Note 6 - Property and Equipment, Net

12 Months Ended

May 31, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment Disclosure [Text Block]

6. PROPERTY AND EQUIPMENT, net

Property and equipment, net consists of the following (in thousands):

	As of May 31
	2014			2013
Land	$	290			301
Buildings and improvements		2,966			3,034
Leasehold improvements		24,693			20,170
Capital work-in-progress		3,927			5,139
Furniture and fixtures		3,656			3,282
Machinery, equipment and instruments		88,057			75,388
		123,589			107,314
Less accumulated depreciation		(47,278	)		(30,933	)
Property and equipment, net	$	76,311			76,381

Depreciation expense was $18.3 million in fiscal 2014, $21.0 million in fiscal 2013, $15.5 million in Successor fiscal 2012 period, and $3.4 million in the Predecessor fiscal 2012 period. Depreciation expense is primarily included in cost of sales in the consolidated statements of operations.

The Company reviews the estimated useful lives of its fixed assets on an ongoing basis. During fiscal 2014, this review indicated that the actual lives of the Company's instrument equipment were longer than the estimated useful lives used for depreciation purposes in our financial statements. As a result, the Company changed its estimates of useful lives of its instrument equipment, effective June 1, 2013, to better reflect the estimated periods during which these assets will remain in service. As a result, the estimated useful lives of these assets increased from approximately 5 years to 10 years. The effect of this change in estimate was a reduction in depreciation expense of $6.3 million and a decrease in net loss of approximately $3.6 million for fiscal 2014, respectively. 

During fiscal 2013, the Company recognized a disposition loss of $1.2 million to reduce certain capital work-in-progress equipment associated with a high-speed filling project to its estimated salvage value. The project was determined to be no longer economically viable during fiscal 2013 and management therefore decided to dispose of the equipment.

For the year ended May 31, 2013, certain amounts within property and equipment have been reclassified to be consistent with the May 31, 2014 presentation. However, there has been no change in total property and equipment or accumulated depreciation.