Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2019	Aug. 22, 2019	Dec. 31, 2018
Document and Entity Information
Entity Registrant Name	OSI SYSTEMS INC
Entity Central Index Key	0001039065
Document Type	10-K
Document Period End Date	Jun. 30, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Public Float			$ 1,243,925,409
Entity Common Stock, Shares Outstanding		18,218,932
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 96,316	$ 84,814
Accounts receivable, net	238,440	210,744
Inventories	273,711	313,552
Prepaid expenses and other current assets	32,432	41,587
Total current assets	640,899	650,697
Property and equipment, net	127,385	115,524
Goodwill	307,108	292,213
Intangible assets, net	132,954	142,001
Other assets	56,518	55,256
Total assets	1,264,864	1,255,691
CURRENT LIABILITIES:
Bank lines of credit	88,000	113,000
Current portion of long-term debt	804	2,262
Accounts payable	93,500	106,892
Accrued payroll and related expenses	43,521	40,171
Advances from customers	43,227	55,761
Other accrued expenses and current liabilities	112,956	125,236
Total current liabilities	382,008	443,322
Long-term debt	257,752	248,980
Deferred income taxes	7,979	15,002
Other long-term liabilities	65,398	58,951
Total liabilities	713,137	766,255
Commitments and contingencies (Note 10)
Stockholders' Equity:
Preferred stock, $0.001 par value-10,000,000 shares authorized; no shares issued or outstanding
Common stock, $0.001 par value-100,000,000 shares authorized; issued and outstanding, 18,032,374 and 18,167,020 shares at June 30, 2018 and 2019, respectively	168,913	169,475
Retained earnings	399,541	334,745
Accumulated other comprehensive loss	(16,727)	(14,784)
Total stockholders' equity	551,727	489,436
Total liabilities and stockholders' equity	$ 1,264,864	$ 1,255,691

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2019	Jun. 30, 2018
CONSOLIDATED BALANCE SHEETS
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, authorized shares	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, authorized shares	100,000,000	100,000,000
Common stock, shares issued	18,167,020	18,032,374
Common stock, shares outstanding	18,167,020	18,032,374

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Net revenues:
Total net revenues	$ 1,182,115	$ 1,089,286	$ 960,951
Cost of goods sold:
Total cost of goods sold	751,521	697,634	637,450
Gross profit	430,594	391,652	323,501
Operating expenses:
Selling, general and administrative	262,484	239,592	192,560
Research and development	56,509	61,189	50,951
Impairment, restructuring and other charges	3,827	34,963	46,698
Total operating expenses	322,820	335,744	290,209
Income from operations	107,774	55,908	33,292
Interest expense, net	(21,603)	(19,293)	(9,629)
Interest expense and other expense, net	(21,610)
Other income (expense), net	(7)	239	2,088
Income before income taxes	86,164	36,854	25,751
Provision for income taxes	(21,368)	(65,981)	(4,675)
Net income (loss)	$ 64,796	$ (29,127)	$ 21,076
Earnings (loss) per share:
Basic (in dollars per share)	$ 3.58	$ (1.57)	$ 1.12
Diluted (in dollars per share)	$ 3.46	$ (1.57)	$ 1.07
Shares used in per share calculation:
Basic (in shares)	18,097	18,592	18,894
Diluted (in shares)	18,720	18,592	19,689
Products
Net revenues:
Total net revenues	$ 856,712	$ 732,927	$ 655,840
Cost of goods sold:
Total cost of goods sold	572,673	504,483	466,293
Services
Net revenues:
Total net revenues	325,403	356,359	305,111
Cost of goods sold:
Total cost of goods sold	$ 178,848	$ 193,151	$ 171,157

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss)	$ 64,796	$ (29,127)	$ 21,076
Other comprehensive income (loss):
Foreign currency translation adjustment	(2,059)	1,904	(433)
Other	116	500	501
Other comprehensive income (loss)	(1,943)	2,404	68
Comprehensive income (loss)	$ 62,853	$ (26,723)	$ 21,144

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Jun. 30, 2016	$ 219,114	$ 338,988	$ (17,256)	$ 540,846
Balance (in shares) at Jun. 30, 2016	18,912,157
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 4,498			4,498
Exercise of stock options (in shares)	168,564
Vesting of restricted stock/RSUs (in shares)	338,100
Shares issued under employee stock purchase program	$ 3,159			3,159
Shares issued under employee stock purchase program (in shares)	63,864
Stock compensation expense	$ 26,132			26,132
RSU obligation under business combination	1,400			1,400
Repurchase of common stock	$ (48,453)			$ (48,453)
Repurchase of common stock (in shares)	(642,277)			(642,277)
Taxes paid related to net share settlement of equity awards	$ (10,084)			$ (10,084)
Taxes paid related to net share settlement of equity awards (in shares)	(150,840)
Equity component of convertible debt	$ 26,763			26,763
Accounting change for stock based compensation		3,808		3,808
Net income (loss)		21,076		21,076
Other comprehensive income (loss)			68	68
Balance at Jun. 30, 2017	$ 222,529	363,872	(17,188)	569,213
Balance (in shares) at Jun. 30, 2017	18,689,568
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 2,863			2,863
Exercise of stock options (in shares)	121,651
Vesting of restricted stock/RSUs (in shares)	413,639
Shares issued under employee stock purchase program	$ 4,033			4,033
Shares issued under employee stock purchase program (in shares)	78,310
Stock compensation expense	$ 23,846			23,846
Repurchase of common stock	$ (62,932)			$ (62,932)
Repurchase of common stock (in shares)	(1,021,458)			(1,021,458)
Taxes paid related to net share settlement of equity awards	$ (20,864)			$ (20,864)
Taxes paid related to net share settlement of equity awards (in shares)	(249,336)
Net income (loss)		(29,127)		(29,127)
Other comprehensive income (loss)			2,404	2,404
Balance at Jun. 30, 2018	$ 169,475	334,745	(14,784)	$ 489,436
Balance (in shares) at Jun. 30, 2018	18,032,374			18,032,374
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 4,972			$ 4,972
Exercise of stock options (in shares)	169,799
Vesting of restricted stock/RSUs (in shares)	364,410
Shares issued under employee stock purchase program	$ 4,180			4,180
Shares issued under employee stock purchase program (in shares)	75,313
Stock compensation expense	$ 25,251			25,251
Repurchase of common stock	$ (21,029)			$ (21,029)
Repurchase of common stock (in shares)	(288,316)			(288,316)
Taxes paid related to net share settlement of equity awards	$ (13,936)			$ (13,936)
Taxes paid related to net share settlement of equity awards (in shares)	(186,560)
Net income (loss)		64,796		64,796
Other comprehensive income (loss)			(1,943)	(1,943)
Balance at Jun. 30, 2019	$ 168,913	$ 399,541	$ (16,727)	$ 551,727
Balance (in shares) at Jun. 30, 2019	18,167,020			18,167,020

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 64,796	$ (29,127)	$ 21,076
Adjustments to reconcile net income (loss) to net cash provided by operating activities, net of effects from acquisitions:
Depreciation and amortization	56,234	69,754	68,235
Stock-based compensation	25,251	23,846	26,132
Provision for losses on accounts receivable	2,741	3,270	2,086
Deferred income taxes	(8,536)	26,113	(24,222)
Amortization of debt discount and issuance costs	9,026	8,632	2,844
Impairment charges		7,795	27,047
Gain on sale of business			(2,110)
Other	292	1,668	(1,346)
Changes in operating assets and liabilities-net of business acquisitions:
Accounts receivable	(27,206)	11,340	(44,462)
Inventories	39,447	(59,221)	30,808
Prepaid expenses and other assets	(6,175)	(836)	5,609
Accounts payable	(16,623)	25,145	2,657
Accrued payroll and related expenses	3,355	3,412	1,366
Advances from customers	(12,489)	17,183	(33,552)
Other	(11,001)	24,135	(19,389)
Net cash provided by operating activities	119,112	133,109	62,779
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(27,412)	(43,198)	(17,096)
Acquisition of businesses, net of cash acquired	(18,271)	(100,159)	(188,542)
Net proceeds from sale of business			12,793
Acquisition of intangible and other assets	(2,803)	(2,453)	(5,147)
Net cash used in investing activities	(48,486)	(145,810)	(197,992)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings (payments) on bank lines of credit	(25,006)	10,000	(22,000)
Proceeds from long-term debt	1,409	1,044	280,541
Payments on long-term debt	(3,122)	(2,592)	(4,077)
Proceeds from exercise of stock options and employee stock purchase plan	9,152	6,896	7,657
Payment of contingent consideration	(5,782)	(3,634)	(2,696)
Repurchase of common stock	(21,029)	(62,932)	(48,453)
Taxes paid related to net share settlement of equity awards	(13,936)	(20,864)	(10,084)
Net cash provided by (used in) financing activities	(58,314)	(72,082)	200,888
Effect of exchange rate changes on cash	(810)	(53)	(395)
Net increase (decrease) in cash and cash equivalents	11,502	(84,836)	65,280
Cash and cash equivalents-beginning of year	84,814	169,650	104,370
Cash and cash equivalents-end of year	96,316	84,814	169,650
Cash paid, net during the period for:
Interest	11,862	9,249	5,185
Income taxes	$ 34,794	$ 29,445	$ 25,066

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Jun. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business —OSI Systems, Inc., together with our subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. We sell our products in diversified markets, including homeland security, healthcare, defense and aerospace.

We have three reporting segments: (i) Security, providing security inspection systems and related services, and turnkey security screening solutions; (ii) Healthcare, providing patient monitoring, diagnostic cardiology and related services and (iii) Optoelectronics and Manufacturing, providing specialized electronic components and electronic manufacturing services for our Security and Healthcare divisions as well as to external original equipment manufacturer (“OEM”) customers and end users for applications in the defense, aerospace, medical and industrial markets, among others.

Through our Security segment, we provide security screening products and related services globally. These products fall into the following categories: baggage and parcel inspection; cargo and vehicle inspection; hold (checked) baggage screening; people screening; radiation detection; and explosive and narcotics trace detection. In addition to these products, we also provide site design, installation, training and technical support services to our customers. We also provide turnkey security screening solutions, which can include the construction, staffing and long-term operation of security screening checkpoints for our customers.

Through our Healthcare segment, we design, manufacture, market and service patient monitoring and diagnostic cardiology systems and related supplies and accessories worldwide. These products are used by care providers in critical care, emergency and perioperative areas within hospitals as well as physicians’ offices, medical clinics and ambulatory surgery centers, among others.

Through our Optoelectronics and Manufacturing segment, we design, manufacture and market optoelectronic devices and flex circuits and provide electronics manufacturing services worldwide for use in a broad range of applications, including aerospace and defense electronics, X-ray security and inspection systems and medical imaging, chemistry analysis and diagnostics instruments, telecommunications, scanners and industrial automations, automotive diagnostic systems, internet of things (IoT) and consumer wearable products. This division provides products and services to OEM customers and end users as well as to our Security and Healthcare divisions.

Consolidation —The consolidated financial statements include the accounts of OSI Systems, Inc. and our wholly-owned and majority-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Investments in joint ventures over which we have significant influence but do not have voting control are accounted for using the equity method. Investments over which we do not have significant influence are accounted for using the cost method.

Use of Estimates —The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of sales and costs of sales during the reporting period. The most significant of these estimates and assumptions for our company relate to contract revenue, profit and loss recognition, fair values of assets acquired and liabilities assumed in business combinations, values for inventories reported at lower of cost or net realizable value, stock-based compensation expense, income taxes, accrued warranty costs, and the recoverability, useful lives and valuation of recorded amounts of long-lived assets, identifiable intangible assets and goodwill. Changes in estimates are reflected in the periods during which they become known. Actual amounts may differ from these estimates and could differ materially.

Cash Equivalents —We consider all highly liquid investments with maturities of three months or less as of the acquisition date to be cash equivalents.

Our cash and cash equivalents totaled $96.3 million at June 30, 2019. These amounts were held primarily by our subsidiaries in Singapore, Mexico, the United Kingdom, Malaysia, and India and to a lesser extent in Canada, Albania, and Germany among others. We have cash holdings that exceed insured limits for financial institutions; however, we mitigate this risk by utilizing high credit quality financial institutions throughout the world.

Accounts Receivable —We monitor collections and payments from our customers and we maintain allowances for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments. We also assess current economic trends that might impact the level of credit losses in the future. If the financial condition of our customers were to deteriorate, resulting in an impairment of their ability to make payments, additional allowances could be required.

Components of accounts receivable consisted of (in thousands):


	June 30,
	2018		2019
Accounts receivables	$	221,240	$	253,504
Less allowance for doubtful accounts		(10,496)		(15,064)
Total	$	210,744	$	238,440

Inventories-Inventories are generally stated at the lower of cost (first-in, first-out) or net realizable value. We write down inventory for slow-moving and obsolete inventory based on historical usage, orders on hand, assessments of future demands, market conditions among other items. If these factors are less favorable than those projected, additional inventory write-downs may be required.

Property and Equipment —Property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are charged while assets are used in service and are computed using the straight-line method over the estimated useful lives of the assets taking into consideration any estimated salvage value. Amortization of leasehold improvements is calculated on the straight-line method over the shorter of the useful life of the asset or the lease term. Leased capital assets are included in property and equipment. Amortization of property and equipment under capital leases is included with depreciation expense. In the event that property and equipment are idle, as a result of excess capacity or the early termination, non-renewal or reduction in scope of a turnkey screening operation, such assets are assessed for impairment on a periodic basis or if any indicators of impairment exist. As more fully described in Note 6, in fiscal 2017, we determined that certain fixed assets related to our turnkey security screening program in Mexico that were not in use were permanently impaired.

Goodwill and Other Intangible Assets and Valuation of Long-Lived Assets —Goodwill represents the excess purchase price over the estimated fair value of the assets acquired and liabilities assumed in a business combination. Goodwill is allocated to our segments based on the nature of the product line of the acquired business. The carrying value of goodwill is not amortized, but is annually tested for impairment as of the end of the second quarter and more frequently if there is an indicator of impairment. We assess qualitative factors of each of our three reporting units to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The assessments conducted as of December 31, 2018 indicated that it is not more likely than not that the fair values of two of our three reporting units are less than their carrying amounts, including goodwill. Thus, we have determined that there is no goodwill impairment for these two reporting units.

For the third reporting unit, the results of our assessment of qualitative factors were not conclusive so we proceeded with a quantitative assessment to determine if the carrying amount of this reporting unit exceeds its fair value. The fair value of the reporting unit was calculated using the income approach. Under the income approach, the fair value of the reporting unit was calculated by estimating the present value of associated future cash flows. The analysis indicated that the estimated fair value of the third reporting unit substantially exceeded the carry amount, plus goodwill, of the reporting unit. We applied a hypothetical 10 percent decrease to the fair value of the reporting unit, which at December 31, 2018, would not have indicated impairment. Therefore, we have determined that there is no goodwill impairment for this reporting unit.

We evaluate long-lived assets with finite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Impairment is considered to exist if the total estimated future cash flows on an undiscounted basis are less than the carrying amount of the assets. If impairment does exist, we measure the impairment loss and record it based on the discounted estimate of future cash flows. In estimating future cash flows, we group assets at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows from other asset groups. Our estimate of future cash flows is based upon, among other things, certain assumptions about expected future operating performance, growth rates and other factors.

Income Taxes— Deferred income taxes are provided for temporary differences between the financial statement and income tax basis of our assets and liabilities, based on enacted tax rates. A valuation allowance is provided when it is more likely than not that some portion or all of the deferred income tax assets will not be realized. Income tax accounting standards prescribe a two-step process for the financial statement measurement and recognition of a tax position taken or expected to be taken in a tax return. The first step involves the determination of whether it is more likely than not (greater than 50 percent likelihood) that a tax position will be sustained upon examination, based on the technical merits of the position. The second step requires that any tax position that meets the more-likely-than-not recognition threshold be measured and recognized in the financial statements at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. See Note 9 for additional information.

Fair Value of Financial Instruments—Our financial instruments consist primarily of cash and cash equivalents, marketable securities, derivative instruments, accounts receivable, accounts payable and debt instruments. The carrying values of financial instruments, other than long term debt instruments, are representative of their fair values due to their short term maturities. The carrying values of our long term debt instruments are considered to approximate their fair values because the interest rates of these instruments are variable or comparable to current rates available to us.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. “Level 1” category includes assets and liabilities at quoted prices in active markets for identical assets and liabilities. “Level 2” category includes assets and liabilities from observable inputs other than quoted market prices. “Level 3” category includes assets and liabilities for which valuation techniques are unobservable and significant to the fair value measurement. As of June 30, 2018 and 2019, there were no assets where “Level 3” valuation techniques were used. As further discussed in Note 10 to the consolidated financial statements, our contingent payment obligations related to acquisitions are valued using “Level 3” valuation techniques on a recurring basis. The fair values of our financial assets and liabilities as of June 30, 2018 and 2019 are categorized as follows (in thousands):


	June 30, 2018								June 30, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Insurance company contracts	$	—	$	31,897	$	—	$	31,897	$	—	$	35,899	$	—	$	35,899
Interest rate contract		—		18		—		18		—		—		—		—
Total assets	$	—	$	31,915	$	—	$	31,915	$	—	$	35,899	$	—	$	35,899
Liabilities—Contingent consideration	$	—	$	—	$	15,713	$	15,713	$	—	$	—	$	16,577	$	16,577

Revenue Recognition

ASU 2014-09, Revenue from Contracts with Customers (Topic 606). In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09 and related amendments (“ASC 606”), which superseded all prior revenue recognition methods and industry-specific guidance. The core principle of ASC 606 is that an entity should recognize revenue to depict the transfer of control for promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In applying the revenue principles, an entity is required to identify the contract(s) with a customer, identify the performance obligations, determine the transaction price, allocate the transaction price to the performance obligations and recognize revenue when the performance obligation is satisfied (i.e., either over time or at a point in time). ASC 606 further requires that companies disclose sufficient information to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. On July 1, 2018, we adopted ASC 606 using the modified retrospective method, whereby the adoption does not impact any prior periods. We identified contracts not yet completed as of July 1, 2018 and applied the new guidance on a prospective basis.

Product Sales. We recognize revenue from sales of products upon shipment or delivery when control of the product transfers to the customer, depending on the terms of each sale, and when collection is probable. In the circumstance where terms of a product sale include subjective customer acceptance criteria, revenue is deferred until we have achieved the acceptance criteria unless the customer acceptance criteria are perfunctory or inconsequential. We generally offer customers payment terms of less than one year. In cases when payment terms extend beyond one year, we consider whether the contract has a significant financing component.

Service Revenue. Revenue from services includes installation and implementation of products and turnkey security screening services and after-market services. Generally, revenue from services is recognized over time as the services are performed. Revenues from out of warranty service maintenance contracts are recognized ratably over the respective terms of such contracts. Deferred revenue for such services arises from payments received from customers for services not yet performed.

