Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2018 | Sep. 13, 2018 | Dec. 29, 2017 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | ACETO CORP | ||
Entity Central Index Key | 2,034 | ||
Trading Symbol | acet | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock Shares Outstanding | 30,787,241 | ||
Entity Public Float | $ 267,428,195 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 100,874 | $ 55,680 |
Investments | 3,030 | 2,046 |
Trade receivables: less allowance for doubtful accounts (2018, $987; 2017, $485) | 247,246 | 277,489 |
Other receivables | 9,664 | 12,066 |
Inventory | 137,076 | 136,387 |
Prepaid expenses and other current assets | 4,737 | 3,941 |
Deferred income tax asset, net | 546 | |
Total current assets | 502,627 | 488,155 |
Property and equipment, net | 14,180 | 10,428 |
Property held for sale | 6,113 | 7,152 |
Goodwill | 1,883 | 236,970 |
Intangible assets, net | 234,602 | 285,081 |
Deferred income tax asset, net | 19,453 | |
Other assets | 7,619 | 7,546 |
TOTAL ASSETS | 767,024 | 1,054,785 |
Current liabilities: | ||
Current portion of long-term debt | 14,482 | 14,466 |
Accounts payable | 106,790 | 90,011 |
Accrued expenses | 181,246 | 134,928 |
Total current liabilities | 302,518 | 239,405 |
Long-term debt | 302,916 | 339,200 |
Long-term liabilities | 64,558 | 61,449 |
Environmental remediation liability | 211 | 2,339 |
Deferred income tax liability | 1,536 | 7,325 |
Total liabilities | 671,739 | 649,718 |
Commitments and contingencies (Note 16) | ||
Shareholders' equity: | ||
Preferred stock, 2,000 shares authorized; no shares issued and outstanding | ||
Common stock, $.01 par value, 75,000 shares authorized at June 30, 2018 and June 30, 2017; 30,787 and 30,094 shares issued and outstanding at June 30, 2018 and 2017, respectively | 308 | 301 |
Capital in excess of par value | 222,599 | 214,198 |
(Accumulated deficit) retained earnings | (126,737) | 195,680 |
Accumulated other comprehensive loss | (885) | (5,112) |
Total shareholders' equity | 95,285 | 405,067 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 767,024 | $ 1,054,785 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Statement Of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful accounts (in dollars) | $ 987 | $ 485 |
Preferred stock, shares authorized | 2,000 | 2,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 75,000 | 75,000 |
Common stock, shares issued | 30,787 | 30,094 |
Common stock, shares outstanding | 30,787 | 30,094 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | |||
Net sales | $ 711,359 | $ 638,318 | $ 558,524 |
Cost of sales | 599,796 | 497,526 | 415,739 |
Gross profit | 111,563 | 140,792 | 142,785 |
Selling, general and administrative expenses | 122,376 | 102,340 | 76,820 |
Impairment charges | 256,266 | ||
Research and development expenses | 7,933 | 7,898 | 7,937 |
Operating (loss) income | (275,012) | 30,554 | 58,028 |
Other (expense) income: | |||
Interest expense | (20,855) | (15,770) | (6,997) |
Interest and other income, net | 3,045 | 2,577 | 2,823 |
Total other (expense) income | (17,810) | (13,193) | (4,174) |
(Loss) income before income taxes | (292,822) | 17,361 | 53,854 |
Income tax provision | 23,299 | 5,985 | 19,088 |
Net (loss) income | $ (316,121) | $ 11,376 | $ 34,766 |
Basic (loss) income per common share (in dollars per share) | $ (8.98) | $ 0.35 | $ 1.19 |
Diluted (loss) income per common share (in dollars per share) | $ (8.98) | $ 0.35 | $ 1.18 |
Weighted average shares outstanding: | |||
Basic (in shares) | 35,216 | 32,283 | 29,110 |
Diluted (in shares) | 35,216 | 32,632 | 29,581 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (316,121) | $ 11,376 | $ 34,766 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 1,857 | 1,780 | 368 |
Change in fair value of interest rate swaps | 2,420 | (581) | (149) |
Reclassification for realized loss on interest rate swap included in interest expense | 487 | ||
Defined benefit plans, net of tax of $(24), $7 and $31, respectively | (50) | 14 | 65 |
Total other comprehensive income | 4,227 | 1,213 | 771 |
Comprehensive (loss) income | $ (311,894) | $ 12,589 | $ 35,537 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Defined benefit plans, tax | $ (24) | $ 7 | $ 31 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities: | |||
Net (loss) income | $ (316,121) | $ 11,376 | $ 34,766 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||
Depreciation and amortization | 32,812 | 23,754 | 12,698 |
Amortization of debt issuance costs and debt discount | 6,181 | 5,847 | 3,496 |
Amortization of deferred financing costs | 1,116 | 570 | |
Provision for doubtful accounts | 516 | (3) | 76 |
Non-cash stock compensation | 7,782 | 6,956 | 6,719 |
Deferred income taxes | 13,643 | (504) | (18) |
Earnings on equity investment in joint venture | (2,173) | (2,336) | (2,060) |
Contingent consideration | (2,505) | (1,074) | |
Amortization of inventory step-up | 4,502 | ||
Environmental remediation charge | 1,822 | 903 | 1,313 |
Impairment charges | 256,266 | ||
Changes in assets and liabilities: | |||
Trade accounts receivable | 30,182 | (34,198) | (6,149) |
Other receivables | 2,108 | 185 | 136 |
Inventory | (22) | (2,958) | (2,489) |
Prepaid expenses and other current assets | (774) | 1,209 | (243) |
Other assets | (443) | (157) | (557) |
Accounts payable | 16,729 | (3,097) | (8,937) |
Accrued expenses and other liabilities | 52,195 | 30,610 | (7,689) |
Distributions from joint venture | 2,492 | 1,908 | 1,843 |
Net cash provided by operating activities | 101,806 | 44,567 | 31,831 |
Investing activities: | |||
Payment for net assets acquired | (270,000) | ||
Purchases of investments | (3,103) | (2,035) | (34) |
Sales of investments | 2,064 | 909 | 2,517 |
Payments for intangible assets | (1,471) | (3,359) | (11,249) |
Purchases of property and equipment, net | (5,771) | (1,893) | (1,128) |
Net cash used in investing activities | (8,281) | (276,378) | (9,894) |
Financing activities: | |||
Proceeds from exercise of stock options | 606 | 551 | 729 |
Excess income tax benefit on stock option exercises and restricted stock | 546 | 1,219 | |
Payment of cash dividends | (6,288) | (7,831) | (7,084) |
Payment of contingent consideration | (1,500) | ||
Proceeds from convertible senior notes | 143,750 | ||
Payment for debt issuance costs | (5,153) | ||
Proceeds from sold warrants | 13,685 | ||
Purchase of call option (hedge) | (27,174) | ||
Termination payment for interest rate swap | (420) | ||
Borrowings of bank loans | 275,000 | 15,500 | |
Payment for deferred financing costs | (5,407) | ||
Repayment of bank loans | (43,181) | (42,697) | (122,697) |
Net cash (used in) provided by financing activities | (48,863) | 220,162 | 10,855 |
Effect of foreign exchange rate changes on cash | 532 | 501 | 16 |
Net increase (decrease) in cash and cash equivalents | 45,194 | (11,148) | 32,808 |
Cash and cash equivalents at beginning of period | 55,680 | 66,828 | 34,020 |
Cash and cash equivalents at end of period | $ 100,874 | $ 55,680 | $ 66,828 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Common Stock | Capital in Excess of Par Value | (Accumulated Deficit) Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Jun. 30, 2015 | $ 292 | $ 93,807 | $ 164,603 | $ (7,096) | $ 251,606 |
Balance (in shares) at Jun. 30, 2015 | 29,147 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 34,766 | 34,766 | |||
Other comprehensive income | 771 | 771 | |||
Stock issued pursuant to employee stock incentive plans | 113 | 113 | |||
Stock issued pursuant to employee stock incentive plans (in shares) | 7 | ||||
Issuance of restricted stock, net of forfeitures | $ 3 | (3) | |||
Issuance of restricted stock, net of forfeitures (in shares) | 346 | ||||
Dividends declared $0.24,$0.26 and $0.205 per share for June 30, 2016, 2017 and 2018, respectively | (7,170) | (7,170) | |||
Share-based compensation | 6,697 | 6,697 | |||
Exercise of stock options | $ 1 | 728 | 729 | ||
Exercise of stock options (in shares) | 95 | ||||
Sale of warrants | 13,685 | 13,685 | |||
Purchase of call option (hedge) | (27,174) | (27,174) | |||
Allocation of proceeds from convertible senior notes | 27,241 | 27,241 | |||
Equity component of debt issuance costs | (976) | (976) | |||
Deferred taxes related to convertible senior notes | 330 | 330 | |||
Tax benefit from employee stock incentive plans | 1,219 | 1,219 | |||
Balance at Jun. 30, 2016 | $ 296 | 115,667 | 192,199 | (6,325) | 301,837 |
Balance (in shares) at Jun. 30, 2016 | 29,595 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | 11,376 | 11,376 | |||
Other comprehensive income | 1,213 | 1,213 | |||
Stock issued pursuant to employee stock incentive plans | 109 | 109 | |||
Stock issued pursuant to employee stock incentive plans (in shares) | 5 | ||||
Issuance of restricted stock, net of forfeitures | $ 4 | (4) | |||
Issuance of restricted stock, net of forfeitures (in shares) | 424 | ||||
Dividends declared $0.24,$0.26 and $0.205 per share for June 30, 2016, 2017 and 2018, respectively | (7,895) | (7,895) | |||
Share-based compensation | 6,930 | 6,930 | |||
Exercise of stock options | $ 1 | 550 | 551 | ||
Exercise of stock options (in shares) | 70 | ||||
Tax benefit from employee stock incentive plans | 546 | 546 | |||
Stock to be issued in connection with acquisition of assets of Citron and Lucid | 90,400 | 90,400 | |||
Balance at Jun. 30, 2017 | $ 301 | 214,198 | 195,680 | (5,112) | 405,067 |
Balance (in shares) at Jun. 30, 2017 | 30,094 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (316,121) | (316,121) | |||
Other comprehensive income | 4,227 | 4,227 | |||
Stock issued pursuant to employee stock incentive plans | 40 | 40 | |||
Stock issued pursuant to employee stock incentive plans (in shares) | 2 | ||||
Issuance of restricted stock, net of forfeitures | $ 6 | (6) | |||
Issuance of restricted stock, net of forfeitures (in shares) | 595 | ||||
Dividends declared $0.24,$0.26 and $0.205 per share for June 30, 2016, 2017 and 2018, respectively | (6,296) | (6,296) | |||
Share-based compensation | 7,762 | 7,762 | |||
Exercise of stock options | $ 1 | 605 | 606 | ||
Exercise of stock options (in shares) | 96 | ||||
Balance at Jun. 30, 2018 | $ 308 | $ 222,599 | $ (126,737) | $ (885) | $ 95,285 |
Balance (in shares) at Jun. 30, 2018 | 30,787 |
CONSOLIDATED STATEMENTS OF SHA9
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared, per share | $ 0.205 | $ 0.26 | $ 0.24 |
Description of Business
Description of Business | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Description of Business | (1) Description of Business Aceto Corporation and subsidiaries (“Aceto” or the “Company”) is primarily engaged in the sourcing, regulatory support, quality assurance, development, marketing, sales and distribution of finished dosage form generic pharmaceuticals, nutraceutical products, pharmaceutical intermediates and active ingredients, agricultural protection products and specialty chemicals used principally as finished products or raw materials in the pharmaceutical, nutraceutical, agricultural, coatings and industrial chemical consuming industries. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (2) Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions are eliminated in consolidation. Reclassifications Certain reclassifications between trade receivables and accrued expenses have been made to the prior period consolidated balance sheet to conform to the current year presentation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in those financial statements and the disclosure of contingent assets and liabilities at the date of the financial statements. These judgments can be subjective and complex, and consequently actual results could differ from those estimates and assumptions. The Company’s most critical accounting estimates relate to revenue recognition; allowance for doubtful accounts; inventory; goodwill and other indefinite-life intangible assets; long-lived assets; environmental matters and other contingencies; income taxes; stock-based compensation; and purchase price allocation. Cash and Cash Equivalents The Company considers all highly liquid debt instruments with original maturities at the time of purchase of three months or less to be cash equivalents. Included in cash equivalents as of June 30, 2018 and June 30, 2017 is $343 and $220, respectively, of restricted cash. Investments The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date. Inventory Inventory, which consists principally of finished goods, are stated at the lower of cost (first-in first-out method) and net realizable value. The Company writes down its inventory for estimated excess and obsolete goods by an amount equal to the difference between the carrying cost of the inventory and net realizable value based upon assumptions about future demand and market conditions. Environmental and Other Contingencies The Company establishes accrued liabilities for environmental matters and other contingencies when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. If the contingency is resolved for an amount greater or less than the accrual, or the Company’s share of the contingency increases or decreases, or other assumptions relevant to the development of the estimate were to change, the Company would recognize an additional expense or benefit in the consolidated statements of income in the period such determination was made. Pension Benefits In connection with certain historical acquisitions in Germany, the Company assumed defined benefit pension plans covering certain employees who meet certain eligibility requirements. The net pension benefit obligations recorded and the related periodic costs are based on, among other things, assumptions of the discount rate, estimated return on plan assets, salary increases and the mortality of participants. The obligation for these claims and the related periodic costs are measured using actuarial techniques and assumptions. Actuarial gains and losses are deferred and amortized over future periods. The Company’s plans are funded in conformity with the funding requirements of applicable government regulations. Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss as of June 30, 2018 and 2017 are as follows: 2018 2017 Cumulative foreign currency translation adjustments $ (2,483 ) $ (4,340 ) Fair value of interest rate swaps 1,839 (581 ) Defined benefit plans, net of tax (241 ) (191 ) Total $ (885 ) $ (5,112 ) The foreign currency translation adjustments for the years ended June 30, 2018 and 2017 primarily relate to the fluctuation of the conversion rate of the Euro. The currency translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-US subsidiaries. Common Stock At the annual meeting of shareholders of the Company, held on December 15, 2015, the Company’s shareholders approved the proposal to amend Aceto’s Certificate of Incorporation to increase the total number of authorized shares of common stock from 40,000 shares to 75,000 shares. Cash dividends of $0.065 per common share were paid in September, December, March of fiscal year 2018 and a cash dividend of $0.01 per common share was paid in June of fiscal year 2018. Cash dividends of $0.065 per common share were paid in September, December, March and June of fiscal year 2017. Cash dividends of $0.06 per common share were paid in September, December, March and June of fiscal year 2016. On September 6, 2018, the Company's board of directors declared a regular quarterly dividend of $.01 per share to be distributed on October 9, 2018 to shareholders of record as of September 24, 2018. On May 4, 2017, the Board of Directors of the Company authorized the continuation of the Company’s stock repurchase program, expiring in May 2020. Under the stock repurchase program, the Company is authorized to purchase up to 5,000 shares of common stock in open market or private transactions, at prices not to exceed the market value of the common stock at the time of such purchase. The Company did not repurchase shares in fiscal 2018 or fiscal 2017. The Board of Directors has authority under the Company’s Restated Certificate of Incorporation to issue shares of preferred stock with voting and other relative rights to be determined by the Board of Directors. Stock-based Compensation GAAP requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award. GAAP also requires that excess tax benefits related to stock option exercises be reflected as operating cash inflows. All restricted stock grants include a service requirement for vesting. The Company has also granted restricted stock units that include either a performance or market condition. The fair value of restricted stock unit with either solely a service requirement or with the combination of service and performance requirements is based on the closing fair market value of Aceto’s common stock on the date of grant. The fair value of market condition-based awards is estimated at the date of grant using a binomial lattice model or Monte Carlo Simulation. All models incorporate various assumptions such as the risk-free interest rate, expected volatility, expected dividend yield and expected life of the awards. Stock-based compensation expense is recognized on a straight-line basis over the service period or over our best estimate of the period over which the performance condition will be met, as applicable. Revenue Recognition The Company recognizes revenue from product sales at the time of shipment and passage of title and risk of loss to the customer. The Company has no acceptance or other post-shipment obligations and does not offer product warranties or services to its customers. Sales are recorded net of estimated returns of damaged goods from customers, which historically have been immaterial, and sales incentives offered to customers. Sales incentives include volume incentive rebates. The Company records volume incentive rebates based on the underlying revenue transactions that result in progress by the customer in earning the rebate. The Company has arrangements with various third parties, such as drug store chains and managed care organizations, establishing prices for its finished dosage form generics. While these arrangements are made between Aceto and its customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with the Company’s concurrence, which establishes the pricing for certain products which the wholesalers provide. Upon each sale of finished dosage form generics, estimates of chargebacks, rebates, returns, government reimbursed rebates, sales discounts and other adjustments are made. These estimates are based on historical experience, future expectations, contractual arrangements with wholesalers and indirect customers, and other factors known to management at the time of accrual. These estimates are recorded as reductions to gross revenues, with corresponding adjustments either as a reduction of accounts receivable or as a liability for price concessions. Under certain arrangements, Rising will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract price. As sales to the large wholesale customers increase or decrease, the reserve for chargebacks will also generally increase or decrease. The provision for chargebacks varies in relation to changes in sales volume, product mix, pricing and the level of inventory at the wholesalers. The Company continually monitors the reserve for chargebacks and makes adjustments when management believes that expected chargebacks may differ from the actual chargeback reserve. The Company estimates its provision for returns of finished dosage generics based on historical experience, product expiration dates, changes to business practices, credit terms and any extenuating circumstances known to management. While historical experience has allowed for reasonable estimations in the past, future returns may or may not follow historical trends. The Company continually monitors the reserve for returns and makes adjustments when management believes that actual product returns may differ from the established reserve. Generally, the reserve for returns increases as net sales increase. Government rebate accruals are based on estimated payments due to governmental agencies for purchases made by third parties under various governmental programs. Other rebates are offered to the Company’s key chain drug store, distributor and wholesaler customers to promote customer loyalty and increase product sales. These rebate programs provide customers with credits upon attainment of pre-established volumes or attainment of net sales milestones for a specified period. Other promotional programs are incentive programs offered to the customers. The Company provides a provision for government reimbursed rebates and other rebates at the time of sale based on contracted rates and historical redemption rates. Assumptions used to establish the provision include level of customer inventories, contract sales mix and average contract pricing. Aceto regularly reviews the information related to these estimates and adjusts the provision accordingly. Sales discount accruals are based on payment terms extended to customers. The following table summarizes activity in the consolidated balance sheet for contra assets and liability for price concessions for the years ended June 30, 2018, 2017 and 2016: Accruals for Chargebacks, Rebates, Returns and Other Allowances Government Non-Governmental Sales Chargebacks Returns Reimbursed Rebates Rebates & Other Discounts Balance at June 30, 2015 $ 32,167 $ 30,692 $ 938 $ 4,335 $ 2,682 Current year provision 247,186 7,618 5,124 90,915 10,267 Credits issued during the year (256,638 ) (15,482 ) (4,750 ) (88,048 ) (10,526 ) Balance at June 30, 2016 $ 22,715 $ 22,828 $ 1,312 $ 7,202 $ 2,423 Acquisitions 23,526 1,496 4,500 28,944 2,360 Current year provision 431,606 19,666 7,694 178,623 20,129 Credits issued during the year (417,928 ) (11,631 ) (4,642 ) (158,836 ) (18,875 ) Balance at June 30, 2017 $ 59,919 $ 32,359 $ 8,864 $ 55,933 $ 6,037 Current year provision 594,258 26,228 21,258 229,453 21,573 Credits issued during the year (587,490 ) (17,076 ) (20,464 ) (199,127 ) (21,202 ) Balance at June 30, 2018 $ 66,687 $ 41,511 $ 9,658 $ 86,259 $ 6,408 Credits issued during a given period represent cash payments or credit memos issued to the Company’s customers as settlement for the related reserve. Management has the experience and access to relevant information that it believes is necessary to reasonably estimate the amounts of such deductions from gross revenues. The Company regularly reviews the information related to these estimates and adjusts its reserves accordingly, if and when actual experience differs from previous estimates. The Company has not experienced any significant changes in its estimates as it relates to its chargebacks, rebates, sales discounts or product returns in each of the years in the three year period ended June 30, 2018. Partnered Products The Company has various products that are subject to one of two types of collaborative arrangements with certain pharmaceutical companies. One type of arrangement relates to the Company’s finished dosage form generics business acting strictly as a distributor and purchasing products at arm’s length; in that type of arrangement, there is no profit sharing element. The second type of collaborative arrangement results in a profit sharing agreement between the Company and a developer and/or manufacturer of a finished dosage form generic drug. Both types of collaborative arrangements are conducted in the ordinary course of Rising’s business. The nature and purpose of both of these arrangements is for the Company to act as a distributor of finished dose products to its customers. Under these arrangements, the Company maintains distribution rights with respect to specific drugs within the U.S. marketplace. Generally, the distribution rights are exclusive rights in the territory. In certain arrangements, the Company is required to maintain service level minimums including, but not limited to, market share and purchase levels, in order to preserve the exclusive rights. The Company’s accounting policy with respect to these collaborative arrangements calls for the Company to present the sales and associated costs on a gross basis, with the amounts of the shared profits earned by the pharmaceutical companies on sales of these products, if applicable, included in cost of sales in the consolidated statements of income. The shared profits are settled on a quarterly basis. For each of the fiscal years 2018, 2017 and 2016, there was approximately $61,587, $54,454 and $41,036 respectively, of shared profits included in cost of sales, related to these types of collaborative arrangements. In the case of a collaborative arrangement where the Company solely acts as a distributor and purchases product at arm’s length, the costs of those purchases are included as a cost of sales similar to any other purchase arrangement. Shipping and Handling Fees and Costs All amounts billed to a customer in a sales transaction related to shipping and handling represent revenues earned and are included in net sales. The costs incurred by the Company for shipping and handling are reported as a component of cost of sales. Cost of sales also includes inbound freight, receiving, inspection, warehousing, distribution network, and customs and duty costs. Net (Loss) Income Per Common Share Basic (loss) income per common share is based on the weighted average number of common shares outstanding during the period. Diluted income per common share includes the dilutive effect of potential common shares outstanding. The following table sets forth the reconciliation of weighted average shares outstanding and diluted weighted average shares outstanding for the fiscal years ended June 30, 2018, 2017 and 2016: 2018 2017 2016 Weighted average shares outstanding 35,216 32,283 29,110 Dilutive effect of stock options and restricted stock awards and units - 349 471 Diluted weighted average shares outstanding 35,216 32,632 29,581 The effect of approximately 149 common equivalent shares for the year ended June 30, 2018 was excluded from the diluted weighted average shares outstanding due to a net loss for the year. There were 386 common equivalent shares outstanding for the year ended June 30, 2018 that were not included in the calculation of diluted net income per common share because their effect would have been anti-dilutive. The Convertible Senior Notes (see Note 9) will only be included in the dilutive net (loss) income per share calculations using the treasury stock method during periods in which the average market price of Aceto’s common stock is above the applicable conversion price of the Convertible Senior Notes, or $33.215 per share, and the impact would not be anti-dilutive. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company assesses the need to record a valuation allowance against its deferred tax assets based on the consideration of all available positive and negative evidence, using a more likely than not standard. This assessment considers, among other matters, recent losses; a forecast of future income or losses; the ability to carryback and carryforward losses; the Company's experience with tax attributes expiring unused; and tax planning strategies. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. Interest and penalties recognized on the liability for unrecognized tax benefits is recorded as income tax expense. Property and Equipment Property and equipment are stated at cost and are depreciated using the straight line method over the estimated useful lives of the related asset. The Company allocates depreciation and amortization to cost of sales. Expenditures for improvements that extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in income. The components of property and equipment were as follows: June 30, 2018 June 30, 2017 Estimated useful Machinery and equipment $ 1,198 $ 398 3-7 Leasehold improvements 2,641 979 Shorter of asset life Computer equipment and software 9,589 7,255 3-5 Furniture and fixtures 2,638 2,094 5-10 Automobiles 194 184 3 Building 8,652 8,678 20 Land 1,958 1,967 - 26,870 21,555 Accumulated depreciation and amortization 12,690 11,127 $ 14,180 $ 10,428 Property held for sale represents land and land improvements of $6,113 and $7,152 at June 30, 2018 and 2017, respectively. See Note 8, “Environmental Remediation” for further discussion on property held for sale. Depreciation and amortization of property and equipment amounted to $2,006, $1,520 and $1,522 for the years ended June 30, 2018, 2017, and 2016 respectively. Goodwill and Other Intangibles Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Other intangible assets principally consist of customer relationships, license agreements, technology-based intangibles, EPA registrations and related data, trademarks and product rights and related intangibles. Goodwill and other intangible assets that have an indefinite life are not amortized. The Company accounts for goodwill and intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. During the third quarter of fiscal 2018, the Company’s Rising Pharmaceuticals reporting unit (which is part of the Human Health segment) had a decline in actual and forecasted revenue and earnings due to the persistent adverse conditions in the generics market. In addition, as previously discussed, the Company was notified by the U.S. government that 11 generic drug products it acquired through its Acetris Health subsidiary (part of the Rising reporting unit which is part of the Human Health segment) in a product purchase agreement with an entity formerly known as Lucid Pharma LLC were not in compliance with the federal Trade Agreement Act country-of-origin provisions of a clause contained in the government supply contracts acquired from Lucid. Based on these indicators, the Company determined that it was necessary to perform an interim goodwill impairment analysis at March 31, 2018 for its Rising reporting unit. The Company elected to early adopt Accounting Standards Update (“ASU”) 2017-04, Intangibles- Goodwill and Other (Topic 350), The fair value of the Rising reporting unit was estimated using many assumptions and estimates and a market participant approach that directly impacts the results of the testing. In making these assumptions and estimates, the Company used industry accepted valuation models and set criteria that were reviewed and approved by various levels of management. Accordingly, with respect to the third quarter of fiscal 2018, the Company recognized a pre-tax non-cash goodwill impairment charge of $235,110 related to the Rising reporting unit. In accordance with GAAP, the Company tests goodwill and other indefinite life intangible assets for impairment on at least an annual basis. Goodwill impairment exists if the net book value of a reporting unit exceeds its estimated fair value. Initially, an assessment of qualitative factors is conducted in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. To determine the fair value of these intangible assets, the Company uses many assumptions and estimates using a market participant approach that directly impact the results of the testing. In making these assumptions and estimates, the Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. There was no impairment of goodwill and other intangible assets in fiscal 2017 and fiscal 2016. Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of Long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Measurements based on undiscounted cash flows are Level 3 inputs. As noted above, during the third quarter of fiscal 2018, the Company’s Rising Pharmaceuticals subsidiary had a decline in actual and forecasted revenue and earnings and therefore the Company performed an impairment test on the related intangibles. The projected undiscounted cash flows for certain intangibles were determined to be less than the carrying value, and as a result, the Company recognized an impairment charge of $5,745 in the third quarter of fiscal 2018. Additionally, as previously noted, the Company was notified by the U.S. government that 11 generic drug products it acquired through its Acetris Health subsidiary in a product purchase agreement with an entity formerly known as Lucid Pharma LLC are not in compliance with the federal Trade Agreement Act country-of-origin provisions of a clause contained in the government supply contracts acquired from Lucid. Based on this, the Company performed an impairment test on the related intangible asset and recognized an impairment charge of $15,411 on the customer relationships intangible asset in the third quarter of fiscal 2018. There were no impairment charges in fiscal 2017 and 2016. Recoverability of assets held for sale is measured by comparing the carrying amount of the assets to their estimated fair value. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. Accounting for Derivatives and Hedging Activities The Company accounts for derivatives and hedging activities under the provisions of GAAP which establishes accounting and reporting guidelines for derivative instruments and hedging activities. GAAP requires the recognition of all derivative financial instruments as either assets or liabilities in the statement of financial condition and measurement of those instruments at fair value. Changes in the fair values of those derivatives are reported in earnings or other comprehensive income depending on the designation of the derivative and whether it qualifies for hedge accounting. The accounting for gains and losses associated with changes in the fair value of a derivative and the effect on the consolidated financial statements depends on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value or cash flows of the asset or liability hedged. The method that is used for assessing the effectiveness of a hedging derivative, as well as the measurement approach for determining the ineffective aspects of the hedge, is established at the inception of the hedged instrument. The Company operates internationally, therefore its earnings, cash flows and financial positions are exposed to foreign currency risk from foreign-currency-denominated receivables and payables, which, in the U.S., have been denominated in various foreign currencies, including, among others, Euros, British Pounds, Japanese Yen, Singapore Dollars and Chinese Renminbi and at certain foreign subsidiaries in U.S. dollars and other non-local currencies. Management believes it is prudent to minimize the risk caused by foreign currency fluctuation. Management minimizes the currency risk on its foreign currency receivables and payables by purchasing foreign currency contracts (futures) with one of its financial institutions. Futures are traded on regulated U.S. and international exchanges and represent commitments to purchase or sell a particular foreign currency at a future date and at a specific price. Since futures are purchased for the amount of the foreign currency receivable or for the amount of foreign currency needed to pay for specific purchase orders, and the futures mature on the due date of the related foreign currency vendor invoices or customer receivables, the Company believes that it eliminates risks relating to foreign currency fluctuation. The Company takes delivery of all futures to pay suppliers in the appropriate currency. The gains or losses for the changes in the fair value of the foreign currency contracts are recorded in cost of sales (sales) and offset the gains or losses associated with the impact of changes in foreign exchange rates on trade payables (receivables) denominated in foreign currencies. Senior management and members of the financial department continually monitor foreign currency risks and the use of this derivative instrument. In conjunction with its existing credit agreement (see Note 9), the Company entered into an interest rate swap on March 21, 2017 for an additional interest cost of 2.005% on a notional amount of $100,000, which has been designated as a cash flow hedge The expiration date of this interest rate swap is December 21, 2021. Foreign Currency The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars in accordance with GAAP. Where the functional currency of a foreign subsidiary is its local currency, balance sheet accounts are translated at the current exchange rate and income statement items are translated at the average exchange rate for the period. Exchange gains or losses resulting from the translation of financial statements of foreign operations are accumulated in other comprehensive income. Where the local currency of a foreign subsidiary is not its functional currency, financial statements are translated at either current or historical exchange rates, as appropriate. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | (3) Business Combinations On December 21, 2016, wholly owned subsidiaries of Rising Pharmaceuticals, Inc. (“Rising”), a wholly owned subsidiary of Aceto, completed the acquisition of certain generic products and related assets of entities formerly known as Citron Pharma LLC (“Citron”) and its affiliate Lucid Pharma LLC (“Lucid”). Citron was a privately-held New Jersey-based pharmaceutical company focused on developing and marketing generic pharmaceutical products in partnership with leading generic pharmaceutical manufacturers based in India and the United States. Lucid was a privately-held New Jersey-based generic pharmaceutical distributor specializing in providing cost-effective products to various agencies of the U.S. Federal Government including the Veterans Administration and the Defense Logistics Agency. Lucid serviced 18 national contracts with the Federal Government. Aceto and Citron possess complementary asset-light business models, drug development and manufacturing partnerships and product portfolios. The Company believes consistent with its strategy of expanding Rising’s portfolio of finished dosage form generic products through product development partnerships and acquisitions of late stage assets, abbreviated new drug applications (“ANDAs”) and complementary generic drug businesses, this transaction significantly expanded its roster of commercialized products and pipeline of products under development. In addition, the Company believes that this product acquisition greatly enhanced its size and stature within the generic pharmaceutical industry, expanded its partnership network and offers the Company opportunities to realize meaningful cost and tax efficiencies. At closing, Aceto paid the sellers $270,000 in cash, committed to make a $50,000 unsecured deferred payment that bears interest at a rate of 5% per annum to the sellers on December 21, 2021 and agreed to issue 5,122 shares of Aceto common stock beginning on December 21, 2019. The product purchase agreement also provides the sellers with a 5-year potential earn-out of up to an additional $50,000 in cash, based on the financial performance of four pre-specified pipeline products that are currently in development. In the third quarter of fiscal 2018, the Company reversed $2,505 of contingent consideration due to management’s evaluation and assessment of the financial performance of these products. As of June 30, 2018, the Company accrued $683 related to this contingent consideration. The product acquisition was accounted for using the purchase method of accounting. The following table summarizes the allocation of the purchase price to the estimated fair values of the assets acquired and liabilities assumed on the closing date of December 21, 2016: Trade receivables $ 78,937 Inventory 38,995 Prepaid expenses and other current assets 1,425 Goodwill 169,071 Intangible assets 224,850 Total assets acquired 513,278 Accounts payable 46,840 Accrued expenses 53,458 Deferred payment 50,000 Contingent consideration 2,580 Net assets acquired $ 360,400 The fair values of the net assets acquired were determined using discounted cash flow analyses and estimates made by management. The preliminary purchase price was allocated to intangible assets as follows: approximately $169,071 to goodwill, which is nonamortizable under generally accepted accounting principles and is deductible for income tax purposes; approximately $135,700 of product rights, amortizable over a period of approximately ten years; approximately $88,800 of customer relationships, amortizable over approximately eleven years; and approximately $350 of trademarks, amortizable over a period of approximately six months. Amortization of the acquired intangible assets is deductible for income tax purposes. Goodwill represents the excess of the preliminary purchase price paid over the fair value of the underlying net assets acquired and was allocated to the Human Health Segment. The Company recorded $250,521 of impairment charges on goodwill and intangible assets during the year ended June 30, 2018 related to this product acquisition (see Note 2). As part of the product acquisition, the Company entered into an Administrative Services Agreement with the sellers in which excess cash payments may be made by either of the parties in connection with certain liabilities assumed upon the closing of the transaction related to rebates, chargebacks, commercial rebates and Medicaid and other government rebates. As of the closing date, the Company is responsible for the processing and administration of these related adjustments to sales completed prior to the closing date. In general, (i) if the amounts reserved for these liabilities underestimate the amounts that the Company is required to pay with respect to these items, the sellers will be required to reimburse the Company for the difference and (ii) if the amounts reserved for these liabilities overestimate the amounts that the Company is required to pay, the Company will be required to reimburse the sellers for the difference. Settlement is to be made two years after the closing date of December 21, 2016 . For the period from December 22, 2016 to June 30, 2017, net sales and income before income taxes from the product acquisition was approximately $122,118 and $7,437, respectively, which have been included in the Consolidated Statement of Operations for the year ended June 30, 2017. The following represents unaudited pro forma operating results as if the operations of Rising Health and Acetris Health had been included in the Company’s consolidated statements of operations as of July 1, 2015. Year ended June 30, 2017 2016 Net sales $ 739,318 $ 731,100 Net income 24,166 30,469 Basic net income per common share $ 0.70 $ 0.89 Diluted net income per common share $ 0.69 $ 0.88 The pro forma financial information includes business combination accounting effects from the product acquisition including amortization charges from acquired intangible assets of approximately $21,000 for both periods presented, increase in interest expense of approximately $13,200 for both periods presented associated with bank borrowings to fund the product acquisition and interest expense associated with the deferred payment to the sellers, $4,502 step-up in the fair value of the acquired inventory in the year ended June 30, 2016, reversal of acquisition related transaction costs of $8,818 and tax related effects in both periods. The unaudited pro forma information as presented above is for informational purposes only and is not indicative of the results of operations that would have been achieved if the product acquisition had taken place at the beginning of fiscal 2016. |
Investments
Investments | 12 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Investments | (4) Investments A summary of short-term investments was as follows: June 30, 2018 June 30, 2017 Held to Maturity Investments Time deposits $ 3,030 $ 2,046 Short-term investments consist of time deposits that the Company classifies as held-to-maturity and are recorded at cost plus accumulated interest. The Company has classified all investments with maturity dates of greater than three months as current since it has the ability to redeem them within the year and amounts are available for current operations. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | (5) Fair Value Measurements GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly fashion between market participants at the measurement date. GAAP establishes a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and the Company’s assumptions (unobservable inputs). The hierarchy consists of three levels: Level 1 – Quoted market prices in active markets for identical assets or liabilities; Level 2 – Inputs other than Level 1 inputs that are either directly or indirectly observable; and Level 3 – Unobservable inputs that are not corroborated by market data. On a recurring basis, Aceto measures at fair value certain financial assets and liabilities, which consist of cash equivalents, investments and foreign currency contracts. The Company classifies cash equivalents and investments within Level 1 if quoted prices are available in active markets. Level 1 assets include instruments valued based on quoted market prices in active markets which generally include corporate equity securities publicly traded on major exchanges. Time deposits are very short-term in nature and are accordingly valued at cost plus accrued interest, which approximates fair value, and are classified within Level 2 of the valuation hierarchy. The Company uses foreign currency futures contracts to minimize the risk caused by foreign currency fluctuation on its foreign currency receivables and payables by purchasing futures with one of its financial institutions. Futures are traded on regulated U.S. and international exchanges and represent commitments to purchase or sell a particular foreign currency at a future date and at a specific price. Aceto’s foreign currency derivative contracts are classified within Level 2 as the fair value of these hedges is primarily based on observable futures foreign exchange rates. At June 30, 2018, the Company had foreign currency contracts outstanding that had a notional amount of $56,108. Unrealized gains (losses) on hedging activities for the years ended June 30, 2018, 2017, and 2016, amounted to $244, $(515) and $(10), respectively, and are included in interest and other income, net, in the consolidated statements of income. The contracts have varying maturities of less than one year. In conjunction with its existing credit agreement (see Note 9), the Company entered into an interest rate swap on March 21, 2017 for an additional interest cost of 2.005% on a notional amount of $100,000, which has been designated as a cash flow hedge The expiration date of this interest rate swap is December 21, 2021. The remaining balance of this derivative as of June 30, 2018 is $85,000. The unrealized gain to date associated with this derivative, which is recorded in accumulated other comprehensive loss in the consolidated balance sheet at June 30, 2018, is $1,839. Aceto’s interest rate swaps are classified within Level 2 as the fair value of this hedge is primarily based on observable interest rates. At June 30, 2018, the Company had $683 of contingent consideration, all of which related to the acquisition of certain products and related assets of Citron and Lucid, which was completed in December 2016 (see Note 3). The contingent consideration related to a previously acquired company in France was settled in fiscal 2018. At June 30, 2017, the Company had $2,952 of contingent consideration, $2,807 of which related to the acquisition of certain products and related assets of Citron and Lucid and $145 of contingent consideration related to a previously acquired company in France. The contingent consideration was calculated using the present value of a probability weighted income approach. Changes in contingent consideration during 2018 and 2017 are as follows: Balance as of June 30, 2016 $ 132 Acquisitions 2,580 Accrued interest expense 237 Change in foreign currency exchange rate 3 Balance as of June 30, 2017 $ 2,952 Reversal of fair value of liability (2,505 ) Accrued interest expense 386 Settlement (145 ) Change in foreign currency exchange rate (5 ) Balance as of June 30, 2018 $ 683 During the fourth quarter of each year or whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, the Company evaluates goodwill for impairment at the reporting unit level using a market participant approach using Level 3 inputs. Additionally, on a nonrecurring basis, the Company uses fair value measures when analyzing asset impairment. The Company recorded $235,110 of impairment charges on goodwill during the year ended June 30, 2018 (see Note 2). No impairment charges were recorded during the years ended June 30, 2017 or 2016. Long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Measurements based on undiscounted cash flows are considered to be Level 3 inputs. The Company recorded $21,156 of impairment charges on intangible assets during the year ended June 30, 2018 (see Note 2). No impairment charges were recorded during the years ended June 30, 2017 or 2016. In November 2015, the Company issued $143,750 aggregate principal amount of Notes (see Note 9). Since Aceto has the option to settle the potential conversion of the Notes in cash, the Company separated the embedded conversion option feature from the debt feature and accounts for each component separately, based on the fair value of the debt component assuming no conversion option. The calculation of the fair value of the debt component required the use of Level 3 inputs and was determined by calculating the fair value of similar non-convertible debt, using a theoretical borrowing rate of 6.5%. The value of the embedded conversion option was determined using an expected present value technique (income approach) to estimate the fair value of similar non-convertible debt onvertible investors’ credit assumptions and high yield bond indices. The carrying amount of the Notes approximate a fair value of $112,000 at June 30, 2018 and $133,000 at June 30, 2017 giving effect for certain factors, including the term of the Notes, current stock price of Aceto stock and effective interest rate. capital in excess of par value The carrying values of all financial instruments classified as a current asset or current liability are deemed to approximate fair value because of the short maturity of these instruments. The fair values of the Company’s notes receivable and short-term and long-term bank loans were based upon current rates offered for similar financial instruments to the Company. The following tables summarize the valuation of the Company’s financial assets and liabilities which were determined by using the following inputs at June 30, 2018 and 2017: Fair Value Measurements at June 30, 2018 Using Quoted Prices Significant Significant Total Cash equivalents: Time deposits - $ 3,218 - $ 3,218 Investments: Time deposits - 3,030 - 3,030 Foreign currency contracts-assets (1) - 362 - 362 Foreign currency contracts-liabilities (2) - 304 - 304 Derivative asset for interest rate swap (3) 1,839 1,839 Contingent consideration (4) - - $ 683 683 (1) Included in “Other receivables” in the accompanying Consolidated Balance Sheet as of June 30, 2018. (2) Included in “Accrued expenses” in the accompanying Consolidated Balance Sheet as of June 30, 2018. (3) Included in “Other Assets” in the accompanying Consolidated Balance Sheet as of June 30, 2018. (4) Included in “Long-term liabilities” in the accompanying Consolidated Balance Sheet as of June 30, 2018. Fair Value Measurements at June 30, 2017 Using Quoted Prices (Level 1) Significant (Level 2) Significant Unobservable (Level 3) Total Cash equivalents: Time deposits - $ 5,781 - $ 5,781 Investments: Time deposits - 2,046 - 2,046 Foreign currency contracts-assets (5) - 486 - 486 Foreign currency contracts-liabilities (6) - 137 - 137 Derivative liability for interest rate swap (7) 581 581 Contingent consideration (8) - - $ 2,952 2,952 (5) Included in “Other receivables” in the accompanying Consolidated Balance Sheet as of June 30, 2017. (6) Included in “Accrued expenses” in the accompanying Consolidated Balance Sheet as of June 30, 2017. (7) Included in “Long-term liabilities” in the accompanying Consolidated Balance Sheet as of June 30, 2017. (8) $145 included in “Accrued expenses” and $2,807 included in “Long-term liabilities” in the accompanying Consolidated Balance Sheet as of June 30, 2017. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | (6) Goodwill and Other Intangible Assets As of June 30, 2018, and June 30, 2017, there was goodwill of $1,883 and $236,970 respectively. Changes in the Company's goodwill during 2018 and 2017 are as follows: Human Health Segment Pharmaceutical Ingredients Segment Performance Chemicals Segment Total Goodwill Balance as of June 30, 2016 $ 66,039 $ 1,651 $ 181 $ 67,871 Acquisitions 169,071 - - 169,071 Changes in foreign currency exchange rates - 23 5 28 Balance as of June 30, 2017 $ 235,110 $ 1,674 $ 186 $ 236,970 Impairment (235,110 ) - - (235,110 ) Changes in foreign currency exchange rates - 18 5 23 Balance as of June 30, 2018 $ - $ 1,692 $ 191 $ 1,883 The Company recorded $235,110 of impairment charges on goodwill during the year ended June 30, 2018 (see Note 2). No impairment charges were recorded during the years ended June 30, 2017 or 2016. Intangible assets subject to amortization as of June 30, 2018 and 2017 were as follows: Gross Accumulated Net Book June 30, 2018 Customer relationships $ 94,287 $ 21,615 $ 72,672 Trademarks 82 74 8 Product rights and related intangibles 212,749 54,094 158,655 License agreements 937 866 71 EPA registrations and related data 14,527 12,131 2,396 $ 322,582 $ 88,780 $ 233,802 Gross Accumulated Net Book June 30, 2017 Customer relationships $ 110,787 $ 13,968 $ 96,819 Trademarks 2,218 2,195 23 Product rights and related intangibles 221,335 37,677 183,658 License agreements 6,537 6,035 502 EPA registrations and related data 14,307 11,011 3,296 $ 355,184 $ 70,886 $ 284,298 Intangible assets with definitive useful lives are amortized using the straight-line method over their estimated useful lives. The straight-line method is utilized as it best reflects the use of the asset. The estimated useful lives of customer relationships, trademarks, product rights and related intangibles, license agreements and EPA registrations are 7-11 years, 3-4 years, 3-14 years, 6-11 years and 10 years respectively. As of June 30, 2018 and June 30, 2017, the Company also had $800 and $783, respectively, of intangible assets pertaining to trademarks which have indefinite lives and are not subject to amortization. The change in trademarks with indefinite lives is attributable to foreign currency exchange rates used to translate the financial statements of foreign subsidiaries. The Company recorded $21,156 of impairment charges on intangible assets during the year ended June 30, 2018 (see Note 2). No impairment charges were recorded during the years ended June 30, 2017 or 2016. Amortization expense for intangible assets subject to amortization amounted to $30,806, $22,234 and $11,176 for the years ended June 30, 2018, 2017 and 2016, respectively. The estimated aggregate amortization expense for intangible assets subject to amortization for each of the succeeding years ending June 30, 2019 through June 30, 2024 are as follows: 2019: $29,046; 2020: $28,556; 2021: $28,474; 2022: $28,409; 2023: $28,246 and 2024 and thereafter: $91,071. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Accrued Expenses | (7) Accrued Expenses The components of accrued expenses as of June 30, 2018 and 2017 were as follows: 2018 2017 Accrued compensation $ 5,563 $ 5,793 Accrued environmental remediation costs-current portion 5,535 6,112 Reserve for price concessions 137,428 97,156 Partnered product liabilities 14,880 16,068 Other accrued expenses 17,840 9,799 $ 181,246 $ 134,928 |
Environmental Remediation
Environmental Remediation | 12 Months Ended |
Jun. 30, 2018 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Remediation | (8) Environmental Remediation In fiscal years 2011, 2009, 2008 and 2007, the Company received letters from the Pulvair Site Group, a group of potentially responsible parties (PRP Group) who are working with the State of Tennessee (the State) to remediate a contaminated property in Tennessee called the Pulvair site. The PRP Group has alleged that Aceto shipped hazardous substances to the site which were released into the environment. The State had begun administrative proceedings against the members of the PRP Group and Aceto with respect to the cleanup of the Pulvair site and the PRP Group has begun to undertake cleanup. The PRP Group is seeking a settlement of approximately $1,700 from the Company for its share to remediate the site contamination. Although the Company acknowledges that it shipped materials to the site for formulation over twenty years ago, the Company believes that the evidence does not show that the hazardous materials sent by Aceto to the site have significantly contributed to the contamination of the environment and thus believes that, at most, it is a de minimis contributor to the site contamination. Accordingly, the Company believes that the settlement offer is unreasonable. Management believes that the ultimate outcome of this matter will not have a material adverse effect on the Company's financial condition or liquidity. The Company has environmental remediation obligations in connection with Arsynco, Inc. (“Arsynco”), a subsidiary formerly involved in manufacturing chemicals located in Carlstadt, New Jersey, which was closed in 1993 and is currently held for sale. Based on continued monitoring of the contamination at the site and the approved plan of remediation, Arsynco received an estimate from an environmental consultant stating that the costs of remediation could be between $22,900 and $24,700. Remediation commenced in fiscal 2010, and as of June 30, 2018 and June 30, 2017, a liability of $5,746 and $8,451, respectively, is included in the accompanying consolidated balance sheets for this matter. For the year ended June 30, 2018, the Company recorded environmental remediation charges of $1,822, which is included in selling, general and administrative expenses in the accompanying consolidated statements of income for the year ended June 30, 2018. In accordance with GAAP, management believes that the majority of costs incurred to remediate the site will be capitalized in preparing the property which is currently classified as held for sale. In June 2018, the Company entered into an agreement to sell the Arsynco property to an unrelated third party for $6,340. The sale is subject to due diligence by the buyer and the Company is not sure when or if the sale will close. The sale price supports the assumption that the expected fair value after the remediation is in excess of the amount required to be capitalized. However, these matters, if resolved in a manner different from those assumed in current estimates, could have a material adverse effect on the Company’s financial condition, operating results and cash flows when resolved in a future reporting period. In connection with the environmental remediation obligation for Arsynco, in July 2009, Arsynco entered into a settlement agreement with BASF Corporation (“BASF”), the former owners of the Arsynco property. In accordance with the settlement agreement, BASF paid for a portion of the prior remediation costs and going forward, will co-remediate the property with the Company. The contract requires that BASF pay $550 related to past response costs and pay a proportionate share of the future remediation costs. Accordingly, the Company had recorded a gain of $550 in fiscal 2009. This $550 gain relates to the partial reimbursement of costs of approximately $1,200 that the Company had previously expensed. The Company also recorded an additional receivable from BASF, with an offset against property held for sale, representing its estimated portion of the future remediation costs. The balance of this receivable for future remediation costs as of June 30, 2018 and June 30, 2017 is $2,586 and $3,803, respectively, which is included in the accompanying consolidated balance sheets. In March 2006, Arsynco received notice from the EPA of its status as a PRP under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) for a site described as the Berry’s Creek Study Area (“BCSA”). Arsynco is one of over 150 PRPs which have potential liability for the required investigation and remediation of the site. The estimate of the potential liability is not quantifiable for a number of reasons, including the difficulty in determining the extent of contamination and the length of time remediation may require. In addition, any estimate of liability must also consider the number of other PRPs and their financial strength. In July 2014, Arsynco received notice from the U.S. Department of Interior (“USDOI”) regarding the USDOI’s intent to perform a Natural Resource Damage (NRD) Assessment at the BCSA. Arsynco has to date declined to participate in the development and performance of the NRD assessment process. Based on prior practice in similar situations, it is possible that the State may assert a claim for natural resource damages with respect to the Arsynco site itself, and either the federal government or the State (or both) may assert claims against Arsynco for natural resource damages in connection with Berry's Creek; any such claim with respect to Berry's Creek could also be asserted against the approximately 150 PRPs which the EPA has identified in connection with that site. Any claim for natural resource damages with respect to the Arsynco site itself may also be asserted against BASF, the former owners of the Arsynco property. In September 2012, Arsynco entered into an agreement with three of the other PRPs that had previously been impleaded into New Jersey Department of Environmental Protection, et al. v. Occidental Chemical Corporation, et al., Docket No. ESX-L-9868-05 (the "NJDEP Litigation") and were considering impleading Arsynco into the same proceeding. Arsynco entered into an agreement to avoid impleader. Pursuant to the agreement, Arsynco agreed to (1) a tolling period that would not be included when computing the running of any statute of limitations that might provide a defense to the NJDEP Litigation; (2) the waiver of certain issue preclusion defenses in the NJDEP Litigation; and (3) arbitration of certain potential future liability allocation claims if the other parties to the agreement are barred by a court of competent jurisdiction from proceeding against Arsynco. In July 2015, Arsynco was contacted by an allocation consultant retained by a group of the named PRPs, inviting Arsynco to participate in the allocation among the PRPs’ investigation and remediation costs relating to the BCSA. Arsynco declined that invitation. Since an amount of the liability cannot be reasonably estimated at this time, no accrual is recorded for these potential future costs. The impact of the resolution of this matter on the Company’s results of operations in a particular reporting period is not currently known. |
