Discontinued Operations

3 Months Ended

Sep. 30, 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
	September 30,
	2020			2019
Net Revenues:
Sold Hospitals	$	3		$	24
	$	3		$	24
Loss before income taxes:
Sold Hospitals	$	(29	)	$	(93	)
Life sciences and engineering		(20	)		(25	)
Loss from discontinued operations before income taxes		(49	)		(118	)
Income tax expense		0			0
Loss from discontinued operations	$	(49	)	$	(118	)

Sold Hospitals – Subsidiaries of the Company have sold substantially all the assets of five hospitals (“Sold Hospitals”) during the period July 2, 2012 to March 17, 2019. 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 months ended September 30, 2020 and 2019, respectively.

The components of pension expense for the three months ended September 30, 2020 and 2019, respectively, were as follows:

	Three Months Ended
	September 30,
	2020			2019
Interest Cost	$	10		$	14
Expected return on assets		(9	)		(9	)
Amortization of prior service cost		19			20
Net pension expense	$	20		$	25

SunLink contributed $25  to the plan in the three months ended September 30, 2020 and expects to contribute an additional $75 during the remaining three fiscal quarters of the fiscal year ending June 30, 2021.