4.	DISCONTINUED OPERATIONS

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

Chestatee Hospital—On August 19, 2016, Southern Health Corporation of Dahlonega, Inc., (“Chestatee”), a wholly owned subsidiary of the Company, sold substantially all of the assets and certain liabilities of Chestatee Regional Hospital in Dahlonega, Georgia through an asset purchase agreement for $15,000 subject to adjustment for the book value of certain assets and certain liabilities assumed at the sale date. The pre-tax gain on sale of $7,265 is subject to adjustment for various purchase price adjustments. Chestatee retained certain liabilities, including for employee related liabilities and certain Medicare and Medicaid liabilities, relating to the period it owned and operated the hospital. A portion of the net proceeds were used for the repayment of debt. The assets sold and liabilities assumed are shown as assets held for sale in our consolidated balances as of June 30, 2016.

Other Sold Hospitals—Subsidiaries of the Company have sold substantially all of the assets of three hospitals (“Other Sold Hospitals”) during the period July 2, 2012 to December 31, 2014. The income (loss) before income taxes of the Other Sold Hospitals results primarily from the affects of prior year Medicare and Medicaid cost report settlements.

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 fiscal years ended June 30, 2017, 2016 and 2015.

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

Discontinued Operations—Summary Statement of Earnings Information


	Years Ended June 30,
	2017			2016			2015
Net Revenues:
Chestatee Hospital	$	2,388		$	14,714		$	18,086
Other Sold Hospitals		423			356			6,988

	$2,811			$15,070			$25,074

Earnings (Loss) Before Income Taxes:
Chestatee Hospital	$	56		$	(1,961	)	$	315
Other Sold Hospitals		304			(27	)		(428	)
Life sciences and engineering		(149	)		(181	)		(105	)

Earnings (loss) before income taxes		211			(2,169	)		(218	)

Earnings (loss) on Sale:
Chestatee Hospital		7,265			0			0
Other Sold Hospitals		0			0			(197	)

Gain (Loss) on Sale		7,265			0			(197	)

Income tax expense (benefit)		2,829			0			(3	)

Earnings (Loss) from discontinued operations	$	4,647		$	(2,169	)	$	(242	)