Contract Revenue. Sales agreements with customers can be project specific, cover a period of time, and can be renewable periodically. The contracts may contain terms and conditions with respect to payment, delivery, installation, services, warranty and other rights. In certain instances, we consider an accepted customer order, governed by a master sales agreement, to be the contract with the customer when legal rights and obligations exist. Contracts with customers may include the sale of products and services, as discussed in the paragraphs above. In certain instances, contracts can contain multiple performance obligations as discussed in the paragraph below. According to the terms of a sale contract, we may receive consideration from a customer prior to transferring goods to the customer, and we record these prepayments as a contract liability. We also record deferred revenue, typically related to service contacts, when consideration is received before the services have been performed. We recognize customer deposits and deferred revenue as net sales after all revenue recognition criteria are met.

When determining revenue recognition for contracts, we use judgment based on our understanding of the obligations within each contract. We determine whether or not customer acceptance criteria are perfunctory or inconsequential. The determination of whether or not customer acceptance terms are perfunctory or inconsequential impacts the amount and timing of revenue recognition. Critical judgments also include estimates of warranty reserves, which are established based on historical experience and knowledge of the product under warranty.

Multiple Performance Obligations. Certain agreements with customers include the sale of capital equipment involving multiple elements that may include civil works to prepare a site for the installation of equipment, manufacture and delivery of equipment, installation and integration of equipment, training of customer personnel to operate the equipment and after-market service of the equipment. We generally separate multiple elements in a contract into separate performance obligations if those elements are distinct, both individually and in the context of the contract. If multiple promises comprise a series of distinct services which are substantially the same and have the same pattern of transfer, they are combined and accounted for as a single performance obligation.

In cases where obligations in a contract are distinct and thus require separation into multiple performance obligations, revenue recognition guidance requires that contract consideration be allocated to each distinct performance obligation based on its relative standalone selling price. The value allocated to each performance obligation is then recognized as revenue when the revenue recognition criteria for each distinct promise or bundle of promises has been met.

The standalone selling price for each performance obligation is an amount that depicts the amount of consideration to which the entity expects to be entitled in exchange for transferring the good or service. When there is only one performance obligation associated with a contract, the entire sale value is attributed to that obligation. When a contract contains multiple performance obligations the transaction value is first allocated using the observable price, which is generally a list price net of applicable discount or the price used to sell in similar circumstances. In circumstances when a selling price is not directly observable, we will estimate the standalone selling price using information available to us including our market assessment and expected cost plus margin.

The timetable for fulfilment of each of the distinct performance obligations can range from completion in a short amount of time and entirely within a single reporting period to completion over several reporting periods. The timing of revenue recognition for each performance obligation may be dependent upon several milestones, including physical delivery of equipment, completion of factory acceptance test, completion of site acceptance test, installation and connectivity of equipment, certification of training of personnel and, in the case of after-market service deliverables, the passage of time (typically evenly over the post-warranty period of the service deliverable).

We often provide a guarantee to support our performance under multiple performance obligations. In the event that customers are permitted to terminate such arrangements, the underlying contract typically requires payment for deliverables and reimbursement of costs incurred through the date of termination.

Effect of Adopting ASC 606. Adopting ASC 606 did not require any cumulative effect adjustment to retained earnings as of July 1, 2018 because the impact on retained earnings was immaterial. The impact to our consolidated statements of operations is shown below for the year ended June 30, 2019 and for the balance sheet as of June 30, 2019.

Statement of Operations (in thousands)


	Year Ended June 30, 2019
			Results without
	Results as Reported		Adoption of ASC 606		Effect of Change
Revenue	$	1,182,115	$	1,149,209	$	32,906
Cost of goods sold		751,521		734,322		17,199
Operating expenses		322,820		309,824		12,996
Income from operations		107,774		105,063		2,711
Interest and other expense, net		(21,610)		(21,610)		—
Income tax provision		(21,368)		(20,943)		(425)
Net income	$	64,796	$	62,510	$	2,286

Balance Sheet (in thousands)


	June 30, 2019
			Balances without
	Balances as Reported		Adoption of ASC 606		Effect of Change
Assets
Accounts receivable, net	$	238,440	$	218,941	$	19,499
Inventories		273,711		290,980		(17,269)
Other assets		752,713		753,138		(425)
Liabilities
Current liabilities		382,008		382,489		(481)
Other liabilities		331,129		331,129		—
Stockholders’ Equity
Retained earnings		399,541		397,255		2,286

During the year ended June 30, 2019, we recognized additional revenue as a result of adopting ASC 606. This is primarily due to sales within our Security division where we met certain contractual performance obligations. As a result, this increased net income and accounts receivable and reduced inventories.

We disaggregate revenue by reporting segment (Security, Optoelectronics and Manufacturing, and Healthcare) to depict the nature of revenue in a manner consistent with our business operations and to be consistent with other communications and public filings. Refer to Note 14 to our consolidated financial statements for additional details of revenues by reporting segment.

Contract Assets and Liabilities. We enter into contracts to sell products and provide services, and we recognize contract assets and liabilities that arise from these transactions. We recognize revenue and corresponding accounts receivable according to ASC 606 and, at times, recognize revenue in advance of the time when contracts give us the right to invoice a customer. We may also receive consideration, per the terms of a contract, from customers prior to transferring goods to the customer. We record customer deposits as a contract liability. Additionally, we may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, we record a deferred revenue liability. We recognize these contract liabilities as sales after all revenue recognition criteria are met. The table below shows the balance of contract assets and liabilities as of June 30, 2018 and 2019, including the change between the periods. There were no substantial non-current contract assets for the periods presented.

Contract Assets (in thousands)


	June 30,		June 30,
	2018		2019		Change		% Change
Unbilled revenue	$	1,617	$	19,287	$	17,670	>100	%

Contract Liabilities (in thousands)


	June 30, 2018		June 30, 2019		Change		% Change
Advances from customers	$	55,761	$	43,227	$	(12,534)	(22)	%
Deferred revenue—current		28,899		33,641		4,742	16	%
Deferred revenue—long-term		9,562		9,506		(56)	(1)	%

Remaining Performance Obligations. Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations under an original contract with a term greater than one year which are fully or partially unsatisfied at the end of the period. As of June 30, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $143.5 million. We expect to recognize revenue on approximately 43% of the remaining performance obligations over the next 12 months, and the remainder is expected to be recognized thereafter. During year ended June 30, 2019, we recognized revenue of $74.6 million from contract liabilities existing at the beginning of the year.

Practical Expedients. In cases where we are responsible for shipping after the customer has obtained control of the goods, we have elected to treat the shipping activities as fulfillment activities rather than as a separate performance obligation. Additionally, we have elected to capitalize the cost to obtain a contract only if the period of amortization would be longer than one year. We only give consideration to whether a customer agreement has a financing component if the period of time between transfer of goods and services and customer payment is greater than one year.

Freight —We record shipping and handling fees that we charge to our customers as revenue and related costs as cost of goods sold.

Research and Development Costs—Research and development costs are those costs related to the development of a new product, process or service, or significant improvement to an existing product, process or service. Such costs are charged to operations as incurred.

Stock-Based Compensation—Stock-based compensation cost is measured at the grant date based on the estimated fair value of the award and is recognized as expense over the employee’s requisite service period for all stock-based awards granted or modified. Certain restricted stock unit awards vest based on the achievement of pre-established performance criteria. The fair value of performance-based awards is estimated at the date of grant based upon the probability that the specified performance criteria will be met, adjusted for estimated forfeitures. Each quarter we update our assessment of the probability that the specified performance criteria will be achieved and adjust the estimate of the fair value of the performance-based awards if necessary. We amortize the fair value of performance-based awards over the requisite service period for each separately vesting tranche of the award. See Note 8 to the consolidated financial statements.

Impairment, Restructuring and Other Charges -We account for certain charges related to restructuring activities, litigation, acquisition-related costs and other non-routine charges as Impairment, restructuring and other charges in the consolidated financial statements. See Note 6 for additional information about these charges.

Credit Risk and Concentration —Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash, cash equivalents, marketable securities and accounts receivable. We restrict investments in cash equivalents to financial institutions with high credit standing. Credit risk on accounts receivable is minimized as a result of the large and diverse nature of our company’s worldwide customer base. As of June 30, 2018 and 2019, no customer accounted for greater than 10% of accounts receivable. SAT accounted for 12% of revenues for the fiscal year ended June 30, 2017. No customer accounted for greater than 10% of revenues for the fiscal years ended June 30, 2018 and 2019. We perform ongoing credit evaluations of our customers’ financial condition and maintain allowances for potential credit losses.

Our cash and cash equivalents totaled $84.8 million and $96.3 million at June 30, 2018 and 2019, respectively. Of these amounts, approximately 86% and 87% was held by our foreign subsidiaries at June 30, 2018 and 2019, respectively.

For cost, quality control, technological, and efficiency reasons, we purchase certain materials, parts, and components only from single vendors with whom we have ongoing relationships. We do, however, qualify second sources for many of our materials, parts, and components. While management believes that relying on key vendors improves the efficiency and reliability of business operations, relying on any one vendor for a significant aspect of business can have a significant negative impact on revenue and profitability if that vendor fails to perform at acceptable service levels for any reason, including financial difficulties of the vendor.

Foreign Currency Translation and Transactions —We transact business in various foreign currencies. In countries where the functional currency of the underlying operations has been determined to be the local country’s currency, revenues and expenses of operations outside the United States are translated into United States dollars using average exchange rates while assets and liabilities of operations outside the United States are translated into United States dollars using period-end exchange rates. The effects of foreign currency translation adjustments are included in stockholders’ equity as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. Transaction gains and losses, which were included in our consolidated statement of operations, amounted to a gain (loss) of approximately $2.0 million, $(1.3) million and $0.1 million for the fiscal years ended June 30, 2017, 2018 and 2019, respectively.

Business Combinations —Under ASC 805, the acquisition method of accounting requires us to record assets acquired and liabilities assumed from an acquisition at their estimated fair values at the date of acquisition. Any excess of the total estimated purchase price over the estimated fair value of the net assets acquired should be recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customers, acquired technology, trade names, useful lives and discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, which is one year from the acquisition date, as additional information becomes available for preliminary estimates, we may record adjustments to the preliminary assets acquired and liabilities assumed. Upon the conclusion of the measurement period, any subsequent adjustments are included in earnings.

Earnings per Share— We compute basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. We compute diluted earnings per share by dividing net income available to common stockholders by the sum of the weighted average number of common shares and dilutive potential common shares outstanding during the period. Potential common shares consist of the shares issuable upon the exercise of stock options and restricted stock unit awards under the treasury stock method. In periods where a net loss is reported, basic and diluted net loss per share are the same since the effect of potential common shares is antidilutive and therefore excluded. The underlying equity component of the 1.25% convertible senior notes due 2022 (the “Notes”) discussed in Note 7 to the consolidated financial statements has been excluded from the calculation of diluted earnings per share as it was anti-dilutive since the average price of our common stock did not exceed the conversion price because the principal amount of the Notes is intended to be settled in cash upon conversion.

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):


	2017		2018		2019
Net income (loss) available to common stockholders	$	21,076	$	(29,127)	$	64,796
Weighted average shares outstanding—basic		18,894		18,592		18,097
Dilutive effect of equity awards		795		—		623
Weighted average shares outstanding—diluted		19,689		18,592		18,720
Basic earnings (loss) per share	$	1.12	$	(1.57)	$	3.58
Diluted earnings (loss) per share	$	1.07	$	(1.57)	$	3.46
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect		87		1,280		40

Warranty Provision —We offer our customers warranties on many of the products that we sell. These warranties typically provide for repairs and maintenance of the products if problems arise during a specified time period after original shipment. Concurrent with the sale of products, we record a provision for estimated warranty expenses with a corresponding increase in cost of goods sold. We periodically adjust this provision based on historical experience and anticipated expenses. We charge actual expenses of repairs under warranty, including parts and labor, to this provision when incurred. The warranty provision is included in other accrued expenses and current liabilities in the consolidated balance sheets, whose activity for each of the three fiscal years ended June 30, 2019 is summarized in the following table (in thousands):


Warranty provision as of June 30, 2016	$	15,948
Warranty claims provided for/assumed in acquisition		5,793
Settlements made		(6,563)
Warranty provision as of June 30, 2017	$	15,178
Warranty claims provided for/assumed in acquisition		14,156
Settlements made		(7,515)
Warranty provision as of June 30, 2018	$	21,819
Warranty claims provided for/assumed in acquisition		8,867
Settlements made		(8,962)
Warranty provision as of June 30, 2019	$	21,724

Recent Accounting Guidance

Recently Adopted Accounting Pronouncements

Revenue

As discussed above, we adopted ASC 606 on July 1, 2018 using the modified retrospective method, whereby the adoption does not impact any prior periods.

Statement of Cash Flows

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments. The update was issued with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230 and other topics. We adopted this ASU effective July 1, 2018 using the retrospective approach and the initial adoption had no material effect on our consolidated statement of cash flows.

Income Taxes

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Asset Transfers of Assets Other than Inventory. The new guidance eliminates the exception for intra-entity transfers other than inventory and requires the recognition of current and deferred income taxes resulting from such a transfer when the transfer occurs. We adopted this ASU effective July 1, 2018 using the modified retrospective transition method resulting in a reclassification in the balance sheet of $3 million to decrease prepaid expenses and other assets and increase deferred tax assets.

Recently Issued Accounting Pronouncements Not Yet Adopted

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance requires lessees to recognize right of use (“ROU”) assets and lease liabilities on the balance sheet for the rights and obligations created by leases with terms of more than 12 months. The ASU also requires qualitative and quantitative disclosures designed to give financial statement readers information on the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for us in the first quarter of fiscal 2020. We adopted the new lease standard effective July 1, 2019 using the effective date method, under which an entity initially applies the new standard at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We reviewed existing contracts, implemented a new lease accounting and administration software solution, and modified our accounting policies, operational and financial reporting processes and relevant internal controls. We have elected to adopt certain practical expedients provided under ASC 842, including the option to not apply lease recognition for short-term leases, the package of transitional practical expedients relating to lease identification, lease classification, and initial direct costs of leases, and applying a single discount rate to a portfolio of leased assets with similar durations. The adoption of the new standard will result in the recognition of at least $28 million of ROU assets and lease liabilities to our balance sheet. We are continuing to assess the impact of adopting the new standard on our consolidated financial statements but do not expect a material impact on our consolidated statement of operations or consolidated statement of cash flows.

Retirement Benefit Plans

In August 2018, the FASB issued authoritative guidance under ASU 2018-14, Compensation—Retirement Benefits—Defined Benefit Plans—General: Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans. This ASU eliminates requirements for certain disclosures and requires additional disclosures under defined benefit pension plans and other post-retirement plans. We are required to adopt this new guidance in the first quarter of fiscal 2021. We are currently evaluating the potential impact of the adoption of this guidance on our consolidated financial statements.

Intangibles

In August 2018, the FASB issued authoritative guidance under ASU 2018-15, Intangibles—Goodwill and Other—Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract. This ASU requires implementation costs incurred by customers in cloud computing arrangements (i.e., hosting arrangements) to be capitalized under the same premises of authoritative guidance for internal-use software, and deferred over the noncancellable term of the cloud computing arrangements plus any option renewal periods that are reasonably certain to be exercised by the customer or for which the exercise is controlled by the service provider. We are required to adopt this new guidance in the first quarter of fiscal 2021. We are currently evaluating the potential impact of adoption of this guidance on our consolidated financial statements.

ACQUISITION ACTIVITY

12 Months Ended

Jun. 30, 2019

ACQUISITION ACTIVITY

ACQUISITION ACTIVITY

2. ACQUISITION ACTIVITY

Acquisition of Explosive Trace Detection Business

On July 7, 2017, we acquired the global explosive trace detection business ("ETD") from Smiths Group plc. This acquisition was a carve out from a larger entity. We financed the total purchase price of $80.5 million with a combination of cash on hand and borrowings under our existing revolving bank line of credit. The valuation of certain assets and liabilities of ETD were performed by a third party valuation specialist.

The major classes of assets and liabilities, reconciled to total purchase consideration (in thousands):


Cash and cash equivalents	$	4
Accounts receivable, net		15,517
Inventories		11,678
Property and equipment		1,599
Intangible assets		30,370
Deferred tax asset		2,738
Other long-term assets		297
Accounts payable		(4,784)
Accrued payroll and related expenses		(2,116)
Deferred revenues—current		(924)
Accrued warranties		(2,068)
Advances from customers		(670)
Other accrued expenses and current liabilities		(1,074)
Deferred revenues—long term		(232)
Net assets acquired		50,335
Goodwill		30,132
Total consideration	$	80,467

The goodwill is largely attributable to expected growth, intellectual capital and the assembled workforce of the ETD business. Intangible assets are recorded at estimated fair value, as determined by management based on available information, with assistance from a third party. The fair value attributed to the intangible assets acquired was based on estimates, assumptions and other information compiled by management, and valuations resulting from established valuation techniques. The value attributed to goodwill and intangible assets is partially non-deductible for income tax purposes. The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date (amounts in thousands):


	Weighted
	Average
	Lives	Fair Value
Amortizable assets:
Developed technology	10 years	$	14,210
Customer relationships/backlog	7 years		16,070
In-process research and development ("IPR&D")			90
Total intangible assets		$	30,370

Our consolidated statements of operations include $76.5 million of revenue and $10.7 million of income from operations from ETD for the period from July 7, 2017 to June 30, 2018.

The following unaudited pro forma results of operations assume the ETD acquisition had occurred on July 1, 2016 (in thousands):


	2017
Revenues	$	1,036,814
Income from operations	$	46,725

Significant pro forma adjustments incorporated into the pro forma results above include the recognition of additional amortization expense related to acquired intangible assets. The pro forma results for the year ended June 30, 2017 were carved out from the operations of the business when it was owned by its former parent. These carve-out results have been prepared from the historical accounts of its former parent, and include revenues and expenses specifically identified to ETD, and allocations of certain overhead expenses. These pro forma results were based on estimates and assumptions, which we believe are reasonable. They are prepared for comparative purposes only and do not necessarily reflect the results that would have been realized had the ETD acquisition occurred at the beginning of the period presented and are not necessarily indicative of our consolidated results of operations in future periods.

Acquisition of American Science and Engineering

On September 9, 2016, we acquired by merger 100% ownership of AS&E, a leading provider of detection solutions for advanced cargo, parcel, and personnel inspection. AS&E's operations are included in our Security division. We financed the total cash merger consideration of $266 million with a combination of cash on hand and borrowings under our existing revolving bank line of credit, and also issued restricted stock units ("RSUs") of the Company to replace RSUs previously issued by AS&E. Immediately following the close of the acquisition, we used $69 million of AS&E's existing cash on hand to pay down the revolving bank line of credit. The valuation of the estimated fair value of the assets acquired and liabilities assumed as a result of this business combination has been finalized.

