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Note 21 - Disposal of a Business
 12 Months Ended
Jun. 30, 2017
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.
 
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.
 
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
 
2017
 
 
2016
 
 
2015
 
Income (loss) before taxes:
                          
American Foodservice Company
(1)
2014
   $ 
(8
 )   $ 
3
     $ 
(492
 )
Air Distribution Products Group
2012
    
(38
 )    
(225
 )    
(137
 )
Other loss from discontinued operations
    
(13
 )    
(7
 )    
(130
 )
Income (loss) before taxes from discontinued operations
    
(59
 )    
(229
 )    
(759
 )
(Provision) benefit for tax
    
27
     
55
     
259
 
Net income (loss) from discontinued operations
   $
(32
 )   $
(174
 )   $
(500
 )
 
(
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):
 
 
 
2017
 
 
2016
 
Current assets
   $
-
    $
-
 
Non-current assets
    
14
     
14
 
Current liabilities
    
786
      
1,204
 
Non-current liabilities
    
-
     
55
 
Sale of U.S. Roll Plate and Machinery [Member]  
Notes to Financial Statements  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
21.
DISPOSAL OF A BUSINESS
 
During the
first
quarter of fiscal year
2017,
the Company sold its U.S. Roll Plate and Machinery business, as it was
not
strategic and did
not
meet our growth and return expectations. This divestiture also allows the Company’s management to focus on higher growth and better return businesses within the Engraving segment.
 
During the
fourth
quarter of fiscal year
2016,
the Company recorded a
$7.3
million non-cash loss to adjust the net assets of the business to their net realizable value. The expense is recorded as a component of Other Operating Income, net. The sale of the business does
not
constitute a significant strategic shift that will have a major effect on the entity’s operations and financial results.