Annual report pursuant to Section 13 and 15(d)

Note 3 - Supplemental Balance Sheet and Cash Flow Information

Note 3 - Supplemental Balance Sheet and Cash Flow Information

12 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

Note

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, 2017

and

June 30, 2016

were

$66.1

million and

$31.6

million, respectively. The increase was caused by the addition of

$2.1

million in corporate bond securities held by Advanced Cell Diagnostics (ACD), and the investment of

$1.4

million of available cash in China into certificates of deposit. The remaining increase is due to a

$31

million change in the fair value of the Company's investment in ChemoCentryx, Inc. (CCXI). The amortized cost basis of the Company's investment in CCXI as of

June 30, 2017

and

June 30, 2016

was

29.5

million.

The unrealized gain (loss) on available-for-sale investments for fiscal

2017

includes a

$30.1

million unrealized gain related to our investment in CCXI. As of

June 30, 2017,

the stock price of CCXI was

$9.36

per share compared to our cost basis of

$4.73

per share.

Inventories:

Inventories consist of (in thousands):

	June 30,
	2017		2016

Raw materials	$	22,074	$	18,685
Finished goods		38,077		38,417
Inventories, net	$	60,151	$	57,102

Property and Equipment:

Property and equipment consist of (in thousands):

	June 30,
	2017			2016
Cost:
Land	$	6,270		$	6,270
Buildings and improvements		158,495			157,963
Machinery, equipment and other		98,596			82,018
Property and equipment		263,361			246,251
Accumulated depreciation and amortization		(128,237	)		(113,889	)
Property and equipment, net	$	135,124		$	132,362

Intangibles assets were comprised of the following (in thousands):

					June 30,
	Useful Life (years)				2017			2016

Developed technology		9	-	15	$	276,959		$	120,611
Trade names		5	-	20		87,092			63,706
Customer relationships		9	-	16		204,243			191,118
Non-compete agreement		3	-	5		3,264			3,284
Patents			10			633			-
Intangible assets						572,191			378,719
Accumulated amortization						(120,149	)		(75,595	)
Amortizable intangible assets, net					$	452,042		$	303,124
In process research and development						-			7,400
Intangible assets, net					$	452,042		$	310,524

Changes to the carrying amount of net intangible assets consist of (in thousands):

	June 30,
	2017			2016

Beginning balance	$	310,524		$	292,839
Acquisitions		185,869			53,500
Other additions		976			-
Amortization expense		(44,393	)		(29,395	)
Currency translation		(934	)		(6,420	)
Ending balance	$	452,042		$	310,524

Amortization expense related to technologies included in cost of sales was

$23.1

million

$11.1

million, and

$9.5

million in fiscal

2017,

2016,

and

2015,

respectively. Amortization expense related to trade names, customer relationships, non-compete agreements, and patents included in selling, general and administrative expense was

$21.3

million,

$18.3

million, and

$16.7

million, in fiscal

2017,

2016,

and

2015

respectively.

The estimated future amortization expense for intangible assets as of

June 30, 2017

is as follows (in thousands):

2018	$	44,825
2019		44,171
2020		43,538
2021		43,180
2022		41,491
Thereafter		234,837
Total	$	452,042

Changes in goodwill by reportable segment and in total consist of (in thousands):

	Biotechnology			Diagnostics		Protein Platforms			Total
June 30, 2015	$	115,198		$	60,601	$	214,839		$	390,638
Acquisitions (Note 2)		-			42,669		6,878			49,547
Prior year acquisitions (Note 2)		-			-		-			-
Currency translation		(6,475	)		-		(2,828	)		(9,303	)
June 30, 2016	$	108,723		$	103,270	$	218,889		$	430,882
Acquisitions (Note 2)		147,484								147,484
Prior year acquisitions (Note 2)		-			-		1,809			1,809
Currency translation		(1,277	)		-		128			(1,149	)
June 30, 2017	$	254,930		$	103,270	$	220,826		$	579,026

Other Assets:

Other assets consist of (in thousands):

	June 30,
	2017		2016

Investments	$	40,385	$	385
Other		3,617		1,537
	$	44,002	$	1,922

As of

June 30, 2017,

the Company had

$44.0

million of other assets compared to

$1.9

million as of

June 30, 2016.

The increase from

June 30

is due to a

$40.0

million investment in Astute Medical, Inc. during the

second

quarter of fiscal

2017.

This investment is accounted for under the cost-method as we own less than

20%

of the outstanding stock and we concluded that we do

not

have significant influence. Under the cost-method, the fair value is

not

estimated if there are

identified events or changes in circumstances that

may

have a significant adverse effect on the fair value of the investment.

such events or changes in circumstances were identified during fiscal

2017.

Supplemental

ash

low

nformation

Supplemental cash flow information was as follows (in thousands):

	Year Ended June 30,
	2017		2016		2015
Income taxes paid	$	42,900	$	44,900	$	42,600
Interest paid		7,452		1,661		1,544
Non-cash activities:
Acquisition-related liabilities (1)		32,856		42,259		43,048

(

) 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