PENSION PLANS (Tables)

12 Months Ended

Dec. 29, 2017

Weighted Average Percentage Of Actual And Target Asset Allocation Table

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	%

Defined Benefit Plan Amounts Recognized in Other Comprehensive Income (Loss)

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

Accumulated Other Comprehensive Income (Loss) for Benefit Plans



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

Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year

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

Reconciliation of Net Funded Status of Pension Plans

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		%

Components of Net Periodic Benefit Costs

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 Assumptions Used to Measure Net Periodic Benefit Cost



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	%

Assets Measured at Fair Value on a Recurring Basis

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.

Change in Level 3 Assets Measured at Fair Value on a Recurring Basis

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	)	$	—

Estimated Future Benefit Payments

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