Discontinued Operations

6 Months Ended

Dec. 31, 2018

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						Six Months Ended
	December 31,						December 31,
	2018			2017			2018			2017
Net Revenues:
Sold Hospitals	$	7		$	6		$	13		$	(6	)
	$	7		$	6		$	13		$	(6	)
Loss before income taxes:
Sold Hospitals	$	(25	)	$	(37	)	$	(63	)	$	(54	)
Life sciences and engineering		(24	)		(36	)		(49	)		(72	)
Loss before income taxes		(49	)		(73	)		(112	)		(126	)
Income tax expense		0			0			0			0
Loss from discontinued operations	$	(49	)	$	(73	)	$	(112	)	$	(126	)

Sold Hospitals –  The loss before income taxes of the Sold Hospitals results primarily from retained professional liability claims expenses.

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 six months ended December 31, 2018 and 2017, respectively.

The components of pension expense for the three and six months ended December 31, 2018 and 2017, respectively, were as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2018			2017			2018			2017
Interest Cost	$	14		$	14		$	28		$	28
Expected return on assets		(9	)		(9	)		(18	)		(18	)
Amortization of prior service cost		19			31			39			62
Net pension expense	$	24		$	36		$	49		$	72

SunLink contributed $53 to the plan in the six months ended December 31, 2018 and expects to contribute an additional $55 during the last two fiscal quarters of the fiscal year ending June 30, 2019.