10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

þ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the quarterly period ended July 1, 2011

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-10212

ANIXTER INTERNATIONAL INC.

(Exact name of registrant as specified in its charter)

Delaware	94-1658138
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

2301 Patriot Blvd.
Glenview, Illinois 60026
(224) 521-8000
(Address and telephone number of principal executive offices)

     Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

     Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

     Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one)

     

Large Accelerated Filer þ Accelerated Filer o 
Non-Accelerated Filer o
(Do not check if a smaller reporting company) Smaller Reporting Company o

     Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

     At July 28, 2011, 34,893,681 shares of the registrant’s Common Stock, $1.00 par value, were outstanding.

ANIXTER INTERNATIONAL INC.

TABLE OF CONTENTS

		Page
	PART I. FINANCIAL INFORMATION
Item 1.	Condensed Consolidated Financial Statements		1
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		15
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		27
Item 4.	Controls and Procedures		27
	PART II. OTHER INFORMATION
Item 1.	Legal Proceedings		28
Item 1A.	Risk Factors		28
Item 6.	Exhibits		29
EX-10.1
EX-31.1
EX-31.2
EX-32.1
EX-32.2
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

This report may contain various “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements can be identified by the use of forward-looking terminology such as “believe,” “expects,” “intends,” “anticipates,” “contemplates,” “estimates,” “plans,” “projects,” “should,” “may,” “will” or the negative thereof or other variations thereon or comparable terminology indicating the Company’s expectations or beliefs concerning future events. The Company cautions that such statements are qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements, a number of which are identified in this report. Other factors could also cause actual results to differ materially from expected results included in these statements. These factors include changes in supplier or customer relationships, technology changes, economic and currency risks, new or changed competitors, risks associated with inventory, commodity price fluctuations, risks associated with the integration of recently acquired companies and the impact of regulation and regulatory, investigative and legal proceedings and legal compliance risks.

i

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS.

ANIXTER INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended						Six Months Ended
(In millions, except per share amounts)	July 1, 2011			July 2, 2010			July 1, 2011			July 2, 2010
Net sales	$	1,612.8		$	1,367.2		$	3,130.3		$	2,639.8
Cost of goods sold		1,239.5			1,054.2			2,404.3			2,037.1
Gross profit		373.3			313.0			726.0			602.7
Operating expenses		275.5			242.9			545.1			475.6
Operating income		97.8			70.1			180.9			127.1
Other (expense) income:
Interest expense		(12.8	)		(13.2	)		(25.6	)		(28.8	)
Net (loss) gain on retirement of debt		(0.1	)		0.8			—			(29.7	)
Other, net		(1.6	)		—			(1.1	)		(1.1	)
Income before income taxes		83.3			57.7			154.2			67.5
Income tax expense		31.2			23.1			57.8			27.0
Net income	$	52.1		$	34.6		$	96.4		$	40.5
Net income per share:
Basic	$	1.50		$	1.02		$	2.78		$	1.19
Diluted	$	1.43		$	0.98		$	2.66		$	1.14

See accompanying notes to the condensed consolidated financial statements.

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ANIXTER INTERNATIONAL INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

	July 1,			December 31,
	2011			2010
(In millions, except share amounts)	(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	98.7		$	78.4
Accounts receivable, net (Includes $517.9 at July 1, 2011 and $407.8 at December 31, 2010 associated with securitization facility)		1,220.3			1,099.3
Inventories		1,143.7			1,002.7
Deferred income taxes		58.3			50.3
Other current assets		38.0			50.5
Total current assets		2,559.0			2,281.2
Property and equipment, at cost		306.0			288.9
Accumulated depreciation		(216.6	)		(204.3	)
Net property and equipment		89.4			84.6
Goodwill		375.9			374.3
Other assets		182.1			193.2
	$	3,206.4		$	2,933.3
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	742.2		$	648.7
Accrued expenses		235.9			218.9
Short-term debt (Includes $200.0 at December 31, 2010 associated with securitization facility)		7.1			203.6
Total current liabilities		985.2			1,071.2
Long-term debt (Includes $245.0 at July 1, 2011 associated with securitization facility)		957.1			688.8
Other liabilities		135.7			162.5
Total liabilities		2,078.0			1,922.5
Stockholders’ equity:
Common stock — $1.00 par value, 100,000,000 shares authorized, 34,912,453 and 34,323,061 shares issued and outstanding in 2011 and 2010, respectively		34.9			34.3
Capital surplus		225.2			230.1
Retained earnings		870.7			774.2
Accumulated other comprehensive income (loss):
Foreign currency translation		39.1			16.8
Unrecognized pension liability		(41.6	)		(43.9	)
Unrealized gain (loss) on derivatives, net		0.1			(0.7	)
Total accumulated other comprehensive loss		(2.4	)		(27.8	)
Total stockholders’ equity		1,128.4			1,010.8
	$	3,206.4		$	2,933.3

See accompanying notes to the condensed consolidated financial statements.

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ANIXTER INTERNATIONAL INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

	Six Months Ended
	July 1,			July 2,
	2011			2010
	(In millions)
Operating activities:
Net income	$	96.4		$	40.5
Adjustments to reconcile net income to net cash provided by operating activities:
Net loss on retirement of debt		—			29.7
Depreciation		11.2			11.2
Accretion of debt discount		8.7			9.7
Deferred income taxes		6.0			6.2
Amortization of intangible assets		5.9			5.8
Stock-based compensation		5.2			8.3
Amortization of deferred financing costs		1.2			1.5
Excess income tax benefit from employee stock plans		(5.8	)		(1.4	)
Changes in current assets and liabilities, net		(111.8	)		5.6
Other, net		(4.2	)		(5.8	)
Net cash provided by operating activities		12.8			111.3
Investing activities:
Capital expenditures, net		(14.5	)		(10.1	)
Net cash used in investing activities		(14.5	)		(10.1	)
Financing activities:
Proceeds from borrowings		620.5			370.8
Repayment of borrowings		(528.9	)		(275.3	)
Retirement of Convertible Notes due 2033 — debt component		(37.3	)		(27.8	)
Retirement of Convertible Notes due 2033 — equity component		(44.9	)		(13.1	)
Deferred financing costs		(4.1	)		—
Payment of cash dividend		(0.8	)		—
Proceeds from stock options exercised		11.7			2.5
Excess income tax benefit from employee stock plans		5.8			1.4
Retirement of Notes due 2014		—			(150.8	)
Purchases of common stock for treasury		—			(41.2	)
Net cash provided by (used in) financing activities		22.0			(133.5	)
Increase (decrease) in cash and cash equivalents		20.3			(32.3	)
Cash and cash equivalents at beginning of period		78.4			111.5
Cash and cash equivalents at end of period	$	98.7		$	79.2

See accompanying notes to the condensed consolidated financial statements.

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Basis of presentation: The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in Anixter International Inc.’s (“the Company”) Annual Report on Form 10-K for the year ended December 31, 2010. The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the condensed consolidated financial statements for the periods shown. Certain amounts have been reclassified to conform to the current year presentation. The results of operations of any interim period are not necessarily indicative of the results that may be expected for a full fiscal year.

     Accounts receivable are net of allowances for doubtful accounts of $23.6 million and $25.0 million as of July 1, 2011 and December 31, 2010, respectively.

     Recently issued accounting pronouncements not yet adopted: In May 2011, the Financial Accounting Standards Board (“FASB”) issued guidance to amend the requirements related to fair value measurement which changes the wording used to describe many requirements in Generally Accepted Accounting Principles (“GAAP”) for measuring fair value and for disclosing information about fair value measurements. Additionally, the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2011, and is applied prospectively. Adoption of this guidance at the beginning of fiscal 2012 is not expected to have a material impact on the Company’s consolidated financial statements.

     In June 2011, the FASB issued an update to Accounting Standards Codification (ASC) No. 220, “Presentation of Comprehensive Income,” which eliminates the option to present other comprehensive income and its components in the statement of stockholders’ equity. The Company can elect to present the items of net income and other comprehensive income in a single continuous statement of comprehensive income or in two separate, but consecutive statements. Under either method, the statement would need to be presented with equal prominence as the other primary financial statements. The amended guidance, which must be applied retrospectively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with earlier adoption permitted.

NOTE 2. COMPREHENSIVE INCOME

     Comprehensive income, net of tax, consisted of the following:

	Three Months Ended					Six Months Ended
	July 1,		July 2,			July 1,		July 2,
(In millions)	2011		2010			2011		2010
Net income	$	52.1	$	34.6		$	96.4	$	40.5
Foreign currency translation		5.5		(20.0	)		22.3		(13.0	)
Changes in unrealized pension cost		0.8		1.0			2.3		3.1
Changes in fair market value of derivatives		0.2		0.6			0.8		(0.3	)
Comprehensive income	$	58.6	$	16.2		$	121.8	$	30.3

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 3. INCOME PER SHARE

     The following table sets forth the computation of basic and diluted income per share:

	Three Months Ended				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
(In millions, except per share data)	2011		2010		2011		2010
Basic Income per Share:
Net income	$	52.1	$	34.6	$	96.4	$	40.5
Weighted-average common shares outstanding		34.8		33.9		34.7		34.1
Net income per basic share	$	1.50	$	1.02	$	2.78	$	1.19
Diluted Income per Share:
Net income	$	52.1	$	34.6	$	96.4	$	40.5
Weighted-average common shares outstanding		34.8		33.9		34.7		34.1
Effect of dilutive securities:
Stock options and units		0.4		0.5		0.5		0.5
Convertible notes due 2033		0.5		1.0		0.4		1.0
Convertible notes due 2013		0.6		—		0.6		—
Diluted weighted-average common shares outstanding		36.3		35.4		36.2		35.6
Net income per diluted share	$	1.43	$	0.98	$	2.66	$	1.14

     The Company’s $300 million convertible notes due 2013 (“Notes due 2013”) are not currently convertible. In periods when the Notes due 2013 are convertible, any conversion will be settled in cash up to the principal amount, and any excess conversion value will be delivered, at the Company’s election, in cash, common stock or a combination of cash and common stock. As a result of the Company’s average stock price exceeding the conversion price of $59.78 per share during both the three and six months ended July 1, 2011, 0.6 million additional shares related to the Notes due 2013 were included in the diluted weighted-average common shares outstanding. The Company’s average stock price for the three and six months ended July 2, 2010 did not exceed the conversion price and, therefore, the Notes due 2013 were antidilutive for this period.

     The Company’s 3.25% zero coupon convertible notes due 2033 (“Notes due 2033”) are currently convertible. In periods when the Notes due 2033 are convertible, any conversion will be settled in cash up to the accreted principal amount, and any amount in excess of the accreted principal value will be settled in common stock. As a result of the conversion value exceeding the average accreted principal value during the three and six months ended July 1, 2011, the Company included 0.5 million and 0.4 million additional shares, respectively, related to the Notes due 2033 in the diluted weighted-average common shares outstanding. During the three and six months ended July 2, 2010, the Company included 1.0 million additional shares for both periods related to the Notes due 2033 in the diluted weighted-average common shares outstanding.

     In the three and six months ended July 1, 2011, 0.4 million and 0.5 million additional shares, respectively, were included in the computation of diluted earnings per share relating to exercisable stock options and units because the effect of these common stock equivalents were dilutive during the periods presented. In both the three and six months ended July 2, 2010, 0.5 million additional shares were included in the computation of diluted earnings per share because the effect of these common stock equivalents were dilutive during the periods presented.

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

     In the three and six months ended July 1, 2011, the Company issued 0.2 million and 0.6 million shares, respectively, related to stock option exercises and vesting of stock units. In the three and six months ended July 2, 2010, the Company issued 0.1 million and 0.3 million shares, respectively, due to stock option exercises and vesting of stock units. During the six months ended July 2, 2010, the Company repurchased 1 million of its outstanding shares. No repurchases were made in the six months ended July 1, 2011.

NOTE 4. INCOME TAXES

     The second quarter of 2011 tax provision was $31.2 million compared to $23.1 million in the corresponding period of last year. The Company’s effective tax rate for the three months ended July 1, 2011 was 37.5% as compared to 40.0% in the prior year period.

     The tax provision for the six months ended July 1, 2011 was $57.8 million as compared to $27.0 million in the corresponding period in the prior year. The Company’s effective tax rate for the six months ended July 1, 2011 was 37.5% compared to 40.0% in the prior year period.

     The difference between the statutory corporate federal tax rate of 35% and the Company’s effective tax rate was primarily due to state income taxes.

NOTE 5. DEBT

     At July 1, 2011, the Company’s total debt outstanding was $964.2 million as compared to $892.4 million at December 31, 2010. The Company’s weighted-average cost of borrowings was 5.0% and 6.3% for the three months ended July 1, 2011 and July 2, 2010, respectively, and 5.1% and 6.8% for the six months ended July 1, 2011 and July 2, 2010, respectively.

Retirement of Debt

     During the first six months of 2011, the Company retired a portion of the Notes due 2033 as a result of repurchases and bondholder conversions. The Company paid approximately $82.2 million in cash and $1.6 million was settled in stock. Available borrowings under the Company’s long-term revolving credit facility were used to retire these notes. In connection with the retirement of debt, the Company reduced the accreted value of the debt by $37.4 million, recorded a reduction in equity of $44.9 million ($22.9 million, net of the reduction of deferred tax liabilities of $22.0 million). These reductions resulted in the recognition of a pre-tax gain of $0.1 million based on the fair value of the liability and equity components at the time of retirement.

     During the first quarter of 2010, the Company retired $121.9 million of accreted value of its 10% Senior Notes due 2014 (“Notes due 2014”) for $150.8 million. Available cash and other borrowings were used to retire these notes. As a result of the retirement of debt, the Company recognized a pre-tax loss of $30.5 million, inclusive of $2.5 million of debt issuance costs that were written off and $0.3 million of fees associated with the retirement.

     During the second quarter of 2010, the Company retired a portion of the Notes due 2033 for $40.9 million. Available cash was used to retire these notes. In connection with the retirement of debt, the Company reduced the accreted value of the debt by $28.6 million, recorded a reduction in equity of $13.1 million (reflecting the fair value of the conversion option at the time of repurchase) and reduced deferred tax liabilities by $8.0 million. The retirement of debt resulted in the recognition of a pre-tax gain of $0.8 million.

Accounts Receivable Securitization Facility

     In the second quarter of 2011, the Company’s primary operating subsidiary, Anixter Inc., amended the agreements governing its accounts receivable securitization program. The following key changes were made to the program:

• The size of the program increased from $200 million to $275 million.

• The liquidity termination date of the program will be May 2013 (formerly a program maturing July 2011).

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

• The renewed program carries an all-in drawn funding cost of Commercial Paper (“CP”) plus 90 basis points (previously CP plus 115 basis points).

• Unused capacity fees decreased from 57.5 to 60 basis points to 45 to 55 basis points depending on utilization.

     All other material terms and conditions remain unchanged. As a result of the change in maturity, this debt was classified as long-term on the Company’s condensed consolidated balance sheet at July 1, 2011 (formerly short-term debt as of December 31, 2010).

     Under Anixter’s accounts receivable securitization program, the Company sells, on an ongoing basis without recourse, a majority of the accounts receivable originating in the United States to Anixter Receivables Corporation (“ARC”), which is considered a wholly-owned, bankruptcy-remote variable interest entity (“VIE”). The Company is the primary beneficiary as defined by accounting guidance and, therefore, consolidates the account balances of ARC. As of July 1, 2011 and December 31, 2010, $517.9 million and $407.8 million of the Company’s receivables were sold to ARC, respectively. ARC in turn sells an interest in these receivables to a financial institution for proceeds up to $275.0 million. The assets of ARC (limited to the amount of outstanding borrowings) are not available to creditors of Anixter in the event of bankruptcy or insolvency proceedings.

Other

     Certain debt agreements entered into by the Company’s operating subsidiaries contain various restrictions, including restrictions on payments to the Company. These restrictions have not had, nor are expected to have, an adverse impact on the Company’s ability to meet its cash obligations. The Company has approximately $259.8 million in available, committed, unused credit lines. At July 1, 2011, the Company has drawn $245.0 million of borrowings under its $275.0 million accounts receivable facility.

     In the second quarter of 2011, the Company’s primary operating subsidiary, Anixter Inc., refinanced its senior unsecured revolving credit facility. The following key changes were made to the prior revolving credit agreement:

• The size of the credit facility was increased from $350 million to $400 million (or the equivalent in Euros).

• The maturity date of the new agreement will be April 2016.

• Anixter Inc. will be permitted to direct funds to the Company for payment of dividends and share repurchases to a maximum of $175 million plus 50 percent of Anixter Inc.’s cumulative net income from the effective date of the new agreement.

• Anixter Inc. will be allowed to prepay, purchase or redeem indebtedness of the Company, provided that its proforma leverage ratio (as defined in the agreement) is less than or equal to 2.75 to 1.00 and that its unrestricted domestic cash balance plus availability under the revolving credit agreement and the accounts receivable securitization facility is equal to or greater than $175 million.

• The pricing grid has been adjusted to a leverage-based pricing grid. Based on Anixter Inc.’s current leverage ratio, the applicable margin will be Libor plus 200 basis points, similar to the prior agreement.

     All other material terms and conditions of the revolving credit agreement, which is guaranteed by the Company, are similar to the prior credit agreement. In connection with the amendment, the Company recognized a pre-tax loss of $0.1 million due to a write-off of deferred financing fees related to the prior revolving credit agreement.

     See Note 7. “Fair Value Measurements” for information related to the fair value of outstanding debt obligations.

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

     Interest rate agreements: The Company uses interest rate swaps to reduce its exposure to fluctuations in interest rates. The objective of the currently outstanding interest rate swaps (cash flow hedges) is to convert variable interest to fixed interest associated with forecasted interest payments resulting from revolving borrowings in the U.K. and continental Europe and are designated as hedging instruments. The Company does not enter into interest rate transactions for speculative purposes. Changes in the value of the interest rate swaps are expected to be highly effective in offsetting the changes attributable to fluctuations in the variable rates. The Company’s counterparties to its interest rate swap contracts have investment-grade credit ratings. The Company expects the creditworthiness of its counterparties to remain intact through the term of the transactions. When entered into, these financial instruments were designated as hedges of underlying exposures (interest payments associated with the U.K. and continental Europe borrowings) attributable to changes in the respective benchmark interest rates.

     As of July 1, 2011, the Company had two interest rate swap agreements outstanding with notional amounts of GBP 15 million and Euro 25 million. The GBP swap agreement obligates the Company to pay a fixed rate through July 2012 while the Euro swap agreement obligates the Company to pay a fixed rate through November 2011.

     Foreign currency forward contracts: The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company’s strategy is to negotiate terms for its derivatives and other financial instruments to be perfectly effective, such that the change in the value of the derivative perfectly offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). The Company’s counterparties to its foreign currency forward contracts have investment-grade credit ratings. The Company expects the creditworthiness of its counterparties to remain intact through the term of the transactions. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist which could affect the value of the derivatives.

