3.	OTHER INVESTMENTS

Sirona Collaboration

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On October 3, 2014, the Company entered into a collaborative arrangement with Sirona Genomics, Inc. (“Sirona”) for the

commercialization of Sirona’s human leukocyte antigen (“HLA”) typing sample preparation and bioinformatics offering for next generation sequencing. As part of the collaborative arrangement, the Company

paid $0.7 million for a warrant with an exclusive option to acquire 100% of the common stock of Sirona and loaned Sirona $9.5 million to fund development efforts of its existing projects. Of the $9.5 million loan, $1.8 million was funded in the third quarter of fiscal 2016. The loan to Sirona bears interest at a market rate. The collaborative arrangement also included the potential for future interest bearing loans from the Company of up to $1.8 million over a two-year period from the date of the arrangement, subject to the achievement of certain development milestones and other terms of the arrangement. The outstanding loan and the warrant asset are both included in Other assets on the Company’s consolidated balance sheet as of February 29, 2016.

Sirona is considered to be a VIE. However, because Sirona retains sole responsibility for and control of the operations of the business and for achieving product commercialization, the Company is not required to consolidate the results of Sirona.

The maximum loss exposure associated with this VIE as of February 29, 2016 was $12.0 million, which included the outstanding loan to Sirona of $9.5 million, the amount paid for the warrant of $0.7 million, and the maximum amount of future potential loans that could be required under the arrangement.

In March 2016, the Company exercised its warrant to acquire 100% of the common stock of Sirona. Refer to Note 20 of the consolidated financial statements for additional information.