Note 6. Goodwill

12 Months Ended

May 31, 2011

Schedule of Goodwill [Table Text Block]

6. GOODWILL

Changes in the carrying amount of goodwill for the years ended May 31, 2011 and 2010 were as follows:

	May 31,
	2011			2010
	(in thousands)
Balance at beginning of year	$	94,336		$	97,255
Contingent consideration adjustment on the acquisition of BioArray		(2,935	)		-
Foreign currency translation adjustment and other		2,366			(2,919	)
Balance at end of year	$	93,767		$	94,336

In fiscal 2011, $7.2 million of escrowed funds related to the acquisition of BioArray were released and returned to the Company.  In accordance with the contingent consideration guidance in ASC 805 “Business Combinations,” $2.9 million of the $7.2 million returned to the Company was recorded to Goodwill within the U.S. reporting segment as it relates to items that were predefined as contingent items in the Merger Agreement and are considered measurement period adjustments.  The remaining $4.3 million was recorded to Other Income as it is not considered a measurement period adjustment.

Goodwill is tested for impairment at the end of the third quarter of each fiscal year or earlier if a triggering event occurs. Testing for impairment of goodwill confirmed that the carrying value of goodwill was not impaired, and consequently no impairment charges were recorded in the years ended May 31, 2011, 2010 and 2009.