Note 3 - Discontinued Operations

9 Months Ended

Mar. 31, 2017

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,

2017

and

2016

are as follows (in thousands):

	Three Months Ended						Nine Months Ended
	March 31,						March 31,
	2017			2016			2017			2016
Net sales	$	-		$	-		$	-		$	-
Pre-tax earnings		(8	)		(95	)		(57	)		(437	)
(Provision) benefit for taxes		9			40			14			147
Net earnings (loss) from discontinued operations	$	1		$	(55	)	$	(43	)	$	(290	)

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.

Assets and liabilities related to discontinued operations appear in our Unaudited Condensed Consolidated Balance Sheets as follows (in thousands):

	March 31, 201 7		June 30, 2016
Other non-current assets		14		14
Accrued expenses		920		1,204
Accrued pension and other non-current liabilities		-		55