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Note 15 - Discontinued Operations
 12 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
15.
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 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, 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. We have entered into a renewable sublease agreement with a third party for this space. Our total obligation with respect to the lease is $0.7 million, of which $0.3 million was recorded as a liability at June 30, 2016. 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.  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
 
2016
 
 
2015
 
 
2014
 
Sales:
                          
American Foodservice Company
2014
   $ -     $ -     $ 20,556  
Air Distribution Products Group
2012
     -       -       -  
        -       -       20,556  
Income (loss) before taxes:
                          
American Foodservice Company
(1)
2014
     3       (492 )     (8,339 )
Air Distribution Products Group
2012
     (225 )     (137 )     (1,849 )
Other loss from discontinued operations
       (7 )     (130 )     (387 )
Income (loss) before taxes from discontinued operations
       (229 )     (759 )     (10,575 )
(Provision) benefit for tax
       55       259       3,692  
Net income (loss) from discontinued operations
     $ (174 )   $ (500 )   $ (6,883 )
 
(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):
 
 
 
2016
 
 
2015
 
Current assets
   $ -     $ 23  
Non-current assets
     14       3,014  
Current liabilities
     1,204       1,383  
Non-current liabilities
     55       896