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Note 3 - Selected Balance Sheet Data

6 Months Ended

Dec. 31, 2021

Supplemental Balance Sheet Disclosures [Text Block]

Note 3. Selected Balance Sheet Data:

Inventories:

Inventories consist of (in thousands):

	December 31,		June 30,
	2021		2021
Raw materials	$	61,624	$	55,096
Finished goods⁽¹⁾		65,620		67,108
Inventories, net	$	127,244	$	122,204

⁽¹⁾Finished goods inventory of $5,386 and $5,456 included within other long-term assets in the respective December 31, 2021 and June 30, 2021, consolidated balance sheet. The inventory is included in long-term assets as it is 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):

	December 31,			June 30,
	2021			2021
Land	$	8,587		$	8,612
Buildings and improvements		225,501			190,661
Machinery and equipment		161,431			149,410
Construction in progress		17,386			49,073
Property and equipment, cost		412,905			397,756
Accumulated depreciation and amortization		(201,091	)		(189,849	)
Property and equipment, net	$	211,814		$	207,907

Intangible Assets:

Intangible assets consist of (in thousands):

	December 31,			June 30,
	2021			2021
Developed technology	$	544,388		$	552,160
Trade names		147,327			147,640
Customer relationships		228,419			232,493
Patents		3,116			2,926
Other intangibles		6,309			6,316
Definite-lived intangible assets		929,559			941,535
Accumulated amortization		(382,912	)		(348,267	)
Definite-lived intangibles assets, net		546,647			593,268
In process research and development		22,700			22,700
Total intangible assets, net	$	569,347		$	615,968

Changes to the carrying amount of net intangible assets for the quarter ended December 31, 2021 consist of (in thousands):

Beginning balance	$	615,968
Acquisitions		-
Other additions		171
Amortization expense		(37,258	)
Currency translation		(971	)
Eminence impairment ⁽¹⁾		(8,563	)
Ending balance	$	569,347

The estimated future amortization expense for intangible assets as of December 31, 2021 is as follows (in thousands):

2022 remainder	$	36,927
2023		71,669
2024		68,818
2025		65,579
2026		61,819
Thereafter		241,835
Total	$	546,647

⁽¹⁾As disclosed in Note 1, the Company recorded an impairment charge of $8.6 million related to Eminence in Q2 of FY'22.

Goodwill:

Changes to the carrying amount of goodwill for the quarter ended December 31, 2021 consist of (in thousands):

	Protein Sciences			Diagnostics and Genomics			Total
Beginning balance	$	392,717		$	450,350		$	843,067
Acquisitions		-			-			-
Eminence impairment		(8,275	)		-			(8,275	)
Currency translation		(2,610	)		(126	)		(2,736	)
Ending balance	$	381,832		$	450,224		$	832,056

We evaluate the carrying value of goodwill in the fourth quarter of each fiscal year and between annual evaluations if events occur or circumstances change that would indicate a possible impairment. The Company performed a quantitative goodwill impairment assessment for all of its reporting units during the fourth quarter of fiscal 2021. No indicators of impairment were identified as part of our assessment.

During the quarter ended September 30, 2021, the Company combined the management of the Exosome Diagnostics and Asuragen reporting units, both of which are included in the Diagnostics and Genomics operating segment. In conjunction with the combination of the reporting units, a qualitative goodwill impairment assessment was performed. The qualitative assessment identified no indicators of impairment.

As disclosed in Note 1, the Company identified a triggering event and a goodwill impairment charge of $8.3 million in the quarter ended December 31, 2021. No additional triggering events or items beyond the upcoming Eminence liquidation were identified during the quarter ended December 31, 2021. The impairment of the Eminence goodwill is the only impairment of goodwill recorded since the adoption of Financial Accounting Standards Board ("FASB") ASC 350 guidance for goodwill and other intangibles on July 1, 2002.