Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Aug. 25, 2014 | Dec. 31, 2013 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'OSI SYSTEMS INC | ' | ' |
Entity Central Index Key | '0001039065 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,013,961,302 |
Entity Common Stock, Shares Outstanding | ' | 19,796,575 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $38,831 | $34,697 |
Accounts receivable, net | 185,773 | 206,817 |
Inventories | 234,138 | 206,213 |
Deferred taxes | 73,510 | 41,617 |
Prepaid expenses and other current assets | 46,978 | 53,780 |
Total current assets | 579,230 | 543,124 |
Property and equipment, net | 260,479 | 249,029 |
Goodwill | 92,607 | 83,743 |
Intangible assets, net | 43,615 | 36,603 |
Other assets | 48,255 | 40,240 |
Total assets | 1,024,186 | 952,739 |
CURRENT LIABILITIES: | ' | ' |
Bank lines of credit | 24,000 | 59,000 |
Current portion of long-term debt | 2,819 | 1,797 |
Accounts payable | 74,460 | 97,050 |
Accrued payroll and related expenses | 32,997 | 28,503 |
Advances from customers | 38,493 | 37,432 |
Deferred revenue | 60,677 | 18,131 |
Income taxes payable | 20,556 | 19,659 |
Other accrued expenses and current liabilities | 55,977 | 36,667 |
Total current liabilities | 309,979 | 298,239 |
Long-term debt | 10,436 | 10,673 |
Advances from customers | 50,000 | 75,000 |
Deferred income taxes | 73,161 | 46,365 |
Other long-term liabilities | 48,397 | 44,011 |
Total liabilities | 491,973 | 474,288 |
Commitments and contingencies (Note 9) | ' | ' |
Stockholders' Equity: | ' | ' |
Preferred stock, $0.001 par value-authorized, 10,000,000 shares; no shares issued or outstanding | ' | ' |
Common stock, $0.001 par value-authorized, 100,000,000 shares; issued and outstanding, 19,914,089 and 19,942,923 shares at June 30, 2013 and 2014, respectively | 287,434 | 285,001 |
Retained earnings | 247,680 | 199,786 |
Accumulated other comprehensive loss | -2,901 | -6,336 |
Total stockholders' equity | 532,213 | 478,451 |
Total liabilities and stockholders' equity | $1,024,186 | $952,739 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
CONSOLIDATED BALANCE SHEETS | ' | ' |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, authorized shares | 100,000,000 | 100,000,000 |
Common stock, shares issued | 19,942,923 | 19,914,089 |
Common stock, shares outstanding | 19,942,923 | 19,914,089 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Net revenues: | ' | ' | ' |
Products | $654,040 | $600,279 | $678,490 |
Services | 252,702 | 201,768 | 114,500 |
Total net revenues | 906,742 | 802,047 | 792,990 |
Cost of goods sold: | ' | ' | ' |
Products | 453,709 | 397,061 | 447,268 |
Services | 148,033 | 114,560 | 77,080 |
Total cost of goods sold | 601,742 | 511,621 | 524,348 |
Gross profit | 305,000 | 290,426 | 268,642 |
Operating expenses: | ' | ' | ' |
Selling, general and administrative | 166,869 | 159,761 | 151,746 |
Research and development | 44,792 | 48,240 | 49,565 |
Impairment, restructuring and other charges | 12,044 | 7,987 | 1,391 |
Total operating expenses | 223,705 | 215,988 | 202,702 |
Income from operations | 81,295 | 74,438 | 65,940 |
Interest and other expense, net | 5,440 | 5,024 | 3,957 |
Income before income taxes | 75,855 | 69,414 | 61,983 |
Provision for income taxes | 27,961 | 25,279 | 16,435 |
Net income | $47,894 | $44,135 | $45,548 |
Earnings per share: | ' | ' | ' |
Basic (in dollars per share) | $2.40 | $2.21 | $2.31 |
Diluted (in dollars per share) | $2.33 | $2.15 | $2.24 |
Shares used in per share calculation: | ' | ' | ' |
Basic (in shares) | 19,952 | 19,956 | 19,732 |
Diluted (in shares) | 20,587 | 20,568 | 20,330 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ' | ' | ' |
Net income | $47,894 | $44,135 | $45,548 |
Other comprehensive income (loss): | ' | ' | ' |
Foreign currency translation adjustment | 2,795 | -2,359 | -5,597 |
Defined benefit pension plans | 606 | 194 | -763 |
Net unrealized gain (loss) on investments and derivatives | 34 | 117 | -73 |
Other comprehensive income (loss) | 3,435 | -2,048 | -6,433 |
Comprehensive income | $51,329 | $42,087 | $39,115 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
In Thousands, except Share data, unless otherwise specified | ||||
Balance at Jun. 30, 2011 | $384,800 | $272,552 | $110,103 | $2,145 |
Balance (in shares) at Jun. 30, 2011 | ' | 19,507,065 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Exercise of stock options | 2,492 | 2,492 | ' | ' |
Exercise of stock options (in shares) | ' | 140,385 | ' | ' |
Vesting of restricted shares (in shares) | ' | 208,376 | ' | ' |
Net tax benefit of stock options exercised/forfeited | 3,187 | 3,187 | ' | ' |
Shares issued under employee stock purchase program | 2,391 | 2,391 | ' | ' |
Shares issued under employee stock purchase program (in shares) | ' | 82,752 | ' | ' |
Stock compensation expense | 8,530 | 8,530 | ' | ' |
Repurchase of common stock | -3,927 | -3,927 | ' | ' |
Repurchase of common stock (in shares) | -67,037 | -67,037 | ' | ' |
Taxes paid related to net share settlement of equity awards | -2,469 | -2,469 | ' | ' |
Taxes paid related to net share settlement of equity awards (in shares) | ' | -50,477 | ' | ' |
Net income | 45,548 | ' | 45,548 | ' |
Other comprehensive income (loss) | -6,433 | ' | ' | -6,433 |
Balance at Jun. 30, 2012 | 434,119 | 282,756 | 155,651 | -4,288 |
Balance (in shares) at Jun. 30, 2012 | ' | 19,821,064 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Exercise of stock options | 1,835 | 1,835 | ' | ' |
Exercise of stock options (in shares) | ' | 117,705 | ' | ' |
Vesting of restricted shares (in shares) | ' | 236,070 | ' | ' |
Net tax benefit of stock options exercised/forfeited | 3,566 | 3,566 | ' | ' |
Shares issued under employee stock purchase program | 2,840 | 2,840 | ' | ' |
Shares issued under employee stock purchase program (in shares) | ' | 85,056 | ' | ' |
Stock compensation expense | 16,446 | 16,446 | ' | ' |
Repurchase of common stock | -12,012 | -12,012 | ' | ' |
Repurchase of common stock (in shares) | -200,732 | -200,732 | ' | ' |
Taxes paid related to net share settlement of equity awards | -10,430 | -10,430 | ' | ' |
Taxes paid related to net share settlement of equity awards (in shares) | ' | -145,074 | ' | ' |
Net income | 44,135 | ' | 44,135 | ' |
Other comprehensive income (loss) | -2,048 | ' | ' | -2,048 |
Balance at Jun. 30, 2013 | 478,451 | 285,001 | 199,786 | -6,336 |
Balance (in shares) at Jun. 30, 2013 | 19,914,089 | 19,914,089 | ' | ' |
Increase (Decrease) in Shareholders' Equity | ' | ' | ' | ' |
Exercise of stock options | 47 | 47 | ' | ' |
Exercise of stock options (in shares) | ' | 1,169 | ' | ' |
Vesting of restricted shares (in shares) | ' | 283,091 | ' | ' |
Net tax benefit of stock options exercised/forfeited | 4,573 | 4,573 | ' | ' |
Shares issued under employee stock purchase program | 1,455 | 1,455 | ' | ' |
Shares issued under employee stock purchase program (in shares) | ' | 29,185 | ' | ' |
Stock compensation expense | 16,983 | 16,983 | ' | ' |
Repurchase of common stock | -12,056 | -12,056 | ' | ' |
Repurchase of common stock (in shares) | -165,845 | -165,845 | ' | ' |
Taxes paid related to net share settlement of equity awards | -8,569 | -8,569 | ' | ' |
Taxes paid related to net share settlement of equity awards (in shares) | ' | -118,766 | ' | ' |
Net income | 47,894 | ' | 47,894 | ' |
Other comprehensive income (loss) | 3,435 | ' | ' | 3,435 |
Balance at Jun. 30, 2014 | $532,213 | $287,434 | $247,680 | ($2,901) |
Balance (in shares) at Jun. 30, 2014 | 19,942,923 | 19,942,923 | ' | ' |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
CASH FLOWS FROM OPERATING ACTIVITIES | ' | ' | ' |
Net income | $47,894 | $44,135 | $45,548 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 54,239 | 27,507 | 20,199 |
Stock based compensation expense | 16,983 | 16,446 | 8,530 |
Provision for losses on accounts receivable | 229 | 3,563 | 417 |
Tax benefit of share based compensation plan | 4,573 | 3,566 | 3,187 |
Deferred income taxes provision (benefit) | 7,936 | 3,604 | -1,457 |
Other | 121 | 299 | -224 |
Changes in operating assets and liabilities-net of business acquisitions: | ' | ' | ' |
Accounts receivable | 26,180 | -53,568 | -17,445 |
Inventories | -21,026 | -12,894 | -24,525 |
Prepaid expenses and other current assets | 4,485 | 20,547 | -5,019 |
Accounts payable | -26,143 | 40,476 | -12,925 |
Accrued payroll and related expenses | 4,524 | 4,158 | 2,093 |
Advances from customers | -23,944 | -10,736 | 99,025 |
Accrued warranties | -1,866 | -4,634 | 3,126 |
Deferred revenue | 40,630 | -5,563 | 8,279 |
Other accrued expenses and current liabilities | -5,645 | -18,241 | -8,246 |
Net cash provided by operating activities | 129,170 | 58,665 | 120,563 |
CASH FLOWS FROM INVESTING ACTIVITIES | ' | ' | ' |
Acquisition of property and equipment | -54,598 | -157,367 | -68,490 |
Acquisition of businesses, net of cash acquired | -11,740 | -6,087 | -7,989 |
Acquisition of intangible and other assets | -5,896 | -4,399 | -4,703 |
Net cash used in investing activities | -72,234 | -167,853 | -81,182 |
CASH FLOWS FROM FINANCING ACTIVITIES | ' | ' | ' |
Net borrowings (repayments) on bank lines of credit | -35,000 | 59,000 | ' |
Proceeds from long-term debt | 3,497 | 11,100 | ' |
Payments on long-term debt | -3,667 | -1,274 | -217 |
Proceeds from exercise of stock options and employee stock purchase plan | 1,501 | 4,674 | 4,883 |
Repurchase of common shares | -12,056 | -12,011 | -3,927 |
Taxes paid related to net share settlement of equity awards | -8,569 | -10,431 | -2,469 |
Net cash provided by (used in) financing activities | -54,294 | 51,058 | -1,730 |
Effect of exchange rate changes on cash | 1,492 | 1,375 | -1,818 |
Net increase (decrease) in cash and cash equivalents | 4,134 | -56,755 | 35,833 |
Cash and cash equivalents-beginning of year | 34,697 | 91,452 | 55,619 |
Cash and cash equivalents-end of year | 38,831 | 34,697 | 91,452 |
Supplemental disclosure of cash flow information: | ' | ' | ' |
Interest | 4,659 | 3,480 | 3,168 |
Income taxes | $18,552 | $12,289 | $7,150 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||
Description of Business—OSI Systems, Inc., together with its subsidiaries (the "Company"), is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products in diversified markets, including homeland security, healthcare, defense and aerospace. | ||||||||||||||||||||
The Company has three reporting segments: (i) Security, providing security inspection systems, turnkey security screening solutions and related services; (ii) Healthcare, providing patient monitoring, diagnostic cardiology and anesthesia systems, and related services and (iii) Optoelectronics and Manufacturing, providing specialized electronic components and electronic manufacturing services for the Security and Healthcare divisions as well as to external original equipment manufacturing clients for applications in the defense, aerospace, medical and industrial markets, among others. | ||||||||||||||||||||
Through its Security division, the Company provides security screening, threat detection and non-intrusive inspection products and related services globally. These products fall into the following categories: baggage and parcel inspection systems; cargo and vehicle inspection systems; hold (checked) baggage screening systems; people screening; radiation detection; and trace detection. In addition to these products, the Company provides site design, installation, training and technical support services to its customers. The Company also provides turnkey security screening solutions, which can include the construction, staffing and long-term operation of security screening checkpoints for its customers. | ||||||||||||||||||||
Through its Healthcare division, the Company designs, manufactures, markets and services patient monitoring, diagnostic cardiology and anesthesia delivery and ventilation systems, and related supplies and accessories worldwide. These products are used by care providers in critical care, emergency and perioperative areas within hospitals as well as physicians' offices, medical clinics and ambulatory surgery centers. | ||||||||||||||||||||
Through its Optoelectronics and Manufacturing division, the Company designs, manufactures and markets optoelectronic devices and provides electronics manufacturing services worldwide for use in a broad range of applications, including aerospace and defense electronics, security and inspection systems, medical imaging and diagnostic products, telecommunications, computer peripherals, industrial automation systems, automotive diagnostic systems, gaming systems and consumer products. This division provides products and services to original equipment manufacturers and end users as well as to the Company's own Security and Healthcare divisions. | ||||||||||||||||||||
Consolidation—The Consolidated Financial Statements include the accounts of OSI Systems, Inc. and its wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Investments in joint ventures over which the Company has significant influence but does not have voting control are accounted for using the equity method. Investments over which the Company does not have significant influence are accounted for using the cost method. | ||||||||||||||||||||
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||||||
Reclassifications—Certain reclassifications have been made to prior year amounts within the Consolidated Balance Sheet and Consolidated Statement of Cash Flows to conform to the current year's presentation. | ||||||||||||||||||||
Cash Equivalents—The Company considers all highly liquid investments purchased with maturities of approximately three months or less as of the acquisition date to be cash equivalents. | ||||||||||||||||||||
Accounts Receivable—Billed receivables include outstanding trade receivables. Unbilled receivables primarily include earned but unbilled revenue. Allowance for doubtful accounts involves estimates based on management's judgment, review of individual receivables and analysis of historical bad debts. The Company monitors collections and payments from its customers and maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. | ||||||||||||||||||||
Components of accounts receivable consisted of: | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Billed receivables | $ | 179,458 | $ | 189,489 | ||||||||||||||||
Unbilled receivables | 34,636 | 1,975 | ||||||||||||||||||
Less allowance for doubtful accounts | (7,277 | ) | (5,691 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 206,817 | $ | 185,773 | ||||||||||||||||
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Inventories—Inventories are generally stated at the lower of cost (first-in, first-out) or market. The Company writes down inventory for slow-moving and obsolete inventory based on assessments of future demands, market conditions and customers who may be experiencing financial difficulties. If these factors are less favorable than those projected, additional inventory write-downs may be required. | ||||||||||||||||||||
Property and Equipment—Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets taking into consideration any salvage value. Amortization of leasehold improvements is calculated on the straight-line basis over the shorter of the useful life of the asset or the lease term. Leased capital assets are included in property and equipment. Amortization of property and equipment under capital leases is included with depreciation expense. | ||||||||||||||||||||
Goodwill and Other Intangible Assets and Valuation of Long-Lived Assets—Goodwill represents the excess purchase price of net tangible and intangible assets acquired in business combinations over their estimated fair value. Goodwill is allocated to the Company's segments based on the nature of the product line of the acquired business. The carrying value of goodwill is not amortized, but is annually tested for impairment during the Company's second quarter and more often if there is an indicator of impairment. Intangible assets other than goodwill are amortized over their useful lives unless these lives are determined to be indefinite. The Company assesses qualitative factors of each of its reporting units to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Such assessments indicated that it is not more likely than not that the fair value of each reporting unit is less than its carrying amount, including goodwill. Thus, the Company has determined that it is not necessary to proceed with the two-step goodwill impairment test. There was no goodwill impairment for each of three fiscal years ended June 30, 2014. | ||||||||||||||||||||
The Company evaluates long-lived assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment does exist, the Company measures the impairment loss and records it based on the discounted estimate of future cash flows. In estimating future cash flows, the Company groups assets at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows from other asset groups. The Company's estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. | ||||||||||||||||||||
Income Taxes—Deferred income taxes are provided for temporary differences between the financial statement and income tax basis of the Company's assets and liabilities, based on enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Income tax accounting standards prescribe a two-step process for the financial statement measurement and recognition of a tax position taken or expected to be taken in a tax return. The first step involves the determination of whether it is more likely than not (greater than 50 percent likelihood) that a tax position will be sustained upon examination, based on the technical merits of the position. The second step requires that any tax position that meets the more-likely-than-not recognition threshold be measured and recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The income tax accounting standards also provide guidance on the accounting for related interest and penalties, financial statement classification and disclosure. The cumulative effect of applying these standards is to be reported as an adjustment to the opening balance of retained earnings in the period of adoption. See Note 8 for additional information. | ||||||||||||||||||||
Fair Value of Financial Instruments—The Company's financial instruments consist primarily of cash, marketable securities, accounts receivable, accounts payable and debt instruments. The carrying values of financial instruments, other than long-term debt instruments, are representative of their fair values due to their short-term maturities. The carrying values of the Company's long-term debt instruments are considered to approximate their fair values because the interest rates of these instruments are variable or comparable to current rates offered to the Company. | ||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. "Level 1" category includes assets and liabilities at the quoted prices in active markets for identical assets and liabilities. "Level 2" category includes assets and liabilities from observable inputs other than quoted market prices. "Level 3" category includes assets and liabilities whose valuation techniques are unobservable and significant to the fair value measurement. There were no assets or liabilities where "Level 3" valuation techniques were used, and there were no assets and liabilities measured at fair value on a non-recurring basis. | ||||||||||||||||||||
The following is a summary of the investments carried at fair value (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | June 30, | Level 1 | Level 2 | June 30, | |||||||||||||||
2013 | 2014 | |||||||||||||||||||
Equity securities | 316 | — | 316 | 914 | — | 914 | ||||||||||||||
Insurance company contracts | — | 13,914 | 13,914 | — | 17,383 | 17,383 | ||||||||||||||
Interest rate contract | — | 66 | 66 | — | 28 | 28 | ||||||||||||||
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Total | $ | 316 | $ | 13,980 | $ | 14,296 | $ | 914 | $ | 17,411 | $ | 18,325 | ||||||||
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Derivative Instruments and Hedging Activity—The Company's use of derivatives consists of an interest rate swap agreement. The interest rate swap agreement was entered into to improve the predictability of cash flows from interest payments related to variable, LIBOR-based debt for the duration of the term loan. The interest rate swap matures in October 2019. The interest rate swap is considered an effective cash flow hedge, and, as a result, the net gains or losses on such instrument were reported as a component of Other comprehensive income in the Consolidated Financial Statements and are reclassified as net income when the hedge transaction settles. | ||||||||||||||||||||
Revenue Recognition—The Company recognizes revenue from sales of products upon shipment when title and risk of loss passes, and when terms are fixed and collection is probable. Revenue from services includes after-market services, installation and implementation of products, and turnkey security screening services. The portion of revenue for the sale attributable to installation is deferred and recognized when the installation service is provided. In an instance where terms of sale include subjective customer acceptance criteria, revenue is deferred until the Company has achieved the acceptance criteria. Concurrent with the shipment of the product, the Company accrues estimated product return reserves and warranty expenses. Critical judgments made by management related to revenue recognition include the determination of whether or not customer acceptance criteria are perfunctory or inconsequential. The determination of whether or not customer acceptance terms are perfunctory or inconsequential impacts the amount and timing of revenue recognized. Critical judgments also include estimates of warranty reserves, which are established based on historical experience and knowledge of the product under warranty. | ||||||||||||||||||||
Revenue from turnkey services agreements is included in revenue from services. In certain agreements, revenue is recognized based upon proportional performance, measured by the actual number of hours incurred divided by the total estimated number of hours for the project. The impact of changes in the estimated hours to service the agreement is reflected in the period during which the change becomes known. Deferred revenue for such agreements arises when payments from customers are received in advance of revenue recognition. | ||||||||||||||||||||
Revenues from out of warranty service maintenance contracts are recognized ratably over the term of such contract. For services not derived from specific maintenance contracts, revenues are recognized as the services are performed. Deferred revenue for such services arises from payments received from customers for services not yet performed. On occasion, the Company receives advances from customers that are amortized against future customer payments pursuant to the underlying agreements. Such advances are classified in the consolidated balance sheets as either a current or long-term liability dependent upon when the Company estimates the corresponding amortization to occur. | ||||||||||||||||||||
Freight—The Company records shipping and handling fees it charges to its customers as revenue and related costs as cost of goods sold. | ||||||||||||||||||||
Research and Development Costs—Research and development costs are those costs related to the development of a new product, process or service, or significant improvement to an existing product, process or service. Such costs are charged to operations as incurred. | ||||||||||||||||||||
Stock-Based Compensation—Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the employee's requisite service period for all stock-based awards granted or modified. Certain restricted awards vest based on the achievement of pre-established performance goals. The fair value of performance-based awards is estimated at the date of grant and the probability that the specified performance criteria will be met, adjusted for estimated forfeitures. Each quarter the Company updates the assessment of the probability that the specified performance criteria will be achieved and adjusts the estimate of the fair value of the performance-based awards if necessary. The Company amortizes the fair value of performance-based awards over the requisite service period for each separately vesting tranche of the award. See Note 7 to the Consolidated Financial Statements. | ||||||||||||||||||||
Impairment, Restructuring and Other Charges—The Company consolidates processes and facilities of its subsidiaries to better align with demand by its customers and thereby improve its operational efficiencies. The associated charges, and other non-recurring charges and impairment of assets, are recognized as impairment, restructuring and other charges in the Consolidated Financial Statements. See Note 5 for additional information about these restructuring charges. | ||||||||||||||||||||