Debt
Debt | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt | (9) Debt Long-term debt June 30, 2018 2017 Convertible Senior Notes, net $ 127,857 $ 121,676 Revolving bank loans 62,000 90,000 Term bank loans 124,959 139,227 Mortgage 2,582 2,763 317,398 353,666 Less current portion 14,482 14,466 $ 302,916 $ 339,200 Convertible Senior Notes In November 2015, Aceto offered $125,000 aggregate principal amount of Convertible Senior Notes due 2020 (the "Notes") in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. In addition, Aceto granted the initial purchasers for the offering an option to purchase up to an additional $18,750 aggregate principal amount pursuant to the initial purchasers’ option to purchase additional Notes, which was exercised in November 2015. Therefore the total offering was $143,750 aggregate principal amount. The Notes are unsecured obligations of Aceto and rank senior in right of payment to any of Aceto’s subordinated indebtedness, equal in right of payment to all of Aceto’s unsecured indebtedness that is not subordinated, effectively junior in right of payment to any of Aceto’s secured indebtedness to the extent of the value of the assets securing such indebtedness and structurally junior in right of payment to all indebtedness and other liabilities (including trade payables) of Aceto’s subsidiaries. The Notes will be convertible into cash, shares of Aceto common stock or a combination thereof, at Aceto’s election, upon the satisfaction of specified conditions and during certain periods. The Notes will mature in November 2020. The Notes pay 2.0% interest semi-annually in arrears on May 1 and November 1 of each year, which commenced on May 1, 2016. The Notes are convertible into 4,328 shares of common stock, based on an initial conversion price of $33.215 per share. Holders may convert all or any portion of their notes, in multiples of one thousand dollar principal amount, at their option at any time prior to the close of business on the business day immediately preceding May 1, 2020 only under the following circumstances: (i) during any calendar quarter (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day, (ii) during the five consecutive business day period after any five consecutive trading day period (which is referred to as the “measurement period”) in which the trading price per one thousand dollar principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of Aceto’s common stock and the conversion rate on each such trading day; or (iii) upon the occurrence of specified corporate events. Upon conversion by the holders, the Company may elect to settle such conversion in shares of its common stock, cash, or a combination thereof. As a result of its cash conversion option, the Company separately accounted for the value of the embedded conversion option as a debt discount (with an offset to capital in excess of par value). The debt discount is being amortized as additional non-cash interest expense using the effective interest method over the term of the Notes. Debt issuance costs are being amortized as additional non-cash interest expense. In connection with the offering of the Notes, Aceto entered into privately negotiated convertible note hedge transactions with option counterparties, which are affiliates of certain of the initial purchasers. The convertible note hedge transactions are expected generally to reduce the potential dilution to Aceto’s common stock and/or offset any cash payments Aceto is required to make in excess of the principal amount of converted Notes upon any conversion of Notes. Aceto also entered into privately negotiated warrant transactions with the option counterparties. The warrant transactions could separately have a dilutive effect to the extent that the market price per share of Aceto’s common stock as measured over the applicable valuation period at the maturity of the warrants exceeds the applicable strike price of the warrants. By entering into these transactions with the option counterparties, the Company issued convertible debt and a freestanding “call-spread.” The carrying value of the Notes is as follows: June 30, 2018 June 30, 2017 Principal amount $ 143,750 $ 143,750 Unamortized debt discount (13,909 ) (19,255 ) Unamortized debt issuance costs (1,984 ) (2,819 ) Net carrying value $ 127,857 $ 121,676 The following table sets forth the components of total “interest expense” related to the Notes recognized in the accompanying consolidated statements of income for the year ended June 30: 2018 2017 Contractual coupon $ 2,875 $ 2,867 Amortization of debt discount 5,346 5,012 Amortization of debt issuance costs 835 835 $ 9,056 $ 8,714 Credit Facilities On December 21, 2016 the Company entered into a Second Amended and Restated Credit Agreement (the “A&R Credit Agreement”), with eleven banks, which amended and restated in its entirety the Amended and Restated Credit Agreement, dated as of October 28, 2015, as amended by Amendment No. 1 to Amended and Restated Credit Agreement, dated as of November 10, 2015, and Amendment No. 2 to Amended and Restated Credit Agreement, dated as of August 26, 2016 (collectively, the “First Amended Credit Agreement”). The A&R Credit Agreement increases the aggregate available revolving commitment under the First Amended Credit Agreement from $150,000 to an initial aggregate available revolving commitment of $225,000 (the “Initial Revolving Commitment”). Under the A&R Credit Agreement, the Company may borrow, repay and reborrow from and as of December 21, 2016, to but excluding December 21, 2021 (the “Maturity Date”) provided, that if any of the Notes remain outstanding on the date that is 91 days prior to the maturity date of the Notes (the “2015 Convertible Maturity Date”), then the Maturity Date shall mean the date that is 91 days prior to the 2015 Convertible Maturity Date. The A&R Credit Agreement provides for (i) Eurodollar Loans (as such terms are defined in the A&R Credit Agreement), (ii) ABR Loans (as such terms are defined in the A&R Credit Agreement) or (iii) a combination thereof. As of June 30, 2018, the Company borrowed Revolving Loans aggregating $62,000 which loans are Eurodollar Loans at interest rates ranging from 5.00% to 5.02% at June 30, 2018. The applicable interest rate margin percentage is subject to adjustment quarterly based upon the Company’s senior secured net leverage ratio. Under the A&R Credit Agreement, the Company also borrowed $150,000 in term loans (the “Initial Term Loan). Subject to certain conditions, including obtaining commitments from existing or prospective lenders, the Company will have the right to increase the amount of the Initial Revolving Commitment (each, a “Revolving Facility Increase” and, together with the Initial Revolving Commitment, the “Revolving Commitment”) and/or the Initial Term Loan in an aggregate amount not to exceed $100,000 pursuant to an incremental loan feature in the A&R Credit Agreement. As of June 30, 2018, the remaining amount outstanding under the Initial Term Loan is $127,500 and is payable as a Eurodollar Loan at an interest rate of 4.83%. The proceeds of the Initial Revolving Commitment and Initial Term Loan have been used to partially finance the acquisition of generic products and related assets of Citron and its affiliate Lucid, and pay fees and expenses related thereto. The applicable interest rate margin percentage is subject to adjustment quarterly based upon the Company’s senior secured net leverage ratio. The Initial Term Loan is payable as to principal in nineteen consecutive, equal quarterly installments of $3,750, which commenced on March 31, 2017 and will continue on each March 31, June 30, September 30 and December 31 thereafter. To the extent not previously paid, the final payment on the Term Loan Maturity Date (as defined in the A&R Credit Agreement) shall be in an amount equal to the then outstanding unpaid principal amount of the Initial Term Loan. The A&R Credit Agreement provides that commercial letters of credit shall be issued to provide the primary payment mechanism in connection with the purchase of any materials, goods or services in the ordinary course of business. The Company had no open letters of credit at June 30, 2018 and June 30, 2017. In accordance with generally accepted accounting principles, $3,659 of deferred financing costs associated with the Initial Term Loan are presented as a direct deduction from the carrying value of the debt liability rather than showing the deferred financing costs as a deferred charge on the balance sheet. In addition, deferred financing costs of $1,748 associated with the Revolving Commitment have been recorded as a deferred charge on the balance sheet. The A&R Credit Agreement provides for a security interest in substantially all of the personal property of the Company and certain of its subsidiaries. The A&R Credit Agreement contains several financial covenants including, among other things, maintaining a minimum level of debt service and certain leverage ratios. Under the A&R Credit Agreement, the Company and its subsidiaries are also subject to certain restrictive covenants, including, among other things, covenants governing liens, limitations on indebtedness, limitations on guarantees, limitations on sales of assets and sales of receivables, and limitations on loans and investments. On December 13, 2017, the Company entered into a First Amendment to the Second Amended and Restated Credit Agreement (the “2017 Amendment”), which amended the A&R Credit Agreement. The 2017 Amendment, among other things, contained several amendments to the financial covenants in the A&R Credit Agreement. As of March 31, 2018, the Company was in compliance with all of its financial covenants except for the maximum total net leverage ratio and the minimum debt service coverage ratio. On May 3, 2018, the Company entered into a Second Amendment and Waiver to the Second Amended and Restated Credit Agreement (the “May 2018 Amendment”). The May 2018 Amendment, among other things, contains a waiver of any event of default under the A&R Credit Agreement arising as a result of the non-compliance by the Company with the Total Net Leverage Ratio and Debt Service Coverage Ratio financial covenants, in each case, solely for the fiscal quarter ended March 31, 2018. The May 2018 Amendment also contains several amendments to the A&R Credit Agreement including, among other things, (a) reducing the available revolving commitment thereunder to $100,000, and (b) during the period commencing on the closing of the May 2018 Amendment and ending on the date the Company demonstrates compliance with each financial covenant set forth in the A&R Credit Agreement for the fiscal quarter ending June 30, 2018 (the “May 2018 Amendment Limitation Period”; provided that if the Company is not in compliance with any of the financial covenants set forth in the A&R Credit Agreement for the fiscal quarter ending June 30, 2018, then the May 2018 Amendment Limitation Period shall continue indefinitely): (i) fixing the applicable margin with respect to all loans under the A&R Credit Agreement to the highest level provided under the A&R Credit Agreement, which is 1.50% in the case of ABR Loans (as defined in the A&R Credit Agreement) and 2.50% in the case of Eurodollar Loans (as defined in the A&R Credit Agreement), (ii) fixing the commitment fee on the undrawn revolving commitments under the A&R Credit Agreement to the highest level provided under the A&R Credit Agreement which is 0.40% per annum, (iii) requiring the prior written consent of the Required Lenders (as defined in the A&R Credit Agreement) as a condition precedent to the lenders extending any Loans (as defined in the A&R Credit Agreement) or the issuing banks issuing, amending, renewing or extending any Letter of Credit (as defined in the A&R Credit Agreement), (iv) restricting the amount of dividends or distributions the Company may make to its shareholders to no more than $0.01 per share for the fiscal quarter ending on June 30, 2018 and, during the May 2018 Amendment Limitation Period, restricting the Company from making any other dividends or distributions to its shareholders thereafter and (v) restricting the incurrence of certain indebtedness, limiting acquisitions and other investments and imposing certain other restrictions. On September 11, 2018, the Company entered into a Third Amendment and Limited Waiver, dated as of September 11, 2018 (the “September 2018 Amendment”), to the A&R Credit Agreement. As of June 30, 2018, the Company was not in compliance with its total net leverage ratio, senior secured net leverage ratio and debt service coverage ratio financial covenants. The September 2018 Amendment provides for a waiver of any event of default under the A&R Credit Agreement arising as a result of the non-compliance by the Company with the total net leverage ratio, senior secured net leverage ratio and debt service coverage ratio financial covenants, in each case, solely for the fiscal quarters ended or ending June 30, 2018, September 30, 2018, December 31, 2018, March 31, 2019 and June 30, 2019. The September 2018 Amendment also contains several amendments to the A&R Credit Agreement including, among other things, (a) a limitation on dividends for the fiscal quarters ending September 30, 2018, December 31, 2018, March 31, 2019 and June 30, 2019, to an amount not to exceed $325 for any fiscal quarter, (b) increasing the applicable margin with respect to the interest rates on all loans under the A&R Credit Agreement by 450 basis points and fixing (during the September 2018 Amendment Limitation Period (as hereinafter defined)) the applicable margin with respect to the interest rate on all loans under the A&R Credit Agreement to the highest level provided under the A&R Credit Agreement which is currently 6.00% in the case of ABR Loans (as defined in the A&R Credit Agreement) and 7.00% in the case of Eurodollar Loans (as defined in the A&R Credit Agreement), (c) during the period commencing on the closing of the September 2018 Amendment and ending on the date the Company demonstrates compliance with each financial covenant set forth in the A&R Credit Agreement for the fiscal quarter ending September 30, 2019 (the “September 2018 Amendment Limitation Period”; provided that if the Company is not in compliance with any of the financial covenants set forth in the A&R Credit Agreement for the fiscal quarter ending September 30, 2019, then the September 2018 Amendment Limitation Period shall continue indefinitely), requiring the Company to maintain the sum of Domestic Liquidity (as defined in the A&R Credit Agreement) plus Foreign Liquidity (as defined in the A&R Credit Agreement) and the undrawn portion of the Revolving Commitment (as defined in the A&R Credit Agreement) (“Covenant Liquidity”) to an amount of at least $55,000 (the “Covenant Liquidity Amount”) as of the last business day of each week following the effectiveness of the September 2018 Amendment; provided that the Company shall not be in breach of the minimum liquidity covenant unless the Covenant Liquidity is less than the Covenant Liquidity Amount as of the last business day of two consecutive weeks, (d) requiring the prior written consent of the Required Lenders (as defined in the A&R Credit Agreement) as a condition precedent to the lenders extending any Loans (as defined in the A&R Credit Agreement) or the issuing banks issuing, amending, renewing or extending any Letter of Credit (as defined in the A&R Credit Agreement), and (e) permitting the purchase, during fiscal year 2019, of assets for an aggregate consideration not to exceed $12,300, consisting of intangible assets relating to strategic product acquisitions and certain capital expenditures, and (f) restricting the incurrence of certain indebtedness, limiting acquisitions and other investments and imposing certain other restrictions. The Company has available lines of credit with foreign financial institutions. At June 30, 2018, the Company had available lines of credit with foreign financial institutions totaling $1,822. At June 30, 2017, the Company had available lines of credit with foreign financial institutions totaling $7,351. The Company has issued a cross corporate guarantee to the foreign banks. Short term loans under these agreements bear interest at a fixed rate of 4.5% at June 30, 2018, June 30, 2017 and June 30, 2016. The Company is not subject to any financial covenants under these arrangements. The Company’s foreign subsidiaries had $1,552 in commercial letters of credit as of June 30, 2018. There were no outstanding balances on commercial letters of credit as of June 30, 2017. Under the above financing arrangements, the Company had $189,500 in bank loans and $1,737 in standby letters of credit at June 30, 2018. At June 30, 2017 the Company had $232,500 in bank loans and $1,737 in standby letters of credit leaving an unused facility of $140,613. Mortgage On June 30, 2011, the Company entered into a mortgage payable for $3,947 on its corporate headquarters, in Port Washington, New York. This mortgage payable is secured by the land and building and is being amortized over a period of 20 years. The mortgage payable, which was modified in October 2013, bears interest at 4.92% as of June 30, 2018 and matures on June 30, 2021. Maturity of Long-term Debt Long-term debt matures by fiscal year as follows: 2019 14,482 2020 14,465 2021 142,322 2022 144,352 2023 197 Thereafter 1,580 $ 317,398 |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Share based Payments [Abstract] | |
Stock Based Compensation Plans | (10) Stock Based Compensation Plans At the annual meeting of shareholders of the Company, held on December 15, 2015, the Company’s shareholders approved the Aceto Corporation 2015 Equity Participation Plan (the “2015 Plan”). Under the 2015 Plan, grants of stock options, stock appreciation rights, restricted stock, restricted stock units and other stock-based awards (“Stock Awards”) may be offered to employees, non-employee directors, consultants and advisors of the Company, including the chief executive officer, chief financial officer and other named executive officers. The maximum number of shares of common stock of the Company that may be issued pursuant to Stock Awards granted under the 2015 Plan will not exceed, in the aggregate, 4,250 shares. Stock Awards that are intended to qualify as “performance-based compensation” for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended, may be granted. Performance-based awards may be granted, vested and paid based on the attainment of specified performance goals. At the annual meeting of shareholders of the Company, held on December 6, 2012, the Company’s shareholders approved the amended and restated Aceto Corporation 2010 Equity Participation Plan (the “2010 Plan”). Under the 2010 Plan, grants of stock options, restricted stock, restricted stock units, stock appreciation rights, and stock bonuses may be made to employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock of the Company that may be issued pursuant to awards granted under the 2010 Plan will not exceed, in the aggregate, 5,250 shares. In addition, restricted stock may be granted to an eligible participant in lieu of a portion of any annual cash bonus earned by such participant. Such award may include additional shares of restricted stock (premium shares) greater than the portion of bonus paid in restricted stock. The restricted stock award is vested at issuance and the restrictions lapse ratably over a period of years as determined by the Board of Directors, generally three years. The premium shares vest when all the restrictions lapse, provided that the participant remains employed by the Company at that time. At the annual meeting of shareholders of the Company held December 6, 2007, the shareholders approved the Aceto Corporation 2007 Long-Term Performance Incentive Plan (the “2007 Plan”). The Company has reserved 700 shares of common stock for issuance under the 2007 Plan to the Company’s employees and non-employee directors. There are five types of awards that may be granted under the 2007 Plan-options to purchase common stock, stock appreciation rights, restricted stock, restricted stock units and performance incentive units. In September 2016, the Company granted 28 performance stock options to an executive officer at an exercise price of $20.03 per share. The performance options vest if the closing stock price meets or exceeds the target price of $40 for 20 consecutive trading days prior to June 30, 2021 and the explicit service period of 1 year has been met. As of June 30, 2018, there were 1,571, 488 and 0 shares of common stock available for grant under the 2015, 2010 and 2007 Plans, respectively. In December 1998, the Company adopted the Aceto Corporation 1998 Omnibus Equity Award Plan (1998 Plan). The 1998 Plan expired in December 2008. Outstanding options survive the expiration of the 1998 Plan. The following summarizes the shares of common stock under options for all plans at June 30, 2018, 2017 and 2016, and the activity with respect to options for the respective years then ended: Shares subject to Weighted average Aggregate Balance at June 30, 2015 397 $ 7.28 Granted - - Exercised (95 ) 7.56 Forfeited (including cancelled options) - - Balance at June 30, 2016 302 $ 7.19 Granted 28 20.03 Exercised (70 ) 7.90 Forfeited (including cancelled options) - - Balance at June 30, 2017 260 $ 8.36 Granted - - Exercised (96 ) 6.29 Forfeited (including cancelled options) (35 ) 17.61 Balance at June 30, 2018 129 $ 7.44 $ - Options exercisable at June 30, 2018 129 $ 7.44 $ - The total intrinsic value of stock options exercised during the years ended June 30, 2018, 2017 and 2016 was approximately $430, $865 and $1,700, respectively. Under the 2015 Plan, 2010 Plan, 2002 Plan and the 1998 Plan, compensation expense is recorded for the fair value of the restricted stock awards in the year the related bonus is earned and over the vesting period for the market value at the date of grant of the premium shares granted. In fiscal 2018, 2017 and 2016, restricted stock awarded and premium shares vested of 2, 5 and 7 common shares, respectively, were issued under employee incentive plans, which increased stockholders’ equity by $40, $109 and $113, respectively. The related non-cash compensation expense related to the vesting of premium shares during the year was $20, $26 and $22 in fiscal 2018, 2017 and 2016, respectively. Additionally, non-cash compensation expense of $0, $55 and $0 was recorded in fiscal 2018, 2017 and 2016, respectively, relating to stock option grants, which is included in selling, general and administrative expenses. The following summarizes the non-vested stock options at June 30, 2018 and the activity with respect to non-vested options for the year ended June 30, 2018: Shares Weighted Non-vested at June 30, 2017 28 $ 5.44 Granted - - Vested - - Forfeited (28 ) (5.44 ) Non-vested at June 30, 2018 - $ - During the year ended June 30, 2018, the Company granted 497 shares of restricted common stock to its employees that vest over three years and 27 shares of restricted common stock to its non-employee directors, which vest over approximately one year. In addition, the Company also issued a target grant of 203 performance-vested restricted stock units, which grant could be as much as 355 restricted stock units if certain performance criteria and market conditions are met. Performance-vested restricted stock units will cliff vest 100% at the end of the third year following grant in accordance with the performance metrics set forth in the applicable employee performance-vested restricted stock unit grant. During the year ended June 30, 2017, the Company granted 277 shares of restricted common stock to its employees that vest over three years and 22 shares of restricted common stock to its non-employee directors, which vest over approximately one year. In addition, the Company also issued a target grant of 160 performance-vested restricted stock units, which grant could be as much as 280 if certain performance criteria and market conditions are met. Performance-vested restricted stock units will cliff vest 100% at the end of the third year following grant in accordance with the performance metrics set forth in the applicable employee performance-vested restricted stock unit grant. During the year ended June 30, 2016, the Company granted 221 shares of restricted common stock to its employees that vest over three years and 14 shares of restricted common stock to its non-employee directors, which vest over approximately one year as well as 46 restricted stock units that have varying vest dates through July 2017. In addition, the Company also issued a target grant of 142 performance-vested restricted stock units, which grant could be as much as 248 if certain performance criteria and market conditions are met. Performance-vested restricted stock units will cliff vest 100% at the end of the third year following grant in accordance with the performance metrics set forth in the applicable employee performance-vested restricted stock unit grant. For the years ended June 30, 2018, 2017 and 2016, the Company recorded stock-based compensation expense of approximately $7,762, $6,875, and $6,697, respectively, which is included in selling, general and administrative expenses, Included in the stock-based compensation expense is $431 associated with the retirement of a Chief Financial Officer in March 2018 and $2,017 in stock-based compensation expense associated with the separation of the Company’s former Chief Executive Officer in September 2017. The remaining stock-based compensation expense for restricted stock awards and units is approximately $6,119 at June 30, 2018 and the related weighted average period over which it is expected that such unrecognized compensation cost will be recognized is approximately 1.8 years. A summary of restricted stock awards including restricted stock units as of June 30, 2018, is presented below: Shares Weighted Non-vested at beginning of year 797 $ 21.24 Granted 727 10.27 Vested (498 ) 18.52 Forfeited (200 ) 14.33 Non-vested at June 30, 2018 826 $ 14.90 |
Interest and Other Income
