Discontinued Operations

9 Months Ended

Mar. 31, 2016

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Note 3. – Discontinued Operations

All of the businesses discussed in the note below are reported as discontinued operations and the condensed consolidated financial statements for all prior periods have been adjusted to reflect this presentation.

Results for all of the businesses included in discontinued operations are presented in the following table:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Net Revenues:
Fulton Hospital	$	20		$	(9	)	$	84		$	6,721
Dexter Hospital		4			186			32			764
Memorial of Adel		(8	)		10			32			63
	$	16		$	187		$	148		$	7,548
Earnings (loss) before income taxes:
Fulton Hospital	$	(71	)	$	(299	)	$	1		$	(1,196	)
Dexter Hospital		1			184			(224	)		754
Memorial of Adel		(15	)		2			4			34
Life sciences and engineering		(36	)		(31	)		(107	)		(95	)
Earnings (loss) before income taxes		(121	)		(144	)		(326	)		(503	)
Loss on Sale:
Fulton Hospital		0			(6	)		0			(197	)
Earnings (Loss) before income taxes		0			(6	)		0			(197	)
Income tax expense (benefit)		—			(55	)		0			(291	)
Earnings (Loss) from discontinued operations	$	(121	)	$	(95	)	$	(326	)	$	(409	)

Fulton Hospital – On December 31. 2014, the Company’s subsidiary, HealthMont of Missouri, LLC (“Fulton”) sold substantially all the assets of its Callaway Community Hospital and related clinics in Fulton, Missouri for approximately $6,090. Fulton retained accounts receivable and certain other assets, including the right to Medicare and Medicaid incentive payments (“EHR Funds”) for meaningful use of electronic health record technology, and substantially all liabilities of the hospital as of the sale closing date. Fulton’s operations have been classified as discontinued operations in our condensed consolidated financial statements for the three and nine month periods ended March 31, 2016 and 2015. In the three months ended March 31, 2016, Fulton recorded expenses of $91 relating to liabilities retained at the sale date, consisting primarily of retained employment related expenses.

Dexter Hospital - On December 31, 2012, the Company completed the sale of substantially all the assets and the leasehold interest of its subsidiary, Dexter Hospital, LLC (“Dexter”), to Southeast Health Center of Stoddard County, LLC, an indirect subsidiary of Southeast Missouri Hospital Association (“SoutheastHEALTH”). Dexter’s operations have been classified as discontinued operations in our condensed consolidated financial statements for the three and nine month periods ended March 31, 2016 and 2015. In the nine months ended March 31, 2016, Dexter recorded expenses of $256 relating to liabilities retained at the sale date, resulting primarily from an increase to professional claims liability reserve.

Memorial Hospital of Adel – On July 2, 2012, the Company and its HealthMont of Georgia, Inc. (“Memorial”) subsidiary completed the sale of substantially all the assets of the Company’s Memorial Hospital of Adel and Memorial Convalescent Center to the Hospital Authority of Tift County, Georgia for approximately $8,350. Memorial’s operations have been classified as discontinued operations in our condensed consolidated financial statements for the three and nine month periods ended March 31, 2016 and 2015.

Life Sciences and Engineering Segment – SunLink retained a defined benefit retirement plan which covered substantially all of the employees of this segment when the segment was sold in fiscal 1998. Effective February 28, 1997, the plan was amended to freeze participant benefits and close the plan to new participants. Pension expense and related tax benefit or expense is reflected in the results of operations for this segment for the three and nine months ended March 31, 2016 and 2015.

The components of pension expense for the three and nine months ended March 31, 2016 and 2015, respectively, were as follows:

	Three Months Ended						Six Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Interest Cost	$	16		$	16		$	48		$	49
Expected return on assets		(7	)		(7	)		(24	)		(22	)
Amortization of prior service cost		22			23			83			70
Net pension expense	$	31		$	32		$	107		$	97

SunLink contributed $32 and $96 to the plan in the three and nine months ended March 31, 2016.