The major classes of assets and liabilities, reconciled to total purchase consideration (in thousands):


Cash and cash equivalents	$	79,195
Accounts receivable		24,607
Inventories		27,495
Other current assets		7,450
Property and equipment		5,337
Intangible assets		74,800
Other long—term assets		201
Accounts payable		(5,044)
Accrued payroll and related expenses		(4,723)
Deferred revenues—current		(11,281)
Advances from customers		(13,784)
Other accrued expenses and current liabilities		(7,279)
Deferred revenues—long term		(3,225)
Deferred income tax liability		(9,580)
Other long—term liabilities		(14,004)
Net assets acquired		150,165
Goodwill		115,838
Total consideration	$	266,003

The goodwill is largely attributable to expected synergies between us and AS&E and the assembled workforce of AS&E.

Intangible assets are recorded at estimated fair value, as determined by management based on available information, which includes a valuation prepared by an independent third party. The fair value attributed to the intangible assets acquired was based on estimates, assumptions and other information compiled by management, including independent valuations that utilized established valuation techniques. The value attributed to goodwill and intangible assets is not deductible for income tax purposes. The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date (amounts in thousands):


	Weighted	Gross
	Average	Value
	Lives	Carrying
Amortizable assets:
Developed technology	10 years	$	31,750
Customer relationships/backlog	7 years		27,550
In—process research and development (“IPR&D”)	5 years		3,200
Total amortizable assets			62,500
Non—amortizable assets:
Trademarks and trade names			12,300
Total intangible assets		$	74,800

The consolidated statements of operations include $94.0 million of revenue and $8.7 million of pre-tax income from AS&E for the period from September 10, 2016 to June 30, 2017.

The following unaudited pro forma results of operations are prepared for comparative purposes only and do not necessarily reflect the results that would have occurred had the acquisition occurred at the beginning of the earliest period presented or the results which may occur in the future. The following unaudited pro forma results of operations assume the AS&E acquisition had occurred on July 1, 2016 (in thousands):


	2017
Revenues	$	978,706
Income before taxes	$	5,856

Significant pro forma adjustments incorporated into the unaudited pro forma results above include the recognition of additional amortization expense related to acquired intangible assets and additional interest expense related to debt incurred to finance the acquisition. In addition, significant non-recurring adjustments include the elimination and shift to the comparable periods in the prior year of non-recurring acquisition-related expenses and employee termination costs related to the integration of AS&E into the operations of our Security division. Total eliminations for these items during the fiscal year ending 2017 was $13.9 million.

Other Business Acquisitions

In January 2019, we (through our Security division) completed an acquisition of a privately held sales and services company. The acquisition was financed with cash on hand and was in an amount determined to be insignificant by management.

In August 2018, we (through our Security division) completed an acquisition of a privately held services company for approximately $0.8 million, plus up to approximately $5 million in contingent consideration, which may be earned over a five-year period. The acquisition was financed with cash on hand. The goodwill recognized for this business is not expected to be deductible for income tax purposes.

In July 2018, we (through our Optoelectronics and Manufacturing division) acquired an optoelectronics solutions business for $17.5 million, plus up to $1 million in potential contingent consideration, which may be earned over an 18-month period. The acquisition was financed with cash on hand and borrowings under our existing revolving bank line of credit. The goodwill recognized for this business is expected to be deductible for income tax purposes.

In January 2018, we (through our Optoelectronics and Manufacturing division) acquired an electronics component designer and manufacturer for approximately $22 million, plus up to $6 million in potential earnout consideration. In aggregate, $12.6 million was attributed to intangible assets, $14.0 million was attributed to goodwill, and $3.3 million was attributed to net assets acquired. The acquisition was financed with cash on hand and borrowings under our existing revolving bank line of credit.

In July 2017, we (through our Security division) completed an acquisition of a privately held technology company. The acquisition purchase price was financed with cash on hand and was in an amount (including potential earnout consideration) determined to be insignificant by management.

These business acquisitions, individually and in the aggregate, were not material to our consolidated financial statements. Accordingly, pro-forma historical results of operations related to these businesses have not been presented.

INVENTORIES

12 Months Ended

Jun. 30, 2019

INVENTORIES

INVENTORIES

3. INVENTORIES

Inventory consisted of the following (in thousands):


	June 30,
	2018		2019
Raw materials	$	156,612	$	143,697
Work-in-process		89,468		67,897
Finished goods		67,472		62,117
Total	$	313,552	$	273,711

PROPERTY AND EQUIPMENT

12 Months Ended

Jun. 30, 2019

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

4. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following (amounts in thousands):


	Estimated
	Useful	June 30,
	Lives	2018		2019
Land	N/A	$	16,569	$	16,564
Buildings, civil works and improvements	5-40 years		56,585		55,391
Leasehold improvements	1-13 years		9,681		8,311
Equipment and tooling	3-10 years		117,294		128,428
Furniture and fixtures	3-10 years		3,331		3,190
Computer equipment	3-5 years		18,759		18,733
Computer software	3-10 years		19,509		20,146
Computer software implementation in process	N/A		4,318		8,563
Construction in process	N/A		790		5,760
Total			246,836		265,086
Less accumulated depreciation and amortization			(131,312)		(137,701)
Property and equipment, net		$	115,524	$	127,385

During fiscal 2017, 2018 and 2019, depreciation expense was approximately $56.0 million, $43.3 million and $20.5 million, respectively.

In January 2018, we entered into a two-year agreement with the Mexican government to continue to provide security screening services. Upon inception of the new contract, we transferred certain fixed assets with a net book value of $29.5 million to the customer, and this remaining cost to obtain the contract is amortized on a straight-line basis over the term of the contract as corresponding revenues are recognized. During fiscal 2018 and 2019, we recognized $6.9 million and $14.3 million, respectively, of amortization expense related to such assets. As of June 30, 2019, $7.7 million was included in Prepaid expenses and other current assets.

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2019

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by segment for fiscal 2018 and 2019 are as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2017	$	155,083	$	40,129	$	46,917	$	242,129
Goodwill acquired or adjusted during the period		36,889		—		13,986		50,875
Foreign currency translation adjustment		(162)		28		(657)		(791)
Balance as of June 30, 2018	$	191,810	$	40,157	$	60,246	$	292,213
Goodwill acquired or adjusted during the period		8,340		—		7,019		15,359
Foreign currency translation adjustment		(71)		(93)		(300)		(464)
Balance as of June 30, 2019	$	200,079	$	40,064	$	66,965	$	307,108

The measurement periods for the valuation of assets and liabilities acquired may extend up to one year. Adjustments in purchase price allocations may require a change in the amounts allocated to goodwill during the periods in which the adjustments are determined.

Intangible assets subject to amortization consisted of the following (amounts in thousands):


		June 30, 2018						June 30, 2019
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	9 years	$	28,174	$	(9,423)	$	18,751	$	29,393	$	(12,747)	$	16,646
Patents	19 years		8,401		(1,618)		6,783		8,688		(1,927)		6,761
Developed technology	10 years		52,780		(9,706)		43,074		53,460		(14,050)		39,410
Customer relationships/backlog	7 years		63,398		(17,891)		45,507		63,101		(22,132)		40,969
Total amortizable assets			152,753		(38,638)		114,115		154,642		(50,856)		103,786
Non-amortizable assets:
IPR&D			2,290		—		2,290		2,290		—		2,290
Trademarks			25,596		—		25,596		26,878		—		26,878
Total intangible assets		$	180,639	$	(38,638)	$	142,001	$	183,810	$	(50,856)	$	132,954

During fiscal 2018 , we recorded impairment charges related to intangible assets of $2.5 million due to changes in facts and circumstances associated with the shift in strategic direction which led us to conclude that the carrying value of the intangible assets was not recoverable. These intangible assets impairment charges were included in impairment, restructuring and other charges in our consolidated statement of operations.

Amortization expense for fiscal 2017, 2018 and 2019 was $12.3 million, $19.5 million and $21.4 million, respectively. Future acquisitions could cause these amounts to increase. At June 30, 2019, the estimated future amortization expense was as follows (in thousands):


2020	$	19,960
2021		18,825
2022		14,984
2023		13,904
2024		12,883
Thereafter, including assets that have not yet begun to be amortized		23,230
Total	$	103,786

Software development costs for software products incurred before establishing technological feasibility are charged to operations. Software development costs incurred after establishing technological feasibility are capitalized on a product by product basis until the product is available for general release to customers at which time amortization begins. Annual amortization, charged to cost of goods sold, is the amount computed using the ratio that current revenues for a product bear to the total current and anticipated future revenues for that product. In the event that future revenues are not estimable, such costs are amortized on a straight-line basis over the remaining estimated economic life of the product. Amortizable assets that have not yet begun to be amortized are included in Thereafter in the table above. During fiscal 2017, 2018 and 2019, we capitalized software development costs in the amounts of $2.3 million, $1.8 million and $2.7 million, respectively.

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

12 Months Ended

Jun. 30, 2019

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

6. IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

Impairment

During fiscal 2019, there were no impairment charges. During fiscal 2018, we impaired (i) a product line in our Security division that became redundant as a result of the ETD acquisition, (ii) two product lines in our Healthcare division, and (iii) certain trademarks in our Optoelectronics and Manufacturing division that are no longer used. As a result, $7.8 million of assets, including intangible and fixed assets, were written off as we determined that these assets had no value and were permanently impaired.

During fiscal 2017 we determined that certain idle assets related to our turnkey screening program in Mexico were permanently impaired. These costs included costs related to civil works for five sites that were relocated during the fourth quarter of fiscal 2017, whereby these civil works were determined to have no value; and civil works and equipment for other sites that were partially completed prior to the customer informing us that these sites would not be needed. The carrying value of these assets when they were impaired was $17.5 million. Also, during the year, two product lines in our Security division were abandoned, one of which was determined to be redundant with a similar product acquired as part of our acquisition of AS&E. As a result, $9.4 million of assets, including inventory and the intangible assets and fixed assets related to these products lines, were determined to be permanently impaired.

Restructuring and Other Charges

We endeavor to align our global capacity and infrastructure with demand by our customers as well as fully integrate acquisitions and thereby improve operational efficiency.

Acquisition and integration costs. During fiscal 2019, we incurred $1.3 million in costs for professional fees relating to acquisitions.

Facility consolidation / employee termination. During fiscal 2019, we incurred $2.0 million in costs associated with the consolidation of facilities in our Healthcare and Optoelectronics and Manufacturing divisions. Additionally, we incurred employee termination costs within our Security, Healthcare, and Optoelectronics and Manufacturing divisions of $0.1 million, $1.6 million, and $0.7 million, respectively, as part of operational efficiency initiatives.

Legal fees and settlement costs. During fiscal 2019, legal fees and settlement costs resulted in a net recovery of $1.9 million as a result of insurance reimbursements of certain legal costs .

The following table summarizes restructuring and other charges for the periods set forth below (in thousands):


	2017
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	810	$	—	$	—	$	4,877	$	5,687
Employee termination costs		8,256		1,760		631		—		10,647
Facility closures/consolidation		967		1,095		444		—		2,506
Other charges (reversals)		7		374		(70)		500		811
Total expense	$	10,040	$	3,229	$	1,005	$	5,377	$	19,651


		2018
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	—	$	1,541	$	1,541
Employee termination costs		1,485		16		610		—		2,111
Facility closures/consolidation		213		263		26		—		502
Legal and accrued settlement costs		—		19,364		—		3,650		23,014
Total expensed	$	1,698	$	19,643	$	636	$	5,191	$	27,168


	2019
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	287	$	1,021	$	1,308
Employee termination costs		132		1,629		687		—		2,448
Facility closures/consolidation		—		1,918		84		—		2,002
Legal and accrued settlement costs, net		—		—		—		(1,931)		(1,931)
Total expensed	$	132	$	3,547	$	1,058	$	(910)	$	3,827

The changes in the accrual for restructuring and other charges for fiscal 2018 and 2019 were as follows (in thousands):


							Legal
					Facility		Settlements
	Acquisition-		Employee		Closure/		and
	related		Termination		Consolidation		Related
	Costs		Costs		Cost		Costs		Total
Balance as of June 30, 2017	$	—	$	175	$	291	$	—	$	466
Restructuring and other charges		1,541		2,111		502		23,014		27,168
Payments and other adjustments		(1,541)		(1,449)		(394)		(8,949)		(12,333)
Balance as of June 30, 2018	$	—	$	837	$	399	$	14,065	$	15,301
Restructuring and other charges, net		1,308		2,448		2,002		(1,931)		3,827
Payments and other adjustments		(1,308)		(2,853)		(2,401)		(5,803)		(12,365)
Balance as of June 30, 2019	$	—	$	432	$	—	$	6,331	$	6,763

The following table summarizes the impairment, restructuring and other charges for fiscal 2017, 2018 and 2019 (in thousands):


	2017		2018		2019
Impairment of assets	$	27,047	$	7,795	$	—
Facility closure / consolidations		2,506		502		2,002
Employee termination costs		10,647		2,111		2,448
Legal fees, settlements and related costs, net		—		23,014		(1,931)
Acquisition-related costs		5,687		1,541		1,308
Other		811		—		—
Total impairment, restructuring and other charges	$	46,698	$	34,963	$	3,827

BORROWINGS AND DEBT

12 Months Ended

Jun. 30, 2019

BORROWINGS AND DEBT

BORROWINGS AND DEBT

7. BORROWINGS AND DEBT

Revolving Credit Facility

In April 2019, we entered into an amendment to our revolving credit facility, which, among other things, increased the aggregate committed amount available to us from $525 million to $535 million and extended the maturity date to April 2024. The credit facility includes a $300 million sub-limit for letters of credit. Under certain circumstances, we have the ability to increase the facility by the greater of $250 million or such amount as would not cause our secured leverage ratio to exceed a specified level. Borrowings under this facility bear interest at LIBOR plus a margin of 1.0% as of June 30, 2019, but this margin can range from 1.0% to 1.75% based on our consolidated net leverage ratio as defined in the credit facility. Letters of credit reduce the amount available to borrow by their face value. The unused portion of the facility bears a commitment fee of 0.10% as of June 30, 2019, but this fee can range from 0.10% to 0.25% based on our consolidated net leverage ratio as defined in the credit facility. Our borrowings under the credit agreement are guaranteed by certain of our U.S.-based subsidiaries and are secured by substantially all of our assets and substantially all the assets of certain of our subsidiaries. The agreement contains various representations and warranties, affirmative, negative and financial covenants and conditions of default. As of June 30, 2019, there was $88.0 million of borrowings outstanding under the revolving credit facility and $55.9 million outstanding under the letters of credit sub facility.The amount available to borrow under the credit facility as of June 30, 2019 was $391.1 million. Loan amounts under the revolving credit facility may be borrowed, repaid and re-borrowed during the term. Although the principal amount of each revolving loan is due and payable in full on the maturity date, we have the right to repay each revolving loan in whole or in part from time to time without penalty. It is our practice to routinely borrow and repay several times per year under this revolving facility. Therefore, borrowings under the credit facility are included in current liabilities. As of June 30, 2019, we are in compliance with all covenants under this credit facility.

1.25% Convertible Senior Notes Due 2022

In February 2017, we issued $287.5 million of the Notes in a private offering. The Notes are governed by an indenture dated February 22, 2017. The maturity for the payment of principal is September 1, 2022. The Notes bear interest at the rate of 1.25% and are payable in cash semiannually in arrears on each March 1 and September 1. The Notes are senior unsecured obligations and rank senior in right of payment to any of our indebtedness that is expressly subordinated in right of payment to the Notes; equal in right of payment to any of our unsecured indebtedness that is not so subordinated; effectively junior in right of payment to any of our secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally junior to all indebtedness and other liabilities (including trade payables) of our subsidiaries, as well as any of our existing and future indebtedness that may be guaranteed by our subsidiaries to the extent of such guarantees (including the guarantees of certain of our subsidiaries under our existing revolving credit facility).

The Notes are convertible prior to March 1, 2022 only upon specified events and during specified periods and are, thereafter convertible, at any time, in each case at an initial conversion rate of 9.3056 per $1,000 principal amount of the Notes, which is equal to an initial conversion price of approximately $107.46 per share or a 38.5% premium to our stock price at the time of the issuance. The conversion rate is subject to adjustment upon certain events. Upon conversion, the Notes may be settled, at our election, in shares of our common stock, cash or a combination of cash and shares of common stock. We have initially elected a combination settlement method to satisfy the conversion obligation, which allows us to settle the principal amount of the Notes in cash and to settle the excess conversion value, if any, in shares of common stock, as well as cash in lieu of fractional shares.

We may not redeem the Notes prior to March 6, 2020. Thereafter, we may redeem the Notes if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any period of 30 consecutive trading days. If we undergo a fundamental change, as defined in the indenture for the Notes, subject to certain conditions, holders of the Notes may require us to repurchase all or part of the Notes for cash at a price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date. The occurrence of a fundamental change will also result in the Notes becoming immediately convertible. Since the last reported sales price of our Common Stock did not exceed 130% of the conversion price for at least 20 trading days within any applicable period of 30 consecutive trading days during fiscal year 2019, the Notes are not yet convertible.

Pursuant to ASC 470-20, we allocated the $287.5 million gross proceeds of the Notes between liability and equity components. The initial $242.4 million liability component was determined based on the fair value of similar debt instruments excluding the conversion feature for similar terms and priced on the same day the Notes were issued. The initial $45.1 million equity component represents the debt discount and was calculated as the difference between the fair value of the debt and the gross proceeds of the Notes. Issuance costs of $7.7 million were allocated between debt ($6.5 million) and equity ($1.2 million) components with the portion allocated to the debt presented as an offset against long term debt in the consolidated balance sheet and being amortized as interest expense over the life of the Notes using the effective interest method. The total interest expense recognized for the fiscal year ended June 30, 2019 related to the Notes was $12.6 million, which consisted of $3.6 million of contractual interest expense, $7.8 million of debt discount amortization and $1.2 million of amortization of debt issuance costs. For fiscal year ended June 30, 2018, the total interest expense was $12.3 million, which consisted of $3.6 million of contractual interest expense, $7.5 million of debt discount amortization and $1.2 million of amortization of debt issuance costs. As of June 30, 2018 and 2019, the unamortized debt discount was $35.1 million and $27.3 million, respectively, which is being amortized over the remaining contractual term to maturity of the Notes using an effective interest rate of 4.50%. The unamortized debt issuance cost of $4.9 million and $3.7 million as of June 30, 2018 and 2019, respectively, is amortized on a straight-line basis, which approximates the effective interest method, over the life of the Notes.

Other Borrowings

Several of our foreign subsidiaries maintain bank lines-of-credit, denominated in local currencies and U.S. dollars, primarily for the issuance of letters-of-credit. As of June 30, 2019, $42.5 million was outstanding under these letter-of-credit facilities. As of June 30, 2019, the total amount available under these credit facilities was $24.0 million.

