Discontinued Operations

9 Months Ended

Mar. 31, 2019

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,
	2019			2018			2019			2018
Net Revenues:
Parkside	$	1,723		$	1,846		$	5,640		$	5,223
Sold Hospitals		3			77			15			71
	$	1,726		$	1,923		$	5,655		$	5,294
Loss before income taxes:
Parkside	$	(185	)	$	(10	)	$	(121	)	$	(411	)
Sold Hospitals		(126	)		54			(188	)		6
Life sciences and engineering		(25	)		(36	)		(74	)		(108	)
Earnings (Loss) from operations before income taxes		(336	)		8			(383	)		(513	)
Gain (Loss) on sale of businesses		2,136			(3	)		2,136			(9	)
Income tax expense		433			0			433			0
Earnings (Loss) from discontinued operations	$	1,367		$	5		$	1,320		$	(522	)

Parkside Nursing Home — On March 17, 2019, a subsidiary of the Company sold its Parkside Ellijay Nursing Home (“Parkside”) and related real estate for $7,300 subject to adjustment for the book value of certain assets and liabilities on the sale date. The pre-tax gain on the sale is $2,136, which is also subject to adjustment for the book value of certain assets and liabilities on the sale date. The net proceeds of the sale were retained for working capital and general corporate purposes.

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 nine months ended March 31, 2019 and 2018, respectively.

The components of pension expense for the three and nine months ended March 31, 2019 and 2018, respectively, were as follows:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2019			2018			2019			2018
Interest Cost	$	14		$	14		$	42		$	42
Expected return on assets		(9	)		(9	)		(27	)		(27	)
Amortization of prior service cost		20			31			59			93
Net pension expense	$	25		$	36		$	74		$	108

SunLink contributed $80 to the plan in the nine months ended March 31, 2019 and expects to contribute an additional $28 during the last fiscal quarter of the fiscal year ending June 30, 2019.