Credit Risk and Concentration—Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company restricts investments in cash equivalents to financial institutions with high credit standing. Credit risk on accounts receivable is minimized as a result of the large and diverse nature of the Company's worldwide customer base. As of June 30, 2013, one customer accounted for 16% of accounts receivable; while a different customer accounted for 13% of accounts receivable as of June 30, 2014. During fiscal 2012, one customer accounted for 12% of revenues, while a different customer accounted for 14% of revenues during fiscal 2014. There were no customers accounting for more than 10% of revenues during fiscal 2013. The Company performs ongoing credit evaluations of its customers' financial condition and maintains allowances for potential credit losses. | ||||||||||||||||||||
The Company has a key single-source vendor to supply an integral component in its cargo product lines in the Security division. The Company also relies primarily on a vendor that provides key components to the Optoelectronics and Manufacturing division. While management believes that relying on key vendors improves the efficiency and reliability of business operations, relying on any one vendor for a significant aspect of business can have a significant negative impact on revenue and profitability if that vendor fails to perform at acceptable service levels for any reason, including financial difficulties of the vendor. | ||||||||||||||||||||
Foreign Currency Translation—The Company transacts business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country's currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using year-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders' equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Transaction gains and losses, which were included in the Company's consolidated statement of operations, amounted to a gain (loss) of approximately $0.4 million, $1.8 million and $(1.8) million for the fiscal years ended June 30, 2012, 2013 and 2014, respectively. | ||||||||||||||||||||
Business Combinations—During the normal course of business the Company makes acquisitions. In the event that an individual acquisition (or an aggregate of acquisitions) is material, appropriate disclosure of such acquisition activity is provided. The acquisition method of accounting for business combinations requires the Company to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for a business combination) in a manner that is generally similar to the previous purchase method of accounting. | ||||||||||||||||||||
Under the acquisition method of accounting the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete the business combination such as investment banking, legal and other professional fees are not considered part of consideration and the Company charges them to general and administrative expense as they are incurred. Under the acquisition method the Company also accounts for acquired company restructuring activities that the Company initiates separately from the business combination. Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement period, the Company reports provisional amounts in its financial statements. During the measurement period, the Company adjusts the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. The Company applies those measurement period adjustments that the Company determines to be significant retrospectively to comparative information in its financial statements, including adjustments to depreciation and amortization expense. | ||||||||||||||||||||
Earnings per Share—Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common stockholders by the sum of the weighted average number of common and dilutive potential common shares outstanding. Potential common shares consist of the shares issuable upon the exercise of stock options under the treasury stock method. | ||||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the fiscal years ended June 30 (in thousands, except earnings per share data): | ||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Net income available to common stockholders | $ | 45,548 | $ | 44,135 | $ | 47,894 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Weighted average shares outstanding—basic | 19,732 | 19,956 | 19,952 | |||||||||||||||||
Dilutive effect of stock options | 598 | 612 | 635 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Weighted average of shares outstanding—diluted | 20,330 | 20,568 | 20,587 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Basic earnings per share | $ | 2.31 | $ | 2.21 | $ | 2.4 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Diluted earnings per share | $ | 2.24 | $ | 2.15 | $ | 2.33 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Provision for Warranties—The Company offers its customers warranties on many of the products that it sells. These warranties typically provide for repairs and maintenance of the products if problems arise during a specified time period after original shipment. Concurrent with the sale of products, the Company records a provision for estimated warranty expenses with a corresponding increase in cost of goods sold. The Company periodically adjusts this provision based on historical experience and anticipated expenses. The Company charges actual expenses of repairs under warranty, including parts and labor, to this provision when incurred. | ||||||||||||||||||||
Provision for | ||||||||||||||||||||
Warranties | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance on June 30, 2011 | $ | 14,530 | ||||||||||||||||||
Warranty claims provision | 8,620 | |||||||||||||||||||
Settlements made | (5,588 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2012 | $ | 17,562 | ||||||||||||||||||
Warranty claims provision | 1,948 | |||||||||||||||||||
Settlements made | (6,620 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2013 | $ | 12,890 | ||||||||||||||||||
Warranty claims provision | 5,573 | |||||||||||||||||||
Settlements made | (6,540 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2014 | $ | 11,923 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Recent Accounting Updates Not Yet Adopted—In May 2014, the Financial Accounting Standards Board issued an accounting standards update amending revenue recognition requirements for multiple-deliverable revenue arrangements. This update provides guidance on how revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The update is effective for annual reporting periods after December 15, 2016 and for interim reporting periods within that reporting period. Early adoption is not permitted. The Company has not yet adopted this update and is currently evaluating the impact it may have on its financial condition and results of operations. | ||||||||||||||||||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
INVENTORIES | ' | |||||||
INVENTORIES | ' | |||||||
2. INVENTORIES | ||||||||
Inventory consisted of the following (in thousands): | ||||||||
June 30, | ||||||||
2013 | 2014 | |||||||
Raw materials | $ | 117,416 | $ | 117,945 | ||||
Work-in-process | 37,337 | 33,394 | ||||||
Finished goods | 51,460 | 82,799 | ||||||
| | | | | | | | |
Total | $ | 206,213 | $ | 234,138 | ||||
| | | | | | | | |
| | | | | | | | |
PROPERTY_AND_EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||
3. PROPERTY AND EQUIPMENT | ||||||||||
Property and equipment consisted of the following (in thousands): | ||||||||||
June 30, | ||||||||||
Estimated | ||||||||||
Useful | ||||||||||
Lives | 2013 | 2014 | ||||||||
Land | N/A | $ | 8,365 | $ | 13,651 | |||||
Buildings and improvements | 5-40 years | 102,187 | 163,952 | |||||||
Leasehold improvements | 1-25 years | 9,302 | 9,744 | |||||||
Equipment and tooling | 3-10 years | 135,437 | 154,367 | |||||||
Furniture and fixtures | 3-13 years | 3,551 | 4,017 | |||||||
Computer equipment | 3-5 years | 14,309 | 17,466 | |||||||
Computer software | 3-10 years | 15,209 | 15,670 | |||||||
Construction in process | N/A | 48,713 | 12,650 | |||||||
| | | | | | | | | | |
Total | 337,073 | 391,517 | ||||||||
Less accumulated depreciation and amortization | (88,044 | ) | (131,038 | ) | ||||||
| | | | | | | | | | |
Property and equipment, net | $ | 249,029 | $ | 260,479 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
During fiscal 2012, 2013 and 2014, depreciation expense was approximately $15.5 million, $22.6 million and $49.9 million, respectively. | ||||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||
4. GOODWILL AND INTANGIBLE ASSETS | ||||||||||||||||||||||
The changes in the carrying amount of goodwill for fiscal 2013 and 2014 are as follows (in thousands): | ||||||||||||||||||||||
Security | Healthcare | Optoelectronics | Consolidated | |||||||||||||||||||
Division | Division | and | ||||||||||||||||||||
Manufacturing | ||||||||||||||||||||||
Division | ||||||||||||||||||||||
Balance as of June 30, 2012 | $ | 27,583 | $ | 35,887 | $ | 18,679 | $ | 82,149 | ||||||||||||||
Goodwill acquired or adjusted during the period | 798 | — | 701 | 1,499 | ||||||||||||||||||
Foreign currency translation adjustment | 165 | (60 | ) | (10 | ) | 95 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||||
Balance as of June 30, 2013 | $ | 28,546 | $ | 35,827 | $ | 19,370 | $ | 83,743 | ||||||||||||||
Goodwill acquired or adjusted during the period | 784 | 1,018 | 5,730 | 7,532 | ||||||||||||||||||
Foreign currency translation adjustment | 177 | 392 | 763 | 1,332 | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||||
Balance as of June 30, 2014 | $ | 29,507 | $ | 37,237 | $ | 25,863 | $ | 92,607 | ||||||||||||||
| | | | | | | | | | | | | | |||||||||
| | | | | | | | | | | | | | |||||||||
Intangible assets subject to amortization consisted of the following (in thousands): | ||||||||||||||||||||||
June 30, 2013 | June 30, 2014 | |||||||||||||||||||||
Weighted | Gross | Accumulated | Intangibles | Gross | Accumulated | Intangibles | ||||||||||||||||
Average | Carrying | Amortization | Net | Carrying | Amortization | Net | ||||||||||||||||
Lives | Value | Value | ||||||||||||||||||||
Amortizable assets: | ||||||||||||||||||||||
Software development costs | 7 years | $ | 17,350 | $ | 5,396 | $ | 11,954 | $ | 21,165 | $ | 6,716 | $ | 14,449 | |||||||||
Patents | 20 years | 5,400 | 635 | 4,765 | 6,566 | 765 | 5,801 | |||||||||||||||
Core technology | 10 years | 2,058 | 1,728 | 330 | 2,289 | 2,150 | 139 | |||||||||||||||
Developed technology | 11 years | 20,002 | 14,620 | 5,382 | 18,308 | 11,559 | 6,749 | |||||||||||||||
Customer relationships/backlog | 7 years | 9,178 | 5,624 | 3,554 | 11,419 | 7,011 | 4,408 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Total amortizable assets | 53,988 | 28,003 | 25,985 | 59,747 | 28,201 | 31,546 | ||||||||||||||||
Non-amortizable assets: | ||||||||||||||||||||||
Trademarks | 10,618 | — | 10,618 | 12,069 | — | 12,069 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Total intangible assets | $ | 64,606 | $ | 28,003 | $ | 36,603 | $ | 71,816 | $ | 28,201 | $ | 43,615 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Amortization expense for fiscal 2012, 2013 and 2014 was $4.7 million, $4.9 million and $4.3 million, respectively. Future acquisitions could cause these amounts to increase. At June 30, 2014, estimated future amortization expense was as follows (in thousands): | ||||||||||||||||||||||
2015 | $ | 3,019 | ||||||||||||||||||||
2016 | 2,902 | |||||||||||||||||||||
2017 | 3,073 | |||||||||||||||||||||
2018 | 3,059 | |||||||||||||||||||||
2019 | 2,906 | |||||||||||||||||||||
Thereafter, including assets that have not yet begun to be amortized | 16,587 | |||||||||||||||||||||
| | | | | ||||||||||||||||||
Total | $ | 31,546 | ||||||||||||||||||||
| | | | | ||||||||||||||||||
| | | | | ||||||||||||||||||
Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product by product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio that current revenues for a product bear to the total current and anticipated future revenues for that product. In the event that future revenues are not estimable, such costs are amortized on a straight line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in thereafter in the table above. During fiscal 2012, 2013 and 2014, the Company capitalized software development costs in the amount of $2.1 million, $2.2 million and $3.0 million, respectively. | ||||||||||||||||||||||
IMPAIRMENT_RESTRUCTURING_AND_O
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | ' | ||||||||||||||||
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | ' | ||||||||||||||||
5. IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | |||||||||||||||||
In response to challenging worldwide economic conditions, the Company continued to optimize its cost structure by reducing excess workforce and facilities and consolidating and relocating certain manufacturing facilities. In addition, as a result of a contract settlement with the Transportation Security Agency (TSA) in fiscal 2013 related to the Rapiscan Secure 1000SP Advanced Imaging Technology system and associated Automated Target Recognition software and the Company's related agreement with the U.S. Department of Homeland Security (DHS), and other contract issues with U.S. Government agencies, the Company incurred charges, including the write-off of inventory, removal and storage costs for products previously sold to the TSA and legal costs; and recognized the impairment of related capitalized software development costs. In fiscal 2014, the Company recognized additional charges related to a termination for default of a contract with the TSA as well as contract issues with other U.S. Government agencies. The related accruals are included in other accrued expenses and current liabilities in the consolidated balance sheets. The following table analyzes the key components of impairment, restructuring and other charges throughout fiscal 2012, 2013 and 2014: | |||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Consolidated | |||||||||||||
Division | Division | and | |||||||||||||||
Manufacturing | |||||||||||||||||
Division | |||||||||||||||||
Accrued balance as of June 30, 2011 | $ | 465 | $ | 179 | $ | 104 | $ | 28 | $ | 776 | |||||||
Expensed during the year | |||||||||||||||||
Facility closure | — | — | 233 | — | 233 | ||||||||||||
Employee termination costs | 290 | 170 | 698 | — | 1,158 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total expensed during year | 290 | 170 | 931 | — | 1,391 | ||||||||||||
Paid or incurred during the year | 458 | 179 | 1,029 | 19 | 1,685 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Accrued balance as of June 30, 2012 | $ | 297 | $ | 170 | $ | 6 | $ | 9 | $ | 482 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expensed during the year | |||||||||||||||||
Facility closure | — | 2,309 | 344 | — | 2,653 | ||||||||||||
Employee termination costs | 781 | 57 | 246 | — | 1,084 | ||||||||||||
Charges related to contract settlement | 3,155 | — | — | — | 3,155 | ||||||||||||
Impairment of software development costs | 1,095 | — | — | — | 1,095 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total expensed during the year | 5,031 | 2,366 | 590 | — | 7,987 | ||||||||||||
Paid or incurred during the year | 4,285 | 897 | 530 | 9 | 5,721 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Accrued balance as of June 30, 2013 | $ | 1,043 | $ | 1,639 | $ | 66 | — | $ | 2,748 | ||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expensed during the year | |||||||||||||||||
Facility closure / consolidations (1) | — | 2,009 | 763 | — | 2,772 | ||||||||||||
Employee termination costs (2) | 886 | — | 669 | — | 1,555 | ||||||||||||
Charges related to government contract issues (3) | 5,798 | — | — | — | 5,798 | ||||||||||||
Charges related to class action litigation | — | — | — | 594 | 594 | ||||||||||||
Debt restructuring (4) | — | — | — | 1,325 | 1,325 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total expensed during the year | 6,684 | 2,009 | 1,432 | 1,919 | 12,044 | ||||||||||||
Paid or incurred during the year | 5,912 | 2,598 | 1,430 | 1,919 | 11,859 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Accrued balance as of June 30, 2014 | $ | 1,815 | $ | 1,050 | $ | 68 | — | $ | 2,933 | ||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
The facility closure within the Healthcare division began in fiscal 2013 and was completed during the first quarter of fiscal 2014. The facility consolidations within the Optoelectronics and Manufacturing division began during the first quarter of fiscal 2014 and are expected to be completed during first half of fiscal 2015. | |||||||||||||||||
-2 | |||||||||||||||||
The employee termination costs within the Security division were incurred as a result of management restructuring. The employee termination costs within the Optoelectronics and Manufacturing division related to facility consolidations. | |||||||||||||||||
-3 | |||||||||||||||||
These costs related to contract issues with the TSA and other U.S. Government agencies. These costs include removal, storage and refurbishing costs for products previously sold to the TSA as required by the termination, and legal and other costs. | |||||||||||||||||
-4 | |||||||||||||||||
Debt restructuring costs relate to the amendment of the Company's credit agreement that was completed in the fourth quarter of fiscal 2014. | |||||||||||||||||
LINEOFCREDIT_BORROWINGS_AND_DE
LINE-OF-CREDIT BORROWINGS AND DEBT | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
LINE-OF-CREDIT BORROWINGS AND DEBT | ' | |||||||
LINE-OF-CREDIT BORROWINGS AND DEBT | ' | |||||||
6. LINE-OF-CREDIT BORROWINGS AND DEBT | ||||||||
The Company has a $450 million credit agreement, as amended, maturing May 2019. The credit agreement consists of a $450 million revolving credit facility, including a $375 million sub-limit for letters of credit. The Company has the ability to increase the facility by $200 million under certain circumstances. Borrowings under this facility bear interest at the London Interbank Offered Rate ("LIBOR") plus a margin of 1.25% as of June 30, 2014. This margin is determined by the Company's consolidated leverage ratio and may range from 1.25% to 2.0%. Letters of credit reduce the amount available to borrow by their face value. As of June 30, 2014, the unused portion of the facility bears a commitment fee of 0.20%, but can range from 0.20% to 0.35% based on the Company's consolidated leverage ratio. The Company's borrowings under the credit agreement are guaranteed by the Company's U.S.-based subsidiaries and are secured by substantially all of the Company's and certain subsidiaries' assets. The agreement contains various representations, warranties, affirmative, negative and financial covenants, and conditions of default customary for financing agreements of this type. As of June 30, 2014, there was $24 million outstanding under the revolving credit facility and letters-of-credit outstanding totaled $102.9 million. As of June 30, 2014, the Company believes that it is in material compliance with all related covenants to this credit facility. | ||||||||
Several of the Company's foreign subsidiaries maintain bank lines-of-credit, denominated in local currencies and US dollars, to meet short-term working capital requirements and for the issuance of letters-of-credit. As of June 30, 2014, $21.8 million was outstanding under these lines-of-credit facilities, while no debt was outstanding. As of June 30, 2014, the total amount available under these credit facilities was $16.3 million, with a total cash borrowing sub-limit of $1.7 million. | ||||||||
In September 2012, the Company entered into a term loan agreement for $11.1 million to fund the acquisition of land and a building in the state of Washington. The loan is payable over seven years and bears interest at LIBOR plus 1.25%, which is payable on a monthly basis. Concurrent with entering into the floating rate loan, the Company entered into an interest rate swap agreement that effectively locks the interest rate of the loan to 2.2% per annum for the term of the loan. As of June 30, 2014, $8.5 million remained outstanding under this loan. | ||||||||
Long-term debt consisted of the following at June 30 (in thousands): | ||||||||
2013 | 2014 | |||||||
Term loans | $ | 12,470 | $ | 10,921 | ||||
Other long-term debt | — | 2,334 | ||||||
| | | | | | | | |
12,470 | 13,255 | |||||||
Less current portion of long-term debt | 1,797 | 2,819 | ||||||
| | | | | | | | |
Long-term portion of debt | $ | 10,673 | $ | 10,436 | ||||
| | | | | | | | |
| | | | | | | | |
Fiscal year principal payments of long-term debt as of June 30, 2014 are as follows (in thousands): | ||||||||
2015 | $ | 2,819 | ||||||
2016 | 2,606 | |||||||
2017 | 2,304 | |||||||
2018 | 1,887 | |||||||
2019 | 1,820 | |||||||
2020 and thereafter | 1,819 | |||||||
| | | | | ||||
Total | $ | 13,255 | ||||||
| | | | | ||||
| | | | | ||||
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
7. STOCK-BASED COMPENSATION | ||||||||||||||
As of June 30, 2014, the Company maintained two share-based employee compensation plans (the "OSI Plans"): the 2012 Incentive Award Plan ("2012 Plan") and the Amended and Restated 2006 Equity Participation Plan ("2006 Plan"). Upon stockholder approval of the 2012 Plan, the Company ceased to make grants under the 2006 Plan. | ||||||||||||||
The Company recorded stock-based-compensation expense in the consolidated statement of operations as follows (in thousands): | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Cost of goods sold | $ | 465 | $ | 820 | $ | 887 | ||||||||
Selling, general and administrative | 7,811 | 15,394 | 15,940 | |||||||||||
Research and development | 254 | 232 | 156 | |||||||||||
| | | | | | | | | | | ||||
Stock based compensation expense | 8,530 | 16,446 | 16,983 | |||||||||||
Less: Related income tax benefit | 3,050 | 6,123 | 6,498 | |||||||||||
| | | | | | | | | | | ||||
Stock based compensation expense, net | $ | 5,480 | $ | 10,323 | $ | 10,485 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
As of June 30, 2014, total unrecognized compensation cost related to share-based compensation grants were estimated at $1.0 million for stock options and $14.4 million for restricted stock and restricted stock units ("RSUs") under the OSI Plans. The Company expects to recognize these costs over a weighted-average period of 1.5 years with respect to the options and 2.0 years for grants of restricted stock and RSUs. | ||||||||||||||
Employee Stock Purchase Plan—The Company has an employee stock purchase plan under which eligible employees may purchase a limited number of shares of Common Stock at a discount of up to 15% of the market value of such stock at pre-determined, plan-defined dates. During the three years ended June 30, 2012, 2013 and 2014, employees purchased 82,752, 85,056 and 29,185 shares, respectively. As of June 30, 2014, there were 1,019,200 shares of the Company's Common Stock available for issuance under the plan. | ||||||||||||||
OSI Plans | ||||||||||||||
In September 2012, the Company's Board of Directors approved the 2012 Plan, and in December 2012 the stockholders adopted the 2012 Plan. The 2012 Plan serves as the successor to the 2006 Plan. No new awards will be issued under the 2006 Plan as of the date of stockholder approval of the 2012 Plan. Outstanding awards under the 2006 Plan continue to be subject to the terms and conditions of the 2006 Plan. | ||||||||||||||
Under the 2012 Plan, the Company is authorized to grant awards in the form of incentive options, nonqualified options, restricted stock awards, stock appreciation rights, RSUs, performance shares and stock bonuses, amongst other forms of equity, to qualified employees, directors and consultants. | ||||||||||||||
Under the OSI Plans, the exercise price of nonqualified options and incentive stock options may not be less than the fair market value of the Company's Common Stock on the date of grant. The exercise price of nonqualified options and incentive stock options granted to individuals who own more than 10% of the Company's voting stock may not be less than 110% of the fair market value of the Company's Common Stock on the date of grant. Stock options granted under the OSI Plans typically vest over three years based on continued service. Restricted stock and RSUs typically vest over three to four years based on continued service. Certain restricted stock awards granted to senior management vest based on the achievement of pre-established performance goals. | ||||||||||||||
Stock Option Fair Value Estimation Assumptions. The Company estimates the fair value of its stock options at the date of grant using the Black-Scholes option-pricing valuation model. The Company's valuation model is affected by the Company's stock price as well as weighted average assumptions for a number of subjective variables described below. | ||||||||||||||
