Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Policies)

v3.5.0.2
Significant Accounting Policies (Policies)
 3 Months Ended
Sep. 30, 2016
Accounting Policies [Abstract]  
Marketable Securities, Available-for-sale Securities, Policy [Policy Text Block]
Available-For-Sale Investments:
 
The Company’s available-for-sale securities are carried at fair value using Level 1 inputs. The fair value of the Company’s available-for-sale investments at September 30, 2016 and June 30, 2016 were $52.4 million and $31.6 million, respectively. The increase was caused by the addition of $5.7 million in securities held by Advanced Cell Diagnostics (ACD), and the investment of $5.2 million of available cash in China into certificates of deposit. The remaining $9.9 million is due to the change in the fair value of the Company’s investment in ChemoCentryx, Inc. (CCXI). The amortized cost basis of the Company’s investment is CCXI at September 30, 2016 and June 30, 2016 was $29.5 million.
Inventory, Policy [Policy Text Block]
Inventories:
 
Inventories consist of (in thousands):
 
 
 
September 30,
 
 
June 30,
 
 
 
2016
 
 
2016
 
Raw materials
   $ 19,566     $ 22,963  
Finished goods
     50,953       34,139  
Inventories, net
   $ 70,519     $ 57,102  
 
The increase from June 30 is primarily due to $12.8 million of additional inventory at ACD, which is adjusted to its fair value as of the date of acquisition. At both September 30, 2016 and June 30, 2016, the Company had approximately $24 million of excess protein, antibody and chemically-based inventory on hand which was not valued.
Property, Plant and Equipment, Policy [Policy Text Block]
Property and Equipment:
 
Property and equipment consist of (in thousands):
 
 
 
September 30,
 
 
June 30,
 
 
 
2016
 
 
2016
 
Land
   $ 6,270     $ 6,270  
Buildings and improvements
     157,675       157,963  
Machinery and equipment
     93,710       82,018  
Property and equipment, cost
     251,385       246,251  
Accumulated depreciation and amortization
     (117,580
)
     (113,889
)
Property and equipment, net
   $ 133,805     $ 132,362  
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]
Intangible Assets:
 
Intangible assets consist of (in thousands):
 
 
 
September 30,
 
 
June 30,
 
 
 
2016
 
 
2016
 
Developed technology
   $ 233,699     $ 120,611  
Trade names
     79,949       63,706  
Customer relationships
     272,309       191,118  
Non-compete agreements
     3,451       3,284  
Intangible assets
     589,409       378,719  
Accumulated amortization
     (85,783
)
     (75,595
)
Net amortizable intangible asset     503,626       303,124  
In Process Research and Development
   $ -     $ 7,400  
Intangible assets, net
   $ 503,626     $ 310,524  
 
 
Changes to the carrying amount of net intangible assets for the quarter ended September 30, 2016 consist of (in thousands):
 
Beginning balance
   $ 310,524  
Acquisitions
     207,769  
Adjustment to Zephyrus purchase accounting     900  
Amortization expense
     (10,188
)
Currency translation
     (5,379
)
Ending balance
   $ 503,626  
 
The estimated future amortization expense for intangible assets as of September 30, 2016 is as follows (in thousands):
 
2017
   $ 36,105  
2018
     46,107  
2019
     46,493  
2020
     44,865  
2021
     44,501  
2022
     44,501  
Thereafter
     242,055  
    $ 503,626  
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]
Goodwill:
 
Changes to the carrying amount of goodwill for the quarter ended September 30, 2016 consist of (in thousands):
 
Beginning balance
   $ 430,882  
Acquisitions
     140,694  
Currency translation
     (5,787
)
Ending balance
   $ 565,789  
New Accounting Pronouncements, Policy [Policy Text Block]
Pronouncements Issued But Not Yet Adopted
 
In May 2014, the FASB issued guidance
addressing how revenue is recognized from contracts with customers and related disclosures. This standard supersedes existing revenue recognition requirements and most industry-specific guidance. This standard was initially expected to be effective for us beginning July 1, 2017, and provides for either full retrospective adoption or a modified retrospective adoption by which the cumulative effect of the change is recognized in retained earnings at the date of initial application. In July 2015, the FASB approved the deferral of the effective date of this standard by one year, and allows for adoption either at July 1, 2017 or July 1, 2018. We intend to elect the deferred adoption date of July 1, 2018. We are currently evaluating the requirements of this guidance, and have not yet determined the implementation method nor the impact on our consolidated financial statements.
 
In February 2016, the FASB issued guidance which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for us beginning July 1, 2019, with early adoption permitted. The provisions of this guidance are to be applied using a modified retrospective approach, which requires application of the guidance for all periods presented. We are currently evaluating the impact that this guidance will have on our consolidated financial statements.
 
In March 2016, the FASB issued guidance which simplifies several aspects of the accounting for share-based payment transactions, including certain income tax consequences, classifications on the statement of cash flows, and accounting for forfeitures. The guidance is effective for us beginning July 1, 2017, and early application is permitted. We are currently evaluating the adoption date and the effects this standard will have on our consolidated financial statements.