DISCONTINUED OPERATIONS

On February 9, 2015, Anixter's Board of Directors approved the disposition of the OEM Supply - Fasteners ("Fasteners") business. On February 11, 2015, through its wholly-owned subsidiary Anixter Inc., Anixter 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. The Company closed the sale of the Fasteners business to AIP, excluding certain foreign locations which were subsequently sold, on June 1, 2015 and settled all net working capital adjustments relating to these entities in the fourth quarter of 2015. Anixter 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 $40.3 million ($23.3 million, net of tax).

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

Interest costs were allocated to discontinued operations as a result of the sale of the Fasteners business. There were no allocated interest costs in the years ended December 29, 2017 and December 30, 2016. The allocated interest costs were $1.1 million in the twelve months ended January 1, 2016. This represents the amount of interest costs not directly attributable to Anixter's other operations that would not have been incurred if the Company had the proceeds from the sale of the Fasteners business at the beginning of the period.

In connection with the disposition of the Fasteners business, the Company recognized a pension curtailment gain of $5.1 million and special termination benefit costs of $0.3 million in 2015.

The following represents the components of the results from discontinued operations as reflected in the Company's Consolidated Statements of Income:



	Twelve Months Ended
(In millions)	December 30, 2016			January 1, 2016
Net sales	$	1.7		$	405.9
Operating (loss) income	$	(0.2	)	$	14.2
(Loss) income from discontinued operations before income taxes	$	(0.1	)	$	11.9
(Loss) gain on sale of discontinued operations	$	(0.7	)	$	41.0
Income tax (benefit) expense from discontinued operations	$	(0.2	)	$	22.2
Net (loss) income from discontinued operations	$	(0.6	)	$	30.7

As reflected on the Company's Consolidated Balance Sheets as of December 30, 2016, the components of assets and liabilities of the Fasteners businesses classified as "discontinued operations" are as follows:



(In millions)	December 30, 2016
Assets of discontinued operations:
Accounts receivable	$	0.1
Other current assets	0.1
Total assets of discontinued operations	$	0.2

Liabilities of discontinued operations:
Accounts payable	$	0.2
Accrued expenses	2.2
Total liabilities of discontinued operations	$	2.4