     At July 1, 2011 and December 31, 2010, foreign currency forward contracts were revalued at then-current foreign exchange rates, with the changes in valuation reflected directly in “Other, net” in the Condensed consolidated statements of operations offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At July 1, 2011 and December 31, 2010, the notional amount of the foreign currency forward contracts outstanding was approximately $210.6 million and $223.0 million, respectively. The Company recorded losses on its foreign currency forward contracts in the three and six months ended July 1, 2011 of $5.7 million and $3.5 million, respectively, and gains of $0.8 million and $4.3 million in the three and six months ended July 2, 2010, respectively. Included in the gains and losses on the Company’s foreign currency forward contracts were costs associated with the hedging programs of $0.5 million and $1.0 million for the three months and six months, respectively, ended July 1, 2011 and July 2, 2010. The Company recorded gains on the foreign currency-denominated accounts that were economically hedged in the three and six months ended July 1, 2011 of $4.2 million and $1.8 million, respectively, and losses of $2.9 million and $7.7 million in the three and six months ended July 2, 2010, respectively. The Company does not hedge 100% of its foreign currency-denominated accounts and results of the hedging can vary significantly based on various factors, such as the timing of executing the foreign currency forward contracts versus the movement of the currencies as well as the fluctuations in the account balances throughout each reporting period.

     See Note 7. “Fair Value Measurements” for information related to the fair value of interest rate agreements and foreign currency forward contracts.

NOTE 7. FAIR VALUE MEASUREMENTS

     The fair value of the Company’s debt instruments is measured using observable market information which would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements.

     The Company’s fixed-rate debt primarily consists of nonconvertible and convertible debt as follows:

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

• Nonconvertible fixed-rate debt consisting of the Company’s $200.0 million 5.95% Senior Notes due 2015 (“Notes due 2015”) and Notes due 2014.

• Convertible fixed-rate debt consisting of the Company’s Notes due 2013 and Notes due 2033.

     At July 1, 2011, the Company’s carrying value of its fixed-rate debt was $514.7 million as compared to $543.6 million at December 31, 2010. The estimated fair market value of the Company’s fixed-rate debt at July 1, 2011 and December 31, 2010 was $617.7 million and $672.8 million, respectively. The decline in the carrying value and estimated fair market value is due to the retirement of a portion of the Notes due 2033 during the first half of 2011. As of July 1, 2011 and December 31, 2010, the Company’s carrying value of its variable-rate debt was $449.5 million and $348.8 million, respectively, which approximates the estimated fair market value.

     The fair value of the interest rate swaps is determined by means of a mathematical model that calculates the present value of the anticipated cash flows from the transaction using mid-market prices and other economic data and assumptions, or by means of pricing indications from one or more other dealers selected at the discretion of the respective banks. These inputs would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements. At July 1, 2011 and December 31, 2010, interest rate swaps were revalued at current interest rates with the changes in valuation reflected directly in “Accumulated Other Comprehensive Income (Loss)” in the Company’s Condensed Consolidated Balance Sheets. The fair market value of the Company’s outstanding interest rate agreements, which is the estimated exit price that the Company would pay to cancel the interest rate agreements, was not significant at July 1, 2011 or December 31, 2010.

     The fair value of the Company’s foreign currency forward contracts was not significant at July 1, 2011 or December 31, 2010. The fair value of the foreign currency forward contracts is based on the difference between the contract rate and the current exchange rate. The fair value of the foreign currency forward contracts is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy.

NOTE 8. PENSION PLANS

     The Company has various defined benefit and defined contribution pension plans. The defined benefit plans of the Company are the Anixter Inc. Pension Plan, Executive Benefit Plan and Supplemental Executive Retirement Plan (“SERP”) (together the “Domestic Plans”) and various pension plans covering employees of foreign subsidiaries (“Foreign Plans”). The majority of the Company’s pension plans are non-contributory and 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 and 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 Internal Revenue Service (“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.

     Components of net periodic pension cost are as follows (in millions):

	Three Months Ended
	Domestic						Foreign						Total
	July 1,			July 2,			July 1,			July 2,			July 1,			July 2,
	2011			2010			2011			2010			2011			2010
Service cost	$	1.8		$	1.5		$	1.4		$	1.1		$	3.2		$	2.6
Interest cost		2.9			2.9			2.5			2.4			5.4			5.3
Expected return on plan assets		(2.9	)		(2.7	)		(2.6	)		(2.2	)		(5.5	)		(4.9	)
Net amortization		0.8			0.9			—			0.2			0.8			1.1
Net periodic cost	$	2.6		$	2.6		$	1.3		$	1.5		$	3.9		$	4.1

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

	Six Months Ended
	Domestic						Foreign						Total
	July 1,			July 2,			July 1,			July 2,			July 1,			July 2,
	2011			2010			2011			2010			2011			2010
Service cost	$	3.5		$	3.1		$	2.7		$	2.3		$	6.2		$	5.4
Interest cost		6.0			5.8			4.9			4.9			10.9			10.7
Expected return on plan assets		(5.9	)		(5.4	)		(5.1	)		(4.5	)		(11.0	)		(9.9	)
Net amortization		1.7			1.7			0.1			0.4			1.8			2.1
Curtailment		0.6			—			—			—			0.6			—
Net periodic cost	$	5.9		$	5.2		$	2.6		$	3.1		$	8.5		$	8.3

NOTE 9. SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.

     The Company guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc. The Company has no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc. (in millions):

ANIXTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	July 1,		December 31,
	2011		2010
	(Unaudited)
Assets:
Current assets	$	2,558.2	$	2,284.3
Property, equipment and capital leases, net		104.0		99.8
Goodwill		375.9		374.3
Other assets		180.6		191.3
	$	3,218.7	$	2,949.7
Liabilities and Stockholder’s Equity:
Current liabilities	$	983.7	$	1,067.4
Subordinated notes payable to parent		9.5		8.5
Long-term debt		691.3		394.4
Other liabilities		134.8		160.6
Stockholder’s equity		1,399.4		1,318.8
	$	3,218.7	$	2,949.7

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

ANIXTER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
	2011		2010		2011		2010
Net sales	$	1,612.8	$	1,367.2	$	3,130.3	$	2,639.8
Operating income	$	99.2	$	71.8	$	183.6	$	130.3
Income before income taxes	$	89.4	$	63.2	$	166.3	$	79.5
Net income	$	54.9	$	40.1	$	103.8	$	52.5

NOTE 10. RESTRUCTURING CHARGE

     In order to improve the Company’s profitability of the Company’s European segment, management approved a facility consolidation and headcount reduction plan during the first quarter of 2011 that will eliminate a number of European facilities and reduce operating costs. As a result, the Company recorded a pre-tax charge of $5.3 million which is included in “Operating Expenses” in the Company’s Condensed Consolidated Statement of Operations for the six months ended July 1, 2011. The charge includes certain exit costs and employee severance charges which are expected to be fully paid by the end of fiscal 2013. Additional costs of approximately $0.8 million related to moving expenses are expected to be recorded when incurred.

NOTE 11. STOCKHOLDERS’ EQUITY

Stock-Based Compensation

     At the end of the second quarter of 2011, there were 2.3 million shares reserved for issuance under various incentive plans. The Company’s Director Stock Unit Plan allows the Company to pay its non-employee directors annual retainer fees and, at their election, meeting fees in the form of stock units. Employee and director stock units are included in common stock outstanding on the date of vesting and stock options are included in common stock outstanding upon exercise by the participant. The fair value of stock options and stock units is amortized over the respective vesting period representing the requisite service period.

     The Company granted approximately 0.2 million stock units to employees during the six months ended July 1, 2011. The weighted-average grant-date fair value of the employee stock units was $69.91. During the six months ended July 1, 2011, the Company granted directors 18,679 stock units with a weighted-average grant-date fair value of $64.80. The Company granted approximately 0.1 million stock options to employees during the six months ended July 1, 2011 that had a weighted-average grant-date fair value of $28.50 and a weighted-average exercise price of $69.54. The fair value of the stock options granted during the six months ended July 1, 2011 was estimated using the Black-Scholes option pricing model with the following assumptions:

Expected Stock	Risk-Free Interest	Expected Dividend	Average Expected
Price Volatility	Rate	Yield	Life
38%	2.2% to 2.5%	0%	6.13 years

Share Repurchase

     In the six months ended July 2, 2010, the Company repurchased 1 million of its outstanding shares for $41.2 million. Purchases were made in the open market using available cash on hand. No repurchases were made in the six months ended July 1, 2011.

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 12. LEGAL CONTINGENCIES

     In April 2008, the Company voluntarily disclosed to the U.S. Departments of Treasury and Commerce that one of its foreign subsidiaries may have violated U.S. export control laws and regulations in connection with re-exports of goods to prohibited parties or destinations including Cuba and Syria, countries identified by the State Department as state sponsors of terrorism. The Company has performed a thorough review of its export and re-export transactions and did not identify any other potentially significant violations. The Company has determined appropriate corrective actions. The Company has submitted the results of its review and its corrective action plan to the applicable U.S. government agencies. Civil penalties may be assessed against the Company in connection with any violations that are determined to have occurred, but based on information currently available, management does not believe that the ultimate resolution of this matter will have a material effect on the business, operations or financial condition of the Company.

     In May 2009, Raytheon Co. filed for arbitration against one of the Company’s subsidiaries, Anixter Inc., alleging that it had supplied non-conforming parts to Raytheon. Raytheon sought damages of approximately $26 million. The arbitration hearing concluded in October 2010 and the arbitration panel rendered its decision at the end of 2010. The arbitration panel entered an interim award against the Company in the amount of $20.8 million. In April 2011, the arbitration panel finalized the award to Raytheon to cover their attorneys’ fees and arbitration proceeding costs in the amount of $1.5 million and the arbitration proceeding was closed. The Company has appealed the awards. The Company recorded a pre-tax charge of $20.0 million in the fourth quarter of 2010 which approximates the expected cost of the award after consideration of insurance proceeds, fees, costs and interest on the award at 10% per annum until paid. There were no significant changes to the Company’s accrual for this matter during the second quarter of 2011.

     In September 2009, the Garden City Employees’ Retirement System filed a purported class action under the federal securities laws in the United States District Court for the Northern District of Illinois against the Company, its current and former chief executive officers and its former chief financial officer. In November 2009, the Court entered an order appointing the Indiana Laborers Pension Fund as lead plaintiff and appointing lead plaintiff’s counsel. In January 2010, the lead plaintiff filed an amended complaint. The amended complaint principally alleges that the Company made misleading statements during 2008 regarding certain aspects of its financial performance and outlook. The amended complaint seeks unspecified damages on behalf of persons who purchased the common stock of the Company between January 29 and October 20, 2008. In March 2011, the Court dismissed the complaint but allowed the lead plaintiff the opportunity to re-plead its complaint. Plaintiff did so in April 2011. The Company and the other defendants intend to continue to defend themselves vigorously against the allegations. Based on facts known to management at this time, the Company cannot estimate the amount of loss, if any, and, therefore, has not made any accrual for this matter in these financial statements.

     In October 2009, the Company disclosed to the U.S. Government that it may have violated laws and regulations restricting entertainment of government employees. The Inspector General of the relevant federal agency is investigating the disclosure and the Company is cooperating in the investigation. Civil and or criminal penalties could be assessed against the Company in connection with any violations that are determined to have occurred. Based on facts known to management at this time, the Company cannot estimate the amount of loss, if any, and, therefore, has not made any accrual for this matter in these financial statements.

     From time to time, in the ordinary course of business, the Company and its subsidiaries become involved as plaintiffs or defendants in various other legal proceedings not enumerated above. The claims and counterclaims in such other legal proceedings, including those for punitive damages, individually in certain cases and in the aggregate, involve amounts that may be material. However, it is the opinion of the Company’s management, based on the advice of its counsel, that the ultimate disposition of those proceedings will not be material.

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

NOTE 13. BUSINESS SEGMENTS

     The Company is engaged in the distribution of communications and security products, electrical wire and cable products and fasteners and other small parts (“C” Class inventory components) from top suppliers to contractors and installers, and also to end users including manufacturers, natural resources companies, utilities and original equipment manufacturers who use the Company’s products as a component in their end product. The Company is organized by geographic regions, and accordingly, has identified North America (United States and Canada), Europe and Emerging Markets (Asia Pacific and Latin America) as reportable segments. The Company obtains and coordinates financing, tax, information technology, legal and other related services, certain of which are rebilled to subsidiaries. Certain corporate expenses are allocated to the segments based primarily on specific identification, projected sales and estimated use of time. Interest expense and other non-operating items are not allocated to the segments or reviewed on a segment basis. Intercompany transactions are not significant.

     Segment information for the three and six months ended July 1, 2011 and July 2, 2010 and as of July 1, 2011 and December 31, 2010 was as follows (in millions):

	Three Months Ended					Six Months Ended
	July 1,		July 2,			July 1,		July 2,
	2011		2010			2011		2010
Net sales:
North America	$	1,141.3	$	983.4		$	2,211.0	$	1,879.5
Europe		296.0		251.9			587.3		505.1
Emerging Markets		175.5		131.9			332.0		255.2
	$	1,612.8	$	1,367.2		$	3,130.3	$	2,639.8
Operating income:
North America	$	84.8	$	63.3		$	160.7	$	114.2
Europe		4.8		(0.7	)		4.8		(0.2	)
Emerging Markets		8.2		7.5			15.4		13.1
	$	97.8	$	70.1		$	180.9	$	127.1

	July 1,		December 31,
	2011		2010
Total assets:
North America	$	2,198.0	$	2,043.9
Europe		654.8		586.7
Emerging Markets		353.6		302.7
	$	3,206.4	$	2,933.3

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ANIXTER INTERNATIONAL INC.

NOTES TO THE UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Continued)

     The following tables presents the changes in goodwill allocated to the Company’s reportable segments during the six months ended July 1, 2011 (in millions):

	Six Months Ended July 1, 2011
	North America			Europe(b)		Emerging Markets		Total
Balance as of December 31, 2010	$	350.8		$	11.6	$	11.9	$	374.3
Acquisition related(a)		(0.3	)		—		—		(0.3	)
Foreign currency translation		0.6			0.7		0.6		1.9
Balance as of July 1, 2011	$	351.1		$	12.3	$	12.5	$	375.9

(a)	In the six months ended July 1, 2011, the Company adjusted goodwill recognized in 2010 by $0.3 million, related to the acquisition of Clark Security Products, Inc and General Lock, LLC (collectively “Clark”) for which the Company paid $36.4 million, net of cash acquired. The purchase price, as well as the allocation thereof, will be finalized in 2011.
(b)	Europe’s goodwill balance includes $100.0 million of accumulated impairment losses at December 31, 2010 and July 1, 2011.

NOTE 14. SUBSEQUENT EVENT

     In July 2011, the Company retired the remaining Notes due 2033 for $24.9 million. The Company paid approximately $11.6 million in cash to reduce the remaining accreted value of debt and issued approximately 0.2 million shares of its common stock which represented approximately $13.3 million of excess conversion value over the accreted principal amount. Available borrowings under the Company’s long-term revolving credit facility were used to retire these notes.

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ANIXTER INTERNATIONAL INC.

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

     The following is a discussion of the historical results of operations and financial condition of Anixter International Inc. (the “Company”) and factors affecting the Company’s financial resources. This discussion should be read in conjunction with the condensed consolidated financial statements, including the notes thereto, set forth herein under “Financial Statements” and the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

     This report includes certain financial measures computed using non-Generally Accepted Accounting Principles (“non-GAAP”) components as defined by the Securities and Exchange Commission (“SEC”). Specifically, net sales, comparisons to the prior corresponding period, both worldwide and in relevant geographic segments, are discussed in this report both on a Generally Accepted Accounting Principle (“GAAP”) basis and excluding acquisitions and foreign exchange and copper price effects (non-GAAP). The Company believes that by reporting organic growth which excludes the impact of acquisitions, foreign exchange and copper prices, both management and investors are provided with meaningful supplemental information to understand and analyze the Company’s underlying sales trends and other aspects of its financial performance.

     Non-GAAP financial measures provide insight into selected financial information and should be evaluated in the context in which they are presented. These non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation from, or as a substitute for, financial information presented in compliance with GAAP, and non-financial measures as reported by the Company may not be comparable to similarly titled amounts reported by other companies. The non-GAAP financial measures should be considered in conjunction with the consolidated financial statements, including the related notes, and Management’s Discussion and Analysis of Financial Condition and Results of Operations included herein in this report. Management does not use these non-GAAP financial measures for any purpose other than the reasons stated above.

Financial Liquidity and Capital Resources

Overview

     As a distributor, the Company’s use of capital is largely for working capital to support its revenue base. Capital commitments for property, plant and equipment are limited to information technology assets, warehouse equipment, office furniture and fixtures and leasehold improvements, since the Company operates almost entirely from leased facilities. Therefore, in any given reporting period, the amount of cash consumed or generated by operations other than from net earnings will primarily be due to changes in working capital as a result of the rate of increases or decreases to sales.

     In periods when sales are increasing, the expanded working capital needs will be funded first by cash from operations, secondly from additional borrowings and lastly from additional equity offerings. In periods when sales are decreasing, the Company will have improved cash flows due to reduced working capital requirements. During such periods, the Company will use the expanded cash flow to reduce the amount of leverage in its capital structure until such time as the outlook for improved economic conditions and growth are clear. Also, the Company will, from time to time, issue or retire borrowings or equity in an effort to maintain a cost-effective capital structure consistent with its anticipated capital requirements.

     The Company believes it has a strong liquidity position, sufficient to meet its liquidity requirements for the next twelve months. The Company generated $12.8 million of cash from operations during the first half of 2011 despite the increased working capital requirements to support the 18.6% sales growth. In the first half of 2010, cash flow generated from operations was $111.3 million due to slower revenue growth and continuing working capital reductions. While the Company expects positive cash flow during the remainder of the year, it expects that it will be less than the prior year due to higher working capital requirements throughout the year.

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ANIXTER INTERNATIONAL INC.

     With a quarter-end cash balance of $98.7 million and available credit lines, the Company will continue to evaluate the optimal use of these funds. The Company may from time to time repurchase additional amounts of the Company’s outstanding shares or outstanding debt obligations. The Company maintains the flexibility to utilize future cash flows to invest in the growth of the business, and it believes that the current leverage on the balance sheet positions the Company to effectively capitalize on the improved economic environment as well as additional acquisition opportunities when they become available. The Company will continue to balance its focus on sales and earnings growth with continuing efforts in cost control and working capital management. Maintaining a strong and flexible financial position continues to be vital to funding investment in strategic long-term growth initiatives.

Cash Flow

     Due to net income during the six months ended July 1, 2011, offset by the incremental working capital requirements to support the 18.6% sales growth in the first half of 2011, the Company’s net cash generated from operations was $12.8 million. During the first half of 2010, cash flow generated from operations was $111.3 million due to slower revenue growth and reduced working capital requirements.