Long-term debt consisted of the following at June 30, 2018 and 2019 (in thousands):


	2018		2019
1.25% convertible notes due 2022:
Principal amount	$	287,500	$	287,500
Unamortized discount		(35,133)		(27,283)
Unamortized debt issuance costs		(4,897)		(3,722)
		247,470		256,495
Term loans		2,114		—
Other long-term debt		1,658		2,061
		251,242		258,556
Less current portion of long-term debt		(2,262)		(804)
Long-term portion of debt	$	248,980	$	257,752

Fiscal year principal payments of long-term debt as of June 30, 2019 are as follows (in thousands):


2020	$	819
2021		710
2022		446
2023		287,586
2024		—
Thereafter		—
Total	$	289,561

STOCK-BASED COMPENSATION

12 Months Ended

Jun. 30, 2019

STOCK-BASED COMPENSATION

STOCK-BASED COMPENSATION

8. STOCK-BASED COMPENSATION

As of June 30, 2019, we maintained the Amended and Restated 2012 Incentive Award Plan (the “2012 Plan”) and the Amended and Restated 2006 Equity Participation Plan (“2006 Plan”) as stock-based employee compensation plans. No further grants may be made under the 2006 Plan. In addition, pursuant to the acquisition of AS&E, we assumed two stock-based employee compensation plans: the AS&E 2005 Equity and Incentive Plan and the AS&E 2014 Equity and Incentive Plan (collectively the “AS&E Plans”). No new equity grants will be made under the AS&E Plans. The 2012 Plan, the 2006 Plan, and the AS&E Plans are collectively referred to as the “OSI Plans”.

We recorded stock-based-compensation expense in the consolidated statement of operations as follows (in thousands):


	2017		2018		2019
Cost of goods sold	$	1,443	$	972	$	732
Selling, general and administrative		21,354		22,293		23,876
Research and development		433		581		643
Restructuring		2,902		—		—
Stock based compensation expense	$	26,132	$	23,846	$	25,251

As of June 30, 2019, total unrecognized compensation cost related to share-based compensation grants under the OSI Plans were estimated at $0.5 million for stock options and $13.3 million for RSUs. We expect to recognize these costs over a weighted-average period of 1.8 years with respect to the stock options and 2.0 years for grants of RSUs.

Employee Stock Purchase Plan—We have an employee stock purchase plan under which eligible employees may purchase a limited number of shares of Common Stock at a discount of up to 15% of the market value of such stock at pre-determined, plan-defined dates. During the three years ended June 30, 2017, 2018 and 2019, employees purchased 71,314, 80,115 and 70,857 shares, respectively. As of June 30, 2019, there were 670,833 shares of our Common Stock available for issuance under the plan.

OSI Plans

In October 2017, our Board of Directors approved the 2012 Plan, and in December 2017, our stockholders adopted the 2012 Plan. Outstanding awards under the 2006 Plan continue to be subject to the terms and conditions of the 2006 Plan although no awards may be issued under the 2006 Plan.

Under the 2012 Plan, we are authorized to grant awards in the form of incentive options, nonqualified options, restricted stock awards, stock appreciation rights, RSUs, performance shares and stock bonuses, amongst other forms of equity, to qualified employees, directors and consultants.

Under the OSI Plans, the exercise price of nonqualified options and incentive stock options may not be less than the fair market value of our Common Stock on the date of grant. The exercise price of nonqualified options and incentive stock options granted to individuals who own more than 10% of our voting stock may not be less than 110% of the fair market value of our Common Stock on the date of grant. Stock options granted under the OSI Plans typically vest over three years based on continued service. Restricted stock and RSUs typically vest over three to four years based on continued service. Certain restricted stock awards granted to senior management vest based on the achievement of pre-established performance criteria.

Stock Option Fair Value Estimation Assumptions. We estimate the fair value of our stock options at the date of grant using the Black-Scholes option-pricing valuation model. Our valuation model is affected by our stock price as well as weighted average assumptions for a number of subjective variables described below.

Expected Dividend. Expected dividend is based on historical patterns and our anticipated dividend payments over the expected holding period.

Risk-Free Interest Rate. The risk-free interest rate for stock options is based on U.S. Treasuries for a maturity matching the expected holding period.

Expected Volatility. Expected volatility is based on our historical share price volatility matching the expected holding period. No single method of estimating volatility is proper under all circumstances and to the extent that a company can derive implied volatility based on the trading of its financial instruments on a public market, it may be appropriate to use both implied and historical volatility in its assumptions. We have certain financial instruments that are publicly traded from which we can derive the implied volatility. Therefore, we use implied and historical volatility for valuing our stock options. We believe that implied and historical volatility is a better indicator of expected volatility because it is generally reflective of both historical volatility and expectations of how future volatility will differ from historical volatility.

Expected Holding Period. We use historical stock option exercise data to estimate the expected holding period.

Changes in assumptions can materially impact the estimated fair value of stock options. The weighted average assumptions used in the valuation model are presented in the table below.


	2017		2018		2019
Expected dividend	—		—		—
Risk-free interest rate	1.7	%	1.9	%	2.6	%
Expected volatility	33.0	%	29.0	%	28.0	%
Expected holding period (in years)	4.5		4.5		4.5

The following summarizes stock option activity for fiscal years 2017, 2018 and 2019:


		Weighted-
		Average		Weighted-Average	Aggregate
	Number of	Exercise		Remaining Contractual	Intrinsic Value
	Options	Price		Term	(in thousands)
Outstanding at June 30, 2016	934,112		28.67
Granted	19,176		73.42
Exercised	(168,564)		26.68
Expired or forfeited	(4,053)		68.28
Outstanding at June 30, 2017	780,671	$	30.00
Granted	25,379		85.83
Exercised	(121,651)		23.53
Expired or forfeited	(6,874)		73.77
Outstanding at June 30, 2018	677,525	$	32.80
Granted	19,259		73.37
Exercised	(169,799)		32.11
Expired or forfeited	(11,101)		70.50
Outstanding at June 30, 2019	515,884	$	33.74	2.2 years	$	40,700
Exercisable at June 30, 2019	479,547	$	30.36	1.7 years	$	39,454

The per-share weighted-average grant-date fair value of stock options granted under the OSI Plans was $22.19, $23.64 and $20.45 for fiscal 2017, 2018 and 2019, respectively. The total intrinsic value of options exercised during fiscal 2019 was $9,169,000.

Restricted Stock Awards and Restricted Stock Units—A summary of restricted stock award and RSU activity for the periods indicated was as follows:


		Weighted-
		Average
	Shares	Fair Value
Nonvested at June 30, 2016	530,498	$	67.94
Granted	379,888		64.55
Vested	(299,277)		67.87
Net replacement RSUs (1)	20,953		67.76
Forfeited	(20,375)		68.34
Nonvested at June 30, 2017	611,687	$	65.85
Granted	351,034		74.09
Vested	(413,639)		65.33
Forfeited	(22,705)		70.32
Nonvested at June 30, 2018	526,377	$	71.56
Granted	375,580		74.40
Vested	(364,410)		70.92
Forfeited	(16,407)		74.13
Nonvested at June 30, 2019	521,140	$	73.97

(1)

Pursuant to the acquisition of AS&E, we assumed unvested RSUs originally granted by AS&E and converted them into RSUs for our Common Stock.

The per-share weighted average grant-date fair value of RSUs granted under the OSI Plans was $64.55, $74.09 and $74.40 for fiscal 2017, 2018 and 2019, respectively. The total fair value of shares vested during fiscal 2017, 2018 and 2019 was $23.2 million, $27.0 million and $25.8 million, respectively.

As of June 30, 2019, there were approximately 1.6 million shares available for grant under the 2012 Plan. Under the terms of the 2012 Plan, RSUs and restricted stock granted from the pool of shares available for grant reduce the pool by 1.87 shares for each award granted. RSUs and restricted stock forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each award forfeited.

We granted 156,836, 117,346 and 97,514 performance-based awards during fiscal 2017, 2018 and 2019, respectively. These performance-based RSU awards are contingent on the achievement of certain performance metrics. The payout related to these awards can range from zero to 280% of the original number of shares or units awarded.

INCOME TAXES

12 Months Ended

Jun. 30, 2019

INCOME TAXES

INCOME TAXES

9. INCOME TAXES

The following is a geographical breakdown of income before the provision for income taxes (in thousands):


	2017		2018		2019
Pre-tax income (loss):
United States	$	(39,686)	$	(40,335)	$	6,575
Foreign		65,437		77,189		79,589
Total pre-tax income	$	25,751	$	36,854	$	86,164

Our provision (benefit) for income taxes consists of the following (in thousands):


	2017		2018		2019
Current:
Federal	$	788	$	8,518	$	541
State		493		707		883
Foreign		27,616		30,643		28,480
Total current provision		28,897		39,868		29,904
Deferred:
Federal	$	(16,314)	$	35,957	$	(1,697)
State		(484)		338		1,214
Foreign		(7,424)		(10,182)		(8,053)
Total deferred provision (benefit)		(24,222)		26,113		(8,536)
Total provision	$	4,675	$	65,981	$	21,368

As of June 30, 2018 and 2019, our liability for uncertain tax positions was $4.4 million and $4.6 million, respectively. The $4.6 million represents the amount of unrecognized tax benefits that, if recognized, would affect the effective tax rate.

We recognize potential interest and penalties related to income tax matters in income tax expense. As of June 30, 2019, we had accrued $0.1 million for interest and penalties. Our uncertain tax positions are related to tax years that remain subject to examination by the relevant tax authorities. These include fiscal years after 2015 for federal purposes, fiscal years after 2014 for state purposes and fiscal years after 2007 for various foreign jurisdictions. Facts and circumstances could arise that could cause us to reduce the liability for unrecognized tax benefits, including, but not limited to, settlement of income tax positions or expiration of statutes of limitation. Since the ultimate resolution of uncertain tax positions depends on many factors and assumptions, we are not able to estimate the range of potential changes in the liability for unrecognized tax benefits or the timing of such changes.

A summary of activity of unrecognized tax benefits for fiscal 2018 and 2019 is as follows (in thousands).


Balance at June 30, 2017	$	11,195
Additions on tax positions for the current year		294
Additions on tax positions from prior years		14
Reduction in tax positions from prior year		(1,005)
Balance at June 30, 2018	$	10,498
Additions on tax positions for the current year		940
Additions on tax positions from prior years		346
Reduction in tax positions from prior year		(398)
Balance at June 30, 2019	$	11,386

Recent Tax Legislation

The Tax Cuts and Jobs Act (the “Tax Act”) enacted in 2017 resulted in the U.S. Federal income tax rate being reduced from 35% to 21% effective January 1, 2018. During the measurement period, which was one year from the date of enactment, or the completion of all estimates made in connection with the Tax Act, companies were permitted to make additional income tax adjustments and revisions of estimates related to the Tax Act. During the quarter ended December 31, 2018, we concluded our analysis of the impact of the Tax Act and made no adjustments to the provisional amounts previously recorded. While our accounting for the recorded impact of the Tax Act as of December 31, 2018 was deemed to be complete, this amount was based on prevailing regulations and available information as of December 31, 2018. Additional guidance issued by the Internal Revenue Service (IRS) and changes to State laws may continue to impact our recorded amounts after December 31, 2018.

The Tax Act subjects a U.S. corporation to tax on its GILTI (Global Intangible Low-Taxed Income), FDII (Foreign-Derived Tangible Income Taxes), and BEAT (Base Erosion Anti-abuse Tax). We included the impact of these taxes in our effective tax rate. Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. In fiscal 2019, we made the accounting policy election to recognize GILTI as a period expense.

Deferred income tax assets (liabilities) consisted of the following (in thousands):


	June 30,
	2018		2019
Deferred income tax assets:
Tax credit carryforwards	$	17,591	$	14,785
Net operating loss carryforwards		10,473		9,331
Customer advances		2,360		3,365
Allowance for doubtful accounts		4,336		4,287
Inventory reserve		11,735		11,503
Inventory capitalization		3,043		2,721
Accrued liabilities		9,174		5,953
Stock and deferred compensation		15,779		12,737
Other assets		3,641		3,157
Total deferred income tax assets		78,132		67,839
Valuation allowance		(27,007)		(23,377)
Net deferred income tax assets		51,125		44,462
Deferred income tax liabilities:
Depreciation		(6,322)		(4,866)
Amortization of intangible assets		(31,993)		(26,056)
Withholding tax on unrepatriated foreign earnings		(5,114)		(5,114)
State transition tax		(1,754)		(1,754)
Convertible debt		(9,198)		(6,443)
Prepaid expenses		(8,680)		(3,903)
Other liabilities		(459)		(308)
Total deferred income tax liabilities		(63,520)		(48,444)
Net deferred income tax liability	$	(12,395)	$	(3,982)

The components of the net deferred income tax asset are classified in the consolidated balance sheets as follows (in thousands):


	2018		2019
Long term deferred income tax asset, included in other assets		2,607		3,997
Long term deferred income tax liability		(15,002)		(7,979)
Net deferred income tax liability	$	(12,395)	$	(3,982)

The components of current taxes receivable and payable and prepaid taxes are classified in the consolidated balance sheets as follows (in thousands):


	2018		2019
Current taxes receivable and prepaid taxes, included in prepaid expenses and other current assets	$	5,172	$	4,344
Current taxes payable, included in other accrued expenses and current liabilities		(8,314)		(3,094)
Net tax receivable (payable)	$	(3,142)	$	1,250

As of June 30, 2019, we had state and foreign net operating loss carryforwards of approximately $34.1 million and $30.9 million, respectively. As of June 30, 2019, we had federal and state research and development tax credit carryforwards of approximately $15.0 million and $4.7 million, respectively. Our credit carryforwards will begin to expire in the tax year ending June 30, 2025.

We have established valuation allowances that relate to the net operating loss of certain subsidiaries, capital losses, and tax credits. During the year ended June 30, 2019, we recorded a net aggregated decrease of $3.6 million to these valuation allowances. We review the adequacy of individual valuation allowances and release such allowances when it is determined that it is more likely than not that the related benefits will be realized.

We recognized all excess tax benefits and tax deficiencies as income tax expense or benefit in the current year. An income tax benefit of approximately $3.7 million and $3.1 million was recognized in fiscal 2018 and 2019, respectively.

The consolidated effective income tax rate differs from the federal statutory income tax rate due primarily to the following:


	June 30,
	2017		2018		2019
Provision for income taxes at federal statutory rate	35.0	%	28.1	%	21.0	%
Research and development tax credits	(2.5)		(1.4)		(1.6)
Foreign income subject to tax at other than federal statutory rate	(20.0)		(4.8)		2.9
Stock compensation excess tax benefit	(9.5)		(8.8)		(3.2)
Officers’ compensation	—		—		3.5
Change in valuation allowance	10.4		19.6		(1.8)
Unrecognized tax (benefit) expense	(1.4)		(6.8)		0.1
Meals and entertainment	1.8		1.5		0.4
Tax on foreign currency gains and losses	9.1		(0.1)		0.2
State tax expense	(1.5)		(1.3)		1.6
U.S. tax on foreign earnings	0.4		2.5		1.0
Non-taxable gain from sale of business	(3.6)		—		—
Mexico imputed income or expense	(2.0)		(3.5)		(0.5)
Remeasurement of U.S. net deferred tax assets from 35% to 21%	—		16.0		—
Deemed repatriation of non-U.S. earnings	—		102.2		—
Withholding tax on deemed repatriation foreign earnings	—		35.8		—
Other	1.9		—		1.2
Effective income tax rate	18.1	%	179.0	%	24.8	%

The provision for income taxes consists of provisions for federal, state, and foreign income taxes. We operate in an international environment with significant operations in various locations outside the U.S. Accordingly, the consolidated income tax rate is a composite rate reflecting the earnings in the various locations and the applicable rates.

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2019

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

10. COMMITMENTS AND CONTINGENCIES

The following is a summary of commitments as of June 30, 2019 (in thousands):


	Payments Due by Period
			Less than						After
	Total		1 year		1-3 years		3-5 years		5 years
Total debt	$	377,561	$	88,819	$	1,156	$	287,586	$	—
Operating leases		34,291		9,802		13,555		6,351		4,583
Purchase obligations		58,793		55,203		3,570		16		4
Acquisition-related obligations		16,577		5,080		8,045		2,618		834
Defined benefit plan obligation		11,973		122		273		5,962		5,616
Total contractual obligations	$	499,195	$	159,026	$	26,599	$	302,533	$	11,037
Other Commercial Commitments—letters of credit	$	98,428	$	50,266	$	24,295	$	2,280	$	21,587

Operating Leases—We lease facilities and certain equipment under various operating lease agreements. Certain leases provide for periodic rent increases and may contain escalation clauses and renewal options. Rent expense totaled $10.2 million, $9.4 million and $10.0 million for fiscal years 2017, 2018 and 2019, respectively. The future cash payments for operating leases in the table above are presented on an undiscounted basis.

Contingent Acquisition Obligations— Under the terms and conditions of the purchase agreements associated with certain acquisitions, we may be obligated to make additional payments based on the achievement of certain sales or profitability milestones through the acquired operations. For agreements that contain contingent consideration caps, the remaining maximum amount of such potential future payments is $28.2 million as of June 30, 2019.

We account for such contingent payments for acquisitions which occurred through the end of fiscal year 2009 as additions to the purchase price of the acquired business; and we made $1.9 million of such payments during the year ended June 30, 2019.

For acquisitions completed after fiscal 2009, pursuant to Financial Accounting Standard 141R, which was codified into ASC 805, the estimated fair value of these obligations is recorded as a liability at the time of the acquisition with subsequent revisions recorded in Selling, general and administrative expense in the consolidated financial statements. The estimated fair value measurements of contingent earn-out obligations are primarily based on unobservable inputs, which may include projected revenues, gross margins, operating income, and the estimated probability of achieving the earn-outs.

These projections and probabilities are used to estimate future contingent earnout payments, which are discounted back to present value to compute contingent earnout liabilities. The following table provides a roll-forward from June 30, 2018 to June 30, 2019 of the contingent consideration liability, which is included in other accrued expenses and current liabilities, and other long-term liabilities in our consolidated balance sheets (in thousands):


Beginning fair value, June 30, 2018	$	15,713
Additions		5,173
Change in fair value		(418)
Payments on contingent earn-out obligations		(3,891)
Ending fair value, June 30, 2019	$	16,577

Advances from Customers—We receive advances from customers associated with certain contracts. These advances are paid in cash by customers, and we account for these as liabilities until our contractual obligations are complete.

Environmental Contingencies—We are subject to various environmental laws. Our practice is to conduct appropriate environmental investigations at our manufacturing facilities in North America, Asia-Pacific, and Europe, and, to the extent practicable, on all new properties in order to identify, as of the date of such investigation, potential areas of environmental concern related to past and present activities or from nearby operations. In certain cases, we have conducted further environmental assessments consisting of soil and groundwater testing and other investigations deemed appropriate by independent environmental consultants.

We continue to investigate contamination of the soil and groundwater beneath the Hawthorne, California facility that resulted from unspecified on- and off-site releases occurring prior to our occupancy. We believe the releases are of a historical nature and not uncommon to the region in general. We continue to take voluntary actions, in cooperation with the local governing agency, to fully investigate the site in order to develop appropriate remedial actions.

