Supplemental Balance Sheet Disclosures [Text Block] |
Note 3. Supplemental Balance Sheet and Cash Flow Information:
Inventories:
Inventories consist of (in thousands):
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|
|
|
|
|
|
June 30, |
|
2022 |
|
2021 |
|
|
|
|
|
|
Raw materials |
$ |
79,291 |
|
$ |
55,096 |
Finished goods(1) |
|
66,943 |
|
|
67,108 |
Inventories, net |
$ |
146,234 |
|
$ |
122,204 |
(1) |
Finished goods inventory of $5,111 and $5,456 is included within other long-term assets in the June 30, 2022 and June 30, 2021 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):
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|
|
|
|
|
|
June 30, |
|
2022 |
|
2021 |
Cost: |
|
|
|
|
|
Land |
$ |
8,572 |
|
$ |
8,612 |
Buildings and improvements |
|
229,551 |
|
|
190,661 |
Machinery and equipment |
|
174,813 |
|
|
149,410 |
Construction in progress |
|
21,729 |
|
|
49,073 |
Property and equipment, cost |
|
434,665 |
|
|
397,756 |
Accumulated depreciation and amortization |
|
(211,423) |
|
|
(189,849) |
Property and equipment, net |
$ |
223,242 |
|
$ |
207,907 |
Intangibles assets were comprised of the following (in thousands):
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|
|
|
|
|
|
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Useful Life |
|
June 30, |
|
|
(years) |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Developed technology |
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9 - 15 |
|
$ |
542,038 |
|
$ |
552,160 |
Trade names |
|
2 - 20 |
|
|
146,457 |
|
|
147,640 |
Customer relationships |
|
7 - 16 |
|
|
225,882 |
|
|
232,493 |
Patents |
|
10 |
|
|
3,313 |
|
|
2,926 |
Other intangibles |
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5 - 15 |
|
|
6,306 |
|
|
6,316 |
Definite-lived intangible assets |
|
|
|
|
923,996 |
|
|
941,535 |
Accumulated amortization |
|
|
|
|
(415,174) |
|
|
(348,267) |
Definite-lived intangibles assets, net |
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|
|
|
508,822 |
|
|
593,268 |
In process research and development |
|
|
|
|
22,700 |
|
|
22,700 |
Total intangible assets, net |
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|
|
$ |
531,522 |
|
$ |
615,968 |
Changes to the carrying amount of net intangible assets consist of (in thousands):
|
|
|
|
|
|
|
|
|
June 30, |
|
|
2022 |
|
2021 |
|
|
|
|
|
|
|
Beginning balance |
|
$ |
615,968 |
|
$ |
516,545 |
Acquisitions |
|
|
— |
|
|
153,311 |
Other additions |
|
|
293 |
|
|
5,912 |
Amortization expense |
|
|
(74,147) |
|
|
(64,940) |
Currency translation |
|
|
(2,029) |
|
|
5,140 |
Eminence impairment (1) |
|
|
(8,563) |
|
|
— |
Ending balance |
|
$ |
531,522 |
|
$ |
615,968 |
(1) As disclosed in Note 1, the Company recorded an impairment charge of $8.6 million related to Eminence in Q2 of fiscal 2022.
Amortization expense related to developed technologies included in cost of sales was $40.6 million, $36.5 million, and $34.5 million in fiscal 2022, 2021, and 2020, respectively. Amortization expense related to trade names, customer relationships, non-compete agreements, and patents included in selling, general and administrative expense was $33.5 million, $28.4 million, and $26.6 million, in fiscal 2022, 2021, and 2020 respectively.
The estimated future amortization expense for intangible assets as of June 30, 2022, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows (in thousands):
|
|
|
|
2023 |
|
$ |
71,366 |
2024 |
|
|
68,702 |
2025 |
|
|
65,266 |
2026 |
|
|
61,689 |
2027 |
|
|
51,771 |
Thereafter |
|
|
190,028 |
Total |
|
$ |
508,822 |
Changes in goodwill by segment and in total consist of (in thousands):
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|
|
|
|
|
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|
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Diagnostics and |
|
|
|
|
Protein Sciences |
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Genomics |
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Total |
June 30, 2020 |
|
$ |
373,081 |
|
$ |
355,229 |
|
$ |
728,310 |
Acquisitions (Note 4) |
|
|
7,848 |
|
|
94,970 |
|
|
102,818 |
Currency translation |
|
|
11,788 |
|
|
151 |
|
|
11,939 |
June 30, 2021 |
|
$ |
392,717 |
|
$ |
450,350 |
|
$ |
843,067 |
Acquisitions(1) |
|
|
— |
|
|
(4,407) |
|
|
(4,407) |
Eminence impairment |
|
|
(8,275) |
|
|
— |
|
|
(8,275) |
Currency translation |
|
|
(7,949) |
|
|
(335) |
|
|
(8,284) |
June 30, 2022 |
|
$ |
376,493 |
|
$ |
445,608 |
|
$ |
822,101 |
(1)As discussed in Note 4, there was an adjustment to the preliminary allocation of the Asuragen acquisition opening balance sheet during the measurement period.
Supplemental Cash Flow Information:
Supplemental cash flow information was as follows (in thousands):
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|
|
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|
|
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Year Ended June 30, |
|
|
2022 |
|
2021 |
|
2020 |
Income taxes paid |
|
$ |
30,341 |
|
$ |
20,952 |
|
$ |
41,992 |
Interest paid |
|
|
11,027 |
|
|
13,576 |
|
|
18,615 |
Non-cash activities: |
|
|
|
|
|
|
|
|
|
Acquisition-related liabilities(1) |
|
|
20,400 |
|
|
23,600 |
|
|
(2,105) |
Other intangibles(2) |
|
|
— |
|
|
4,000 |
|
|
— |
(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. |
(2) |
$4.0 million of the third party patented technology acquired in fiscal 2021 was a non-cash activity within the consolidated statement of cash flows as a cash payment was not made within the fiscal year ended June 30, 2021.
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