Expected Dividend. Expected dividend is based on historical patterns and the Company's anticipated dividend payments over the expected holding period. | ||||||||||||||
Risk-Free Interest Rate. The risk-free interest rate for stock options is based on U.S. Treasuries for a maturity matching the expected holding period. | ||||||||||||||
Expected Volatility. Expected volatility is based on the Company's historical share price volatility matching the expected holding period. No single method of estimating volatility is proper under all circumstances and to the extent that a company can derive implied volatility based on the trading of its financial instruments on a public market, it may be appropriate to use both implied and historical volatility in its assumptions. The Company has certain financial instruments that are publicly traded from which the Company can derive the implied volatility. Therefore, the Company used implied and historical volatility for valuing its stock options. The Company believes that implied and historical volatility is a better indicator of expected volatility because it is generally reflective of both historical volatility and expectations of how future volatility will differ from historical volatility. | ||||||||||||||
Expected Holding Period. The Company uses historical stock option exercise data to estimate the expected holding period. | ||||||||||||||
Changes in assumptions can materially impact the estimated fair value of stock options. The weighted average assumptions used in the valuation model are presented in the table below. | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | ||||||||
Risk-free interest rate | 0.6 | % | 0.6 | % | 1.3 | % | ||||||||
Expected volatility | 35.6 | % | 33 | % | 33 | % | ||||||||
Expected holding period (in years) | 4.3 | 4.3 | 4.5 | |||||||||||
The following summarizes stock option activity for fiscal years 2012, 2013 and 2014: | ||||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | |||||||||||
Options | Average | Remaining Contractual | Intrinsic Value | |||||||||||
Exercise | Term | (in thousands) | ||||||||||||
Price | ||||||||||||||
Outstanding at June 30, 2011 | 930,912 | 18.45 | ||||||||||||
Granted | 269,469 | 35.98 | ||||||||||||
Exercised | (140,385 | ) | 17.75 | |||||||||||
Expired or forfeited | (599 | ) | 16.72 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at June 30, 2012 | 1,059,397 | 23.01 | ||||||||||||
Granted | 90,234 | 55.37 | ||||||||||||
Exercised | (117,705 | ) | 15.59 | |||||||||||
Expired or forfeited | (12,193 | ) | 56.36 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at June 30, 2013 | 1,019,733 | 26.33 | ||||||||||||
| | | | | | | | | | | | | | |
Granted | 10,294 | 70.59 | ||||||||||||
Exercised | (1,169 | ) | 39.97 | |||||||||||
Expired or forfeited | (5,867 | ) | 54.06 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at June 30, 2014 | 1,022,991 | 26.6 | 5.7 years | $ | 41,114 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at June 30, 2014 | 873,511 | $ | 23.53 | 5.3 years | $ | 37,750 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The per-share weighted-average grant-date fair value of stock options granted under the OSI Plans was $10.67, $15.33 and $20.78 for fiscal 2012, 2013 and 2014, respectively. The total intrinsic value of options exercised during fiscal 2014 was $38,000. | ||||||||||||||
Restricted Stock Awards and Restricted Stock Units—A summary of restricted stock award and restricted stock unit activity for the periods indicated was as follows: | ||||||||||||||
Shares | Weighted- | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at June 30, 2011 | 565,113 | $ | 22.89 | |||||||||||
Granted | 230,597 | 36.99 | ||||||||||||
Vested | (208,376 | ) | 21.41 | |||||||||||
Forfeited | (6,866 | ) | 31.1 | |||||||||||
| | | | | | | | |||||||
Nonvested at June 30, 2012 | 580,468 | $ | 28.93 | |||||||||||
Granted | 296,334 | 57.29 | ||||||||||||
Vested | (236,070 | ) | 25.83 | |||||||||||
Forfeited | (13,608 | ) | 43.03 | |||||||||||
| | | | | | | | |||||||
Nonvested at June 30, 2013 | 627,124 | $ | 43.13 | |||||||||||
Granted | 322,275 | 63.73 | ||||||||||||
Vested | (283,091 | ) | 39.4 | |||||||||||
Forfeited | (4,908 | ) | 49.22 | |||||||||||
| | | | | | | | |||||||
Nonvested at June 30, 2014 | 661,400 | $ | 54.78 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
The per-share weighted average grant-date fair value of restricted stock and RSUs granted under the OSI Plans was $36.99, $57.29 and $63.73 for fiscal 2012, 2013 and 2014, respectively. The total fair value of shares vested during fiscal 2012, 2013 and 2014 was $4.5 million, $6.1 million and $11.2 million, respectively. | ||||||||||||||
As of June 30, 2014, there were 3,330,177 shares available for grant under the 2012 Plan. Under the terms of the 2012 Plan, RSUs and restricted stock granted from the pool of shares available for grant reduce the pool by 1.87 shares for each award granted. RSUs and restricted stock forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each award forfeited. | ||||||||||||||
The Company granted 75,000, 178,500 and 160,922 performance-based awards during fiscal 2012, 2013 and 2014, respectively. These performance-based restricted stock and RSU awards are contingent on the achievement of certain financial performance metrics. The payout can range from zero to 250% of the original number of shares or units awarded, which are converted into shares of the Company's common stock. | ||||||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
INCOME TAXES | ' | ||||||||||
INCOME TAXES | ' | ||||||||||
8. INCOME TAXES | |||||||||||
The following is a geographical breakdown of income before the provision for income taxes (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Pre-tax income (loss): | |||||||||||
United States | $ | 21,335 | $ | (13,111 | ) | $ | (22,604 | ) | |||
Foreign | 40,648 | 82,525 | 98,459 | ||||||||
| | | | | | | | | | | |
Total pre-tax income | $ | 61,983 | $ | 69,414 | $ | 75,855 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The Company's provision (benefit) for income taxes consists of the following (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 8,176 | $ | (2,214 | ) | $ | (704 | ) | |||
State | 2,396 | (36 | ) | 113 | |||||||
Foreign | 7,320 | 23,925 | 20,616 | ||||||||
| | | | | | | | | | | |
Total current provision | 17,892 | 21,675 | 20,025 | ||||||||
Deferred: | |||||||||||
Federal | $ | (3,565 | ) | $ | (2,422 | ) | $ | (5,366 | ) | ||
State | (554 | ) | 337 | (1,128 | ) | ||||||
Foreign | 2,662 | 5,689 | 14,430 | ||||||||
| | | | | | | | | | | |
Total deferred provision | (1,457 | ) | 3,604 | 7,936 | |||||||
| | | | | | | | | | | |
Total provision | $ | 16,435 | $ | 25,279 | $ | 27,961 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Stock-based compensation during the fiscal year ended June 30, 2012, 2013 and 2014 resulted in additional tax benefit, and has been reflected as an adjustment of income taxes payable and as an adjustment of additional paid-in capital. The adjustments recorded were $3.2 million, $3.6 million and $4.6 million for the years ended June 30, 2012, 2013 and 2014, respectively. | |||||||||||
As of June 30, 2013 and 2014, the Company's liability for uncertain tax positions was $6.9 million and $3.2 million, respectively. Of the $3.2 million, $2.8 million represents the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate. | |||||||||||
The Company recognizes potential interest and penalties related to income tax matters in income tax expense. As of June 30, 2014, the Company had accrued $0.4 million for interest and penalties. The Company's uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. These include fiscal years after 2011 for federal purposes, fiscal years after 2010 for state purposes and fiscal years after 2005 for various foreign jurisdictions. Facts and circumstances could arise that could cause the Company to reduce the liability for unrecognized tax benefits, including, but not limited to, settlement of income tax positions or expiration of statutes of limitation. Since the ultimate resolution of uncertain tax positions depends on many factors and assumptions, the Company is not able to estimate the range of potential changes in the liability for unrecognized tax benefits or the timing of such changes. | |||||||||||
A summary of activity of unrecognized tax benefits for fiscal 2012, 2013 and 2014 was as follows (in thousands). | |||||||||||
Balance as July 1, 2011 | $ | 7,369 | |||||||||
Additions on tax positions for the current year | 264 | ||||||||||
Additions on tax positions from prior years | 503 | ||||||||||
Reduction in tax position from prior year | (1,063 | ) | |||||||||
| | | | | |||||||
Balance as June 30, 2012 | $ | 7,073 | |||||||||
Additions on tax positions for the current year | 785 | ||||||||||
Additions on tax positions from prior years | — | ||||||||||
Reduction in tax position from prior year | (953 | ) | |||||||||
| | | | | |||||||
Balance at June 30, 2013 | $ | 6,905 | |||||||||
Additions on tax positions for the current year | — | ||||||||||
Additions on tax positions from prior years | — | ||||||||||
Reduction in tax position from prior year | (3,723 | ) | |||||||||
| | | | | |||||||
Balance at June 30, 2014 | $ | 3,182 | |||||||||
| | | | | |||||||
| | | | | |||||||
The Company does not provide for U.S. income taxes on the undistributed earnings of its foreign subsidiaries as it is the Company's intention to utilize those earnings in the foreign operations for an indefinite period of time. At June 30, 2014, undistributed earnings of the foreign subsidiaries amounted to approximately $417 million. The amount of unrecognized deferred tax liability related to these temporary differences is estimated to be approximately $146 million. The amount of tax payable could be significantly impacted by the source location and amount of the distribution, the underlying tax rate already paid on the earnings, foreign withholding taxes and the opportunity to use foreign tax credits. | |||||||||||
Deferred income tax assets (liabilities) consisted of the following (in thousands): | |||||||||||
June 30, | |||||||||||
2013 | 2014 | ||||||||||
Deferred income tax assets: | |||||||||||
Tax credit carryforwards | $ | 5,680 | $ | 9,314 | |||||||
Net operating loss carryforwards | 5,275 | 5,868 | |||||||||
Customer advances | 29,574 | 48,330 | |||||||||
Allowance for doubtful accounts | 2,511 | 3,071 | |||||||||
Inventory reserve | 7,204 | 7,951 | |||||||||
Inventory capitalization | 1,363 | 2,814 | |||||||||
Accrued liabilities | 4,587 | 4,667 | |||||||||
Stock compensation | 11,705 | 16,633 | |||||||||
Other assets | 1,317 | 9,716 | |||||||||
| | | | | | | | ||||
Total deferred income tax assets | 69,216 | 108,364 | |||||||||
Valuation allowance | (11,081 | ) | (13,344 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax assets | 58,135 | 95,020 | |||||||||
| | | | | | | | ||||
Deferred income tax liabilities: | |||||||||||
Depreciation | (34,402 | ) | (58,258 | ) | |||||||
State income taxes | (1,239 | ) | (1,471 | ) | |||||||
Amortization of intangible assets | (10,724 | ) | (11,702 | ) | |||||||
Prepaid expenses | (2,297 | ) | (20,284 | ) | |||||||
Other liabilities | (380 | ) | (3,188 | ) | |||||||
| | | | | | | | ||||
Total deferred income tax liabilities | (49,042 | ) | (94,903 | ) | |||||||
| | | | | | | | ||||
Net deferred tax asset | $ | 9,093 | $ | 117 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The components of the net deferred income tax asset are classified in the consolidated balance sheets as follows (in thousands): | |||||||||||
2013 | 2014 | ||||||||||
Current deferred income tax asset | $ | 41,618 | $ | 73,510 | |||||||
Current deferred income tax liability, included in other accrued expenses and current liabilities | (2,677 | ) | (21,742 | ) | |||||||
Long term deferred income tax asset, included in other assets | 16,518 | 21,510 | |||||||||
Long term deferred income tax liability | (46,366 | ) | (73,161 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax asset | $ | 9,093 | $ | 117 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
The components of current taxes receivable and payable and prepaid taxes are classified in the consolidated balance sheets as follows (in thousands): | |||||||||||
2013 | 2014 | ||||||||||
Current taxes receivable and prepaid taxes, included in prepaid expenses and other current assets | $ | 14,149 | $ | 13,126 | |||||||
Current taxes payable | (19,659 | ) | (20,556 | ) | |||||||
| | | | | | | | ||||
Net tax payable | (5,510 | ) | (7,430 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
As of June 30, 2014, the Company had domestic and foreign net operating loss carryforwards of approximately $22.8 million and $22.5 million, respectively. As of June 30, 2014, the Company had federal and state research and development tax credit carryforwards of approximately $6.5 million and $3.5 million, respectively. As of June 30, 2014, the Company had foreign tax credit carryforwards of $2.5 million. The Company's credit carryforwards will begin to expire in the tax year ending June 30, 2016. | |||||||||||
The Company has established valuation allowances that relate to the net operating loss of certain subsidiaries, foreign tax credits and R&D credits. During the year ended June 30, 2014, the Company recorded a net aggregated increase of $2.1 million to these valuation allowances. The Company reviews the adequacy of individual valuation allowances and releases such allowances when it is determined that it is more likely than not that the related benefits will be realized. | |||||||||||
The Company recognizes excess tax benefits associated with the exercise of stock options directly to stockholders' equity only when realized. Accordingly, deferred tax assets are not recognized for net operating losses resulting from excess tax benefits. As of June 30, 2014, deferred tax assets do not include approximately $2.1 million of these excess tax benefits from employee stock option exercises that are a component of the Company's net operating loss carry forwards. Accordingly, additional paid-in capital will be increased up to an additional $2.1 million if and when such excess tax benefits are realized. However, to the extent additional paid-in capital has been recognized for qualifying excess tax deductions from previous share-based payments, the write off of the deferred tax asset when the tax deduction is less than recognized compensation cost is charged to additional paid-in capital , with any remainder charged to provision for income taxes. | |||||||||||
The consolidated effective income tax rate differs from the federal statutory income tax rate due primarily to the following: | |||||||||||
June 30, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Provision for income taxes at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes and credits—net of federal benefit | 1.9 | 0.3 | (0.5 | ) | |||||||
Impact to tax rate as a result of accelerating depreciation of certain foreign assets | — | 9.8 | 10.1 | ||||||||
Research and development tax credits | (0.5 | ) | (1.9 | ) | (0.5 | ) | |||||
Foreign income subject to tax at other than federal statutory rate | (11.0 | ) | (8.9 | ) | (7.6 | ) | |||||
Change in valuation allowance | 1.6 | 2.8 | 2.8 | ||||||||
Unrecognized tax benefit | (1.8 | ) | (2.0 | ) | (4.3 | ) | |||||
Other | 1.3 | 1.3 | 1.9 | ||||||||
| | | | | | | | | | | |
Effective income tax rate | 26.5 | % | 36.4 | % | 36.9 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
The provision for income taxes consists of provisions for federal, state, and foreign income taxes. The Company operates in an international environment with significant operations in various locations outside the U.S. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates. | |||||||||||
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
9. COMMITMENTS AND CONTINGENCIES | |||||||||||||||||
The following is a summary of commitments as of June 30, 2014 (in thousands): | |||||||||||||||||
Payments Due by Period | |||||||||||||||||
Total | Less than | 2-3 years | 4-5 years | After | |||||||||||||
1 year | 5 years | ||||||||||||||||
Total debt | $ | 37,255 | $ | 26,819 | $ | 4,910 | $ | 3,707 | $ | 1,819 | |||||||
Operating leases | $ | 20,191 | $ | 9,581 | $ | 8,616 | $ | 1,994 | $ | — | |||||||
Defined benefit plan obligation | $ | 8,006 | $ | 162 | $ | 384 | $ | 1,083 | $ | 6,377 | |||||||
Operating Leases—The Company leases facilities and certain equipment under various operating lease agreements. Certain leases provide for periodic rent increases and may contain escalation clauses and renewal options. Rent expense totaled $13.0 million, $13.1 million and $9.9 million for fiscal years 2012, 2013 and 2014, respectively. | |||||||||||||||||
Contingent Acquisition Obligations—Under the terms and conditions of the purchase agreements associated with certain acquisitions, the Company may be obligated to make additional payments based on the achievement by the acquired operations of certain sales or profitability milestones. The maximum amount of such future payments under arrangements with contingent consideration caps is $56 million as of June 30, 2014. In addition, one of the purchase agreements the Company entered into requires royalty payments through 2022 based on the license of, or sales of products containing, the technology of CXR Limited, a company acquired in 2004. For acquisitions that occurred prior to fiscal year 2010, the Company accounts for such contingent payments as an addition to the purchase price of the acquired business. Otherwise, the estimated fair value of these obligations is recorded as a liability at the time of the acquisition in the consolidated balance sheets with subsequent revisions reflected in the consolidated statements of operations. As of June 30, 2013 and 2014, $15.4 million and $23.2 million of contingent payment obligations, respectively, are included in Other long-term liabilities in the accompanying consolidated balance sheets. During fiscal 2013 and 2014, the fair values of these contingent obligations were revised and resulted in reductions of $5.4 million and $3.9 million, respectively. | |||||||||||||||||
Advances from Customers—The Company receives advances from customers associated with certain projects. In fiscal 2012, the Company entered into an agreement with the Mexican government to provide a turnkey security screening solution along the country's borders, and in its ports and airports. Associated with the agreement, the Company was provided an advance totaling $100 million. The Company is obligated to provide a guarantee until the advance has been amortized. As of June 30, 2014, $75.0 million of this advance remains outstanding. | |||||||||||||||||
Environmental Contingencies—The Company is subject to various environmental laws. The Company's practice is to conduct appropriate environmental investigations at its manufacturing facilities in North America, Asia Pacific, and Europe, and, to the extent practicable, on all new properties in order to identify, as of the date of such report, potential areas of environmental concern related to past and present activities or from nearby operations. In certain cases, the Company has conducted further environmental assessments consisting of soil and groundwater testing and other investigations deemed appropriate by independent environmental consultants. | |||||||||||||||||
During one investigation at the Company's Hawthorne, California facility, the Company discovered soil and groundwater contamination that it believes was the result of unspecified on- and off-site releases occurring prior to the Company's occupancy. Historical usage of this site includes semiconductor and electronics manufacturing, dating back to the mid-1960s, as well as possible aircraft and related manufacturing dating to the early 1940s. Similar operations, including chemical manufacturing and storage, were conducted at neighboring sites throughout that period and into the 1990s. It is not presently known when the releases occurred or by whom they were caused, though Company records, in conjunction with data obtained from soil and groundwater surveys, support the Company's assertion that these releases are historical in nature. Further, the groundwater contamination is a known regional issue, not limited to the Company's premises or its immediate surroundings. The Company filed the requisite reports concerning this site with the appropriate environmental authorities upon discovery, and in cooperation with the local governing agency has provided additional historical information and conducted further site characterization studies. Recent soil and groundwater investigations, including the installation of groundwater monitoring wells, were completed in fiscal 2014. Results from these studies are being evaluated to determine the extent of the on-site releases and whether any soils remediation will be required. Periodic groundwater monitoring is expected to continue until such time as the governing authority requests further action. | |||||||||||||||||
The Company has not accrued for loss contingencies relating to the Hawthorne facility or any other environmental matters because it believes that, although unfavorable outcomes may be possible, they are not considered by the Company's management to be probable and reasonably estimable. If one or more of environmental matters are resolved in a manner adverse to the Company, the impact on the Company's business, financial condition, results of operations, financial position and/or liquidity could be material. | |||||||||||||||||
Indemnifications—In the normal course of business, the Company has agreed to indemnify certain parties with respect to certain matters. The Company has agreed to hold certain parties harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, the Company has entered into indemnification agreements with its officers and directors. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. The Company has not recorded any liability for costs related to indemnification as of June 30, 2014. | |||||||||||||||||
Legal Proceedings—On December 12, 2013, a putative class action complaint was filed against the Company and certain of its officers in the United States District Court for the Central District of California ("Court") captioned Roberti v. OSI Systems, Inc., et al., Case No. 2:13-cv-09174-MWF-VBK (the "Securities Class Action"). The Amended Complaint, filed on May 20, 2014, alleges that the Company and the individual defendants violated the Securities Exchange Act of 1934 by misrepresenting or failing to disclose facts concerning the status of Rapiscan's efforts to develop Automated Threat Recognition software and the alleged use of unapproved parts in its baggage scanning systems in violation of its contract with the TSA. The Amended Complaint also asserts that the individual defendants allegedly sold stock based on material non-public information. Plaintiff demands a jury trial and seeks class certification, unspecified damages, an award of pre-judgment and post-judgment interest, attorneys' and experts' fees, costs, and other unspecified relief. On July 18, 2014, the Company filed a Motion to Dismiss the Amended Complaint. The Motion is scheduled to be heard on November 3, 2014. | |||||||||||||||||
On April 15, 2014, a shareholder derivative complaint was filed in the Court purportedly on behalf of the Company against the members of the Company's Board of Directors (as individual defendants), captioned Hagan v. Chopra, et al., Case No. 2:14-cv-02910-ODW-PJW (the "Derivative Action"). The complaint generally asserts the same factual allegations as those at issue in the related Securities Class Action and purports to allege claims for breach of fiduciary duties and unjust enrichment against the individual defendants on behalf of the Company. The complaint seeks unspecified damages, restitution, injunctive relief, attorneys' and experts' fees, costs, expenses, and other unspecified relief. The Derivative Action is currently stayed pending the resolution of the Motion to Dismiss in the Securities Class Action. | |||||||||||||||||
While the Company believes that the Securities Class Action and the Derivative Action are without merit and intends to defend the litigation vigorously, it expects to incur costs associated with defending the Securities Class Action and the Derivative Action. At this early stage of the litigations, the ultimate outcomes of the Securities Class Action and the Derivative Action are uncertain and the Company cannot reasonably predict the timing or outcomes, or estimate the amount of loss, if any, or their effect, if any, on its financial statements. | |||||||||||||||||
