| Supplemental Balance Sheet and Cash Flow Information |
Note 3. Supplemental Balance Sheet and Cash Flow Information:
Inventories:
Inventories consist of (in thousands):
|
|
|
|
|
|
|
|
|
June 30, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Raw materials |
|
$ |
84,551 |
|
$ |
79,291 |
Finished goods(1) |
|
|
92,474 |
|
|
66,943 |
Inventories, net |
|
$ |
177,025 |
|
$ |
146,234 |
| (1) |
Finished goods inventory of $5,387 and $5,111 is included within other assets in the June 30, 2023 and June 30, 2022 Balance Sheets, respectively, as it is 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, |
|
2023 |
|
2022 |
Land |
$ |
9,100 |
|
$ |
8,572 |
Buildings and improvements |
|
245,302 |
|
|
229,551 |
Machinery and equipment |
|
190,019 |
|
|
174,813 |
Construction in progress |
|
15,491 |
|
|
21,729 |
Property and equipment, cost |
|
459,912 |
|
|
434,665 |
Accumulated depreciation and amortization |
|
(233,712) |
|
|
(211,423) |
Property and equipment, net |
$ |
226,200 |
|
$ |
223,242 |
Intangibles assets were comprised of the following (in thousands):
|
|
|
|
|
|
|
|
|
|
|
Useful Life |
|
June 30, |
|
|
(years) |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
Developed technology |
|
9 - 15 |
|
$ |
616,311 |
|
$ |
542,038 |
Trade names |
|
2 - 20 |
|
|
146,945 |
|
|
146,457 |
Customer relationships |
|
7 - 16 |
|
|
213,878 |
|
|
225,882 |
Patents |
|
10 |
|
|
3,815 |
|
|
3,313 |
Other intangibles |
|
5 - 15 |
|
|
11,566 |
|
|
6,306 |
Definite-lived intangible assets |
|
|
|
|
992,515 |
|
|
923,996 |
Accumulated amortization |
|
|
|
|
(480,570) |
|
|
(415,174) |
Definite-lived intangibles assets, net |
|
|
|
|
511,945 |
|
|
508,822 |
In process research and development |
|
|
|
|
22,700 |
|
|
22,700 |
Total intangible assets, net |
|
|
|
$ |
534,645 |
|
$ |
531,522 |
Changes to the carrying amount of net intangible assets consist of (in thousands):
|
|
|
|
|
|
|
|
|
June 30, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Beginning balance |
|
$ |
531,522 |
|
$ |
615,968 |
Acquisitions |
|
|
75,600 |
|
|
— |
Other additions(1) |
|
|
5,710 |
|
|
293 |
Amortization expense |
|
|
(77,491) |
|
|
(74,147) |
Currency translation |
|
|
(696) |
|
|
(2,029) |
Eminence impairment |
|
|
— |
|
|
(8,563) |
Ending balance |
|
$ |
534,645 |
|
$ |
531,522 |
(1)Includes the purchase of a $4.6 million intangible asset from Wilson Wolf, an equity method investee of the Company during the year-ended June 30, 2023. This asset will be amortized over a life of 10 years.
Amortization expense related to developed technologies included in cost of sales was $44.3 million, $40.6 million, and $36.5 million in fiscal 2023, 2022, and 2021, respectively. Amortization expense related to trade names, customer relationships, non-compete agreements, and patents included in selling, general and administrative expense was $33.2 million, $33.5 million, and $28.4 million, in fiscal 2023, 2022, and 2021 respectively.
The estimated future amortization expense for intangible assets as of June 30, 2023, excluding any possible future amortization associated with acquired in-process research and development (IPR&D) which has not met technological feasibility, is as follows (in thousands):
|
|
|
|
2024 |
|
$ |
75,331 |
2025 |
|
|
72,056 |
2026 |
|
|
68,089 |
2027 |
|
|
57,920 |
2028 |
|
|
54,470 |
Thereafter |
|
|
184,079 |
Total |
|
$ |
511,945 |
Goodwill:
Changes in goodwill by segment and in total consist of (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diagnostics and |
|
|
|
|
Protein Sciences |
|
Genomics |
|
Total |
June 30, 2021 |
|
$ |
392,717 |
|
$ |
450,350 |
|
$ |
843,067 |
Acquisitions |
|
|
— |
|
|
(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 |
Acquisitions |
|
|
51,257 |
|
|
— |
|
|
51,257 |
Currency translation |
|
|
(723) |
|
|
102 |
|
|
(621) |
June 30, 2023 |
|
$ |
427,027 |
|
$ |
445,710 |
|
$ |
872,737 |
Other Assets:
Other assets consist of (in thousands):
|
|
|
|
|
|
|
|
|
June 30, |
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
Investment in Wilson Wolf |
|
$ |
255,857 |
|
$ |
25,000 |
Derivative instruments |
|
|
16,857 |
|
|
11,026 |
Long-term inventory |
|
|
5,387 |
|
|
5,111 |
Other |
|
|
7,201 |
|
|
5,691 |
Other assets |
|
$ |
285,302 |
|
$ |
46,828 |
Supplemental Cash Flow Information:
Supplemental cash flow information was as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June 30, |
|
|
2023 |
|
2022 |
|
2021 |
Income taxes paid |
|
$ |
88,428 |
|
$ |
30,341 |
|
$ |
20,952 |
Interest paid |
|
|
8,368 |
|
|
11,027 |
|
|
13,576 |
Non-cash activities: |
|
|
|
|
|
|
|
|
|
Acquisition-related liabilities (1) |
|
|
12,100 |
|
|
20,400 |
|
|
23,600 |
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.
|
|