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PENSION PLANS
 12 Months Ended
Dec. 28, 2018
Text Block [Abstract]  
PENSION PLANS
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 2018, the Company reviewed rates of return on relevant market indices and concluded the Willis Towers Watson Global Rate Link Model was more consistent with observable market conditions and industry standards for developing spot rate curves. At the end of 2017 and 2016, the Company used the Ryan ALM Above Median yield curves. These rates are adjusted to match the duration of the liabilities associated with the pension plans.

At December 28, 2018 and December 29, 2017, the Company determined the consolidated weighted-average discount rate of all plans to be 3.59% and 3.26%, 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 gains and foreign currency exchange rate changes, the PBO decreased to $504.1 million at the end of fiscal 2018 from $533.4 million at the end of fiscal 2017. The consolidated net unfunded status was $55.2 million at the end of fiscal 2018 compared to $43.5 million at the end of 2017.

A significant element in determining net periodic benefit cost in accordance with U.S. GAAP is the expected return on plan assets. For 2018, the Company had assumed that the weighted-average expected long-term rate of return on plan assets would be 5.63%. This expected return on plan assets is included in the net periodic benefit cost for the fiscal year ended 2018. As a result of the combined effect of valuation changes in both the equity and bond markets, the plan assets produced an actual loss of approximately 4.2% in 2018 and an actual gain of approximately 13.3% in 2017. The fair value of plan assets is $448.9 million at the end of fiscal 2018, compared to $489.9 million at the end of fiscal 2017. 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 plan was frozen to entrants first hired or rehired on or after July 1, 2015. Anixter Inc. makes 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.
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 1st in the Domestic Plan and is based on the 10-year Treasury note rate as of the last business day of December.
In 2018 and 2017, the Society of Actuaries released new mortality improvement projection scales. As a result, the Company updated U.S. mortality improvement assumptions in 2018 and 2017 for purposes of determining its mortality assumption used in the U.S. defined benefit plans' liability calculation. In 2018, the Company also adjusted the long term mortality improvement projection assumption to 80% of the Society of Actuaries’ mortality improvement scale to reflect the Company’s long-term expectations. The updated U.S. mortality assumptions resulted in a decrease of $2.8 million and $1.6 million to the benefit obligation as of the end of 2018 and 2017, 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 28, 2018 and December 29, 2017 and the asset allocation guidelines for such plans are summarized as follows.
 
 
Domestic Plans
 
 
December 28, 2018
 
Allocation Guidelines
 
 
 
Min
 
Target
 
Max
Global equities
 
40.1
%
 
37
%
 
46
%
 
66
%
Debt securities:
 
 
 
 
 
 
 
 
     Domestic treasuries
 
15.6

 
—

 
12

 
34

     Corporate bonds
 
16.3

 
—

 
17

 
34

     Other
 
14.5

 
9

 
14

 
19

Total debt securities
 
46.4


9


43


87

Property/real estate
 
12.6

 
—

 
10

 
19

Other
 
0.9

 
—

 
1

 
5

 
 
100.0
%
 
 
 
100
%
 
 
 
 
Domestic Plans
 
 
December 29, 2017
 
Allocation Guidelines
 
 
 
Min
 
Target
 
Max
Domestic equities
 
51.9
%
 
37
%
 
52
%
 
67
%
International equities
 
11.8

 
5

 
10

 
15

Total equity securities
 
63.7

 
 
 
62

 
 
Debt securities
 
33.4

 
31

 
38

 
45

Other
 
2.9

 
—

 
—

 
10

 
 
100.0
%
 
 
 
100
%
 
 
 
 
Foreign Plans
 
 
December 28,
2018
 
December 29,
2017
 
Allocation        
 
 
Guidelines
 
 
Target
Equity securities
 
60
%
 
62
%
 
60
%
Debt securities
 
30

 
29

 
30

Other investments
 
10

 
9

 
10

 
 
100
%
 
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 2018, the U.S. investment policy guidelines were as follows:
 
•
Each asset class is managed by one or more active and passive investment managers
•
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
•
Derivative instruments such as futures, swaps and options may be used on a limited basis.  For funds that employ derivatives, the loss of invested capital to the Trust should be limited to the amount invested in the fund.
•
The equity portfolio is diversified by sector and geography.
•
The real assets portfolio is invested Real Estate Investment Trusts ("REITs") and private real estate.
•
The fixed income is invested in U.S. Treasuries, investment grade corporate debt (denominated in U.S. dollars), and other credit investments including below investment grade rated bonds and loans, securitized credit, and emerging market debt.

