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Note 15 - Discontinued Operations
 12 Months Ended
Jun. 30, 2015
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, (“AFS”) 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.


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. Pursuant to the transaction, the Company received a $3.0 million promissory note from the buyer. The note is secured by a mortgage on the ADP real estate sold in the transaction in Detroit Lakes, MN, Medina, NY, and Powder Springs, GA. The Company remained the obligor of ADP’s Philadelphia, PA facility and administrative offices, and sublet space to the buyer after the divestiture. The buyer terminated their obligation under the Philadelphia sublease in September 2014. On February 4, 2015 we entered into a one year renewable sublease agreement for this building. Our net obligation with respect to the remaining Philadelphia leases is $1.3 million, of which $0.9 million was recorded as a liability at June 30, 2015. We do not expect to record additional charges related to these obligations


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. The last of these obligations were settled in July of fiscal year 2016 by a $0.5 million payment to the final multi-employer plan.


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


  Year Disposed     2015       2014       2013  

Sales:

                          

American Foodservice Company

2014

   $ -     $ 20,556     $ 27,870  

Air Distribution Products Group

2012

     -       -       -  
        -       20,556       27,870  

Income (loss) before taxes:

                          

American Foodservice Company (1)

2014

     (492 )     (8,339 )     1,934  

Air Distribution Products Group

2012

     (137 )     (1,849 )     (451 )

Other loss from discontinued operations

     (130 )     (387 )     (207 )

Income (loss) before taxes from discontinued operations

     (759 )     (10,575 )     1,276  

(Provision) benefit for tax

     259       3,692       (482 )

Net income (loss) from discontinued operations

   $ (500 )   $ (6,883 )   $ 794  

(1) American Foodservice Company incurred a pretax operational loss of $3.5 million and pretax loss on sale of $4.8 million in 2014.


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):


   

2015

    

2014

  

Current assets

   $ 23     $ 199  

Non-current assets

     3,014       3,014  

Current liabilities

     1,383       2,340  

Non-current liabilities

     896       1,791