The Company is involved in various other claims and legal proceedings arising in the ordinary course of business. In the Company's opinion after consultation with legal counsel, the ultimate disposition of such proceedings is not likely to have a material adverse effect on its business, financial condition, results of operations or cash flows. The Company has not accrued for loss contingencies relating to such matters because the Company believes that, although unfavorable outcomes in the proceedings may be possible, they are not considered by management to be probable or reasonably estimable. If one or more of these matters are resolved in a manner adverse to the Company, the impact on the Company's business, financial condition, results of operations and/or liquidity could be material. | |||||||||||||||||
Other Matters—On December 5, 2013, the Company's Security division was notified by the TSA that a delivery order that it had received on September 26, 2013, for baggage and handling inspection systems was being terminated for default. The termination resulted from the use of an upgraded X-ray generator component. While the component had been vetted by the Security division's internal quality assurance, the Security division had not met the contractual requirement of obtaining the TSA's approval in advance. The upgraded X-ray generator component has since been approved for use by the TSA. As a result of this termination for default, the Security division was referred to the DHS for further review. Although the results of this review cannot be determined at this time, among other consequences, the Security division could be barred from conducting future business with the U.S. Government for a period of time. The Security division is continuing to work to complete the review process with the DHS, but the timing of the completion of this process and the ultimate outcome are currently unknown. | |||||||||||||||||
STOCKHOLDERS_EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Jun. 30, 2014 | |
STOCKHOLDERS' EQUITY | ' |
STOCKHOLDERS' EQUITY | ' |
10. STOCKHOLDERS' EQUITY | |
Stock Repurchase Program | |
The Company's Board of Directors has authorized a Common Stock repurchase program. During fiscal 2012, 2013 and 2014, the Company repurchased 67,037 shares, 200,732 shares and 165,845 shares, respectively, under this program. As of June 30, 2014, 1,219,195 shares were available for additional repurchase under the program. Upon repurchase, the shares were restored to the status of authorized but unissued shares in the accompanying Consolidated Financial Statements. | |
RELATEDPARTY_TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Jun. 30, 2014 | |
RELATED-PARTY TRANSACTIONS | ' |
RELATED-PARTY TRANSACTIONS | ' |
11. RELATED-PARTY TRANSACTIONS | |
In 1994, the Company, together with an unrelated company, formed ECIL-Rapiscan Security Products Limited, a joint venture organized under the laws of India. The Company owns a 36% interest in the joint venture, the Company's Chairman and Chief Executive Officer owns a 10.5% interest, and the Company's Executive Vice President and President of the Company's Security division owns a 4.5% ownership interest. The Company's initial investment was approximately $0.1 million. For the years ended June 30, 2012 and 2013, the Company's equity earnings in the joint venture were approximately $0.4 million and $0.1 million, respectively. There was no equity earnings in the joint venture recognized for the year ended June 30, 2014. The Company, its Chairman and Chief Executive Officer and the Company's Executive Vice President and President of the Company's Security division collectively control less than 50% of the board of directors voting power in the joint venture. As a result, the Company accounts for the investment under the equity method of accounting. The joint venture was formed for the purpose of the manufacture, assembly, service and testing of security and inspection systems and other products. Some of the Company's subsidiaries are suppliers to the joint venture partner, which in turn manufactures and sells the resulting products. Sales to the joint venture partner for fiscal 2012, 2013 and 2014 were approximately $5.8 million, $5.7 million and $5.2 million, respectively. Receivables from the joint venture were $0.3 million and $0.6 million as of June 30, 2013 and 2014, respectively. | |
The Company has contracted with entities owned by its Chief Executive Officer and/or his family members to provide messenger service, auto rental and printing services. Such expenses for 2012, 2013 and 2014 were approximately $79,000, $76,000 and $31,000, respectively. | |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||
12. EMPLOYEE BENEFIT PLANS | ||||||||||||||
Employee Retirement Savings Plans | ||||||||||||||
The Company has various qualified employee retirement savings plans. Participants can contribute certain amounts to the plans and the Company matches a certain portion of employee contributions. The Company contributed approximately $3.9 million, $3.7 million and $4.1 million to the plans for the fiscal years ended June 30, 2012, 2013 and 2014, respectively. | ||||||||||||||
Deferred Compensation Plan | ||||||||||||||
The Company has a deferred compensation plan, which meets the requirements for deferred compensation under Section 409A of the Internal Revenue Code. The plan provides that selected employees are eligible to defer up to 80% of their salaries and up to 100% of their bonuses. The Company may also make employer contributions to participant accounts in certain circumstances. The benefits under this plan are unsecured. Participants are generally eligible to receive payment of their vested benefit at the end of their elected deferral period or after termination of their employment for any reason or at a later date to comply with the restrictions of Section 409A. Discretionary Company contributions and the related earnings are subject to a vesting schedule dependent upon years of service to the Company and, also, vest completely upon the participant's disability or death while employed by the Company or immediately prior to a change of control. The Company made contributions of $0.7 million, $0.6 million and $0.6 million during fiscal year 2012, 2013 and 2014, respectively. As of June 30, 2014, the Company held assets of $12.7 million and liabilities of $12.5 million. Assets related to this plan are included in other assets and liabilities related to this plan are included in other long-term liabilities in the consolidated balance sheets. The plan liabilities include accrued employer contributions not yet funded to the plan. | ||||||||||||||
Employee Pension Plans | ||||||||||||||
The Company sponsors a number of qualified and nonqualified pension plans for its employees at certain locations. In accordance with accounting standards for employee pension and postretirement benefits, the Company fully recognizes the overfunded or underfunded status of each of its defined benefit plans as an asset or liability in the consolidated balance sheets. The asset or liability equals the difference between the fair value of the plans' assets and their benefit obligations. The liabilities associated with underfunded plans are classified as noncurrent, except to the extent the fair value of the plans' assets is less than the plans' estimated benefit payments over the next 12 months. The Company measures its pension and postretirement benefit plans' assets and benefit obligations as of June 30. | ||||||||||||||
The following provides a reconciliation of the changes in the plans' benefit obligations and fair value of assets for fiscal years 2013 and 2014, and a statement of the funded status as of June 30, 2013 and 2014 (in thousands): | ||||||||||||||
2013 | 2014 | |||||||||||||
Change in Benefit Obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 11,758 | $ | 12,753 | ||||||||||
Translation adjustment | (53 | ) | 568 | |||||||||||
Service costs | 70 | 58 | ||||||||||||
Interest costs | 635 | 697 | ||||||||||||
Actuarial (gain) loss | 562 | (196 | ) | |||||||||||
Benefits paid | (219 | ) | (190 | ) | ||||||||||
| | | | | | | | |||||||
Benefit obligation at end of year | 12,753 | 13,690 | ||||||||||||
| | | | | | | | |||||||
Change in Plan Assets | ||||||||||||||
Fair value of plan assets at beginning of year | 6,030 | 6,523 | ||||||||||||
Translation adjustment | (82 | ) | 512 | |||||||||||
Actual return on plan assets | 487 | 479 | ||||||||||||
Company contributions | 251 | 333 | ||||||||||||
Benefits paid | (163 | ) | (136 | ) | ||||||||||
| | | | | | | | |||||||
Fair value of plan assets at end of year | 6,523 | 7,711 | ||||||||||||
| | | | | | | | |||||||
Funded status | (6,230 | ) | (5,979 | ) | ||||||||||
Unrecognized net actuarial loss | — | — | ||||||||||||
| | | | | | | | |||||||
Net amount recognized | $ | (6,230 | ) | $ | (5,979 | ) | ||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Amount recognized in consolidated balance sheets consist of: | ||||||||||||||
Investments | $ | 248 | $ | 856 | ||||||||||
Accrued pension liability | (6,478 | ) | (6,835 | ) | ||||||||||
Accumulated other comprehensive income | 3,651 | 2,752 | ||||||||||||
The following table provides the net periodic benefit costs for each of the fiscal years ended June 30, (in thousands): | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Net Periodic Benefit Costs | ||||||||||||||
Service costs | $ | 54 | $ | 70 | $ | 58 | ||||||||
Interest costs | 487 | 635 | 697 | |||||||||||
Expected return on plan assets | (359 | ) | (360 | ) | (393 | ) | ||||||||
Amortization of prior service costs | 335 | 615 | 615 | |||||||||||
Recognized actuarial loss | 109 | 197 | 144 | |||||||||||
| | | | | | | | | | | ||||
Net periodic benefit cost | $ | 626 | $ | 1,157 | $ | 1,121 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Plan Assumptions | ||||||||||||||
2013 | 2014 | |||||||||||||
Weighted average assumptions at year-end: | ||||||||||||||
Discount rate | 5.3 | % | 5.1 | % | ||||||||||
Expected return on plan assets | 5.5 | % | 5.7 | % | ||||||||||
Rate of compensation increase | 3.1 | % | 3.2 | % | ||||||||||
The long term return on assets has been derived from the weighted average of assumed returns on each of the major asset categories. The weighted average is based on the actual proportion of each major asset class held, rather than a benchmark portfolio of assets. The expected returns for each major asset class have been derived from a combination of both historical market returns and current market data as well as the views of a range of investment managers. | ||||||||||||||
Plan Assets and Investment Policy | ||||||||||||||
Fiscal year ended | Fiscal year ended | |||||||||||||
June 30, 2013 | June 30, 2014 | |||||||||||||
Proportion of | Expected Rate | Proportion of | Expected Rate | |||||||||||
Fair Value | of Return | Fair Value | of Return | |||||||||||
Equity securities | 50 | % | 8 | % | 55 | % | 8 | % | ||||||
Debt securities | 38 | % | 2 | % | 36 | % | 2 | % | ||||||
Other | 12 | % | 6 | % | 9 | % | 5 | % | ||||||
| | | | | | | | | | | | | | |
Combined | 100 | % | 5.5 | % | 100 | % | 5.7 | % | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
The defined benefit plans' assets are invested in a range of pooled investment funds that provide access to a diverse range of asset classes. The investment objective is to maximize the investment return over the long term without exposing the fund to an unnecessary level of risk. Within this objective, it is recognized that benefits will be secured by the purchase of annuities at the time of employee retirement. | ||||||||||||||
The benchmark is to hold assets in both equity and debt securities. The proportion in each investment class is not mandated and is allowed to fluctuate with market movements. The equity holdings are maintained in balanced funds under the control of investment managers. | ||||||||||||||
Day-to-day equities selection decisions are delegated to investment managers, although these are monitored against performance and risk targets. Due to the nature of the pooled funds, there are no significant holdings in any single company (greater than 5% of the total assets). The investment strategy is reviewed on a regular basis, based on the results of third-party liability studies. | ||||||||||||||
Projected Benefit Payments | ||||||||||||||
The following table reflects estimated benefits payments, based upon the same assumptions used to measure the benefit obligation and net pension cost, as of June 30, 2014 (in thousands): | ||||||||||||||
Pension Benefits | ||||||||||||||
July 1, 2014 to June 30, 2015 | $ | 162 | ||||||||||||
July 1, 2015 to June 30, 2016 | 176 | |||||||||||||
July 1, 2016 to June 30, 2017 | 208 | |||||||||||||
July 1, 2017 to June 30, 2018 | 263 | |||||||||||||
July 1, 2018 to June 30, 2019 | 820 | |||||||||||||
July 1, 2019 to June 30, 2024 | 6,377 | |||||||||||||
Company Contribution | ||||||||||||||
As of June 30, 2014, the Company's weighted average contribution rate is 1% of pensionable salaries. If Company contributions continue at the current rate, the estimated total Company contributions for fiscal 2015 will be approximately $0.1 million. | ||||||||||||||
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||
13. SEGMENT INFORMATION | ||||||||||||||||||||
The Company has determined that it operates in three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and anesthesia systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). The Company also has a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses; expenses related to stock issuances; and legal and audit and other professional service fees not allocated to product segments. Both the Security and Healthcare divisions comprise primarily end-product businesses whereas the businesses of the Optoelectronics and Manufacturing division primarily supply components and subsystems to original equipment manufacturers, including to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Summary of Significant Accounting Policies. | ||||||||||||||||||||
The following tables present the operations and identifiable assets by industry segment (in thousands): | ||||||||||||||||||||
2012 | ||||||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Eliminations | Consolidated | |||||||||||||||
Division | Division | and | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||
Division | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External customer revenue | $ | 391,808 | $ | 235,548 | $ | 165,634 | $ | — | $ | — | $ | 792,990 | ||||||||
Revenue between product segments | — | — | 45,169 | — | (45,169 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total revenues | $ | 391,808 | $ | 235,548 | $ | 210,803 | $ | — | (45,169 | ) | $ | 792,990 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | $ | 30,552 | $ | 28,330 | $ | 18,743 | $ | (11,887 | ) | $ | 202 | $ | 65,940 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segments assets | $ | 351,668 | $ | 162,583 | $ | 132,281 | $ | 109,405 | $ | (6,041 | ) | $ | 749,896 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | $ | 56,848 | $ | 5,158 | $ | 4,552 | $ | 1,932 | $ | — | $ | 68,490 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | $ | 7,819 | $ | 7,640 | $ | 3,876 | $ | 864 | $ | — | $ | 20,199 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2013 | ||||||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Eliminations | Consolidated | |||||||||||||||
Division | Division | and | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||
Division | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External customer revenue | $ | 372,164 | $ | 231,331 | $ | 198,552 | $ | — | $ | — | $ | 802,047 | ||||||||
Revenue between product segments | — | — | 40,548 | — | (40,548 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total revenues | $ | 372,164 | $ | 231,331 | $ | 239,100 | $ | — | (40,548 | ) | $ | 802,047 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | $ | 43,748 | $ | 25,224 | $ | 18,213 | $ | (14,002 | ) | $ | 1,255 | $ | 74,438 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segments assets | $ | 519,081 | $ | 192,994 | $ | 156,784 | $ | 79,372 | $ | 4,508 | $ | 952,739 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | $ | 131,314 | $ | 8,198 | $ | 3,185 | $ | 14,670 | $ | — | $ | 157,367 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | $ | 15,412 | $ | 6,674 | $ | 4,169 | $ | 1,252 | $ | — | $ | 27,507 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2014 | ||||||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Eliminations | Consolidated | |||||||||||||||
Division | Division | and | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||
Division | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External customer revenue | $ | 440,439 | $ | 222,313 | $ | 243,990 | $ | — | $ | — | $ | 906,742 | ||||||||
Revenue between product segments | — | — | 40,506 | — | (40,506 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total revenues | $ | 440,439 | $ | 222,313 | $ | 284,496 | $ | — | (40,506 | ) | $ | 906,742 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | $ | 59,501 | $ | 18,495 | $ | 14,663 | $ | (11,497 | ) | $ | 133 | $ | 81,295 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segments assets | $ | 535,306 | $ | 190,612 | $ | 169,084 | $ | 133,836 | $ | (4,652 | ) | $ | 1,024,186 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | $ | 38,066 | $ | 6,718 | $ | 2,801 | $ | 7,013 | $ | — | $ | 54,598 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | $ | 40,573 | $ | 7,289 | $ | 4,971 | $ | 1,406 | $ | — | $ | 54,239 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
The following tables present the revenues and identifiable assets by geographical area (in thousands): | ||||||||||||||||||||
2012 | ||||||||||||||||||||
External | Intersegment | Total | Long lived | Long lived | ||||||||||||||||
revenues | revenues | Consolidated | tangible assets | assets | ||||||||||||||||
Geographic region: | ||||||||||||||||||||
United States | $ | 505,946 | $ | 10,446 | $ | 516,392 | $ | 49,717 | $ | 149,911 | ||||||||||
Mexico | 16,866 | — | 16,866 | 59,200 | 59,200 | |||||||||||||||
Other Americas | 19,366 | — | 19,366 | 11,285 | 11,865 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total Americas | 542,178 | 10,446 | 552,624 | 120,202 | 220,976 | |||||||||||||||
United Kingdom | 132,579 | — | 132,579 | 14,320 | 27,835 | |||||||||||||||
Other EMEA (1) | 20,561 | — | 20,561 | 821 | 4,984 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total EMEA | 153,140 | — | 153,140 | 15,141 | 32,819 | |||||||||||||||
APAC (2) | 97,672 | 34,723 | 132,395 | 13,456 | 14,894 | |||||||||||||||
Eliminations | — | (45,169 | ) | (45,169 | ) | N/A | N/A | |||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | 792,990 | $ | — | $ | 792,990 | $ | 148,799 | $ | 268,689 | ||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
2013 | ||||||||||||||||||||
External | Intersegment | Total | Long lived | Long lived | ||||||||||||||||
revenues | revenues | Consolidated | tangible assets | assets | ||||||||||||||||
Geographic region: | ||||||||||||||||||||
United States | $ | 441,376 | $ | 15,598 | $ | 456,974 | $ | 35,726 | $ | 132,570 | ||||||||||
Mexico | 78,695 | — | 78,695 | 201,469 | 201,469 | |||||||||||||||
Other Americas | 19,674 | — | 19,674 | 10,057 | 11,395 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total Americas | 539,745 | 15,598 | 555,343 | 247,252 | 345,434 | |||||||||||||||
United Kingdom | 146,261 | — | 146,261 | 10,816 | 26,183 | |||||||||||||||
Other EMEA (1) | 17,673 | — | 17,673 | 699 | 5,033 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total EMEA | 163,934 | — | 163,934 | 11,515 | 31,216 | |||||||||||||||
APAC (2) | 98,368 | 24,950 | 123,318 | 13,984 | 16,448 | |||||||||||||||
Eliminations | — | (40,548 | ) | (40,548 | ) | N/A | N/A | |||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | 802,047 | $ | — | $ | 802,047 | $ | 272,751 | $ | 393,098 | ||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
2014 | ||||||||||||||||||||
External | Intersegment | Total | Long lived | Long lived | ||||||||||||||||
revenues | revenues | Consolidated | tangible assets | assets | ||||||||||||||||
Geographic region: | ||||||||||||||||||||
United States | $ | 451,503 | $ | 7,303 | $ | 458,806 | $ | 42,933 | $ | 144,239 | ||||||||||
Mexico | 130,330 | — | 130,330 | 191,512 | 191,512 | |||||||||||||||
Other Americas | 20,914 | — | 20,914 | 7,059 | 7,059 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total Americas | 602,747 | 7,303 | 610,050 | 241,504 | 342,810 | |||||||||||||||
United Kingdom | 151,962 | — | 151,962 | 24,257 | 52,110 | |||||||||||||||
Other EMEA (1) | 18,543 | — | 18,543 | 5,807 | 10,317 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total EMEA | 170,505 | — | 170,505 | 30,064 | 62,427 | |||||||||||||||
APAC (2) | 133,490 | 33,203 | 166,693 | 15,657 | 18,210 | |||||||||||||||
Eliminations | — | (40,506 | ) | (40,506 | ) | N/A | N/A | |||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | 906,742 | $ | — | $ | 906,742 | $ | 287,225 | $ | 423,447 | ||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
-1 | ||||||||||||||||||||
Europe, Middle East and Africa | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||
Pursuant to Accounting Standards Codification 280 "Segment Reporting," external revenues are attributed to individual countries based upon the location of the Company's selling entity. | ||||||||||||||||||||
SCHEDULE_IIVALUATION_AND_QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | ' | ||||||||||||||||
SCHEDULE II—VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||
(in thousands) | |||||||||||||||||
Additions | |||||||||||||||||
Description | Balance at | Charged | Charged | Deductions- | Balance at | ||||||||||||
beginning | to costs | in other | Write-offs | end of | |||||||||||||
of period | and expenses | accounts | period | ||||||||||||||
Balance for doubtful accounts: | |||||||||||||||||
Year ended June 30, 2012 | $ | 5,793 | $ | 582 | $ | — | $ | 1,321 | $ | 5,054 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Year ended June 30, 2013 | $ | 5,054 | $ | 3,563 | $ | — | $ | 1,340 | $ | 7,277 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Year ended June 30, 2014 | $ | 7,277 | $ | 193 | $ | — | $ | 1,779 | $ | 5,691 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Balance for warranty reserve: | |||||||||||||||||
Year ended June 30, 2012 | $ | 14,530 | $ | 8,620 | $ | — | $ | 5,588 | $ | 17,562 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Year ended June 30, 2013 | $ | 17,562 | $ | 1,948 | $ | — | $ | 6,620 | $ | 12,890 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Year ended June 30, 2014 | $ | 12,890 | $ | 5,573 | $ | — | $ | 6,540 | $ | 11,923 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||
Description of Business | ' | |||||||||||||||||||
Description of Business—OSI Systems, Inc., together with its subsidiaries (the "Company"), is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. The Company sells its products in diversified markets, including homeland security, healthcare, defense and aerospace. | ||||||||||||||||||||
The Company has three reporting segments: (i) Security, providing security inspection systems, turnkey security screening solutions and related services; (ii) Healthcare, providing patient monitoring, diagnostic cardiology and anesthesia systems, and related services and (iii) Optoelectronics and Manufacturing, providing specialized electronic components and electronic manufacturing services for the Security and Healthcare divisions as well as to external original equipment manufacturing clients for applications in the defense, aerospace, medical and industrial markets, among others. | ||||||||||||||||||||
Through its Security division, the Company provides security screening, threat detection and non-intrusive inspection products and related services globally. These products fall into the following categories: baggage and parcel inspection systems; cargo and vehicle inspection systems; hold (checked) baggage screening systems; people screening; radiation detection; and trace detection. In addition to these products, the Company provides site design, installation, training and technical support services to its customers. The Company also provides turnkey security screening solutions, which can include the construction, staffing and long-term operation of security screening checkpoints for its customers. | ||||||||||||||||||||
Through its Healthcare division, the Company designs, manufactures, markets and services patient monitoring, diagnostic cardiology and anesthesia delivery and ventilation systems, and related supplies and accessories worldwide. These products are used by care providers in critical care, emergency and perioperative areas within hospitals as well as physicians' offices, medical clinics and ambulatory surgery centers. | ||||||||||||||||||||
