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Note 3 - Discontinued Operations
 3 Months Ended
Sep. 30, 2015
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.


Discontinued operations for the three months ended September 30, 2015 and 2014 are as follows (in thousands):


   

Three Months Ended

  
   

September 30,

  
   

2015

    

2014

  

Net sales

   $ -     $ -  

Pre-tax earnings

     (248 )     (521 )

(Provision) benefit for taxes

     88       146  

Net earnings (loss) from discontinued operations

   $ (160 )   $ (375 )

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, 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 with a third party for this space. Our net obligation with respect to the lease is $1.1 million, of which $0.8 million was recorded as a liability at September 30, 2015. We do not expect to record additional charges related to these obligations.


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


   

September 30, 2015

    

June 30, 2015

  

Current assets

   $ 39     $ 23  

Other non-current assets

     2,816       3,014  

Accrued expenses

     1,386       1,383  

Accrued pension and other non-current liabilities

     344       896