We have not accrued for loss contingencies relating to the Hawthorne facility or any other environmental matters because we believe that, although unfavorable outcomes may be possible, they are not considered by our management to be probable and reasonably estimable. If one or more of these environmental matters are resolved in a manner adverse to us, the impact on our business, financial condition, results of operations and cash flow could be material.

Indemnifications and Certain Employment-Related Contingencies — In the normal course of business, we have agreed to indemnify certain parties with respect to certain matters. We have agreed to hold certain parties harmless against losses arising from a breach of representations, warranties or covenants, or intellectual property infringement or other claims made by third parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. In addition, we have entered into indemnification agreements with our directors and certain of our officers. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. We have not recorded any liability for costs related to contingent indemnification obligations as of June 30, 2019.

On December 31, 2017, we and Deepak Chopra, our Chief Executive Officer, entered into an amendment to Mr. Chopra's employment agreement that, among other things, provides for a $13.5 million bonus payment to Mr. Chopra on or within 45 days of January 1, 2024 contingent upon Mr. Chopra's continued employment with us through that date, subject to accelerated payout terms in the event of Mr. Chopra's death or disability after January 1, 2019. The bonus is recorded in the financial statements over the remaining term of the employment agreement and is included in other long-term liabilities.

Legal Proceedings- In December 2017, a short seller released a report regarding our compliance with the FCPA. Following that report, we and certain of our executive officers have been named as defendants in several lawsuits in the District Court that were filed in December 2017 and February 2018. Each of the complaints closely tracks the allegations set forth in the short seller's report. All of the actions, which were consolidated by the District Court in March 2018 in an action captioned Arkansas Teacher Retirement System et al. v. OSI Systems, Inc. et al., No. 17 cv 08841, allege violations of Sections 10(b) and 20(a) of the Exchange Act, relating to certain of our public statements and filings with the SEC, and seek damages and other relief based upon the allegations in the complaints. In April and May 2018, two shareholder derivative complaints were filed purportedly on behalf of the Company against the current members of our Board of Directors (as individual defendants), a former member of our Board of Directors, and certain members of management. The first, captioned Riley v. Chopra et al., No. 18 cv 03371, was filed in the District Court, and the second, captioned Genesee County Employees' Retirement System v. Chopra, et al., No. BC705958, was filed in the Superior Court of the State of California, County of Los Angeles. In March 2019, a third shareholder derivative complaint captioned Kocen v. Chopra et al., No. 19 cv 01741 was filed in the District Court purportedly on behalf of the Company against the current members of our Board of Directors (as individual defendants) and one former member of our Board of Directors. The complaints allege, among other things, breach of fiduciary duties relating to the allegations contained in the above-mentioned short seller report. The complaints seek damages, restitution, injunctive relief, attorneys' and experts' fees, costs, expenses, and other unspecified relief. In May 2019, the Genesee Matter was dismissed with prejudice. We believe that the remaining actions are without merit and intend to defend them vigorously, and we expect to incur costs associated with defending against these actions. At this early stage of the litigations, the ultimate outcomes are uncertain and we cannot reasonably predict the timing or outcomes, or estimate the amount of loss, if any, or their effect, if any, on our financial statements.

Following the short seller report, both the SEC and the DOJ commenced investigations into our compliance with the FCPA. We were notified of closure of the inquiries by the DOJ in May 2019 and by the SEC in June 2019, and no action was taken by either agency. In an unrelated matter, the SEC and DOJ are also conducting an investigation of trading in our securities and have each subpoenaed information regarding trading by executives, directors, and employees, as well as our operations and disclosures in and around the time of certain trades. With respect to these trading related matters, we took action in fiscal year 2018 with respect to a senior level employee. At this time, we are unable to predict what, if any, action may be taken by the DOJ or SEC as a result of these trading related investigations, or any penalties or remedial measures these agencies may seek. We place a high priority on compliance with our anti-corruption and securities trading policies and are cooperating with each of the government investigations.

We are involved in various other claims and legal proceedings arising in the ordinary course of business. In our opinion after consultation with legal counsel, the ultimate disposition of such proceedings is not likely to have a material adverse effect on our business, financial condition, results of operations or cash flows. We have not accrued for loss contingencies relating to any such matters because we believe that, although unfavorable outcomes in the proceedings are possible, they are not considered by management to be probable and reasonably estimable. If one or more of these matters are resolved in a manner adverse to our company, the impact on our business, financial condition, results of operations and cash flows could be material.

RELATED-PARTY TRANSACTIONS	12 Months Ended
RELATED-PARTY TRANSACTIONS	Jun. 30, 2019
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	12. RELATED-PARTY TRANSACTIONS In 1994, we, together with an unrelated company, formed ECIL-Rapiscan Security Products Limited, a joint venture organized under the laws of India. We own a 36% interest in the joint venture, our Chairman and Chief Executive Officer owns a 10.5% interest, and our Executive Vice President and Director owns a 4.5% ownership interest. Our initial investment was approximately $0.1 million. For each of the years ended June 30, 2017, 2018 and 2019 our equity earnings in the joint venture were less than $0.1 million. We, our Chairman and Chief Executive Officer and our Executive Vice President and Director collectively control less than 50% of the board of directors voting power in the joint venture. As a result, we account for the investment under the equity method of accounting. The joint venture was formed for the purpose of the manufacture, assembly, service and testing of security and inspection systems and other products. Some of our subsidiaries are suppliers to the joint venture partner, which in turn manufactures and sells the resulting products. Sales to the joint venture partner for fiscal 2017, 2018 and 2019 were approximately $10.2 million, $4.6 million and $4.0 million, respectively. Receivables from the joint venture were $1.9 million and $1.1 million as of June 30, 2018 and 2019, respectively.

EMPLOYEE BENEFIT PLANS

12 Months Ended

Jun. 30, 2019

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

13. EMPLOYEE BENEFIT PLANS

Employee Retirement Savings Plans

We have various qualified employee retirement savings plans. Participants can contribute certain amounts to the plans and we match a certain portion of employee contributions. We contributed approximately $5.0 million, $6.3 million and $6.4 million to the plans for the fiscal years ended June 30, 2017, 2018 and 2019, respectively.

Deferred Compensation Plan

We have a deferred compensation plan, which meets the requirements for deferred compensation under Section 409A of the Internal Revenue Code. The plan provides that selected employees are eligible to defer up to 80% of their salaries and up to 100% of their bonuses. We may also make employer contributions to participant accounts in certain circumstances. The benefits under this plan are unsecured. Participants are generally eligible to receive payment of their vested benefit at the end of their elected deferral period or after termination of their employment for any reason or at a later date to comply with the restrictions of Section 409A. Discretionary company contributions and the related earnings are subject to a vesting schedule dependent upon years of service to us and, also, vest completely upon the participant’s disability or death while employed by us or immediately prior to a change of control. We made contributions of $0.6 million, $0.5 million and $0.5 million during fiscal year 2017, 2018 and 2019, respectively. As of June 30, 2019, we held assets of $25.3 million and liabilities of $24.9 million related to this plan. Assets related to this plan are included in other assets and liabilities related to this plan are included in other long-term liabilities in the consolidated balance sheets. The plan liabilities include accrued employer contributions not yet funded to the plan.

Employee Pension Plans

We sponsor a number of qualified and nonqualified pension plans for our employees at certain locations. In accordance with accounting standards for employee pension and postretirement benefits, we fully recognize the overfunded or underfunded status of each of our defined benefit plans as an asset or liability in the consolidated balance sheets. The asset or liability equals the difference between the fair value of the plans’ assets and their benefit obligations. The liabilities associated with underfunded plans are classified as noncurrent, except to the extent the fair value of the plans’ assets is less than the plans’ estimated benefit payments over the next 12 months. We measure our pension and postretirement benefit plans’ assets and benefit obligations as of June 30.

The following provides a reconciliation of the changes in the plans’ benefit obligations and fair value of assets for fiscal years 2018 and 2019, and a statement of the funded status as of June 30, 2018 and 2019 (in thousands):


	2018		2019
Change in Benefit Obligation
Benefit obligation at beginning of year	$	13,726	$	13,780
Translation adjustment		57		(166)
Interest costs		467		457
Service costs		—		223
Curtailment		(369)		—
Actuarial (gain) loss		61		(82)
Benefits paid		(162)		(153)
Benefit obligation at end of year		13,780		14,059
Change in Plan Assets
Fair value of plan assets at beginning of year		5,555		5,870
Translation adjustment		43		(183)
Actual return on plan assets		388		201
Benefits paid		(116)		(107)
Fair value of plan assets at end of year		5,870		5,781
Funded status and net amount recognized	$	(7,910)	$	(8,278)
Amount recognized in consolidated balance sheets consists of:
Investments	$	1,065	$	1,034
Accrued pension liability		(8,975)		(9,312)
Accumulated other comprehensive income		1,202		1,019

The following table provides the net periodic benefit costs for the fiscal years ended June 30, (in thousands):


	2017		2018		2019
Net Periodic Benefit Costs
Interest costs	$	453	$	467	$	457
Service costs		—		—		223
Expected return on plan assets		(200)		(203)		(270)
Amortization of prior service costs		279		249		56
Recognized actuarial loss		317		305		103
Net periodic benefit cost	$	849	$	818	$	569

Plan Assumptions


	2018		2019
Weighted average assumptions at year-end:
Discount rate	3.4	%	3.2	%
Expected return on plan assets	4.7	%	4.4	%
Rate of compensation increase	3.0	%	2.9	%

The long term return on assets has been derived from the weighted average of assumed returns on each of the major asset categories. The weighted average is based on the actual proportion of each major asset class held, rather than a benchmark portfolio of assets. The expected returns for each major asset class have been derived from a combination of both historical market returns and current market data as well as the views of a range of investment managers.

Plan Assets and Investment Policy


	Fiscal year ended				Fiscal year ended
	June 30, 2018				June 30, 2019
	Proportion of		Expected Rate		Proportion of		Expected Rate
	Fair Value		of Return		Fair Value		of Return
Equity securities	83	%	6	%	82	%	5	%
Debt securities	17	%	1	%	17	%	1	%
Cash	—	%	—	%	1	%	—	%
Combined	100	%	4.7	%	100	%	4.4	%

The defined benefit plans’ assets are invested in a range of pooled investment funds that provide access to a diverse range of asset classes. The investment objective is to maximize the investment return over the long term without exposing the fund to an unnecessary level of risk. Within this objective, it is recognized that benefits will be secured by the purchase of annuities at the time of employee retirement.

The benchmark is to hold assets in both equity and debt securities. The proportion in each investment class is not mandated and is allowed to fluctuate with market movements. The equity holdings are maintained in balanced funds under the control of investment managers.

Day-to-day equities selection decisions are delegated to investment managers, although these are monitored against performance and risk targets. Due to the nature of the pooled funds, there are no significant holdings in any single company (greater than 5% of the total assets). The investment strategy is reviewed on a regular basis, based on the results of third-party liability studies.

Projected Benefit Payments

The following table reflects estimated benefits payments, based upon the same assumptions used to measure the benefit obligation and net pension cost, as of June 30, 2019 (in thousands):


		Pension Benefits
July 1, 2019 to June 30, 2020		122
July 1, 2020 to June 30, 2021		135
July 1, 2021 to June 30, 2022		138
July 1, 2022 to June 30, 2023		159
July 1, 2023 to June 30, 2024		5,803
July 1, 2024 to June 30, 2029		5,616

Company Contribution

As of June 30, 2019, our weighted average contribution rate is under 1% of pensionable salaries. No company contributions are expected for fiscal 2020.

SEGMENT INFORMATION

12 Months Ended

Jun. 30, 2019

SEGMENT INFORMATION

SEGMENT INFORMATION

14. SEGMENT INFORMATION

We have determined that we operate in three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and diagnostic cardiology systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). We also have a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses; expenses related to stock issuances and legal, audit and other professional service fees not allocated to industry segments. Both the Security and Healthcare divisions comprise primarily end-product businesses whereas the Optoelectronics and Manufacturing division primarily supplies components and subsystems to external OEM customers, as well as to the Security and Healthcare divisions. Sales between divisions are at transfer prices that approximate market values. All other accounting policies of the segments are the same as described in Note 1, Summary of Significant Accounting Policies.

The following tables present the operations and identifiable assets by industry segment (in thousands):


	2017
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Eliminations		Consolidated
Revenues:
External customer revenue	$	555,197	$	200,034	$	205,720	$	—	$	—	$	960,951
Revenue between product segments		—		—		30,380		—		(30,380)		—
Total revenues	$	555,197	$	200,034	$	236,100	$	—		(30,380)	$	960,951
Income (loss) from operations	$	35,256	$	2,624	$	23,792	$	(29,359)	$	979	$	33,292
Segments assets	$	785,230	$	186,021	$	196,567	$	64,959	$	(2,690)	$	1,230,087
Capital expenditures	$	10,436	$	1,797	$	2,856	$	2,007	$	—	$	17,096
Depreciation and amortization	$	53,924	$	6,495	$	6,561	$	1,255	$	—	$	68,235


	2018
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Eliminations		Consolidated
Revenues:
External customer revenue	$	690,001	$	189,387	$	209,898	$	—	$	—	$	1,089,286
Revenue between product segments		—		—		44,587		—		(44,587)		—
Total revenues	$	690,001	$	189,387	$	254,485	$	—		(44,587)	$	1,089,286
Income (loss) from operations	$	84,106	$	(14,609)	$	22,024	$	(35,030)	$	(583)	$	55,908
Segments assets	$	804,527	$	167,611	$	220,373	$	66,453	$	(3,273)	$	1,255,691
Capital expenditures	$	14,479	$	1,540	$	3,286	$	23,893	$	—	$	43,198
Depreciation and amortization	$	55,630	$	4,910	$	7,766	$	1,448	$	—	$	69,754


	2019
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Eliminations		Consolidated
Revenues:
External customer revenue	$	747,550	$	188,477	$	246,088	$	—	$	—	$	1,182,115
Revenue between product segments		—		—		42,542		—		(42,542)		—
Total revenues	$	747,550	$	188,477	$	288,630	$	—		(42,542)	$	1,182,115
Income (loss) from operations	$	97,426	$	12,277	$	29,519	$	(30,598)	$	(850)	$	107,774
Segments assets	$	793,810	$	157,639	$	237,851	$	79,498	$	(3,934)	$	1,264,864
Capital expenditures	$	15,830	$	1,372	$	4,760	$	5,450	$	—	$	27,412
Depreciation and amortization	$	39,788	$	5,426	$	9,269	$	1,751	$	—	$	56,234

The following tables present the revenues and identifiable assets by geographical area (in thousands):


	2017
	External		Intersegment		Total		Long lived		Long lived
	revenues		revenues		Consolidated		tangible assets		assets
Geographic region:
United States	$	478,791	$	5,339	$	484,130	$	65,046	$	380,200
Mexico		119,910		—		119,910		63,914		63,914
Other Americas		14,886		—		14,886		4,294		6,127
Total Americas		613,587		5,339		618,926		133,254		450,241
United Kingdom		185,803		542		186,345		23,396		61,319
Other Europe, Middle East and Africa		33,202		—		33,202		10,451		13,868
Total EMEA		219,005		542		219,547		33,847		75,187
Asia-Pacific		128,359		24,499		152,858		14,509		16,762
Eliminations		—		(30,380)		(30,380)		N/A		N/A
Total	$	960,951	$	—	$	960,951	$	181,610	$	542,190


	2018
	External		Intersegment		Total		Long lived		Long lived
	revenues		revenues		Consolidated		tangible assets		assets
Geographic region:
United States	$	552,677	$	9,221	$	561,898	$	103,582	$	457,516
Mexico		106,472		—		106,472		12,143		12,143
Other Americas		25,060		—		25,060		4,027		29,491
Total Americas		684,209		9,221		693,430		119,752		499,150
United Kingdom		231,909		162		232,071		21,916		71,126
Other Europe, Middle East and Africa		25,694		—		25,694		9,993		13,458
Total EMEA		257,603		162		257,765		31,909		84,584
Asia-Pacific		147,474		35,204		182,678		16,512		18,653
Eliminations		—		(44,587)		(44,587)		N/A		N/A
Total	$	1,089,286	$	—	$	1,089,286	$	168,173	$	602,387


	2019
	External		Intersegment		Total		Long lived		Long lived
	revenues		revenues		Consolidated		tangible assets		assets
Geographic region:
United States	$	565,316	$	10,107	$	575,423	$	117,414	$	476,314
Mexico		71,225		—		71,225		436		436
Other Americas		45,804		—		45,804		3,178		27,039
Total Americas		682,345		10,107		692,452		121,028		503,789
United Kingdom		292,297		214		292,511		30,282		80,896
Other Europe, Middle East and Africa		30,484		—		30,484		8,833		12,237
Total EMEA		322,781		214		322,995		39,115		93,133
Asia-Pacific		176,989		32,221		209,210		19,763		23,046
Eliminations		—		(42,542)		(42,542)		N/A		N/A
Total	$	1,182,115	$	—	$	1,182,115	$	179,906	$	619,968

Pursuant to Accounting Standards Codification 280 “Segment Reporting,” external revenues are attributed to individual countries based upon the location of our selling entity.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

12 Months Ended

Jun. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of Business

Consolidation

Use of Estimates

Cash Equivalents

Cash Equivalents —We consider all highly liquid investments with maturities of three months or less as of the acquisition date to be cash equivalents.

Accounts Receivable

Components of accounts receivable consisted of (in thousands):


	June 30,
	2018		2019
Accounts receivables	$	221,240	$	253,504
Less allowance for doubtful accounts		(10,496)		(15,064)
Total	$	210,744	$	238,440

Inventories

Property and Equipment

Goodwill and Other Intangible Assets and Valuation of Long-Lived Assets

Income Taxes

Fair Value of Financial Instruments


	June 30, 2018								June 30, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Insurance company contracts	$	—	$	31,897	$	—	$	31,897	$	—	$	35,899	$	—	$	35,899
Interest rate contract		—		18		—		18		—		—		—		—
Total assets	$	—	$	31,915	$	—	$	31,915	$	—	$	35,899	$	—	$	35,899
Liabilities—Contingent consideration	$	—	$	—	$	15,713	$	15,713	$	—	$	—	$	16,577	$	16,577

Revenue Recognition

Statement of Operations (in thousands)


	Year Ended June 30, 2019
			Results without
	Results as Reported		Adoption of ASC 606		Effect of Change
Revenue	$	1,182,115	$	1,149,209	$	32,906
Cost of goods sold		751,521		734,322		17,199
Operating expenses		322,820		309,824		12,996
Income from operations		107,774		105,063		2,711
Interest and other expense, net		(21,610)		(21,610)		—
Income tax provision		(21,368)		(20,943)		(425)
Net income	$	64,796	$	62,510	$	2,286

Balance Sheet (in thousands)


	June 30, 2019
			Balances without
	Balances as Reported		Adoption of ASC 606		Effect of Change
Assets
Accounts receivable, net	$	238,440	$	218,941	$	19,499
Inventories		273,711		290,980		(17,269)
Other assets		752,713		753,138		(425)
Liabilities
Current liabilities		382,008		382,489		(481)
Other liabilities		331,129		331,129		—
Stockholders’ Equity
Retained earnings		399,541		397,255		2,286

Contract Assets (in thousands)


	June 30,		June 30,
	2018		2019		Change		% Change
Unbilled revenue	$	1,617	$	19,287	$	17,670	>100	%

Contract Liabilities (in thousands)


	June 30, 2018		June 30, 2019		Change		% Change
Advances from customers	$	55,761	$	43,227	$	(12,534)	(22)	%
Deferred revenue—current		28,899		33,641		4,742	16	%
Deferred revenue—long-term		9,562		9,506		(56)	(1)	%

Freight

Freight —We record shipping and handling fees that we charge to our customers as revenue and related costs as cost of goods sold.

