Discontinued Operations

9 Months Ended

Mar. 31, 2020

Discontinued Operations And Disposal Groups [Abstract]

Discontinued Operations

Note 3. – Discontinued Operations

All 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 the businesses included in discontinued operations are presented in the following table:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2020			2019			2020			2019
Net Revenues:
Parkside Nursing Home	$	13		$	1,723		$	30		$	5,640
Sold Hospitals		(24	)		3			(4	)		15
	$	(11	)	$	1,726		$	26		$	5,655
Loss before income taxes:
Parkside Nursing Home	$	(13	)	$	(185	)	$	(193	)	$	(121	)
Sold Hospitals		(66	)		(126	)		(181	)		(188	)
Life sciences and engineering		(33	)		(25	)		(101	)		(74	)
Loss from discontinued operations before income taxes		(112	)		(336	)		(475	)		(383	)
Gain on sale of businesses		0			2,136			0			2,136
Income tax expense		0			433			0			433
Earnings (Loss) from discontinued operations	$	(112	)	$	1,367		$	(475	)	$	1,320

Parkside Nursing Home — On March 17, 2019, a subsidiary of the Company sold its Parkside Ellijay Nursing Home 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, which was recognized in the three and nine months ended March 31, 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 the assets of four hospitals (“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 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, 2020 and 2019, respectively.

The components of pension expense for the three months ended March 31, 2020 and 2019, respectively, were as follows:

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2020			2019			2020			2019
Interest Cost	$	12		$	14		$	36		$	42
Expected return on assets		(8	)		(9	)		(25	)		(27	)
Amortization of prior service cost		29			20			90			59
Net pension expense	$	33		$	25		$	101		$	74

SunLink contributed $99  to the plan in the nine months ended March 31, 2020 and expects to contribute an additional $33 during the fourth fiscal quarter of the fiscal year ending June 30, 2020.