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, 2020

Supplemental Balance Sheet Disclosures [Text Block]

Note 3. 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, 2020 and June 30, 2019 were $87.8 million and $38.2 million, respectively. The increase was due to year-over-year increase in the stock price of CCXI, which was $9.30 per share at June 30, 2019 compared to $57.54 per share at June 30, 2020. The amortized cost basis of the Company's investment in CCXI was $6.6 million and $18.8 million as of June 30, 2020 and 2019 respectively.

Inventories:

Inventories consist of (in thousands):

	June 30,
	2020		2019

Raw materials	$	51,530	$	40,913
Finished goods⁽¹⁾		56,268		53,376
Inventories, net	$	107,798	$	94,289

(1) Finished goods inventory of $4,646 and $3,239 is included within other long-term assets in the June 30, 2020 and June 30, 2019 Balance Sheets, respectively, as it forecasted to be sold after the 12 months subsequent to the consolidated balance sheet date.

Property and Equipment:

Property and equipment consist of (in thousands):

	June 30,
	2020			2019
Cost:
Land	$	8,516		$	7,065
Buildings and improvements		184,430			175,019
Machinery, equipment and other		153,704			124,233
Property and equipment		346,650			306,317
Accumulated depreciation and amortization		(169,821	)		(152,278	)
Property and equipment, net	$	176,829		$	154,039

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

				June 30,
	Useful Life (years)			2020			2019

Developed technology	9	-	15	$	434,653		$	435,679
Trade names	2	-	20		146,713			147,296
Customer relationships	7	-	16		211,750			214,320
Patents		10			2,475			2,133
Intangible assets					795,591			799,428
Accumulated amortization					(279,046	)		(219,999	)
Intangibles assets, net				$	516,545		$	579,429

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

	June 30,
	2020			2019

Beginning balance	$	579,429		$	446,332
Acquisitions (Note 4)		-			191,956
Other additions		311			633
Amortization expense		(61,095	)		(58,715	)
Currency translation		(2,100	)		(777	)
Ending balance	$	516,545		$	579,429

Amortization expense related to technologies included in cost of sales was $34.5 million, $33.3 million, and $25.3 million in fiscal 2020, 2019, and 2018, respectively. Amortization expense related to trade names, customer relationships, non-compete agreements, and patents included in selling, general and administrative expense was $26.6 million, $25.4 million, and $21.6 million, in fiscal 2020, 2019, and 2018 respectively.

The estimated future amortization expense for intangible assets as of June 30, 2020 is as follows (in thousands):

2021	$	59,766
2020		57,564
2023		55,696
2024		53,198
2025		50,024
Thereafter		240,297
Total	$	516,545

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

	Protein Sciences			Diagnostics & Genomics			Total
June 30, 2018	$	347,918		$	249,972		$	597,890
Acquisitions (Note 4)		30,939			105,362			136,301
Currency translation		(1,450	)		(74	)		(1,524	)
June 30, 2019	$	377,407		$	355,260		$	732,667
Acquisitions (Note 4)		(326	)		-			(326	)
Currency Translation		(4,000	)		(31	)		(4,031	)
June 30, 2020	$	373,081		$	355,229		$	728,310

Other Assets:

Other assets consist of (in thousands):

	June 30,
	2020		2019

Long-term deposits	$	6,234	$	487
Other		7,288		5,181
Other long-term assets	$	13,522	$	5,668

As of June 30, 2020, the Company had $13.5 million of other assets compared to $5.7 million as of June 30, 2019. The increase in other long-term assets in fiscal 2020 is primarily attributable to deposits made on our GMP manufacturing facility.

Supplemental Cash Flow Information:

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

	Year Ended June 30,
	2020			2019		2018
Income taxes paid	$	41,992		$	36,814	$	35,076
Interest paid		18,615			21,497		9,844
Non-cash activities:
Acquisition-related liabilities ⁽¹⁾		(2,105	)		12,600		1,396

⁽¹⁾ Consists of holdback payments due at future dates and liabilities for contingent consideration. Amounts disclosed above represent the total non-cash change in the liability from the prior fiscal year. Further information regarding liabilities for contingent consideration can be found in Notes 4 and 5.