Research and Development Costs

Stock-Based Compensation

Impairment, Restructuring and Other Charges

Credit Risk and Concentration

Foreign Currency Translation and Transactions

Business Combinations

Earnings per Share

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):


	2017		2018		2019
Net income (loss) available to common stockholders	$	21,076	$	(29,127)	$	64,796
Weighted average shares outstanding—basic		18,894		18,592		18,097
Dilutive effect of equity awards		795		—		623
Weighted average shares outstanding—diluted		19,689		18,592		18,720
Basic earnings (loss) per share	$	1.12	$	(1.57)	$	3.58
Diluted earnings (loss) per share	$	1.07	$	(1.57)	$	3.46
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect		87		1,280		40

Warranty Provision


Warranty provision as of June 30, 2016	$	15,948
Warranty claims provided for/assumed in acquisition		5,793
Settlements made		(6,563)
Warranty provision as of June 30, 2017	$	15,178
Warranty claims provided for/assumed in acquisition		14,156
Settlements made		(7,515)
Warranty provision as of June 30, 2018	$	21,819
Warranty claims provided for/assumed in acquisition		8,867
Settlements made		(8,962)
Warranty provision as of June 30, 2019	$	21,724

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted

Recent Accounting Guidance

Recently Adopted Accounting Pronouncements

Revenue

As discussed above, we adopted ASC 606 on July 1, 2018 using the modified retrospective method, whereby the adoption does not impact any prior periods.

Statement of Cash Flows

Income Taxes

Recently Issued Accounting Pronouncements Not Yet Adopted

Leases

Retirement Benefit Plans

Intangibles

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Jun. 30, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Components of accounts receivable

Components of accounts receivable consisted of (in thousands):


	June 30,
	2018		2019
Accounts receivables	$	221,240	$	253,504
Less allowance for doubtful accounts		(10,496)		(15,064)
Total	$	210,744	$	238,440

Summary of fair values of financial assets and liabilities

The fair values of our financial assets and liabilities as of June 30, 2018 and 2019 are categorized as follows (in thousands):


	June 30, 2018								June 30, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Insurance company contracts	$	—	$	31,897	$	—	$	31,897	$	—	$	35,899	$	—	$	35,899
Interest rate contract		—		18		—		18		—		—		—		—
Total assets	$	—	$	31,915	$	—	$	31,915	$	—	$	35,899	$	—	$	35,899
Liabilities—Contingent consideration	$	—	$	—	$	15,713	$	15,713	$	—	$	—	$	16,577	$	16,577

Schedule of impact to condensed consolidated statements of operations and balance sheet

Statement of Operations (in thousands)


	Year Ended June 30, 2019
			Results without
	Results as Reported		Adoption of ASC 606		Effect of Change
Revenue	$	1,182,115	$	1,149,209	$	32,906
Cost of goods sold		751,521		734,322		17,199
Operating expenses		322,820		309,824		12,996
Income from operations		107,774		105,063		2,711
Interest and other expense, net		(21,610)		(21,610)		—
Income tax provision		(21,368)		(20,943)		(425)
Net income	$	64,796	$	62,510	$	2,286

Balance Sheet (in thousands)


	June 30, 2019
			Balances without
	Balances as Reported		Adoption of ASC 606		Effect of Change
Assets
Accounts receivable, net	$	238,440	$	218,941	$	19,499
Inventories		273,711		290,980		(17,269)
Other assets		752,713		753,138		(425)
Liabilities
Current liabilities		382,008		382,489		(481)
Other liabilities		331,129		331,129		—
Stockholders’ Equity
Retained earnings		399,541		397,255		2,286

Schedule of contract assets and contract liabilities

Contract Assets (in thousands)


	June 30,		June 30,
	2018		2019		Change		% Change
Unbilled revenue	$	1,617	$	19,287	$	17,670	>100	%

Contract Liabilities (in thousands)


	June 30, 2018		June 30, 2019		Change		% Change
Advances from customers	$	55,761	$	43,227	$	(12,534)	(22)	%
Deferred revenue—current		28,899		33,641		4,742	16	%
Deferred revenue—long-term		9,562		9,506		(56)	(1)	%

Schedule of computation of basic and diluted earnings (loss) per share

The following table sets forth the computation of basic and diluted earnings (loss) per share (in thousands, except per share amounts):


	2017		2018		2019
Net income (loss) available to common stockholders	$	21,076	$	(29,127)	$	64,796
Weighted average shares outstanding—basic		18,894		18,592		18,097
Dilutive effect of equity awards		795		—		623
Weighted average shares outstanding—diluted		19,689		18,592		18,720
Basic earnings (loss) per share	$	1.12	$	(1.57)	$	3.58
Diluted earnings (loss) per share	$	1.07	$	(1.57)	$	3.46
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect		87		1,280		40

Schedule of changes in warranty provisions

The warranty provision is included in other accrued expenses and current liabilities in the consolidated balance sheets, whose activity for each of the three fiscal years ended June 30, 2019 is summarized in the following table (in thousands):


Warranty provision as of June 30, 2016	$	15,948
Warranty claims provided for/assumed in acquisition		5,793
Settlements made		(6,563)
Warranty provision as of June 30, 2017	$	15,178
Warranty claims provided for/assumed in acquisition		14,156
Settlements made		(7,515)
Warranty provision as of June 30, 2018	$	21,819
Warranty claims provided for/assumed in acquisition		8,867
Settlements made		(8,962)
Warranty provision as of June 30, 2019	$	21,724

Business Combinations (Tables)

12 Months Ended

Jun. 30, 2019

ETD

ACQUISITION ACTIVITY

Schedule of assets acquired and liabilities assumed

The major classes of assets and liabilities, reconciled to total purchase consideration (in thousands):


Cash and cash equivalents	$	4
Accounts receivable, net		15,517
Inventories		11,678
Property and equipment		1,599
Intangible assets		30,370
Deferred tax asset		2,738
Other long-term assets		297
Accounts payable		(4,784)
Accrued payroll and related expenses		(2,116)
Deferred revenues—current		(924)
Accrued warranties		(2,068)
Advances from customers		(670)
Other accrued expenses and current liabilities		(1,074)
Deferred revenues—long term		(232)
Net assets acquired		50,335
Goodwill		30,132
Total consideration	$	80,467

Summary of the fair value of acquired identifiable intangible assets as of the acquisition date

The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date (amounts in thousands):


	Weighted
	Average
	Lives	Fair Value
Amortizable assets:
Developed technology	10 years	$	14,210
Customer relationships/backlog	7 years		16,070
In-process research and development ("IPR&D")			90
Total intangible assets		$	30,370

Unaudited pro forma results of operations assuming the acquisitions had occurred on July 1, 2017 and 2016

The following unaudited pro forma results of operations assume the ETD acquisition had occurred on July 1, 2016 (in thousands):


	2017
Revenues	$	1,036,814
Income from operations	$	46,725

AS&E

ACQUISITION ACTIVITY

Schedule of assets acquired and liabilities assumed

The major classes of assets and liabilities, reconciled to total purchase consideration (in thousands):


Cash and cash equivalents	$	79,195
Accounts receivable		24,607
Inventories		27,495
Other current assets		7,450
Property and equipment		5,337
Intangible assets		74,800
Other long—term assets		201
Accounts payable		(5,044)
Accrued payroll and related expenses		(4,723)
Deferred revenues—current		(11,281)
Advances from customers		(13,784)
Other accrued expenses and current liabilities		(7,279)
Deferred revenues—long term		(3,225)
Deferred income tax liability		(9,580)
Other long—term liabilities		(14,004)
Net assets acquired		150,165
Goodwill		115,838
Total consideration	$	266,003

Summary of the fair value of acquired identifiable intangible assets as of the acquisition date

The following table summarizes the fair value of acquired identifiable intangible assets as of the acquisition date (amounts in thousands):


	Weighted	Gross
	Average	Value
	Lives	Carrying
Amortizable assets:
Developed technology	10 years	$	31,750
Customer relationships/backlog	7 years		27,550
In—process research and development (“IPR&D”)	5 years		3,200
Total amortizable assets			62,500
Non—amortizable assets:
Trademarks and trade names			12,300
Total intangible assets		$	74,800

Unaudited pro forma results of operations assuming the acquisitions had occurred on July 1, 2017 and 2016

The following unaudited pro forma results of operations assume the AS&E acquisition had occurred on July 1, 2016 (in thousands):


	2017
Revenues	$	978,706
Income before taxes	$	5,856

INVENTORIES (Tables)

12 Months Ended

Jun. 30, 2019

INVENTORIES

Schedule of inventory

Inventory consisted of the following (in thousands):


	June 30,
	2018		2019
Raw materials	$	156,612	$	143,697
Work-in-process		89,468		67,897
Finished goods		67,472		62,117
Total	$	313,552	$	273,711

PROPERTY AND EQUIPMENT (Tables)

12 Months Ended

Jun. 30, 2019

PROPERTY AND EQUIPMENT

Schedule of property and equipment

Property and equipment consisted of the following (amounts in thousands):


	Estimated
	Useful	June 30,
	Lives	2018		2019
Land	N/A	$	16,569	$	16,564
Buildings, civil works and improvements	5-40 years		56,585		55,391
Leasehold improvements	1-13 years		9,681		8,311
Equipment and tooling	3-10 years		117,294		128,428
Furniture and fixtures	3-10 years		3,331		3,190
Computer equipment	3-5 years		18,759		18,733
Computer software	3-10 years		19,509		20,146
Computer software implementation in process	N/A		4,318		8,563
Construction in process	N/A		790		5,760
Total			246,836		265,086
Less accumulated depreciation and amortization			(131,312)		(137,701)
Property and equipment, net		$	115,524	$	127,385

GOODWILL AND INTANGIBLE ASSETS (Tables)

12 Months Ended

Jun. 30, 2019

GOODWILL AND INTANGIBLE ASSETS

Schedule of changes in carrying amount of goodwill

The changes in the carrying amount of goodwill by segment for fiscal 2018 and 2019 are as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2017	$	155,083	$	40,129	$	46,917	$	242,129
Goodwill acquired or adjusted during the period		36,889		—		13,986		50,875
Foreign currency translation adjustment		(162)		28		(657)		(791)
Balance as of June 30, 2018	$	191,810	$	40,157	$	60,246	$	292,213
Goodwill acquired or adjusted during the period		8,340		—		7,019		15,359
Foreign currency translation adjustment		(71)		(93)		(300)		(464)
Balance as of June 30, 2019	$	200,079	$	40,064	$	66,965	$	307,108

Schedule of intangible assets

Intangible assets subject to amortization consisted of the following (amounts in thousands):


		June 30, 2018						June 30, 2019
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	9 years	$	28,174	$	(9,423)	$	18,751	$	29,393	$	(12,747)	$	16,646
Patents	19 years		8,401		(1,618)		6,783		8,688		(1,927)		6,761
Developed technology	10 years		52,780		(9,706)		43,074		53,460		(14,050)		39,410
Customer relationships/backlog	7 years		63,398		(17,891)		45,507		63,101		(22,132)		40,969
Total amortizable assets			152,753		(38,638)		114,115		154,642		(50,856)		103,786
Non-amortizable assets:
IPR&D			2,290		—		2,290		2,290		—		2,290
Trademarks			25,596		—		25,596		26,878		—		26,878
Total intangible assets		$	180,639	$	(38,638)	$	142,001	$	183,810	$	(50,856)	$	132,954

Schedule of estimated future amortization expense

At June 30, 2019, the estimated future amortization expense was as follows (in thousands):


2020	$	19,960
2021		18,825
2022		14,984
2023		13,904
2024		12,883
Thereafter, including assets that have not yet begun to be amortized		23,230
Total	$	103,786

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES (Tables)

12 Months Ended

Jun. 30, 2019

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES

Summary of impairment, restructuring and other charges

The following table summarizes restructuring and other charges for the periods set forth below (in thousands):


	2017
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	810	$	—	$	—	$	4,877	$	5,687
Employee termination costs		8,256		1,760		631		—		10,647
Facility closures/consolidation		967		1,095		444		—		2,506
Other charges (reversals)		7		374		(70)		500		811
Total expense	$	10,040	$	3,229	$	1,005	$	5,377	$	19,651


		2018
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	—	$	1,541	$	1,541
Employee termination costs		1,485		16		610		—		2,111
Facility closures/consolidation		213		263		26		—		502
Legal and accrued settlement costs		—		19,364		—		3,650		23,014
Total expensed	$	1,698	$	19,643	$	636	$	5,191	$	27,168


	2019
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	287	$	1,021	$	1,308
Employee termination costs		132		1,629		687		—		2,448
Facility closures/consolidation		—		1,918		84		—		2,002
Legal and accrued settlement costs, net		—		—		—		(1,931)		(1,931)
Total expensed	$	132	$	3,547	$	1,058	$	(910)	$	3,827

Summary of changes in the accrued liability for restructuring and other charges

The changes in the accrual for restructuring and other charges for fiscal 2018 and 2019 were as follows (in thousands):


							Legal
					Facility		Settlements
	Acquisition-		Employee		Closure/		and
	related		Termination		Consolidation		Related
	Costs		Costs		Cost		Costs		Total
Balance as of June 30, 2017	$	—	$	175	$	291	$	—	$	466
Restructuring and other charges		1,541		2,111		502		23,014		27,168
Payments and other adjustments		(1,541)		(1,449)		(394)		(8,949)		(12,333)
Balance as of June 30, 2018	$	—	$	837	$	399	$	14,065	$	15,301
Restructuring and other charges, net		1,308		2,448		2,002		(1,931)		3,827
Payments and other adjustments		(1,308)		(2,853)		(2,401)		(5,803)		(12,365)
Balance as of June 30, 2019	$	—	$	432	$	—	$	6,331	$	6,763

Summary of the impairment, restructuring and other charges

The following table summarizes the impairment, restructuring and other charges for fiscal 2017, 2018 and 2019 (in thousands):


	2017		2018		2019
Impairment of assets	$	27,047	$	7,795	$	—
Facility closure / consolidations		2,506		502		2,002
Employee termination costs		10,647		2,111		2,448
Legal fees, settlements and related costs, net		—		23,014		(1,931)
Acquisition-related costs		5,687		1,541		1,308
Other		811		—		—
Total impairment, restructuring and other charges	$	46,698	$	34,963	$	3,827

BORROWINGS AND DEBT (Tables)

12 Months Ended

Jun. 30, 2019

BORROWINGS AND DEBT

Schedule of long-term debt

Long-term debt consisted of the following at June 30, 2018 and 2019 (in thousands):


	2018		2019
1.25% convertible notes due 2022:
Principal amount	$	287,500	$	287,500
Unamortized discount		(35,133)		(27,283)
Unamortized debt issuance costs		(4,897)		(3,722)
		247,470		256,495
Term loans		2,114		—
Other long-term debt		1,658		2,061
		251,242		258,556
Less current portion of long-term debt		(2,262)		(804)
Long-term portion of debt	$	248,980	$	257,752

Schedule of fiscal year principal payments of long-term debt

Fiscal year principal payments of long-term debt as of June 30, 2019 are as follows (in thousands):


2020	$	819
2021		710
2022		446
2023		287,586
2024		—
Thereafter		—
Total	$	289,561

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
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-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

STOCK-BASED COMPENSATION (Tables)

12 Months Ended

Jun. 30, 2019

STOCK-BASED COMPENSATION

Schedule of stock based compensation expense in the condensed consolidated statements of operations

We recorded stock-based-compensation expense in the consolidated statement of operations as follows (in thousands):


	2017		2018		2019
Cost of goods sold	$	1,443	$	972	$	732
Selling, general and administrative		21,354		22,293		23,876
Research and development		433		581		643
Restructuring		2,902		—		—
Stock based compensation expense	$	26,132	$	23,846	$	25,251

Schedule of weighted average assumptions used to determine the fair value calculations for stock options issued


	2017		2018		2019
Expected dividend	—		—		—
Risk-free interest rate	1.7	%	1.9	%	2.6	%
Expected volatility	33.0	%	29.0	%	28.0	%
Expected holding period (in years)	4.5		4.5		4.5

Summary of stock option activity


		Weighted-
		Average		Weighted-Average	Aggregate
	Number of	Exercise		Remaining Contractual	Intrinsic Value
	Options	Price		Term	(in thousands)
Outstanding at June 30, 2016	934,112		28.67
Granted	19,176		73.42
Exercised	(168,564)		26.68
Expired or forfeited	(4,053)		68.28
Outstanding at June 30, 2017	780,671	$	30.00
Granted	25,379		85.83
Exercised	(121,651)		23.53
Expired or forfeited	(6,874)		73.77
Outstanding at June 30, 2018	677,525	$	32.80
Granted	19,259		73.37
Exercised	(169,799)		32.11
Expired or forfeited	(11,101)		70.50
Outstanding at June 30, 2019	515,884	$	33.74	2.2 years	$	40,700
Exercisable at June 30, 2019	479,547	$	30.36	1.7 years	$	39,454

Summary of restricted stock award and RSU award activity


		Weighted-
		Average
	Shares	Fair Value
Nonvested at June 30, 2016	530,498	$	67.94
Granted	379,888		64.55
Vested	(299,277)		67.87
Net replacement RSUs (1)	20,953		67.76
Forfeited	(20,375)		68.34
Nonvested at June 30, 2017	611,687	$	65.85
Granted	351,034		74.09
Vested	(413,639)		65.33
Forfeited	(22,705)		70.32
Nonvested at June 30, 2018	526,377	$	71.56
Granted	375,580		74.40
Vested	(364,410)		70.92
Forfeited	(16,407)		74.13
Nonvested at June 30, 2019	521,140	$	73.97

(1)

Pursuant to the acquisition of AS&E, we assumed unvested RSUs originally granted by AS&E and converted them into RSUs for our Common Stock.

