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Note 3 - Discontinued Operations
 6 Months Ended
Dec. 31, 2014
Discontinued Operations and Disposal Groups [Abstract]  
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.


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.


Discontinued operations for the three and six months ended December 31, 2014 and 2013 are as follows (in thousands):
 


   

Three Months Ended

   

Six Months Ended

 
   

December 31,

   

December 31,

 
   

2014

   

2013

   

2014

   

2013

 

Net sales

  $ -     $ 5,712     $ -     $ 11,175  

Pre-tax earnings

    (126 )     (50 )     (647 )     (4,686 )

(Provision) benefit for taxes

    47       75       193       1,445  

Net earnings (loss) from discontinued operations

  $ (79 )   $ 25     $ (454 )   $ (3,241 )

In connection with the divestiture of ADP in March 2012, the Company remained an obligor under a lease that was assumed in full by the buyer on a facility in Portland, OR. 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 and Medina, NY and contains a cross-default provision against the lease. 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 beginning September 2014. We are actively marketing this facility for subleases and expect to sublet this building. Our aggregate obligation with respect to both the Portland and Philadelphia leases is $2.2 million, of which $1.0 million was recorded as a liability at December 31 2014. We do not expect to record additional changes related to these obligations.


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


   

December 31,

2014

   

June 30,

2014

 

Current assets

  $ 62     $ 199  

Other non-current assets

    3,014       3,014  

Accrued expenses

    1,424       2,340  

Accrued pension and other non-current liabilities

    1,374       1,791