Interest and Other Income | 12 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Interest and Other Income | (11) Interest and Other Income Interest and other income during fiscal 2018, 2017 and 2016 was comprised of the following: 2018 2017 2016 Dividends $ 199 $ 277 $ 222 Interest 278 264 313 Foreign government subsidies received 53 64 25 Joint venture equity earnings 2,173 2,336 2,060 Foreign currency gains (losses) 136 (298 ) 56 Deferred compensation plan losses (13 ) (257 ) (35 ) Rental income 163 158 154 Miscellaneous income 56 33 28 $ 3,045 $ 2,577 $ 2,823 The Company’s joint venture earnings represent the Company’s investment in a corporate joint venture established for the purpose of selling a particular agricultural protection product. The Company’s initial investment was $6 in fiscal 2009, representing a 30% ownership and the Company accounts for this joint venture using the equity method of accounting. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | (12) Income Taxes The components of (loss) income before the provision for income taxes are as follows: 2018 2017 2016 Domestic operations $ (303,329 ) $ 9,555 $ 43,906 Foreign operations 10,507 7,806 9,948 $ (292,822 ) $ 17,361 $ 53,854 The components of the provision for income taxes are as follows: 2018 2017 2016 Federal: Current $ 6,635 $ 3,713 $ 15,129 Deferred 10,239 (585 ) (204 ) State and local: Current 197 555 755 Deferred 802 (110 ) 173 Foreign: Current 2,824 2,221 3,222 Deferred 2,602 191 13 $ 23,299 $ 5,985 $ 19,088 The tax effects of temporary differences that give rise to the deferred tax assets and liabilities at June 30, 2018 and 2017 are presented below: 2018 2017 Deferred tax assets: Accrued deferred compensation $ 1,885 $ 4,229 Accrual for sales deductions not currently deductible 8,387 5,796 Additional inventoried costs for tax purposes 439 697 Allowance for doubtful accounts receivable 182 106 Depreciation and amortization 12,663 11,957 Debt issuance costs 3,506 7,611 Foreign deferred tax assets 858 983 Deferred rent 145 - Domestic net operating loss carryforwards 7,486 81 Foreign net operating loss carryforwards 916 692 Goodwill 45,504 - Total gross deferred tax assets 81,971 32,152 Valuation allowances (77,416 ) (773 ) 4,555 31,379 Deferred tax liabilities: Foreign deferred tax liabilities (2,495 ) (65 ) Goodwill - (10,244 ) Original issue discount – convertible senior notes (3,310 ) (7,260 ) Other (286 ) (1,136 ) Total gross deferred tax liabilities (6,091 ) (18,705 ) Net deferred tax assets (liabilities) $ (1,536 ) $ 12,674 The following table shows the current and non-current deferred tax assets (liabilities) at June 30, 2018 and 2017: 2018 2017 Current deferred tax assets, net $ - $ 546 Non-current deferred tax assets, net - 19,453 Non-current deferred tax liabilities (1,536 ) (7,325 ) Net deferred tax assets $ (1,536 ) $ 12,674 On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (“the TCJA”) was signed into law, which enacted various changes to the U.S. corporate tax law. Some of the most significant provisions impacting corporations include a reduced U.S. corporate income tax rate from 35% to 21% effective in 2018, a one-time "deemed repatriation" tax on unremitted earnings accumulated in non-U.S. jurisdictions, limitation on deductibility of interest, the transition of U.S. international taxation from a worldwide tax system to a territorial tax system and other provisions. U.S. GAAP accounting for income taxes requires that Aceto record the impacts of any tax law change on the Company’s deferred income taxes in the quarter that the tax law change is enacted. Due to the complexities involved in accounting for the enactment of the TCJA, SEC Staff Accounting Bulletin (“SAB”) 118 allows Aceto to provide a provisional estimate of the impacts of the TCJA in its earnings for the fiscal year ended June 30, 2018. Accordingly, based on currently available information, the Company recorded additional income tax expense of $13,739 for the year ended June 30, 2018. This charge is comprised of $5,075 related to the remeasurement of Aceto’s deferred tax assets arising from a lower U.S. corporate tax rate, $6,219 related to the deemed repatriation of unremitted earnings of foreign subsidiaries (the “transition tax”) and $2,445 related to deferred tax liabilities for local tax authorities as the Company no longer asserts permanent reinvestment of its undistributed non-U.S. subsidiaries' earnings. Additional impacts from the enactment of the TCJA will be recorded as they are identified during the measurement period ending no later than December 22, 2018 as provided for in SAB 118. The charge recorded in the year ended June 30, 2018 represents the Company’s best estimate of the impact of the TCJA. The Company will continue to evaluate the interpretations and assumptions made, guidance that may be issued and actions the Company may take as a result of the TCJA, which could materially change this estimate in 2018 as new information becomes available. With respect to finalizing the estimated transition tax, the Company is currently working to complete various earnings and profits studies and awaiting related final guidance from state tax authorities. Deferred tax assets are recorded for net operating losses and temporary differences between the book and tax basis of assets and liabilities expected to produce tax deductions in future periods. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income during the tax periods in which those deferred tax assets would be deductible. A valuation allowance is taken when necessary to reduce deferred tax assets to the amount expected to be realized. When determining the amount of net deferred tax assets that are more likely than not to be realized, the Company assesses all available positive and negative evidence. This evidence includes, but is not limited to, scheduled reversal of deferred tax liabilities, prior earnings history, projected future earnings, carry-back and carry-forward periods and the feasibility of ongoing tax strategies that could potentially enhance the likelihood of the realization of a deferred tax asset. The weight given to the positive and negative evidence is commensurate with the extent the evidence may be objectively verified. As such, it is generally difficult for positive evidence regarding projected future taxable income (exclusive of reversing taxable temporary differences and carryforwards) to outweigh objective negative evidence such as the Company’s recent financial reporting loss for the year ended June 30, 2018 that created a cumulative loss. Therefore, the Company recorded a valuation allowance of $76,500 against its net U.S. deferred tax assets during the year ended June 30, 2018. The net change in the total valuation allowance for the years ended June 30, 2018 and June 30, 2017 was an increase of $76,643 and a decrease of $21, respectively. The Company has federal net operating loss carryforwards of $32,515 which have an indefinite life and no carryback. The Company has state net operating loss carryforwards of $9,047 which will expire in 12-20 years. The Company has foreign net operating loss carryforwards of $18,896 which have an indefinite life. A reconciliation of the statutory federal income tax rate and the effective tax rate for continuing operations for the fiscal years ended June 30, 2018, 2017 and 2016 follows: 2018 2017 2016 Federal statutory tax rate 28.1 % 35.0 % 35.0 % State and local taxes, net of federal income tax benefit 2.0 1.2 1.7 Change in valuation allowance (26.2 ) 0.1 - Foreign withholding taxes (0.8 ) - - Foreign tax rate differential - (1.8 ) (0.4 ) Rate differential between fiscal year 2018 statutory rate and enacted rate for subsequent period (6.0 ) - - Revaluation of the deferred tax asset and liabilities due to the tax law change (1.8 ) - - Transition tax (2.1 ) - - Other (1.2 ) - (0.9 ) Effective tax rate (8.0 )% 34.5 % 35.4 % The Company operates in various tax jurisdictions, and although it believes that it has provided for income and other taxes in accordance with the relevant regulations, if the applicable regulations were ultimately interpreted differently by a taxing authority, the Company may be exposed to additional tax liabilities. There are no material unrecognized tax benefits included in the consolidated balance sheet that would, if recognized, have a material effect on the Company’s effective tax rate. The Company is continuing its practice of recognizing interest and penalties related to income tax matters in income tax expense. The Company did not recognize interest and penalties during the years ended June 30, 2018 and June 30, 2017. The Company files U.S. federal, U.S. state, and foreign tax returns, and is generally no longer subject to tax examinations for fiscal years prior to 2013 (in the case of certain foreign tax returns, fiscal year 2012). |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | (13) Supplemental Cash Flow Information Cash paid for interest and income taxes during fiscal 2018, 2017 and 2016 was as follows: 2018 2017 2016 Interest $ 13,085 $ 7,794 $ 2,970 Income taxes, net of refunds $ 5,272 $ 7,912 $ 16,076 In connection with the acquisition of certain products and related assets of Citron and Lucid, approximately 5,122 shares of Aceto common stock with a fair value of $90,400, to be issued beginning on December 21, 2019, a $50,000 unsecured deferred payment payable on December 21, 2021 and a contingent earn out liability of $2,580 are non-cash items and are excluded from the Consolidated Statement of Cash Flows during the year ended June 30, 2017. In addition, the Company had non-cash items excluded from the Consolidated Statements of Cash Flows during the years ended June 30, 2017 and 2016 of $284 and $294, respectively related to capitalized environmental remediation costs and property held for sale. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jun. 30, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | (14) Retirement Plans Defined Contribution Plans The Company has defined contribution retirement plans in which certain employees are eligible to participate, including deferred compensation plans (see below). The Company's annual contribution per employee, which is at management's discretion, is based on a percentage of the employee’s compensation. The Company's provision for these defined contribution plans amounted to $1,990, $1,794 and $1,957 in fiscal 2018, 2017 and 2016, respectively. Defined Benefit Plans The Company sponsors certain defined benefit pension plans covering certain employees of its German subsidiaries who meet the plan’s eligibility requirements. The accrued pension liability as of June 30, 2018 was $1,002. The accrued pension liability as of June 30, 2017 was $883. Net periodic pension costs, which consists principally of interest cost and service cost was $32 in fiscal 2018, $30 in fiscal 2017 and $28 in fiscal 2016. The Company’s plans are funded in conformity with the funding requirements of the applicable government regulations. An assumed weighted average discount rate of 1.5%, 2.0% and 1.9% and a compensation increase rate of 0.0% were used in determining the actuarial present value of benefit obligations as of June 30, 2018, 2017 and 2016, respectively. Deferred Compensation Plans To comply with the requirements of the American Jobs Creation Act of 2004, as of December 2004, the Company froze its non-qualified Supplemental Executive Retirement Plan (the Frozen Plan) and has not allowed any further deferrals or contributions to the Frozen Plan after December 31, 2004. All of the earned benefits of the participants in the Frozen Plan as of December 31, 2004, will be preserved under the existing plan provisions. On March 14, 2005, the Company’s Board of Directors adopted the Aceto Corporation Supplemental Executive Deferred Compensation Plan (the Plan). The Plan is a non-qualified deferred compensation plan intended to provide certain qualified executives with supplemental benefits beyond the Company’s 401(k) plan, as well as to permit additional deferrals of a portion of their compensation. The Plan is intended to comply with the provisions of section 409A of the Internal Revenue Code of 1986, as amended, and is designed to provide comparable benefits to those under the Frozen Plan. Substantially all compensation deferred under the Plan, as well as Company contributions, is held by the Company in a grantor trust, which is considered an asset of the Company. The assets held by the grantor trust are in mutual fund investments. Effective July 1, 2013, the Plan was frozen and a new plan, entitled “Aceto Corporation 2013 Senior Executive Retirement Plan” was adopted by the Company’s Board of Directors. As of June 30, 2018, the Company recorded a liability under the Plans of $3,342 (of which $3,194 is included in long-term liabilities and $148 is included in accrued expenses) and an asset (included in other assets) of $3,642, primarily representing mutual fund investments owned by the Company. As of June 30, 2017, the Company recorded a liability under the Plans of $3,551 (of which $3,337 is included in long-term liabilities and $214 is included in accrued expenses) and an asset (included in other assets) of $3,087, primarily representing mutual fund investments owned by the Company. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 30, 2018 | |
Investments All Other Investments [Abstract] | |
Financial Instruments | (15) Financial Instruments Derivative Financial Instruments The Company is exposed to credit losses in the event of non-performance by the financial institutions, who are the counterparties, on its future foreign currency contracts. The Company anticipates, however, that the financial institutions will be able to fully satisfy their obligations under the contracts. The Company does not obtain collateral to support financial instruments, but monitors the credit standing of the financial institutions. Fair Value of Financial Instruments The carrying values of all financial instruments classified as a current asset or current liability are deemed to approximate fair value because of the short maturity of these instruments. The fair value of the Company’s notes receivable and accrued expenses was based upon current rates offered for similar financial instruments to the Company. The Company believes that borrowings outstanding under its long-term bank loans and mortgage approximate fair value because such borrowings bear interest at current variable market rates. Business and Credit Concentration Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of trade receivables. The Company’s customers are dispersed across many industries and are located throughout the United States as well as in Canada, France, Germany, Malaysia, The Netherlands, Switzerland, the United Kingdom, and other countries. The Company estimates an allowance for doubtful accounts based upon the creditworthiness of its customers as well as general economic conditions. Consequently, an adverse change in those factors could affect the Company’s estimate of this allowance. At June 30, 2018, three customers approximated 28%, 19% and 13%, respectively, of net trade accounts receivable. At June 30, 2017, three customers approximated 32%, 20% and 15%, respectively, of net trade accounts receivable. One customer accounted for 16% of net sales in fiscal 2018, 12% of net sales in fiscal 2017 and 14% of net sales in fiscal 2016. Another customer accounted for 11% of net sales in fiscal 2018, 11% of net sales in 2017 and 7% of net sales in 2016. No single product accounted for as much as 10% of net sales in fiscal 2018, 2017 or 2016. During the fiscal years ended June 30, 2018, 2017 and 2016, approximately 61%, 62% and 56%, respectively, of the Company’s purchases came from Asia and approximately 15%, 17% and 22%, respectively, came from Europe. The Company maintains operations located outside of the United States. Net assets located in Europe and Asia approximated $68,149 and $36,633, respectively at June 30, 2018. Net assets located in Europe and Asia approximated $68,235 and $50,641, respectively at June 30, 2017. |
Commitments, Contingencies and
Commitments, Contingencies and Other Matters | 12 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Other Matters | (16) Commitments, Contingencies and Other Matters As of June 30, 2018, the Company has outstanding purchase obligations totaling $175,136 with suppliers to the Company’s domestic and foreign operations to acquire certain products for resale to third party customers. The Company and its subsidiaries are subject to various claims which have arisen in the normal course of business. The Company provides for costs related to contingencies when a loss from such claims is probable and the amount is reasonably determinable. In determining whether it is possible to provide an estimate of loss, or range of possible loss, the Company reviews and evaluates its litigation and regulatory matters on a quarterly basis in light of potentially relevant factual and legal developments. If the Company determines an unfavorable outcome is not probable or reasonably estimable, the Company does not accrue for a potential litigation loss. While the Company has determined that there is a reasonable possibility that a loss has been incurred, no amounts have been recognized in the financial statements, other than what has been discussed below, because the amount of the liability cannot be reasonably estimated at this time. In fiscal years 2011, 2009, 2008 and 2007, the Company received letters from the Pulvair Site Group, a group of potentially responsible parties (PRP Group) who are working with the State of Tennessee (the State) to remediate a contaminated property in Tennessee called the Pulvair site. The PRP Group has alleged that Aceto shipped hazardous substances to the site which were released into the environment. The State had begun administrative proceedings against the members of the PRP Group and Aceto with respect to the cleanup of the Pulvair site and the PRP Group has begun to undertake cleanup. The PRP Group is seeking a settlement of approximately $1,700 from the Company for its share to remediate the site contamination. Although the Company acknowledges that it shipped materials to the site for formulation over twenty years ago, the Company believes that the evidence does not show that the hazardous materials sent by Aceto to the site have significantly contributed to the contamination of the environment and thus believes that, at most, it is a de minimis contributor to the site contamination. Accordingly, the Company believes that the settlement offer is unreasonable. Management believes that the ultimate outcome of this matter will not have a material adverse effect on the Company's financial condition or liquidity. The Company has environmental remediation obligations in connection with Arsynco, Inc. (“Arsynco”), a subsidiary formerly involved in manufacturing chemicals located in Carlstadt, New Jersey, which was closed in 1993 and is currently held for sale. Based on continued monitoring of the contamination at the site and the approved plan of remediation, Arsynco received an estimate from an environmental consultant stating that the costs of remediation could be between $22,900 and $24,700. Remediation commenced in fiscal 2010, and as of June 30, 2018 and June 30, 2017, a liability of $5,746 and $8,451, respectively, is included in the accompanying consolidated balance sheets for this matter. For the year ended June 30, 2018, the Company recorded environmental remediation charges of $1,822 which is included in selling, general and administrative expenses in the accompanying consolidated statements of income for the year ended June 30, 2018. In accordance with GAAP, management believes that the majority of costs incurred to remediate the site will be capitalized in preparing the property which is currently classified as held for sale. In June 2018, the Company entered into an agreement to sell the Arsynco property to an unrelated third party for $6,340. The sale is subject to due diligence by the buyer and the Company is not sure when or if the sale will close. The sale price supports the assumption that the expected fair value after the remediation is in excess of the amount required to be capitalized. However, these matters, if resolved in a manner different from those assumed in current estimates, could have a material adverse effect on the Company’s financial condition, operating results and cash flows when resolved in a future reporting period. In connection with the environmental remediation obligation for Arsynco, in July 2009, Arsynco entered into a settlement agreement with BASF Corporation (“BASF”), the former owners of the Arsynco property. In accordance with the settlement agreement, BASF paid for a portion of the prior remediation costs and going forward, will co-remediate the property with the Company. The contract requires that BASF pay $550 related to past response costs and pay a proportionate share of the future remediation costs. Accordingly, the Company had recorded a gain of $550 in fiscal 2009. This $550 gain relates to the partial reimbursement of costs of approximately $1,200 that the Company had previously expensed. The Company also recorded an additional receivable from BASF, with an offset against property held for sale, representing its estimated portion of the future remediation costs. The balance of this receivable for future remediation costs as of June 30, 2018 and June 30, 2017 is $2,586 and $3,803, respectively, which is included in the accompanying consolidated balance sheets. In March 2006, Arsynco received notice from the EPA of its status as a PRP under the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) for a site described as the Berry’s Creek Study Area (“BCSA”). Arsynco is one of over 150 PRPs which have potential liability for the required investigation and remediation of the site. The estimate of the potential liability is not quantifiable for a number of reasons, including the difficulty in determining the extent of contamination and the length of time remediation may require. In addition, any estimate of liability must also consider the number of other PRPs and their financial strength. In July 2014, Arsynco received notice from the U.S. Department of Interior (“USDOI”) regarding the USDOI’s intent to perform a Natural Resource Damage (NRD) Assessment at the BCSA. Arsynco has to date declined to participate in the development and performance of the NRD assessment process. Based on prior practice in similar situations, it is possible that the State may assert a claim for natural resource damages with respect to the Arsynco site itself, and either the federal government or the State (or both) may assert claims against Arsynco for natural resource damages in connection with Berry's Creek; any such claim with respect to Berry's Creek could also be asserted against the approximately 150 PRPs which the EPA has identified in connection with that site. Any claim for natural resource damages with respect to the Arsynco site itself may also be asserted against BASF, the former owners of the Arsynco property. In September 2012, Arsynco entered into an agreement with three of the other PRPs that had previously been impleaded into New Jersey Department of Environmental Protection, et al. v. Occidental Chemical Corporation, et al., Docket No. ESX-L-9868-05 (the "NJDEP Litigation") and were considering impleading Arsynco into the same proceeding. Arsynco entered into an agreement to avoid impleader. Pursuant to the agreement, Arsynco agreed to (1) a tolling period that would not be included when computing the running of any statute of limitations that might provide a defense to the NJDEP Litigation; (2) the waiver of certain issue preclusion defenses in the NJDEP Litigation; and (3) arbitration of certain potential future liability allocation claims if the other parties to the agreement are barred by a court of competent jurisdiction from proceeding against Arsynco. In July 2015, Arsynco was contacted by an allocation consultant retained by a group of the named PRPs, inviting Arsynco to participate in the allocation among the PRPs’ investigation and remediation costs relating to the BCSA. Arsynco declined that invitation. Since an amount of the liability cannot be reasonably estimated at this time, no accrual is recorded for these potential future costs. The impact of the resolution of this matter on the Company’s results of operations in a particular reporting period is not currently known. A subsidiary of the Company markets certain agricultural protection products which are subject to the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA). FIFRA requires that test data be provided to the EPA to register, obtain and maintain approved labels for pesticide products. The EPA requires that follow-on registrants of these products compensate the initial registrant for the cost of producing the necessary test data on a basis prescribed in the FIFRA regulations. Follow-on registrants do not themselves generate or contract for the data. However, when FIFRA requirements mandate that new test data be generated to enable all registrants to continue marketing a pesticide product, often both the initial and follow-on registrants establish a task force to jointly undertake the testing effort. The Company is presently a member of several such task force groups, which requires payments for such memberships. In addition, in connection with our agricultural protection business, the Company plans to acquire product registrations and related data filed with the United States Environmental Protection Agency to support such registrations and other supporting data for several products. The acquisition of these product registrations and related data filed with the United States Environmental Protection Agency as well as payments to various task force groups could approximate $5,701 through fiscal 2019, of which $0 has been accrued as of June 30, 2018 and June 30, 2017. In February 2018, the Company was notified by the U.S. government that 11 generic drug products it acquired through its Acetris Health subsidiary in a product purchase agreement with Lucid were not in compliance with the federal Trade Agreement Act (“TAA”) country-of-origin provisions of a clause (the “Trade Agreements Clause”) contained in the government supply contracts acquired from Lucid (the “TAA Notification”). The 11 finished dosage form products purchased by the U.S. government are manufactured by Aurolife Pharma LLC which is located in Dayton, New Jersey using APIs sourced from India. In conjunction with this finding, the U.S. Department of Veterans Affairs (“VA”) requested that Acetris supply new TAA-compliant sources for the referenced products by March 9, 2018 and supply new TAA-compliant drugs to the government purchasers under the contracts by March 26, 2018. Acetris knew that it would be unable to meet these short deadlines. To avoid the government’s imposition of penalties for failure to meet these deadlines while Acetris appealed the above-mentioned findings, Acetris requested that the government defer imposition of these deadlines pending resolution of Acetris’ appeal. The Government declined this request and thereafter Acetris and the government entered into agreements that provided for a no-cost termination of each of the 11 supply contracts. On July 10, 2018, the Company was informed that Acetris received a favorable ruling from the United States Court of Federal Claims (the “Court”), in Acetris Health, LLC v. United States, invalidating the VA interpretation of the Trade Agreements Clause, which had resulted in the termination of 11 Acetris contracts with the VA. Finding in favor of Acetris, the Court granted a declaratory judgment establishing that under the federal Buy America Act the agencies are permitted to buy domestic end products, including commercial off-the-shelf products like generic drugs, that are manufactured in the United States when the Trade Agreements Clause is incorporated in government supply contracts, even if their components are not all manufactured in the United States. Although Department of Defense (the “DoD”) contracts were not at issue in the case, the decision also impacts Acetris’ ability to supply DoD with its products. The government has appealed the Court’s decision. Even if the Court’s ruling is affirmed on appeal, the Court’s ruling did not have the effect of reinstating the 11 terminated government supply agreements. Acetris may seek new contracts with these agencies, but no assurance can be given that any such contracts will be awarded. In March 2018, Sigmapharm Laboratories, LLC (“SigmaPharm”) commenced an action against Rising and the Company in the United States District Court for the Eastern District of Pennsylvania. The complaint arises out of an agreement, effective as of June 22, 2006 (the “SigmaPharm Agreement”), pursuant to which SigmaPharm agreed to supply certain generic pharmaceutical products (the “Products”) to Rising, and Rising in turn agreed to market and distribute the Products in the United States and pay SigmaPharm a share of the profits pursuant to a formula specified in the Agreement. The complaint alleges that Rising and Aceto breached the Agreement by failing to pay or timely make payments due under the Agreement and to disclose certain information to SigmaPharm. The complaint seeks, among other relief, a declaration that the Agreement has been terminated and that SigmaPharm has exclusive marketing and distribution rights to the Products; injunctive relief; and an unspecified amount of damages. In May 2018, Rising and the Company filed a motion to stay the action and compel arbitration, as required by the Agreement. That motion remains pending with the district court. In addition, SigmaPharm has also filed a “motion to enforce audit rights” in the federal litigation, which motion Rising and the Company have opposed because, among other reasons, any such request for final relief must be addressed to the arbitrators, and not to the district court. SigmaPharm has stopped supplying Products to Rising, claiming that it has validly terminated the Agreement. Accordingly, in June 2018, Rising filed an arbitration claim against SigmaPharm in New Jersey, seeking recovery from SigmaPharm of any failure-to-supply losses Rising may incur as well as lost future profits on sale of the Products, among other relief. The Company intends to vigorously protect its rights in these matters and prosecute its claim for damages against SigmaPharm. The impact of the resolution of this matter on the Company’s results of operations in a particular reporting period is not currently known. On April 16, 2018, the Company’s Rising subsidiary received a Grand Jury subpoena (the “DOJ Subpoena”) from the Antitrust Division of the DOJ. Rising is cooperating with the DOJ in response to the DOJ Subpoena. The Company and certain of its current and former officers are named defendants in two putative securities class actions (the “Securities Class Action Lawsuits”) filed in the United States District Court for the Eastern District of New York in April 2018, captioned Mulligan v. Aceto Corporation, et al, No. 2:18-cv-02425, and Yang v. Aceto Corporation, No. 1:18-cv-02437. The complaints arise from the April 19, 2018 drop in the Company’s stock price following the Company’s announcement on April 18, 2018 that it would recognize a substantial impairment charge for the third fiscal quarter. The complaints generally allege that the defendants violated the Securities Exchange Act of 1934 by making false and misleading statements in public filings with the SEC, and seek unspecified damages. On June 26, 2018, five motions were filed seeking to appoint lead plaintiff and approve lead plaintiff’s counsel pursuant to the Private Securities Litigation Reform Act of 1995, as well as to consolidate the Mulligan or Yang actions. Three motions were subsequently withdrawn or abandoned, and the remaining two motions are pending before the Court. Following the appointment of a lead plaintiff, the Company expects that the appointed lead plaintiff will file a single consolidated amended class action complaint to supersede the earlier complaints. The Company intends to vigorously defend itself. The impact of the resolution of this matter on the Company’s results of operations in a particular reporting period is not currently known. The Company leases office facilities in the United States, The Netherlands, Germany, France, Singapore and the Philippines expiring at various dates between October 2018 and October 2028. At June 30, 2018, the future minimum lease payments for office facilities and equipment for each of the five succeeding years and in the aggregate are as follows: Fiscal year Amount 2019 $ 2,827 2020 2,159 2021 1,533 2022 1,216 2023 1,164 Thereafter 5,698 $ 14,597 Total rental expense amounted to $1,864, $1,301 and $1,265 for fiscal 2018, 2017 and 2016, respectively. