Quarterly report pursuant to Section 13 or 15(d)

Note 2 - Selected Balance Sheet Data

v3.8.0.1
Note 2 - Selected Balance Sheet Data
3 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Supplemental Balance Sheet Disclosures [Text Block]
N
ote
2.
Selected Balance Sheet Data
:
 
Available
-For-Sale Investments:
 
The fair value of the Company's available-for-
sale investments at
September 30
,
2017
and
June 30, 2017
were
$50
.3
million and
$66
.1
million, respectively. The decrease was caused by the maturities of
$2
.1
million in corporate bond securities held by Advanced Cell Diagnostics (ACD) and
$1
.4
million in certificate of deposits held in China. The remaining difference is due to a decrease in the fair value of the Company's investment in ChemoCentryx, Inc. (CCXI). The cost basis of the Company's investment in CCXI at
September 30, 2017
and
June 30, 2017
was
$29.5
million.
 
Inventories:
 
Inventories consist of (in thousands):
 
   
September 30
,
   
June 30,
 
   
2017
   
2017
 
Raw materials
  $
24,535
    $
22,074
 
Finished goods
   
41,997
     
38,077
 
Inventories, net
  $
66,532
    $
60,151
 
 
Property and Equipment:
 
Property and equipment consist of (in thousands):
 
   
September 30,
   
June 30,
 
   
2017
   
2017
 
Land
  $
6,270
    $
6,270
 
Buildings and improvements
   
159,025
     
158,495
 
Machinery and equipment
   
104,783
     
98,596
 
Property and equipment, cost
   
270,078
     
263,361
 
Accumulated depreciation and amortization
   
(133,232
)
   
(128,237
)
Property and
equipment, net
  $
136,846
    $
135,124
 
 
Intangible Assets:
 
Intangible assets consist of (in thousands):
   
September 30,
   
June 30,
 
   
2017
   
2017
 
Developed technology
  $
281,816
    $
276,959
 
Trade names
   
89,070
     
87,092
 
Customer relationships
   
208,785
     
204,243
 
Non-compete agreements
   
3,273
     
3,264
 
Patents
   
893
     
633
 
Intangible assets
   
583,837
     
572,191
 
Accumulated amortization
   
(132,813
)
   
(120,149
)
Intangible assets, net
  $
451,024
    $
452,042
 
 
Changes to the carrying amount of net intangible assets for the quarter ended
September
 
30,
2017
consist of (in thousands):
 
Beginning balance
  $
452,042
 
Acquisitions
   
7,100
 
Other additions
   
276
 
Amortization
expense
   
(11,379
)
Currency translation
   
2,985
 
Ending balance
  $
451,024
 
 
The estimated future amortization expense for intangible assets as of
September
 
30,
2017
is as follows (in thousands):
 
2018
  $
35,025
 
2019
   
45,708
 
2020
   
44,453
 
2021
   
44,085
 
2022
   
42,344
 
Thereafter
   
239,409
 
Total
  $
451,024
 
 
Goodwill:
 
Changes to the carrying amount of goodwill for the quarter ended
September
 
30,
2017
consist of (in thousands):
 
   
Biotechnology
   
Protein Platforms
   
Diagnostics
   
Total
 
Beginning balance
  $
254,930
    $
220,826
    $
103,270
    $
579,026
 
Acquisitions (Note 3)
   
4,595
     
-
     
-
     
4,595
 
Currency translation
   
1,302
     
2,857
     
-
     
4,159
 
Ending balance
  $
260,827
    $
223,683
    $
103,270
    $
587,780
 
 
We evaluate the carrying value of goodwill in the
fourth
quarter of each year and between annual evaluations if events occur or circumstances change that would indicate a possib
le impairment. The Company performed a quantitative assessment for all
three
of its reporting units during the
fourth
quarter of fiscal year
2017.
The quantitative assessment indicated that all of the reporting units had substantial headroom as of
June 30, 2017.
 
No
triggering events
were identified during the quarter ended
September 30, 2017.
There has been
no
impairment of goodwill since the adoption of Financial Accounting Standards Board (“FASB”) ASC
350
guidance for goodwill and other intangibles on
July 1, 2002.
 
Other Assets:
 
Other Assets consist of (in thous
ands):
 
   
September 30,
   
June 30,
 
   
2017
   
2017
 
Investments
  $
40,385
    $
40,385
 
Other
   
4,187
     
3,617
 
Other assets
  $
44,572
    $
44,002
 
 
As of
September 30
,
2017,
the Company had
$44
.6
million of other assets compared to
$44
.0
million as of
June 30, 2017.
Investments include a
$40
.0
million investment in Astute Medical, Inc
. made during the
second
quarter of fiscal year
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
no
identified events or changes in circumstances that
may
have a significant adverse effect on the fair value of the investment.
No
such events or changes in circumstances were identified in the period ended
September 30, 2017
.