XML 26 R10.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Note 3 - Supplemental Balance Sheet and Cash Flow Information | 12 Months Ended
--- | ---
Jun. 30, 2018
Notes to Financial Statements |
Supplemental Balance Sheet Disclosures [Text Block] | Note 3. Supplemental Balance Sheet and Cash Flow Information: Available-For-Sale Investments: The fair value of the Company's available-for-sale investments as of June 30, 2018 and June 30, 2017 were $59.8 million and $66.1 million, respectively. The decrease was caused by the sale of $26.9 million of the Company’s investment in ChemoCentryx, Inc. (CCXI) in the fourth quarter of fiscal 2018 and the maturity of $2.1 million in corporate bond securities held by Advanced Cell Diagnostics (ACD). This decrease was partially offset by year-over-year increases in the stock price of CCXI, from $9.36 per share at June 30, 2017 to $13.17 per share at June 30, 2018 resulting in a $15.7 million increase in the fair value of the Company's investment in CCXI. The amortized cost basis of the Company's investment in CCXI as of June 30, 2018 and 2017 was $18.8 million and $29.5 million, respectively. The unrealized gain (loss) on available-for-sale investments for fiscal 2018 includes a $35.4 million unrealized gain related to our investment in CCXI. As of June 30, 2018, the stock price of CCXI was $13.17 per share compared to our cost basis of $4.73 per share. Inventories: Inventories consist of (in thousands):
|  | June 30, |
|  | 201 8 |  |  | 201 7 |
Raw materials |  | $ | 30,956 |  |  | $ | 22,074 |
Finished goods |  |  | 54,692 |  |  |  | 38,077 |
Inventories, net |  | $ | 85,648 |  |  | $ | 60,151 |
Property and Equipment: Property and equipment consist of (in thousands):
|  | June 30, |
|  | 2018 |  |  | 2017 |
Cost: |  |  |  |  |  |  |  |
Land |  | $ | 7,065 |  |  | $ | 6,270 |
Buildings and improvements |  |  | 170,110 |  |  |  | 158,495 |
Machinery, equipment and other |  |  | 107,625 |  |  |  | 98,596 |
Property and equipment |  |  | 284,800 |  |  |  | 263,361 |
Accumulated depreciation and amortization |  |  | (139,452 | ) |  |  | (128,237 | )
Property and equipment, net |  | $ | 145,348 |  |  | $ | 135,124 |
Intangibles assets were comprised of the following (in thousands):
|  |  |  |  |  |  | June 30, |
|  | Useful Life (years) |  |  | 2018 |  |  | 201 7 |
Developed technology |  | 9 | - | 15 |  |  | $ | 305,303 |  |  | $ | 276,959 |
Trade names |  | 2 | - | 20 |  |  |  | 89,608 |  |  |  | 87,092 |
Customer relationships |  | 7 | - | 16 |  |  |  | 212,228 |  |  |  | 204,243 |
Non-compete agreements |  | 3 | - | 5 |  |  |  | - |  |  |  | 3,264 |
Patents |  |  | 10 |  |  |  |  | 1,401 |  |  |  | 633 |
Intangible assets |  |  |  |  |  |  |  | 608,540 |  |  |  | 572,191 |
Accumulated amortization |  |  |  |  |  |  |  | (162,208 | ) |  |  | (120,149 | )
Intangibles assets, net |  |  |  |  |  |  | $ | 446,332 |  |  | $ | 452,042 |
Changes to the carrying amount of net intangible assets consist of (in thousands):
|  | June 30, |
|  | 2018 |  |  | 2017 |
Beginning balance |  | $ | 452,042 |  |  | $ | 310,524 |
Acquisitions |  |  | 40,673 |  |  |  | 185,869 |
Other additions |  |  | 908 |  |  |  | 976 |
Amortization expense |  |  | (47,076 | ) |  |  | (44,393 | )
Currency translation |  |  | (215 | ) |  |  | (934 | )
Ending balance |  | $ | 446,332 |  |  | $ | 452,042 |
Amortization expense related to technologies included in cost of sales was $25.3 million $23.1 million, and $11.1 million in fiscal 2018, 2017, and 2016, respectively. Amortization expense related to trade names, customer relationships, non-compete agreements, and patents included in selling, general and administrative expense was $21.6 million, $21.3 million, and $18.3 million, in fiscal 2018, 2017, and 2016 respectively. The estimated future amortization expense for intangible assets as of June 30, 2018 is as follows (in thousands):