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | (17) Related Party Transactions During fiscal 2018, 2017 and 2016, the Company purchased inventory from its corporate joint venture in the amount of $3,556, $3,236 and $2,831, respectively. Rising Health and Acetris Health incurred costs of $2,636 and $305 in fiscal 2018 and $1,865 and $165 in fiscal 2017, respectively, related to consulting services provided by former Citron and Lucid employees, in connection with a transition services agreement entered into at the time of the Company’s 2016 product purchase agreement. Citron and Lucid are affiliates of Vimal Kavuru, a member of the Company’s Board of Directors. In October 2017, Rising commenced leasing approximately 125,000 gross square feet of warehouse space in Somerset, New Jersey. This building is owned by an affiliate of Mr. Kavuru. During fiscal 2018, Rising Health purchased inventory from Casper Pharma, LLC, which is an affiliate of Vimal Kavuru, a member of the Company’s Board of Directors, in the amount of $290. On November 2, 2016, the Company, Citron and Cronus Research Labs Private Limited, a research and development company headquartered in India that is Mr. Kavuru was not a member of the Company’s Board at the time that the above-mentioned transition services agreement, lease or Development Agreements were executed. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | (18) Recent Accounting Pronouncements In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2018-07 Compensation – Stock Compensation (Topic 718), Improvements to Nonemployee Share-Based Payment Accounting. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, In January 2017, the FASB issued ASU 2017-04 Intangibles - Goodwill and Other (Topic 350) In January 2017, the FASB issued ASU 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business, In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) Codification Improvements to Topic 842, Leases Leases (Topic 842), Targeted Improvements In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Assets. In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330) Simplifying the Measurement of Inventory. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), Revenue from Contracts with Customers - Deferral of the Effective Date Revenue from Contracts with Customers - Principal versus Agent Considerations (Reporting Revenue Gross versus Net) Revenue from Contracts with Customers - Identifying Performance Obligations and Licensing, Revenue from Contracts with Customers - Narrow Scope Improvements and Practical Expedients Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | (19) Segment Information The Company's business is organized along product lines into three principal segments: Human Health, Pharmaceutical Ingredients and Performance Chemicals. Human Health Pharmaceutical Ingredients – Performance Chemicals Agricultural Protection Products include herbicides, fungicides and insecticides that control weed growth as well as control the spread of insects and other microorganisms that can severely damage plant growth. The Company's chief operating decision maker evaluates performance of the segments based on net sales, gross profit and income before income taxes. Unallocated corporate amounts are deemed by the Company as administrative, oversight costs, not managed by the segment managers. The Company does not allocate assets by segment because the chief operating decision maker does not review the assets by segment to assess the segments' performance, as the assets are managed on an entity-wide basis. During all periods presented, our chief operating decision maker has been the Chief Executive Officer of the Company. In accordance with GAAP, the Company has aggregated certain operating segments into reportable segments because they have similar economic characteristics, and the operating segments are similar in all of the following areas: (a) the nature of the products and services; (b) the nature of the production processes; (c) the type or class of customer for their products and services; (d) the methods used to distribute their products or provide their services; and (e) the nature of the regulatory environment. Human Pharmaceutical Performance Chemicals Unallocated Consolidated 2018 Net sales $ 374,514 $ 158,854 $ 177,991 $ - $ 711,359 Gross profit 48,787 24,633 38,143 - 111,563 Income (loss) before income taxes (289,219 ) 7,654 18,935 (30,192 ) (292,822 ) 2017 Net sales $ 315,395 $ 157,445 $ 165,478 $ - $ 638,318 Gross profit 78,109 25,474 37,209 - 140,792 Income before income taxes 15,434 9,322 18,829 (26,224 ) 17,361 2016 Net sales $ 228,035 $ 161,011 $ 169,478 $ - $ 558,524 Gross profit 77,880 28,752 36,153 - 142,785 Income before income taxes 36,362 11,856 17,799 (12,163 ) 53,854 Net sales and gross profit by source country for the years ended June 30, 2018, 2017 and 2016 were as follows: Net Sales Gross Profit 2018 2017 2016 2018 2017 2016 United States $ 535,698 $ 483,678 $ 400,883 $ 84,133 $ 116,792 $ 117,180 Germany 96,708 79,105 76,666 17,148 13,609 15,154 Netherlands 11,980 9,949 16,217 1,296 1,231 1,598 France 36,644 35,796 30,177 4,436 4,651 4,043 Asia-Pacific 30,329 29,790 34,581 4,550 4,509 4,810 Total $ 711,359 $ 638,318 $ 558,524 $ 111,563 $ 140,792 $ 142,785 Sales generated from the United States to foreign countries amounted to $24,950, $21,750 and $23,810 for the fiscal years ended June 30, 2018, 2017 and 2016, respectively. Long-lived assets by geographic region as of June 30, 2018 and June 30, 2017 were as follows: Long-lived assets 2018 2017 United States $ 246,073 $ 528,359 Europe 3,192 2,538 Asia-Pacific 1,400 1,582 Total $ 250,665 $ 532,479 |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | (20) Unaudited Quarterly Financial Data The following is a summary of the unaudited quarterly results of operations for the years ended June 30, 2018 and 2017. For the quarter ended Fiscal year ended June 30, 2018 September 30, December 31, Restated June 30, Net sales $ 185,255 $ 171,229 $ 185,998 $ 168,877 Gross profit 39,983 33,970 27,696 9,914 Net income (loss) 454 (13,864 ) (267,985 ) (34,726 ) Net income (loss) per diluted share $ 0.01 $ (0.39 ) $ (7.59 ) $ (0.98 ) For the quarter ended Fiscal year ended June 30, 2017 September 30, December 31, March 31, June 30, Net sales $ 128,018 $ 125,552 $ 190,128 $ 194,620 Gross profit 30,839 30,805 42,319 36,829 Net income (loss) 4,385 (564 ) 5,588 1,967 Net income (loss) per diluted share $ 0.15 $ (0.02 ) $ 0.16 $ 0.06 The net income (loss) per common share calculation for each of the quarters is based on the weighted average number of shares outstanding in each period. Therefore, the sum of the quarters in a year does not necessarily equal the year’s net income (loss) per common share. (1) Includes pretax item of $902 environmental remediation charge in connection with Arsynco. (2) Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. (3) The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: As reported Adjustment As restated For the quarter ended March 31, 2018 Net loss $ (196,635 ) $ (71,350 ) $ (267,985 ) Net loss per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) (4) Includes pretax item of $920 environmental remediation charge in connection with Arsynco. (5) Includes pretax item of $170 environmental remediation charge in connection with Arsynco. (6) Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. (7) Includes pretax item of $733 environmental remediation charge in connection with Arsynco. (8) Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Jun. 30, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Valuation and Qualifying Accounts For the years ended June 30, 2018, 2017 and 2016 (dollars in thousands) Description Balance at beginning of year Charged to costs and expenses Charged to other accounts Deductions Balance at end of year Year ended June 30, 2018 Allowance for doubtful accounts $ 485 $ 516 - $ 14 (a) $ 987 Deferred tax valuation allowance 773 76,643 - - 77,416 Total $ 1,258 $ 77,159 - $ 14 $ 78,403 Year ended June 30, 2017 Allowance for doubtful accounts $ 513 $ (3 ) - $ 25 (a) $ 485 Deferred tax valuation allowance 794 - - 21 773 Total $ 1,307 $ (3 ) - $ 46 $ 1,258 Year ended June 30, 2016 Allowance for doubtful accounts $ 691 $ 76 - $ 254 (a) $ 513 Deferred tax valuation allowance 810 - - 16 794 Total $ 1,501 $ 76 - $ 270 $ 1,307 (a) Specific accounts written off as uncollectible. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the financial statements of the Company and its wholly-owned subsidiaries. All significant inter-company balances and transactions are eliminated in consolidation. |
Reclassifications | Reclassifications Certain reclassifications between trade receivables and accrued expenses have been made to the prior period consolidated balance sheet to conform to the current year presentation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses reported in those financial statements and the disclosure of contingent assets and liabilities at the date of the financial statements. These judgments can be subjective and complex, and consequently actual results could differ from those estimates and assumptions. The Company’s most critical accounting estimates relate to revenue recognition; allowance for doubtful accounts; inventory; goodwill and other indefinite-life intangible assets; long-lived assets; environmental matters and other contingencies; income taxes; stock-based compensation; and purchase price allocation. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid debt instruments with original maturities at the time of purchase of three months or less to be cash equivalents. Included in cash equivalents as of June 30, 2018 and June 30, 2017 is $343 and $220, respectively, of restricted cash. |
Investments | Investments The Company classifies investments in marketable securities as trading, available-for-sale or held-to-maturity at the time of purchase and periodically re-evaluates such classifications. Trading securities are carried at fair value, with unrealized holding gains and losses included in earnings. Held-to-maturity securities are recorded at cost and are adjusted for the amortization or accretion of premiums or discounts over the life of the related security. Unrealized holding gains and losses on available-for-sale securities are excluded from earnings and are reported as a separate component of accumulated other comprehensive income (loss) until realized. In determining realized gains and losses, the cost of securities sold is based on the specific identification method. Interest and dividends on the investments are accrued at the balance sheet date. |
Inventory | Inventory Inventory, which consists principally of finished goods, are stated at the lower of cost (first-in first-out method) and net realizable value. The Company writes down its inventory for estimated excess and obsolete goods by an amount equal to the difference between the carrying cost of the inventory and net realizable value based upon assumptions about future demand and market conditions. |
Environmental and Other Contingencies | Environmental and Other Contingencies The Company establishes accrued liabilities for environmental matters and other contingencies when it is probable that a liability has been incurred and the amount of the liability is reasonably estimable. If the contingency is resolved for an amount greater or less than the accrual, or the Company’s share of the contingency increases or decreases, or other assumptions relevant to the development of the estimate were to change, the Company would recognize an additional expense or benefit in the consolidated statements of income in the period such determination was made. |
Pension Benefits | Pension Benefits In connection with certain historical acquisitions in Germany, the Company assumed defined benefit pension plans covering certain employees who meet certain eligibility requirements. The net pension benefit obligations recorded and the related periodic costs are based on, among other things, assumptions of the discount rate, estimated return on plan assets, salary increases and the mortality of participants. The obligation for these claims and the related periodic costs are measured using actuarial techniques and assumptions. Actuarial gains and losses are deferred and amortized over future periods. The Company’s plans are funded in conformity with the funding requirements of applicable government regulations. |
Accumulated Other Comprehensive Loss | Accumul ate The components of accumulated other comprehensive loss as of June 30, 2018 and 2017 are as follows: 2018 2017 Cumulative foreign currency translation adjustments $ (2,483 ) $ (4,340 ) Fair value of interest rate swaps 1,839 (581 ) Defined benefit plans, net of tax (241 ) (191 ) Total $ (885 ) $ (5,112 ) The foreign currency translation adjustments for the years ended June 30, 2018 and 2017 primarily relate to the fluctuation of the conversion rate of the Euro. The currency translation adjustments are not adjusted for income taxes as they relate to indefinite investments in non-US subsidiaries. |
Common Stock | Common Stock At the annual meeting of shareholders of the Company, held on December 15, 2015, the Company’s shareholders approved the proposal to amend Aceto’s Certificate of Incorporation to increase the total number of authorized shares of common stock from 40,000 shares to 75,000 shares. Cash dividends of $0.065 per common share were paid in September, December, March of fiscal year 2018 and a cash dividend of $0.01 per common share was paid in June of fiscal year 2018. Cash dividends of $0.065 per common share were paid in September, December, March and June of fiscal year 2017. Cash dividends of $0.06 per common share were paid in September, December, March and June of fiscal year 2016. On September 6, 2018, the Company's board of directors declared a regular quarterly dividend of $.01 per share to be distributed on October 9, 2018 to shareholders of record as of September 24, 2018. On May 4, 2017, the Board of Directors of the Company authorized the continuation of the Company’s stock repurchase program, expiring in May 2020. Under the stock repurchase program, the Company is authorized to purchase up to 5,000 shares of common stock in open market or private transactions, at prices not to exceed the market value of the common stock at the time of such purchase. The Company did not repurchase shares in fiscal 2018 or fiscal 2017. The Board of Directors has authority under the Company’s Restated Certificate of Incorporation to issue shares of preferred stock with voting and other relative rights to be determined by the Board of Directors. |
Stock-based Compensation | Stock-based Compensation GAAP requires that all stock-based compensation be recognized as an expense in the financial statements and that such costs be measured at the fair value of the award. GAAP also requires that excess tax benefits related to stock option exercises be reflected as operating cash inflows. All restricted stock grants include a service requirement for vesting. The Company has also granted restricted stock units that include either a performance or market condition. The fair value of restricted stock unit with either solely a service requirement or with the combination of service and performance requirements is based on the closing fair market value of Aceto’s common stock on the date of grant. The fair value of market condition-based awards is estimated at the date of grant using a binomial lattice model or Monte Carlo Simulation. All models incorporate various assumptions such as the risk-free interest rate, expected volatility, expected dividend yield and expected life of the awards. Stock-based compensation expense is recognized on a straight-line basis over the service period or over our best estimate of the period over which the performance condition will be met, as applicable. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from product sales at the time of shipment and passage of title and risk of loss to the customer. The Company has no acceptance or other post-shipment obligations and does not offer product warranties or services to its customers. Sales are recorded net of estimated returns of damaged goods from customers, which historically have been immaterial, and sales incentives offered to customers. Sales incentives include volume incentive rebates. The Company records volume incentive rebates based on the underlying revenue transactions that result in progress by the customer in earning the rebate. The Company has arrangements with various third parties, such as drug store chains and managed care organizations, establishing prices for its finished dosage form generics. While these arrangements are made between Aceto and its customers, the customers independently select a wholesaler from which they purchase the products. Alternatively, certain wholesalers may enter into agreements with the customers, with the Company’s concurrence, which establishes the pricing for certain products which the wholesalers provide. Upon each sale of finished dosage form generics, estimates of chargebacks, rebates, returns, government reimbursed rebates, sales discounts and other adjustments are made. These estimates are based on historical experience, future expectations, contractual arrangements with wholesalers and indirect customers, and other factors known to management at the time of accrual. These estimates are recorded as reductions to gross revenues, with corresponding adjustments either as a reduction of accounts receivable or as a liability for price concessions. Under certain arrangements, Rising will issue a credit (referred to as a “chargeback”) to the wholesaler for the difference between the invoice price to the wholesaler and the customer’s contract price. As sales to the large wholesale customers increase or decrease, the reserve for chargebacks will also generally increase or decrease. The provision for chargebacks varies in relation to changes in sales volume, product mix, pricing and the level of inventory at the wholesalers. The Company continually monitors the reserve for chargebacks and makes adjustments when management believes that expected chargebacks may differ from the actual chargeback reserve. The Company estimates its provision for returns of finished dosage generics based on historical experience, product expiration dates, changes to business practices, credit terms and any extenuating circumstances known to management. While historical experience has allowed for reasonable estimations in the past, future returns may or may not follow historical trends. The Company continually monitors the reserve for returns and makes adjustments when management believes that actual product returns may differ from the established reserve. Generally, the reserve for returns increases as net sales increase. Government rebate accruals are based on estimated payments due to governmental agencies for purchases made by third parties under various governmental programs. Other rebates are offered to the Company’s key chain drug store, distributor and wholesaler customers to promote customer loyalty and increase product sales. These rebate programs provide customers with credits upon attainment of pre-established volumes or attainment of net sales milestones for a specified period. Other promotional programs are incentive programs offered to the customers. The Company provides a provision for government reimbursed rebates and other rebates at the time of sale based on contracted rates and historical redemption rates. Assumptions used to establish the provision include level of customer inventories, contract sales mix and average contract pricing. Aceto regularly reviews the information related to these estimates and adjusts the provision accordingly. Sales discount accruals are based on payment terms extended to customers. The following table summarizes activity in the consolidated balance sheet for contra assets and liability for price concessions for the years ended June 30, 2018, 2017 and 2016: Accruals for Chargebacks, Rebates, Returns and Other Allowances Government Non-Governmental Sales Chargebacks Returns Reimbursed Rebates Rebates & Other Discounts Balance at June 30, 2015 $ 32,167 $ 30,692 $ 938 $ 4,335 $ 2,682 Current year provision 247,186 7,618 5,124 90,915 10,267 Credits issued during the year (256,638 ) (15,482 ) (4,750 ) (88,048 ) (10,526 ) Balance at June 30, 2016 $ 22,715 $ 22,828 $ 1,312 $ 7,202 $ 2,423 Acquisitions 23,526 1,496 4,500 28,944 2,360 Current year provision 431,606 19,666 7,694 178,623 20,129 Credits issued during the year (417,928 ) (11,631 ) (4,642 ) (158,836 ) (18,875 ) Balance at June 30, 2017 $ 59,919 $ 32,359 $ 8,864 $ 55,933 $ 6,037 Current year provision 594,258 26,228 21,258 229,453 21,573 Credits issued during the year (587,490 ) (17,076 ) (20,464 ) (199,127 ) (21,202 ) Balance at June 30, 2018 $ 66,687 $ 41,511 $ 9,658 $ 86,259 $ 6,408 Credits issued during a given period represent cash payments or credit memos issued to the Company’s customers as settlement for the related reserve. Management has the experience and access to relevant information that it believes is necessary to reasonably estimate the amounts of such deductions from gross revenues. The Company regularly reviews the information related to these estimates and adjusts its reserves accordingly, if and when actual experience differs from previous estimates. The Company has not experienced any significant changes in its estimates as it relates to its chargebacks, rebates, sales discounts or product returns in each of the years in the three year period ended June 30, 2018. |
Partnered Products | Partnered Products The Company has various products that are subject to one of two types of collaborative arrangements with certain pharmaceutical companies. One type of arrangement relates to the Company’s finished dosage form generics business acting strictly as a distributor and purchasing products at arm’s length; in that type of arrangement, there is no profit sharing element. The second type of collaborative arrangement results in a profit sharing agreement between the Company and a developer and/or manufacturer of a finished dosage form generic drug. Both types of collaborative arrangements are conducted in the ordinary course of Rising’s business. The nature and purpose of both of these arrangements is for the Company to act as a distributor of finished dose products to its customers. Under these arrangements, the Company maintains distribution rights with respect to specific drugs within the U.S. marketplace. Generally, the distribution rights are exclusive rights in the territory. In certain arrangements, the Company is required to maintain service level minimums including, but not limited to, market share and purchase levels, in order to preserve the exclusive rights. The Company’s accounting policy with respect to these collaborative arrangements calls for the Company to present the sales and associated costs on a gross basis, with the amounts of the shared profits earned by the pharmaceutical companies on sales of these products, if applicable, included in cost of sales in the consolidated statements of income. The shared profits are settled on a quarterly basis. For each of the fiscal years 2018, 2017 and 2016, there was approximately $61,587, $54,454 and $41,036 respectively, of shared profits included in cost of sales, related to these types of collaborative arrangements. In the case of a collaborative arrangement where the Company solely acts as a distributor and purchases product at arm’s length, the costs of those purchases are included as a cost of sales similar to any other purchase arrangement. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs All amounts billed to a customer in a sales transaction related to shipping and handling represent revenues earned and are included in net sales. The costs incurred by the Company for shipping and handling are reported as a component of cost of sales. Cost of sales also includes inbound freight, receiving, inspection, warehousing, distribution network, and customs and duty costs. |
Net (Loss) Income Per Common Share | Net (Loss) Income Per Common Share Basic (loss) income per common share is based on the weighted average number of common shares outstanding during the period. Diluted income per common share includes the dilutive effect of potential common shares outstanding. The following table sets forth the reconciliation of weighted average shares outstanding and diluted weighted average shares outstanding for the fiscal years ended June 30, 2018, 2017 and 2016: 2018 2017 2016 Weighted average shares outstanding 35,216 32,283 29,110 Dilutive effect of stock options and restricted stock awards and units - 349 471 Diluted weighted average shares outstanding 35,216 32,632 29,581 The effect of approximately 149 common equivalent shares for the year ended June 30, 2018 was excluded from the diluted weighted average shares outstanding due to a net loss for the year. There were 386 common equivalent shares outstanding for the year ended June 30, 2018 that were not included in the calculation of diluted net income per common share because their effect would have been anti-dilutive. The Convertible Senior Notes (see Note 9) will only be included in the dilutive net (loss) income per share calculations using the treasury stock method during periods in which the average market price of Aceto’s common stock is above the applicable conversion price of the Convertible Senior Notes, or $33.215 per share, and the impact would not be anti-dilutive. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company assesses the need to record a valuation allowance against its deferred tax assets based on the consideration of all available positive and negative evidence, using a more likely than not standard. This assessment considers, among other matters, recent losses; a forecast of future income or losses; the ability to carryback and carryforward losses; the Company's experience with tax attributes expiring unused; and tax planning strategies. For a tax position that meets the more-likely-than-not recognition threshold, the tax benefit is measured as the largest amount that is judged to have a greater than 50% likelihood of being realized upon ultimate settlement with a taxing authority. Interest and penalties recognized on the liability for unrecognized tax benefits is recorded as income tax expense. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and are depreciated using the straight line method over the estimated useful lives of the related asset. The Company allocates depreciation and amortization to cost of sales. Expenditures for improvements that extend the useful life of an asset are capitalized. Ordinary repairs and maintenance are expensed as incurred. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any related gains or losses are included in income. The components of property and equipment were as follows: June 30, 2018 June 30, 2017 Estimated useful Machinery and equipment $ 1,198 $ 398 3-7 Leasehold improvements 2,641 979 Shorter of asset life or lease term Computer equipment and software 9,589 7,255 3-5 Furniture and fixtures 2,638 2,094 5-10 Automobiles 194 184 3 Building 8,652 8,678 20 Land 1,958 1,967 - 26,870 21,555 Accumulated depreciation and amortization 12,690 11,127 $ 14,180 $ 10,428 Property held for sale represents land and land improvements of $6,113 and $7,152 at June 30, 2018 and 2017, respectively. See Note 8, “Environmental Remediation” for further discussion on property held for sale. Depreciation and amortization of property and equipment amounted to $2,006, $1,520 and $1,522 for the years ended June 30, 2018, 2017, and 2016 respectively. |
