DISCONTINUED OPERATIONS DISCONTINUED OPERATIONS

3 Months Ended

Apr. 01, 2016

Discontinued Operations and Disposal Groups [Abstract]

DISCONTINUED OPERATIONS

DISCONTINUED OPERATIONS

On February 9, 2015, our Board of Directors approved the disposition of the OEM Supply - Fasteners ("Fasteners") business.  On February 11, 2015, through our wholly-owned subsidiary Anixter Inc., we entered into a definitive asset purchase agreement with American Industrial Partners ("AIP") to sell the Fasteners business for $380.0 million in cash, subject to certain post-closing adjustments. We closed the sale of the Fasteners business to AIP, excluding certain foreign locations, on June 1, 2015 and settled all net working capital adjustments relating to these entities in the fourth quarter of 2015. We received cash of $371.8 million on the sale of the Fasteners business. Including transaction related costs of $16.4 million, the sale resulted in a pre-tax gain of $40.6 million ($23.5 million, net of tax).

The assets and liabilities and operating results of the Fasteners business are presented as "discontinued operations" in our Condensed Consolidated Financial Statements. Current assets of discontinued operations are presented within "Other current assets" in the Condensed Consolidated Balance Sheets. Current and long-term liabilities of discontinued operations are presented within "Accrued Expenses" and "Other liabilities," respectively, in the Condensed Consolidated Balance Sheets. The components of the results from discontinued operations reflected in our Condensed Consolidated Statements of Cash Flows were immaterial.

We allocated interest costs to discontinued operations as a result of the sale of the Fasteners business. There was no allocated interest cost in the first quarter of 2016. The allocated interest cost was $0.5 million in the first quarter of 2015. This represents the amount of interest costs not directly attributable to our other operations that would not have been incurred if we had the proceeds from the sale of the Fasteners business at the beginning of the period.

The following represents the components of the results from discontinued operations as reflected in our Condensed Consolidated Statements of Comprehensive Income (Loss):

	Three Months Ended
(In millions)	April 1, 2016			April 3, 2015
Net sales	$	0.5		$	249.4
Operating income	$	—		$	11.9
(Loss) income from discontinued operations before income taxes	$	(0.7	)	$	11.2
Income tax (benefit) expense from discontinued operations	$	(0.3	)	$	18.6
Net loss from discontinued operations	$	(0.4	)	$	(7.4	)

As reflected on our Condensed Consolidated Balance Sheets as of April 1, 2016 and January 1, 2016, the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows:

(In millions)	April 1, 2016		January 1, 2016
Assets of discontinued operations:
Accounts receivable	$	0.3	$	2.6
Inventories	1.3		1.2
Total assets of discontinued operations	$	1.6	$	3.8
Liabilities of discontinued operations:
Accounts payable	$	1.4	$	1.3
Accrued expenses	4.6		4.0
Other liabilities	1.1		1.7
Total liabilities of discontinued operations	$	7.1	$	7.0