Assets Held for Sale

6 Months Ended

Dec. 31, 2020

Assets Held for Sale

Assets held for Sale

Note 19. Assets Held for Sale

In the first quarter of Fiscal 2019, the Company approved a plan to sell the Cody API business, which includes the manufacturing and distribution of active pharmaceutical ingredients for use in finished goods production. The Company was unable to sell the Cody API business as an ongoing operation and sold the equipment utilized by the Cody API business during Fiscal 2020. The Company ceased operations at Cody Labs, leased a portion of the real estate to a third party and intends to sell the remaining real estate. In October 2020, the Company entered into an agreement for the sale of real estate associated with the Cody API business for $3.8 million before fees and selling costs, subject to certain closing conditions. However, prior to closing, the buyer terminated the transaction in December 2020. The Company continues to actively market the real estate and is currently in negotiations with a prospective buyer. As of December 31, 2020, the remaining real estate associated with the Cody API business, totaling $2.7 million, was recorded in the assets held for sale caption in the Consolidated Balance Sheet.

The following table summarizes the financial results of the Cody API business for the three and six months ended December 31, 2020 and 2019:

	Three Months Ended				Six Months Ended
	December 31,				December 31,
(In thousands)	2020		2019		2020		2019
Net sales	$	—	$	669	$	—	$	1,736
Pretax loss attributable to Cody API business		(115)		(644)		(617)		(5,061)

The pretax loss attributable to the Cody API business during the six months ended December 31, 2019 includes a full impairment of a $1.2 million ROU lease asset that was recorded upon adoption of ASU No. 2016-02 on July 1, 2019.