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. 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. Intercompany transactions are not significant. No customer accounted for more than 2% of sales in 2018.

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 2018, 2017 and 2016 are as follows:



(In millions)
2018	NSS		EES		UPS		Corporate (a)			Total
Net sales	$	4,347.0	$	2,342.7	$	1,710.5	$	—		$	8,400.2
Operating income (losses)	272.2		132.3		75.4		(170.2		)	309.7
Depreciation	3.8		2.4		3.6		21.9			31.7
Amortization of intangible assets	17.0		7.0		13.3		—			37.3
Total assets	2,319.3		1,097.4		905.5		330.9			4,653.1
Capital expenditures	8.7		2.0		6.7		25.0			42.4



2017	NSS		EES		UPS		Corporate (a)			Total
Net sales	$	4,114.4	$	2,225.5	$	1,587.5	$	—		$	7,927.4
Operating income (losses)	262.6		114.3		73.1		(137.1		)	312.9
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 (losses)	275.8		97.5		56.7		(134.5		)	295.5
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


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

The items impacting operating expense and operating income by segment in 2018, 2017 and 2016 are reflected in the tables below. All other items impacted consolidated results only and were not allocated to segments.



	Year Ended December 28, 2018
(In millions)	NSS			EES			UPS			Corporate			Total
Amortization of intangible assets	$	(17.0	)	$	(7.0	)	$	(13.3	)	$	—		$	(37.3	)
Restructuring charge	(2.1		)	(1.3		)	(0.7		)	(5.3		)	(9.4		)
Acquisition and integration costs	(2.6		)	—			—			(0.3		)	(2.9		)
CEO retirement agreement expense	—			—			—			(2.6		)	(2.6		)
U.K. facility relocation costs	(0.2		)	(0.8		)	—			—			(1.0		)
Total of items impacting operating expense and operating income	$	(21.9	)	$	(9.1	)	$	(14.0	)	$	(8.2	)	$	(53.2	)



	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	)
Restructuring charge	(1.7		)	(1.3		)	(2.1		)	(0.3		)	(5.4		)
Acquisition and integration costs	—			—			(0.3		)	(4.8		)	(5.1		)
UK pension settlement	—			—			—			(9.6		)	(9.6		)
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	)

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 $6,004.7 million, $5,771.5 million and $5,613.6 million in 2018, 2017 and 2016, respectively. Canadian sales were $837.4 million, $772.5 million and $771.0 million in 2018, 2017 and 2016 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 2018, 2017 and 2016. The Company's tangible long-lived assets primarily consist of $139.0 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 28, 2018, December 29, 2017 and December 30, 2016:



	Years Ended
(In millions)	December 28, 2018				December 29, 2017				December 30, 2016
Sales	Net Sales		% of Total Net Sales		Net Sales		% of Total Net Sales		Net Sales		% of Total Net Sales
North America	$	6,842.1	81.5	%	$	6,544.0	82.5	%	$	6,384.6	83.8	%
EMEA	660.3		7.8	%	626.3		7.9	%	570.1		7.4	%
Emerging Markets	897.8		10.7	%	757.1		9.6	%	668.1		8.8	%
Net sales	$	8,400.2	100.0	%	$	7,927.4	100.0	%	$	7,622.8	100.0	%

The following table summarizes total assets and net property and equipment by geographic areas for the years ended December 28, 2018 and December 29, 2017:



(In millions)	December 28, 2018		December 29, 2017
Total assets
North America	$	3,709.4	$	3,468.3
EMEA	302.2		249.5
Emerging Markets	641.5		534.4
Total assets	$	4,653.1	$	4,252.2



(In millions)	December 28, 2018		December 29, 2017
Net property and equipment
North America	$	144.2	$	140.5
EMEA	9.7		7.2
Emerging Markets	9.4		6.6
Net property and equipment	$	163.3	$	154.3

Goodwill Assigned to Segments

The following table presents the changes in goodwill allocated to the Company's reporting units from December 30, 2016 to December 28, 2018:



(In millions)	NSS			EES			UPS			Total
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
Acquisition related ^(a)	73.2			—			—			73.2
Foreign currency translation	(9.3		)	(0.8		)	(9.2		)	(19.3		)
Balance as of December 28, 2018	$	472.7		$	180.9		$	178.4		$	832.0

(a) In the second quarter of 2018, the Company completed the acquisition of security businesses in Australia and New Zealand for $150.1 million, including a preliminary net working capital adjustment of $4.6 million. The transaction was financed primarily from borrowings under the revolving lines of credit. The purchase price was preliminarily allocated to $32.6 million of working capital and $60.6 million of intangible assets. Acquisition costs were $2.6 million. The year ended 2018 results include approximately $71.9 million of sales from the acquired entities. The purchase price allocation is pending finalization, and is expected to be completed in early 2019.