     Consolidated net cash used in investing activities, consisting primarily of capital expenditures, increased to $14.5 million in the six months ended July 1, 2011 from $10.1 million in the six months ended July 2, 2010. Capital expenditures are expected to be approximately $30 to $35 million in 2011 as the Company continues to invest in the consolidation of certain acquired facilities in North America and Europe, information system upgrades and new software to support its infrastructure and warehouse equipment.

     Net cash provided by financing activities was $22.0 million in the six months ended July 1, 2011 compared to $133.5 million of net cash used in financing activities in the corresponding period in 2010. Using available borrowings under the Company’s long-term revolving credit facility, the Company retired a portion of its Notes due 2033 for $82.2 million. During the first half of 2011, the Company recorded deferred financing costs of $4.1 million related to the refinancing of its revolving credit facility and accounts receivable securitization facility. In the six months ended July 2, 2010, using net cash generated from operations and net proceeds from borrowings of $95.5 million, the Company repurchased 1.0 million shares of common stock for $41.2 million and retired a portion of its Notes due 2014 and Notes due 2033 for a total of $150.8 million and $40.9 million, respectively. The retirement of the Notes due 2014 resulted in the recognition of a pre-tax loss of $30.5 million in the first quarter of 2010 while the retirement of the Notes due 2033 resulted in a pre-tax gain of $0.8 million in the second quarter of 2010.

Financing

     In the second quarter of 2011, the Company’s primary operating subsidiary, Anixter Inc., amended the agreements governing its accounts receivable securitization program. The following key changes were made to the program:

• The size of the program increased from $200 million to $275 million.

• The liquidity termination date of the program will be May 2013 (formerly a program maturing July 2011).

• The renewed program carries an all-in drawn funding cost of Commercial Paper (“CP”) plus 90 basis points (previously CP plus 115 basis points).

• Unused capacity fees decreased from 57.5 to 60 basis points to 45 to 55 basis points depending on utilization.

     All other material terms and conditions remain unchanged. As a result of the change in maturity, this debt was classified as long-term on the Company’s condensed consolidated balance sheet at July 1, 2011 (formerly short-term debt as of December 31, 2010).

     In the second quarter of 2011, the Company’s primary operating subsidiary, Anixter Inc., refinanced its senior unsecured revolving credit facility. The following key changes were made to the prior revolving credit agreement:

• The size of the credit facility was increased from $350 million to $400 million (or the equivalent in Euros).

• The maturity date of the new agreement is April 2016.

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ANIXTER INTERNATIONAL INC.

• Anixter Inc. will be permitted to direct funds to the Company for payment of dividends and share repurchases to a maximum of $175 million plus 50 percent of Anixter Inc.’s cumulative net income from the effective date of the new agreement.

• Anixter Inc. will be allowed to prepay, purchase or redeem indebtedness of the Company, provided that its proforma leverage ratio (as defined in the agreement) is less than or equal to 2.75 to 1.00 and that its unrestricted domestic cash balance plus availability under the revolving credit agreement and the accounts receivable securitization facility is equal to or greater than $175 million.

• The pricing grid has been adjusted to a leverage based pricing grid. Based on Anixter Inc.’s current leverage ratio, the applicable margin will be Libor plus 200 basis points, similar to the prior agreement.

     All other material terms and conditions of the revolving credit agreement, which is guaranteed by the Company, are similar to the prior credit agreement. In connection with the amendment, the Company recognized a pre-tax loss of $0.1 million due to a write-off of deferred financing fees related to the prior revolving credit agreement.

     As of July 1, 2011 and December 31, 2010, the Company’s short-term debt outstanding was $7.1 million and $203.6 million, respectively, and the Company’s long-term debt outstanding was $957.1 million and $688.8 million, respectively. Consolidated interest expense was $25.6 million and $28.8 million in the first half of 2011 and 2010, respectively. The decrease in interest expense was driven by a lower average-cost of debt than the year ago period. The Company’s weighted-average cost of borrowings decreased to 5.1% in the first six months of 2011 from 6.8% in the first six months of 2010 primarily due to the retirement of higher cost debt during 2010 and the first half of 2011. Interest rates on 59.6% of the Company’s borrowings were fixed (either by their terms or through hedging contracts) at the end of the second quarter of 2011. The Company’s debt-to-total capital ratio was 46.1%, within its targeted range of 45% to 50%.

     Certain debt agreements entered into by the Company’s operating subsidiaries contain various restrictions, including restrictions on payments to the Company. These restrictions have not had, nor are expected to have, an adverse impact on the Company’s ability to meet its cash obligations. The Company has approximately $259.8 million in available, committed, unused credit lines. At July 1, 2011, the Company has drawn $245.0 million of borrowings under its $275.0 million accounts receivable facility.

Executive Overview

     The Company competes with distributors and manufacturers who sell products directly or through existing distribution channels to end users or other resellers. The Company’s relationship with the manufacturers for which it distributes products could be affected by decisions made by these manufacturers as the result of changes in management or ownership as well as other factors. Although the Company has strong relationships with its suppliers, the loss of a major supplier could have a temporary adverse effect on the Company’s business, but would not have a lasting impact since comparable products are available from alternate sources. For further information, see Item 1A “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

     The Company’s operating results can be affected by changes in prices of commodities, primarily copper, which are components in some of the products sold. Generally, as the costs of inventory purchases increase due to higher commodity prices, the Company’s mark-up percentage to customers remains relatively constant, resulting in higher sales revenue and gross profit. In addition, existing inventory purchased at previously lower prices and sold as prices increase may result in a higher gross profit margin. Conversely, a decrease in commodity prices in a short period of time would have the opposite effect, negatively affecting financial results. The degree to which spot market copper prices change affects product prices and the amount of gross profit earned will be affected by end market demand and overall economic conditions. Importantly, however, there is no exact measure of the effect of changes in copper prices, as there are thousands of transactions in any given quarter, each of which has various factors involved in the individual pricing decisions. Therefore, all references to the effect of copper prices are estimates.

     Despite what continues to be a slower-than-anticipated macro economic recovery, all of the Company’s business segments and end markets delivered strong year-on-year growth for the fifth consecutive quarter. In addition to the 18.0% percent year-on-year sales increase, the Company also achieved a 6.3% sequential increase in sales from the first quarter to the second quarter of 2011.

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     The Company’s strategic initiatives are helping to fuel its sales growth in each of its end markets around the world. These efforts have once again delivered well-balanced sales performance across the Company’s geographic reporting segments with North America, Europe and Emerging Markets all delivering excellent year-on-year sales increases ranging between 16% and 33%. Sales growth by end market was also robust, with both Electrical Wire & Cable and OEM Supply end markets delivering a 25% improvement year-on-year. In addition, the Enterprise Cabling and Security end market grew by 12%, with approximately one-third of that growth coming from the Clark acquisition.

     Second quarter operating expenses of $275.5 million were 17.1% of sales compared to 17.8% in the prior year quarter. Excluding the impact of the Clark acquisition of $8.5 million and exchange rates of $9.0 million, year-on-year operating expenses increased by only $15.1 million or 6%, on a 10% organic increase in sales, demonstrating the leverage in the Company’s operating structure. Expense increases were primarily volume related.

     The momentum that has been building throughout this recovery is reflected in the Company’s strong operating profit performance, which was driven by top-line growth coupled with excellent gross margin management. Specifically, second quarter operating margin of 6.1% reached its highest level in three years, due to a favorable end market sales mix driving a 30 basis point improvement in gross margin combined with operating expense leverage delivering a 70 basis point improvement in operating expense as a percentage of sales. This performance resulted in an incremental operating profit leverage of 11% on the increased year-on-year sales.

     Considering the uncertainty that has continued to exist in most major economies, the Company believes that customer-specific business conditions and outlook are impacting capital spending decisions more than broader macroeconomic factors. In the current environment, the strength of customer relationships, quality of the Company’s value proposition and execution of Company-specific growth initiatives are critical to the Company’s ability to drive growth.

Second Quarter 2011 Results of Operations

Consolidated Results of Operations

	Three Months Ended
	July 1,		July 2,		Percent
	2011		2010		Change
			(In millions)
Net sales	$	1,612.8	$	1,367.2		18.0	%
Gross profit	$	373.3	$	313.0		19.3	%
Operating expenses	$	275.5	$	242.9		13.5	%
Operating income	$	97.8	$	70.1		39.6	%

     Net Sales: The Company’s net sales during the second quarter of 2011 increased $245.6 million, or 18.0%, compared with the prior year quarter. Favorable effects of foreign exchange rates increased sales by $47.2 million while an increase in copper prices and the fourth quarter of 2010 acquisition of Clark increased sales in the second quarter of 2011 by $30.4 million and $29.8 million, respectively, as compared to the year ago period. Excluding the favorable effects of foreign exchange rates, copper prices and the fourth quarter of 2010 acquisition, the Company’s net sales increased $138.2 million, or approximately 10.1%, in the second quarter of 2011 as compared to the second quarter of 2010. All geographic segments as well as all worldwide end markets (Enterprise Cabling and Security, Electrical Wire and Cable and OEM Supply) reported year-on-year organic sales growth.

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ANIXTER INTERNATIONAL INC.

     Gross Margin: Gross margin increased in the second quarter of 2011 to 23.2% as compared to 22.9% in the prior year quarter mainly due to an improvement in the overall sales mix by end market. The effects of higher copper prices did not impact gross margin percentages significantly; however, the effects of copper prices did increase gross profit dollars by $5.2 million in the second quarter of 2011 as compared to the prior year. The Company continues to be pleased with the stabilization of gross margin over the last four quarters. This trend, along with an improving daily sales run rate, is a positive indicator that the economic recovery has resonated in most parts of the Company’s business. However, gross margin continues to be negatively impacted by cost pressures in the European OEM Supply business due to significant unilateral cost increases from European-based fastener manufacturers. Despite the Company’s success in negotiating price increases from its customers that offset the initial price increases from suppliers, the Company is now dealing with additional supplier price increases. The Company’s level of success of negotiating customer pricing in the context of long term contractual agreements, while selectively resourcing some of these components to lower cost manufacturers, will determine the extent to which the Company can offset these gross margin pressures over time.

     Operating Expenses: Operating expenses increased 13.5% from $242.9 million in the year ago period to $275.5 million in the second quarter of 2011. The second quarter of 2011 operating expenses include an incremental $8.5 million related to the Clark acquisition and $9.0 million due to changes in foreign exchange rates. Excluding these items, operating expenses increased $15.1 million, or 6.2%, on a 10.1% organic increase in sales. The current quarter increase in operating expenses reflects higher variable costs associated with the increase in organic sales, including higher variable incentive costs.

     Operating Income: Operating income increased by $27.7 million, or 39.6%, to $97.8 million in the second quarter of 2011 as compared to $70.1 million in the second quarter of 2010. The Clark acquisition, favorable foreign exchange rate changes and higher copper prices increased operating income by $0.9 million, $1.8 million and $5.2 million, respectively. The operating margin of 6.1% in the current quarter compares to 5.1% in the year ago quarter. The strong operating margin improvement was driven by both a higher gross margin and better operating leverage on higher sales.

     Interest Expense: Consolidated interest expense was $12.8 million and $13.2 million in the second quarter of 2011 and 2010, respectively. The decrease in interest expense was driven by a lower average cost of debt than in the year ago quarter. The Company’s average cost of debt was 5.0% in the second quarter of 2011, down from the 6.3% level of the second quarter of 2010 primarily due to the retirement of higher cost debt. At the end of the second quarter of 2011, 59.6% of the Company’s outstanding debt had fixed interest rates either by the terms of the debt or through hedging contracts.

     Early Retirement of Debt: The second quarter of 2011 results included a pre-tax loss of $0.1 million related to the refinancing of certain credit facilities. This compares to a pre-tax gain of $0.8 million associated with the early retirement of a portion of the Notes due 2033 in the prior year period.

     Other, net: The following represents the components of “Other, net” as reflected in the Company’s Condensed Consolidated Statements of Operations for the second quarter of 2011 and 2010:

	Three Months Ended
	July 1,			July 2,
	2011			2010
	(In millions)
Foreign exchange	$	(0.9	)	$	0.1
Cash surrender value of life insurance policies		(0.2	)		(0.3	)
Other		(0.5	)		0.2
	$	(1.6	)	$	—

19

ANIXTER INTERNATIONAL INC.

     Due to the weakening of the U.S. dollar against certain foreign currencies, primarily in the Emerging Markets where there are few cost-effective means of hedging, the Company recorded foreign exchange losses of $0.9 million in the second quarter of 2011. Due to the remeasurement of Venezuela’s bolivar denominated assets, other income and expense included a pre-tax foreign exchange gain of $2.1 million in the second quarter of 2010 offset by comparable foreign exchange losses and other expenses.

     Income Taxes: The second quarter of 2011 tax provision was $31.2 million compared to $23.1 million in the corresponding period of last year. The Company’s effective tax rate for the three months ended July 1, 2011 was 37.5% as compared to 40.0% in the prior year period. The lower effective tax rate in the current quarter is primarily the result of improved earnings in all reporting segments and various foreign tax effects. The difference between the statutory corporate federal tax rate of 35% and the Company’s effective tax rate was primarily due to state income taxes.

     Net Income: For the second quarter of 2011, the Company reported net income of $52.1 million, or $1.43 per diluted share, compared to $34.6 million, or $0.98 per diluted share, reported in the year ago period, representing an increase of 50.5%. The year-on-year comparisons were impacted by the prior quarter foreign exchange gain in Venezuela of $2.1 million, or $0.8 million net of tax, and the pre-tax gain on the early retirement of debt of $0.8 million, or $0.5 million net of tax. Excluding these items from the prior year, net income increased 56.3%.

North America Results of Operations

	Three Months Ended
	July 1,		July 2,		Percent
	2011		2010		Change
			(In millions)
Net sales	$	1,141.3	$	983.4		16.0	%
Gross profit	$	267.1	$	225.5		18.5	%
Operating expenses	$	182.3	$	162.2		12.5	%
Operating income	$	84.8	$	63.3		33.8	%

     Net Sales: When compared to the second quarter of 2010, North America net sales in the second quarter of 2011 increased 16.0% to $1,141.3 million from $983.4 million. Excluding favorable effects of foreign exchange rate changes of $11.8 million, the impact of the acquisition of Clark of $29.8 million and the impact of copper prices of $27.3 million, North America net sales were $1,072.4 million in the second quarter of 2011, which represents an increase of $89.0 million, or approximately 9.0%, as compared to the year ago quarter.

     Gross Margin: Gross margin increased to 23.4% in the second quarter of 2011 from 22.9% in the second quarter of 2010 mainly due to improved end market sales mix. The effects of higher copper prices did not impact gross margin percentages significantly; however, the effects of copper prices did increase gross profit dollars by $5.0 million in the second quarter of 2011 compared to the corresponding period in the prior year.

     Operating Expenses: Operating expenses increased $20.1 million, or 12.5%, in the second quarter of 2011 from the year ago quarter. The acquisition of Clark and foreign exchange rate changes increased operating expenses by $8.5 million and $1.6 million, respectively, in the current quarter. Excluding the acquisition of Clark and foreign exchange, operating expenses increased $10.0 million, or 6.2%, primarily due to variable costs associated with the 9.0% organic growth in sales and higher variable compensation related costs.

     Operating Income: The operating margin of 7.4% in the second quarter of 2011 compares to 6.4% in the second quarter of 2010. The improvement in operating margin reflects a sales mix driven gross margin improvement. Operating income increased by $21.5 million, or 33.8%, in the second quarter of 2011 as compared to the year ago quarter. Favorable foreign exchange rate changes, the acquisition and higher copper prices increased operating income by $1.2 million, $0.9 million and $5.0 million, respectively.

20

ANIXTER INTERNATIONAL INC.

Europe Results of Operations

	Three Months Ended
	July 1,		July 2,			Percent
	2011		2010			Change
			(In millions)
Net sales	$	296.0	$	251.9			17.5	%
Gross profit	$	72.0	$	58.8			22.5	%
Operating expenses	$	67.2	$	59.5			12.8	%
Operating income (loss)	$	4.8	$	(0.7	)	nm

nm  — not meaningful

     Net Sales: When compared to the second quarter of 2010, Europe net sales increased 17.5% to $296.0 million in the second quarter of 2011, including $3.1 million due to higher copper prices. Favorable foreign exchange rates increased net sales by $26.9 million in the second quarter of 2011. Excluding copper price effects and the favorable effects of foreign exchange rate changes, Europe net sales were $266.0 million in the second quarter of 2011, which represents an organic increase of $14.1 million, or approximately 5.6%, over the second quarter of 2010. This growth is driven by higher sales in the OEM Supply end market due to the increased manufacturing production in most vertical markets, together with solid growth in the Enterprise Cabling and Security end market.

     Gross Margin: Gross margin in the three months ended July 1, 2011 was 24.3% compared to 23.3% in the corresponding period in 2010. The increase in gross margin is primarily due to stronger sales in the higher margin OEM Supply end market as compared to the sales growth in the other end markets. The effects of higher copper prices did not impact gross margin percentages significantly; however, the effects of higher copper prices increased gross profit dollars by $0.2 million in the second quarter of 2011 as compared to the corresponding period in the prior year.

     Operating Expenses: Operating expenses increased $7.7 million, or 12.8%, in the second quarter of 2011 compared to the second quarter of 2010. Foreign exchange rate changes increased operating expenses by $6.2 million in the second quarter of 2011. Excluding the foreign exchange rate changes, operating expenses increased $1.5 million, or 2.3%, primarily due to variable costs associated with the 5.6% organic growth in sales in the second quarter.

     Operating Income: Operating profit was $4.8 million in the second quarter compared to an operating loss of $0.7 million in the year ago period. Copper prices increased Europe’s operating income by $0.2 million in the second quarter of 2011. Foreign exchange rate changes resulted in a favorable impact of $0.2 million during the second quarter of 2011. Europe operating margin of 1.6% in the second quarter of 2011 compared to a negative 0.3% in the year ago quarter.

     Emerging Markets Results of Operations

	Three Months Ended
	July 1,		July 2,		Percent
	2011		2010		Change
			(In millions)
Net sales	$	175.5	$	131.9		33.1	%
Gross profit	$	34.2	$	28.7		19.2	%
Operating expenses	$	26.0	$	21.2		22.9	%
Operating income	$	8.2	$	7.5		8.9	%

     Net Sales: Emerging Markets (Asia Pacific and Latin America) net sales in the second quarter of 2011 increased 33.1% to $175.5 million from $131.9 million in the second quarter of 2010. Excluding the favorable impact from changes in foreign exchange rates of $8.5 million, Emerging Markets net sales increased 26.7%. All end markets contributed to the increase in sales in the second quarter of 2011 as compared to the year ago quarter. The Company continues to invest in initiatives to increase market penetration and expand product lines to drive growth in selected countries within Emerging Markets.

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ANIXTER INTERNATIONAL INC.

     Gross Margin: During the three months ended July 1, 2011, Emerging Markets gross margin decreased to 19.5% from 21.7% in the corresponding period in 2010. This decline was primarily driven by a change in the mix of sales among various countries and end markets combined with an increase in sales of lower margin communication products in Latin America. As the Company continues to grow its sales from the initiative to expand the Company’s Wire and Cable end market, a large portion of the sales increase is related to lower margin project business.

