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Discontinued Operations
3 Months Ended
Sep. 30, 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

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Net Revenues:

 

 

 

 

 

 

 

 

Parkside

 

$

14

 

 

$

1,845

 

Sold Hospitals

 

 

10

 

 

 

7

 

 

 

$

24

 

 

$

1,852

 

Loss before income taxes:

 

 

 

 

 

 

 

 

Parkside

 

$

(60

)

 

$

(58

)

Sold Hospitals

 

 

(33

)

 

 

(11

)

Life sciences and engineering

 

 

(25

)

 

 

(25

)

Earnings (Loss) from operations before income taxes

 

 

(118

)

 

 

(94

)

Income tax expense

 

 

0

 

 

 

0

 

Earnings (Loss) from discontinued operations

 

$

(118

)

 

$

(94

)

 

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 was $2,136 in the fiscal year ended June 30, 2019.  The net proceeds of the sale were retained for working capital and general corporate purposes.

 

Sold Hospitals – Subsidiaries of the Company have sold substantially all of the assets of four hospital (“Sold Hospitals”) during the period July 2, 2012 to August 19, 2016. The loss before income taxes of the Sold Hospitals results primarily from the effects of retained professional liability insurance and 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 months ended September 30, 2019 and 2018, respectively.

The components of pension expense for the three months ended September 30, 2019 and 2018, respectively, were as follows:

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2019

 

 

2018

 

Interest Cost

 

$

14

 

 

$

14

 

Expected return on assets

 

 

(9

)

 

 

(9

)

Amortization of prior service cost

 

 

20

 

 

 

20

 

Net pension expense

 

$

25

 

 

$

25

 

 

SunLink contributed $33 to the plan in the three months ended September 30, 2019 and expects to contribute an additional $100 during the remaining three fiscal quarters of the fiscal year ending June 30, 2020.