Through its Optoelectronics and Manufacturing division, the Company designs, manufactures and markets optoelectronic devices and provides electronics manufacturing services worldwide for use in a broad range of applications, including aerospace and defense electronics, security and inspection systems, medical imaging and diagnostic products, telecommunications, computer peripherals, industrial automation systems, automotive diagnostic systems, gaming systems and consumer products. This division provides products and services to original equipment manufacturers and end users as well as to the Company's own Security and Healthcare divisions. | ||||||||||||||||||||
Consolidation | ' | |||||||||||||||||||
Consolidation—The Consolidated Financial Statements include the accounts of OSI Systems, Inc. and its wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Investments in joint ventures over which the Company has significant influence but does not have voting control are accounted for using the equity method. Investments over which the Company does not have significant influence are accounted for using the cost method. | ||||||||||||||||||||
Use of Estimates | ' | |||||||||||||||||||
Use of Estimates—The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. | ||||||||||||||||||||
Reclassifications | ' | |||||||||||||||||||
Reclassifications—Certain reclassifications have been made to prior year amounts within the Consolidated Balance Sheet and Consolidated Statement of Cash Flows to conform to the current year's presentation. | ||||||||||||||||||||
Cash Equivalents | ' | |||||||||||||||||||
Cash Equivalents—The Company considers all highly liquid investments purchased with maturities of approximately three months or less as of the acquisition date to be cash equivalents. | ||||||||||||||||||||
Accounts Receivable | ' | |||||||||||||||||||
Accounts Receivable—Billed receivables include outstanding trade receivables. Unbilled receivables primarily include earned but unbilled revenue. Allowance for doubtful accounts involves estimates based on management's judgment, review of individual receivables and analysis of historical bad debts. The Company monitors collections and payments from its customers and maintains allowances for doubtful accounts for estimated losses resulting from the inability of its customers to make required payments. | ||||||||||||||||||||
Components of accounts receivable consisted of: | ||||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Billed receivables | $ | 179,458 | $ | 189,489 | ||||||||||||||||
Unbilled receivables | 34,636 | 1,975 | ||||||||||||||||||
Less allowance for doubtful accounts | (7,277 | ) | (5,691 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 206,817 | $ | 185,773 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Inventories | ' | |||||||||||||||||||
Inventories—Inventories are generally stated at the lower of cost (first-in, first-out) or market. The Company writes down inventory for slow-moving and obsolete inventory based on assessments of future demands, market conditions and customers who may be experiencing financial difficulties. If these factors are less favorable than those projected, additional inventory write-downs may be required. | ||||||||||||||||||||
Property and Equipment | ' | |||||||||||||||||||
Property and Equipment—Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are computed using the straight-line method over the estimated useful lives of the assets taking into consideration any salvage value. Amortization of leasehold improvements is calculated on the straight-line basis over the shorter of the useful life of the asset or the lease term. Leased capital assets are included in property and equipment. Amortization of property and equipment under capital leases is included with depreciation expense. | ||||||||||||||||||||
Goodwill and Other Intangible Assets and Valuation of Long-Lived Assets | ' | |||||||||||||||||||
Goodwill and Other Intangible Assets and Valuation of Long-Lived Assets—Goodwill represents the excess purchase price of net tangible and intangible assets acquired in business combinations over their estimated fair value. Goodwill is allocated to the Company's segments based on the nature of the product line of the acquired business. The carrying value of goodwill is not amortized, but is annually tested for impairment during the Company's second quarter and more often if there is an indicator of impairment. Intangible assets other than goodwill are amortized over their useful lives unless these lives are determined to be indefinite. The Company assesses qualitative factors of each of its reporting units to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Such assessments indicated that it is not more likely than not that the fair value of each reporting unit is less than its carrying amount, including goodwill. Thus, the Company has determined that it is not necessary to proceed with the two-step goodwill impairment test. There was no goodwill impairment for each of three fiscal years ended June 30, 2014. | ||||||||||||||||||||
The Company evaluates long-lived assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment does exist, the Company measures the impairment loss and records it based on the discounted estimate of future cash flows. In estimating future cash flows, the Company groups assets at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows from other asset groups. The Company's estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors. | ||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Income Taxes—Deferred income taxes are provided for temporary differences between the financial statement and income tax basis of the Company's assets and liabilities, based on enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Income tax accounting standards prescribe a two-step process for the financial statement measurement and recognition of a tax position taken or expected to be taken in a tax return. The first step involves the determination of whether it is more likely than not (greater than 50 percent likelihood) that a tax position will be sustained upon examination, based on the technical merits of the position. The second step requires that any tax position that meets the more-likely-than-not recognition threshold be measured and recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The income tax accounting standards also provide guidance on the accounting for related interest and penalties, financial statement classification and disclosure. The cumulative effect of applying these standards is to be reported as an adjustment to the opening balance of retained earnings in the period of adoption. See Note 8 for additional information. | ||||||||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||||||
Fair Value of Financial Instruments—The Company's financial instruments consist primarily of cash, marketable securities, accounts receivable, accounts payable and debt instruments. The carrying values of financial instruments, other than long-term debt instruments, are representative of their fair values due to their short-term maturities. The carrying values of the Company's long-term debt instruments are considered to approximate their fair values because the interest rates of these instruments are variable or comparable to current rates offered to the Company. | ||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. "Level 1" category includes assets and liabilities at the quoted prices in active markets for identical assets and liabilities. "Level 2" category includes assets and liabilities from observable inputs other than quoted market prices. "Level 3" category includes assets and liabilities whose valuation techniques are unobservable and significant to the fair value measurement. There were no assets or liabilities where "Level 3" valuation techniques were used, and there were no assets and liabilities measured at fair value on a non-recurring basis. | ||||||||||||||||||||
The following is a summary of the investments carried at fair value (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | June 30, | Level 1 | Level 2 | June 30, | |||||||||||||||
2013 | 2014 | |||||||||||||||||||
Equity securities | 316 | — | 316 | 914 | — | 914 | ||||||||||||||
Insurance company contracts | — | 13,914 | 13,914 | — | 17,383 | 17,383 | ||||||||||||||
Interest rate contract | — | 66 | 66 | — | 28 | 28 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 316 | $ | 13,980 | $ | 14,296 | $ | 914 | $ | 17,411 | $ | 18,325 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Derivative Instruments and Hedging Activity | ' | |||||||||||||||||||
Derivative Instruments and Hedging Activity—The Company's use of derivatives consists of an interest rate swap agreement. The interest rate swap agreement was entered into to improve the predictability of cash flows from interest payments related to variable, LIBOR-based debt for the duration of the term loan. The interest rate swap matures in October 2019. The interest rate swap is considered an effective cash flow hedge, and, as a result, the net gains or losses on such instrument were reported as a component of Other comprehensive income in the Consolidated Financial Statements and are reclassified as net income when the hedge transaction settles. | ||||||||||||||||||||
Revenue Recognition | ' | |||||||||||||||||||
Revenue Recognition—The Company recognizes revenue from sales of products upon shipment when title and risk of loss passes, and when terms are fixed and collection is probable. Revenue from services includes after-market services, installation and implementation of products, and turnkey security screening services. The portion of revenue for the sale attributable to installation is deferred and recognized when the installation service is provided. In an instance where terms of sale include subjective customer acceptance criteria, revenue is deferred until the Company has achieved the acceptance criteria. Concurrent with the shipment of the product, the Company accrues estimated product return reserves and warranty expenses. Critical judgments made by management related to revenue recognition include the determination of whether or not customer acceptance criteria are perfunctory or inconsequential. The determination of whether or not customer acceptance terms are perfunctory or inconsequential impacts the amount and timing of revenue recognized. Critical judgments also include estimates of warranty reserves, which are established based on historical experience and knowledge of the product under warranty. | ||||||||||||||||||||
Revenue from turnkey services agreements is included in revenue from services. In certain agreements, revenue is recognized based upon proportional performance, measured by the actual number of hours incurred divided by the total estimated number of hours for the project. The impact of changes in the estimated hours to service the agreement is reflected in the period during which the change becomes known. Deferred revenue for such agreements arises when payments from customers are received in advance of revenue recognition. | ||||||||||||||||||||
Revenues from out of warranty service maintenance contracts are recognized ratably over the term of such contract. For services not derived from specific maintenance contracts, revenues are recognized as the services are performed. Deferred revenue for such services arises from payments received from customers for services not yet performed. On occasion, the Company receives advances from customers that are amortized against future customer payments pursuant to the underlying agreements. Such advances are classified in the consolidated balance sheets as either a current or long-term liability dependent upon when the Company estimates the corresponding amortization to occur. | ||||||||||||||||||||
Freight | ' | |||||||||||||||||||
Freight—The Company records shipping and handling fees it charges to its customers as revenue and related costs as cost of goods sold. | ||||||||||||||||||||
Research and Development Costs | ' | |||||||||||||||||||
Research and Development Costs—Research and development costs are those costs related to the development of a new product, process or service, or significant improvement to an existing product, process or service. Such costs are charged to operations as incurred. | ||||||||||||||||||||
Stock-Based Compensation | ' | |||||||||||||||||||
Stock-Based Compensation—Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the employee's requisite service period for all stock-based awards granted or modified. Certain restricted awards vest based on the achievement of pre-established performance goals. The fair value of performance-based awards is estimated at the date of grant and the probability that the specified performance criteria will be met, adjusted for estimated forfeitures. Each quarter the Company updates the assessment of the probability that the specified performance criteria will be achieved and adjusts the estimate of the fair value of the performance-based awards if necessary. The Company amortizes the fair value of performance-based awards over the requisite service period for each separately vesting tranche of the award. See Note 7 to the Consolidated Financial Statements. | ||||||||||||||||||||
Impairment, Restructuring and Other Charges | ' | |||||||||||||||||||
Impairment, Restructuring and Other Charges—The Company consolidates processes and facilities of its subsidiaries to better align with demand by its customers and thereby improve its operational efficiencies. The associated charges, and other non-recurring charges and impairment of assets, are recognized as impairment, restructuring and other charges in the Consolidated Financial Statements. See Note 5 for additional information about these restructuring charges. | ||||||||||||||||||||
Credit Risk and Concentration | ' | |||||||||||||||||||
Credit Risk and Concentration—Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. The Company restricts investments in cash equivalents to financial institutions with high credit standing. Credit risk on accounts receivable is minimized as a result of the large and diverse nature of the Company's worldwide customer base. As of June 30, 2013, one customer accounted for 16% of accounts receivable; while a different customer accounted for 13% of accounts receivable as of June 30, 2014. During fiscal 2012, one customer accounted for 12% of revenues, while a different customer accounted for 14% of revenues during fiscal 2014. There were no customers accounting for more than 10% of revenues during fiscal 2013. The Company performs ongoing credit evaluations of its customers' financial condition and maintains allowances for potential credit losses. | ||||||||||||||||||||
The Company has a key single-source vendor to supply an integral component in its cargo product lines in the Security division. The Company also relies primarily on a vendor that provides key components to the Optoelectronics and Manufacturing division. While management believes that relying on key vendors improves the efficiency and reliability of business operations, relying on any one vendor for a significant aspect of business can have a significant negative impact on revenue and profitability if that vendor fails to perform at acceptable service levels for any reason, including financial difficulties of the vendor. | ||||||||||||||||||||
Foreign Currency Translation | ' | |||||||||||||||||||
Foreign Currency Translation—The Company transacts business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country's currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using year-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders' equity as a component of accumulated other comprehensive income in the accompanying consolidated balance sheets. Transaction gains and losses, which were included in the Company's consolidated statement of operations, amounted to a gain (loss) of approximately $0.4 million, $1.8 million and $(1.8) million for the fiscal years ended June 30, 2012, 2013 and 2014, respectively. | ||||||||||||||||||||
Business Combinations | ' | |||||||||||||||||||
Business Combinations—During the normal course of business the Company makes acquisitions. In the event that an individual acquisition (or an aggregate of acquisitions) is material, appropriate disclosure of such acquisition activity is provided. The acquisition method of accounting for business combinations requires the Company to use significant estimates and assumptions, including fair value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for a business combination) in a manner that is generally similar to the previous purchase method of accounting. | ||||||||||||||||||||
Under the acquisition method of accounting the Company recognizes separately from goodwill the identifiable assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value. The Company measures goodwill as of the acquisition date as the excess of consideration transferred, which the Company also measures at fair value, over the net of the acquisition date amounts of the identifiable assets acquired and liabilities assumed. Costs that the Company incurs to complete the business combination such as investment banking, legal and other professional fees are not considered part of consideration and the Company charges them to general and administrative expense as they are incurred. Under the acquisition method the Company also accounts for acquired company restructuring activities that the Company initiates separately from the business combination. Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement period, the Company reports provisional amounts in its financial statements. During the measurement period, the Company adjusts the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments to our financial statements. The Company applies those measurement period adjustments that the Company determines to be significant retrospectively to comparative information in its financial statements, including adjustments to depreciation and amortization expense. | ||||||||||||||||||||
Earnings per Share | ' | |||||||||||||||||||
Earnings per Share—Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income available to common stockholders by the sum of the weighted average number of common and dilutive potential common shares outstanding. Potential common shares consist of the shares issuable upon the exercise of stock options under the treasury stock method. | ||||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the fiscal years ended June 30 (in thousands, except earnings per share data): | ||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Net income available to common stockholders | $ | 45,548 | $ | 44,135 | $ | 47,894 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Weighted average shares outstanding—basic | 19,732 | 19,956 | 19,952 | |||||||||||||||||
Dilutive effect of stock options | 598 | 612 | 635 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Weighted average of shares outstanding—diluted | 20,330 | 20,568 | 20,587 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Basic earnings per share | $ | 2.31 | $ | 2.21 | $ | 2.4 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Diluted earnings per share | $ | 2.24 | $ | 2.15 | $ | 2.33 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Provision for Warranties | ' | |||||||||||||||||||
Provision for Warranties—The Company offers its customers warranties on many of the products that it sells. These warranties typically provide for repairs and maintenance of the products if problems arise during a specified time period after original shipment. Concurrent with the sale of products, the Company records a provision for estimated warranty expenses with a corresponding increase in cost of goods sold. The Company periodically adjusts this provision based on historical experience and anticipated expenses. The Company charges actual expenses of repairs under warranty, including parts and labor, to this provision when incurred. | ||||||||||||||||||||
Provision for | ||||||||||||||||||||
Warranties | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance on June 30, 2011 | $ | 14,530 | ||||||||||||||||||
Warranty claims provision | 8,620 | |||||||||||||||||||
Settlements made | (5,588 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2012 | $ | 17,562 | ||||||||||||||||||
Warranty claims provision | 1,948 | |||||||||||||||||||
Settlements made | (6,620 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2013 | $ | 12,890 | ||||||||||||||||||
Warranty claims provision | 5,573 | |||||||||||||||||||
Settlements made | (6,540 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2014 | $ | 11,923 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
Recent Accounting Updates Not Yet Adopted | ' | |||||||||||||||||||
Recent Accounting Updates Not Yet Adopted—In May 2014, the Financial Accounting Standards Board issued an accounting standards update amending revenue recognition requirements for multiple-deliverable revenue arrangements. This update provides guidance on how revenue is recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The update is effective for annual reporting periods after December 15, 2016 and for interim reporting periods within that reporting period. Early adoption is not permitted. The Company has not yet adopted this update and is currently evaluating the impact it may have on its financial condition and results of operations. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' | |||||||||||||||||||
Components of accounts receivable | ' | |||||||||||||||||||
June 30, | ||||||||||||||||||||
2013 | 2014 | |||||||||||||||||||
Billed receivables | $ | 179,458 | $ | 189,489 | ||||||||||||||||
Unbilled receivables | 34,636 | 1,975 | ||||||||||||||||||
Less allowance for doubtful accounts | (7,277 | ) | (5,691 | ) | ||||||||||||||||
| | | | | | | | |||||||||||||
Total | $ | 206,817 | $ | 185,773 | ||||||||||||||||
| | | | | | | | |||||||||||||
| | | | | | | | |||||||||||||
Summary of the investments carried at fair value | ' | |||||||||||||||||||
The following is a summary of the investments carried at fair value (in thousands): | ||||||||||||||||||||
Level 1 | Level 2 | June 30, | Level 1 | Level 2 | June 30, | |||||||||||||||
2013 | 2014 | |||||||||||||||||||
Equity securities | 316 | — | 316 | 914 | — | 914 | ||||||||||||||
Insurance company contracts | — | 13,914 | 13,914 | — | 17,383 | 17,383 | ||||||||||||||
Interest rate contract | — | 66 | 66 | — | 28 | 28 | ||||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total | $ | 316 | $ | 13,980 | $ | 14,296 | $ | 914 | $ | 17,411 | $ | 18,325 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of computation of basic and diluted earnings per share | ' | |||||||||||||||||||
The following table sets forth the computation of basic and diluted earnings per share for the fiscal years ended June 30 (in thousands, except earnings per share data): | ||||||||||||||||||||
2012 | 2013 | 2014 | ||||||||||||||||||
Net income available to common stockholders | $ | 45,548 | $ | 44,135 | $ | 47,894 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Weighted average shares outstanding—basic | 19,732 | 19,956 | 19,952 | |||||||||||||||||
Dilutive effect of stock options | 598 | 612 | 635 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
Weighted average of shares outstanding—diluted | 20,330 | 20,568 | 20,587 | |||||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Basic earnings per share | $ | 2.31 | $ | 2.21 | $ | 2.4 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Diluted earnings per share | $ | 2.24 | $ | 2.15 | $ | 2.33 | ||||||||||||||
| | | | | | | | | | | ||||||||||
| | | | | | | | | | | ||||||||||
Schedule of provision for warranties | ' | |||||||||||||||||||
Provision for | ||||||||||||||||||||
Warranties | ||||||||||||||||||||
(in thousands) | ||||||||||||||||||||
Balance on June 30, 2011 | $ | 14,530 | ||||||||||||||||||
Warranty claims provision | 8,620 | |||||||||||||||||||
Settlements made | (5,588 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2012 | $ | 17,562 | ||||||||||||||||||
Warranty claims provision | 1,948 | |||||||||||||||||||
Settlements made | (6,620 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2013 | $ | 12,890 | ||||||||||||||||||
Warranty claims provision | 5,573 | |||||||||||||||||||
Settlements made | (6,540 | ) | ||||||||||||||||||
| | | | | ||||||||||||||||
Balance on June 30, 2014 | $ | 11,923 | ||||||||||||||||||
| | | | | ||||||||||||||||
| | | | | ||||||||||||||||
INVENTORIES_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||
Schedule of property and equipment | ' | |||||||||
Property and equipment consisted of the following (in thousands): | ||||||||||