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 2018 is 5.63%.
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 28,
2018
 
December 29,
2017
Changes to Balance:
 
 
 
 
Beginning balance
 
$
112.2

 
$
119.2

Recognized prior service cost
 
4.0

 
4.0

Recognized net actuarial gain
 
(7.5
)
 
(9.6
)
Prior service cost arising in current year
 
0.4

 
4.2

Net actuarial loss (gain) arising in current year
 
21.8

 
(5.6
)
Other
 
(4.2
)
 
—

Ending balance
 
$
126.7

 
$
112.2


Components of Balance:
 
 
 
 
Prior service credit
 
$
(12.8
)
 
$
(17.3
)
Net actuarial loss
 
139.5

 
129.5

 
 
$
126.7

 
$
112.2


Amounts in "Accumulated other comprehensive loss" expected to be recognized as components of net period pension cost in 2019 are as follows:
(In millions)
 
Amortization of prior service credit
$
(3.8
)
Amortization of actuarial loss
8.3

Total amortization expected
$
4.5



The following represents a reconciliation of the funded status of the Company's pension plans for fiscal years 2018 and 2017:
 
 
Pension Benefits
 
 
Domestic Plans
 
Foreign Plans
 
Total
(In millions)
 
2018
 
2017
 
2018
 
2017
 
2018
 
2017
Change in projected benefit obligation:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
275.8

 
$
258.8

 
$
257.6

 
$
223.0

 
$
533.4

 
$
481.8

Service cost
 
3.5

 
3.3

 
5.9

 
5.9

 
9.4

 
9.2

Interest cost
 
10.3

 
11.1

 
6.8

 
6.9

 
17.1

 
18.0

Actuarial (gain) loss
 
(19.9
)
 
22.4

 
(4.0
)
 
8.6

 
(23.9
)
 
31.0

Benefits paid from plan assets
 
(7.4
)
 
(7.5
)
 
(8.1
)
 
(6.7
)
 
(15.5
)
 
(14.2
)
Benefits paid from Company assets
 
(0.8
)
 
(1.0
)
 
—

 
—

 
(0.8
)
 
(1.0
)
Plan amendment
 
—

 
—

 
0.5

 
—

 
0.5

 
—

Settlement
 
—

 
—

 
(0.5
)
 
—

 
(0.5
)
 
—

Plan participants contributions
 
—

 
—

 
0.1

 
0.1

 
0.1

 
0.1

Foreign currency exchange rate changes
 
—

 
—

 
(15.7
)
 
21.2

 
(15.7
)
 
21.2

Impact due to annuity purchase
 
—

 
(11.3
)
 
—

 
(1.4
)
 
—

 
(12.7
)
Ending balance
 
$
261.5

 
$
275.8

 
$
242.6

 
$
257.6

 
$
504.1

 
$
533.4

Change in plan assets at fair value:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
280.8

 
$
238.3

 
$
209.1

 
$
174.4

 
$
489.9

 
$
412.7

Actual return on plan assets
 
(13.0
)
 
41.0

 
(6.9
)
 
18.9

 
(19.9
)
 
59.9

Company contributions to plan assets
 
—

 
20.3

 
7.4

 
7.1

 
7.4

 
27.4

Benefits paid from plan assets
 
(7.4
)
 
(7.5
)
 
(8.1
)
 
(6.7
)
 
(15.5
)
 
(14.2
)
Settlement
 
—

 
—

 
(0.5
)
 
—

 
(0.5
)
 
—

Plan participants contributions
 
—

 
—

 
0.1

 
0.1

 
0.1

 
0.1

Purchase of annuity
 
—

 
(11.3
)
 
—

 
(1.4
)
 
—

 
(12.7
)
Foreign currency exchange rate changes
 
—

 
—

 
(12.6
)
 
16.7

 
(12.6
)
 