     Operating Expenses: Operating expenses increased $4.8 million in the second quarter of 2011, or 22.9%, compared to the second quarter of 2010. Foreign exchange rate changes increased operating expenses by $1.2 million as compared to the year ago period. Excluding the effects of foreign exchange rate changes, operating expenses increased 17.3% as compared to the year ago quarter. This increase in operating expenses is in part due to investments within Latin America to expand the Company’s presence in the Electrical Wire and Cable end market and the addition of new Emerging Markets locations.

     Operating Income: Emerging Markets operating income increased $0.7 million, or 8.9%, in the second quarter of 2011 compared to the second quarter of 2010. The impact of foreign exchange rates increased operating income by $0.4 million. Operating margin in the second quarter of 2011 and 2010 was 4.6% and 5.7%, respectively.

Six Months Ended July 1, 2011 Results of Operations

Consolidated Results of Operations

	Six Months Ended
	July 1,		July 2,		Percent
	2011		2010		Change
			(In millions)
Net sales	$	3,130.3	$	2,639.8		18.6	%
Gross profit	$	726.0	$	602.7		20.5	%
Operating expenses	$	545.1	$	475.6		14.6	%
Operating income	$	180.9	$	127.1		42.4	%

     Net Sales: The Company’s net sales during the six months ended July 1, 2011 increased $490.5 million, or 18.6%, compared with the year ago period. Favorable effects of foreign exchange rates increased sales by $67.2 million while an increase in copper prices and the fourth quarter of 2010 acquisition of Clark increased sales in the first half of 2011 by $55.6 million and $59.3 million, respectively, as compared to the year ago period. Excluding the favorable effects of foreign exchange rates, copper prices and the fourth quarter of 2010 acquisition, the Company’s net sales increased $308.4 million, or approximately 11.7%, in the first six months of 2011 as compared to the first six months of 2010. All geographic segments as well as all worldwide end markets (Enterprise Cabling and Security, Electrical Wire and Cable and OEM Supply) reported year-on-year organic sales growth.

     Gross Margin: Gross margin increased in the first six months of 2011 to 23.2% as compared to 22.8% in the prior year period mainly due to an improvement in the overall sales mix by end market. The effects of higher copper prices did not impact gross margin percentages significantly; however, the effects of copper prices did increase gross profit dollars by $10.2 million in the first six months of 2011 as compared to the prior year. The Company continues to be pleased with the stabilization of gross margin over the last three quarters. This trend, along with an improving daily sales run rate, is a positive indicator that the economic recovery has resonated in most parts of the Company’s business. However, gross margin continues to be negatively impacted by cost pressures in the European OEM Supply business due to significant unilateral cost increases from European based fastener manufacturers. Despite the Company’s success in negotiating price increases from its customers that offset the initial price increases from suppliers, the Company is now dealing with additional supplier price increases. The Company’s level of success of negotiating customer pricing in the context of long term contractual agreements, while selectively resourcing some of these components to lower cost manufacturers, will determine the extent to which the Company can offset these gross margin pressures over time.

22

ANIXTER INTERNATIONAL INC.

     Operating Expenses: Operating expenses increased 14.6% from $475.6 million in the year ago period to $545.1 million in the first six months of 2011. The first half of 2011 operating expenses include an incremental $16.9 million related to the Clark acquisition, $5.3 million for a restructuring charge to rationalize the European cost structure and $12.6 million due to changes in foreign exchange rates. Excluding these items, operating expenses increased $34.7 million, or 7.3%, on a 11.7% organic increase in sales. The current period increase in operating expenses reflects higher variable costs associated with the increase in organic sales, including higher variable incentive costs.

     Operating Income: Operating income increased by $53.8 million, or 42.4%, to $180.9 million in the first six months of 2011 as compared to $127.1 million in the first six months of 2010. The Clark acquisition, favorable foreign exchange rate changes and higher copper prices increased operating income by $1.5 million, $2.6 million and $10.2 million, respectively. The operating margin of 5.8% in the first half of 2011 compares to 4.8% in the year ago period. Excluding the restructuring charge, operating margin was 6.0%. The strong operating margin improvement was driven by both a higher gross margin and better operating leverage on higher sales.

     Interest Expense: Consolidated interest expense was $25.6 million and $28.8 million in the first six months of 2011 and 2010, respectively. The decrease in interest expense was driven by a lower average cost of debt than in the year ago quarter. The Company’s average cost of debt was 5.1% in the first six months of 2011, down from the 6.8% level of the first six months of 2010 primarily due to the retirement of higher cost debt in the first quarter of last year. At the end of the first six months of 2011, approximately 59.6% of the Company’s outstanding debt had fixed interest rates either by the terms of the debt or through hedging contracts.

     Early Retirement of Debt: The first six months of 2011 included a pre-tax gain of $0.1 million related to the early retirement of the Notes due 2033. This gain was fully offset by a pre-tax loss related to the refinancing of certain credit facilities. During the first half of 2010, the Company retired a portion of its Notes due 2014 and Notes due 2033. The retirement of the Notes due 2014 resulted in the recognition of a pre-tax loss of $30.5 million while the retirement of the Notes due 2033 resulted in a pre-tax gain of $0.8 million.

     Other, net: The following represents the components of “Other, net” as reflected in the Company’s Condensed Consolidated Statements of Operations for the first six months of 2011 and 2010:

	Six Months Ended
	July 1,			July 2,
	2011			2010
	(In millions)
Foreign exchange	$	(1.1	)	$	(1.2	)
Cash surrender value of life insurance policies		0.7			0.3
Other		(0.7	)		(0.2	)
	$	(1.1	)	$	(1.1	)

     Due to the weakening of the U.S. dollar against certain foreign currencies, primarily in the Emerging Markets where there are few cost-effective means of hedging, the Company recorded foreign exchange losses of $1.1 million and $1.2 million in the first six months of 2011 and 2010, respectively. Due to the remeasurement of the Venezuelan bolivar, the foreign exchange loss for the first six months of 2010 includes a foreign exchange gain of $2.1 million.

     Income Taxes: The tax provision for the six months ended July 1, 2011 was $57.8 million compared to $27.0 million in the corresponding period of last year. The Company’s effective tax rate for the six months ended July 1, 2011 was 37.5% as compared to 40.0% in the prior year period. The lower effective tax rate in the six months ended July 1, 2011 is primarily the result of improved earnings in all reporting segments and various foreign tax effects. The difference between the statutory corporate federal tax rate of 35% and the Company’s effective tax rate was primarily due to state income taxes.

23

ANIXTER INTERNATIONAL INC.

     Net Income: For the first six months of 2011, the Company reported net income of $96.4 million, or $2.66 per diluted share, compared to $40.5 million, or $1.14 per diluted share, reported in the year ago period. The year-on-year comparisons were impacted by the European restructuring charge of $0.09 per diluted share in the first six months of 2011 and the net loss on the retirement of debt and the gain on the remeasurement of the Venezuelan bolivar in the prior year quarter of $0.49 per diluted share. Excluding these items from both years, net income would have been $99.7 million, or $2.75 per diluted share, as compared to $58.1 million, or $1.63 per diluted share, in the year ago period, an increase of 71.6%.

North America Results of Operations

	Six Months Ended
	July 1,		July 2,		Percent
	2011		2010		Change
			(In millions)
Net sales	$	2,211.0	$	1,879.5		17.6	%
Gross profit	$	518.9	$	430.2		20.6	%
Operating expenses	$	358.2	$	316.0		13.4	%
Operating income	$	160.7	$	114.2		40.7	%

     Net Sales: When compared to the first six months of 2010, North America net sales in the first six months of 2011 increased 17.6% to $2,211.0 million from $1,879.5 million. Excluding favorable effects of foreign exchange rate changes, the impact of the acquisition of Clark and copper prices of $23.0 million, $59.3 million and $48.6 million, respectively, North America net sales were $2,080.1 million in the first six months of 2011, which represents an increase of $200.6 million, or approximately 10.7%, as compared to the corresponding period in the prior year.

     Gross Margin: Gross margin increased to 23.5% in the first six months of 2011 from 22.9% in the first six months of 2010 mainly due to improved end market sales mix. The effects of higher copper prices did not impact gross margin percentages significantly; however, the effects of copper prices did increase gross profit dollars by $8.9 million in the first six months of 2011 compared to the corresponding period in the prior year.

     Operating Expenses: Operating expenses increased $42.2 million, or 13.4%, in the first six months of 2011 from the year ago period. The acquisition of Clark and foreign exchange rate changes increased operating expenses by $16.9 million and $3.2 million, respectively, in the current quarter. Excluding the acquisition of Clark and foreign exchange, operating expenses increased $22.1 million, or 7.0%, primarily due to variable costs associated with the 10.7% organic growth in sales and higher variable compensation related costs.

     Operating Income: The operating margin of 7.3% in the first six months of 2011 compared to 6.1% in the first six months of 2010. The improvement in operating margin was driven by sales mix. Operating income increased by $46.5 million, or 40.7%, in the first six months of 2011 as compared to the year ago period. Favorable foreign exchange rate changes, the acquisition and higher copper prices increased operating income by $1.9 million, $1.5 million and $8.9 million, respectively.

Europe Results of Operations

	Six Months Ended
	July 1,		July 2,			Percent
	2011		2010			Change
			(In millions)
Net sales	$	587.3	$	505.1			16.3	%
Gross profit	$	141.6	$	118.3			19.7	%
Operating expenses	$	136.8	$	118.5			15.4	%
Operating income (loss)	$	4.8	$	(0.2	)	nm

nm  —  not meaningful

24

ANIXTER INTERNATIONAL INC.

     Net Sales: When compared to the first six months of 2010, Europe net sales increased 16.3% to $587.3 million in the first six months of 2011, including $7.0 million due to higher copper prices. Favorable foreign exchange rates increased net sales by $30.8 million in the first six months of 2011. Excluding copper price effects and the favorable effects of foreign exchange rate changes, Europe net sales were $549.5 million in the first six months of 2011, which represents an organic increase of $44.4 million, or approximately 8.8%, over the first six months of 2010. This growth is driven by higher sales in the OEM Supply end market due to the increased manufacturing production in most vertical markets, together with solid growth in the Enterprise Cabling and Security end market.

     Gross Margin: Gross margin in the six months ended July 1, 2011 was 24.1% compared to 23.4% in the corresponding period in 2010. The increase in gross margin is primarily due to stronger sales in the higher margin OEM Supply end market as compared to the sales growth in the other end markets. The effects of higher copper prices did not impact gross margin percentages significantly; however, the effects of higher copper prices increased gross profit dollars by $1.3 million in the first six months of 2011 as compared to the corresponding period in the prior year.

     Operating Expenses: Operating expenses increased $18.3 million, or 15.4%, in the first six months of 2011 compared to the first six months of 2010. The restructuring charge and foreign exchange rate changes increased operating expenses by $5.3 million and $7.3 million, respectively, in the first six months of 2011. Excluding the restructuring charge and foreign exchange, operating expenses increased $5.7 million, or 4.8%, primarily due to variable costs associated with the 8.8% organic growth in sales in the first six months.

     Operating Income: Operating profit was $4.8 million in the first six months, including the $5.3 million restructuring charge, which compared to an operating loss of $0.2 million in the year ago period. Copper prices increased Europe’s operating income by $1.3 million in the first six months of 2011. Foreign exchange rate changes resulted in a favorable impact of $0.1 million on the operating income during the first six months of 2011. Europe operating margin, excluding the restructuring charge, was 1.7% in the first six months of 2011 compared to no operating margin in the year ago period.

Emerging Markets Results of Operations

	Six Months Ended
	July 1,		July 2,		Percent
	2011		2010		Change
			(In millions)
Net sales	$	332.0	$	255.2		30.1	%
Gross profit	$	65.5	$	54.2		20.9	%
Operating expenses	$	50.1	$	41.1		22.1	%
Operating income	$	15.4	$	13.1		17.1	%

     Net Sales: Emerging Markets (Asia Pacific and Latin America) net sales in the first six months of 2011 increased 30.1% to $332.0 million from $255.2 million in the first six months of 2010. Excluding the favorable impact from changes in foreign exchange rates of $13.4 million, Emerging Markets net sales increased 24.9%. All end markets contributed to the increase in sales in the first six months of 2011 as compared to the year ago period. The Company continues to invest in initiatives to increase market penetration and expand product lines to drive growth in selected countries within Emerging Markets.

     Gross Margin: During the six months ended July 1, 2011, Emerging Markets gross margin decreased to 19.7% from 21.3% in the corresponding period in 2010. This decline was primarily driven by a change in the mix of sales among various countries and end markets combined with less favorable product mix. As the Company continues to grow its sales from the initiative to expand the Company’s Wire and Cable end market, a large portion of the sales increase is related to lower margin project business.

     Operating Expenses: Operating expenses increased $9.0 million in the first six months of 2011, or 22.1%, compared to the first six months of 2010. Foreign exchange rate changes increased operating expenses by $2.1 million as compared to the year ago period. Excluding the effects of foreign exchange rate changes, operating expenses increased 17.1% as compared to the year ago period. This increase in operating expenses is in part due to

25

ANIXTER INTERNATIONAL INC.

investments within Latin America to expand the Company’s presence in the Electrical Wire and Cable end market and the addition of new Emerging Markets locations.

     Operating Income: Emerging Markets operating income increased $2.3 million, or 17.1%, in the first six months of 2011 compared to the first six months of 2010. The impact of foreign exchange rates increased operating income by $0.6 million. Operating margin in the first six months of 2011 was 4.6% compared to 5.1% in the first six months of 2010.

Critical Accounting Policies and New Accounting Pronouncements

     There were no material changes in the Company’s critical accounting policies since the filing of its 2010 Form 10-K. For further information about recently issued accounting pronouncements, see Note 1. “Summary of Significant Accounting Policies” in the Notes to the Condensed Consolidated Financial Statements. As discussed in the 2010 Form 10-K, the preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States requires management to make certain estimates and assumptions that affect the amount of reported assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and revenues and expenses during the periods reported. Actual results may differ from those estimates.

26

ANIXTER INTERNATIONAL INC.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

     There were no material changes to the Company’s market risks and related disclosures in Item 7A. of Part II in its Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the Securities and Exchange Commission on February 28, 2011.

ITEM 4. CONTROLS AND PROCEDURES.

     Under the supervision and with the participation of the Company’s management, including its principal executive officer and principal financial officer, the Company conducted an evaluation as of July 1, 2011 of the effectiveness of the design and operation of its disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended (“Exchange Act”). Based on this evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective as of July 1, 2011. There was no change in the Company’s internal control over financial reporting that occurred during the three months ended July 1, 2011 that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

27

ANIXTER INTERNATIONAL INC.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS.

     Information regarding legal proceedings is contained in Note 12. “Legal Contingencies” to the Condensed Consolidated Financial Statements contained in this Report and is incorporated herein by reference.

ITEM 1A. RISK FACTORS.

     There were no material changes to the risk factors disclosed in Item 1A of Part 1 in our Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the Securities and Exchange Commission on February 28, 2011.

28

ANIXTER INTERNATIONAL INC.

ITEM 6. EXHIBITS.

(10)	Material contracts.
10.1	Anixter Amended and Restated Excess Benefit Plan effective January 1, 2011.
(31)	Rule 13a — 14(a) / 15d — 14(a) Certifications.
31.1	Robert J. Eck, President and Chief Executive Officer, Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Theodore A. Dosch, Executive Vice President-Finance and Chief Financial Officer, Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(32)	Section 1350 Certifications.
32.1	Robert J. Eck, President and Chief Executive Officer, Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Theodore A. Dosch, Executive Vice President-Finance and Chief Financial Officer, Certification Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS*	XBRL Instance Document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document

* Attached as Exhibit 101 to this report are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Statements of Income for the three and six months ended July 1, 2011 and July 2, 2010, (ii) the Condensed Consolidated Balance Sheets at July 1, 2011 and December 31, 2010, (iii) the Condensed Consolidated Statements of Cash Flows for the six months ended July 1, 2011 and July 2, 2010, and (iv) Notes to Condensed Consolidated Financial Statements for the six months ended July 1, 2011. Users of this data are advised pursuant to Rule 406T of Regulation S-T that this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities and Exchange Act of 1934, and otherwise is not subject to liability under these sections.

29

ANIXTER INTERNATIONAL INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	ANIXTER INTERNATIONAL INC.
August 5, 2011	By:	/s/ Robert J. Eck
		Robert J. Eck
		President and Chief Executive Officer
August 5, 2011	By:	/s/ Theodore A. Dosch
		Theodore A. Dosch
		Executive Vice President — Finance and Chief Financial Officer

30

EX-10.1

EXHIBIT 10.1

ANIXTER INC. EXCESS BENEFIT PLAN

—CONFIDENTIAL—

Excess Benefit Plan
January 1, 2011

1

ANIXTER INC. EXCESS BENEFIT PLAN

AMENDED AND RESTATED EFFECTIVE JANUARY 1, 2011

Anixter Inc. (the “Company”) established the Anixter Bros., Inc. Excess Benefit Plan effective as of August 1, 1985, which was in 2009 restated and renamed to Anixter Inc. Excess Benefit Plan (the “Excess Plan”). The purpose of the Excess Plan is to provide the benefits which designated participants in the Anixter Inc. Pension Plan as Amended and Restated Effective January 1, 2011 (the “Pension Plan”) would have received under the Pension Plan except for the maximum benefit limitations prescribed by the Pension Plan and the Internal Revenue Code of 1986, as amended (the “Code”).

Prior to 2011, only certain designated employees who are entitled to receive a pension benefit under the benefit formula set forth in section 7.01(a) of the Pension Plan participated in the Excess Plan. Effective January 1, 2011, certain designated employees who are entitled to receive a pension benefit under the benefit formula set forth in section 7.01(c) of the Pension Plan will also participate in the Excess Plan.

     1. Definitions:

(a)	“Actuarially Equivalent” shall have the meaning ascribed in section 1.01 of the Pension Plan.
(b)	“Beneficiary” shall have the meaning ascribed in section 1.03 of the Pension Plan.
(c)	“Benefit Limitations” shall mean the limitations prescribed by sections 415 and 401(a)(17) of the Code and relevant provisions of the Pension Plan in the calculation of retirement benefits under the Pension Plan.
(d)	“Board” shall mean the Board of Directors of the Company.
(e)	“Committee” shall mean the Anixter Inc. Employee Benefits Administrative Committee.
(f)	“Disability” shall mean, consistent with the requirements of Code Section 409A, that the Participant is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months; (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, receiving income replacement benefits for a period of not less than three (3) months under an accident and health plan covering employees of the Company; or (iii) determined to be totally disabled by the Social Security Administration or the Railroad Retirement Board.