June 30, | ||||||||||
Estimated | ||||||||||
Useful | ||||||||||
Lives | 2013 | 2014 | ||||||||
Land | N/A | $ | 8,365 | $ | 13,651 | |||||
Buildings and improvements | 5-40 years | 102,187 | 163,952 | |||||||
Leasehold improvements | 1-25 years | 9,302 | 9,744 | |||||||
Equipment and tooling | 3-10 years | 135,437 | 154,367 | |||||||
Furniture and fixtures | 3-13 years | 3,551 | 4,017 | |||||||
Computer equipment | 3-5 years | 14,309 | 17,466 | |||||||
Computer software | 3-10 years | 15,209 | 15,670 | |||||||
Construction in process | N/A | 48,713 | 12,650 | |||||||
| | | | | | | | | | |
Total | 337,073 | 391,517 | ||||||||
Less accumulated depreciation and amortization | (88,044 | ) | (131,038 | ) | ||||||
| | | | | | | | | | |
Property and equipment, net | $ | 249,029 | $ | 260,479 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
PROPERTY_AND_EQUIPMENT_Tables
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | |||||||||
Jun. 30, 2014 | ||||||||||
PROPERTY AND EQUIPMENT | ' | |||||||||
Schedule of property and equipment | ' | |||||||||
Property and equipment consisted of the following (in thousands): | ||||||||||
June 30, | ||||||||||
Estimated | ||||||||||
Useful | ||||||||||
Lives | 2013 | 2014 | ||||||||
Land | N/A | $ | 8,365 | $ | 13,651 | |||||
Buildings and improvements | 5-40 years | 102,187 | 163,952 | |||||||
Leasehold improvements | 1-25 years | 9,302 | 9,744 | |||||||
Equipment and tooling | 3-10 years | 135,437 | 154,367 | |||||||
Furniture and fixtures | 3-13 years | 3,551 | 4,017 | |||||||
Computer equipment | 3-5 years | 14,309 | 17,466 | |||||||
Computer software | 3-10 years | 15,209 | 15,670 | |||||||
Construction in process | N/A | 48,713 | 12,650 | |||||||
| | | | | | | | | | |
Total | 337,073 | 391,517 | ||||||||
Less accumulated depreciation and amortization | (88,044 | ) | (131,038 | ) | ||||||
| | | | | | | | | | |
Property and equipment, net | $ | 249,029 | $ | 260,479 | ||||||
| | | | | | | | | | |
| | | | | | | | | | |
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | ' | |||||||||||||||||||||
Schedule of carrying amount of goodwill | ' | |||||||||||||||||||||
The changes in the carrying amount of goodwill for fiscal 2013 and 2014 are as follows (in thousands): | ||||||||||||||||||||||
Security | Healthcare | Optoelectronics | Consolidated | |||||||||||||||||||
Division | Division | and | ||||||||||||||||||||
Manufacturing | ||||||||||||||||||||||
Division | ||||||||||||||||||||||
Balance as of June 30, 2012 | $ | 27,583 | $ | 35,887 | $ | 18,679 | $ | 82,149 | ||||||||||||||
Goodwill acquired or adjusted during the period | 798 | — | 701 | 1,499 | ||||||||||||||||||
Foreign currency translation adjustment | 165 | (60 | ) | (10 | ) | 95 | ||||||||||||||||
| | | | | | | | | | | | | | |||||||||
Balance as of June 30, 2013 | $ | 28,546 | $ | 35,827 | $ | 19,370 | $ | 83,743 | ||||||||||||||
Goodwill acquired or adjusted during the period | 784 | 1,018 | 5,730 | 7,532 | ||||||||||||||||||
Foreign currency translation adjustment | 177 | 392 | 763 | 1,332 | ||||||||||||||||||
| | | | | | | | | | | | | | |||||||||
Balance as of June 30, 2014 | $ | 29,507 | $ | 37,237 | $ | 25,863 | $ | 92,607 | ||||||||||||||
| | | | | | | | | | | | | | |||||||||
| | | | | | | | | | | | | | |||||||||
Schedule of intangible assets | ' | |||||||||||||||||||||
Intangible assets subject to amortization consisted of the following (in thousands): | ||||||||||||||||||||||
June 30, 2013 | June 30, 2014 | |||||||||||||||||||||
Weighted | Gross | Accumulated | Intangibles | Gross | Accumulated | Intangibles | ||||||||||||||||
Average | Carrying | Amortization | Net | Carrying | Amortization | Net | ||||||||||||||||
Lives | Value | Value | ||||||||||||||||||||
Amortizable assets: | ||||||||||||||||||||||
Software development costs | 7 years | $ | 17,350 | $ | 5,396 | $ | 11,954 | $ | 21,165 | $ | 6,716 | $ | 14,449 | |||||||||
Patents | 20 years | 5,400 | 635 | 4,765 | 6,566 | 765 | 5,801 | |||||||||||||||
Core technology | 10 years | 2,058 | 1,728 | 330 | 2,289 | 2,150 | 139 | |||||||||||||||
Developed technology | 11 years | 20,002 | 14,620 | 5,382 | 18,308 | 11,559 | 6,749 | |||||||||||||||
Customer relationships/backlog | 7 years | 9,178 | 5,624 | 3,554 | 11,419 | 7,011 | 4,408 | |||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Total amortizable assets | 53,988 | 28,003 | 25,985 | 59,747 | 28,201 | 31,546 | ||||||||||||||||
Non-amortizable assets: | ||||||||||||||||||||||
Trademarks | 10,618 | — | 10,618 | 12,069 | — | 12,069 | ||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
Total intangible assets | $ | 64,606 | $ | 28,003 | $ | 36,603 | $ | 71,816 | $ | 28,201 | $ | 43,615 | ||||||||||
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Schedule of estimated future amortization expense | ' | |||||||||||||||||||||
At June 30, 2014, estimated future amortization expense was as follows (in thousands): | ||||||||||||||||||||||
2015 | $ | 3,019 | ||||||||||||||||||||
2016 | 2,902 | |||||||||||||||||||||
2017 | 3,073 | |||||||||||||||||||||
2018 | 3,059 | |||||||||||||||||||||
2019 | 2,906 | |||||||||||||||||||||
Thereafter, including assets that have not yet begun to be amortized | 16,587 | |||||||||||||||||||||
| | | | | ||||||||||||||||||
Total | $ | 31,546 | ||||||||||||||||||||
| | | | | ||||||||||||||||||
| | | | | ||||||||||||||||||
IMPAIRMENT_RESTRUCTURING_AND_O1
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES | ' | ||||||||||||||||
Summary of the impairment, restructuring and other charges | ' | ||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Consolidated | |||||||||||||
Division | Division | and | |||||||||||||||
Manufacturing | |||||||||||||||||
Division | |||||||||||||||||
Accrued balance as of June 30, 2011 | $ | 465 | $ | 179 | $ | 104 | $ | 28 | $ | 776 | |||||||
Expensed during the year | |||||||||||||||||
Facility closure | — | — | 233 | — | 233 | ||||||||||||
Employee termination costs | 290 | 170 | 698 | — | 1,158 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total expensed during year | 290 | 170 | 931 | — | 1,391 | ||||||||||||
Paid or incurred during the year | 458 | 179 | 1,029 | 19 | 1,685 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Accrued balance as of June 30, 2012 | $ | 297 | $ | 170 | $ | 6 | $ | 9 | $ | 482 | |||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expensed during the year | |||||||||||||||||
Facility closure | — | 2,309 | 344 | — | 2,653 | ||||||||||||
Employee termination costs | 781 | 57 | 246 | — | 1,084 | ||||||||||||
Charges related to contract settlement | 3,155 | — | — | — | 3,155 | ||||||||||||
Impairment of software development costs | 1,095 | — | — | — | 1,095 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total expensed during the year | 5,031 | 2,366 | 590 | — | 7,987 | ||||||||||||
Paid or incurred during the year | 4,285 | 897 | 530 | 9 | 5,721 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Accrued balance as of June 30, 2013 | $ | 1,043 | $ | 1,639 | $ | 66 | — | $ | 2,748 | ||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Expensed during the year | |||||||||||||||||
Facility closure / consolidations (1) | — | 2,009 | 763 | — | 2,772 | ||||||||||||
Employee termination costs (2) | 886 | — | 669 | — | 1,555 | ||||||||||||
Charges related to government contract issues (3) | 5,798 | — | — | — | 5,798 | ||||||||||||
Charges related to class action litigation | — | — | — | 594 | 594 | ||||||||||||
Debt restructuring (4) | — | — | — | 1,325 | 1,325 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Total expensed during the year | 6,684 | 2,009 | 1,432 | 1,919 | 12,044 | ||||||||||||
Paid or incurred during the year | 5,912 | 2,598 | 1,430 | 1,919 | 11,859 | ||||||||||||
| | | | | | | | | | | | | | | | | |
Accrued balance as of June 30, 2014 | $ | 1,815 | $ | 1,050 | $ | 68 | — | $ | 2,933 | ||||||||
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
-1 | |||||||||||||||||
The facility closure within the Healthcare division began in fiscal 2013 and was completed during the first quarter of fiscal 2014. The facility consolidations within the Optoelectronics and Manufacturing division began during the first quarter of fiscal 2014 and are expected to be completed during first half of fiscal 2015. | |||||||||||||||||
-2 | |||||||||||||||||
The employee termination costs within the Security division were incurred as a result of management restructuring. The employee termination costs within the Optoelectronics and Manufacturing division related to facility consolidations. | |||||||||||||||||
-3 | |||||||||||||||||
These costs related to contract issues with the TSA and other U.S. Government agencies. These costs include removal, storage and refurbishing costs for products previously sold to the TSA as required by the termination, and legal and other costs. | |||||||||||||||||
-4 | |||||||||||||||||
Debt restructuring costs relate to the amendment of the Company's credit agreement that was completed in the fourth quarter of fiscal 2014. | |||||||||||||||||
LINEOFCREDIT_BORROWINGS_AND_DE1
LINE-OF-CREDIT BORROWINGS AND DEBT (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
LINE-OF-CREDIT BORROWINGS AND DEBT | ' | |||||||
Schedule of long-term debt | ' | |||||||
Long-term debt consisted of the following at June 30 (in thousands): | ||||||||
2013 | 2014 | |||||||
Term loans | $ | 12,470 | $ | 10,921 | ||||
Other long-term debt | — | 2,334 | ||||||
| | | | | | | | |
12,470 | 13,255 | |||||||
Less current portion of long-term debt | 1,797 | 2,819 | ||||||
| | | | | | | | |
Long-term portion of debt | $ | 10,673 | $ | 10,436 | ||||
| | | | | | | | |
| | | | | | | | |
Schedule of fiscal year principal payments of long-term debt | ' | |||||||
Fiscal year principal payments of long-term debt as of June 30, 2014 are as follows (in thousands): | ||||||||
2015 | $ | 2,819 | ||||||
2016 | 2,606 | |||||||
2017 | 2,304 | |||||||
2018 | 1,887 | |||||||
2019 | 1,820 | |||||||
2020 and thereafter | 1,819 | |||||||
| | | | | ||||
Total | $ | 13,255 | ||||||
| | | | | ||||
| | | | | ||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
STOCK-BASED COMPENSATION | ' | |||||||||||||
Schedule of stock-based compensation expense recorded in the consolidated statement of operations | ' | |||||||||||||
The Company recorded stock-based-compensation expense in the consolidated statement of operations as follows (in thousands): | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Cost of goods sold | $ | 465 | $ | 820 | $ | 887 | ||||||||
Selling, general and administrative | 7,811 | 15,394 | 15,940 | |||||||||||
Research and development | 254 | 232 | 156 | |||||||||||
| | | | | | | | | | | ||||
Stock based compensation expense | 8,530 | 16,446 | 16,983 | |||||||||||
Less: Related income tax benefit | 3,050 | 6,123 | 6,498 | |||||||||||
| | | | | | | | | | | ||||
Stock based compensation expense, net | $ | 5,480 | $ | 10,323 | $ | 10,485 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of weighted average assumptions used to determine the fair value calculations for stock options issued | ' | |||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Expected dividend | 0 | % | 0 | % | 0 | % | ||||||||
Risk-free interest rate | 0.6 | % | 0.6 | % | 1.3 | % | ||||||||
Expected volatility | 35.6 | % | 33 | % | 33 | % | ||||||||
Expected holding period (in years) | 4.3 | 4.3 | 4.5 | |||||||||||
Summary of stock option activity | ' | |||||||||||||
Number of | Weighted- | Weighted-Average | Aggregate | |||||||||||
Options | Average | Remaining Contractual | Intrinsic Value | |||||||||||
Exercise | Term | (in thousands) | ||||||||||||
Price | ||||||||||||||
Outstanding at June 30, 2011 | 930,912 | 18.45 | ||||||||||||
Granted | 269,469 | 35.98 | ||||||||||||
Exercised | (140,385 | ) | 17.75 | |||||||||||
Expired or forfeited | (599 | ) | 16.72 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at June 30, 2012 | 1,059,397 | 23.01 | ||||||||||||
Granted | 90,234 | 55.37 | ||||||||||||
Exercised | (117,705 | ) | 15.59 | |||||||||||
Expired or forfeited | (12,193 | ) | 56.36 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at June 30, 2013 | 1,019,733 | 26.33 | ||||||||||||
| | | | | | | | | | | | | | |
Granted | 10,294 | 70.59 | ||||||||||||
Exercised | (1,169 | ) | 39.97 | |||||||||||
Expired or forfeited | (5,867 | ) | 54.06 | |||||||||||
| | | | | | | | | | | | | | |
Outstanding at June 30, 2014 | 1,022,991 | 26.6 | 5.7 years | $ | 41,114 | |||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Exercisable at June 30, 2014 | 873,511 | $ | 23.53 | 5.3 years | $ | 37,750 | ||||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Summary of restricted stock award and restricted stock unit activity | ' | |||||||||||||
Shares | Weighted- | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
Nonvested at June 30, 2011 | 565,113 | $ | 22.89 | |||||||||||
Granted | 230,597 | 36.99 | ||||||||||||
Vested | (208,376 | ) | 21.41 | |||||||||||
Forfeited | (6,866 | ) | 31.1 | |||||||||||
| | | | | | | | |||||||
Nonvested at June 30, 2012 | 580,468 | $ | 28.93 | |||||||||||
Granted | 296,334 | 57.29 | ||||||||||||
Vested | (236,070 | ) | 25.83 | |||||||||||
Forfeited | (13,608 | ) | 43.03 | |||||||||||
| | | | | | | | |||||||
Nonvested at June 30, 2013 | 627,124 | $ | 43.13 | |||||||||||
Granted | 322,275 | 63.73 | ||||||||||||
Vested | (283,091 | ) | 39.4 | |||||||||||
Forfeited | (4,908 | ) | 49.22 | |||||||||||
| | | | | | | | |||||||
Nonvested at June 30, 2014 | 661,400 | $ | 54.78 | |||||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||
Jun. 30, 2014 | |||||||||||
INCOME TAXES | ' | ||||||||||
Schedule of geographical breakdown of income before the provision (benefit) for income taxes | ' | ||||||||||
The following is a geographical breakdown of income before the provision for income taxes (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Pre-tax income (loss): | |||||||||||
United States | $ | 21,335 | $ | (13,111 | ) | $ | (22,604 | ) | |||
Foreign | 40,648 | 82,525 | 98,459 | ||||||||
| | | | | | | | | | | |
Total pre-tax income | $ | 61,983 | $ | 69,414 | $ | 75,855 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Schedule of provision (benefit) for income taxes | ' | ||||||||||
The Company's provision (benefit) for income taxes consists of the following (in thousands): | |||||||||||
2012 | 2013 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 8,176 | $ | (2,214 | ) | $ | (704 | ) | |||
State | 2,396 | (36 | ) | 113 | |||||||
Foreign | 7,320 | 23,925 | 20,616 | ||||||||
| | | | | | | | | | | |
Total current provision | 17,892 | 21,675 | 20,025 | ||||||||
Deferred: | |||||||||||
Federal | $ | (3,565 | ) | $ | (2,422 | ) | $ | (5,366 | ) | ||
State | (554 | ) | 337 | (1,128 | ) | ||||||
Foreign | 2,662 | 5,689 | 14,430 | ||||||||
| | | | | | | | | | | |
Total deferred provision | (1,457 | ) | 3,604 | 7,936 | |||||||
| | | | | | | | | | | |
Total provision | $ | 16,435 | $ | 25,279 | $ | 27,961 | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
Summary of activity of unrecognized tax benefits | ' | ||||||||||
A summary of activity of unrecognized tax benefits for fiscal 2012, 2013 and 2014 was as follows (in thousands). | |||||||||||
Balance as July 1, 2011 | $ | 7,369 | |||||||||
Additions on tax positions for the current year | 264 | ||||||||||
Additions on tax positions from prior years | 503 | ||||||||||
Reduction in tax position from prior year | (1,063 | ) | |||||||||
| | | | | |||||||
Balance as June 30, 2012 | $ | 7,073 | |||||||||
Additions on tax positions for the current year | 785 | ||||||||||
Additions on tax positions from prior years | — | ||||||||||
Reduction in tax position from prior year | (953 | ) | |||||||||
| | | | | |||||||
Balance at June 30, 2013 | $ | 6,905 | |||||||||
Additions on tax positions for the current year | — | ||||||||||
Additions on tax positions from prior years | — | ||||||||||
Reduction in tax position from prior year | (3,723 | ) | |||||||||
| | | | | |||||||
Balance at June 30, 2014 | $ | 3,182 | |||||||||
| | | | | |||||||
| | | | | |||||||
Schedule of deferred income tax assets (liabilities) | ' | ||||||||||
Deferred income tax assets (liabilities) consisted of the following (in thousands): | |||||||||||
June 30, | |||||||||||
2013 | 2014 | ||||||||||
Deferred income tax assets: | |||||||||||
Tax credit carryforwards | $ | 5,680 | $ | 9,314 | |||||||
Net operating loss carryforwards | 5,275 | 5,868 | |||||||||
Customer advances | 29,574 | 48,330 | |||||||||
Allowance for doubtful accounts | 2,511 | 3,071 | |||||||||
Inventory reserve | 7,204 | 7,951 | |||||||||
Inventory capitalization | 1,363 | 2,814 | |||||||||
Accrued liabilities | 4,587 | 4,667 | |||||||||
Stock compensation | 11,705 | 16,633 | |||||||||
Other assets | 1,317 | 9,716 | |||||||||
| | | | | | | | ||||
Total deferred income tax assets | 69,216 | 108,364 | |||||||||
Valuation allowance | (11,081 | ) | (13,344 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax assets | 58,135 | 95,020 | |||||||||
| | | | | | | | ||||
Deferred income tax liabilities: | |||||||||||
Depreciation | (34,402 | ) | (58,258 | ) | |||||||
State income taxes | (1,239 | ) | (1,471 | ) | |||||||
Amortization of intangible assets | (10,724 | ) | (11,702 | ) | |||||||
Prepaid expenses | (2,297 | ) | (20,284 | ) | |||||||
Other liabilities | (380 | ) | (3,188 | ) | |||||||
| | | | | | | | ||||
Total deferred income tax liabilities | (49,042 | ) | (94,903 | ) | |||||||
| | | | | | | | ||||
Net deferred tax asset | $ | 9,093 | $ | 117 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of components of net deferred income tax asset | ' | ||||||||||
The components of the net deferred income tax asset are classified in the consolidated balance sheets as follows (in thousands): | |||||||||||
2013 | 2014 | ||||||||||
Current deferred income tax asset | $ | 41,618 | $ | 73,510 | |||||||
Current deferred income tax liability, included in other accrued expenses and current liabilities | (2,677 | ) | (21,742 | ) | |||||||
Long term deferred income tax asset, included in other assets | 16,518 | 21,510 | |||||||||
Long term deferred income tax liability | (46,366 | ) | (73,161 | ) | |||||||
| | | | | | | | ||||
Net deferred income tax asset | $ | 9,093 | $ | 117 | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of components of current taxes receivable and payable and prepaid taxes | ' | ||||||||||
The components of current taxes receivable and payable and prepaid taxes are classified in the consolidated balance sheets as follows (in thousands): | |||||||||||
2013 | 2014 | ||||||||||
Current taxes receivable and prepaid taxes, included in prepaid expenses and other current assets | $ | 14,149 | $ | 13,126 | |||||||
Current taxes payable | (19,659 | ) | (20,556 | ) | |||||||
| | | | | | | | ||||
Net tax payable | (5,510 | ) | (7,430 | ) | |||||||
| | | | | | | | ||||
| | | | | | | | ||||
Schedule of consolidated effective income tax rate different from the federal statutory income tax rate | ' | ||||||||||
June 30, | |||||||||||
2012 | 2013 | 2014 | |||||||||
Provision for income taxes at federal statutory rate | 35 | % | 35 | % | 35 | % | |||||
State income taxes and credits—net of federal benefit | 1.9 | 0.3 | (0.5 | ) | |||||||
Impact to tax rate as a result of accelerating depreciation of certain foreign assets | — | 9.8 | 10.1 | ||||||||
Research and development tax credits | (0.5 | ) | (1.9 | ) | (0.5 | ) | |||||
Foreign income subject to tax at other than federal statutory rate | (11.0 | ) | (8.9 | ) | (7.6 | ) | |||||
Change in valuation allowance | 1.6 | 2.8 | 2.8 | ||||||||
Unrecognized tax benefit | (1.8 | ) | (2.0 | ) | (4.3 | ) | |||||
Other | 1.3 | 1.3 | 1.9 | ||||||||
| | | | | | | | | | | |
Effective income tax rate | 26.5 | % | 36.4 | % | 36.9 | % | |||||
| | | | | | | | | | | |
| | | | | | | | | | | |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | ||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | ' | ||||||||||||||||
Summary of commitments | ' | ||||||||||||||||
The following is a summary of commitments as of June 30, 2014 (in thousands): | |||||||||||||||||
Payments Due by Period | |||||||||||||||||
Total | Less than | 2-3 years | 4-5 years | After | |||||||||||||
1 year | 5 years | ||||||||||||||||
Total debt | $ | 37,255 | $ | 26,819 | $ | 4,910 | $ | 3,707 | $ | 1,819 | |||||||
Operating leases | $ | 20,191 | $ | 9,581 | $ | 8,616 | $ | 1,994 | $ | — | |||||||
Defined benefit plan obligation | $ | 8,006 | $ | 162 | $ | 384 | $ | 1,083 | $ | 6,377 |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||||
Jun. 30, 2014 | ||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||
Schedule of the changes in the plans benefit obligations, fair value of assets and funded status | ' | |||||||||||||
The following provides a reconciliation of the changes in the plans' benefit obligations and fair value of assets for fiscal years 2013 and 2014, and a statement of the funded status as of June 30, 2013 and 2014 (in thousands): | ||||||||||||||
2013 | 2014 | |||||||||||||
Change in Benefit Obligation | ||||||||||||||
Benefit obligation at beginning of year | $ | 11,758 | $ | 12,753 | ||||||||||
Translation adjustment | (53 | ) | 568 | |||||||||||
Service costs | 70 | 58 | ||||||||||||
Interest costs | 635 | 697 | ||||||||||||
Actuarial (gain) loss | 562 | (196 | ) | |||||||||||
Benefits paid | (219 | ) | (190 | ) | ||||||||||
| | | | | | | | |||||||
Benefit obligation at end of year | 12,753 | 13,690 | ||||||||||||
| | | | | | | | |||||||
Change in Plan Assets | ||||||||||||||
Fair value of plan assets at beginning of year | 6,030 | 6,523 | ||||||||||||
Translation adjustment | (82 | ) | 512 | |||||||||||
Actual return on plan assets | 487 | 479 | ||||||||||||
Company contributions | 251 | 333 | ||||||||||||
Benefits paid | (163 | ) | (136 | ) | ||||||||||
| | | | | | | | |||||||
Fair value of plan assets at end of year | 6,523 | 7,711 | ||||||||||||
| | | | | | | | |||||||
Funded status | (6,230 | ) | (5,979 | ) | ||||||||||
Unrecognized net actuarial loss | — | — | ||||||||||||
| | | | | | | | |||||||
Net amount recognized | $ | (6,230 | ) | $ | (5,979 | ) | ||||||||
| | | | | | | | |||||||
| | | | | | | | |||||||
Amount recognized in consolidated balance sheets consist of: | ||||||||||||||
Investments | $ | 248 | $ | 856 | ||||||||||
Accrued pension liability | (6,478 | ) | (6,835 | ) | ||||||||||
Accumulated other comprehensive income | 3,651 | 2,752 | ||||||||||||
Schedule of net periodic pension expense | ' | |||||||||||||
The following table provides the net periodic benefit costs for each of the fiscal years ended June 30, (in thousands): | ||||||||||||||
2012 | 2013 | 2014 | ||||||||||||
Net Periodic Benefit Costs | ||||||||||||||
Service costs | $ | 54 | $ | 70 | $ | 58 | ||||||||
Interest costs | 487 | 635 | 697 | |||||||||||
Expected return on plan assets | (359 | ) | (360 | ) | (393 | ) | ||||||||
Amortization of prior service costs | 335 | 615 | 615 | |||||||||||
Recognized actuarial loss | 109 | 197 | 144 | |||||||||||
| | | | | | | | | | | ||||
Net periodic benefit cost | $ | 626 | $ | 1,157 | $ | 1,121 | ||||||||
| | | | | | | | | | | ||||
| | | | | | | | | | | ||||
Schedule of plan assumptions | ' | |||||||||||||
2013 | 2014 | |||||||||||||
Weighted average assumptions at year-end: | ||||||||||||||
Discount rate | 5.3 | % | 5.1 | % | ||||||||||
Expected return on plan assets | 5.5 | % | 5.7 | % | ||||||||||
Rate of compensation increase | 3.1 | % | 3.2 | % | ||||||||||
Schedule of plan assets and investment policy | ' | |||||||||||||
Fiscal year ended | Fiscal year ended | |||||||||||||
June 30, 2013 | June 30, 2014 | |||||||||||||
Proportion of | Expected Rate | Proportion of | Expected Rate | |||||||||||
Fair Value | of Return | Fair Value | of Return | |||||||||||
Equity securities | 50 | % | 8 | % | 55 | % | 8 | % | ||||||
Debt securities | 38 | % | 2 | % | 36 | % | 2 | % | ||||||
Other | 12 | % | 6 | % | 9 | % | 5 | % | ||||||
| | | | | | | | | | | | | | |
Combined | 100 | % | 5.5 | % | 100 | % | 5.7 | % | ||||||
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Schedule of estimated benefits payments, based upon the same assumptions used to measure the benefit obligation and net pension cost | ' | |||||||||||||
The following table reflects estimated benefits payments, based upon the same assumptions used to measure the benefit obligation and net pension cost, as of June 30, 2014 (in thousands): | ||||||||||||||
Pension Benefits | ||||||||||||||
July 1, 2014 to June 30, 2015 | $ | 162 | ||||||||||||
July 1, 2015 to June 30, 2016 | 176 | |||||||||||||
July 1, 2016 to June 30, 2017 | 208 | |||||||||||||
July 1, 2017 to June 30, 2018 | 263 | |||||||||||||
July 1, 2018 to June 30, 2019 | 820 | |||||||||||||
July 1, 2019 to June 30, 2024 | 6,377 |
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
SEGMENT INFORMATION | ' | |||||||||||||||||||
Schedule of operations and identifiable assets by industry segment | ' | |||||||||||||||||||