2019 |  | $ | 47,841 |
2020 |  |  | 47,137 |
2021 |  |  | 46,772 |
2022 |  |  | 45,060 |
2023 |  |  | 43,176 |
Thereafter |  |  | 216,346 |
Total |  | $ | 446,332 |
Changes in goodwill by reportable segment and in total consist of (in thousands):
|  | Biotechnology |  |  | Protein Platforms |  |  | Diagnostics |  |  | Total |
June 30, 2016 |  | $ | 108,723 |  |  | $ | 218,889 |  |  | $ | 103,270 |  |  | $ | 430,882 |
Acquisitions (Note 2) |  |  | 147,484 |  |  |  | - |  |  |  | - |  |  |  | 147,484 |
Prior year acquisitions |  |  | - |  |  |  | 1,809 |  |  |  | - |  |  |  | 1,809 |
Currency translation |  |  | (1,277 | ) |  |  | 128 |  |  |  | - |  |  |  | (1,149 | )
June 30, 2017 |  | $ | 254,930 |  |  | $ | 220,826 |  |  | $ | 103,270 |  |  | $ | 579,026 |
Acquisitions (Note 2) |  |  | 16,186 |  |  |  | - |  |  |  | 2,910 |  |  |  | 19,096 |
Currency translation |  |  | 759 |  |  |  | (815 | ) |  |  | (176 | ) |  |  | (232 | )
June 30, 2018 |  | $ | 271,875 |  |  | $ | 220,011 |  |  | $ | 106,004 |  |  | $ | 597,890 |
Other Assets: Other assets consist of (in thousands):
|  | June 30, |
|  | 2018 |  |  | 2017 |
Investments |  | $ | 2,606 |  |  | $ | 40,385 |
Other |  |  | 2,660 |  |  |  | 3,617 |
Other long-term assets |  | $ | 5,266 |  |  | $ | 44,002 |
As of June 30, 2018, the Company had $5.3 million of other assets compared to $44.0 million as of June 30, 2017. The decrease was due to the impairment and sale of its investment in Astute Medical, Inc. (Astute) during fiscal 2018. The Company held a 16.4% ownership interest in Astute and accounted for the investment under the cost method. During the third quarter of fiscal 2018, the Company learned that Astute intended to accept an offer to sell the company to a third party. As a result of this triggering event, the Company completed an impairment assessment and determined that a portion of its investment in Astute was other-than-temporarily impaired and adjusted the carrying value of its investment by $16.2 million to other income (expense) in the accompanying Consolidated Statements of Earnings and Comprehensive Income. During the fourth quarter of fiscal 2018, the Company decreased its investment in Astute by another $22.5 million after receiving cash payment upon the closing of the acquisition. As of June 30, 2018, the Company has a $1.3 million remaining investment in Astute for the additional cash payment it expects to receive upon liquidation of the escrow account. Supplemental C ash F low I nformation : Supplemental cash flow information was as follows (in thousands):
|  | Year Ended June 30, |
|  | 2018 |  |  | 2017 |  |  | 2016 |
Income taxes paid |  | $ | 35,076 |  |  | $ | 42,900 |  |  | $ | 44,900 |
Interest paid |  |  | 9,844 |  |  |  | 7,452 |  |  |  | 1,661 |
Non-cash activities: |  |  |  |  |  |  |  |  |  |  |  |
Acquisition-related liabilities (1) |  |  | 1,396 |  |  |  | 32,856 |  |  |  | 42,259 |
( 1 ) Consists of holdback payments due at future dates and liabilities for contingent consideration. Further information regarding liabilities for contingent consideration can be found in Note 4.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for supplemental balance sheet disclosures, including descriptions and amounts for assets, liabilities, and equity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -URI http://asc.fasb.org/topic&trid=2122208 + Details
Name: | us-gaap_SupplementalBalanceSheetDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration