This excerpt taken from the AXE 10-K filed Feb 23, 2007.
Note A Basis of Presentation
In the parent company condensed financial statements, the Companys investment in subsidiaries is stated at cost plus equity in undistributed earnings of subsidiaries since the date of acquisition. The Companys share of net income of its unconsolidated subsidiaries is included in consolidated income using the equity method. The parent company financial statements should be read in conjunction with the Companys consolidated financial statements.
ANIXTER INTERNATIONAL INC.