The following tables present the operations and identifiable assets by industry segment (in thousands): | ||||||||||||||||||||
2012 | ||||||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Eliminations | Consolidated | |||||||||||||||
Division | Division | and | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||
Division | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External customer revenue | $ | 391,808 | $ | 235,548 | $ | 165,634 | $ | — | $ | — | $ | 792,990 | ||||||||
Revenue between product segments | — | — | 45,169 | — | (45,169 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total revenues | $ | 391,808 | $ | 235,548 | $ | 210,803 | $ | — | (45,169 | ) | $ | 792,990 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | $ | 30,552 | $ | 28,330 | $ | 18,743 | $ | (11,887 | ) | $ | 202 | $ | 65,940 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segments assets | $ | 351,668 | $ | 162,583 | $ | 132,281 | $ | 109,405 | $ | (6,041 | ) | $ | 749,896 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | $ | 56,848 | $ | 5,158 | $ | 4,552 | $ | 1,932 | $ | — | $ | 68,490 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | $ | 7,819 | $ | 7,640 | $ | 3,876 | $ | 864 | $ | — | $ | 20,199 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2013 | ||||||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Eliminations | Consolidated | |||||||||||||||
Division | Division | and | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||
Division | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External customer revenue | $ | 372,164 | $ | 231,331 | $ | 198,552 | $ | — | $ | — | $ | 802,047 | ||||||||
Revenue between product segments | — | — | 40,548 | — | (40,548 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total revenues | $ | 372,164 | $ | 231,331 | $ | 239,100 | $ | — | (40,548 | ) | $ | 802,047 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | $ | 43,748 | $ | 25,224 | $ | 18,213 | $ | (14,002 | ) | $ | 1,255 | $ | 74,438 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segments assets | $ | 519,081 | $ | 192,994 | $ | 156,784 | $ | 79,372 | $ | 4,508 | $ | 952,739 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | $ | 131,314 | $ | 8,198 | $ | 3,185 | $ | 14,670 | $ | — | $ | 157,367 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | $ | 15,412 | $ | 6,674 | $ | 4,169 | $ | 1,252 | $ | — | $ | 27,507 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
2014 | ||||||||||||||||||||
Security | Healthcare | Optoelectronics | Corporate | Eliminations | Consolidated | |||||||||||||||
Division | Division | and | ||||||||||||||||||
Manufacturing | ||||||||||||||||||||
Division | ||||||||||||||||||||
Revenues: | ||||||||||||||||||||
External customer revenue | $ | 440,439 | $ | 222,313 | $ | 243,990 | $ | — | $ | — | $ | 906,742 | ||||||||
Revenue between product segments | — | — | 40,506 | — | (40,506 | ) | — | |||||||||||||
| | | | | | | | | | | | | | | | | | | | |
Total revenues | $ | 440,439 | $ | 222,313 | $ | 284,496 | $ | — | (40,506 | ) | $ | 906,742 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Income (loss) from operations | $ | 59,501 | $ | 18,495 | $ | 14,663 | $ | (11,497 | ) | $ | 133 | $ | 81,295 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Segments assets | $ | 535,306 | $ | 190,612 | $ | 169,084 | $ | 133,836 | $ | (4,652 | ) | $ | 1,024,186 | |||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Capital expenditures | $ | 38,066 | $ | 6,718 | $ | 2,801 | $ | 7,013 | $ | — | $ | 54,598 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Depreciation and amortization | $ | 40,573 | $ | 7,289 | $ | 4,971 | $ | 1,406 | $ | — | $ | 54,239 | ||||||||
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Schedule of revenues and identifiable assets by geographical area | ' | |||||||||||||||||||
The following tables present the revenues and identifiable assets by geographical area (in thousands): | ||||||||||||||||||||
2012 | ||||||||||||||||||||
External | Intersegment | Total | Long lived | Long lived | ||||||||||||||||
revenues | revenues | Consolidated | tangible assets | assets | ||||||||||||||||
Geographic region: | ||||||||||||||||||||
United States | $ | 505,946 | $ | 10,446 | $ | 516,392 | $ | 49,717 | $ | 149,911 | ||||||||||
Mexico | 16,866 | — | 16,866 | 59,200 | 59,200 | |||||||||||||||
Other Americas | 19,366 | — | 19,366 | 11,285 | 11,865 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total Americas | 542,178 | 10,446 | 552,624 | 120,202 | 220,976 | |||||||||||||||
United Kingdom | 132,579 | — | 132,579 | 14,320 | 27,835 | |||||||||||||||
Other EMEA (1) | 20,561 | — | 20,561 | 821 | 4,984 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total EMEA | 153,140 | — | 153,140 | 15,141 | 32,819 | |||||||||||||||
APAC (2) | 97,672 | 34,723 | 132,395 | 13,456 | 14,894 | |||||||||||||||
Eliminations | — | (45,169 | ) | (45,169 | ) | N/A | N/A | |||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | 792,990 | $ | — | $ | 792,990 | $ | 148,799 | $ | 268,689 | ||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
2013 | ||||||||||||||||||||
External | Intersegment | Total | Long lived | Long lived | ||||||||||||||||
revenues | revenues | Consolidated | tangible assets | assets | ||||||||||||||||
Geographic region: | ||||||||||||||||||||
United States | $ | 441,376 | $ | 15,598 | $ | 456,974 | $ | 35,726 | $ | 132,570 | ||||||||||
Mexico | 78,695 | — | 78,695 | 201,469 | 201,469 | |||||||||||||||
Other Americas | 19,674 | — | 19,674 | 10,057 | 11,395 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total Americas | 539,745 | 15,598 | 555,343 | 247,252 | 345,434 | |||||||||||||||
United Kingdom | 146,261 | — | 146,261 | 10,816 | 26,183 | |||||||||||||||
Other EMEA (1) | 17,673 | — | 17,673 | 699 | 5,033 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total EMEA | 163,934 | — | 163,934 | 11,515 | 31,216 | |||||||||||||||
APAC (2) | 98,368 | 24,950 | 123,318 | 13,984 | 16,448 | |||||||||||||||
Eliminations | — | (40,548 | ) | (40,548 | ) | N/A | N/A | |||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | 802,047 | $ | — | $ | 802,047 | $ | 272,751 | $ | 393,098 | ||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
2014 | ||||||||||||||||||||
External | Intersegment | Total | Long lived | Long lived | ||||||||||||||||
revenues | revenues | Consolidated | tangible assets | assets | ||||||||||||||||
Geographic region: | ||||||||||||||||||||
United States | $ | 451,503 | $ | 7,303 | $ | 458,806 | $ | 42,933 | $ | 144,239 | ||||||||||
Mexico | 130,330 | — | 130,330 | 191,512 | 191,512 | |||||||||||||||
Other Americas | 20,914 | — | 20,914 | 7,059 | 7,059 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total Americas | 602,747 | 7,303 | 610,050 | 241,504 | 342,810 | |||||||||||||||
United Kingdom | 151,962 | — | 151,962 | 24,257 | 52,110 | |||||||||||||||
Other EMEA (1) | 18,543 | — | 18,543 | 5,807 | 10,317 | |||||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total EMEA | 170,505 | — | 170,505 | 30,064 | 62,427 | |||||||||||||||
APAC (2) | 133,490 | 33,203 | 166,693 | 15,657 | 18,210 | |||||||||||||||
Eliminations | — | (40,506 | ) | (40,506 | ) | N/A | N/A | |||||||||||||
| | | | | | | | | | | | | | | | | ||||
Total | $ | 906,742 | $ | — | $ | 906,742 | $ | 287,225 | $ | 423,447 | ||||||||||
| | | | | | | | | | | | | | | | | ||||
| | | | | | | | | | | | | | | | | ||||
-1 | ||||||||||||||||||||
Europe, Middle East and Africa | ||||||||||||||||||||
-2 | ||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
item | ||
Description of Business | ' | ' |
Number of operating segments | 3 | ' |
Accounts Receivable | ' | ' |
Billed receivables | $189,489 | $179,458 |
Unbilled receivables | 1,975 | 34,636 |
Less allowance for doubtful accounts | -5,691 | -7,277 |
Total | $185,773 | $206,817 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Goodwill and Other Intangible Assets and Valuation of Long-Lived Assets | ' | ' | ' |
Goodwill impairment | $0 | $0 | $0 |
Level 3 | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair value of liabilities | 0 | 0 | ' |
Non-recurring | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Fair value of assets | 0 | 0 | ' |
Fair value of liabilities | 0 | 0 | ' |
Recurring | Level 1 | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Total | 914 | 316 | ' |
Recurring | Level 1 | Equity securities | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Equity securities | 914 | 316 | ' |
Recurring | Level 2 | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Insurance company contracts | 17,383 | 13,914 | ' |
Interest rate contract | 28 | 66 | ' |
Total | 17,411 | 13,980 | ' |
Recurring | Total | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Insurance company contracts | 17,383 | 13,914 | ' |
Interest rate contract | 28 | 66 | ' |
Total | 18,325 | 14,296 | ' |
Recurring | Total | Equity securities | ' | ' | ' |
Fair value of financial instruments | ' | ' | ' |
Equity securities | $914 | $316 | ' |
SUMMARY_OF_SIGNIFICANT_ACCOUNT5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 3) (Customer) | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | |
One customer | One customer | Different customer | Different customer | |
Accounts receivable | Revenues | Accounts receivable | Revenues | |
Concentrations of Credit Risk | ' | ' | ' | ' |
Percentage of benchmark derived from specified source | 16.00% | 12.00% | 13.00% | 14.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 4) (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Foreign Currency Translation | ' | ' | ' |
Transaction gain (loss) | ($1,800,000) | $1,800,000 | $400,000 |
Business Combinations | ' | ' | ' |
Maximum measurement period in which provisional amounts can be adjusted | '1 year | ' | ' |
Computation of basic and diluted earnings per share | ' | ' | ' |
Net income available to common stockholders | 47,894,000 | 44,135,000 | 45,548,000 |
Weighted average shares outstanding-basic | 19,952 | 19,956 | 19,732 |
Dilutive effect of stock options (in shares) | 635 | 612 | 598 |
Weighted average of shares outstanding-diluted | 20,587 | 20,568 | 20,330 |
Basic earnings per share (in dollars per share) | $2.40 | $2.21 | $2.31 |
Diluted earnings per share (in dollars per share) | $2.33 | $2.15 | $2.24 |
Changes in provision for warranties | ' | ' | ' |
Balance at beginning of period | 12,890,000 | 17,562,000 | 14,530,000 |
Warranty claims provision | 5,573,000 | 1,948,000 | 8,620,000 |
Settlements made | -6,540,000 | -6,620,000 | -5,588,000 |
Balance at end of period | $11,923,000 | $12,890,000 | $17,562,000 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
INVENTORIES | ' | ' |
Raw materials | $117,945 | $117,416 |
Work-in-process | 33,394 | 37,337 |
Finished goods | 82,799 | 51,460 |
Total | $234,138 | $206,213 |
PROPERTY_AND_EQUIPMENT_Details
PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Property and equipment | ' | ' | ' |
Property and equipment, gross | $391,517,000 | $337,073,000 | ' |
Less: accumulated depreciation and amortization | -131,038,000 | -88,044,000 | ' |
Property and equipment, net | 260,479,000 | 249,029,000 | ' |
Depreciation expense | 49,900,000 | 22,600,000 | 15,500,000 |
Land | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 13,651,000 | 8,365,000 | ' |
Buildings and improvements | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 163,952,000 | 102,187,000 | ' |
Buildings and improvements | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '5 years | ' | ' |
Buildings and improvements | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '40 years | ' | ' |
Leasehold improvements | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 9,744,000 | 9,302,000 | ' |
Leasehold improvements | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '1 year | ' | ' |
Leasehold improvements | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '25 years | ' | ' |
Equipment and tooling | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 154,367,000 | 135,437,000 | ' |
Equipment and tooling | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '3 years | ' | ' |
Equipment and tooling | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '10 years | ' | ' |
Furniture and fixtures | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 4,017,000 | 3,551,000 | ' |
Furniture and fixtures | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '3 years | ' | ' |
Furniture and fixtures | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '13 years | ' | ' |
Computer equipment | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 17,466,000 | 14,309,000 | ' |
Computer equipment | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '3 years | ' | ' |
Computer equipment | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '5 years | ' | ' |
Computer software | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | 15,670,000 | 15,209,000 | ' |
Computer software | Minimum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '3 years | ' | ' |
Computer software | Maximum | ' | ' | ' |
Property and equipment | ' | ' | ' |
Estimated Useful Lives | '10 years | ' | ' |
Construction in process | ' | ' | ' |
Property and equipment | ' | ' | ' |
Property and equipment, gross | $12,650,000 | $48,713,000 | ' |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 |
Changes in the carrying amount of goodwill | ' | ' |
Balance at the beginning of the period | $83,743 | $82,149 |
Goodwill acquired or adjusted during the period | 7,532 | 1,499 |
Foreign currency translation adjustment | 1,332 | 95 |
Balance at the end of the period | 92,607 | 83,743 |
Security Division | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Balance at the beginning of the period | 28,546 | 27,583 |
Goodwill acquired or adjusted during the period | 784 | 798 |
Foreign currency translation adjustment | 177 | 165 |
Balance at the end of the period | 29,507 | 28,546 |
Healthcare Division | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Balance at the beginning of the period | 35,827 | 35,887 |
Goodwill acquired or adjusted during the period | 1,018 | ' |
Foreign currency translation adjustment | 392 | -60 |
Balance at the end of the period | 37,237 | 35,827 |
Optoelectronics and Manufacturing Division | ' | ' |
Changes in the carrying amount of goodwill | ' | ' |
Balance at the beginning of the period | 19,370 | 18,679 |
Goodwill acquired or adjusted during the period | 5,730 | 701 |
Foreign currency translation adjustment | 763 | -10 |
Balance at the end of the period | $25,863 | $19,370 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (Details 2) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Amortizable assets: | ' | ' | ' |
Gross Carrying Value | $59,747,000 | $53,988,000 | ' |
Accumulated Amortization | 28,201,000 | 28,003,000 | ' |
Intangibles Net | 31,546,000 | 25,985,000 | ' |
Total intangible assets | ' | ' | ' |
Gross Carrying Value | 71,816,000 | 64,606,000 | ' |
Intangibles Net | 43,615,000 | 36,603,000 | ' |
Amortization expense | 4,300,000 | 4,900,000 | 4,700,000 |
Estimated future amortization expense | ' | ' | ' |
2015 | 3,019,000 | ' | ' |
2016 | 2,902,000 | ' | ' |
2017 | 3,073,000 | ' | ' |
2018 | 3,059,000 | ' | ' |
2019 | 2,906,000 | ' | ' |
Thereafter, including assets that have not yet begun to be amortized | 16,587,000 | ' | ' |
Intangibles Net | 31,546,000 | 25,985,000 | ' |
Trademarks | ' | ' | ' |
Non-amortizable assets: | ' | ' | ' |
Gross Carrying Value | 12,069,000 | 10,618,000 | ' |
Software development costs | ' | ' | ' |
Intangible assets | ' | ' | ' |
Weighted Average Lives | '7 years | ' | ' |
Amortizable assets: | ' | ' | ' |
Gross Carrying Value | 21,165,000 | 17,350,000 | ' |
Accumulated Amortization | 6,716,000 | 5,396,000 | ' |
Intangibles Net | 14,449,000 | 11,954,000 | ' |
Estimated future amortization expense | ' | ' | ' |
Intangibles Net | 14,449,000 | 11,954,000 | ' |
Capitalized software development costs | 3,000,000 | 2,200,000 | 2,100,000 |
Patents | ' | ' | ' |
Intangible assets | ' | ' | ' |
Weighted Average Lives | '20 years | ' | ' |
Amortizable assets: | ' | ' | ' |
Gross Carrying Value | 6,566,000 | 5,400,000 | ' |
Accumulated Amortization | 765,000 | 635,000 | ' |
Intangibles Net | 5,801,000 | 4,765,000 | ' |
Estimated future amortization expense | ' | ' | ' |
Intangibles Net | 5,801,000 | 4,765,000 | ' |
Core technology | ' | ' | ' |
Intangible assets | ' | ' | ' |
Weighted Average Lives | '10 years | ' | ' |
Amortizable assets: | ' | ' | ' |
Gross Carrying Value | 2,289,000 | 2,058,000 | ' |
Accumulated Amortization | 2,150,000 | 1,728,000 | ' |
Intangibles Net | 139,000 | 330,000 | ' |
Estimated future amortization expense | ' | ' | ' |
Intangibles Net | 139,000 | 330,000 | ' |
Developed technology | ' | ' | ' |
Intangible assets | ' | ' | ' |
Weighted Average Lives | '11 years | ' | ' |
Amortizable assets: | ' | ' | ' |
Gross Carrying Value | 18,308,000 | 20,002,000 | ' |
Accumulated Amortization | 11,559,000 | 14,620,000 | ' |
Intangibles Net | 6,749,000 | 5,382,000 | ' |
Estimated future amortization expense | ' | ' | ' |
Intangibles Net | 6,749,000 | 5,382,000 | ' |
Customer relationships/backlog | ' | ' | ' |
Intangible assets | ' | ' | ' |
Weighted Average Lives | '7 years | ' | ' |
Amortizable assets: | ' | ' | ' |
Gross Carrying Value | 11,419,000 | 9,178,000 | ' |
Accumulated Amortization | 7,011,000 | 5,624,000 | ' |
Intangibles Net | 4,408,000 | 3,554,000 | ' |
Estimated future amortization expense | ' | ' | ' |
Intangibles Net | $4,408,000 | $3,554,000 | ' |
IMPAIRMENT_RESTRUCTURING_AND_O2
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Restructuring and other charges | ' | ' | ' |
Accrued balance at the beginning of the period | $2,748 | $482 | $776 |
Total expensed during the year | 12,044 | 7,987 | 1,391 |
Paid or incurred during the year | 11,859 | 5,721 | 1,685 |
Accrued balance at the end of the period | 2,933 | 2,748 | 482 |
Software development costs | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Impairment charges | ' | 1,095 | ' |
Debt restructuring | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 1,325 | ' | ' |
Facility closure / consolidations | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 2,772 | 2,653 | 233 |
Employee termination costs | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 1,555 | 1,084 | 1,158 |
Charges related to contract settlement | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | ' | 3,155 | ' |
Charges related to government contract issues | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 5,798 | ' | ' |
Charges related to class action litigation | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 594 | ' | ' |
Security Division | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Accrued balance at the beginning of the period | 1,043 | 297 | 465 |
Total expensed during the year | 6,684 | 5,031 | 290 |
Paid or incurred during the year | 5,912 | 4,285 | 458 |
Accrued balance at the end of the period | 1,815 | 1,043 | 297 |
Security Division | Software development costs | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Impairment charges | ' | 1,095 | ' |
Security Division | Employee termination costs | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 886 | 781 | 290 |
Security Division | Charges related to contract settlement | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | ' | 3,155 | ' |
Security Division | Charges related to government contract issues | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 5,798 | ' | ' |
Healthcare Division | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Accrued balance at the beginning of the period | 1,639 | 170 | 179 |
Total expensed during the year | 2,009 | 2,366 | 170 |
Paid or incurred during the year | 2,598 | 897 | 179 |
Accrued balance at the end of the period | 1,050 | 1,639 | 170 |
Healthcare Division | Facility closure / consolidations | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 2,009 | 2,309 | ' |
Healthcare Division | Employee termination costs | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | ' | 57 | 170 |
Optoelectronics and Manufacturing Division | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Accrued balance at the beginning of the period | 66 | 6 | 104 |
Total expensed during the year | 1,432 | 590 | 931 |
Paid or incurred during the year | 1,430 | 530 | 1,029 |
Accrued balance at the end of the period | 68 | 66 | 6 |
Optoelectronics and Manufacturing Division | Facility closure / consolidations | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 763 | 344 | 233 |
Optoelectronics and Manufacturing Division | Employee termination costs | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 669 | 246 | 698 |
Corporate | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Accrued balance at the beginning of the period | ' | 9 | 28 |
Total expensed during the year | 1,919 | ' | ' |
Paid or incurred during the year | 1,919 | 9 | 19 |
Accrued balance at the end of the period | ' | ' | 9 |
Corporate | Debt restructuring | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | 1,325 | ' | ' |
Corporate | Charges related to class action litigation | ' | ' | ' |
Restructuring and other charges | ' | ' | ' |
Total expensed during the year | $594 | ' | ' |
LINEOFCREDIT_BORROWINGS_AND_DE2
LINE-OF-CREDIT BORROWINGS AND DEBT (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Sep. 30, 2012 | Jun. 30, 2014 |
Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Revolving credit facility | Bank lines-of-credit | Seven-year term loan due in fiscal 2020 | Seven-year term loan due in fiscal 2020 | Seven-year term loan due in fiscal 2020 | |||
Minimum | Maximum | LIBOR | LIBOR | LIBOR | LIBOR | |||||||
Minimum | Maximum | |||||||||||
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | $450,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sub-limit available for letters of credit | ' | ' | 375,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in the credit agreement's borrowing capacity available under certain circumstances | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Variable basis rate | ' | ' | ' | ' | ' | 'LIBOR | ' | ' | ' | ' | ' | 'LIBOR |
Interest rate margin (as a percent) | ' | ' | ' | ' | ' | 1.25% | 1.25% | 2.00% | ' | ' | ' | 1.25% |
Unused commitment fee (as a percent) | ' | ' | 0.20% | 0.20% | 0.35% | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | 24,000,000 | 59,000,000 | 24,000,000 | ' | ' | ' | ' | ' | 0 | ' | ' | ' |
Amount outstanding under lines-of-credit | ' | ' | 102,900,000 | ' | ' | ' | ' | ' | 21,800,000 | ' | ' | ' |
Available credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 16,300,000 | ' | ' | ' |
Total cash borrowing sub-limit | ' | ' | ' | ' | ' | ' | ' | ' | 1,700,000 | ' | ' | ' |
Principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 11,100,000 | ' |
Term of loan | ' | ' | ' | ' | ' | ' | ' | ' | ' | '7 years | ' | ' |
Effective interest rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.20% | ' | ' |
Term loans | 10,921,000 | 12,470,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other long-term debt | 2,334,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | 13,255,000 | 12,470,000 | ' | ' | ' | ' | ' | ' | ' | 8,500,000 | ' | ' |
Less current portion of long-term debt | 2,819,000 | 1,797,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term portion of debt | 10,436,000 | 10,673,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fiscal year principal payments of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | 2,819,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | 2,606,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | 2,304,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | 1,887,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 | 1,820,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2020 and thereafter | 1,819,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $13,255,000 | $12,470,000 | ' | ' | ' | ' | ' | ' | ' | $8,500,000 | ' | ' |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
item | |||
STOCK-BASED COMPENSATION | ' | ' | ' |
Number of share-based employee compensation plans | 2 | ' | ' |
Stock based compensation expense | ' | ' | ' |
Stock-based compensation expense before taxes | $16,983,000 | $16,446,000 | $8,530,000 |
Less: related income tax benefit | 6,498,000 | 6,123,000 | 3,050,000 |
Stock-based compensation expense, net of estimated taxes | 10,485,000 | 10,323,000 | 5,480,000 |
Stock Options | ' | ' | ' |
Stock-based compensation, other disclosures | ' | ' | ' |
Unrecognized compensation cost | 1,000,000 | ' | ' |
Weighted-average period | '1 year 6 months | ' | ' |
Restricted stock and RSU | ' | ' | ' |
Stock-based compensation, other disclosures | ' | ' | ' |
Unrecognized compensation cost | 14,400,000 | ' | ' |
Weighted-average period | '2 years | ' | ' |
2006 Plan | ' | ' | ' |
Stock-based compensation, other disclosures | ' | ' | ' |
Number of awards issued (in shares) | 0 | ' | ' |
Cost of goods sold | ' | ' | ' |
