Note 3 - Discontinued Operations

9 Months Ended

Mar. 31, 2016

Notes to Financial Statements

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

3)     Discontinued Operations

In pursuing our business strategy, we have divested certain businesses and recorded activities of these businesses as discontinued operations.

Discontinued operations for the three and nine months ended March 31, 2016 and 2015 are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2016			2015			2016			2015
Net sales	$	-		$	-		$	-		$	-
Pre-tax earnings		(95	)		(186	)		(437	)		(833	)
(Provision) benefit for taxes		40			47			147			240
Net earnings (loss) from discontinued operations	$	(55	)	$	(139	)	$	(290	)	$	(593	)

On March 30, 2012, Air Distribution Products Group,

(“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 promissory note from the buyer. The note was secured by a mortgage on the ADP real estate sold in the transaction in Detroit Lakes, MN, Medina, NY, and Powder Springs, GA. During the first quarter 2016, the private equity buyer of ADP sold one of the facilities securing the note. The Company released all mortgages on the properties and accepted an advanced payment of $2.8 million during October 2015 in order to reduce repayment risk and settle all obligations under the note. The Company recorded a $0.2 million loss in discontinued operations during the first quarter 2016 related to this transaction.

The Company remained the obligor of ADP’s Philadelphia, PA facility and administrative offices. We have entered into a renewable sublease agreement with a third party for this space. Our obligation with respect to the lease is $0.8 million, of which $0.6 million was recorded as a liability at March 31, 2016. We do not expect to record additional charges related to these obligations.

Assets and liabilities related to our discontinued operations appear in the condensed consolidated balance sheets are as follows (in thousands):

	March 31, 201 6		June 30, 2015
Current assets	$	-	$	23
Other non-current assets		14		3,014
Accrued expenses		1,400		1,383
Accrued pension and other non-current liabilities		203		896