16.7

Ending balance
 
$
260.4

 
$
280.8

 
$
188.5

 
$
209.1

 
$
448.9

 
$
489.9

Reconciliation of funded status:
 
 
 
 
 
 
 
 
 
 
 
 
Projected benefit obligation
 
$
(261.5
)
 
$
(275.8
)
 
$
(242.6
)
 
$
(257.6
)
 
$
(504.1
)
 
$
(533.4
)
Plan assets at fair value
 
260.4

 
280.8

 
188.5

 
209.1

 
448.9

 
489.9

Funded status
 
$
(1.1
)
 
$
5.0

 
$
(54.1
)
 
$
(48.5
)
 
$
(55.2
)
 
$
(43.5
)
Included in the 2018 and 2017 funded status is accrued benefit cost of approximately $16.5 million and $17.7 million, respectively, related to two non-qualified plans, which cannot be funded pursuant to tax regulations.
Noncurrent asset
 
$
15.4

 
$
22.6

 
$
0.2

 
$
0.2

 
$
15.6

 
$
22.8

Current liability
 
(1.2
)
 
(0.8
)
 
—

 
—

 
(1.2
)
 
(0.8
)
Noncurrent liability
 
(15.3
)
 
(16.8
)
 
(54.3
)
 
(48.7
)
 
(69.6
)
 
(65.5
)
Funded status
 
$
(1.1
)
 
$
5.0

 
$
(54.1
)
 
$
(48.5
)
 
$
(55.2
)
 
$
(43.5
)
Weighted-average assumptions used for measurement of the projected benefit obligation:
 
 
 
 
Discount rate
 
4.28
%
 
3.78
%
 
2.84
%
 
2.70
%
 
3.59
%
 
3.26
%
Salary growth rate
 
3.75
%
 
3.76
%
 
3.26
%
 
3.04
%
 
3.51
%
 
3.36
%


The following represents the funded components of net periodic pension (benefit) 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 28, 2018, December 29, 2017 and December 30, 2016:
 
 
Pension Benefits
 
 
Domestic Plans
 
Foreign Plans
 
Total
(In millions)
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
 
2018
 
2017
 
2016
Recorded in operating expenses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Service cost
 
$
3.5

 
$
4.7

 
$
4.7

 
$
5.9

 
$
5.9

 
$
5.9

 
$
9.4

 
$
10.6

 
$
10.6

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded in other, net:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest cost
 
10.3

 
11.1

 
11.5

 
6.8

 
6.9

 
7.8

 
17.1

 
18.0

 
19.3

Expected return on plan assets
 
(16.0
)
 
(14.9
)
 
(14.2
)
 
(9.8
)
 
(8.8
)
 
(9.4
)
 
(25.8
)
 
(23.7
)
 
(23.6
)
Net amortization
 
0.6

 
2.5

 
2.4

 
2.9

 
3.0

 
2.5

 
3.5

 
5.5

 
4.9

Settlement charge
 
—

 
—

 
—

 
0.1

 
—

 
9.6

 
0.1

 
—

 
9.6

Total recorded in other, net
 
$
(5.1
)
 
(1.3
)
 
(0.3
)
 
—

 
1.1

 
10.5

 
(5.1
)
 
(0.2
)
 
10.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total net periodic pension (benefit) cost
 
$
(1.6
)
 
$
3.4

 
$
4.4

 
$
5.9

 
$
7.0

 
$
16.4

 
$
4.3

 
$
10.4

 
$
20.8


Weighted-average assumption used to measure net periodic pension (benefit) cost:
 
 
 
 
 
 
 
 
Discount rate
 
3.78
%
 
4.36
%
 
4.65
%
 
2.70
%
 
2.99
%
 
3.35
%
 
3.26
%
 
3.73
%
 
3.98
%
Expected return on plan assets
 
6.25
%
 
6.25
%
 
6.50
%
 
4.81
%
 
4.79
%
 
4.54
%
 
5.63
%
 
5.59
%
 
5.50
%
Salary growth rate
 
3.76
%
 
4.63
%
 
4.60
%
 
3.04
%
 
3.01
%
 
3.08
%
 
3.36
%
 
3.73
%
 
3.75
%

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 2018, 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 comprised of cash and cash equivalents.
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 property and real estate funds.
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 28, 2018 and December 29, 2017, which have been categorized under the fair value hierarchy for the Domestic and Foreign Plans by the Company are as follows:
 
