4.	Discontinued Operations

Discontinued operations of LeTourneau

On October 24, 2011, we completed the sale of LeTourneau’s drilling products business for $375.0 million in cash, subject to a post-closing working capital adjustment of which $56.3 million was paid in 2012. The drilling products business is reflected as a discontinued operation and all results of operations have been reflected as discontinued operations in the Consolidated Statement of Income and assets and liabilities that transferred after our fiscal year end or remain our obligation are classified as assets and liabilities of discontinued operations in the Consolidated Balance Sheet. We have entered into a Transition Manufacturing and Supply Agreement to allow the orderly transfer of drilling products work from the Longview manufacturing facility and a Steel Supply Agreement to allow the buyer time to develop other sources. The agreements resulted in our recognition of a $23.3 million loss on the supply agreements at the time of sale. The loss has been adjusted during 2012 to reflect actual results of performance under the agreements.

The operating results of the discontinued operations included in the consolidated financial statements are as follows:


	October 26,			October 28,
(in thousands)	2012			2011
Net sales	$	—		$	102,102
Loss before income taxes		(6,120	)		(32,843	)
Income tax benefit		1,060			11,497

Loss from discontinued operations, net of tax	$	(5,060	)	$	(21,346	)