Note 3 - Supplemental Balance Sheet and Cash Flow Information

12 Months Ended

Jun. 30, 2021

Notes to Financial Statements

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 equity investments as of June 30, 2021 and June 30, 2020 were $20.0 million and $87.8 million, respectively. The decrease was due to year-over-year decrease in the stock price of CCXI, which was $13.39 per share at June 30, 2021 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 $6.6 million as of June 30, 2021 and 2020, respectively. The Company's available-for-sale debt securities as of June 30, 2021 and June 30, 2020 were $12.5 million and $36.4 million, respectively. The decrease is due to the timing of debt maturities and cash balances at the balance sheet date. 

Inventories:

Inventories consist of (in thousands):

	June 30,
	2021		2020
Raw materials	$	55,096	$	51,530
Finished goods(1)		67,108		56,268
Inventories, net	$	122,204	$	107,798

(1) Finished goods inventory of $5,456 and $4,646 is included within other long-term assets in the June 30, 2021 and June 30, 2020 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,
	2021			2020
Cost:
Land	$	8,612		$	8,516
Buildings and improvements		190,661			184,430
Machinery, equipment and other		198,483			153,704
Property and equipment		397,756			346,650
Accumulated depreciation and amortization		(189,849	)		(169,821	)
Property and equipment, net	$	207,907		$	176,829

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

					June 30,
	Useful Life (years)				2021			2020
Developed technology		9	-	15	$	552,160		$	434,653
Trade names		2	-	20		147,640			146,713
Customer relationships		7	-	16		232,493			211,750
Patents			10			2,926			2,475
Other intangibles(1)		5	-	15		6,316			-
Definite-lived intangible assets						941,535			795,591
Accumulated amortization						(348,267	)		(279,046	)
Definite-lived intangibles assets, net						593,268			516,545
In process research and development						22,700			-
Total intangible assets, net					$	615,968		$	516,545

⁽¹⁾ Increase in other intangibles assets is primarily due to $5.0 million recognized in intangible assets in the first quarter of fiscal 2021 for certain third party patented technology acquired.

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

	June 30,
	2021			2020
Beginning balance	$	516,545		$	579,429
Acquisitions (Note 4)		153,311			-
Other additions		5,912			311
Amortization expense		(64,940	)		(61,095	)
Currency translation		5,140			(2,100	)
Ending balance	$	615,968		$	516,545

Amortization expense related to developed technologies included in cost of sales was $36.5 million, $34.5 million, and $33.3 million in fiscal 2021, 2020, and 2019, respectively. Amortization expense related to trade names, customer relationships, non-compete agreements, and patents included in selling, general and administrative expense was $28.4 million, $26.6 million, and $25.4 million, in fiscal 2021, 2020, and 2019 respectively.

The estimated future amortization expense for intangible assets as of June 30, 2021, excluding any possible future amortization associated with acquired IPR&D which has not met technological feasibility, is as follows (in thousands):

2022	$	74,482
2023		72,649
2024		69,780
2025		66,523
2026		62,739
Thereafter		247,095
Total	$	593,268

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

	Protein Sciences			Diagnostics & Genomics			Total
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
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

Supplemental Cash Flow Information:

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

	Year Ended June 30,
	2021		2020			2019
Income taxes paid	$	20,952	$	41,992		$	36,814
Interest paid		13,576		18,615			21,497
Non-cash activities:
Acquisition-related liabilities(1)		23,600		(2,105	)		12,600
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.