Stock based compensation expense | ' | ' | ' |
Stock-based compensation expense before taxes | 887,000 | 820,000 | 465,000 |
Selling, general and administrative | ' | ' | ' |
Stock based compensation expense | ' | ' | ' |
Stock-based compensation expense before taxes | 15,940,000 | 15,394,000 | 7,811,000 |
Research and development | ' | ' | ' |
Stock based compensation expense | ' | ' | ' |
Stock-based compensation expense before taxes | $156,000 | $232,000 | $254,000 |
STOCKBASED_COMPENSATION_Detail1
STOCK-BASED COMPENSATION (Details 2) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Restricted stock and RSU | ' | ' | ' |
Weighted-Average Fair Value | ' | ' | ' |
Number of shares available for grant reduced for each award granted | 1.87 | ' | ' |
Number of shares available for grant increased for each award forfeited and returned | 1.87 | ' | ' |
Performance-based restricted stock units | ' | ' | ' |
Shares | ' | ' | ' |
Granted (in shares) | 160,922 | 178,500 | 75,000 |
OSI Plans | Stock Options | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Weighted average assumptions used to determine the fair value calculations for stock options issued | ' | ' | ' |
Expected dividend (as percent) | 0.00% | 0.00% | 0.00% |
Risk-free interest rate (as percent) | 1.30% | 0.60% | 0.60% |
Expected volatility (as percent) | 33.00% | 33.00% | 35.60% |
Expected holding period | '4 years 6 months | '4 years 3 months 18 days | '4 years 3 months 18 days |
Number of Options | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 1,019,733 | 1,059,397 | 930,912 |
Granted (in shares) | 10,294 | 90,234 | 269,469 |
Exercised (in shares) | -1,169 | -117,705 | -140,385 |
Expired or forfeited (in shares) | -5,867 | -12,193 | -599 |
Outstanding at the end of the period (in shares) | 1,022,991 | 1,019,733 | 1,059,397 |
Exercisable at the end of the period (in shares) | 873,511 | ' | ' |
Weighted-Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | 26.33 | 23.01 | 18.45 |
Granted (in dollars per share) | 70.59 | 55.37 | 35.98 |
Exercised (in dollars per share) | 39.97 | 15.59 | 17.75 |
Expired or forfeited (in dollars per share) | 54.06 | 56.36 | 16.72 |
Outstanding at the end of the period (in dollars per share) | 26.6 | 26.33 | 23.01 |
Exercisable at the end of the period (in dollars per share) | 23.53 | ' | ' |
Weighted-Average Remaining Contractual Term | ' | ' | ' |
Outstanding at the end of the period | '5 years 8 months 12 days | ' | ' |
Exercisable at the end of the period | '5 years 3 months 18 days | ' | ' |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period | 41,114,000 | ' | ' |
Exercisable at the end of the period | 37,750,000 | ' | ' |
Stock-based compensation, other disclosures | ' | ' | ' |
Weighted-average grant-date fair value of stock options (in dollars per share) | 20.78 | 15.33 | 10.67 |
Total intrinsic value of options exercised | 38,000 | ' | ' |
OSI Plans | Nonqualified options | Minimum | Any person who owned more than 10% of the voting power of all classes of stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Percentage of voting power owned | 10.00% | ' | ' |
Purchase price expressed as a percentage of the fair market value of the Company's common stock on the date of grant | 110.00% | ' | ' |
OSI Plans | Incentive stock options | Minimum | Any person who owned more than 10% of the voting power of all classes of stock | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Percentage of voting power owned | 10.00% | ' | ' |
Purchase price expressed as a percentage of the fair market value of the Company's common stock on the date of grant | 110.00% | ' | ' |
OSI Plans | Restricted stock and RSU | ' | ' | ' |
Shares | ' | ' | ' |
Nonvested at the beginning of the period (in shares) | 627,124 | 580,468 | 565,113 |
Granted (in shares) | 322,275 | 296,334 | 230,597 |
Vested (in shares) | -283,091 | -236,070 | -208,376 |
Forfeited (in shares) | -4,908 | -13,608 | -6,866 |
Nonvested at the end of the period (in shares) | 661,400 | 627,124 | 580,468 |
Weighted-Average Fair Value | ' | ' | ' |
Nonvested at the beginning of the period (in dollars per share) | 43.13 | 28.93 | 22.89 |
Granted (in dollars per share) | 63.73 | 57.29 | 36.99 |
Vested (in dollars per share) | 39.4 | 25.83 | 21.41 |
Forfeited (in dollars per share) | 49.22 | 43.03 | 31.1 |
Nonvested at the end of the period (in dollars per share) | 54.78 | 43.13 | 28.93 |
Total fair value of shares vested | 11,200,000 | 6,100,000 | 4,500,000 |
OSI Plans | Restricted stock and RSU | Minimum | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period | '3 years | ' | ' |
OSI Plans | Restricted stock and RSU | Maximum | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Vesting period | '4 years | ' | ' |
OSI Plans | Performance-based restricted stock units | Minimum | ' | ' | ' |
Weighted-Average Fair Value | ' | ' | ' |
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock | 0.00% | ' | ' |
OSI Plans | Performance-based restricted stock units | Maximum | ' | ' | ' |
Weighted-Average Fair Value | ' | ' | ' |
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock | 250.00% | ' | ' |
2012 Plan | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Securities available for grant | 3,330,177 | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Shares purchased | 29,185 | 85,056 | 82,752 |
Securities available for grant | 1,019,200 | ' | ' |
Employee Stock Purchase Plan | Maximum | ' | ' | ' |
Stock-based compensation | ' | ' | ' |
Discount rate for eligible employees to purchase common stock (as a percent) | 15.00% | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) (USD $) | 12 Months Ended | |||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 | |
Pre-tax income (loss): | ' | ' | ' | ' |
United States | ($22,604,000) | ($13,111,000) | $21,335,000 | ' |
Foreign | 98,459,000 | 82,525,000 | 40,648,000 | ' |
Income before income taxes | 75,855,000 | 69,414,000 | 61,983,000 | ' |
Current: | ' | ' | ' | ' |
Federal | -704,000 | -2,214,000 | 8,176,000 | ' |
State | 113,000 | -36,000 | 2,396,000 | ' |
Foreign | 20,616,000 | 23,925,000 | 7,320,000 | ' |
Total current provision | 20,025,000 | 21,675,000 | 17,892,000 | ' |
Deferred: | ' | ' | ' | ' |
Federal | -5,366,000 | -2,422,000 | -3,565,000 | ' |
State | -1,128,000 | 337,000 | -554,000 | ' |
Foreign | 14,430,000 | 5,689,000 | 2,662,000 | ' |
Total deferred provision | 7,936,000 | 3,604,000 | -1,457,000 | ' |
Total provision | 27,961,000 | 25,279,000 | 16,435,000 | ' |
Income taxes, other disclosures | ' | ' | ' | ' |
Additional tax benefit as a result of stock-based compensation | 4,573,000 | 3,566,000 | 3,187,000 | ' |
Liability for uncertain tax positions | 3,182,000 | 6,905,000 | 7,073,000 | 7,369,000 |
Unrecognized tax benefits that, if recognized, would affect the effective tax rate | 2,800,000 | ' | ' | ' |
Accrued interest and penalties | $400,000 | ' | ' | ' |
INCOME_TAXES_Details_2
INCOME TAXES (Details 2) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Activity of unrecognized tax benefits | ' | ' | ' |
Balance at the beginning of the period | $6,905,000 | $7,073,000 | $7,369,000 |
Additions on tax positions for the current year | ' | 785,000 | 264,000 |
Additions on tax positions from prior years | ' | ' | 503,000 |
Reduction in tax position from prior year | -3,723,000 | -953,000 | -1,063,000 |
Balance at the end of the period | 3,182,000 | 6,905,000 | 7,073,000 |
Undistributed earnings of the foreign subsidiaries | 417,000,000 | ' | ' |
Unrecognized deferred tax liability related to temporary differences due to undistributed earnings of the foreign subsidiaries | 146,000,000 | ' | ' |
Deferred income tax assets: | ' | ' | ' |
Tax credit carryforwards | 9,314,000 | 5,680,000 | ' |
Net operating loss carryforwards | 5,868,000 | 5,275,000 | ' |
Customer advances | 48,330,000 | 29,574,000 | ' |
Allowance for doubtful accounts | 3,071,000 | 2,511,000 | ' |
Inventory reserve | 7,951,000 | 7,204,000 | ' |
Inventory capitalization | 2,814,000 | 1,363,000 | ' |
Accrued liabilities | 4,667,000 | 4,587,000 | ' |
Stock compensation | 16,633,000 | 11,705,000 | ' |
Other assets | 9,716,000 | 1,317,000 | ' |
Total deferred income tax assets | 108,364,000 | 69,216,000 | ' |
Valuation allowance | -13,344,000 | -11,081,000 | ' |
Net deferred income tax assets | 95,020,000 | 58,135,000 | ' |
Deferred income tax liabilities: | ' | ' | ' |
Depreciation | -58,258,000 | -34,402,000 | ' |
State income taxes | -1,471,000 | -1,239,000 | ' |
Amortization of intangible assets | -11,702,000 | -10,724,000 | ' |
Prepaid expenses | -20,284,000 | -2,297,000 | ' |
Other liabilities | -3,188,000 | -380,000 | ' |
Total deferred income tax liabilities | -94,903,000 | -49,042,000 | ' |
Net deferred income tax asset | 117,000 | 9,093,000 | ' |
Components of net deferred income tax asset | ' | ' | ' |
Current deferred income tax asset | 73,510,000 | 41,617,000 | ' |
Current deferred income tax liability, included in other accrued expenses and current liabilities | -21,742,000 | -2,677,000 | ' |
Long term deferred income tax asset, included in other assets | 21,510,000 | 16,518,000 | ' |
Long-term deferred income tax liability | -73,161,000 | -46,365,000 | ' |
Net deferred income tax asset | 117,000 | 9,093,000 | ' |
Components of current taxes receivable and payable and prepaid taxes | ' | ' | ' |
Current taxes receivable and prepaid taxes, included in prepaid expenses and other current assets | 13,126,000 | 14,149,000 | ' |
Current taxes payable | -20,556,000 | -19,659,000 | ' |
Net tax payable | ($7,430,000) | ($5,510,000) | ' |
INCOME_TAXES_Details_3
INCOME TAXES (Details 3) (USD $) | Jun. 30, 2014 |
In Millions, unless otherwise specified | |
Domestic | ' |
Operating loss carry forwards | ' |
Net operating loss carry forwards | $22.80 |
Foreign | ' |
Operating loss carry forwards | ' |
Net operating loss carry forwards | $22.50 |
INCOME_TAXES_Details_4
INCOME TAXES (Details 4) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Tax credit carry forward | ' |
Increase in valuation allowance | $2.10 |
Federal | ' |
Tax credit carry forward | ' |
Tax credit carry forwards | 6.5 |
State | ' |
Tax credit carry forward | ' |
Tax credit carry forwards | 3.5 |
Foreign | ' |
Tax credit carry forward | ' |
Tax credit carry forwards | $2.50 |
INCOME_TAXES_Details_5
INCOME TAXES (Details 5) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
INCOME TAXES | ' | ' | ' |
Excess tax benefits from employee stock option exercises | $2,100,000 | ' | ' |
Increase in additional paid-in capital when excess tax benefits from employee stock option exercises are realized | $4,573,000 | $3,566,000 | $3,187,000 |
INCOME_TAXES_Details_6
INCOME TAXES (Details 6) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Effective income tax rate | ' | ' | ' |
Provision for income taxes at federal statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State income taxes and credits-net of federal benefit (as a percent) | -0.50% | 0.30% | 1.90% |
Impact to tax rate as a result of accelerating depreciation of certain foreign assets (as a percent) | 10.10% | 9.80% | ' |
Research and development tax credits (as a percent) | -0.50% | -1.90% | -0.50% |
Foreign income subject to tax at other than federal statutory rate (as a percent) | -7.60% | -8.90% | -11.00% |
Change in valuation allowance (as a percent) | 2.80% | 2.80% | 1.60% |
Unrecognized tax benefit (as a percent) | -4.30% | -2.00% | -1.80% |
Other (as a percent) | 1.90% | 1.30% | 1.30% |
Effective income tax rate (as a percent) | 36.90% | 36.40% | 26.50% |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
item | |||
Total debt, payments due by period | ' | ' | ' |
Total debt | $37,255,000 | ' | ' |
Less than 1 year | 26,819,000 | ' | ' |
2-3 years | 4,910,000 | ' | ' |
4-5 years | 3,707,000 | ' | ' |
After 5 years | 1,819,000 | ' | ' |
Operating leases, payments due by period | ' | ' | ' |
Total | 20,191,000 | ' | ' |
Less than 1 year | 9,581,000 | ' | ' |
2-3 years | 8,616,000 | ' | ' |
4-5 years | 1,994,000 | ' | ' |
Defined benefit plan obligation, payments due by period | ' | ' | ' |
Total | 8,006,000 | ' | ' |
Less than 1 year | 162,000 | ' | ' |
2-3 years | 384,000 | ' | ' |
4-5 years | 1,083,000 | ' | ' |
After 5 years | 6,377,000 | ' | ' |
Operating Leases | ' | ' | ' |
Rent expense | 9,900,000 | 13,100,000 | 13,000,000 |
Contingent Acquisition Obligations | ' | ' | ' |
Fair value of contingent payment obligations | 23,200,000 | 15,400,000 | ' |
Reductions in fair value of contingent payment obligations | 3,900,000 | 5,400,000 | ' |
Environmental Contingencies | ' | ' | ' |
Number of investigations discovering soil and groundwater contamination at Hawthorne, CA facility | 1 | ' | ' |
Mexican government | ' | ' | ' |
Advances from Customers | ' | ' | ' |
Advances from customers | 75,000,000 | ' | 100,000,000 |
Maximum | ' | ' | ' |
Contingent Acquisition Obligations | ' | ' | ' |
Maximum amount of future payments under contingent consideration | $56,000,000 | ' | ' |
Royalty payments | ' | ' | ' |
Contingent Acquisition Obligations | ' | ' | ' |
Purchase agreements containing royalty payments, number | 1 | ' | ' |
STOCKHOLDERS_EQUITY_Details
STOCKHOLDERS' EQUITY (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Stock Repurchase Program | ' | ' | ' |
Number of shares repurchased | 165,845 | 200,732 | 67,037 |
Number of shares available for additional repurchase | 1,219,195 | ' | ' |
RELATEDPARTY_TRANSACTIONS_Deta
RELATED-PARTY TRANSACTIONS (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Chief Executive Officer and/or his family members | Messenger services and auto rental | Entities Owned by Related Party | ' | ' | ' |
RELATED-PARTY TRANSACTIONS | ' | ' | ' |
Expenses related to transactions with related party | $31,000 | $76,000 | $79,000 |
ECIL-Rapiscan Security Products Limited | ' | ' | ' |
RELATED-PARTY TRANSACTIONS | ' | ' | ' |
Ownership interest in joint venture (as a percent) | 36.00% | ' | ' |
Initial investment | 100,000 | ' | ' |
Equity earnings in joint venture | 0 | 100,000 | 400,000 |
Sales to joint venture | 5,200,000 | 5,700,000 | 5,800,000 |
Receivables from joint venture | $600,000 | $300,000 | ' |
ECIL-Rapiscan Security Products Limited | Chairman and Chief Executive Officer | ' | ' | ' |
RELATED-PARTY TRANSACTIONS | ' | ' | ' |
Related party ownership percentage in equity method investee of the reporting entity | 10.50% | ' | ' |
ECIL-Rapiscan Security Products Limited | Executive Vice President and President of the Company's Security division | ' | ' | ' |
RELATED-PARTY TRANSACTIONS | ' | ' | ' |
Related party ownership percentage in equity method investee of the reporting entity | 4.50% | ' | ' |
ECIL-Rapiscan Security Products Limited | Chairman and Chief Executive Officer, and Executive Vice President and President of the Company's Security division | Maximum | ' | ' | ' |
RELATED-PARTY TRANSACTIONS | ' | ' | ' |
Collective voting power control, by entity and related parties, in equity method investment of entity (as a percent) | 50.00% | ' | ' |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
EMPLOYEE BENEFIT PLANS | ' | ' | ' |
Contributions made by the entity to defined contribution plans | $4.10 | $3.70 | $3.90 |
Deferred Compensation Plan | ' | ' | ' |
Company contribution on deferred compensation plan | 0.6 | 0.6 | 0.7 |
Assets held by Company | 12.7 | ' | ' |
Liabilities held by Company | $12.50 | ' | ' |
Period to classify liabilities underfunded plans as noncurrent | '12 months | ' | ' |
Maximum | ' | ' | ' |
Deferred Compensation Plan | ' | ' | ' |
Percentage of salaries which can be deferred by eligible employees | 80.00% | ' | ' |
Percentage of bonuses which can be deferred by eligible employees | 100.00% | ' | ' |
EMPLOYEE_BENEFIT_PLANS_Details1
EMPLOYEE BENEFIT PLANS (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Change in Benefit Obligation | ' | ' | ' |
Benefit obligation at beginning of year | $12,753 | $11,758 | ' |
Translation adjustment | 568 | -53 | ' |
Service costs | 58 | 70 | 54 |
Interest costs | 697 | 635 | 487 |
Actuarial (gain) loss | -196 | 562 | ' |
Benefits paid | -190 | -219 | ' |
Benefit obligation at end of year | 13,690 | 12,753 | 11,758 |
Change in Plan Assets | ' | ' | ' |
Fair value of plan assets at beginning of year | 6,523 | 6,030 | ' |
Translation adjustment | 512 | -82 | ' |
Actual return on plan assets | 479 | 487 | ' |
Company contributions | 333 | 251 | ' |
Benefits paid | -136 | -163 | ' |
Fair value of plan assets at end of year | 7,711 | 6,523 | 6,030 |
Funded status | -5,979 | -6,230 | ' |
Net amount recognized | -5,979 | -6,230 | ' |
Amount recognized in consolidated balance sheets consist of: | ' | ' | ' |
Investments | 856 | 248 | ' |
Accrued pension liability | -6,835 | -6,478 | ' |
Accumulated other comprehensive income | 2,752 | 3,651 | ' |
Net Periodic Benefit Costs | ' | ' | ' |
Service costs | 58 | 70 | 54 |
Interest costs | 697 | 635 | 487 |
Expected return on plan assets | -393 | -360 | -359 |
Amortization of prior service costs | 615 | 615 | 335 |
Recognized actuarial loss | 144 | 197 | 109 |
Net periodic benefit cost | $1,121 | $1,157 | $626 |
Weighted average assumptions at year-end: | ' | ' | ' |
Discount rate (as a percent) | 5.10% | 5.30% | ' |
Expected return on plan assets (as a percent) | 5.70% | 5.50% | ' |
Rate of compensation increase (as a percent) | 3.20% | 3.10% | ' |
EMPLOYEE_BENEFIT_PLANS_Details2
EMPLOYEE BENEFIT PLANS (Details 3) | 12 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
Plan Assets and Investment Policy | ' | ' |
Proportion of Fair Value (as a percent) | 100.00% | 100.00% |
Expected Rate of Return (as a percent) | 5.70% | 5.50% |
Maximum | ' | ' |
Plan Assets and Investment Policy | ' | ' |
Percentage of significant holdings in any single company of the total assets | 5.00% | ' |
Equity securities | ' | ' |
Plan Assets and Investment Policy | ' | ' |
Proportion of Fair Value (as a percent) | 55.00% | 50.00% |
Expected Rate of Return (as a percent) | 8.00% | 8.00% |
Debt securities | ' | ' |
Plan Assets and Investment Policy | ' | ' |
Proportion of Fair Value (as a percent) | 36.00% | 38.00% |
Expected Rate of Return (as a percent) | 2.00% | 2.00% |
Other | ' | ' |
Plan Assets and Investment Policy | ' | ' |
Proportion of Fair Value (as a percent) | 9.00% | 12.00% |
Expected Rate of Return (as a percent) | 5.00% | 6.00% |
EMPLOYEE_BENEFIT_PLANS_Details3
EMPLOYEE BENEFIT PLANS (Details 4) (USD $) | 12 Months Ended |
Jun. 30, 2014 | |
Projected Benefit Payments | ' |
July 1, 2014 to June 30, 2015 | $162,000 |
July 1, 2015 to June 30, 2016 | 176,000 |
July 1, 2016 to June 30, 2017 | 208,000 |
July 1, 2017 to June 30, 2018 | 263,000 |
July 1, 2018 to June 30, 2019 | 820,000 |
July 1, 2019 to June 30, 2024 | 6,377,000 |
Company Contribution | ' |
Estimated employer contribution for next fiscal year | $100,000 |
Employee Pension Plans | Weighted average | ' |
Company Contribution | ' |
Weighted average contribution rate of pensionable salaries made by Company (as a percent) | 1.00% |
SEGMENT_INFORMATION_Details
SEGMENT INFORMATION (Details) | 12 Months Ended |
Jun. 30, 2014 | |
item | |
SEGMENT INFORMATION | ' |
Number of identifiable industry segments | 3 |
SEGMENT_INFORMATION_Details_2
SEGMENT INFORMATION (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | $906,742 | $802,047 | $792,990 |
Income (loss) from operations | 81,295 | 74,438 | 65,940 |
Segments assets | 1,024,186 | 952,739 | 749,896 |
Capital expenditures | 54,598 | 157,367 | 68,490 |
Depreciation and amortization | 54,239 | 27,507 | 20,199 |
Security Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | 440,439 | 372,164 | 391,808 |
Capital expenditures | 38,066 | 131,314 | 56,848 |
Depreciation and amortization | 40,573 | 15,412 | 7,819 |
Healthcare Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | 222,313 | 231,331 | 235,548 |
Capital expenditures | 6,718 | 8,198 | 5,158 |
Depreciation and amortization | 7,289 | 6,674 | 7,640 |
Optoelectronics and Manufacturing Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | 243,990 | 198,552 | 165,634 |
Capital expenditures | 2,801 | 3,185 | 4,552 |
Depreciation and amortization | 4,971 | 4,169 | 3,876 |
Corporate | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Income (loss) from operations | -11,497 | -14,002 | -11,887 |
Segments assets | 133,836 | 79,372 | 109,405 |
Capital expenditures | 7,013 | 14,670 | 1,932 |
Depreciation and amortization | 1,406 | 1,252 | 864 |
Operating Segments | Security Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Income (loss) from operations | 59,501 | 43,748 | 30,552 |
Segments assets | 535,306 | 519,081 | 351,668 |
Operating Segments | Healthcare Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Income (loss) from operations | 18,495 | 25,224 | 28,330 |
Segments assets | 190,612 | 192,994 | 162,583 |
Operating Segments | Optoelectronics and Manufacturing Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | 284,496 | 239,100 | 210,803 |
Income (loss) from operations | 14,663 | 18,213 | 18,743 |
Segments assets | 169,084 | 156,784 | 132,281 |
Eliminations | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | -40,506 | -40,548 | -45,169 |
Income (loss) from operations | 133 | 1,255 | 202 |
Segments assets | -4,652 | 4,508 | -6,041 |
Eliminations | Optoelectronics and Manufacturing Division | ' | ' | ' |
Operations and identifiable assets by industry segment | ' | ' | ' |
Total revenues | $40,506 | $40,548 | $45,169 |
SEGMENT_INFORMATION_Details_3
SEGMENT INFORMATION (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | $906,742 | $802,047 | $792,990 |
Long lived tangible assets | 287,225 | 272,751 | 148,799 |
Long lived assets | 423,447 | 393,098 | 268,689 |
Total Americas | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 602,747 | 539,745 | 542,178 |
Long lived tangible assets | 241,504 | 247,252 | 120,202 |
Long lived assets | 342,810 | 345,434 | 220,976 |
United States | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 451,503 | 441,376 | 505,946 |
Long lived tangible assets | 42,933 | 35,726 | 49,717 |
Long lived assets | 144,239 | 132,570 | 149,911 |
Mexico | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 130,330 | 78,695 | 16,866 |
Long lived tangible assets | 191,512 | 201,469 | 59,200 |
Long lived assets | 191,512 | 201,469 | 59,200 |
Other Americas | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 20,914 | 19,674 | 19,366 |
Long lived tangible assets | 7,059 | 10,057 | 11,285 |
Long lived assets | 7,059 | 11,395 | 11,865 |
Total EMEA | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 170,505 | 163,934 | 153,140 |
Long lived tangible assets | 30,064 | 11,515 | 15,141 |
Long lived assets | 62,427 | 31,216 | 32,819 |
United Kingdom | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 151,962 | 146,261 | 132,579 |
Long lived tangible assets | 24,257 | 10,816 | 14,320 |
Long lived assets | 52,110 | 26,183 | 27,835 |
Other EMEA | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 18,543 | 17,673 | 20,561 |
Long lived tangible assets | 5,807 | 699 | 821 |
Long lived assets | 10,317 | 5,033 | 4,984 |
APAC | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 133,490 | 98,368 | 97,672 |
Long lived tangible assets | 15,657 | 13,984 | 13,456 |
Long lived assets | 18,210 | 16,448 | 14,894 |
Reportable Geographical Components | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | -40,506 | -40,548 | -45,169 |
Reportable Geographical Components | Total Americas | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 610,050 | 555,343 | 552,624 |
Reportable Geographical Components | United States | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 458,806 | 456,974 | 516,392 |
Reportable Geographical Components | APAC | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 166,693 | 123,318 | 132,395 |
Eliminations | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | -40,506 | -40,548 | -45,169 |
Eliminations | Total Americas | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 7,303 | 15,598 | 10,446 |
Eliminations | United States | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | 7,303 | 15,598 | 10,446 |
Eliminations | APAC | ' | ' | ' |
Revenues and identifiable assets by geographical area | ' | ' | ' |
Total revenues | $33,203 | $24,950 | $34,723 |
SCHEDULE_IIVALUATION_AND_QUALI1
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Doubtful accounts | ' | ' | ' |
Valuation and Qualifying accounts | ' | ' | ' |
Balance at beginning of period | $7,277 | $5,054 | $5,793 |
Charged to costs and expenses | 193 | 3,563 | 582 |
Deductions - Write-offs | 1,779 | 1,340 | 1,321 |
Balance at end of period | 5,691 | 7,277 | 5,054 |
Warranty reserve | ' | ' | ' |
Valuation and Qualifying accounts | ' | ' | ' |
Balance at beginning of period | 12,890 | 17,562 | 14,530 |
Charged to costs and expenses | 5,573 | 1,948 | 8,620 |
Deductions - Write-offs | 6,540 | 6,620 | 5,588 |
Balance at end of period | $11,923 | $12,890 | $17,562 |