Acquisition (Tables)

9 Months Ended

Mar. 31, 2014

Reconciliation of Consideration Transferred to Total Cash Paid to Acquire Business

The following table reconciles consideration transferred to the total cash paid to acquire Crescendo:


(In thousands)
Total consideration transferred	$	258,950
Share-based compensation to Crescendo employees		6,929
Change of control payments to Crescendo employees		5,695
Offset: Non-cash fair value purchase option		(8,000	)

Total cash paid	$	263,574

Preliminary Allocation of Consideration Transferred for Crescendo

The Company’s preliminary allocation of consideration transferred for Crescendo is as follows (in thousands):


	Estimated
(In thousands)	Fair Value
Other assets acquired	$	15,826
Intangible assets		196,600
Goodwill		109,896

Total assets acquired		322,322

Deferred tax liability		41,778
Other liabilities assumed		21,594

Total net assets acquired	$	258,950

Share-Based Compensation Expense Recognized for Accelerated Vesting of Employee Options

The share-based compensation expense recognized for the accelerated vesting of employee options immediately prior to the acquisition was reported in the Company’s Condensed Consolidated Statements of Income as follows:


(In thousands)
Cost of molecular diagnostic testing	$	185
Research and development expense		2,075
Selling, general, and administrative expense		4,669

Total share-based compensation	$	6,929

Change of Control Expense Recognized for Bonuses Paid to Crescendo Employees and Directors

The change of control expense recognized for bonuses paid to Crescendo employees and directors for completion of the acquisition with Myriad was reported in the Company’s Condensed Consolidated Statements of Income as follow:


(In thousands)
Cost of molecular diagnostic testing	$	238
Research and development expense		1,710
Selling, general, and administrative expense		3,747

Total change of control bonuses	$	5,695

Pro-forma Results of Acquisitions

The unaudited pro-forma results presented below include the effects of the Crescendo acquisition as if it had been consummated as of July 1, 2012, with adjustments to give effect to pro forma events that are directly attributable to the acquisition which includes adjustments related to the amortization of acquired intangible assets, interest income and expense, stock-based compensation expense, and depreciation. The unaudited pro forma results do not reflect any operating efficiency or potential cost savings which may result from the consolidation of Crescendo. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operation of the combined company would have been if the acquisition had occurred at the beginning of the period presented nor are they indicative of future results of operations and are not necessarily indicative of either future results of operations or results that might have been achieved had the acquisition been consummated as of July 1, 2012.


	Three months ended				Nine months ended
	March 31,				March 31,
(In thousands)	2014		2013		2014		2013
Revenue	$	188,693	$	158,356	$	618,743	$	443,820
Income from operations		47,396		46,384		199,380		126,291
Net income	$	29,173	$	28,622	$	122,316	$	75,092
Net income per share, basic	$	0.40	$	0.36	$	1.61	$	0.92
Net income per share, diluted	$	0.38	$	0.35	$	1.56	$	0.90