Excess Benefit Plan
January 1, 2011

2

(g)	“Hypothetical Personal Retirement Account” shall have the meaning ascribed in section 7.01(c) of the Pension Plan.
(h)	“Hypothetical Personal Retirement Account Contribution” shall have the meaning ascribed in section 7.01(c) of the Pension Plan.
(i)	“Hypothetical Personal Excess Benefit Account” shall mean a hypothetical bookkeeping account maintained by the Company on behalf of each Section 7.01(c) Participant reflecting credits and adjustments as set forth under the Excess Plan.
(j)	“Initial Participation Year” shall mean, with respect to a Section 7.01(c) Participant, the Plan Year in which such Participant is designated by the Board as a Participant in the Excess Plan.
(k)	“Joint and Survivor Annuity” shall mean a monthly annuity that is paid to the retired Participant with a survivor annuity paid during the life of the surviving spouse or nonspouse Beneficiary after the Participant’s death.
(l)	“Life Annuity” shall mean a monthly annuity that is paid to the retired Participant for as long as he lives and which does not provide for any payments to a Beneficiary following the Participant’s death.
(m)	’’Normal Retirement Date” shall mean the first day of the month coincident with or next following a Participant’s sixty-fifth (65th) birthday.
(n)	“Participant” shall mean an employee of the Company who participates in the Excess Plan.
(o)	“Plan Year” shall mean calendar year.
(p)	“Retirement” shall mean a Participant’s Separation from Service which occurs on or after his attainment of age fifty-five (55).
(q)	“Section 7.01(a) Participant” shall mean a Participant who is entitled to receive a benefit under the benefit formula set forth in section 7.01(a) of the Pension Plan.
(r)	“Section 7.01(c) Participant” shall mean a Participant who is entitled to receive a benefit under the benefit formula set forth in section 7.01(c) of the Pension Plan.
(s)	“Separation from Service” shall have the meaning as defined under Treasury Regulation § 1.409A-1(h)(1)(i).
(t)	“To Vest” or “To Be Vested” shall have the same meaning ascribed in section 1.40 of the Pension Plan.

Excess Benefit Plan
January 1, 2011

3

     2. Eligibility and Participation: An employee of the Company shall be a participant in and entitled to benefits under the Excess Plan if

(a)	He is a participant in the Pension Plan, and
(b)	He is designated as a Participant in this Excess Plan by the Board.

     3. Amount of’ Benefit:

(a) With respect to a Section 7.01(a) Participant, the amount of the benefit under the Excess Plan shall be the amount by which (i) below exceeds (ii) below:

(i) The amount of the benefit which the Participant or his or her Beneficiary would have been entitled to receive under the Pension Plan

A.	without regard to the Benefit Limitations and
B.	without regard to the additional benefit described in Supplement 3 and subsequent Supplements to the Pension Plan, if any.

(ii) The amount of the benefit which the Participant or his or her Beneficiary is entitled to receive under the Pension Plan, including the additional benefit described in Supplement 3 and subsequent Supplements to the Pension Plan.

(b)	With respect to a Section 7.01(c) Participant, the amount of the benefit under the Excess Plan shall be the balance of his or her Hypothetical Personal Excess Benefit Account reduced, but not below zero, by the additional amounts credited to the Hypothetical Personal Retirement Account, if any, listed in Supplement 3 and subsequent Supplements to the Pension Plan.
	For purposes of this section, “Pay Credit” shall mean, with respect to a Section 7.01(c) Participant for a Plan Year, an amount equal to the excess, if any, of (i) below over (ii) below:

(i) The Hypothetical Personal Retirement Account Contribution to which such Participant would have been entitled under the Pension Plan for such Plan Year if such Hypothetical Personal Retirement Account Contribution were assumed to be calculated

A.	using the definition of “Salary” under section 1.35(a)(2) of the Pension Plan instead of the definition of “Salary” under section 1.35(b) of the Pension Plan and
B.	without regard to the Benefit Limitations.

Excess Benefit Plan
January 1, 2011

4

(ii) The Hypothetical Personal Retirement Account Contribution to which such Participant is in fact entitled under the Pension Plan for such Plan Year.

During the Initial Participation Year of a Section 7.01(c) Participant, there shall be credited to the Participant’s Hypothetical Personal Excess Benefit Account an amount equal to the sum of the Participant’s Pay Credit for each Plan Year that is among the Plan Years from (i) the Plan Year in which the Participant was most recently hired or the Plan Year commencing on January 1, 2011, whichever Plan Year is later, to (ii) the Participant’s Initial Participation Year. During any Plan Year subsequent to the Participant’s Initial Participation Year, there shall be credited to the Participant’s Hypothetical Personal Excess Benefit Account an amount equal to his or her Pay Credit for that subsequent Plan Year. The credits in this paragraph shall be applied as of the last day of the Plan Year or as of such other times in the Plan Year as the Hypothetical Personal Retirement Account Contribution is applied under the Pension Plan in such Plan Year.

In January of each Plan Year commencing on or after January 1, 2011, there shall be credited to the Hypothetical Personal Excess Benefit Account of each Section 7.01(c) Participant an interest credit equal to an amount calculated by multiplying (i) by (ii) below:

(i)	The balance of the Participant’s Hypothetical Personal Excess Benefit Account, if any, as of January 1 of the calendar year preceding the year in which the interest credit is applied.
(ii)	The annual rate on 10-year Treasury securities as of the last business day of the second calendar year preceding the year in which the interest credit is applied.

     4. Benefit Payments with respect to Section 7.01(a) Participants: Any former Section 7.01(a) Participant who terminated employment with the Company on or before December 31, 2004, was fully vested in the Excess Plan and received no further accruals after that date shall have his benefits payable at the same time and in the same manner and form as the benefits under the Pension Plan. Benefit payments to all other Section 7.01(a) Participants shall be made as follows.

(a) Normal Benefit Commencement Date. Unless a Participant has made a timely election under subsection (b) below, the payment of benefits under the Excess Plan will commence on the first day of the month coincident with or next following the date when a Participant no longer performs services for the Company due to: (i) Retirement; (ii) Disability; or (iii) if the Participant has made an election to receive his or her benefits in the form of a 50% Joint and Survivor Annuity under subsection (c) below, death. Notwithstanding anything herein to the contrary, in the event that a Participant incurs a Separation from Service prior to obtaining age fifty-five (55), payment of his benefit shall not commence until

Excess Benefit Plan
January 1, 2011

5

the later of the first day of’ the month coincident with or next following the date that such Participant attains age sixty-five (65), or such other later date as provided herein.

(b)	Optional Benefit Commencement Date. A Participant may elect to delay the normal benefit commencement date specified in subsection (a) above to commence on the first day of any month after he no longer performs services for the Company due to an event described in subsections (a)(i) through (a)(iii) above in accordance with this subsection (b). If eligible to make an election under this subsection (b), a Participant may elect to delay commencement of benefits to any permissible date up to his Normal Retirement Date, and such Participant’s monthly benefit amount as of such commencement date shall be adjusted so as to be Actuarially Equivalent to a Life Annuity (or Joint and Survivor Annuity, if so elected) commencing on his Normal Retirement Date. To be effective, any such election of an optional benefit commencement date must meet all of the following requirements: (i) the election must be made not less than twelve (12) months prior to the date benefits would have otherwise commenced; (ii) unless a payment relates to Disability or death, the election must be made before the Participant attains age sixty (60), and commencement of benefit payments must be deferred for a period of no less than five (5) years from the date the benefit payments would otherwise have commenced; and (iii) the election shall not take effect until at least twelve (12) months after the date on which such election is made.
(c)	Form of Payment. The normal form of payment of benefits under the Excess Plan shall be a Life Annuity. Notwithstanding the foregoing, a Participant may choose to receive his benefits under the Excess Plan in the form of a 50% Joint and Survivor Annuity for the life of the Participant and any Beneficiary, rather than in the form of a Life Annuity. If the Participant designates a Beneficiary which is not an individual, the Beneficiary shall be deemed to have the same life expectancy as the Participant. In such event, the monthly Joint and Survivor. Annuity benefits shall be adjusted so as to be Actuarially Equivalent to the Participant’s monthly Life Annuity benefit, and the amount of the survivor. annuity shall be fifty percent (50%) of the Participant’s monthly Joint and Survivor Annuity benefit payable to the Participant.
(d)	Cash Out of Small Amounts. Notwithstanding the request of a Participant or Beneficiary, if the present value of a Participant’s benefit as of his commencement date is calculated to be less than the applicable dollar amount for elective deferrals under Code Section 402(g)(l)(B) then in effect (as adjusted for cost-of-living increases under Code Section 402(g)(4)), the Company shall distribute the Participant’s benefit in a lump sum to the Participant or Beneficiary as soon as practicable on or after such Participant’s commencement date.
(e)	Delay in Commencement for Specified Employees. Notwithstanding anything in this Section 4 to the contrary, if a Participant is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) of the Code as of the date he no longer

Excess Benefit Plan
January 1, 2011

6

performs services for the Company due to an event specified in subsections (a)(i) through (a)(iii) above, no benefit shall be paid from the Excess Plan sooner than the first day of’ the month that is at least six (6) months after such date. In such event, the benefit shall be determined as if payments had commenced as originally provided herein, and the first payment to the Participant shall include an amount equal to the sum of periodic payments which would have been paid to such Participant but for the six (6) month delay required by section 409A(a)(2)(B)(9) of the Code.

     5. Benefit Payments with respect to Section 7.01(c) Participants: Benefit payments to all Section 7.01(c) Participants shall be made in a single sum on the first day of the month coincident with or next following six (6) months after the Participant’s Separation from Service due to (i) Retirement; (ii) Disability; (iii) death, or (iv) termination. Notwithstanding the preceding sentence, a Section 7.01(c) Participant will not receive any benefit under this Excess Plan unless he or she, as of the date of his or her Separation from Service, is Vested in the pension benefit provided by the benefit formula set forth in section 7.01(c) of the Pension Plan.

     6. Funding: The benefits under the Excess Plan shall be paid from the general assets of the Company. The Company shall not be required to segregate any assets to be used for payment of benefits under the Excess Plan.

     7. General Provisions:

(a)	Employment Rights. The Excess Plan does not constitute a contract of employment and participation in the Excess Plan will not give any employee the right to be retained in the employment of the Company, or any right or claim to a benefit under the Excess Plan unless specifically provided by the Excess Plan.
(b)	Interests Not Transferable. The interests of persons entitled to benefits under the Excess Plan are not subject to their debts or other obligations and, except as may be required by the tax withholding provision of the Code, or any state’s income tax act or pursuant to compliance with a qualified domestic relations order pursuant to the Employee Retirement Income Security Act of 1974, as amended, may not be voluntarily or involuntarily transferred, assigned, alienated or encumbered.
(c)	Controlling Law. The internal laws of Illinois excepting any conflicts of law provisions shall be controlling in all matters relating to the Excess Plan except to the extent superseded by the laws of the United States.
(d)	Gender and Number. Where the context admits, words in the masculine gender shall include the feminine gender, the singular shall include the plural and the plural shall include the singular.

Excess Benefit Plan
January 1, 2011

7

(e)	Action by Company. Any action required or permitted by the Company under the Excess Plan shall be by resolution of its Board or any persons authorized by resolution of its Board.
(f)	Interpretation. This Excess Plan shall be administered and interpreted by the Board in its discretion or as delegated to the Committee, and all Participants shall be bound by the decision of’ the Board or the Committee, which shall be final and conclusive.

     8. Committee Administration:

(a)

In General. The Excess Plan shall be administered by the Committee or any successor thereto, which shall have the sole authority to construe and interpret the terms and provisions of the Excess Plan and determine the amount, manner and time of payment of any benefits hereunder. The Committee shall maintain records, make the requisite calculations and disburse payments hereunder, and its interpretations, determinations, regulations and calculations shall be final and binding on all persons and parties concerned. The Committee may adopt such rules as it deems necessary, desirable or appropriate in administering the Excess Plan and the Committee may act at a meeting, in writing without a meeting, or by having actions otherwise taken by a member of the Committee pursuant to a delegation of duties from the Committee. The Committee may, in its discretion, delegate its duties to an officer or other employee of the Company, or to a committee composed of officers or employees of the Company. The determination of the Committee as to any disputed questions arising under this Excess Plan, whether of law or of fact, or mixed questions of law and fact, including questions of construction and interpretation, shall be final, binding, and conclusive upon all persons. No member of the Committee may act, vote, or otherwise influence a decision of the Committee specifically relating to his benefits, if’ any, under the Excess Plan.

(b)

Claims Procedure. If the Committee denies a benefit, in whole or in part, it shall advise the Participant or Beneficiary, as applicable, of (i) the specific basis or bases for the denial (ii) references to the specific Excess Plan provisions upon which the denial is based (iii) a description of any additional material or information that the Participant or beneficiary needs to process the claim, and an explanation of why that material or information is necessary; and (iv) a statement of the Excess Plan’s appeal procedures as hereinafter set forth. Any person dissatisfied with the Committee’s determination of a claim for benefits hereunder must file a written request for reconsideration with the Committee within sixty (60) days of the denial by the Committee. Such person has the right to request, free of charge, and obtain copies of all documents, records, and other information that was relied upon by the Committee in denying such person’s benefits or was submitted, considered, or generated in the course of making the benefit denial, regardless of whether it was used in denying the claim. This request must include a written explanation setting forth the specific reasons for such reconsideration.

Excess Benefit Plan
January 1, 2011

8

The Committee shall review its determination within sixty (60) days, plus an extension for an additional sixty (60) days in special circumstances, and render a written decision with respect to the claim, setting forth the specific reasons for such denial written in a manner calculated to be understood by the claimant. Such decision upon matters within the scope of the authority of the Committee shall be conclusive, binding, and final upon all claimants under this Excess Plan. No claimant may bring any action challenging a decision of the Committee at any time more than one year after the final written decision of the Committee is rendered.

(c) Indemnity of Committee. To the maximum extent permitted by applicable law, the Company shall indemnify, hold harmless and defend the Committee, each member of the Committee, any employee of the Company, or any individual acting as an employee or agent of any of it (to the extent not indemnified or saved harmless under any liability insurance or any other indemnification arrangement) from any and all claims, losses, damages, liabilities, costs and expenses (including attorneys’ fees) arising out of any actual or alleged act or failure to act made in good faith in connection with the Excess Plan (or any related trust agreement), including expenses reasonably incurred in the defense of any claim relating thereto.

     9. Amendment or Termination: The Company may amend or terminate the Excess Plan at any time, except that, without the consent of any Participant in the Excess Plan, no such amendment or termination shall reduce his right to receive any benefit accrued hereunder prior to the date of such amendment or termination.

          IN WITNESS WHEREOF, the Company has caused this restatement of the Anixter Inc. Excess Benefit Plan to be executed by its duly authorized officer as of this 20^th day of April, 2011 to be effective as of January 1, 2011.

Anixter Inc.
By:	/s/ Rodney A. Smith
	Rodney A. Smith
Title: V.P. Human Resources

Excess Benefit Plan
January 1, 2011

9

EX-31.1

EXHIBIT 31.1

PRESIDENT AND CHIEF EXECUTIVE OFFICER CERTIFICATION

I, Robert J. Eck, certify that:

(1)	I have reviewed this quarterly report on Form 10-Q of Anixter International Inc.;
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 5, 2011	/s/ Robert J. Eck
	Robert J. Eck
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

EXECUTIVE VICE PRESIDENT — FINANCE AND CHIEF FINANCIAL OFFICER CERTIFICATION

I, Theodore A. Dosch, certify that:

(1)	I have reviewed this quarterly report on Form 10-Q of Anixter International Inc.;
(2)	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
(3)	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
(4)	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b)	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c)	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d)	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

(5) The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b)	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

August 5, 2011	/s/ Theodore A. Dosch
	Theodore A. Dosch
	Executive Vice President-Finance and Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the quarterly report of Anixter International Inc. (the “Company”) on Form 10-Q for the period ending July 1, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”) I, Robert J. Eck, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Robert J. Eck  

Robert J. Eck 

President and Chief Executive Officer 

August 5, 2011

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

     In connection with the quarterly report of Anixter International Inc. (the “Company”) on Form 10-Q for the period ending July 1, 2011 as filed with the Securities and Exchange Commission on the date hereof (“the Report”) I, Theodore A. Dosch, Executive Vice President-Finance and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Sec. 906 of the Sarbanes-Oxley Act of 2002, that to my knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Theodore A. Dosch  

Theodore A. Dosch 

Executive Vice President-Finance and
Chief Financial Officer 

August 5, 2011

XML



Condensed Consolidated Balance Sheets (USD $) In Millions	Jul. 01, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 98.7	$ 78.4
Accounts receivable, net (Includes $517.9 at July 1, 2011 and $407.8 at December 31, 2010 associated with securitization facility)	1,220.3	1,099.3
Inventories	1,143.7	1,002.7
Deferred income taxes	58.3	50.3
Other current assets	38.0	50.5
Total current assets	2,559.0	2,281.2
Property and equipment, at cost	306.0	288.9
Accumulated depreciation	(216.6)	(204.3)
Net property and equipment	89.4	84.6
Goodwill	375.9	374.3
Other assets	182.1	193.2
Total assets	3,206.4	2,933.3
Current liabilities:
Accounts payable	742.2	648.7
Accrued expenses	235.9	218.9
Short-term debt (Includes $200.0 at December 31, 2010 associated with securitization facility)	7.1	203.6
Total current liabilities	985.2	1,071.2
Long-term debt (Includes $245.0 at July 1, 2011 associated with securitization facility)	957.1	688.8
Other liabilities	135.7	162.5
Total liabilities	2,078.0	1,922.5
Stockholders' equity:
Common stock - $1.00 par value, 100,000,000 shares authorized,34,912,453 and 34,323,061 shares issued and outstanding in 2011 and 2010, respectively	34.9	34.3
Capital surplus	225.2	230.1
Retained earnings	870.7	774.2
Accumulated other comprehensive income (loss):
Foreign currency translation	39.1	16.8
Unrecognized pension liability	(41.6)	(43.9)
Unrealized gain (loss) on derivatives, net	0.1	(0.7)
Total accumulated other comprehensive loss	(2.4)	(27.8)
Total stockholders' equity	1,128.4	1,010.8
Total liabilities and stockholders' equity	$ 3,206.4	$ 2,933.3

XML



Condensed Consolidated Balance Sheets (Parenthetical) (USD $) In Millions, except Share data	Jul. 01, 2011	Dec. 31, 2010
Current assets:
Carrying amount of assets, consolidated VIE	$ 517.9	$ 407.8
Noncurrent liabilities:
Carrying amount of liabilities, consolidated VIE	$ 245.0	$ 200.0
Stockholders' equity:
Common stock, par value	$ 1.00	$ 1.00
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	34,912,453	34,323,061
Common stock, shares outstanding	34,912,453	34,323,061

XML



Pension Plans (Tables)

6 Months Ended

Jul. 01, 2011

Pension Plans [Abstract]

