Note 17 - Commitments and Contingencies

9 Months Ended

Feb. 28, 2014

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

17.  COMMITMENTS AND CONTINGENCIES

Legal Proceedings

From time to time, the Company is a party to certain legal proceedings in the ordinary course of business. However, the Company is not currently subject to any legal proceedings expected to have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows.  

Self-Insurance Costs

In the third quarter of fiscal 2014, the Company entered into a program to self-insure its costs related to U.S. medical employee benefits. Liabilities are recognized based on claims filed and an estimate of claims incurred but not reported. The liabilities for medical claims are accounted for on an undiscounted basis. The Company has purchased stop-loss coverage to limit its exposure on a per claim basis. The Company is insured for covered costs in excess of these per claim limits. The current portion of the self-insured liability was approximately is $0.6 million as of February 28, 2014 and was included in accrued expenses and other current liabilities on the Company’s consolidated balance sheet.

Other Commitments and Contractual Obligations

As of February 28, 2014, the Company’s other material cash commitments and contractual obligations have not changed significantly from those disclosed in the Company’s Annual Report on Form 10-K for the year ended May 31, 2013 except for the Company’s operating lease obligations which increased by approximately $12 million due to the renewal of certain building leases in the first quarter of 2014, an increase in purchase commitments by approximately $21 million, and a decrease in the estimated fair value of the contingent consideration liability of $4.5 million related to the earn-out provision of the LIFECODES acquisition. Refer to Note 2 for additional information on the change in acquisition costs for the estimated earn-out provision. The increase in purchase commitments was primarily due to a $20 million purchase agreement with one of the Company’s primary instrument equipment suppliers, and $1 million agreement to upgrade the Company’s current ERP system both of which were executed in the second quarter of fiscal 2014.