Goodwill and Other Intangibles | Goodwill and Other Intangibles Goodwill is calculated as the excess of the cost of purchased businesses over the fair value of their underlying net assets. Other intangible assets principally consist of customer relationships, license agreements, technology-based intangibles, EPA registrations and related data, trademarks and product rights and related intangibles. Goodwill and other intangible assets that have an indefinite life are not amortized. The Company accounts for goodwill and intangible assets in accordance with ASC 350, Intangibles – Goodwill and Other (“ASC 350”). ASC 350 requires that goodwill and other intangibles with indefinite lives be tested for impairment annually or on an interim basis if events or circumstances indicate that the fair value of an asset has decreased below its carrying value. During the third quarter of fiscal 2018, the Company’s Rising Pharmaceuticals reporting unit (which is part of the Human Health segment) had a decline in actual and forecasted revenue and earnings due to the persistent adverse conditions in the generics market. In addition, as previously discussed, the Company was notified by the U.S. government that 11 generic drug products it acquired through its Acetris Health subsidiary (part of the Rising reporting unit which is part of the Human Health segment) in a product purchase agreement with an entity formerly known as Lucid Pharma LLC were not in compliance with the federal Trade Agreement Act country-of-origin provisions of a clause contained in the government supply contracts acquired from Lucid. Based on these indicators, the Company determined that it was necessary to perform an interim goodwill impairment analysis at March 31, 2018 for its Rising reporting unit. The Company elected to early adopt Accounting Standards Update (“ASU”) 2017-04, Intangibles- Goodwill and Other (Topic 350), The fair value of the Rising reporting unit was estimated using many assumptions and estimates and a market participant approach that directly impacts the results of the testing. In making these assumptions and estimates, the Company used industry accepted valuation models and set criteria that were reviewed and approved by various levels of management. Accordingly, with respect to the third quarter of fiscal 2018, the Company recognized a pre-tax non-cash goodwill impairment charge of $235,110 related to the Rising reporting unit. In accordance with GAAP, the Company tests goodwill and other indefinite life intangible assets for impairment on at least an annual basis. Goodwill impairment exists if the net book value of a reporting unit exceeds its estimated fair value. Initially, an assessment of qualitative factors is conducted in order to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. To determine the fair value of these intangible assets, the Company uses many assumptions and estimates using a market participant approach that directly impact the results of the testing. In making these assumptions and estimates, the Company uses industry accepted valuation models and set criteria that are reviewed and approved by various levels of management. There was no impairment of goodwill and other intangible assets in fiscal 2017 and fiscal 2016. |
Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of | Impairment of Long-Lived Assets and Long-Lived Assets to be Disposed of Long-lived assets and certain identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined such indicators are present and the review indicates that the assets will not be fully recoverable, based on undiscounted estimated cash flows over the remaining amortization periods, their carrying values are reduced to estimated fair value. Measurements based on undiscounted cash flows are Level 3 inputs. As noted above, during the third quarter of fiscal 2018, the Company’s Rising Pharmaceuticals subsidiary had a decline in actual and forecasted revenue and earnings and therefore the Company performed an impairment test on the related intangibles. The projected undiscounted cash flows for certain intangibles were determined to be less than the carrying value, and as a result, the Company recognized an impairment charge of $5,745 in the third quarter of fiscal 2018. Additionally, as previously noted, the Company was notified by the U.S. government that 11 generic drug products it acquired through its Acetris Health subsidiary in a product purchase agreement with an entity formerly known as Lucid Pharma LLC are not in compliance with the federal Trade Agreement Act country-of-origin provisions of a clause contained in the government supply contracts acquired from Lucid. Based on this, the Company performed an impairment test on the related intangible asset and recognized an impairment charge of $15,411 on the customer relationships intangible asset in the third quarter of fiscal 2018. There were no impairment charges in fiscal 2017 and 2016. Recoverability of assets held for sale is measured by comparing the carrying amount of the assets to their estimated fair value. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceed the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. |
Accounting for Derivatives and Hedging Activities | Accounting for Derivatives and Hedging Activities The Company accounts for derivatives and hedging activities under the provisions of GAAP which establishes accounting and reporting guidelines for derivative instruments and hedging activities. GAAP requires the recognition of all derivative financial instruments as either assets or liabilities in the statement of financial condition and measurement of those instruments at fair value. Changes in the fair values of those derivatives are reported in earnings or other comprehensive income depending on the designation of the derivative and whether it qualifies for hedge accounting. The accounting for gains and losses associated with changes in the fair value of a derivative and the effect on the consolidated financial statements depends on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value or cash flows of the asset or liability hedged. The method that is used for assessing the effectiveness of a hedging derivative, as well as the measurement approach for determining the ineffective aspects of the hedge, is established at the inception of the hedged instrument. The Company operates internationally, therefore its earnings, cash flows and financial positions are exposed to foreign currency risk from foreign-currency-denominated receivables and payables, which, in the U.S., have been denominated in various foreign currencies, including, among others, Euros, British Pounds, Japanese Yen, Singapore Dollars and Chinese Renminbi and at certain foreign subsidiaries in U.S. dollars and other non-local currencies. Management believes it is prudent to minimize the risk caused by foreign currency fluctuation. Management minimizes the currency risk on its foreign currency receivables and payables by purchasing foreign currency contracts (futures) with one of its financial institutions. Futures are traded on regulated U.S. and international exchanges and represent commitments to purchase or sell a particular foreign currency at a future date and at a specific price. Since futures are purchased for the amount of the foreign currency receivable or for the amount of foreign currency needed to pay for specific purchase orders, and the futures mature on the due date of the related foreign currency vendor invoices or customer receivables, the Company believes that it eliminates risks relating to foreign currency fluctuation. The Company takes delivery of all futures to pay suppliers in the appropriate currency. The gains or losses for the changes in the fair value of the foreign currency contracts are recorded in cost of sales (sales) and offset the gains or losses associated with the impact of changes in foreign exchange rates on trade payables (receivables) denominated in foreign currencies. Senior management and members of the financial department continually monitor foreign currency risks and the use of this derivative instrument. In conjunction with its existing credit agreement (see Note 9), the Company entered into an interest rate swap on March 21, 2017 for an additional interest cost of 2.005% on a notional amount of $100,000, which has been designated as a cash flow hedge . The expiration date of this interest rate swap is December 21, 2021. |
Foreign Currency | Foreign Currency The financial statements of the Company’s foreign subsidiaries are translated into U.S. dollars in accordance with GAAP. Where the functional currency of a foreign subsidiary is its local currency, balance sheet accounts are translated at the current exchange rate and income statement items are translated at the average exchange rate for the period. Exchange gains or losses resulting from the translation of financial statements of foreign operations are accumulated in other comprehensive income. Where the local currency of a foreign subsidiary is not its functional currency, financial statements are translated at either current or historical exchange rates, as appropriate. |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of components of accumulated other comprehensive income | 2018 2017 Cumulative foreign currency translation adjustments $ (2,483 ) $ (4,340 ) Fair value of interest rate swaps 1,839 (581 ) Defined benefit plans, net of tax (241 ) (191 ) Total $ (885 ) $ (5,112 ) |
Schedule of contra assets and liability for price concessions | Accruals for Chargebacks, Rebates, Returns and Other Allowances Government Non-Governmental Sales Chargebacks Returns Reimbursed Rebates Rebates & Other Discounts Balance at June 30, 2015 $ 32,167 $ 30,692 $ 938 $ 4,335 $ 2,682 Current year provision 247,186 7,618 5,124 90,915 10,267 Credits issued during the year (256,638 ) (15,482 ) (4,750 ) (88,048 ) (10,526 ) Balance at June 30, 2016 $ 22,715 $ 22,828 $ 1,312 $ 7,202 $ 2,423 Acquisitions 23,526 1,496 4,500 28,944 2,360 Current year provision 431,606 19,666 7,694 178,623 20,129 Credits issued during the year (417,928 ) (11,631 ) (4,642 ) (158,836 ) (18,875 ) Balance at June 30, 2017 $ 59,919 $ 32,359 $ 8,864 $ 55,933 $ 6,037 Current year provision 594,258 26,228 21,258 229,453 21,573 Credits issued during the year (587,490 ) (17,076 ) (20,464 ) (199,127 ) (21,202 ) Balance at June 30, 2018 $ 66,687 $ 41,511 $ 9,658 $ 86,259 $ 6,408 |
Schedule of reconciliation of weighted average shares outstanding and diluted weighted average shares outstanding | 2018 2017 2016 Weighted average shares outstanding 35,216 32,283 29,110 Dilutive effect of stock options and restricted stock awards and units - 349 471 Diluted weighted average shares outstanding 35,216 32,632 29,581 |
Schedule of components of property and equipment | June 30, 2018 June 30, 2017 Estimated useful Machinery and equipment $ 1,198 $ 398 3-7 Leasehold improvements 2,641 979 Shorter of asset life or lease term Computer equipment and software 9,589 7,255 3-5 Furniture and fixtures 2,638 2,094 5-10 Automobiles 194 184 3 Building 8,652 8,678 20 Land 1,958 1,967 - 26,870 21,555 Accumulated depreciation and amortization 12,690 11,127 $ 14,180 $ 10,428 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Schedule of purchase price to the estimated fair values of the assets acquired and liabilities assumed | Trade receivables $ 78,937 Inventory 38,995 Prepaid expenses and other current assets 1,425 Goodwill 169,071 Intangible assets 224,850 Total assets acquired 513,278 Accounts payable 46,840 Accrued expenses 53,458 Deferred payment 50,000 Contingent consideration 2,580 Net assets acquired $ 360,400 |
Schedule of unaudited pro forma operating results | Year ended June 30, 2017 2016 Net sales $ 739,318 $ 731,100 Net income 24,166 30,469 Basic net income per common share $ 0.70 $ 0.89 Diluted net income per common share $ 0.69 $ 0.88 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of summary of short-term investments | June 30, 2018 June 30, 2017 Held to Maturity Investments Time deposits $ 3,030 $ 2,046 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of changes in contingent consideration | Balance as of June 30, 2016 $ 132 Acquisitions 2,580 Accrued interest expense 237 Change in foreign currency exchange rate 3 Balance as of June 30, 2017 $ 2,952 Reversal of fair value of liability (2,505 ) Accrued interest expense 386 Settlement (145 ) Change in foreign currency exchange rate (5 ) Balance as of June 30, 2018 $ 683 |
Schedule of valuation of the Company's financial assets and liabilities | Fair Value Measurements at June 30, 2018 Using Quoted Prices Significant Significant Total Cash equivalents: Time deposits - $ 3,218 - $ 3,218 Investments: Time deposits - 3,030 - 3,030 Foreign currency contracts-assets (1) - 362 - 362 Foreign currency contracts-liabilities (2) - 304 - 304 Derivative asset for interest rate swap (3) 1,839 1,839 Contingent consideration (4) - - $ 683 683 (1) Included in “Other receivables” in the accompanying Consolidated Balance Sheet as of June 30, 2018. (2) Included in “Accrued expenses” in the accompanying Consolidated Balance Sheet as of June 30, 2018. (3) Included in “Other Assets” in the accompanying Consolidated Balance Sheet as of June 30, 2018. (4) Included in “Long-term liabilities” in the accompanying Consolidated Balance Sheet as of June 30, 2018. Fair Value Measurements at June 30, 2017 Using Quoted Prices Significant Significant Total Cash equivalents: Time deposits - $ 5,781 - $ 5,781 Investments: Time deposits - 2,046 - 2,046 Foreign currency contracts-assets (5) - 486 - 486 Foreign currency contracts-liabilities (6) - 137 - 137 Derivative liability for interest rate swap (7) 581 581 Contingent consideration (8) - - $ 2,952 2,952 (5) Included in “Other receivables” in the accompanying Consolidated Balance Sheet as of June 30, 2017. (6) Included in “Accrued expenses” in the accompanying Consolidated Balance Sheet as of June 30, 2017. (7) Included in “Long-term liabilities” in the accompanying Consolidated Balance Sheet as of June 30, 2017. (8) $145 included in “Accrued expenses” and $2,807 included in “Long-term liabilities” in the accompanying Consolidated Balance Sheet as of June 30, 2017. |
Goodwill and Other Intangible36
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Human Pharmaceutical Performance Total Balance as of June 30, 2016 $ 66,039 $ 1,651 $ 181 $ 67,871 Acquisitions 169,071 - - 169,071 Changes in foreign currency exchange rates - 23 5 28 Balance as of June 30, 2017 $ 235,110 $ 1,674 $ 186 $ 236,970 Impairment (235,110 ) - - (235,110 ) Changes in foreign currency exchange rates - 18 5 23 Balance as of June 30, 2018 $ - $ 1,692 $ 191 $ 1,883 |
Schedule of Intangible assets subject to amortization | Gross Accumulated Net Book June 30, 2018 Customer relationships $ 94,287 $ 21,615 $ 72,672 Trademarks 82 74 8 Product rights and related intangibles 212,749 54,094 158,655 License agreements 937 866 71 EPA registrations and related data 14,527 12,131 2,396 $ 322,582 $ 88,780 $ 233,802 Gross Accumulated Net Book June 30, 2017 Customer relationships $ 110,787 $ 13,968 $ 96,819 Trademarks 2,218 2,195 23 Product rights and related intangibles 221,335 37,677 183,658 License agreements 6,537 6,035 502 EPA registrations and related data 14,307 11,011 3,296 $ 355,184 $ 70,886 $ 284,298 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Payables And Accruals [Abstract] | |
Schedule of components of accrued expenses | 2018 2017 Accrued compensation $ 5,563 $ 5,793 Accrued environmental remediation costs-current portion 5,535 6,112 Reserve for price concessions 137,428 97,156 Partnered product liabilities 14,880 16,068 Other accrued expenses 17,840 9,799 $ 181,246 $ 134,928 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | June 30, 2018 2017 Convertible Senior Notes, net $ 127,857 $ 121,676 Revolving bank loans 62,000 90,000 Term bank loans 124,959 139,227 Mortgage 2,582 2,763 317,398 353,666 Less current portion 14,482 14,466 $ 302,916 $ 339,200 |
Schedule of carrying value of the notes | June 30, June 30, Principal amount $ 143,750 $ 143,750 Unamortized debt discount (13,909 ) (19,255 ) Unamortized debt issuance costs (1,984 ) (2,819 ) Net carrying value $ 127,857 $ 121,676 |
Schedule of components of total interest expense related to the notes | 2018 2017 Contractual coupon $ 2,875 $ 2,867 Amortization of debt discount 5,346 5,012 Amortization of debt issuance costs 835 835 $ 9,056 $ 8,714 |
Schedule of maturities of long-term debt | 2019 14,482 2020 14,465 2021 142,322 2022 144,352 2023 197 Thereafter 1,580 $ 317,398 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Disclosure Of Compensation Related Costs Share based Payments [Abstract] | |
Schedule of shares of common stock under options for all plans | Shares subject to Weighted average exercise price per share Aggregate Balance at June 30, 2015 397 $ 7.28 Granted - - Exercised (95 ) 7.56 Forfeited (including cancelled options) - - Balance at June 30, 2016 302 $ 7.19 Granted 28 20.03 Exercised (70 ) 7.90 Forfeited (including cancelled options) - - Balance at June 30, 2017 260 $ 8.36 Granted - - Exercised (96 ) 6.29 Forfeited (including cancelled options) (35 ) 17.61 Balance at June 30, 2018 129 $ 7.44 $ - Options exercisable at June 30, 2018 129 $ 7.44 $ - |
Schedule of non-vested stock options activity | Shares Weighted Non-vested at June 30, 2017 28 $ 5.44 Granted - - Vested - - Forfeited (28 ) (5.44 ) Non-vested at June 30, 2018 - $ - |
Schedule of restricted stock awards including restricted stock units | Shares Weighted Non-vested at beginning of year 797 $ 21.24 Granted 727 10.27 Vested (498 ) 18.52 Forfeited (200 ) 14.33 Non-vested at June 30, 2018 826 $ 14.90 |
Interest and Other Income (Tabl
Interest and Other Income (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Other Income And Expenses [Abstract] | |
Schedule of interest and other income | 2018 2017 2016 Dividends $ 199 $ 277 $ 222 Interest 278 264 313 Foreign government subsidies received 53 64 25 Joint venture equity earnings 2,173 2,336 2,060 Foreign currency gains (losses) 136 (298 ) 56 Deferred compensation plan losses (13 ) (257 ) (35 ) Rental income 163 158 154 Miscellaneous income 56 33 28 $ 3,045 $ 2,577 $ 2,823 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before income tax, domestic and foreign | 2018 2017 2016 Domestic operations $ (303,329 ) $ 9,555 $ 43,906 Foreign operations 10,507 7,806 9,948 $ (292,822 ) $ 17,361 $ 53,854 |
Schedule of components of provision for income taxes | 2018 2017 2016 Federal: Current $ 6,635 $ 3,713 $ 15,129 Deferred 10,239 (585 ) (204 ) State and local: Current 197 555 755 Deferred 802 (110 ) 173 Foreign: Current 2,824 2,221 3,222 Deferred 2,602 191 13 $ 23,299 $ 5,985 $ 19,088 |
Schedule of tax effects of temporary differences that give rise to the deferred tax assets and liabilities | 2018 2017 Deferred tax assets: Accrued deferred compensation $ 1,885 $ 4,229 Accrual for sales deductions not currently deductible 8,387 5,796 Additional inventoried costs for tax purposes 439 697 Allowance for doubtful accounts receivable 182 106 Depreciation and amortization 12,663 11,957 Debt issuance costs 3,506 7,611 Foreign deferred tax assets 858 983 Deferred rent 145 - Domestic net operating loss carryforwards 7,486 81 Foreign net operating loss carryforwards 916 692 Goodwill 45,504 - Total gross deferred tax assets 81,971 32,152 Valuation allowances (77,416 ) (773 ) 4,555 31,379 Deferred tax liabilities: Foreign deferred tax liabilities (2,495 ) (65 ) Goodwill - (10,244 ) Original issue discount – convertible senior notes (3,310 ) (7,260 ) Other (286 ) (1,136 ) Total gross deferred tax liabilities (6,091 ) (18,705 ) Net deferred tax assets (liabilities) $ (1,536 ) $ 12,674 |
Schedule of current and non-current deferred tax assets (liabilities) | 2018 2017 Current deferred tax assets, net $ - $ 546 Non-current deferred tax assets, net - 19,453 Non-current deferred tax liabilities (1,536 ) (7,325 ) Net deferred tax assets $ (1,536 ) $ 12,674 |
Schedule of reconciliation of the statutory federal income tax rate and the effective tax rate for continuing operation | 2018 2017 2016 Federal statutory tax rate 28.1 % 35.0 % 35.0 % State and local taxes, net of federal income tax benefit 2.0 1.2 1.7 Change in valuation allowance (26.2 ) 0.1 - Foreign withholding taxes (0.8 ) - - Foreign tax rate differential - (1.8 ) (0.4 ) Rate differential between fiscal year 2018 statutory rate and enacted rate for subsequent period (6.0 ) - - Revaluation of the deferred tax asset and liabilities due to the tax law change (1.8 ) - - Transition tax (2.1 ) - - Other (1.2 ) - (0.9 ) Effective tax rate (8.0 )% 34.5 % 35.4 % |
Supplemental Cash Flow Inform42
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of cash paid for interest and income taxes | 2018 2017 2016 Interest $ 13,085 $ 7,794 $ 2,970 Income taxes, net of refunds $ 5,272 $ 7,912 $ 16,076 |
Commitments, Contingencies an43
Commitments, Contingencies and Other Matters (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments for office facilities and equipment | Fiscal year Amount 2019 $ 2,827 2020 2,159 2021 1,533 2022 1,216 2023 1,164 Thereafter 5,698 $ 14,597 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of segment performance measures | Human Pharmaceutical Performance Chemicals Unallocated Consolidated 2018 Net sales $ 374,514 $ 158,854 $ 177,991 $ - $ 711,359 Gross profit 48,787 24,633 38,143 - 111,563 Income (loss) before income taxes (289,219 ) 7,654 18,935 (30,192 ) (292,822 ) 2017 Net sales $ 315,395 $ 157,445 $ 165,478 $ - $ 638,318 Gross profit 78,109 25,474 37,209 - 140,792 Income before income taxes 15,434 9,322 18,829 (26,224 ) 17,361 2016 Net sales $ 228,035 $ 161,011 $ 169,478 $ - $ 558,524 Gross profit 77,880 28,752 36,153 - 142,785 Income before income taxes 36,362 11,856 17,799 (12,163 ) 53,854 |
Schedule of net sales and gross profit by source country | Net Sales Gross Profit 2018 2017 2016 2018 2017 2016 United States $ 535,698 $ 483,678 $ 400,883 $ 84,133 $ 116,792 $ 117,180 Germany 96,708 79,105 76,666 17,148 13,609 15,154 Netherlands 11,980 9,949 16,217 1,296 1,231 1,598 France 36,644 35,796 30,177 4,436 4,651 4,043 Asia-Pacific 30,329 29,790 34,581 4,550 4,509 4,810 Total $ 711,359 $ 638,318 $ 558,524 $ 111,563 $ 140,792 $ 142,785 |
Schedule of long-lived assets by geographic region | Long-lived assets 2018 2017 United States $ 246,073 $ 528,359 Europe 3,192 2,538 Asia-Pacific 1,400 1,582 Total $ 250,665 $ 532,479 |
Unaudited Quarterly Financial45
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Jun. 30, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of unaudited quarterly financial data | For the quarter ended Fiscal year ended June 30, 2018 September 30, December 31, Restated June 30, Net sales $ 185,255 $ 171,229 $ 185,998 $ 168,877 Gross profit 39,983 33,970 27,696 9,914 Net income (loss) 454 (13,864 ) (267,985 ) (34,726 ) Net income (loss) per diluted share $ 0.01 $ (0.39 ) $ (7.59 ) $ (0.98 ) For the quarter ended Fiscal year ended June 30, 2017 September 30, December 31, March 31, June 30, Net sales $ 128,018 $ 125,552 $ 190,128 $ 194,620 Gross profit 30,839 30,805 42,319 36,829 Net income (loss) 4,385 (564 ) 5,588 1,967 Net income (loss) per diluted share $ 0.15 $ (0.02 ) $ 0.16 $ 0.06 The net income (loss) per common share calculation for each of the quarters is based on the weighted average number of shares outstanding in each period. Therefore, the sum of the quarters in a year does not necessarily equal the year’s net income (loss) per common share. (1) Includes pretax item of $902 environmental remediation charge in connection with Arsynco. (2) Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. (3) The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: As reported Adjustment As restated For the quarter ended March 31, 2018 Net loss $ (196,635 ) $ (71,350 ) $ (267,985 ) Net loss per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) (4) Includes pretax item of $920 environmental remediation charge in connection with Arsynco. (5) Includes pretax item of $170 environmental remediation charge in connection with Arsynco. (6) Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. (7) Includes pretax item of $733 environmental remediation charge in connection with Arsynco. (8) Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. |
Summary of Significant Accoun46
Summary of Significant Accounting Policies (Components of accumulated other comprehensive loss (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Accounting Policies [Abstract] | ||
Cumulative foreign currency translation adjustments | $ (2,483) | $ (4,340) |
Fair value of interest rate swaps | 1,839 | (581) |
Defined benefit plans, net of tax | (241) | (191) |
Total | $ (885) | $ (5,112) |
Summary of Significant Accoun47
Summary of Significant Accounting Policies (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 1,258 | $ 1,307 | $ 1,501 |
Credits issued during the year | (14) | (46) | (270) |
Balance at end of year | 78,403 | 1,258 | 1,307 |
Chargebacks | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 59,919 | 22,715 | 32,167 |
Acquisitions | 23,526 | ||
Current year provision | 594,258 | 431,606 | 247,186 |
Credits issued during the year | (587,490) | (417,928) | (256,638) |
Balance at end of year | 66,687 | 59,919 | 22,715 |
Returns | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 32,359 | 22,828 | 30,692 |
Acquisitions | 1,496 | ||
Current year provision | 26,228 | 19,666 | 7,618 |
Credits issued during the year | (17,076) | (11,631) | (15,482) |
Balance at end of year | 41,511 | 32,359 | 22,828 |
Government Reimbursed Rebates | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 8,864 | 1,312 | 938 |
Acquisitions | 4,500 | ||
Current year provision | 21,258 | 7,694 | 5,124 |
Credits issued during the year | (20,464) | (4,642) | (4,750) |
Balance at end of year | 9,658 | 8,864 | 1,312 |
Non-Governmental Rebates & Other | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 55,933 | 7,202 | 4,335 |
Acquisitions | 28,944 | ||
Current year provision | 229,453 | 178,623 | 90,915 |
Credits issued during the year | (199,127) | (158,836) | (88,048) |
Balance at end of year | 86,259 | 55,933 | 7,202 |
Sales Discounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 6,037 | 2,423 | 2,682 |
Acquisitions | 2,360 | ||
Current year provision | 21,573 | 20,129 | 10,267 |
Credits issued during the year | (21,202) | (18,875) | (10,526) |
Balance at end of year | $ 6,408 | $ 6,037 | $ 2,423 |
Summary of Significant Accoun48
Summary of Significant Accounting Policies (Schedule of Reconciliation of Weighted Average Shares Outstanding and Diluted Weighted Average Shares Outstanding) (Detail) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounting Policies [Abstract] | |||
Weighted average shares outstanding | 35,216 | 32,283 | 29,110 |
Dilutive effect of stock options and restricted stock awards and units | 0 | 349 | 471 |
Diluted weighted average shares outstanding | 35,216 | 32,632 | 29,581 |
Summary of Significant Accoun49
Summary of Significant Accounting Policies (Schedule of Components of Property and Equipment) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 26,870 | $ 21,555 |
Accumulated depreciation and amortization | 12,690 | 11,127 |
Property plant and equipment, net | 14,180 | 10,428 |
Machinery and equipment | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 1,198 | 398 |
Machinery and equipment | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Machinery and equipment | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful life | 7 years | |
Leasehold improvements | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 2,641 | 979 |
Property, plant and equipment, estimated useful life | Shorter of asset life or lease term | |
Computer equipment and software | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 9,589 | 7,255 |
Computer equipment and software | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful life | 3 years | |
Computer equipment and software | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Furniture and fixtures | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 2,638 | 2,094 |
Furniture and fixtures | Minimum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful life | 5 years | |
Furniture and fixtures | Maximum | ||
Significant Accounting Policies [Line Items] | ||
Property, plant and equipment, estimated useful life | 10 years | |
Automobiles | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 194 | 184 |
Property, plant and equipment, estimated useful life | 3 years | |
Building | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 8,652 | 8,678 |
Property, plant and equipment, estimated useful life | 20 years | |
Land | ||
Significant Accounting Policies [Line Items] | ||
Property plant and equipment, gross | $ 1,958 | $ 1,967 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | May 04, 2017 | Mar. 21, 2017 | Sep. 06, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 15, 2015 |
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Restricted cash | $ 343 | $ 220 | $ 343 | $ 220 | |||||||||||||||
Common stock, shares authorized | 75,000 | 75,000 | 75,000 | 75,000 | 40,000 | ||||||||||||||
Stock repurchase program, expiration date | May 2,020 | ||||||||||||||||||
Stock repurchase program, shares authorized | 5,000 | ||||||||||||||||||
Cash dividends paid | $ 0.01 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.065 | $ 0.06 | $ 0.06 | $ 0.06 | $ 0.06 | |||||||
Dividends declared, per share | $ 0.205 | $ 0.26 | $ 0.24 | ||||||||||||||||
Shared profits included in cost of sales related to collaborative arrangements | $ 61,587 | $ 54,454 | $ 41,036 | ||||||||||||||||
