ANIXTER INTERNATIONAL INC - 10-Q filing on 2017-10-24

STOCKHOLDERS' EQUITY	9 Months Ended
Sep. 29, 2017
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY During the second quarter of 2017, the Company's shareholders approved the 2017 Stock Incentive Plan consisting of 2.0 million shares of the Company's common stock. Prior approved stock incentive plans have been closed and will not be allowed to issue future stock grants. At the end of the third quarter of 2017, there were 2.0 million shares reserved for issuance under the 2017 Stock Incentive Plan. Under such plan, the Company pays 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 employee stock options and units is amortized over the respective vesting period representing the requisite service period, generally three, four or six years for stock units and four years for stock options. Director stock units are expensed in the period in which they are granted, as these vest immediately. During the first quarter of 2016, Anixter initiated a performance-based restricted stock unit ("performance units") program that will be earned in one-third tranches to be evaluated on the anniversary of the first, second and third performance cycles. Each evaluation period will be based on the achievement of the Company's total shareholder return ("TSR") relative to the TSR of the S&P Mid Cap 400 index. The earned shares are issued on the third anniversary of the grant date. The granted units will be adjusted based on the specific payout percentage of the grant agreement. The fair value of each tranche related to the performance units were estimated at the grant date using the Monte Carlo Simulation pricing model. During the three and nine months ended September 29, 2017, the Company granted 11,446 and 184,633 stock units, respectively, to employees, with a weighted-average grant-date fair value of $0.8 million and $15.7 million, respectively. During the three and nine months ended September 29, 2017, the Company granted 3,798 and 37,754 performance units, respectively, to employees, with a weighted-average grant-date fair value of $0.3 million and $3.3 million, respectively. During the three and nine months ended September 29, 2017, the Company granted directors 8,087 and 23,861 stock units, respectively, with a weighted-average grant-date fair value of $0.6 million and $1.9 million, respectively. Antidilutive stock options and units are excluded from the calculation of weighted-average shares for diluted earnings per share. For the third quarter of 2017 and 2016, the antidilutive stock options and units were immaterial.

STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 29, 2017

During the second quarter of 2017, the Company's shareholders approved the 2017 Stock Incentive Plan consisting of 2.0 million shares of the Company's common stock. Prior approved stock incentive plans have been closed and will not be allowed to issue future stock grants. At the end of the third quarter of 2017, there were 2.0 million shares reserved for issuance under the 2017 Stock Incentive Plan. Under such plan, the Company pays 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 employee stock options and units is amortized over the respective vesting period representing the requisite service period, generally three, four or six years for stock units and four years for stock options. Director stock units are expensed in the period in which they are granted, as these vest immediately.

During the first quarter of 2016, Anixter initiated a performance-based restricted stock unit ("performance units") program that will be earned in one-third tranches to be evaluated on the anniversary of the first, second and third performance cycles. Each evaluation period will be based on the achievement of the Company's total shareholder return ("TSR") relative to the TSR of the S&P Mid Cap 400 index. The earned shares are issued on the third anniversary of the grant date. The granted units will be adjusted based on the specific payout percentage of the grant agreement. The fair value of each tranche related to the performance units were estimated at the grant date using the Monte Carlo Simulation pricing model.

During the three and nine months ended September 29, 2017, the Company granted 11,446 and 184,633 stock units, respectively, to employees, with a weighted-average grant-date fair value of $0.8 million and $15.7 million, respectively. During the three and nine months ended September 29, 2017, the Company granted 3,798 and 37,754 performance units, respectively, to employees, with a weighted-average grant-date fair value of $0.3 million and $3.3 million, respectively. During the three and nine months ended September 29, 2017, the Company granted directors 8,087 and 23,861 stock units, respectively, with a weighted-average grant-date fair value of $0.6 million and $1.9 million, respectively. Antidilutive stock options and units are excluded from the calculation of weighted-average shares for diluted earnings per share. For the third quarter of 2017 and 2016, the antidilutive stock options and units were immaterial.