INCOME TAXES (Tables)

12 Months Ended

Jun. 30, 2019

INCOME TAXES

Schedule of geographical breakdown of income before the provision for income taxes

The following is a geographical breakdown of income before the provision for income taxes (in thousands):


	2017		2018		2019
Pre-tax income (loss):
United States	$	(39,686)	$	(40,335)	$	6,575
Foreign		65,437		77,189		79,589
Total pre-tax income	$	25,751	$	36,854	$	86,164

Schedule of provision (benefit) for income taxes

Our provision (benefit) for income taxes consists of the following (in thousands):


	2017		2018		2019
Current:
Federal	$	788	$	8,518	$	541
State		493		707		883
Foreign		27,616		30,643		28,480
Total current provision		28,897		39,868		29,904
Deferred:
Federal	$	(16,314)	$	35,957	$	(1,697)
State		(484)		338		1,214
Foreign		(7,424)		(10,182)		(8,053)
Total deferred provision (benefit)		(24,222)		26,113		(8,536)
Total provision	$	4,675	$	65,981	$	21,368

Summary of activity of unrecognized tax benefits

A summary of activity of unrecognized tax benefits for fiscal 2018 and 2019 is as follows (in thousands).


Balance at June 30, 2017	$	11,195
Additions on tax positions for the current year		294
Additions on tax positions from prior years		14
Reduction in tax positions from prior year		(1,005)
Balance at June 30, 2018	$	10,498
Additions on tax positions for the current year		940
Additions on tax positions from prior years		346
Reduction in tax positions from prior year		(398)
Balance at June 30, 2019	$	11,386

Schedule of deferred income tax assets (liabilities)

Deferred income tax assets (liabilities) consisted of the following (in thousands):


	June 30,
	2018		2019
Deferred income tax assets:
Tax credit carryforwards	$	17,591	$	14,785
Net operating loss carryforwards		10,473		9,331
Customer advances		2,360		3,365
Allowance for doubtful accounts		4,336		4,287
Inventory reserve		11,735		11,503
Inventory capitalization		3,043		2,721
Accrued liabilities		9,174		5,953
Stock and deferred compensation		15,779		12,737
Other assets		3,641		3,157
Total deferred income tax assets		78,132		67,839
Valuation allowance		(27,007)		(23,377)
Net deferred income tax assets		51,125		44,462
Deferred income tax liabilities:
Depreciation		(6,322)		(4,866)
Amortization of intangible assets		(31,993)		(26,056)
Withholding tax on unrepatriated foreign earnings		(5,114)		(5,114)
State transition tax		(1,754)		(1,754)
Convertible debt		(9,198)		(6,443)
Prepaid expenses		(8,680)		(3,903)
Other liabilities		(459)		(308)
Total deferred income tax liabilities		(63,520)		(48,444)
Net deferred income tax liability	$	(12,395)	$	(3,982)

Schedule of components of net deferred income tax asset

The components of the net deferred income tax asset are classified in the consolidated balance sheets as follows (in thousands):


	2018		2019
Long term deferred income tax asset, included in other assets		2,607		3,997
Long term deferred income tax liability		(15,002)		(7,979)
Net deferred income tax liability	$	(12,395)	$	(3,982)

Schedule of components of current taxes receivable and payable and prepaid taxes

The components of current taxes receivable and payable and prepaid taxes are classified in the consolidated balance sheets as follows (in thousands):


	2018		2019
Current taxes receivable and prepaid taxes, included in prepaid expenses and other current assets	$	5,172	$	4,344
Current taxes payable, included in other accrued expenses and current liabilities		(8,314)		(3,094)
Net tax receivable (payable)	$	(3,142)	$	1,250

Schedule of consolidated effective income tax rate differs from the federal statutory income tax rate


	June 30,
	2017		2018		2019
Provision for income taxes at federal statutory rate	35.0	%	28.1	%	21.0	%
Research and development tax credits	(2.5)		(1.4)		(1.6)
Foreign income subject to tax at other than federal statutory rate	(20.0)		(4.8)		2.9
Stock compensation excess tax benefit	(9.5)		(8.8)		(3.2)
Officers’ compensation	—		—		3.5
Change in valuation allowance	10.4		19.6		(1.8)
Unrecognized tax (benefit) expense	(1.4)		(6.8)		0.1
Meals and entertainment	1.8		1.5		0.4
Tax on foreign currency gains and losses	9.1		(0.1)		0.2
State tax expense	(1.5)		(1.3)		1.6
U.S. tax on foreign earnings	0.4		2.5		1.0
Non-taxable gain from sale of business	(3.6)		—		—
Mexico imputed income or expense	(2.0)		(3.5)		(0.5)
Remeasurement of U.S. net deferred tax assets from 35% to 21%	—		16.0		—
Deemed repatriation of non-U.S. earnings	—		102.2		—
Withholding tax on deemed repatriation foreign earnings	—		35.8		—
Other	1.9		—		1.2
Effective income tax rate	18.1	%	179.0	%	24.8	%

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Jun. 30, 2019

COMMITMENTS AND CONTINGENCIES

Summary of commitments

The following is a summary of commitments as of June 30, 2019 (in thousands):


	Payments Due by Period
			Less than						After
	Total		1 year		1-3 years		3-5 years		5 years
Total debt	$	377,561	$	88,819	$	1,156	$	287,586	$	—
Operating leases		34,291		9,802		13,555		6,351		4,583
Purchase obligations		58,793		55,203		3,570		16		4
Acquisition-related obligations		16,577		5,080		8,045		2,618		834
Defined benefit plan obligation		11,973		122		273		5,962		5,616
Total contractual obligations	$	499,195	$	159,026	$	26,599	$	302,533	$	11,037
Other Commercial Commitments—letters of credit	$	98,428	$	50,266	$	24,295	$	2,280	$	21,587

Schedule of roll-forward of the contingent consideration liability


Beginning fair value, June 30, 2018	$	15,713
Additions		5,173
Change in fair value		(418)
Payments on contingent earn-out obligations		(3,891)
Ending fair value, June 30, 2019	$	16,577

EMPLOYEE BENEFIT PLANS (Tables)

12 Months Ended

Jun. 30, 2019

EMPLOYEE BENEFIT PLANS

Schedule of the changes in the plans' benefit obligations, fair value of assets and funded status


	2018		2019
Change in Benefit Obligation
Benefit obligation at beginning of year	$	13,726	$	13,780
Translation adjustment		57		(166)
Interest costs		467		457
Service costs		—		223
Curtailment		(369)		—
Actuarial (gain) loss		61		(82)
Benefits paid		(162)		(153)
Benefit obligation at end of year		13,780		14,059
Change in Plan Assets
Fair value of plan assets at beginning of year		5,555		5,870
Translation adjustment		43		(183)
Actual return on plan assets		388		201
Benefits paid		(116)		(107)
Fair value of plan assets at end of year		5,870		5,781
Funded status and net amount recognized	$	(7,910)	$	(8,278)
Amount recognized in consolidated balance sheets consists of:
Investments	$	1,065	$	1,034
Accrued pension liability		(8,975)		(9,312)
Accumulated other comprehensive income		1,202		1,019

Schedule of net periodic pension expense

The following table provides the net periodic benefit costs for the fiscal years ended June 30, (in thousands):


	2017		2018		2019
Net Periodic Benefit Costs
Interest costs	$	453	$	467	$	457
Service costs		—		—		223
Expected return on plan assets		(200)		(203)		(270)
Amortization of prior service costs		279		249		56
Recognized actuarial loss		317		305		103
Net periodic benefit cost	$	849	$	818	$	569

Schedule of plan assumptions


	2018		2019
Weighted average assumptions at year-end:
Discount rate	3.4	%	3.2	%
Expected return on plan assets	4.7	%	4.4	%
Rate of compensation increase	3.0	%	2.9	%

Schedule of plan assets and investment policy


	Fiscal year ended				Fiscal year ended
	June 30, 2018				June 30, 2019
	Proportion of		Expected Rate		Proportion of		Expected Rate
	Fair Value		of Return		Fair Value		of Return
Equity securities	83	%	6	%	82	%	5	%
Debt securities	17	%	1	%	17	%	1	%
Cash	—	%	—	%	1	%	—	%
Combined	100	%	4.7	%	100	%	4.4	%

Schedule of estimated benefits payments, based upon the same assumptions used to measure the benefit obligation and net pension cost

The following table reflects estimated benefits payments, based upon the same assumptions used to measure the benefit obligation and net pension cost, as of June 30, 2019 (in thousands):


		Pension Benefits
July 1, 2019 to June 30, 2020		122
July 1, 2020 to June 30, 2021		135
July 1, 2021 to June 30, 2022		138
July 1, 2022 to June 30, 2023		159
July 1, 2023 to June 30, 2024		5,803
July 1, 2024 to June 30, 2029		5,616

SEGMENT INFORMATION (Tables)

12 Months Ended

Jun. 30, 2019

SEGMENT INFORMATION

Schedule of results of operations and identifiable assets by industry segment

The following tables present the operations and identifiable assets by industry segment (in thousands):


	2017
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Eliminations		Consolidated
Revenues:
External customer revenue	$	555,197	$	200,034	$	205,720	$	—	$	—	$	960,951
Revenue between product segments		—		—		30,380		—		(30,380)		—
Total revenues	$	555,197	$	200,034	$	236,100	$	—		(30,380)	$	960,951
Income (loss) from operations	$	35,256	$	2,624	$	23,792	$	(29,359)	$	979	$	33,292
Segments assets	$	785,230	$	186,021	$	196,567	$	64,959	$	(2,690)	$	1,230,087
Capital expenditures	$	10,436	$	1,797	$	2,856	$	2,007	$	—	$	17,096
Depreciation and amortization	$	53,924	$	6,495	$	6,561	$	1,255	$	—	$	68,235


	2018
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Eliminations		Consolidated
Revenues:
External customer revenue	$	690,001	$	189,387	$	209,898	$	—	$	—	$	1,089,286
Revenue between product segments		—		—		44,587		—		(44,587)		—
Total revenues	$	690,001	$	189,387	$	254,485	$	—		(44,587)	$	1,089,286
Income (loss) from operations	$	84,106	$	(14,609)	$	22,024	$	(35,030)	$	(583)	$	55,908
Segments assets	$	804,527	$	167,611	$	220,373	$	66,453	$	(3,273)	$	1,255,691
Capital expenditures	$	14,479	$	1,540	$	3,286	$	23,893	$	—	$	43,198
Depreciation and amortization	$	55,630	$	4,910	$	7,766	$	1,448	$	—	$	69,754


	2019
					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Corporate		Eliminations		Consolidated
Revenues:
External customer revenue	$	747,550	$	188,477	$	246,088	$	—	$	—	$	1,182,115
Revenue between product segments		—		—		42,542		—		(42,542)		—
Total revenues	$	747,550	$	188,477	$	288,630	$	—		(42,542)	$	1,182,115
Income (loss) from operations	$	97,426	$	12,277	$	29,519	$	(30,598)	$	(850)	$	107,774
Segments assets	$	793,810	$	157,639	$	237,851	$	79,498	$	(3,934)	$	1,264,864
Capital expenditures	$	15,830	$	1,372	$	4,760	$	5,450	$	—	$	27,412
Depreciation and amortization	$	39,788	$	5,426	$	9,269	$	1,751	$	—	$	56,234

Schedule of revenues and identifiable assets by geographical area

The following tables present the revenues and identifiable assets by geographical area (in thousands):


	2017
	External		Intersegment		Total		Long lived		Long lived
	revenues		revenues		Consolidated		tangible assets		assets
Geographic region:
United States	$	478,791	$	5,339	$	484,130	$	65,046	$	380,200
Mexico		119,910		—		119,910		63,914		63,914
Other Americas		14,886		—		14,886		4,294		6,127
Total Americas		613,587		5,339		618,926		133,254		450,241
United Kingdom		185,803		542		186,345		23,396		61,319
Other Europe, Middle East and Africa		33,202		—		33,202		10,451		13,868
Total EMEA		219,005		542		219,547		33,847		75,187
Asia-Pacific		128,359		24,499		152,858		14,509		16,762
Eliminations		—		(30,380)		(30,380)		N/A		N/A
Total	$	960,951	$	—	$	960,951	$	181,610	$	542,190


	2018
	External		Intersegment		Total		Long lived		Long lived
	revenues		revenues		Consolidated		tangible assets		assets
Geographic region:
United States	$	552,677	$	9,221	$	561,898	$	103,582	$	457,516
Mexico		106,472		—		106,472		12,143		12,143
Other Americas		25,060		—		25,060		4,027		29,491
Total Americas		684,209		9,221		693,430		119,752		499,150
United Kingdom		231,909		162		232,071		21,916		71,126
Other Europe, Middle East and Africa		25,694		—		25,694		9,993		13,458
Total EMEA		257,603		162		257,765		31,909		84,584
Asia-Pacific		147,474		35,204		182,678		16,512		18,653
Eliminations		—		(44,587)		(44,587)		N/A		N/A
Total	$	1,089,286	$	—	$	1,089,286	$	168,173	$	602,387


	2019
	External		Intersegment		Total		Long lived		Long lived
	revenues		revenues		Consolidated		tangible assets		assets
Geographic region:
United States	$	565,316	$	10,107	$	575,423	$	117,414	$	476,314
Mexico		71,225		—		71,225		436		436
Other Americas		45,804		—		45,804		3,178		27,039
Total Americas		682,345		10,107		692,452		121,028		503,789
United Kingdom		292,297		214		292,511		30,282		80,896
Other Europe, Middle East and Africa		30,484		—		30,484		8,833		12,237
Total EMEA		322,781		214		322,995		39,115		93,133
Asia-Pacific		176,989		32,221		209,210		19,763		23,046
Eliminations		—		(42,542)		(42,542)		N/A		N/A
Total	$	1,182,115	$	—	$	1,182,115	$	179,906	$	619,968

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Description of Business (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($) segment item	Jun. 30, 2018 USD ($)
Description of Business
Number of reporting segments \| segment	3
Cash Equivalents
Cash and cash equivalents	$ 96,316	$ 84,814
Accounts Receivable
Accounts receivables	253,504	221,240
Less allowance for doubtful accounts	(15,064)	(10,496)
Total	$ 238,440	$ 210,744
Goodwill and Other Intangible Assets and Valuation of Long Lived Assets
Number of reporting units \| item	3
Two of our three reporting units
Goodwill and Other Intangible Assets and Valuation of Long Lived Assets
Number of reporting units \| item	2
Goodwill impairment	$ 0
Third reporting reporting unit
Goodwill and Other Intangible Assets and Valuation of Long Lived Assets
Goodwill impairment	$ 0
Hypothetical percentage decrease to the fair value, would not have indicated impairment	10.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Fair values of financial assets and liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
Fair Value of Financial Instruments
Liabilities-contingent consideration	$ 16,577	$ 15,713
Recurring
Fair Value of Financial Instruments
Insurance company contracts	35,899	31,897
Interest rate contract		18
Total assets	35,899	31,915
Liabilities-contingent consideration	16,577	15,713
Recurring \| Level 2
Fair Value of Financial Instruments
Insurance company contracts	35,899	31,897
Interest rate contract		18
Total assets	35,899	31,915
Recurring \| Level 3
Fair Value of Financial Instruments
Fair value of assets	0	0
Liabilities-contingent consideration	$ 16,577	$ 15,713

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Revenue Recognition
Total revenues	$ 1,182,115	$ 1,089,286	$ 960,951
Costs of goods sold	751,521	697,634	637,450
Operating expenses	322,820	335,744	290,209
Income from operations	107,774	55,908	33,292
Interest expense and other expense, net	(21,610)
Income tax provision	(21,368)	(65,981)	(4,675)
Net income (loss)	64,796	(29,127)	$ 21,076
Assets
Accounts receivable, net	238,440	210,744
Inventories	273,711	313,552
Other assets	752,713
Liabilities
Current liabilities	382,008	443,322
Other liabilities	331,129
Stockholders' Equity
Retained earnings	399,541	334,745
Contract Assets
Unbilled revenue	19,287	1,617
Substantial non-current contract assets	0	0
Contract Liabilities
Advances from customers	43,227	55,761
Deferred revenue - current	33,641	28,899
Deferred revenue - long-term	9,506	$ 9,562
Remaining Performance Obligations
Revenue remaining performance obligation	143,500
Recognized revenue from contract liabilities	$ 74,600
Revenue, Practical Expedient, Financing Component [true false]	true
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01
Remaining Performance Obligations
Remaining performance obligation expected timing of satisfaction period	12 months
Remaining performance obligation expected percentage recognized	43.00%
ASU 2014-09 \| Balances without Adoption of ASC 606
Revenue Recognition
Total revenues	$ 1,149,209
Costs of goods sold	734,322
Operating expenses	309,824
Income from operations	105,063
Interest expense and other expense, net	(21,610)
Income tax provision	(20,943)
Net income (loss)	62,510
Assets
Accounts receivable, net	218,941
Inventories	290,980
Other assets	753,138
Liabilities
Current liabilities	382,489
Other liabilities	331,129
Stockholders' Equity
Retained earnings	397,255
ASU 2014-09 \| Effect of Change
Revenue Recognition
Total revenues	32,906
Costs of goods sold	17,199
Operating expenses	12,996
Income from operations	2,711
Income tax provision	(425)
Net income (loss)	2,286
Assets
Accounts receivable, net	19,499
Inventories	(17,269)
Other assets	(425)
Liabilities
Current liabilities	(481)
Stockholders' Equity
Retained earnings	2,286
Contract Assets
Unbilled revenue	17,670
Contract Liabilities
Advances from customers	(12,534)
Deferred revenue - current	4,742
Deferred revenue - long-term	$ (56)
Percentage of of change in customer deposits and prepayments	(22.00%)
Percentage of change deferred revenue current	16.00%
Percentage of change deferred revenue noncurrent	(1.00%)
ASU 2014-09 \| Effect of Change \| Minimum
Contract Assets
Percentage of change in unbilled revenue	100.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Credit Risk and Concentration (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Credit Risk and Concentration
Cash and cash equivalents	$ 96,316	$ 84,814
Foreign subsidiaries \| Cash and cash equivalents \| Cash and Cash Equivalents Concentration Risk
Credit Risk and Concentration
Concentration (as a percent)	87.00%	86.00%
SAT \| Revenue \| Customer Concentration Risk
Credit Risk and Concentration
Concentration (as a percent)			12.00%