Property held for sale | $ 6,113 | $ 7,152 | 6,113 | 7,152 | |||||||||||||||
Depreciation and amortization | $ 2,006 | $ 1,520 | $ 1,522 | ||||||||||||||||
Number of shares excluded from diluted weighted average shares outstanding | 149 | ||||||||||||||||||
Non-cash goodwill impairment charge | $ (235,110) | ||||||||||||||||||
Number of anti-dilutive shares exclude from calculation of diluted net income per common share | 386 | ||||||||||||||||||
Impairment charges | $ 5,745 | $ 250,521 | |||||||||||||||||
Customer related intangible assets | |||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Intangible asset and recognized an impairment charge | $ 15,411 | ||||||||||||||||||
Senior Notes | |||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Conversion price | $ 33.215 | $ 33.215 | |||||||||||||||||
Interest rate swap | Cash flow hedging | December 21, 2021 | |||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Derivative, notional amount | $ 100,000 | ||||||||||||||||||
Derivative, expiration date | Dec. 21, 2021 | ||||||||||||||||||
Additional interest cost rate of derivative | 2.005% | ||||||||||||||||||
Subsequent Event | |||||||||||||||||||
Summary Of Significant Accounting Policies [Line Items] | |||||||||||||||||||
Dividends declared, per share | $ 0.01 | ||||||||||||||||||
Dividends declared, date of declaration | Sep. 6, 2018 | ||||||||||||||||||
Dividends declared, date of distribution | Oct. 9, 2018 | ||||||||||||||||||
Dividends declared, date of record | Sep. 24, 2018 |
Business Combinations (Detail)
Business Combinations (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 21, 2016 | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,883 | $ 236,970 | $ 67,871 | |
Contingent consideration | 683 | 2,952 | $ 132 | |
Citron and Lucid | ||||
Business Acquisition [Line Items] | ||||
Trade receivables | $ 78,937 | |||
Inventory | 38,995 | |||
Prepaid expenses and other current assets | 1,425 | |||
Goodwill | 169,071 | |||
Intangible assets | 224,850 | |||
Total assets acquired | 513,278 | |||
Accounts payable | 46,840 | |||
Accrued expenses | 53,458 | |||
Deferred payment | 50,000 | |||
Contingent consideration | $ 683 | $ 2,807 | 2,580 | |
Net assets acquired | $ 360,400 |
Business Combinations (Detail 1
Business Combinations (Detail 1) - Citron and Lucid - Pro forma operating results as of July 1, 2015 - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition [Line Items] | ||
Net sales | $ 739,318 | $ 731,100 |
Net income | $ 24,166 | $ 30,469 |
Basic net income per common share | $ 0.70 | $ 0.89 |
Diluted net income per common share | $ 0.69 | $ 0.88 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Detail) shares in Thousands, $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Dec. 21, 2016USD ($)Contractshares | Mar. 31, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Business Acquisition [Line Items] | |||||
Cash paid | $ 270,000 | ||||
Amount of contingent consideration reversed | $ (2,505) | $ (1,074) | |||
Contingent consideration | 683 | 2,952 | 132 | ||
Goodwill | 1,883 | 236,970 | 67,871 | ||
Impairment charges for goodwill and intangibles | $ 5,745 | 250,521 | |||
Human Health Segment | |||||
Business Acquisition [Line Items] | |||||
Goodwill | 0 | 235,110 | $ 66,039 | ||
Citron and Lucid | |||||
Business Acquisition [Line Items] | |||||
Number of national contracts with the Federal Government | Contract | 18 | ||||
Cash paid | $ 270,000 | ||||
Deferred payment | $ 50,000 | ||||
Interest rate | 5.00% | ||||
Number of shares to be issued | shares | 5,122 | ||||
Purchase price, earn-out period | 5 years | ||||
Purchase price, earn-out amount | $ 50,000 | ||||
Amount of contingent consideration reversed | $ 2,505 | ||||
Contingent consideration | 2,580 | $ 683 | $ 2,807 | ||
Goodwill | 169,071 | ||||
Intangible assets | 224,850 | ||||
Citron and Lucid | Product Rights | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 135,700 | ||||
Amortizable period of intangible assets | 10 years | ||||
Citron and Lucid | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 88,800 | ||||
Amortizable period of intangible assets | 11 years | ||||
Citron and Lucid | Trademarks | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 350 | ||||
Amortizable period of intangible assets | 6 months |
Business Combinations (Narrat54
Business Combinations (Narrative) (Detail 1) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Amortization charges from acquired intangible assets | $ 30,806 | $ 22,234 | $ 11,176 | |
Citron and Lucid | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Net sales | $ 122,118 | |||
Income before income taxes | 7,437 | |||
Citron and Lucid | Acquisition of intangible assets | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Amortization charges from acquired intangible assets | 21,000 | 21,000 | ||
Citron and Lucid | Acquisition related interest expense | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Increase in interest expense | 13,200 | 13,200 | ||
Citron and Lucid | Step-up in fair value of acquired inventory | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Step up in fair value of acquired inventory | $ 4,502 | |||
Citron and Lucid | Acquisition related transaction costs | ||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||
Acquisition related transaction costs | $ 8,818 | $ 8,818 | $ 8,818 |
Investments (Schedule of Summar
Investments (Schedule of Summary of Short-Term Investments) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Time deposits | ||
Schedule of Investments [Line Items] | ||
Held to Maturity Investments | $ 3,030 | $ 2,046 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule Changes in contingent consideration) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes In Contingent Consideration [Roll Forward] | |||
Beginning Balance | $ 2,952 | $ 132 | |
Acquisitions | 2,580 | ||
Accrued interest expense | 386 | 237 | |
Change in foreign currency exchange rate | (5) | 3 | |
Reversal of fair value of liability | (2,505) | $ (1,074) | |
Settlement | (145) | ||
Ending Balance | $ 683 | $ 2,952 | $ 132 |
Fair Value Measurements (Sche57
Fair Value Measurements (Schedule of Valuation of Financial Assets and Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency contracts-assets | $ 362 | [1] | $ 486 | [2] | |
Foreign currency contracts-liabilities | 304 | [3] | 137 | [4] | |
Derivative asset for interest rate swap | [5] | 1,839 | |||
Derivative liability for interest rate swap | [6] | 581 | |||
Contingent consideration | 683 | [7] | 2,952 | [8] | |
Time deposits | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 3,218 | 5,781 | |||
Investments | 3,030 | 2,046 | |||
Quoted Prices in Active Markets (Level 1) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency contracts-assets | 0 | [1] | 0 | [2] | |
Foreign currency contracts-liabilities | 0 | [3] | 0 | [4] | |
Contingent consideration | 0 | [7] | 0 | [8] | |
Quoted Prices in Active Markets (Level 1) | Time deposits | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 0 | 0 | |||
Investments | 0 | 0 | |||
Significant Other Observable Inputs (Level 2) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency contracts-assets | 362 | [1] | 486 | [2] | |
Foreign currency contracts-liabilities | 304 | [3] | 137 | [4] | |
Derivative asset for interest rate swap | [5] | 1,839 | |||
Derivative liability for interest rate swap | [6] | 581 | |||
Contingent consideration | 0 | [7] | 0 | [8] | |
Significant Other Observable Inputs (Level 2) | Time deposits | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 3,218 | 5,781 | |||
Investments | 3,030 | 2,046 | |||
Significant Unobservable Inputs (Level 3) | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency contracts-assets | 0 | [1] | 0 | [2] | |
Foreign currency contracts-liabilities | 0 | [3] | 0 | [4] | |
Contingent consideration | 683 | [7] | 2,952 | [8] | |
Significant Unobservable Inputs (Level 3) | Time deposits | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash equivalents | 0 | 0 | |||
Investments | $ 0 | $ 0 | |||
[1] | Included in "Other receivables" in the accompanying Consolidated Balance Sheet as of June 30, 2018. | ||||
[2] | Included in "Other receivables" in the accompanying Consolidated Balance Sheet as of June 30, 2017. | ||||
[3] | Included in "Accrued expenses" in the accompanying Consolidated Balance Sheet as of June 30, 2018. | ||||
[4] | Included in "Accrued expenses" in the accompanying Consolidated Balance Sheet as of June 30, 2017. | ||||
[5] | Included in "Other Assets" in the accompanying Consolidated Balance Sheet as of June 30, 2018. | ||||
[6] | Included in "Long-term liabilities" in the accompanying Consolidated Balance Sheet as of June 30, 2017. | ||||
[7] | Included in "Long-term liabilities" in the accompanying Consolidated Balance Sheet as of June 30, 2018. | ||||
[8] | $145 included in "Accrued expenses" and $2,807 included in "Long-term liabilities" in the accompanying Consolidated Balance Sheet as of June 30, 2017. |
Fair Value Measurements (Sche58
Fair Value Measurements (Schedule of Valuation of Financial Assets and Liabilities) (Parentheticals) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | [1] | Jun. 30, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | $ 683 | $ 2,952 | [2] | |
Accrued expenses | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | 145 | |||
Long-term liabilities | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Contingent consideration | $ 2,807 | |||
[1] | Included in "Long-term liabilities" in the accompanying Consolidated Balance Sheet as of June 30, 2018. | |||
[2] | $145 included in "Accrued expenses" and $2,807 included in "Long-term liabilities" in the accompanying Consolidated Balance Sheet as of June 30, 2017. |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Detail) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 21, 2017 | Nov. 30, 2015 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 21, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Unrealized gain (loss) recorded in accumulated other comprehensive income | $ 1,839 | $ (581) | ||||
Accrued contingent consideration | 683 | 2,952 | $ 132 | |||
Impairment charges on goodwill | 235,110 | |||||
Aggregate principal amount | $ 143,750 | |||||
Theoretical borrowing rate used to calculate fair value of debt | 6.50% | |||||
Fair value of the notes | 112,000 | 133,000 | ||||
Net reduction to capital in excess of par value | $ 13,489 | |||||
Impairment charges on intangible assets | 21,156 | |||||
Foreign currency contract | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative, notional amount | 56,108 | |||||
Unrealized gains (losses) on hedging activities | 244 | (515) | $ (10) | |||
Interest rate swap | Cash flow hedging | December 21, 2021 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative, notional amount | $ 100,000 | |||||
Derivative, expiration date | Dec. 21, 2021 | |||||
Remaining balance of derivative | 85,000 | |||||
Additional interest cost rate of derivative | 2.005% | |||||
France Company | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Accrued contingent consideration | 145 | |||||
Citron and Lucid | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Accrued contingent consideration | $ 683 | $ 2,807 | $ 2,580 |
Goodwill and Other Intangible60
Goodwill and Other Intangible Assets - Summary of changes in goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 236,970 | $ 67,871 |
Acquisitions | 169,071 | |
Impairment | (235,110) | |
Changes in foreign currency exchange rates | 23 | 28 |
Ending balance | 1,883 | 236,970 |
Human Health Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 235,110 | 66,039 |
Acquisitions | 169,071 | |
Impairment | (235,110) | |
Changes in foreign currency exchange rates | 0 | 0 |
Ending balance | 0 | 235,110 |
Pharmaceutical Ingredients Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,674 | 1,651 |
Acquisitions | 0 | |
Impairment | 0 | |
Changes in foreign currency exchange rates | 18 | 23 |
Ending balance | 1,692 | 1,674 |
Performance Chemicals Segment | ||
Goodwill [Roll Forward] | ||
Beginning balance | 186 | 181 |
Acquisitions | 0 | |
Impairment | 0 | |
Changes in foreign currency exchange rates | 5 | 5 |
Ending balance | $ 191 | $ 186 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets (Schedule of Intangible Assets Subject to Amortization) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Gross Carrying Value | $ 322,582 | $ 355,184 |
Accumulated Amortization | 88,780 | 70,886 |
Net Book Value | 233,802 | 284,298 |
Customer relationships | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Gross Carrying Value | 94,287 | 110,787 |
Accumulated Amortization | 21,615 | 13,968 |
Net Book Value | 72,672 | 96,819 |
Trademarks | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Gross Carrying Value | 82 | 2,218 |
Accumulated Amortization | 74 | 2,195 |
Net Book Value | 8 | 23 |
Product rights and related intangibles | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Gross Carrying Value | 212,749 | 221,335 |
Accumulated Amortization | 54,094 | 37,677 |
Net Book Value | 158,655 | 183,658 |
License agreements | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Gross Carrying Value | 937 | 6,537 |
Accumulated Amortization | 866 | 6,035 |
Net Book Value | 71 | 502 |
EPA registrations and related data | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ||
Gross Carrying Value | 14,527 | 14,307 |
Accumulated Amortization | 12,131 | 11,011 |
Net Book Value | $ 2,396 | $ 3,296 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Goodwill | $ 1,883 | $ 236,970 | $ 67,871 |
Impairment charges on goodwill | $ 235,110 | ||
Intangible assets amortization method | straight-line method | ||
Indefinite-lived trademarks | $ 800 | 783 | |
Amortization charges from acquired intangible assets | 30,806 | $ 22,234 | $ 11,176 |
Estimated aggregate amortization expense for 2019 | 29,046 | ||
Estimated aggregate amortization expense for 2020 | 28,556 | ||
Estimated aggregate amortization expense for 2021 | 28,474 | ||
Estimated aggregate amortization expense for 2022 | 28,409 | ||
Estimated aggregate amortization expense for 2023 | 28,246 | ||
Estimated aggregate amortization expense after 2024 | 91,071 | ||
Impairment charges on intangible assets | $ 21,156 | ||
Customer relationships | Minimum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 7 years | ||
Customer relationships | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 11 years | ||
Trademarks | Minimum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 3 years | ||
Trademarks | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 4 years | ||
Product rights and related intangibles | Minimum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 3 years | ||
Product rights and related intangibles | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 14 years | ||
License agreements | Minimum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 6 years | ||
License agreements | Maximum | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 11 years | ||
EPA registrations and related data | |||
Goodwill and Intangible Assets Disclosure [Line Items] | |||
Finite-lived intangible assets, estimated useful life | 10 years |
Accrued Expenses (Schedule of C
Accrued Expenses (Schedule of Components of Accrued Expenses) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Payables And Accruals [Abstract] | ||
Accrued compensation | $ 5,563 | $ 5,793 |
Accrued environmental remediation costs-current portion | 5,535 | 6,112 |
Reserve for price concessions | 137,428 | 97,156 |
Partnered product liabilities | 14,880 | 16,068 |
Other accrued expenses | 17,840 | 9,799 |
Accrued expenses | $ 181,246 | $ 134,928 |
Environmental Remediation (Narr
Environmental Remediation (Narrative) (Detail) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($)Entity | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2009USD ($) | |
Site Contingency [Line Items] | ||||
Environmental remediation charge included in selling, general and administrative expenses | $ 1,822 | $ 903 | $ 1,313 | |
Pulvair Site Group | ||||
Site Contingency [Line Items] | ||||
Loss contingency, damages sought value | 1,700 | |||
Arsynco, Inc | ||||
Site Contingency [Line Items] | ||||
Accrual for environmental loss contingencies | 5,746 | 8,451 | ||
Environmental remediation charge included in selling, general and administrative expenses | 1,822 | |||
Arsynco, Inc | Environmental Remediation property for sale | Agreement to sell the Arsynco property | ||||
Site Contingency [Line Items] | ||||
Expected sale of property value | 6,340 | |||
Arsynco, Inc | Minimum | ||||
Site Contingency [Line Items] | ||||
Site contingency loss exposure not accrued | 22,900 | |||
Arsynco, Inc | Maximum | ||||
Site Contingency [Line Items] | ||||
Site contingency loss exposure not accrued | $ 24,700 | |||
Arsynco, Inc | Berry's Creek Study Area | ||||
Site Contingency [Line Items] | ||||
Number of potentially responsible parties | Entity | 150 | |||
BASF Corporation | ||||
Site Contingency [Line Items] | ||||
Partial reimbursement of environmental remediation costs previously expensed | $ 550 | |||
Gain related to partial reimbursement | 550 | |||
Environmental remediation costs expensed in prior years | $ 1,200 | |||
Future remediation costs receivable | $ 2,586 | $ 3,803 |
Debt (Schedule of Long-term Deb
Debt (Schedule of Long-term Debt) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Long-term debt including current portion | $ 317,398 | $ 353,666 |
Less current portion | 14,482 | 14,466 |
Long-term debt | 302,916 | 339,200 |
Convertible Senior Notes, net | ||
Debt Instrument [Line Items] | ||
Long-term debt including current portion | 127,857 | 121,676 |
Revolving bank loans | ||
Debt Instrument [Line Items] | ||
Long-term debt including current portion | 62,000 | 90,000 |
Term bank loans | ||
Debt Instrument [Line Items] | ||
Long-term debt including current portion | 124,959 | 139,227 |
Mortgage | ||
Debt Instrument [Line Items] | ||
Long-term debt including current portion | $ 2,582 | $ 2,763 |
Debt (Summary carrying value of
Debt (Summary carrying value of Notes) (Detail 1) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Instrument [Line Items] | ||
Net carrying value | $ 317,398 | $ 353,666 |
Convertible Senior Notes, net | ||
Debt Instrument [Line Items] | ||
Principal amount | 143,750 | 143,750 |
Unamortized debt discount | (13,909) | (19,255) |
Unamortized debt issuance costs | (1,984) | (2,819) |
Net carrying value | $ 127,857 | $ 121,676 |
Debt (Summary interest expense
Debt (Summary interest expense related to notes recognized) (Detail 2) - Interest expense - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||
Contractual coupon | $ 2,875 | $ 2,867 |
Amortization of debt discount | 5,346 | 5,012 |
Amortization of debt issuance costs | 835 | 835 |
Interest expense, total | $ 9,056 | $ 8,714 |
Debt (Maturity of Long-term Deb
Debt (Maturity of Long-term Debt) (Detail 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Debt Disclosure [Abstract] | ||
2,019 | $ 14,482 | |
2,020 | 14,465 | |
2,021 | 142,322 | |
2,022 | 144,352 | |
2,023 | 197 | |
Thereafter | 1,580 | |
Long-term debt including current portion | $ 317,398 | $ 353,666 |
Debt (Narrative) (Detail)
Debt (Narrative) (Detail) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Nov. 30, 2015USD ($)shares$ / shares | Jun. 30, 2018USD ($)Day | Jun. 30, 2016USD ($) | |
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 143,750 | ||
Aggregate proceeds from convertible senior notes | $ 143,750 | ||
Convertible Senior Notes due 2020 | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | 125,000 | ||
Aggregate principal amount of additional convertible debt | 18,750 | ||
Aggregate proceeds from convertible senior notes | $ 143,750 | ||
Debt interest rate | 2.00% | ||
Number of common stock issued upon conversion of debt | shares | 4,328 | ||
Senior notes, initial conversion price per share | $ / shares | $ 33.215 | ||
Threshold multiple for debt conversion of notes | $ 1,000 | ||
Threshold trading days for convertible debt | Day | 20 | ||
Threshold consecutive trading days for convertible debt | Day | 30 | ||
Percentage of minimum stock price trigger for conversion | 130.00% | ||
Maximum calculated percentage to which trading price of notes is compared in order to trigger conversion feature of notes | 98.00% |
Debt (Narrative) (Detail 1)
Debt (Narrative) (Detail 1) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 21, 2016USD ($)Entity | Jun. 30, 2018USD ($)Installment | Jun. 30, 2017USD ($) | Aug. 26, 2016USD ($) | |
Debt Instrument [Line Items] | ||||
Borrowed loans | $ 317,398 | $ 353,666 | ||
Amended and Restated Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Number of banks | Entity | 11 | |||
Revolving bank loans | ||||
Debt Instrument [Line Items] | ||||
Borrowed loans | 62,000 | 90,000 | ||
Deferred financing costs | 1,748 | |||
Revolving bank loans | Amended and Restated Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Aggregate revolving commitment | $ 225,000 | $ 150,000 | ||
Borrowed loans | $ 62,000 | |||
Maturity date description | Maturity Date shall mean the date that is 91 days prior to the 2015 Convertible Maturity Date | |||
Revolving bank loans | Amended and Restated Credit Agreement | Eurodollar Loan | Minimum | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.00% | |||
Revolving bank loans | Amended and Restated Credit Agreement | Eurodollar Loan | Maximum | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 5.02% | |||
Initial Term Loan | ||||
Debt Instrument [Line Items] | ||||
Borrowed loans | $ 124,959 | $ 139,227 | ||
Number of installments | Installment | 19 | |||
Frequency of periodic payment | Quarterly | |||
Principal payment | $ 3,750 | |||
Deferred financing costs | 3,659 | |||
Initial Term Loan | Amended and Restated Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Borrowed loans | 150,000 | |||
Aggregate amount increase | 100,000 | |||
Remaining amount outstanding | $ 127,500 | |||
Initial Term Loan | Amended and Restated Credit Agreement | Eurodollar Loan | ||||
Debt Instrument [Line Items] | ||||
Debt interest rate | 4.83% |
Debt (Narrative) (Detail 2)
Debt (Narrative) (Detail 2) - USD ($) $ in Thousands | May 03, 2018 | Dec. 21, 2016 | Sep. 11, 2018 |
Revolving bank loans | Second Amended and Restated Credit Agreement (the "May 2018 Amendment") | |||
Line of Credit Facility [Line Items] | |||
Available revolving commitment | $ 100,000 | ||
Dividend restrictions | Restricting the amount of dividends or distributions the Company may make to its shareholders to no more than $0.01 per share for the fiscal quarter ended June 30, 2018 and, during the May Amendment Limitation Period, restricting the Company from making any other dividends or distributions to its shareholders thereafter and (v) restricting the incurrence of certain indebtedness, limiting acquisitions and other investments and imposing certain other restrictions. | ||
Revolving bank loans | Second Amended and Restated Credit Agreement (the "May 2018 Amendment") | ABR Loans | |||
Line of Credit Facility [Line Items] | |||
Debt interest rate | 1.50% | ||
Revolving bank loans | Second Amended and Restated Credit Agreement (the "May 2018 Amendment") | Eurodollar Loan | |||
Line of Credit Facility [Line Items] | |||
Debt interest rate | 2.50% | ||
Revolving bank loans | Third Amended and Restated Credit Agreement (the "September Amendment") | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Available revolving commitment | $ 325 | ||
Percentage of basis points under third amended and restated credit agreement | 4.50% | ||
Covenant Liquidity Amount | $ 55 | ||
Revolving bank loans | Third Amended and Restated Credit Agreement (the "September Amendment") | ABR Loans | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Debt interest rate | 6.00% | ||
Revolving bank loans | Third Amended and Restated Credit Agreement (the "September Amendment") | Eurodollar Loan | Subsequent Event | |||
Line of Credit Facility [Line Items] | |||
Debt interest rate | 7.00% | ||
Undrawn revolving commitments | Second Amended and Restated Credit Agreement (the "May 2018 Amendment") | ABR Loans | |||
Line of Credit Facility [Line Items] | |||
Commitment fee percentage | 0.40% |
Debt (Narrative) (Detail 3)
Debt (Narrative) (Detail 3) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 |
Debt Instrument [Line Items] | |||
Available lines of credit with foreign financial institutions | $ 1,822 | $ 7,351 | |
Letters of credit | 1,552 | ||
Bank loans, unused borrowing capacity | 140,613 | ||
Bank loans outstanding | $ 189,500 | $ 232,500 | |
Short term loans, fixed interest rate | 4.50% | 4.50% | 4.50% |
Standby letters of credit | |||
Debt Instrument [Line Items] | |||
Letters of credit | $ 1,737 | $ 1,737 |
Debt (Narrative) (Detail 4)
Debt (Narrative) (Detail 4) - Mortgage - USD ($) $ in Thousands | 1 Months Ended | |
Jun. 30, 2011 | Jun. 30, 2018 | |
Debt Instrument [Line Items] | ||
Mortgage payable | $ 3,947 | |
Mortgage payable, amortization period | 20 years | |
Debt interest rate | 4.92% |
Stock Based Compensation Plan74
Stock Based Compensation Plans (Schedule of Shares of Common Stock under Options for All Plans) (Detail) - Common stock under option - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Shares subject to option | |||
Shares subject to option, Beginning balance | 260 | 302 | 397 |
Shares subject to option, Granted | 0 | 28 | 0 |
Shares subject to option, Exercised | (96) | (70) | (95) |
Shares subject to option, Forfeited (including cancelled options) | (35) | 0 | 0 |
Shares subject to option, Ending balance | 129 | 260 | 302 |
Options exercisable at June 30, 2018 | 129 | ||
Weighted average exercise price per share | |||
Weighted average exercise price per share, beginning balance | $ 8.36 | $ 7.19 | $ 7.28 |
Weighted average exercise price per share, granted | 0 | 20.03 | 0 |
Weighted average exercise price per share, exercised | 6.29 | 7.90 | 7.56 |
Weighted average exercise price per share, forfeited (including canceled options) | 17.61 | 0 | 0 |
Weighted average exercise price per share, ending balance | 7.44 | $ 8.36 | $ 7.19 |
Weighted average exercise price per share, options exercisable at June 30, 2018 | $ 7.44 | ||
Aggregate Intrinsic Value, Balance at June 30, 2018 | $ 0 | $ 0 | |
Aggregate Intrinsic Value, Options exercisable at June 30, 2018 | $ 0 |
Stock Based Compensation Plan75
Stock Based Compensation Plans (Summary of non-vested stock options) (Detail) - Stock Option - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Shares subject to option | |||
Shares subject to option, Non-vested at June 30, 2017 | 28 | ||
Shares subject to option, Granted | 0 | 28 | 0 |
Shares subject to option, Vested | 0 | ||
Shares subject to option, Forfeited | (28) | ||
Shares subject to option, Non-vested at June 30, 2018 | 0 | 28 | |
Weighted average grant date fair value | |||
Weighted average grant date fair value, Non-vested at June 30, 2017 | $ 5.44 | ||
Weighted average grant date fair value, Granted | 0 | ||
Weighted average grant date fair value, Vested | 0 | ||
Weighted average grant date fair value, Forfeited | (5.44) | ||
Weighted average grant date fair value, Non-vested at June 30, 2018 | $ 0 | $ 5.44 |
Stock Based Compensation Plan76
Stock Based Compensation Plans (Schedule of Restricted Stock Awards Including Restricted Stock Units) (Detail) - Restricted stock awards and restricted stock units shares in Thousands | 12 Months Ended |
Jun. 30, 2018$ / sharesshares | |
Non-vested, Shares | |
Non-vested at beginning of year | shares | 797 |
Granted | shares | 727 |
Vested | shares | (498) |
Forfeited | shares | (200) |
Non-vested at June 30, 2018 | shares | 826 |
Non-vested, Weighted average grant date fair value | |
Non-vested at beginning of year | $ / shares | $ 21.24 |
Granted | $ / shares | 10.27 |
Vested | $ / shares | 18.52 |
Forfeited | $ / shares | 14.33 |
Non-vested at June 30, 2018 | $ / shares | $ 14.90 |
Stock Based Compensation (Narra
Stock Based Compensation (Narrative) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Mar. 31, 2018 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options exercised, total intrinsic value | $ 430 | $ 865 | $ 1,700 | |||
Weighted average remaining contractual term | 2 years | |||||
Stock issued pursuant to employee stock incentive plans | $ 40 | 109 | 113 | |||
Non-cash restricted stock expense | 20 | 26 | 22 | |||
Non-cash stock option plan expense is included in selling, general and administrative expenses | 0 | 55 | 0 | |||
Stock-based compensation expense | $ 7,782 | $ 6,956 | $ 6,719 | |||
Common Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Restricted stock awarded and premium shares vested, common shares | 2 | 5 | 7 | |||
Restricted Stock | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock granted, shares | 497 | 277 | 221 | |||
Restricted stock units, vesting period | 3 years | 3 years | 3 years | |||
Restricted Stock | Non Employee Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock granted, shares | 27 | 22 | 14 | |||
Restricted stock units, vesting period | 1 year | 1 year | 1 year | |||
Performance-vested restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock granted, shares | 203 | 160 | 142 | |||
Upper limit of target grant, shares | 355 | 280 | 248 | |||
Performance-vested restricted stock units, vesting percentage | 100.00% | 100.00% | 100.00% | |||
Restricted stock units, vesting period | 3 years | 3 years | 3 years | |||
Restricted stock awards and restricted stock units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock granted, shares | 727 | |||||
Stock-based compensation expense | $ 7,762 | $ 6,875 | $ 6,697 | |||
Remaining stock-based compensation expense | $ 6,119 | |||||
Remaining stock-based compensation expense, period for recognition | 1 year 9 months 18 days | |||||
Restricted stock awards and restricted stock units | Chief Financial Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 431 | |||||