Components of net periodic pension cost

	Three Months Ended
	Domestic						Foreign						Total
	July 1,			July 2,			July 1,			July 2,			July 1,			July 2,
	2011			2010			2011			2010			2011			2010
Service cost	$	1.8		$	1.5		$	1.4		$	1.1		$	3.2		$	2.6
Interest cost		2.9			2.9			2.5			2.4			5.4			5.3
Expected return on plan assets		(2.9	)		(2.7	)		(2.6	)		(2.2	)		(5.5	)		(4.9	)
Net amortization		0.8			0.9			—			0.2			0.8			1.1
Net periodic cost	$	2.6		$	2.6		$	1.3		$	1.5		$	3.9		$	4.1

	Six Months Ended
	Domestic						Foreign						Total
	July 1,			July 2,			July 1,			July 2,			July 1,			July 2,
	2011			2010			2011			2010			2011			2010
Service cost	$	3.5		$	3.1		$	2.7		$	2.3		$	6.2		$	5.4
Interest cost		6.0			5.8			4.9			4.9			10.9			10.7
Expected return on plan assets		(5.9	)		(5.4	)		(5.1	)		(4.5	)		(11.0	)		(9.9	)
Net amortization		1.7			1.7			0.1			0.4			1.8			2.1
Curtailment		0.6			—			—			—			0.6			—
Net periodic cost	$	5.9		$	5.2		$	2.6		$	3.1		$	8.5		$	8.3

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Document and Entity Information (USD $)	6 Months Ended
	Jul. 01, 2011	Jul. 28, 2011	Jul. 02, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	ANIXTER INTERNATIONAL INC
Entity Central Index Key	0000052795
Document Type	10-Q
Document Period End Date	Jul. 01, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--01-01
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 1,183,867,572
Entity Common Stock, Shares Outstanding (actual number)		34,893,681

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Business Segments (Tables)

6 Months Ended

Jul. 01, 2011

Business Segments [Abstract]

Segment Information

	Three Months Ended					Six Months Ended
	July 1,		July 2,			July 1,		July 2,
	2011		2010			2011		2010
Net sales:
North America	$	1,141.3	$	983.4		$	2,211.0	$	1,879.5
Europe		296.0		251.9			587.3		505.1
Emerging Markets		175.5		131.9			332.0		255.2
	$	1,612.8	$	1,367.2		$	3,130.3	$	2,639.8
Operating income:
North America	$	84.8	$	63.3		$	160.7	$	114.2
Europe		4.8		(0.7	)		4.8		(0.2	)
Emerging Markets		8.2		7.5			15.4		13.1
	$	97.8	$	70.1		$	180.9	$	127.1

	July 1,		December 31,
	2011		2010
Total assets:
North America	$	2,198.0	$	2,043.9
Europe		654.8		586.7
Emerging Markets		353.6		302.7
	$	3,206.4	$	2,933.3

Changes in goodwill

	Six Months Ended July 1, 2011
	North America			Europe(b)		Emerging Markets		Total
Balance as of December 31, 2010	$	350.8		$	11.6	$	11.9	$	374.3
Acquisition related(a)		(0.3	)		—		—		(0.3	)
Foreign currency translation		0.6			0.7		0.6		1.9
Balance as of July 1, 2011	$	351.1		$	12.3	$	12.5	$	375.9

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Fair Value Measurements

6 Months Ended

Jul. 01, 2011

Fair Value Measurements [Abstract]

FAIR VALUE MEASUREMENTS

NOTE 7. FAIR VALUE MEASUREMENTS

     The fair value of the Company’s debt instruments is measured using observable market information which would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements.

     The Company’s fixed-rate debt primarily consists of nonconvertible and convertible debt as follows:

• Nonconvertible fixed-rate debt consisting of the Company’s $200.0 million 5.95% Senior Notes due 2015 (“Notes due 2015”) and Notes due 2014.

• Convertible fixed-rate debt consisting of the Company’s Notes due 2013 and Notes due 2033.

     At July 1, 2011, the Company’s carrying value of its fixed-rate debt was $514.7 million as compared to $543.6 million at December 31, 2010. The estimated fair market value of the Company’s fixed-rate debt at July 1, 2011 and December 31, 2010 was $617.7 million and $672.8 million, respectively. The decline in the carrying value and estimated fair market value is due to the retirement of a portion of the Notes due 2033 during the first half of 2011. As of July 1, 2011 and December 31, 2010, the Company’s carrying value of its variable-rate debt was $449.5 million and $348.8 million, respectively, which approximates the estimated fair market value.

     The fair value of the interest rate swaps is determined by means of a mathematical model that calculates the present value of the anticipated cash flows from the transaction using mid-market prices and other economic data and assumptions, or by means of pricing indications from one or more other dealers selected at the discretion of the respective banks. These inputs would be considered Level 2 in the fair value hierarchy described in accounting guidance on fair value measurements. At July 1, 2011 and December 31, 2010, interest rate swaps were revalued at current interest rates with the changes in valuation reflected directly in “Accumulated Other Comprehensive Income (Loss)” in the Company’s Condensed Consolidated Balance Sheets. The fair market value of the Company’s outstanding interest rate agreements, which is the estimated exit price that the Company would pay to cancel the interest rate agreements, was not significant at July 1, 2011 or December 31, 2010.

     The fair value of the Company’s foreign currency forward contracts was not significant at July 1, 2011 or December 31, 2010. The fair value of the foreign currency forward contracts is based on the difference between the contract rate and the current exchange rate. The fair value of the foreign currency forward contracts is measured using observable market information. These inputs would be considered Level 2 in the fair value hierarchy.

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Summary of Significant Accounting Policies (Details) (USD $) In Millions	Jul. 01, 2011	Dec. 31, 2010
Summary Of Significant Accounting Policies (Textuals) [Abstract]
Allowance for doubtful accounts	$ 23.6	$ 25.0

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Business Segments (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010	Dec. 31, 2010
Net sales:
Net sales	$ 1,612.8	$ 1,367.2	$ 3,130.3	$ 2,639.8
Operating income:
Operating income	97.8	70.1	180.9	127.1
Total assets:
Total assets	3,206.4		3,206.4		2,933.3
Changes in goodwill
Goodwill, Beginning Balance			374.3
Acquisition related			(0.3)
Foreign currency translation			1.9
Goodwill, Ending Balance	375.9		375.9
Business Segments (Textuals) [Abstract]
Adjustment of Goodwill recognized			0.3
Cash paid, net of cash acquired, for prior year acquisition			36.4
North America [Member]
Net sales:
Net sales	1,141.3	983.4	2,211.0	1,879.5
Operating income:
Operating income	84.8	63.3	160.7	114.1
Total assets:
Total assets	2,198.0		2,198.0		2,043.9
Changes in goodwill
Goodwill, Beginning Balance			350.8
Acquisition related			(0.3)
Foreign currency translation			0.6
Goodwill, Ending Balance	351.1		351.1
Business Segments (Textuals) [Abstract]
Adjustment of Goodwill recognized			0.3
Europe [Member]
Net sales:
Net sales	296.0	251.9	587.3	505.1
Operating income:
Operating income	4.8	(0.7)	4.8	(0.2)
Total assets:
Total assets	654.8		654.8		586.7
Changes in goodwill
Goodwill, Beginning Balance			11.6
Acquisition related			0
Foreign currency translation			0.7
Goodwill, Ending Balance	12.3		12.3
Business Segments (Textuals) [Abstract]
Adjustment of Goodwill recognized			0
Accumulated goodwill impairment loss	100.0		100.0		100.0
Emerging Markets [Member]
Net sales:
Net sales	175.5	131.9	332.0	255.2
Operating income:
Operating income	8.2	7.5	15.4	13.2
Total assets:
Total assets	353.6		353.6		302.7
Changes in goodwill
Goodwill, Beginning Balance			11.9
Acquisition related			0
Foreign currency translation			0.6
Goodwill, Ending Balance	12.5		12.5
Business Segments (Textuals) [Abstract]
Adjustment of Goodwill recognized			$ 0

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Summarized Financial Information of Anixter, Inc. (Details 2)	6 Months Ended
	Jul. 01, 2011
Summarized Financial Information of Subsidiary (Textuals) [Abstract]
Description of guarantees given by parent company	The Company guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc. The Company has no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc. (in millions):

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Stockholder's Equity (Tables)

6 Months Ended

Jul. 01, 2011

Stockholders' Equity [Abstract]

Fair value of stock options granted

Expected Stock	Risk-Free Interest	Expected Dividend	Average Expected
Price Volatility	Rate	Yield	Life
38%	2.2% to 2.5%	0%	6.13 years

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Legal Contingencies

6 Months Ended

Jul. 01, 2011

Legal Contingencies [Abstract]

LEGAL CONTINGENCIES

NOTE 12. LEGAL CONTINGENCIES

     In April 2008, the Company voluntarily disclosed to the U.S. Departments of Treasury and Commerce that one of its foreign subsidiaries may have violated U.S. export control laws and regulations in connection with re-exports of goods to prohibited parties or destinations including Cuba and Syria, countries identified by the State Department as state sponsors of terrorism. The Company has performed a thorough review of its export and re-export transactions and did not identify any other potentially significant violations. The Company has determined appropriate corrective actions. The Company has submitted the results of its review and its corrective action plan to the applicable U.S. government agencies. Civil penalties may be assessed against the Company in connection with any violations that are determined to have occurred, but based on information currently available, management does not believe that the ultimate resolution of this matter will have a material effect on the business, operations or financial condition of the Company.

     In May 2009, Raytheon Co. filed for arbitration against one of the Company’s subsidiaries, Anixter Inc., alleging that it had supplied non-conforming parts to Raytheon. Raytheon sought damages of approximately $26 million. The arbitration hearing concluded in October 2010 and the arbitration panel rendered its decision at the end of 2010. The arbitration panel entered an interim award against the Company in the amount of $20.8 million. In April 2011, the arbitration panel finalized the award to Raytheon to cover their attorneys’ fees and arbitration proceeding costs in the amount of $1.5 million and the arbitration proceeding was closed. The Company has appealed the awards. The Company recorded a pre-tax charge of $20.0 million in the fourth quarter of 2010 which approximates the expected cost of the award after consideration of insurance proceeds, fees, costs and interest on the award at 10% per annum until paid. There were no significant changes to the Company’s accrual for this matter during the second quarter of 2011.

     In September 2009, the Garden City Employees’ Retirement System filed a purported class action under the federal securities laws in the United States District Court for the Northern District of Illinois against the Company, its current and former chief executive officers and its former chief financial officer. In November 2009, the Court entered an order appointing the Indiana Laborers Pension Fund as lead plaintiff and appointing lead plaintiff’s counsel. In January 2010, the lead plaintiff filed an amended complaint. The amended complaint principally alleges that the Company made misleading statements during 2008 regarding certain aspects of its financial performance and outlook. The amended complaint seeks unspecified damages on behalf of persons who purchased the common stock of the Company between January 29 and October 20, 2008. In March 2011, the Court dismissed the complaint but allowed the lead plaintiff the opportunity to re-plead its complaint. Plaintiff did so in April 2011. The Company and the other defendants intend to continue to defend themselves vigorously against the allegations. Based on facts known to management at this time, the Company cannot estimate the amount of loss, if any, and, therefore, has not made any accrual for this matter in these financial statements.

     In October 2009, the Company disclosed to the U.S. Government that it may have violated laws and regulations restricting entertainment of government employees. The Inspector General of the relevant federal agency is investigating the disclosure and the Company is cooperating in the investigation. Civil and or criminal penalties could be assessed against the Company in connection with any violations that are determined to have occurred. Based on facts known to management at this time, the Company cannot estimate the amount of loss, if any, and, therefore, has not made any accrual for this matter in these financial statements.

     From time to time, in the ordinary course of business, the Company and its subsidiaries become involved as plaintiffs or defendants in various other legal proceedings not enumerated above. The claims and counterclaims in such other legal proceedings, including those for punitive damages, individually in certain cases and in the aggregate, involve amounts that may be material. However, it is the opinion of the Company’s management, based on the advice of its counsel, that the ultimate disposition of those proceedings will not be material.

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Income Per Share

6 Months Ended

Jul. 01, 2011

Income Per Share [Abstract]

INCOME (LOSS) PER SHARE

NOTE 3. INCOME PER SHARE

     The following table sets forth the computation of basic and diluted income per share:

	Three Months Ended				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
(In millions, except per share data)	2011		2010		2011		2010
Basic Income per Share:
Net income	$	52.1	$	34.6	$	96.4	$	40.5
Weighted-average common shares outstanding		34.8		33.9		34.7		34.1
Net income per basic share	$	1.50	$	1.02	$	2.78	$	1.19
Diluted Income per Share:
Net income	$	52.1	$	34.6	$	96.4	$	40.5
Weighted-average common shares outstanding		34.8		33.9		34.7		34.1
Effect of dilutive securities:
Stock options and units		0.4		0.5		0.5		0.5
Convertible notes due 2033		0.5		1.0		0.4		1.0
Convertible notes due 2013		0.6		—		0.6		—
Diluted weighted-average common shares outstanding		36.3		35.4		36.2		35.6
Net income per diluted share	$	1.43	$	0.98	$	2.66	$	1.14

     The Company’s $300 million convertible notes due 2013 (“Notes due 2013”) are not currently convertible. In periods when the Notes due 2013 are convertible, any conversion will be settled in cash up to the principal amount, and any excess conversion value will be delivered, at the Company’s election, in cash, common stock or a combination of cash and common stock. As a result of the Company’s average stock price exceeding the conversion price of $59.78 per share during both the three and six months ended July 1, 2011, 0.6 million additional shares related to the Notes due 2013 were included in the diluted weighted-average common shares outstanding. The Company’s average stock price for the three and six months ended July 2, 2010 did not exceed the conversion price and, therefore, the Notes due 2013 were antidilutive for this period.

     The Company’s 3.25% zero coupon convertible notes due 2033 (“Notes due 2033”) are currently convertible. In periods when the Notes due 2033 are convertible, any conversion will be settled in cash up to the accreted principal amount, and any amount in excess of the accreted principal value will be settled in common stock. As a result of the conversion value exceeding the average accreted principal value during the three and six months ended July 1, 2011, the Company included 0.5 million and 0.4 million additional shares, respectively, related to the Notes due 2033 in the diluted weighted-average common shares outstanding. During the three and six months ended July 2, 2010, the Company included 1.0 million additional shares for both periods related to the Notes due 2033 in the diluted weighted-average common shares outstanding.

     In the three and six months ended July 1, 2011, 0.4 million and 0.5 million additional shares, respectively, were included in the computation of diluted earnings per share relating to exercisable stock options and units because the effect of these common stock equivalents were dilutive during the periods presented. In both the three and six months ended July 2, 2010, 0.5 million additional shares were included in the computation of diluted earnings per share because the effect of these common stock equivalents were dilutive during the periods presented.

     In the three and six months ended July 1, 2011, the Company issued 0.2 million and 0.6 million shares, respectively, related to stock option exercises and vesting of stock units. In the three and six months ended July 2, 2010, the Company issued 0.1 million and 0.3 million shares, respectively, due to stock option exercises and vesting of stock units. During the six months ended July 2, 2010, the Company repurchased 1 million of its outstanding shares. No repurchases were made in the six months ended July 1, 2011.

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Pension Plans (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Pension Plans
Service cost	$ 3.2	$ 2.6	$ 6.2	$ 5.4
Interest cost	5.4	5.3	10.9	10.7
Expected return on plan assets	(5.5)	(4.9)	(11.0)	(9.9)
Net amortization	0.8	1.1	1.8	2.1
Curtailment			0.6
Net periodic cost	3.9	4.1	8.5	8.3
Pension Plans (Textuals) [Abstract]
General discussion of pension and other postretirement benefits			The Company has various defined benefit and defined contribution pension plans. The defined benefit plans of the Company are the Anixter Inc. Pension Plan, Executive Benefit Plan and Supplemental Executive Retirement Plan (“SERP”) (together the “Domestic Plans”) and various pension plans covering employees of foreign subsidiaries (“Foreign Plans”). The majority of the Company’s pension plans are non-contributory and 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 and 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 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.
Domestic [Member]
Pension Plans
Service cost	1.8	1.5	3.5	3.1
Interest cost	2.9	2.9	6.0	5.8
Expected return on plan assets	(2.9)	(2.7)	(5.9)	(5.4)
Net amortization	0.8	0.9	1.7	1.7
Curtailment			0.6
Net periodic cost	2.6	2.6	5.9	5.2
Foreign [Member]
Pension Plans
Service cost	1.4	1.1	2.7	2.3
Interest cost	2.5	2.4	4.9	4.9
Expected return on plan assets	(2.6)	(2.2)	(5.1)	(4.5)
Net amortization		0.2	0.1	0.4
Net periodic cost	$ 1.3	$ 1.5	$ 2.6	$ 3.1

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Summarized Financial Information of Anixter, Inc.

6 Months Ended

Jul. 01, 2011

Summarized Financial Information of Anixter, Inc. [Abstract]

SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC

NOTE 9. SUMMARIZED FINANCIAL INFORMATION OF ANIXTER INC.

     The Company guarantees, fully and unconditionally, substantially all of the debt of its subsidiaries, which include Anixter Inc. The Company has no independent assets or operations and all subsidiaries other than Anixter Inc. are minor. The following summarizes the financial information for Anixter Inc. (in millions):

ANIXTER INC.
CONDENSED CONSOLIDATED BALANCE SHEETS

	July 1,		December 31,
	2011		2010
	(Unaudited)
Assets:
Current assets	$	2,558.2	$	2,284.3
Property, equipment and capital leases, net		104.0		99.8
Goodwill		375.9		374.3
Other assets		180.6		191.3
	$	3,218.7	$	2,949.7
Liabilities and Stockholder’s Equity:
Current liabilities	$	983.7	$	1,067.4
Subordinated notes payable to parent		9.5		8.5
Long-term debt		691.3		394.4
Other liabilities		134.8		160.6
Stockholder’s equity		1,399.4		1,318.8
	$	3,218.7	$	2,949.7

ANIXTER INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

	Three Months Ended				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
	2011		2010		2011		2010
Net sales	$	1,612.8	$	1,367.2	$	3,130.3	$	2,639.8
Operating income	$	99.2	$	71.8	$	183.6	$	130.3
Income before income taxes	$	89.4	$	63.2	$	166.3	$	79.5
Net income	$	54.9	$	40.1	$	103.8	$	52.5

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Subsequent Event

6 Months Ended

Jul. 01, 2011

Subsequent Event [Abstract]

SUBSEQUENT EVENT

NOTE 14. SUBSEQUENT EVENT

     In July 2011, the Company retired the remaining Notes due 2033 for $24.9 million. The Company paid approximately $11.6 million in cash to reduce the remaining accreted value of debt and issued approximately 0.2 million shares of its common stock which represented approximately $13.3 million of excess conversion value over the accreted principal amount. Available borrowings under the Company’s long-term revolving credit facility were used to retire these notes.

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Restructuring Charge

6 Months Ended

Jul. 01, 2011

Restructuring Charge [Abstract]

RESTRUCTURING CHARGE

NOTE 10. RESTRUCTURING CHARGE

     In order to improve the Company’s profitability of the Company’s European segment, management approved a facility consolidation and headcount reduction plan during the first quarter of 2011 that will eliminate a number of European facilities and reduce operating costs. As a result, the Company recorded a pre-tax charge of $5.3 million which is included in “Operating Expenses” in the Company’s Condensed Consolidated Statement of Operations for the six months ended July 1, 2011. The charge includes certain exit costs and employee severance charges which are expected to be fully paid by the end of fiscal 2013. Additional costs of approximately $0.8 million related to moving expenses are expected to be recorded when incurred.

