Balance Sheets-Additional Information

12 Months Ended

Jun. 30, 2019

Balance Sheets Additional Information [Abstract]

4. Balance Sheets—Additional Information

As of June 30	2019			2018
Accounts receivable, net
Trade accounts receivable		$	163,464		$	141,999
Allowance for doubtful accounts			(4,442)			(6,257)
		$	159,022		$	135,742

As of June 30	2019			2018			2017
Allowance for doubtful accounts
Balance at beginning of period		$	6,257		$	6,428		$	4,953
Provision for bad debts			(201)			166			1,412
Effect of changes in exchange rates			38			(215)			159
Bad debt write-offs			(1,500)			—			—
Bad debt recovery			(152)			(122)			(96)
Balance at end of period		$	4,442		$	6,257		$	6,428

As of June 30	2019			2018
Inventories
Raw materials		$	64,441		$	62,373
Work-in-process			10,699			14,731
Finished goods			123,182			101,066
		$	198,322		$	178,170

As of June 30	2019			2018
Property, plant and equipment, net
Land		$	10,152		$	10,140
Buildings and improvements			71,036			68,769
Machinery and equipment			252,097			227,092
			333,285			306,001
Accumulated depreciation			(193,050)			(175,893)
		$	140,235		$	130,108

Certain facilities in Israel are on leased land. The leases expire in 2023, 2035 and 2062.

Property, plant and equipment, net includes internal-use software costs, net of accumulated depreciation, of $3,475 and $2,700 at June 30, 2019 and 2018, respectively.

Machinery and equipment includes construction-in-progress of $15,630 and $7,783 at June 30, 2019 and 2018, respectively.

As of June 30	Weighted- Average Useful Life (Years)		2019			2018
Intangibles, net
Cost
Technology		13		$	71,016		$	69,475
Product registrations, marketing and distribution rights		9			17,858			17,902
Customer relationships		13			12,194			12,211
Trade names, trademarks and other		5			2,740			2,740
In-process research and development					1,800			1,800
					105,608			104,128
Accumulated amortization
Technology					(29,333)			(23,937)
Product registrations, marketing and distribution rights					(17,811)			(17,902)
Customer relationships					(8,282)			(7,614)
Trade names, trademarks and other					(2,704)			(2,697)
					(58,130)			(52,150)
				$	47,478		$	51,978

As of June 30	2019			2018
Goodwill roll-forward
Balance at beginning of period		$	27,348		$	23,982
Acquisition			—			5,642
Translation			—			(2,276)
Balance at end of period		$	27,348		$	27,348

In August 2019, we acquired the business and assets of Osprey Biotechnics, Inc. (“Osprey”). Osprey is a developer, manufacturer and marketer of microbial products and bioproducts for a variety of applications serving animal health and nutrition, environmental, industrial and agricultural customers. Osprey also produces key components of our recently launched Provia PrimeTM direct fed microbial product for poultry. We acquired all assets used in Osprey’s business, including intellectual property, working capital and property, plant and equipment, for an aggregate cash payment at closing of $55,000, subject to certain customary adjustments. The agreement also includes a future additional payment to be determined based on Osprey’s EBITDA for the year ending June 30, 2021. The additional payment will be no less than $4,840. We funded the acquisition through the Revolver.

We will account for the acquisition as a business combination in accordance with ASC No. 805, “Business Combinations,” and will include the business in the Animal Health segment. We are evaluating the allocation of the purchase price to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date.

In September 2017, we acquired a business for $15,000. The business develops, manufactures and markets animal health products. We accounted for the acquisition as a business combination in accordance with ASC 805, “Business Combinations.” Net assets acquired included working capital, property, plant and equipment, intangible assets and goodwill. Goodwill is not deductible for income tax purposes. The business is included in the Animal Health segment.

We have not provided pro forma information giving effect to the acquisitions because the results of each transaction are not material to the consolidated financial statements.

As of June 30	2019			2018
Other assets
Equity method investments		$	4,196		$	3,944
Insurance investments			5,431			5,235
Deferred financing fees			1,531			2,042
Deferred income taxes			16,770			15,424
Deposits			7,024			6,692
Indemnification asset			3,000			3,000
Fair value of derivative			—			5,078
Other			7,496			5,369
		$	45,448		$	46,784

We evaluate our investments in equity method investees for impairment if circumstances indicate that the fair value of the investment may be impaired. The assets underlying a $3,287 equity investment are currently idled; we have concluded the investment is not currently impaired, based on expected future operating cash flows and/or disposal value.

As of June 30	2019			2018
Accrued expenses and other current liabilities
Employee related		$	28,298		$	27,333
Commissions and rebates			8,397			7,341
Insurance-related			1,279			1,168
Professional fees			5,212			4,350
Income and other taxes			6,067			3,610
Acquisition-related consideration			—			12,845
Restructuring costs			3,590			—
Other			15,655			14,497
		$	68,498		$	71,144

During the three months ended June 30, 2019, we recorded pre-tax charges of $6,281 for business restructuring activities related to productivity and cost saving initiatives in the Animal Health segment. The charges included $3,500 related to termination of a contract manufacturing agreement and $2,781 for employee separation costs. The charges are included in selling, general and administrative expenses in our consolidated statements of operations. As of June 30, 2019, $691 had been paid, $3,590 was included in accrued expenses and other current liabilities and $2,000 was included in other liabilities. We expect to record an additional charge for employee separation costs of an estimated $1,000 and complete the additional separation actions by December 31, 2019.

In July 2018, we accelerated the closing date and completed the purchase of intellectual property and certain other assets comprising the MJ Biologics, Inc. (“MJB”) business relating to animal vaccines. The Company and MJB had originally agreed to the purchase business combination in January 2015, with a contemplated closing date in January 2021. The final amount due, net of previously paid amounts, was $12,775, including $9,000 paid in July 2018 and $3,775 paid in January 2019.

As of June 30	2019			2018
Other liabilities
U.S. pension plan		$	3,934		$	2,910
International retirement plans			5,133			4,644
Supplemental retirement benefits, deferred compensation and other			7,605			10,792
Long term and deferred income taxes			8,978			9,729
Restructuring costs			2,000			—
Other long term liabilities			15,144			15,627
		$	42,794		$	43,702

As of June 30	2019			2018
Accumulated other comprehensive income (loss)
Derivative instruments		$	(594)		$	4,986
Foreign currency translation adjustment			(71,225)			(67,098)
Unrecognized net pension gains (losses)			(20,050)			(18,213)
(Provision) benefit for income taxes on derivative instruments			148			(1,241)
(Provision) benefit for incomes taxes on long-term intercompany investments			8,166			8,166
(Provision) benefit for income taxes on pension gains (losses)			(2,626)			(3,083)
		$	(86,181)		$	(76,483)