Discontinued Operations
Discontinued operations of LeTourneau
On October 24, 2011, we completed the sale of LeTourneau Technologies Drilling Systems, Inc. to Cameron International Corporation for $375.0 million in cash, subject to a post-closing working capital adjustment of $56.3 million that we paid in fiscal 2012. The LeTourneau facilities in Houston, Texas and Vicksburg, Mississippi were sold to Cameron International Corporation in conjunction with this transaction. We entered into a Transition Manufacturing and Supply Agreement to allow for the orderly transfer of drilling products production from Longview, Texas and a Steel Supply Agreement to allow the buyer time to develop other sources. In conjunction with our entrance into the Transition Manufacturing and Supply Agreement, we recognized an upfront loss and related liability of $23.3 million on the supply agreements at the time of sale. The liability was utilized and adjusted during fiscal 2013 and 2012 to reflect actual results of performance under the agreements. The agreements expired in fiscal 2013.
The drilling products business is reflected as a discontinued operation and all results of operations have been reflected as discontinued operations in the Consolidated Statements of Income. Assets and liabilities that transferred after our fiscal year ends or remain our obligation are classified as assets and liabilities of discontinued operations in the Consolidated Balance Sheets.
The operating results of the discontinued operations included in the Consolidated Financial Statements are as follows:
|
| | | | | | | | | | | |
(in thousands) | October 25,
2013 | | October 26,
2012 | | October 28,
2011 |
Net sales | $ | — |
| | $ | — |
| | $ | 102,102 |
|
| | | | | |
Loss before income taxes | (345 | ) | | (6,120 | ) | | (32,843 | ) |
Income tax benefit | 120 |
| | 1,060 |
| | 11,497 |
|
Loss from discontinued operations, net of tax | $ | (225 | ) | | $ | (5,060 | ) | | $ | (21,346 | ) |