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Debt (Details) (USD $) In Millions, unless otherwise specified	1 Months Ended	3 Months Ended				6 Months Ended
	Jul. 29, 2011	Jul. 01, 2011	Apr. 01, 2011	Jul. 02, 2010	Apr. 02, 2010	Jul. 01, 2011	Jul. 02, 2010	Dec. 31, 2010
Debt Instrument [Line Items]
Pre-tax gain / (loss) related to retirement of notes		$ (0.1)		$ 0.8	$ 0.3		$ (29.7)
Reduction of accreted value of convertible debt, debt component	11.6			28.6		37.4
Retired amount of 10% Senior Notes due 2014							150.8
Interest rate of Senior Notes		5.95%				5.95%
Debt (Textuals) [Abstract]
Total debt outstanding		964.2				964.2		892.4
Weighted-average cost of borrowings		5.00%		6.30%		5.10%	6.80%
Conversion value of bonds converted		0
Debt issuance cost written off					2.5
Reduction in equity in connection with repurchase, net of reduction in deferred tax liability						22.9
Net (loss) gain on retirement of debt		(0.1)		0.8	0.3		(29.7)
Receivables Sold		517.9				517.9		407.8
Retired remaining Notes due 2033				40.9		(82.2)
Reduction in accreted value of debt settled by shares	13.3					1.6
Reduction in equity in connection with repurchase				13.1		44.9	13.1
Reduction in deferred tax liability				8.0		22.0
Committed, unused available credit lines		259.8				259.8
Carrying amount of liabilities, consolidated VIE		245.0				245.0		200.0
Maximum fund permitted to fund for payment of dividends and share repurchases under revolving credit agreement						$175 million plus 50 percent of company's cumulative net income from the effective date of the new agreement
Proforma leveraged ratio and accounts receivable securitization facility under revolving credit agreement						Anixter Inc. will be allowed to prepay, purchase or redeem indebtedness of the Company, provided that its proforma leverage ratio (as defined) is less than or equal to 2.75 to 1.00 and that its unrestricted domestic cash balance plus availability under the revolving credit agreement and the accounts receivable securitization facility is equal to or greater than $175 million
Current leverage ratio applicable margin under revolving credit agreement						Libor plus 200 basis points
Liquidity termination date of the program		May 2013
Former program maturity date		July 2011
Maturity date of the new agreement		April 2016
Renewed program all-in drawn funding cost		CP plus 115 basis points	CP plus 90 basis points
Unused capacity fees						decreased from 57.5 to 60 basis points to 45 to 55 basis points depending on utilization
Loss on write off of deferred financing costs before tax						0.1
10% Senior Notes Due 2014 [Member]
Debt Instrument [Line Items]
Pre-tax gain / (loss) related to retirement of notes					30.5	0.1
Reduction of accreted value of convertible debt, debt component					121.9
Retired amount of 10% Senior Notes due 2014					150.8
Interest rate of Senior Notes					10.00%
Debt (Textuals) [Abstract]
Net (loss) gain on retirement of debt					30.5	0.1
Accounts Receivable Securitization Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility Maximum Borrowing Capacity		275	200			275
Other Debt Agreements [Member]
Debt Instrument [Line Items]
Line of Credit Facility Maximum Borrowing Capacity		$ 400	$ 350			$ 400

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Pension Plans

6 Months Ended

Jul. 01, 2011

Pension Plans [Abstract]

PENSION PLANS

NOTE 8. PENSION PLANS

     The Company has various defined benefit and defined contribution pension plans. The defined benefit plans of the Company are the Anixter Inc. Pension Plan, Executive Benefit Plan and Supplemental Executive Retirement Plan (“SERP”) (together the “Domestic Plans”) and various pension plans covering employees of foreign subsidiaries (“Foreign Plans”). The majority of the Company’s pension plans are non-contributory and 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 and 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 Internal Revenue Service (“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.

     Components of net periodic pension cost are as follows (in millions):

	Three Months Ended
	Domestic						Foreign						Total
	July 1,			July 2,			July 1,			July 2,			July 1,			July 2,
	2011			2010			2011			2010			2011			2010
Service cost	$	1.8		$	1.5		$	1.4		$	1.1		$	3.2		$	2.6
Interest cost		2.9			2.9			2.5			2.4			5.4			5.3
Expected return on plan assets		(2.9	)		(2.7	)		(2.6	)		(2.2	)		(5.5	)		(4.9	)
Net amortization		0.8			0.9			—			0.2			0.8			1.1
Net periodic cost	$	2.6		$	2.6		$	1.3		$	1.5		$	3.9		$	4.1

	Six Months Ended
	Domestic						Foreign						Total
	July 1,			July 2,			July 1,			July 2,			July 1,			July 2,
	2011			2010			2011			2010			2011			2010
Service cost	$	3.5		$	3.1		$	2.7		$	2.3		$	6.2		$	5.4
Interest cost		6.0			5.8			4.9			4.9			10.9			10.7
Expected return on plan assets		(5.9	)		(5.4	)		(5.1	)		(4.5	)		(11.0	)		(9.9	)
Net amortization		1.7			1.7			0.1			0.4			1.8			2.1
Curtailment		0.6			—			—			—			0.6			—
Net periodic cost	$	5.9		$	5.2		$	2.6		$	3.1		$	8.5		$	8.3

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Summary of Significant Accounting Policies

6 Months Ended

Jul. 01, 2011

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

     Basis of presentation: The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in Anixter International Inc.’s (“the Company”) Annual Report on Form 10-K for the year ended December 31, 2010. The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the condensed consolidated financial statements for the periods shown. Certain amounts have been reclassified to conform to the current year presentation. The results of operations of any interim period are not necessarily indicative of the results that may be expected for a full fiscal year.

     Accounts receivable are net of allowances for doubtful accounts of $23.6 million and $25.0 million as of July 1, 2011 and December 31, 2010, respectively.

     Recently issued accounting pronouncements not yet adopted: In May 2011, the Financial Accounting Standards Board (“FASB”) issued guidance to amend the requirements related to fair value measurement which changes the wording used to describe many requirements in Generally Accepted Accounting Principles (“GAAP”) for measuring fair value and for disclosing information about fair value measurements. Additionally, the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2011, and is applied prospectively. Adoption of this guidance at the beginning of fiscal 2012 is not expected to have a material impact on the Company’s consolidated financial statements.

     In June 2011, the FASB issued an update to Accounting Standards Codification (ASC) No. 220, “Presentation of Comprehensive Income,” which eliminates the option to present other comprehensive income and its components in the statement of stockholders’ equity. The Company can elect to present the items of net income and other comprehensive income in a single continuous statement of comprehensive income or in two separate, but consecutive statements. Under either method, the statement would need to be presented with equal prominence as the other primary financial statements. The amended guidance, which must be applied retrospectively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with earlier adoption permitted.

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Income Taxes

6 Months Ended

Jul. 01, 2011

Income Taxes [Abstract]

INCOME TAXES

NOTE 4. INCOME TAXES

     The second quarter of 2011 tax provision was $31.2 million compared to $23.1 million in the corresponding period of last year. The Company’s effective tax rate for the three months ended July 1, 2011 was 37.5% as compared to 40.0% in the prior year period.

     The tax provision for the six months ended July 1, 2011 was $57.8 million as compared to $27.0 million in the corresponding period in the prior year. The Company’s effective tax rate for the six months ended July 1, 2011 was 37.5% compared to 40.0% in the prior year period.

     The difference between the statutory corporate federal tax rate of 35% and the Company’s effective tax rate was primarily due to state income taxes.

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Stockholder's Equity (Details)	6 Months Ended
	Jul. 01, 2011
Fair value of stock options granted
Expected Stock Price Volatility	38.00%
Risk-Free Interest Rate Minimum	2.20%
Risk-Free Interest Rate Maximum	2.50%
Expected Dividend Yield	0.00%
Average Expected Life	6.13

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Income Taxes (Textuals) [Abstract]
Income Tax Provision	$ 31.2	$ 23.1	$ 57.8	$ 27.0
Effective income tax rate	37.50%	40.00%	37.50%	40.00%
Statutory corporate federal tax rate			35.00%

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Debt

6 Months Ended

Jul. 01, 2011

Debt [Abstract]

DEBT

NOTE 5. DEBT

     At July 1, 2011, the Company’s total debt outstanding was $964.2 million as compared to $892.4 million at December 31, 2010. The Company’s weighted-average cost of borrowings was 5.0% and 6.3% for the three months ended July 1, 2011 and July 2, 2010, respectively, and 5.1% and 6.8% for the six months ended July 1, 2011 and July 2, 2010, respectively.

Retirement of Debt

     During the first six months of 2011, the Company retired a portion of the Notes due 2033 as a result of repurchases and bondholder conversions. The Company paid approximately $82.2 million in cash and $1.6 million was settled in stock. Available borrowings under the Company’s long-term revolving credit facility were used to retire these notes. In connection with the retirement of debt, the Company reduced the accreted value of the debt by $37.4 million, recorded a reduction in equity of $44.9 million ($22.9 million, net of the reduction of deferred tax liabilities of $22.0 million). These reductions resulted in the recognition of a pre-tax gain of $0.1 million based on the fair value of the liability and equity components at the time of retirement.

     During the first quarter of 2010, the Company retired $121.9 million of accreted value of its 10% Senior Notes due 2014 (“Notes due 2014”) for $150.8 million. Available cash and other borrowings were used to retire these notes. As a result of the retirement of debt, the Company recognized a pre-tax loss of $30.5 million, inclusive of $2.5 million of debt issuance costs that were written off and $0.3 million of fees associated with the retirement.

     During the second quarter of 2010, the Company retired a portion of the Notes due 2033 for $40.9 million. Available cash was used to retire these notes. In connection with the retirement of debt, the Company reduced the accreted value of the debt by $28.6 million, recorded a reduction in equity of $13.1 million (reflecting the fair value of the conversion option at the time of repurchase) and reduced deferred tax liabilities by $8.0 million. The retirement of debt resulted in the recognition of a pre-tax gain of $0.8 million.

Accounts Receivable Securitization Facility

     In the second quarter of 2011, the Company’s primary operating subsidiary, Anixter Inc., amended the agreements governing its accounts receivable securitization program. The following key changes were made to the program:

• The size of the program increased from $200 million to $275 million.

• The liquidity termination date of the program will be May 2013 (formerly a program maturing July 2011).

• The renewed program carries an all-in drawn funding cost of Commercial Paper (“CP”) plus 90 basis points (previously CP plus 115 basis points).

• Unused capacity fees decreased from 57.5 to 60 basis points to 45 to 55 basis points depending on utilization.

     All other material terms and conditions remain unchanged. As a result of the change in maturity, this debt was classified as long-term on the Company’s condensed consolidated balance sheet at July 1, 2011 (formerly short-term debt as of December 31, 2010).

     Under Anixter’s accounts receivable securitization program, the Company sells, on an ongoing basis without recourse, a majority of the accounts receivable originating in the United States to Anixter Receivables Corporation (“ARC”), which is considered a wholly-owned, bankruptcy-remote variable interest entity (“VIE”). The Company is the primary beneficiary as defined by accounting guidance and, therefore, consolidates the account balances of ARC. As of July 1, 2011 and December 31, 2010, $517.9 million and $407.8 million of the Company’s receivables were sold to ARC, respectively. ARC in turn sells an interest in these receivables to a financial institution for proceeds up to $275.0 million. The assets of ARC (limited to the amount of outstanding borrowings) are not available to creditors of Anixter in the event of bankruptcy or insolvency proceedings.

Other

     Certain debt agreements entered into by the Company’s operating subsidiaries contain various restrictions, including restrictions on payments to the Company. These restrictions have not had, nor are expected to have, an adverse impact on the Company’s ability to meet its cash obligations. The Company has approximately $259.8 million in available, committed, unused credit lines. At July 1, 2011, the Company has drawn $245.0 million of borrowings under its $275.0 million accounts receivable facility.

     In the second quarter of 2011, the Company’s primary operating subsidiary, Anixter Inc., refinanced its senior unsecured revolving credit facility. The following key changes were made to the prior revolving credit agreement:

• The size of the credit facility was increased from $350 million to $400 million (or the equivalent in Euros).

• The maturity date of the new agreement will be April 2016.

• Anixter Inc. will be permitted to direct funds to the Company for payment of dividends and share repurchases to a maximum of $175 million plus 50 percent of Anixter Inc.’s cumulative net income from the effective date of the new agreement.

• Anixter Inc. will be allowed to prepay, purchase or redeem indebtedness of the Company, provided that its proforma leverage ratio (as defined in the agreement) is less than or equal to 2.75 to 1.00 and that its unrestricted domestic cash balance plus availability under the revolving credit agreement and the accounts receivable securitization facility is equal to or greater than $175 million.

• The pricing grid has been adjusted to a leverage-based pricing grid. Based on Anixter Inc.’s current leverage ratio, the applicable margin will be Libor plus 200 basis points, similar to the prior agreement.

     All other material terms and conditions of the revolving credit agreement, which is guaranteed by the Company, are similar to the prior credit agreement. In connection with the amendment, the Company recognized a pre-tax loss of $0.1 million due to a write-off of deferred financing fees related to the prior revolving credit agreement.

     See Note 7. “Fair Value Measurements” for information related to the fair value of outstanding debt obligations.

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Legal Contingencies (Details) (USD $) In Millions, unless otherwise specified	0 Months Ended	3 Months Ended	6 Months Ended	12 Months Ended
	May 20, 2009	Dec. 31, 2010	Jul. 01, 2011	Dec. 31, 2010	Dec. 13, 2010
Legal Contingencies (Textuals) [Abstract]
Claim for damages made by Raytheon	$ 26
Interim award against the company by the arbitration panel					20.8
Fees and arbitration proceeding costs			1.5
Pre-tax charge		$ 20.0
Interest Cost associated with unfavorable arbitration ruling				10.00%
Amended complaint seeks unspecified damages on behalf of persons who purchased common stock			Between January 29 and October 20, 2008

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Comprehensive Income (Details) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Summary of Comprehensive income, net of tax
Net income	$ 52.1	$ 34.6	$ 96.4	$ 40.5
Foreign currency translation	5.5	(20.0)	22.3	(13.0)
Changes in unrealized pension cost	0.8	1.0	2.3	3.1
Changes in fair market value of derivatives	0.2	0.6	0.8	(0.3)
Comprehensive income	$ 58.6	$ 16.2	$ 121.8	$ 30.3

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Derivative Instruments and Hedging Activities (Details) In Millions, unless otherwise specified	3 Months Ended		6 Months Ended			6 Months Ended
	Jul. 01, 2011 USD ($)	Jul. 02, 2010 USD ($)	Jul. 01, 2011 USD ($)	Jul. 02, 2010 USD ($)	Dec. 31, 2010 USD ($)	Jul. 01, 2011 Interest Rate Swap One Agreement GBP [Member] GBP (£)	Jul. 01, 2011 Interest Rate Swap Two Agreement Euro [Member] EUR (€)
Derivative Instruments And Hedging Activities (Textuals) [Abstract]
Number of outstanding interest rate swap agreements	2		2
Notional amount of interest rate swap agreements outstanding						£ 15	€ 25
Notional amount of the foreign currency forward contracts outstanding	210.6		210.6		223.0
Losses on foreign currency forward contract	5.7		3.5
Gain on foreign currency contracts		4.3		0.8
Costs associated with hedging programs	0.5	0.5	1.0	1.0
Gains on foreign denominated accounts hedged	4.2		1.8
Losses on foreign denominated accounts hedged		$ 2.9		$ 7.7
Foreign currency-denominated accounts not hedged, Percentage			100.00%
Time period for company to pay a fixed rate of interest						Jul. 01, 2012	Nov. 01, 2011

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Stockholders Equity (DetailsTextuals) (USD $) In Millions, except Share data	6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010
Stockholders' Equity (Textuals) [Abstract]
Weighted-average exercise price	$ 69.54
Repurchase of shares	0	1,000,000
Payments for Repurchase of Common Stock		$ 41.2
Number of common shares in Stock Incentive Plan	2,300,000
Employee Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units granted	200,000
Weighted-average grant-date fair value	$ 69.91
Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock units granted	18,679
Weighted-average grant-date fair value	$ 64.80
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted	100,000
Weighted-average grant-date fair value	$ 28.50

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Income Per Share (Details Textuals) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Income Loss Per Share (Textuals) [Abstract]
Convertible notes	$ 300		$ 300
Maximum average stock conversion price	$ 59.78		$ 59.78
Percentage of zero coupon convertible notes	5.95%		5.95%
Total additional shares included in the computation of diluted earnings per share	0.4	0.5	0.5	0.5
Stock Issued During Period, Shares, Share-based Compensation	0.2	0.1	0.6	0.3
Repurchase of outstanding shares			0	1
Convertible Notes Due 2013 [Member]
Income Loss Per Share (Textuals) [Abstract]
Additional shares related to Notes due	0.6		0.6
Convertible Notes Due 2033 [Member]
Income Loss Per Share (Textuals) [Abstract]
Percentage of zero coupon convertible notes	3.25%		3.25%
Additional shares related to Notes due	0.5	1.0	0.4	1.0

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Business Segments

6 Months Ended

Jul. 01, 2011

Business Segments [Abstract]

BUSINESS SEGMENTS

NOTE 13. BUSINESS SEGMENTS

     The Company is engaged in the distribution of communications and security products, electrical wire and cable products and fasteners and other small parts (“C” Class inventory components) from top suppliers to contractors and installers, and also to end users including manufacturers, natural resources companies, utilities and original equipment manufacturers who use the Company’s products as a component in their end product. The Company is organized by geographic regions, and accordingly, has identified North America (United States and Canada), Europe and Emerging Markets (Asia Pacific and Latin America) as reportable segments. The Company obtains and coordinates financing, tax, information technology, legal and other related services, certain of which are rebilled to subsidiaries. Certain corporate expenses are allocated to the segments based primarily on specific identification, projected sales and estimated use of time. Interest expense and other non-operating items are not allocated to the segments or reviewed on a segment basis. Intercompany transactions are not significant.