As of December 28, 2018
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Equity securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
44.1

 
$
—

 
$
44.1

 
$
—

 
$
44.1

 
$
—

 
$
44.1

International (a)
—

 
—

 
—

 
—

 
—

 
68.2

 
—

 
68.2

 
—

 
68.2

 
—

 
68.2

      Global
—

 
104.3

 
—

 
104.3

 
—

 
—

 
—

 
—

 
—

 
104.3

 
—

 
104.3

Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


 


 


 


Domestic treasuries
—

 
40.5

 
—

 
40.5

 
—

 
44.2

 
—

 
44.2

 
—

 
84.7

 
—

 
84.7

Corporate bonds
—

 
42.4

 
—

 
42.4

 
—

 
12.3

 
—

 
12.3

 
—

 
54.7

 
—

 
54.7

      Other
—

 
38.0

 
—

 
38.0

 
—

 
—

 
—

 
—

 
—

 
38.0

 
—

 
38.0

Property/real estate
—

 
—

 
32.7

 
32.7

 
—

 
0.3

 
—

 
0.3

 
—

 
0.3

 
32.7

 
33.0

Insurance products
—

 
—

 
—

 
—

 
—

 
18.6

 
—

 
18.6

 
—

 
18.6

 
—

 
18.6

Other
2.5

 
—

 
—

 
2.5

 
0.8

 
—

 
—

 
0.8

 
3.3

 
—

 
—

 
3.3

Total at December 28, 2018
$
2.5

 
$
225.2

 
$
32.7

 
$
260.4

 
$
0.8

 
$
187.7

 
$
—

 
$
188.5

 
$
3.3

 
$
412.9

 
$
32.7

 
$
448.9

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

Debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic treasuries
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 products
—

 
—

 
—

 
—

 
—

 
19.1

 
—

 
19.1

 
—

 
19.1

 
—

 
19.1

Other
8.1

 
—

 
—

 
8.1

 
0.3

 
0.6

 
—

 
0.9

 
8.4

 
0.6

 
—

 
9.0

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.

Changes in Anixter's Level 3 plan assets, which are included in operations, for the year ended December 28, 2018 included:
(In millions)
December 29, 2017 Balance
 
Purchases, sales and settlements
 
December 28, 2018 Balance
Asset Categories:
 
 
 
 
 
Property/real estate
$
—

 
$
32.7

 
$
32.7

Total Level 3 investments
$
—

 
$
32.7

 
$
32.7


The Company estimated future benefits payments are as follows at the end of 2018:
 
 
Estimated Future Benefit Payments
(In millions)
 
Domestic
 
Foreign
 
Total
2019
 
$
10.3

 
$
5.2

 
$
15.5

2020
 
11.0

 
5.5

 
16.5

2021
 
11.9

 
5.6

 
17.5

2022
 
12.7

 
7.7

 
20.4

2023
 
13.5

 
6.7

 
20.2

2024-2028
 
78.4

 
53.5

 
131.9

Total
 
$
137.8

 
$
84.2

 
$
222.0


The accumulated benefit obligation in 2018 and 2017 was $258.2 million and $273.1 million, respectively, for the Domestic Plans and $212.6 million and $225.5 million, respectively, for the Foreign Plans. The Company had 10 plans in 2018 and 9 plans in 2017 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 $220.3 million and $170.1 million for 2018 and 2017, respectively, and aggregate fair value of plan assets was $179.0 million and $129.2 million for 2018 and 2017, respectively.
The Company currently estimates that it will make contributions of approximately $6.8 million to its Foreign Plans in 2019. In addition, the Company estimates that it will make $1.2 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 2019 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 $13.8 million, $13.3 million and $12.2 million in 2018, 2017 and 2016, 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 28, 2018, the deferred compensation liability included in "Accrued expenses" and "Other liabilities" on the Consolidated Balance Sheet was $3.4 million and $42.0 million, respectively. 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.
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 28, 2018 and December 29, 2017, the cash surrender value of $37.0 million and $38.3 million, respectively, was recorded under this program and reflected in "Other assets" on the Consolidated Balance Sheets.