Note 15 - Discontinued Operations

12 Months Ended

Jun. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

15. DISCONTINUED OPERATIONS

In June 2014, the Company divested the American Foodservice Company, a manufacturer of custom design and fabrication of counter systems and cabinets, in our Food Service Equipment Group segment. In connection with this sale, the Company received proceeds of $3.1 million and recorded a net loss on disposal of $3.2 million.

In December 2011, the Company divested the Air Distribution Products Group, (“ADP”). In connection with this sale, the Company adjusted the carrying value of ADP’s assets to their net realizable value based on a range of expected sale prices. As a result, the Company recorded goodwill impairment charges of $14.9 million and impairment charges of $5.0 million to fixed assets.

On March 30, 2012, ADP was sold to a private equity buyer for consideration of $16.1 million consisting of $13.1 million in cash and a $3.0 million note secured by first mortgages on three ADP facilities. During the quarter ended March 31, 2012, additional pre-tax charges of $2.6 million were taken in connection with the closing of the sale. These charges related primarily to the impairment of a non-cancellable lease liability that the buyer elected not to assume as part of the purchase.

During 2014, the Company received notice that its obligations under a guarantee provided to the buyers of ADP were triggered as a result of its withdrawal from both of the multi-employer pension plans in which ADP previously participated.  As a result, the Company has recorded charges of $1.6 million in excess of the value of the guarantee previously recorded in order to fully settle these obligations. 

The following table summarizes the Company’s discontinued operations activity, by operation, for the years ended June 30, 2014, 2013 and 2012 (in thousands):

	Year Disposed	2014			2013			2012
Sales:
American Foodservice Company	2014	$	20,556		$	27,870		$	24,054
Air Distribution Products Group	2012		-			-			43,537
			20,556			27,870			67,591
Income (loss) before taxes:
American Foodservice Company (1)	2014		(8,339	)		1,934			1,220
Air Distribution Products Group	2012		(1,849	)		(451	)		(24,871	)
Other loss from discontinued operations			(387	)		(207	)		(453	)
Income (loss) before taxes from discontinued operations			(10,575	)		1,276			(24,104	)
(Provision) benefit for tax			3,692			(482	)		9,113
Net income (loss) from discontinued operations		$	(6,883	)	$	794		$	(14,991	)

(1) American Foodservice Company incurred a pretax operational loss of $3.5 million and pretax loss on sale of $4.8 million.

Assets and liabilities related to discontinued operations to be retained by the Company are recorded in the Consolidated Balance Sheets at June 30 under the following captions (in thousands):

	2014		2013
Current assets	$	199	$	483
Non-current assets		3,014		3,000
Current liabilities		2,340		795
Non-current liabilities		1,791		3,219