     Segment information for the three and six months ended July 1, 2011 and July 2, 2010 and as of July 1, 2011 and December 31, 2010 was as follows (in millions):

	Three Months Ended					Six Months Ended
	July 1,		July 2,			July 1,		July 2,
	2011		2010			2011		2010
Net sales:
North America	$	1,141.3	$	983.4		$	2,211.0	$	1,879.5
Europe		296.0		251.9			587.3		505.1
Emerging Markets		175.5		131.9			332.0		255.2
	$	1,612.8	$	1,367.2		$	3,130.3	$	2,639.8
Operating income:
North America	$	84.8	$	63.3		$	160.7	$	114.2
Europe		4.8		(0.7	)		4.8		(0.2	)
Emerging Markets		8.2		7.5			15.4		13.1
	$	97.8	$	70.1		$	180.9	$	127.1

	July 1,		December 31,
	2011		2010
Total assets:
North America	$	2,198.0	$	2,043.9
Europe		654.8		586.7
Emerging Markets		353.6		302.7
	$	3,206.4	$	2,933.3

     The following tables presents the changes in goodwill allocated to the Company’s reportable segments during the six months ended July 1, 2011 (in millions):

	Six Months Ended July 1, 2011
	North America			Europe(b)		Emerging Markets		Total
Balance as of December 31, 2010	$	350.8		$	11.6	$	11.9	$	374.3
Acquisition related(a)		(0.3	)		—		—		(0.3	)
Foreign currency translation		0.6			0.7		0.6		1.9
Balance as of July 1, 2011	$	351.1		$	12.3	$	12.5	$	375.9

(a)	In the six months ended July 1, 2011, the Company adjusted goodwill recognized in 2010 by $0.3 million, related to the acquisition of Clark Security Products, Inc and General Lock, LLC (collectively “Clark”) for which the Company paid $36.4 million, net of cash acquired. The purchase price, as well as the allocation thereof, will be finalized in 2011.
(b)	Europe’s goodwill balance includes $100.0 million of accumulated impairment losses at December 31, 2010 and July 1, 2011.

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Derivative Instruments and Hedging Activities

6 Months Ended

Jul. 01, 2011

Derivative Instruments and Hedging Activities [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 6. DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

     Interest rate agreements: The Company uses interest rate swaps to reduce its exposure to fluctuations in interest rates. The objective of the currently outstanding interest rate swaps (cash flow hedges) is to convert variable interest to fixed interest associated with forecasted interest payments resulting from revolving borrowings in the U.K. and continental Europe and are designated as hedging instruments. The Company does not enter into interest rate transactions for speculative purposes. Changes in the value of the interest rate swaps are expected to be highly effective in offsetting the changes attributable to fluctuations in the variable rates. The Company’s counterparties to its interest rate swap contracts have investment-grade credit ratings. The Company expects the creditworthiness of its counterparties to remain intact through the term of the transactions. When entered into, these financial instruments were designated as hedges of underlying exposures (interest payments associated with the U.K. and continental Europe borrowings) attributable to changes in the respective benchmark interest rates.

     As of July 1, 2011, the Company had two interest rate swap agreements outstanding with notional amounts of GBP 15 million and Euro 25 million. The GBP swap agreement obligates the Company to pay a fixed rate through July 2012 while the Euro swap agreement obligates the Company to pay a fixed rate through November 2011.

     Foreign currency forward contracts: The Company purchases foreign currency forward contracts to minimize the effect of fluctuating foreign currency-denominated accounts on its reported income. The foreign currency forward contracts are not designated as hedges for accounting purposes. The Company’s strategy is to negotiate terms for its derivatives and other financial instruments to be perfectly effective, such that the change in the value of the derivative perfectly offsets the impact of the underlying hedged item (e.g., various foreign currency-denominated accounts). The Company’s counterparties to its foreign currency forward contracts have investment-grade credit ratings. The Company expects the creditworthiness of its counterparties to remain intact through the term of the transactions. The Company regularly monitors the creditworthiness of its counterparties to ensure no issues exist which could affect the value of the derivatives.

     At July 1, 2011 and December 31, 2010, foreign currency forward contracts were revalued at then-current foreign exchange rates, with the changes in valuation reflected directly in “Other, net” in the Condensed consolidated statements of operations offsetting the transaction gain/loss recorded on the foreign currency-denominated accounts. At July 1, 2011 and December 31, 2010, the notional amount of the foreign currency forward contracts outstanding was approximately $210.6 million and $223.0 million, respectively. The Company recorded losses on its foreign currency forward contracts in the three and six months ended July 1, 2011 of $5.7 million and $3.5 million, respectively, and gains of $0.8 million and $4.3 million in the three and six months ended July 2, 2010, respectively. Included in the gains and losses on the Company’s foreign currency forward contracts were costs associated with the hedging programs of $0.5 million and $1.0 million for the three months and six months, respectively, ended July 1, 2011 and July 2, 2010. The Company recorded gains on the foreign currency-denominated accounts that were economically hedged in the three and six months ended July 1, 2011 of $4.2 million and $1.8 million, respectively, and losses of $2.9 million and $7.7 million in the three and six months ended July 2, 2010, respectively. The Company does not hedge 100% of its foreign currency-denominated accounts and results of the hedging can vary significantly based on various factors, such as the timing of executing the foreign currency forward contracts versus the movement of the currencies as well as the fluctuations in the account balances throughout each reporting period.

     See Note 7. “Fair Value Measurements” for information related to the fair value of interest rate agreements and foreign currency forward contracts.

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Comprehensive Income (Tables)

6 Months Ended

Jul. 01, 2011

Comprehensive Income [Abstract]

Summary of comprehensive income, net of tax

	Three Months Ended					Six Months Ended
	July 1,		July 2,			July 1,		July 2,
(In millions)	2011		2010			2011		2010
Net income	$	52.1	$	34.6		$	96.4	$	40.5
Foreign currency translation		5.5		(20.0	)		22.3		(13.0	)
Changes in unrealized pension cost		0.8		1.0			2.3		3.1
Changes in fair market value of derivatives		0.2		0.6			0.8		(0.3	)
Comprehensive income	$	58.6	$	16.2		$	121.8	$	30.3

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Restructuring Charge (Details) (USD $) In Millions	6 Months Ended
	Jul. 01, 2011
Restructuring Charge (Textuals) [Abstract]
Pre tax Restructuring Charges	$ 5.3
Expected Restructuring Charges	$ 0.8

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Income Per Share (Details) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Basic Income per Share:
Net income	$ 52.1	$ 34.6	$ 96.4	$ 40.5
Weighted-average common shares outstanding	34.8	33.9	34.7	34.1
Basic	$ 1.50	$ 1.02	$ 2.78	$ 1.19
Diluted Income (Loss) per Share:
Net income	$ 52.1	$ 34.6	$ 96.4	$ 40.5
Weighted-average common shares outstanding	34.8	33.9	34.7	34.1
Effect of dilutive securities:
Stock options and units	0.4	0.5	0.5	0.5
Diluted weighted-average common shares outstanding	36.3	35.4	36.2	35.6
Net income per diluted share	$ 1.43	$ 0.98	$ 2.66	$ 1.14
Convertible Notes Due 2013 [Member]
Effect of dilutive securities:
Convertible Notes due	0.6		0.6
Convertible Notes Due 2033 [Member]
Effect of dilutive securities:
Convertible Notes due	0.5	1.0	0.4	1.0

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions	6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010
Operating activities:
Net income	$ 96.4	$ 40.5
Adjustments to reconcile net income to net cash provided by operating activities:
Net loss on retirement of debt		29.7
Depreciation	11.2	11.2
Accretion of debt discount	8.7	9.7
Deferred income taxes	6.0	6.2
Amortization of intangible assets	5.9	5.8
Stock-based compensation	5.2	8.3
Amortization of deferred financing costs	1.2	1.5
Excess income tax benefit from employee stock plans	(5.8)	(1.4)
Changes in current assets and liabilities, net	(111.8)	5.6
Other, net	(4.2)	(5.8)
Net cash provided by operating activities	12.8	111.3
Investing activities:
Capital expenditures, net	(14.5)	(10.1)
Net cash used in investing activities	(14.5)	(10.1)
Financing activities:
Proceeds from borrowings	620.5	370.8
Repayment of borrowings	(528.9)	(275.3)
Retirement of Convertible Notes due 2033 - debt component	(37.3)	(27.8)
Retirement of Convertible Notes due 2033 - equity component	(44.9)	(13.1)
Deferred financing costs	(4.1)
Payment of cash dividend	(0.8)
Proceeds from stock options exercised	11.7	2.5
Excess income tax benefit from employee stock plans	5.8	1.4
Retirement of Notes due 2014		(150.8)
Purchases of common stock for treasury		(41.2)
Net cash provided by (used in) financing activities	22.0	(133.5)
Increase (decrease) in cash and cash equivalents	20.3	(32.3)
Cash and cash equivalents at beginning of period	78.4	111.5
Cash and cash equivalents at end of period	$ 98.7	$ 79.2

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Income Per Share (Tables)

6 Months Ended

Jul. 01, 2011

Income Per Share [Abstract]

Computation of basic and diluted income per share

	Three Months Ended				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
(In millions, except per share data)	2011		2010		2011		2010
Basic Income per Share:
Net income	$	52.1	$	34.6	$	96.4	$	40.5
Weighted-average common shares outstanding		34.8		33.9		34.7		34.1
Net income per basic share	$	1.50	$	1.02	$	2.78	$	1.19
Diluted Income per Share:
Net income	$	52.1	$	34.6	$	96.4	$	40.5
Weighted-average common shares outstanding		34.8		33.9		34.7		34.1
Effect of dilutive securities:
Stock options and units		0.4		0.5		0.5		0.5
Convertible notes due 2033		0.5		1.0		0.4		1.0
Convertible notes due 2013		0.6		—		0.6		—
Diluted weighted-average common shares outstanding		36.3		35.4		36.2		35.6
Net income per diluted share	$	1.43	$	0.98	$	2.66	$	1.14

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Subsequent Event (Details) (USD $) In Millions	1 Months Ended	3 Months Ended	6 Months Ended
	Jul. 29, 2011	Jul. 02, 2010	Jul. 01, 2011
Subsequent Event [Line Items]
Retired remaining Notes due 2033		$ 40.9	$ (82.2)
Subsequent Event (Textuals) [Abstract]
Reduction of accreted value of convertible debt, debt component	11.6	28.6	37.4
Common stock issued for excess conversion value	0.2
Amount of excess conversion value	13.3		1.6
Convertible Notes Due 2033 [Member]
Subsequent Event [Line Items]
Retired remaining Notes due 2033	$ 24.9

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Summarized Financial Information of Anixter, Inc. (Tables)

6 Months Ended

Jul. 01, 2011

Summarized Financial Information of Anixter, Inc. [Abstract]

CONDENSED CONSOLIDATED BALANCE SHEETS

	July 1,		December 31,
	2011		2010
	(Unaudited)
Assets:
Current assets	$	2,558.2	$	2,284.3
Property, equipment and capital leases, net		104.0		99.8
Goodwill		375.9		374.3
Other assets		180.6		191.3
	$	3,218.7	$	2,949.7
Liabilities and Stockholder’s Equity:
Current liabilities	$	983.7	$	1,067.4
Subordinated notes payable to parent		9.5		8.5
Long-term debt		691.3		394.4
Other liabilities		134.8		160.6
Stockholder’s equity		1,399.4		1,318.8
	$	3,218.7	$	2,949.7

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

	Three Months Ended				Six Months Ended
	July 1,		July 2,		July 1,		July 2,
	2011		2010		2011		2010
Net sales	$	1,612.8	$	1,367.2	$	3,130.3	$	2,639.8
Operating income	$	99.2	$	71.8	$	183.6	$	130.3
Income before income taxes	$	89.4	$	63.2	$	166.3	$	79.5
Net income	$	54.9	$	40.1	$	103.8	$	52.5

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Comprehensive Income

6 Months Ended

Jul. 01, 2011

Comprehensive Income [Abstract]

COMPREHENSIVE INCOME

NOTE 2. COMPREHENSIVE INCOME

     Comprehensive income, net of tax, consisted of the following:

	Three Months Ended					Six Months Ended
	July 1,		July 2,			July 1,		July 2,
(In millions)	2011		2010			2011		2010
Net income	$	52.1	$	34.6		$	96.4	$	40.5
Foreign currency translation		5.5		(20.0	)		22.3		(13.0	)
Changes in unrealized pension cost		0.8		1.0			2.3		3.1
Changes in fair market value of derivatives		0.2		0.6			0.8		(0.3	)
Comprehensive income	$	58.6	$	16.2		$	121.8	$	30.3

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Stockholders' Equity

6 Months Ended

Jul. 01, 2011

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 11. STOCKHOLDERS’ EQUITY

Stock-Based Compensation

     At the end of the second quarter of 2011, there were 2.3 million shares reserved for issuance under various incentive plans. The Company’s Director Stock Unit Plan allows the Company to pay its non-employee directors annual retainer fees and, at their election, meeting fees in the form of stock units. Employee and director stock units are included in common stock outstanding on the date of vesting and stock options are included in common stock outstanding upon exercise by the participant. The fair value of stock options and stock units is amortized over the respective vesting period representing the requisite service period.

     The Company granted approximately 0.2 million stock units to employees during the six months ended July 1, 2011. The weighted-average grant-date fair value of the employee stock units was $69.91. During the six months ended July 1, 2011, the Company granted directors 18,679 stock units with a weighted-average grant-date fair value of $64.80. The Company granted approximately 0.1 million stock options to employees during the six months ended July 1, 2011 that had a weighted-average grant-date fair value of $28.50 and a weighted-average exercise price of $69.54. The fair value of the stock options granted during the six months ended July 1, 2011 was estimated using the Black-Scholes option pricing model with the following assumptions:

Expected Stock	Risk-Free Interest	Expected Dividend	Average Expected
Price Volatility	Rate	Yield	Life
38%	2.2% to 2.5%	0%	6.13 years

Share Repurchase

     In the six months ended July 2, 2010, the Company repurchased 1 million of its outstanding shares for $41.2 million. Purchases were made in the open market using available cash on hand. No repurchases were made in the six months ended July 1, 2011.

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Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Jul. 01, 2011	Dec. 31, 2010
Fair Value Measurements (Textuals) [Abstract]
Nonconvertible fixed-rate debt consisting of 5.95% Senior Notes due 2015	$ 200.0
Estimated fair market value of fixed-rate debt	617.7	672.8
Carrying value variable rate debt carrying value	449.5	348.8
Interest rate of Senior Notes	5.95%
Carrying Value [Member]
Fair Value Measurements (Textuals) [Abstract]
Carrying value of fixed rate debt	$ 514.7	$ 543.6

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Summary of Significant Accounting Policies (Policies)

6 Months Ended

Jul. 01, 2011

Summary of Significant Accounting Policies [Abstract]

Basis of presentation

     Basis of presentation: The accompanying condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in Anixter International Inc.’s (“the Company”) Annual Report on Form 10-K for the year ended December 31, 2010. The condensed consolidated financial information furnished herein reflects all adjustments (consisting of normal recurring accruals), which are, in the opinion of management, necessary for a fair presentation of the condensed consolidated financial statements for the periods shown. Certain amounts have been reclassified to conform to the current year presentation. The results of operations of any interim period are not necessarily indicative of the results that may be expected for a full fiscal year.

Recently issued accounting pronouncements not yet adopted

     Recently issued accounting pronouncements not yet adopted: In May 2011, the Financial Accounting Standards Board (“FASB”) issued guidance to amend the requirements related to fair value measurement which changes the wording used to describe many requirements in Generally Accepted Accounting Principles (“GAAP”) for measuring fair value and for disclosing information about fair value measurements. Additionally, the amendments clarify the FASB’s intent about the application of existing fair value measurement requirements. The amended guidance is effective for interim and annual periods beginning after December 15, 2011, and is applied prospectively. Adoption of this guidance at the beginning of fiscal 2012 is not expected to have a material impact on the Company’s consolidated financial statements.

     In June 2011, the FASB issued an update to Accounting Standards Codification (ASC) No. 220, “Presentation of Comprehensive Income,” which eliminates the option to present other comprehensive income and its components in the statement of stockholders’ equity. The Company can elect to present the items of net income and other comprehensive income in a single continuous statement of comprehensive income or in two separate, but consecutive statements. Under either method, the statement would need to be presented with equal prominence as the other primary financial statements. The amended guidance, which must be applied retrospectively, is effective for fiscal years, and interim periods within those years, beginning after December 15, 2011, with earlier adoption permitted.

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Millions, except Per Share data	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$ 1,612.8	$ 1,367.2	$ 3,130.3	$ 2,639.8
Cost of goods sold	1,239.5	1,054.2	2,404.3	2,037.1
Gross profit	373.3	313.0	726.0	602.7
Operating expenses	275.5	242.9	545.1	475.6
Operating income	97.8	70.1	180.9	127.1
Other (expense) income:
Interest expense	(12.8)	(13.2)	(25.6)	(28.8)
Net (loss) gain on retirement of debt	(0.1)	0.8		(29.7)
Other, net	(1.6)		(1.1)	(1.1)
Income before income taxes	83.3	57.7	154.2	67.5
Income tax expense	31.2	23.1	57.8	27.0
Net income	$ 52.1	$ 34.6	$ 96.4	$ 40.5
Net income per share:
Basic	$ 1.50	$ 1.02	$ 2.78	$ 1.19
Diluted	$ 1.43	$ 0.98	$ 2.66	$ 1.14

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Summarized Financial Information of Anixter, Inc. (Details) (USD $) In Millions	Jul. 01, 2011	Dec. 31, 2010
Total assets:
Current assets	$ 2,559.0	$ 2,281.2
Property, equipment and capital leases, net	89.4	84.6
Goodwill	375.9	374.3
Other assets	182.1	193.2
Total assets	3,206.4	2,933.3
Liabilities and Stockholder's Equity:
Current liabilities	985.2	1,071.2
Long-term debt	957.1	688.8
Other liabilities	135.7	162.5
Stockholder's equity	1,128.4	1,010.8
Total liabilities and stockholders' equity	3,206.4	2,933.3
Guarantor Subsidiaries [Member]
Total assets:
Current assets	2,558.2	2,284.3
Property, equipment and capital leases, net	104.0	99.8
Goodwill	375.9	374.3
Other assets	180.6	191.3
Total assets	3,218.7	2,949.7
Liabilities and Stockholder's Equity:
Current liabilities	983.7	1,067.4
Subordinated notes payable to parent	9.5	8.5
Long-term debt	691.3	394.4
Other liabilities	134.8	160.6
Stockholder's equity	1,399.4	1,318.8
Total liabilities and stockholders' equity	$ 3,218.7	$ 2,949.7

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Summarized Financial Information of Anixter, Inc. (Details 1) (USD $) In Millions	3 Months Ended		6 Months Ended
	Jul. 01, 2011	Jul. 02, 2010	Jul. 01, 2011	Jul. 02, 2010
Condensed Consolidated Statements of Operations [Abstract]
Net sales	$ 1,612.8	$ 1,367.2	$ 3,130.3	$ 2,639.8
Operating income	97.8	70.1	180.9	127.1
Income before income taxes	83.3	57.7	154.2	67.5
Net income	52.1	34.6	96.4	40.5
Guarantor Subsidiaries [Member]
Condensed Consolidated Statements of Operations [Abstract]
Net sales	1,612.8	1,367.2	3,130.3	2,639.8
Operating income	99.2	71.8	183.6	130.3
Income before income taxes	89.4	63.2	166.3	79.5
Net income	$ 54.9	$ 40.1	$ 103.8	$ 52.5