presents the changes in goodwill allocated to the Company's reporting units from January 1, 2016 to December 29, 2017:



(In millions)	NSS			EES			UPS		Total
Balance as of January 1, 2016	$	393.3		$	211.9		$	151.3	$	756.5
Acquisition related	(0.5		)	0.7			4.3		4.5
Reassignment of goodwill	11.2			(31.8		)	20.6		—
Foreign currency translation	1.0			0.2			2.4		3.6
Balance as of December 30, 2016	$	405.0		$	181.0		$	178.6	$	764.6
Foreign currency translation	3.8			0.7			9.0		13.5
Balance as of December 29, 2017	$	408.8		$	181.7		$	187.6	$	778.1