Restricted stock awards and restricted stock units | Chief Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock-based compensation expense | $ 2,017 | |||||
Restricted stock units | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Common stock granted, shares | 46 | |||||
Performance Stock Options | Executive Officer | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Target price performance stock options | $ 40 | |||||
Number of trading days | 20 days | |||||
Explicit service period | 1 year | |||||
Expiration date of stock options | Jun. 30, 2021 | |||||
Expiration period of option if target price achieved | 10 years | |||||
Stock Option | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted | 0 | 28 | 0 | |||
Exercise price of performance options granted | $ 0 | $ 20.03 | $ 0 | |||
Weighted average grant date fair value, Granted | $ 0 | |||||
2015 Equity Participation Plan (the "2015 Plan") | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares of common stock that may be issued | 4,250 | |||||
Shares of common stock available for grant | 1,571 | |||||
2010 Equity Participation Plan (the "2010 Plan") | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares of common stock that may be issued | 5,250 | |||||
Shares of common stock available for grant | 488 | |||||
2007 Long-Term Performance Incentive Plan (the "2007 Plan") | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares of common stock that may be issued | 700 | |||||
Shares of common stock available for grant | 0 |
Interest and Other Income (Sche
Interest and Other Income (Schedule of Interest and other income) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other Income And Expenses [Abstract] | |||
Dividends | $ 199 | $ 277 | $ 222 |
Interest | 278 | 264 | 313 |
Foreign government subsidies received | 53 | 64 | 25 |
Joint venture equity earnings | 2,173 | 2,336 | 2,060 |
Foreign currency gains (losses) | 136 | (298) | 56 |
Deferred compensation plan losses | (13) | (257) | (35) |
Rental income | 163 | 158 | 154 |
Miscellaneous income | 56 | 33 | 28 |
Interest and other income | $ 3,045 | $ 2,577 | $ 2,823 |
Interest and Other Income (Narr
Interest and Other Income (Narrative) (Detail) $ in Thousands | Jun. 30, 2009USD ($) |
Other Income And Expenses [Abstract] | |
Initial investment in joint venture, cost | $ 6 |
Initial investment in joint venture, percentage | 30.00% |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for Income Taxes) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | ||||
Domestic operations | $ (303,329) | $ 9,555 | $ 43,906 | |
Foreign operations | 10,507 | 7,806 | 9,948 | |
(Loss) income before income taxes | $ (267,985) | (292,822) | 17,361 | 53,854 |
Federal: | ||||
Current | 6,635 | 3,713 | 15,129 | |
Deferred | 10,239 | (585) | (204) | |
State and local: | ||||
Current | 197 | 555 | 755 | |
Deferred | 802 | (110) | 173 | |
Foreign: | ||||
Current | 2,824 | 2,221 | 3,222 | |
Deferred | 2,602 | 191 | 13 | |
Income tax (benefit) provision | $ 23,299 | $ 5,985 | $ 19,088 |
Income Taxes (Schedule of Tax E
Income Taxes (Schedule of Tax Effects of Temporary Differences that Give Rise to the Deferred Tax Assets and Liabilities) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Deferred tax assets: | ||
Accrued deferred compensation | $ 1,885 | $ 4,229 |
Accrual for sales deductions not currently deductible | 8,387 | 5,796 |
Additional inventoried costs for tax purposes | 439 | 697 |
Allowance for doubtful accounts receivable | 182 | 106 |
Depreciation and amortization | 12,663 | 11,957 |
Debt issuance costs | 3,506 | 7,611 |
Foreign deferred tax assets | 858 | 983 |
Deferred rent | 145 | 0 |
Domestic net operating loss carryforwards | 7,486 | 81 |
Foreign net operating loss carryforwards | 916 | 692 |
Goodwill | 45,504 | 0 |
Total gross deferred tax assets | 81,971 | 32,152 |
Valuation allowances | (77,416) | (773) |
Deferred tax assets, net | 4,555 | 31,379 |
Deferred tax liabilities: | ||
Foreign deferred tax liabilities | (2,495) | (65) |
Goodwill | (10,244) | |
Original issue discount - convertible senior notes | (3,310) | (7,260) |
Other | (286) | (1,136) |
Total gross deferred tax liabilities | (6,091) | (18,705) |
Net deferred tax assets (liabilities) | $ (1,536) | $ 12,674 |
Income Taxes (Schedule of Curre
Income Taxes (Schedule of Current and Non-Current Deferred Tax Assets (Liabilities)) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets, net | $ 546 | |
Non-current deferred tax assets, net | 19,453 | |
Non-current deferred tax liabilities | $ (1,536) | (7,325) |
Net deferred tax assets (liabilities) | $ (1,536) | $ 12,674 |
Income Taxes (Schedule of Recon
Income Taxes (Schedule of Reconciliation of Statutory Federal Income Tax Rate and Effective Tax Rate for Continuing Operations) (Detail) | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory tax rate | 28.10% | 35.00% | 35.00% |
State and local taxes, net of federal income tax benefit | 2.00% | 1.20% | 1.70% |
Change in valuation allowance | (26.20%) | 0.10% | 0.00% |
Foreign withholding taxes | (0.80%) | 0.00% | 0.00% |
Foreign tax rate differential | (0.00%) | (1.80%) | (0.40%) |
Rate differential between fiscal year 2018 statutory rate and enacted rate for subsequent period | (6.00%) | 0.00% | 0.00% |
Revaluation of the deferred tax asset and liabilities due to the tax law change | (1.80%) | 0.00% | 0.00% |
Transition tax | (2.10%) | 0.00% | 0.00% |
Other | (1.20%) | 0.00% | (0.90%) |
Effective tax rate | (8.00%) | 34.50% | 35.40% |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Tax Disclosure [Line Items] | |||
Federal statutory tax rate | 28.10% | 35.00% | 35.00% |
Deferred tax assets valuation allowance | $ 77,416 | $ 773 | |
Net change in total valuation allowance | 76,643 | (21) | |
Federal net operating loss carryforwards | 32,515 | ||
State net operating loss carryforwards expire in 12-20 years | 9,047 | ||
Tax Cuts and Jobs Act, net tax expense (benefit) | 13,739 | ||
Income tax expense due to remeasurement of deferred tax assets | 5,075 | ||
Tax Cuts and Jobs Act one-time transition tax expense | 6,219 | ||
Deferred tax liabilities, undistributed foreign earnings | $ 2,495 | $ 65 | |
Earliest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Federal statutory tax rate | 35.00% | ||
Latest Tax Year | |||
Income Tax Disclosure [Line Items] | |||
Federal statutory tax rate | 21.00% | ||
Local tax authorities | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax liabilities, undistributed foreign earnings | $ 2,445 | ||
U.S. | |||
Income Tax Disclosure [Line Items] | |||
Deferred tax assets valuation allowance | 76,500 | ||
Foreign | |||
Income Tax Disclosure [Line Items] | |||
Foreign net operating loss carryforwards | $ 18,896 |
Supplemental Cash Flow Inform85
Supplemental Cash Flow Information (Schedule of Cash Paid for Interest and Income Taxes) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |||
Interest | $ 13,085 | $ 7,794 | $ 2,970 |
Income taxes, net of refunds | $ 5,272 | $ 7,912 | $ 16,076 |
Supplemental Cash Flow Inform86
Supplemental Cash Flow Information (Narrative) (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Supplemental Cash Flow Information [Line Items] | |||
Environmental remediation costs and property held for sale | $ 284 | $ 294 | |
Contingent earn out liability | $ 2,580 | ||
Citron and Lucid | December 21, 2019 | |||
Supplemental Cash Flow Information [Line Items] | |||
Number of shares to be issued | 5,122 | ||
Fair market value of shares of common stock issued in acquisition | $ 90,400 | ||
Citron and Lucid | December 21, 2021 | |||
Supplemental Cash Flow Information [Line Items] | |||
Unsecured deferred payment payable | $ 50,000 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |||
Provision for defined contribution plans | $ 1,990 | $ 1,794 | $ 1,957 |
Accrued pension liability | 1,002 | 883 | |
Net periodic pension costs, principally of interest cost and service cost | $ 32 | $ 30 | $ 28 |
Actuarial present value of benefit obligations, assumed weighted average discount rate | 1.50% | 2.00% | 1.90% |
Actuarial present value of benefit obligations, assumed compensation increase rate | 0.00% | 0.00% | 0.00% |
Liability under the deferred compensation plans, total | $ 3,342 | $ 3,551 | |
Liability under deferred compensation plan included in long-term liabilities | 3,194 | 3,337 | |
Liability under deferred compensation plan included in accrued expenses | 148 | 214 | |
Deferred compensation plan assets | $ 3,642 | $ 3,087 |
Financial Instruments (Narrativ
Financial Instruments (Narrative) (Detail) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2018USD ($)CustomerProduct | Jun. 30, 2017USD ($)CustomerProduct | Jun. 30, 2016CustomerProduct | |
Accounts Receivable | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Concentration Risk, Number | Customer | 3 | 3 | |
Accounts Receivable | Customer One | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Percentage of net trade accounts receivable attributable to single customer | 28.00% | 32.00% | |
Accounts Receivable | Customer Two | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Percentage of net trade accounts receivable attributable to single customer | 19.00% | 20.00% | |
Accounts Receivable | Customer three | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Percentage of net trade accounts receivable attributable to single customer | 13.00% | 15.00% | |
Net sales | Customer One | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Concentration Risk, Number | Customer | 1 | 1 | 1 |
Percentage of net sales attributable to single customer | 16.00% | 12.00% | 14.00% |
Net sales | Customer Two | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Percentage of net sales attributable to single customer | 11.00% | 11.00% | 7.00% |
Product Concentration | Net sales | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Concentration Risk, Number | Product | 0 | 0 | 0 |
Minimum percentage of net sales for separate disclosure | 10.00% | 10.00% | 10.00% |
Geographic Concentration | Purchases | Europe | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Percentage of purchases for a single geographic area | 15.00% | 17.00% | 22.00% |
Net assets by geographic area | $ | $ 68,149 | $ 68,235 | |
Geographic Concentration | Purchases | Asia | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Percentage of purchases for a single geographic area | 61.00% | 62.00% | 56.00% |
Net assets by geographic area | $ | $ 36,633 | $ 50,641 |
Commitments, Contingencies an89
Commitments, Contingencies and Other Matters (Schedule of Future Minimum Lease Payments for office facilities and equipment) (Detail) $ in Thousands | Jun. 30, 2018USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,019 | $ 2,827 |
2,020 | 2,159 |
2,021 | 1,533 |
2,022 | 1,216 |
2,023 | 1,164 |
Thereafter | 5,698 |
Total future minimum lease payments | $ 14,597 |
Commitments, Contingencies an90
Commitments, Contingencies and Other Matters (Narrative) (Detail) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($)EntitySecurity | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2009USD ($) | |
Commitments and Contingencies Disclosure [Line Items] | ||||
Outstanding purchase obligations | $ 175,136 | |||
Environmental remediation charge included in selling, general and administrative expenses | $ 1,822 | $ 903 | $ 1,313 | |
Number of putative securities | Security | 2 | |||
Total rental expense | $ 1,864 | 1,301 | $ 1,265 | |
Subsidiary | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Amount expected to be paid for product registrations and various task force groups | 5,701 | |||
Amount accrued for product registrations and various task force groups | 0 | 0 | ||
Pulvair Site Group | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Loss contingency, damages sought | 1,700 | |||
Arsynco, Inc | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Environmental remediation charge included in selling, general and administrative expenses | 1,822 | |||
Accrual for environmental loss contingencies | 5,746 | 8,451 | ||
Arsynco, Inc | Environmental Remediation property for sale | Agreement to sell the Arsynco property | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Expected sale of property value | 6,340 | |||
Arsynco, Inc | Minimum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Site contingency loss exposure not accrued | 22,900 | |||
Arsynco, Inc | Maximum | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Site contingency loss exposure not accrued | 24,700 | |||
BASF Corporation | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Gain related to partial reimbursement | $ 550 | |||
Partial reimbursement of environmental remediation costs previously expensed | 550 | |||
Environmental remediation costs expensed in prior years | $ 1,200 | |||
Future remediation costs receivable | $ 2,586 | $ 3,803 | ||
Berry's Creek Study Area | Arsynco, Inc | ||||
Commitments and Contingencies Disclosure [Line Items] | ||||
Number of potentially responsible parties | Entity | 150 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Detail) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Oct. 31, 2017ft² | |
Joint Venture | ||||
Related Party Transaction [Line Items] | ||||
Inventory purchases | $ 3,556 | $ 3,236 | $ 2,831 | |
Rising Health | ||||
Related Party Transaction [Line Items] | ||||
Amount of cost incurred | 2,636 | 1,865 | ||
Gross area of warehouse space expected to lease | ft² | 125,000 | |||
Acetris Health | ||||
Related Party Transaction [Line Items] | ||||
Amount of cost incurred | $ 305 | $ 165 |
Related Party Transactions (N92
Related Party Transactions (Narrative) (Detail 1) - USD ($) $ in Thousands | Nov. 02, 2016 | Dec. 21, 2016 | Jun. 30, 2018 |
Rising Health | Board of Directors | Casper Pharma, LLC | |||
Related Party Transaction [Line Items] | |||
Purchased inventory from related party | $ 290 | ||
Development Agreement I | Cronus Research Labs Private Limited | |||
Related Party Transaction [Line Items] | |||
Amount of cost incurred | $ 3,500 | ||
Two amended and restated joint development agreements, description | Under the terms of Development Agreement I, Cronus has agreed to pay the first $3,500 of the development costs incurred after December 21, 2016, and 50% of any development costs incurred above that threshold in exchange for obtaining reimbursement for its costs funded out of the profits earned, if any, from the pipeline products that are commercially launched, and a specified portion of the profits from those products thereafter. | ||
Percentage of development costs incurred above threshold | 50.00% | ||
Development Agreement II | Cronus Research Labs Private Limited | |||
Related Party Transaction [Line Items] | |||
Amount of cost incurred | $ 1,445 | ||
Two amended and restated joint development agreements, description | Under the terms of Development Agreement II, Cronus has agreed to pay the development costs for the products covered thereby in exchange for obtaining reimbursement for its costs funded out of the profits earned, if any, from such products that are commercially launched (subject to a $1,445 maximum), and a specified portion of the profits from those products thereafter. |
Recent Accounting Pronounceme93
Recent Accounting Pronouncements (Narrative) (Detail) $ in Thousands | 12 Months Ended |
Jun. 30, 2018USD ($) | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Additional tax expense associated with net tax deficiencies | $ 1,536 |
Segment Information (Schedule o
Segment Information (Schedule of Segment Perfomance Measures by Segment) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018 | [1],[2] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | [4] | Jun. 30, 2017 | [5],[6] | Mar. 31, 2017 | [6],[7] | Dec. 31, 2016 | [6] | Sep. 30, 2016 | [8] | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | $ 168,877 | $ 185,998 | [2],[3] | $ 171,229 | $ 185,255 | $ 194,620 | $ 190,128 | $ 125,552 | $ 128,018 | $ 711,359 | $ 638,318 | $ 558,524 | ||||||
Gross profit | $ 9,914 | 27,696 | [2],[3] | $ 33,970 | $ 39,983 | $ 36,829 | $ 42,319 | $ 30,805 | $ 30,839 | 111,563 | 140,792 | 142,785 | ||||||
Income (loss) before income taxes | $ (267,985) | (292,822) | 17,361 | 53,854 | ||||||||||||||
Operating Segments | Human Health | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 374,514 | 315,395 | 228,035 | |||||||||||||||
Gross profit | 48,787 | 78,109 | 77,880 | |||||||||||||||
Income (loss) before income taxes | (289,219) | 15,434 | 36,362 | |||||||||||||||
Operating Segments | Pharmaceutical Ingredients | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 158,854 | 157,445 | 161,011 | |||||||||||||||
Gross profit | 24,633 | 25,474 | 28,752 | |||||||||||||||
Income (loss) before income taxes | 7,654 | 9,322 | 11,856 | |||||||||||||||
Operating Segments | Performance Chemicals | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 177,991 | 165,478 | 169,478 | |||||||||||||||
Gross profit | 38,143 | 37,209 | 36,153 | |||||||||||||||
Income (loss) before income taxes | 18,935 | 18,829 | 17,799 | |||||||||||||||
Unallocated Corporate | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | 0 | 0 | 0 | |||||||||||||||
Gross profit | 0 | 0 | 0 | |||||||||||||||
Income (loss) before income taxes | $ (30,192) | $ (26,224) | $ (12,163) | |||||||||||||||
[1] | Includes pretax item of $920 environmental remediation charge in connection with Arsynco and $76,500 valuation allowance on deferred tax assets. | |||||||||||||||||
[2] | The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: For the quarter ended March 31, 2018 As reported Adjustment As restated Income (loss) before income taxes $ (196,635 ) $ (71,350 ) $ (267,985 ) Net income (loss) per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) | |||||||||||||||||
[3] | Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. | |||||||||||||||||
[4] | Includes pretax item of $902 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[5] | Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. | |||||||||||||||||
[6] | Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. | |||||||||||||||||
[7] | Includes pretax item of $733 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[8] | Includes pretax item of $170 environmental remediation charge in connection with Arsynco. |
Segment Information (Schedule95
Segment Information (Schedule of Net Sales and Gross Profit by Source Country) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018 | [1],[2] | Mar. 31, 2018 | [2],[3] | Dec. 31, 2017 | Sep. 30, 2017 | [4] | Jun. 30, 2017 | [5],[6] | Mar. 31, 2017 | [6],[7] | Dec. 31, 2016 | [6] | Sep. 30, 2016 | [8] | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net Sales | $ 168,877 | $ 185,998 | $ 171,229 | $ 185,255 | $ 194,620 | $ 190,128 | $ 125,552 | $ 128,018 | $ 711,359 | $ 638,318 | $ 558,524 | |||||||
Gross Profit | $ 9,914 | $ 27,696 | $ 33,970 | $ 39,983 | $ 36,829 | $ 42,319 | $ 30,805 | $ 30,839 | 111,563 | 140,792 | 142,785 | |||||||
Geographic region | United States | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net Sales | 535,698 | 483,678 | 400,883 | |||||||||||||||
Gross Profit | 84,133 | 116,792 | 117,180 | |||||||||||||||
Geographic region | Germany | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net Sales | 96,708 | 79,105 | 76,666 | |||||||||||||||
Gross Profit | 17,148 | 13,609 | 15,154 | |||||||||||||||
Geographic region | Netherlands | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net Sales | 11,980 | 9,949 | 16,217 | |||||||||||||||
Gross Profit | 1,296 | 1,231 | 1,598 | |||||||||||||||
Geographic region | France | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net Sales | 36,644 | 35,796 | 30,177 | |||||||||||||||
Gross Profit | 4,436 | 4,651 | 4,043 | |||||||||||||||
Geographic region | Asia-Pacific | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net Sales | 30,329 | 29,790 | 34,581 | |||||||||||||||
Gross Profit | $ 4,550 | $ 4,509 | $ 4,810 | |||||||||||||||
[1] | Includes pretax item of $920 environmental remediation charge in connection with Arsynco and $76,500 valuation allowance on deferred tax assets. | |||||||||||||||||
[2] | The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: For the quarter ended March 31, 2018 As reported Adjustment As restated Income (loss) before income taxes $ (196,635 ) $ (71,350 ) $ (267,985 ) Net income (loss) per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) | |||||||||||||||||
[3] | Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. | |||||||||||||||||
[4] | Includes pretax item of $902 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[5] | Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. | |||||||||||||||||
[6] | Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. | |||||||||||||||||
[7] | Includes pretax item of $733 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[8] | Includes pretax item of $170 environmental remediation charge in connection with Arsynco. |
Segment Information (Schedule96
Segment Information (Schedule of Long-Lived Assets by Geographic Region) (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2017 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 250,665 | $ 532,479 |
Geographic region | United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 246,073 | 528,359 |
Geographic region | Europe | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 3,192 | 2,538 |
Geographic region | Asia-Pacific | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,400 | $ 1,582 |
Segment Information (Narrative)
Segment Information (Narrative) (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018USD ($) | [1],[2] | Mar. 31, 2018USD ($) | [2],[3] | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | [4] | Jun. 30, 2017USD ($) | [5],[6] | Mar. 31, 2017USD ($) | [6],[7] | Dec. 31, 2016USD ($) | [6] | Sep. 30, 2016USD ($) | [8] | Jun. 30, 2018USD ($)Principal_Segment | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | $ 168,877 | $ 185,998 | $ 171,229 | $ 185,255 | $ 194,620 | $ 190,128 | $ 125,552 | $ 128,018 | $ 711,359 | $ 638,318 | $ 558,524 | |||||||
Number of operating segments | Principal_Segment | 3 | |||||||||||||||||
Foreign Segments | United States | ||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||
Net sales | $ 24,950 | $ 21,750 | $ 23,810 | |||||||||||||||
[1] | Includes pretax item of $920 environmental remediation charge in connection with Arsynco and $76,500 valuation allowance on deferred tax assets. | |||||||||||||||||
[2] | The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: For the quarter ended March 31, 2018 As reported Adjustment As restated Income (loss) before income taxes $ (196,635 ) $ (71,350 ) $ (267,985 ) Net income (loss) per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) | |||||||||||||||||
[3] | Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. | |||||||||||||||||
[4] | Includes pretax item of $902 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[5] | Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. | |||||||||||||||||
[6] | Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. | |||||||||||||||||
[7] | Includes pretax item of $733 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[8] | Includes pretax item of $170 environmental remediation charge in connection with Arsynco. |
Unaudited Quarterly Financial98
Unaudited Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018 | [1],[2] | Mar. 31, 2018 | [2],[3] | Dec. 31, 2017 | Sep. 30, 2017 | [4] | Jun. 30, 2017 | [5],[6] | Mar. 31, 2017 | [6],[7] | Dec. 31, 2016 | [6] | Sep. 30, 2016 | [8] | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Net sales | $ 168,877 | $ 185,998 | $ 171,229 | $ 185,255 | $ 194,620 | $ 190,128 | $ 125,552 | $ 128,018 | $ 711,359 | $ 638,318 | $ 558,524 | |||||||
Gross profit | 9,914 | 27,696 | 33,970 | 39,983 | 36,829 | 42,319 | 30,805 | 30,839 | 111,563 | 140,792 | 142,785 | |||||||
Net income (loss) | $ (34,726) | $ (267,985) | $ (13,864) | $ 454 | $ 1,967 | $ 5,588 | $ (564) | $ 4,385 | $ (316,121) | $ 11,376 | $ 34,766 | |||||||
Net loss per diluted share (in dollars per share) | $ (0.98) | $ (7.59) | $ (0.39) | $ 0.01 | $ 0.06 | $ 0.16 | $ (0.02) | $ 0.15 | $ (8.98) | $ 0.35 | $ 1.18 | |||||||
[1] | Includes pretax item of $920 environmental remediation charge in connection with Arsynco and $76,500 valuation allowance on deferred tax assets. | |||||||||||||||||
[2] | The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: For the quarter ended March 31, 2018 As reported Adjustment As restated Income (loss) before income taxes $ (196,635 ) $ (71,350 ) $ (267,985 ) Net income (loss) per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) | |||||||||||||||||
[3] | Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. | |||||||||||||||||
[4] | Includes pretax item of $902 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[5] | Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. | |||||||||||||||||
[6] | Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. | |||||||||||||||||
[7] | Includes pretax item of $733 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[8] | Includes pretax item of $170 environmental remediation charge in connection with Arsynco. |
Unaudited Quarterly Financial99
Unaudited Quarterly Financial Data (Detail 1) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Jun. 30, 2018 | [1],[2] | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | [4] | Jun. 30, 2017 | [5],[6] | Mar. 31, 2017 | [6],[7] | Dec. 31, 2016 | [6] | Sep. 30, 2016 | [8] | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||||
Net loss | $ (267,985) | $ (292,822) | $ 17,361 | $ 53,854 | ||||||||||||||
Net loss per diluted share (in dollars per share) | $ (0.98) | $ (7.59) | [2],[3] | $ (0.39) | $ 0.01 | $ 0.06 | $ 0.16 | $ (0.02) | $ 0.15 | $ (8.98) | $ 0.35 | $ 1.18 | ||||||
As reported | ||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||||
Net loss | $ (196,635) | |||||||||||||||||
Net loss per diluted share (in dollars per share) | $ (5.57) | |||||||||||||||||
Adjustment | ||||||||||||||||||
Effect of Fourth Quarter Events [Line Items] | ||||||||||||||||||
Net loss | $ (71,350) | |||||||||||||||||
Net loss per diluted share (in dollars per share) | $ (2.02) | |||||||||||||||||
[1] | Includes pretax item of $920 environmental remediation charge in connection with Arsynco and $76,500 valuation allowance on deferred tax assets. | |||||||||||||||||
[2] | The Company (i) has recorded in its 2018 year-end financial statements a $76,500 valuation allowance against its U.S. net deferred tax assets for the year ended June 30, 2018, (ii) has determined that $71,350 of this non-cash charge should have been recognized in the third quarter of fiscal 2018, rather than in the fourth quarter of fiscal 2018, and (iii) accordingly will amend its most recently filed Quarterly Report on Form 10-Q to restate its third quarter and nine month consolidated financial statements to reflect $71,350 of the charge as a third quarter event. A reconciliation of the amounts previously reported for the quarter ended March 31, 2018 with the amounts to be set forth in such restated financial statements, is set forth below: For the quarter ended March 31, 2018 As reported Adjustment As restated Income (loss) before income taxes $ (196,635 ) $ (71,350 ) $ (267,985 ) Net income (loss) per diluted share $ (5.57 ) $ (2.02 ) $ (7.59 ) | |||||||||||||||||
[3] | Includes impairment charges on goodwill and intangibles of $256,266 related to the Rising reporting unit. | |||||||||||||||||
[4] | Includes pretax item of $902 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[5] | Includes pretax item of $3,139 representing immaterial correction of an error associated with certain accrued expenses. | |||||||||||||||||
[6] | Results for the last nine days of the quarter ended December 31, 2016 and for the subsequent two quarters reflect the acquisition of certain generic products and related assets from Citron and Lucid on December 21, 2016. | |||||||||||||||||
[7] | Includes pretax item of $733 environmental remediation charge in connection with Arsynco. | |||||||||||||||||
[8] | Includes pretax item of $170 environmental remediation charge in connection with Arsynco. |
Unaudited Quarterly Financia100
Unaudited Quarterly Financial Data (Narrative) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | |
Effect of Fourth Quarter Events [Line Items] | |||||||||
Environmental remediation charge | $ 1,822 | $ 903 | $ 1,313 | ||||||
Impairment charges | $ 256,266 | 256,266 | |||||||
Immaterial correction of an error | $ 3,139 | ||||||||
Deferred tax assets valuation allowance | $ 77,416 | $ 773 | 77,416 | 773 | |||||
Income (loss) before income taxes | (267,985) | (292,822) | $ 17,361 | $ 53,854 | |||||
Adjustment | |||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||
Income (loss) before income taxes | $ (71,350) | ||||||||
U.S. | |||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||
Deferred tax assets valuation allowance | 76,500 | $ 76,500 | |||||||
Arsynco, Inc | |||||||||
Effect of Fourth Quarter Events [Line Items] | |||||||||
Environmental remediation charge | $ 920 | $ 902 | $ 733 | $ 170 |
Schedule II - Valuation and 101
Schedule II - Valuation and Qualifying Accounts (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | $ 1,258 | $ 1,307 | $ 1,501 | |
Charged to costs and expenses | 77,159 | (3) | 76 | |
Charged to other accounts | 0 | 0 | 0 | |
Deductions | 14 | 46 | 270 | |
Balance at end of year | 78,403 | 1,258 | 1,307 | |
Allowance for Doubtful Accounts | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 485 | 513 | 691 | |
Charged to costs and expenses | 516 | (3) | 76 | |
Charged to other accounts | 0 | 0 | 0 | |
Deductions | [1] | 14 | 25 | 254 |
Balance at end of year | 987 | 485 | 513 | |
Deferred tax valuation allowance | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at beginning of year | 773 | 794 | 810 | |
Charged to costs and expenses | 76,643 | 0 | 0 | |
Charged to other accounts | 0 | 0 | 0 | |
Deductions | 0 | 21 | 16 | |
Balance at end of year | $ 77,416 | $ 773 | $ 794 | |
[1] | Specific accounts written off as uncollectible. |