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
.