Financial Information by Segment

3 Months Ended

Sep. 30, 2018

Note 12. – Financial Information by Segment

Under ASC Topic No. 280, Segment Reporting, operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Our chief operating decision-making group is composed of SunLink’s chief executive officer and other members of SunLink’s senior management. Our two reportable operating segments are Healthcare Services and Pharmacy.

We evaluate performance of our operating segments based on revenue and operating profit (loss). At the beginning of the current fiscal year, the Company modified the approach to certain assets, and expense allocations to calculate segment assets, operating profit and depreciation and amortization. All prior year amounts have been changed to consistently apply the changed allocation method used in the current year. Segment information as of September 30, 2018 and 2017 and for the three months then ended is as follows:


	Healthcare Services			Pharmacy			Corporate and Other			Total
As of and for the three months ended September 30, 2018,
Net revenues from external customers	$	5,536		$	6,516		$	0		$	12,052
Operating profit (loss)		(247	)		(57	)		(454	)		(758	)
Depreciation and amortization		162			256			0			418
Assets		13,451			8,067			4,195			25,713
Expenditures for property, plant and equipment		187			269			0			456
As of and for the three months ended September 30, 2017
Net revenues from external customers	$	5,654		$	7,589		$	0		$	13,243
Operating profit (loss)		(57	)		423			(465	)		(99	)
Depreciation and amortization		158			270			1			429
Assets		14,576			9,614			11,212			35,402
Expenditures for property, plant and equipment		476			208			0			684