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Translation and Transactions, Earnings per Share, Warranty Provision, Income Taxes & Leases (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017	Jul. 31, 2018	Jul. 01, 2018	Feb. 28, 2017
Foreign Currency Translation
Transaction gain (loss)	$ 100	$ (1,300)	$ 2,000
Earnings (loss) per share:
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect (in thousands)	40	1,280	87
Computation of basic and diluted earnings per share
Net income	$ 64,796	$ (29,127)	$ 21,076
Weighted average shares outstanding-basic	18,097	18,592	18,894
Dilutive effect of equity awards	623		795
Weighted average shares outstanding-diluted	18,720	18,592	19,689
Basic earnings (loss) per share	$ 3.58	$ (1.57)	$ 1.12
Diluted earnings (loss) per share	$ 3.46	$ (1.57)	$ 1.07
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect (in thousands)	40	1,280	87
Changes in warranty provision
Warranty provision at beginning of period	$ 21,819	$ 15,178	$ 15,948
Warranty claims provided for/assumed in acquisition	8,867	14,156	5,793
Settlements made	(8,962)	(7,515)	(6,563)
Warranty provision at end of period	21,724	21,819	$ 15,178
Recently Adopted Accounting Pronouncements
Prepaid expenses and other assets	32,432	41,587
Deferred tax asset	$ 3,997	$ 2,607
Leases
Lease, Practical Expedients, Package	false
ASU 2016-16
Recently Adopted Accounting Pronouncements
Prepaid expenses and other assets				$ (3,000)
Deferred tax asset					$ 3,000
1.25% Convertible Senior Notes Due 2022
Earnings (loss) per share:
Interest rate (as a percentage)	1.25%					1.25%
Restatement Adjustment \| ASU 2016-02
Leases
ROU assets	$ 28,000
Lease liabilities	$ 30,000

ACQUISITION ACTIVITY - Explosive Trace Detection (Details) - USD ($) $ in Thousands	Jul. 07, 2017	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Allocation of total consideration to assets acquired and liabilities assumed
Goodwill		$ 307,108	$ 292,213	$ 242,129
ETD
ACQUISITION ACTIVITY
Total purchase price	$ 80,500
Allocation of total consideration to assets acquired and liabilities assumed
Cash and cash equivalents		4
Accounts receivable		15,517
Inventories		11,678
Property and equipment		1,599
Intangible assets		30,370
Deferred tax assets		2,738
Other long-term assets		297
Accounts payable		(4,784)
Accrued payroll and related expenses		(2,116)
Deferred revenues - current		(924)
Accrued warranties		(2,068)
Advances from customers		(670)
Other accrued expenses and current liabilities		(1,074)
Deferred revenues - long term		(232)
Net assets acquired		50,335
Goodwill		30,132
Total consideration		$ 80,467

ACQUISITION ACTIVITY - Intangible Assets (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($)
ETD
ACQUISITION ACTIVITY
Total intangible assets	$ 30,370
ETD \| Developed technology
ACQUISITION ACTIVITY
Weighted Lives Average (in years)	10 years
Amortizable assets	$ 14,210
ETD \| Customer relationships/backlog
ACQUISITION ACTIVITY
Weighted Lives Average (in years)	7 years
Amortizable assets	$ 16,070
ETD \| IPR&D
ACQUISITION ACTIVITY
Amortizable assets	90
AS&E
ACQUISITION ACTIVITY
Amortizable assets	62,500
Total intangible assets	74,800
AS&E \| Trademarks and trade names
ACQUISITION ACTIVITY
Non-amortizable asset	$ 12,300
AS&E \| Developed technology
ACQUISITION ACTIVITY
Weighted Lives Average (in years)	10 years
Amortizable assets	$ 31,750
AS&E \| Customer relationships/backlog
ACQUISITION ACTIVITY
Weighted Lives Average (in years)	7 years
Amortizable assets	$ 27,550
AS&E \| IPR&D
ACQUISITION ACTIVITY
Weighted Lives Average (in years)	5 years
Amortizable assets	$ 3,200

ACQUISITION ACTIVITY - Revenue and Income (Details) - USD ($) $ in Thousands	10 Months Ended	12 Months Ended
	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
ETD
ACQUISITION ACTIVITY
Revenue since acquisition date		$ 76,500
Pre-tax income since acquisition date		$ 10,700
Pro forma results of operations assuming the acquisitions had occurred on July 1, 2015, 2016, and 2017
Revenues			$ 1,036,814
Income from operations			46,725
AS&E
ACQUISITION ACTIVITY
Revenue since acquisition date	$ 94,000
Pre-tax income since acquisition date	$ 8,700
Pro forma results of operations assuming the acquisitions had occurred on July 1, 2015, 2016, and 2017
Revenues			978,706
Income from operations			5,856
Non-recurring acquisition and employee termination costs			$ 13,900

ACQUISITION ACTIVITY - American Science and Engineering (Details) - USD ($) $ in Thousands	Sep. 09, 2016	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Allocation of total consideration to assets acquired and liabilities assumed
Goodwill		$ 307,108	$ 292,213	$ 242,129
AS&E
ACQUISITION ACTIVITY
Percentage of ownership acquired	100.00%
Total cash merger consideration	$ 266,000
Cash on hand to pay down the revolving bank line of credit	$ 69,000
Allocation of total consideration to assets acquired and liabilities assumed
Cash and cash equivalents		79,195
Accounts receivable		24,607
Inventories		27,495
Other current assets		7,450
Property and equipment		5,337
Intangible assets		74,800
Other long-term assets		201
Accounts payable		(5,044)
Accrued payroll and related expenses		(4,723)
Deferred revenues - current		(11,281)
Advances from customers		(13,784)
Other accrued expenses and current liabilities		(7,279)
Deferred revenues - long term		(3,225)
Deferred income tax liability		(9,580)
Other long-term liabilities		(14,004)
Net assets acquired		150,165
Goodwill		115,838
Total consideration		$ 266,003

ACQUISITION ACTIVITY - Other Business Acquisition (Details) - USD ($) $ in Thousands	1 Months Ended
	Aug. 31, 2018	Jul. 31, 2018	Jan. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
ACQUISITION ACTIVITY
Goodwill				$ 307,108	$ 292,213	$ 242,129
Maximum contingent consideration				$ 28,200
An electronics component designer and manufacturer
ACQUISITION ACTIVITY
Total purchase price			$ 22,000
Goodwill			14,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net			3,300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill			12,600
Maximum contingent consideration			$ 6,000
A privately held services company
ACQUISITION ACTIVITY
Total purchase price	$ 800
Maximum contingent consideration	$ 5,000
Contingent consideration earnout period	5 years
Optoelectronics solutions business
ACQUISITION ACTIVITY
Total purchase price		$ 17,500
Maximum contingent consideration		$ 1,000
Contingent consideration earnout period		18 months

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Jun. 30, 2018
INVENTORIES
Raw materials	$ 143,697	$ 156,612
Work-in-process	67,897	89,468
Finished goods	62,117	67,472
Total	$ 273,711	$ 313,552

PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Property and equipment
Property and equipment, gross		$ 265,086	$ 246,836
Less accumulated depreciation and amortization		(137,701)	(131,312)
Property and equipment, net		127,385	115,524
Depreciation expense		20,500	43,300	$ 56,000
Mexican government
Contract with Mexican government
Term of agreement with Mexican government to provide security screening services	2 years
Net book value of certain fixed assets transferred	$ 29,500
Recognized amortization expense		14,300	6,900
Mexican government \| Prepaid expenses and other current assets
Contract with Mexican government
Remaining cost to obtain the contract		7,700
Land
Property and equipment
Property and equipment, gross		16,564	16,569
Buildings, civil works and improvements
Property and equipment
Property and equipment, gross		$ 55,391	56,585
Buildings, civil works and improvements \| Minimum
Property and equipment
Estimated Useful Lives		5 years
Buildings, civil works and improvements \| Maximum
Property and equipment
Estimated Useful Lives		40 years
Leasehold improvements
Property and equipment
Property and equipment, gross		$ 8,311	9,681
Leasehold improvements \| Minimum
Property and equipment
Estimated Useful Lives		1 year
Leasehold improvements \| Maximum
Property and equipment
Estimated Useful Lives		13 years
Equipment and tooling
Property and equipment
Property and equipment, gross		$ 128,428	117,294
Equipment and tooling \| Minimum
Property and equipment
Estimated Useful Lives		3 years
Equipment and tooling \| Maximum
Property and equipment
Estimated Useful Lives		10 years
Furniture and fixtures
Property and equipment
Property and equipment, gross		$ 3,190	3,331
Furniture and fixtures \| Minimum
Property and equipment
Estimated Useful Lives		3 years
Furniture and fixtures \| Maximum
Property and equipment
Estimated Useful Lives		10 years
Computer equipment
Property and equipment
Property and equipment, gross		$ 18,733	18,759
Computer equipment \| Minimum
Property and equipment
Estimated Useful Lives		3 years
Computer equipment \| Maximum
Property and equipment
Estimated Useful Lives		5 years
Computer software
Property and equipment
Property and equipment, gross		$ 20,146	19,509
Computer software \| Minimum
Property and equipment
Estimated Useful Lives		3 years
Computer software \| Maximum
Property and equipment
Estimated Useful Lives		10 years
Computer software implementation in process
Property and equipment
Property and equipment, gross		$ 8,563	4,318
Construction in process
Property and equipment
Property and equipment, gross		$ 5,760	$ 790

GOODWILL AND INTANGIBLE ASSETS - Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 292,213	$ 242,129
Goodwill acquired or adjusted during the period	15,359	50,875
Foreign currency translation adjustment	(464)	(791)
Balance at the end of the period	307,108	292,213
Security Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	191,810	155,083
Goodwill acquired or adjusted during the period	8,340	36,889
Foreign currency translation adjustment	(71)	(162)
Balance at the end of the period	200,079	191,810
Healthcare Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	40,157	40,129
Foreign currency translation adjustment	(93)	28
Balance at the end of the period	40,064	40,157
Optoelectronics and Manufacturing Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	60,246	46,917
Goodwill acquired or adjusted during the period	7,019	13,986
Foreign currency translation adjustment	(300)	(657)
Balance at the end of the period	$ 66,965	$ 60,246

GOODWILL AND INTANGIBLE ASSETS - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Amortizable assets:
Gross Carrying Value	$ 154,642	$ 152,753
Accumulated Amortization	(50,856)	(38,638)
Total	103,786	114,115
Total intangible assets
Gross Carrying Value	183,810	180,639
Intangible assets, net	132,954	142,001
Impairment charges related to intangible assets		2,500
Amortization expense	21,400	19,500	$ 12,300
IPR&D
Non-amortizable assets:
Gross Carrying Value	2,290	2,290
Trademarks
Non-amortizable assets:
Gross Carrying Value	$ 26,878	25,596
Software development costs
Intangible assets
Weighted Average Lives (in Years)	9 years
Amortizable assets:
Gross Carrying Value	$ 29,393	28,174
Accumulated Amortization	(12,747)	(9,423)
Total	$ 16,646	18,751
Patents
Intangible assets
Weighted Average Lives (in Years)	19 years
Amortizable assets:
Gross Carrying Value	$ 8,688	8,401
Accumulated Amortization	(1,927)	(1,618)
Total	$ 6,761	6,783
Developed technology
Intangible assets
Weighted Average Lives (in Years)	10 years
Amortizable assets:
Gross Carrying Value	$ 53,460	52,780
Accumulated Amortization	(14,050)	(9,706)
Total	$ 39,410	43,074
Customer relationships/backlog
Intangible assets
Weighted Average Lives (in Years)	7 years
Amortizable assets:
Gross Carrying Value	$ 63,101	63,398
Accumulated Amortization	(22,132)	(17,891)
Total	$ 40,969	$ 45,507

GOODWILL AND INTANGIBLE ASSETS - Intangible Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Estimated future amortization expense
2020	$ 19,960
2021	18,825
2022	14,984
2023	13,904
2024	12,883
Thereafter, including assets that have not yet begun to be amortized	23,230
Total	103,786	$ 114,115
Software development costs
Estimated future amortization expense
Total	16,646	18,751
Capitalized software development costs	$ 2,700	$ 1,800	$ 2,300

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES - Impairment, restructuring and other charges (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($) item	Jun. 30, 2018 USD ($) item site	Jun. 30, 2017 USD ($)
Restructuring and other charges
Impairment charges	$ 0	$ 7,795	$ 27,047
Assets fully written off, including inventory and the intangible assets and fixed assets		7,795	27,047
Acquisition-related costs	1,308	1,541	5,687
Employee termination costs	2,448	2,111	10,647
Facility closures / consolidation	2,002	502	2,506
Legal and accrued settlement costs, net	(1,931)	23,014
Other charges (reversals)			811
Total expensed	3,827	27,168	19,651
Turnkey Screening Program
Restructuring and other charges
Impairment charges		$ 17,500
Number of sites that were relocated \| site		5
Security Division
Restructuring and other charges
Number of product lines abandoned \| item		2
Assets fully written off, including inventory and the intangible assets and fixed assets		$ 9,400
Acquisition-related costs			810
Employee termination costs	132	1,485	8,256
Facility closures / consolidation		213	967
Other charges (reversals)			7
Total expensed	$ 132	1,698	10,040
Healthcare Division
Restructuring and other charges
Number of non-core product lines abandoned \| item	2
Employee termination costs	$ 1,629	16	1,760
Facility closures / consolidation	1,918	263	1,095
Legal and accrued settlement costs, net		19,364
Other charges (reversals)			374
Total expensed	3,547	19,643	3,229
Optoelectronics and Manufacturing Division
Restructuring and other charges
Acquisition-related costs	287
Employee termination costs	687	610	631
Facility closures / consolidation	84	26	444
Other charges (reversals)			(70)
Total expensed	1,058	636	1,005
Corporate
Restructuring and other charges
Acquisition-related costs	1,021	1,541	4,877
Legal and accrued settlement costs, net	(1,931)	3,650
Other charges (reversals)			500
Total expensed	$ (910)	$ 5,191	$ 5,377

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES - Changes in the accrued liability for restructuring and other charges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Restructuring and other charges
Balance at the beginning of the period	$ 15,301	$ 466
Restructuring and other charges, net	3,827	27,168
Payments and other adjustments	(12,365)	(12,333)
Balance at the end of the period	6,763	15,301
Acquisition-related Costs
Restructuring and other charges
Restructuring and other charges, net	1,308	1,541
Payments and other adjustments	(1,308)	(1,541)
Employee Termination Costs
Restructuring and other charges
Balance at the beginning of the period	837	175
Restructuring and other charges, net	2,448	2,111
Payments and other adjustments	(2,853)	(1,449)
Balance at the end of the period	432	837
Facility Closure/ Consolidation Cost
Restructuring and other charges
Balance at the beginning of the period	399	291
Restructuring and other charges, net	2,002	502
Payments and other adjustments	(2,401)	(394)
Balance at the end of the period		399
Other Costs
Restructuring and other charges
Balance at the beginning of the period	14,065
Restructuring and other charges, net	(1,931)	23,014
Payments and other adjustments	(5,803)	(8,949)
Balance at the end of the period	$ 6,331	$ 14,065

IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES - Impairments, restructuring and other charges (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
IMPAIRMENT, RESTRUCTURING AND OTHER CHARGES
Impairment of assets	$ 0	$ 7,795	$ 27,047
Facility closures / consolidation	2,002	502	2,506
Employee termination costs	2,448	2,111	10,647
Legal fees, settlements and related costs, net	(1,931)	23,014
Acquisition-related costs	1,308	1,541	5,687
Other			811
Total impairment, restructuring and other charges	$ 3,827	$ 34,963	$ 46,698

BORROWINGS AND DEBT (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2019 USD ($) item $ / shares	Jun. 30, 2018 USD ($)	Apr. 30, 2019 USD ($)	Mar. 31, 2019 USD ($)	Feb. 28, 2017 USD ($)	Dec. 31, 2016 USD ($)
Borrowings
Borrowings outstanding	$ 88,000	$ 113,000
Components of long-term debt
Convertible notes	256,495	247,470
Term loans		2,114
Other long-term debt	2,061	1,658
Total	258,556	251,242
Less current portion of long-term debt	(804)	(2,262)
Long-term portion of debt	$ 257,752	248,980
Fiscal year principal payments of long-term debt
2020		819
2021		710
2022		446
2023		287,586
Total		289,561
Revolving Credit Facility
Borrowings
Maximum borrowing capacity			$ 535,000	$ 525,000
Sub limit available for letters of credit						$ 300,000
Unused commitment fee (as a percent)	0.10%
Borrowings outstanding	$ 88,000
Amount outstanding under lines of credit facilities	55,900
Available credit facility	$ 391,100
Revolving Credit Facility \| Minimum
Borrowings
Unused commitment fee (as a percent)	0.10%
Revolving Credit Facility \| Maximum
Borrowings
Increase in the credit agreement's borrowing capacity available under certain circumstances			$ 250,000
Commitment fee (as a percent)	0.25%
Revolving Credit Facility \| LIBOR
Borrowings
Interest rate margin (as a percent)	1.00%
Revolving Credit Facility \| LIBOR \| Minimum
Borrowings
Interest rate margin (as a percent)	1.00%
Revolving Credit Facility \| LIBOR \| Maximum
Borrowings
Unused commitment fee (as a percent)	1.75%
1.25% Convertible Senior Notes Due 2022
Borrowings
Principal amount	$ 287,500				$ 287,500
Interest rate (as a percentage)	1.25%				1.25%
Conversion ratio	9.3056
Conversion price \| $ / shares	$ 107.46
Premium on stock price	38.50%
Threshold percentage of stock price	130.00%
Number of trading days \| item	20
Number of consecutive trading days \| item	30
Principal amount of the notes to be repurchased (as a percentage)	100.00%
Liability component of convertible debt	$ 242,400
Equity component of convertible debt	45,100
Debt issuance costs	7,700
Debt Component of debt issuance costs	6,500
Equity component of debt issuance costs		1,200
Total interest expense	12,600	12,300
Contractual interest expense	3,600	3,600
Amortization of debt discount	7,800	7,500
Amortization of debt issuance costs	$ 1,200	1,200
Effective interest rate (as a percent)	4.50%
Components of long-term debt
Principal amount	$ 287,500	287,500
Unamortized discount	(27,283)	(35,133)
Unamortized debt issuance costs	(3,722)	(4,897)
Bank lines of credit
Borrowings
Amount outstanding under lines of credit facilities	$ 42,500
Available credit facility		$ 24,000

STOCK-BASED COMPENSATION - Stock based compensation expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Stock based compensation expense
Stock-based compensation expense before taxes	$ 25,251	$ 23,846	$ 26,132
RSU
Stock-based compensation, other disclosures
Unrecognized compensation cost	13,300
Weighted-average period		2 years
Stock options
Stock-based compensation, other disclosures
Unrecognized compensation cost	500
Weighted-average period		1 year 9 months 18 days
Cost of goods sold
Stock based compensation expense
Stock-based compensation expense before taxes	732	$ 972	1,443
Selling, general and administrative
Stock based compensation expense
Stock-based compensation expense before taxes	23,876	22,293	21,354
Research and development
Stock based compensation expense
Stock-based compensation expense before taxes	$ 643	$ 581	433
Restructuring
Stock based compensation expense
Stock-based compensation expense before taxes			$ 2,902
2005 AS&E Plan and the 2014 AS&E Plan \| RSU
Stock based compensation expense
Granted (in shares)	0
2006 Plan
Stock based compensation expense
Granted (in shares)	0

STOCK-BASED COMPENSATION - OSI Plans (Details) - USD ($)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Weighted-Average Fair Value
Granted (in dollars per share)		$ 74.09	$ 64.55
Employee Stock Purchase Plan
Stock-based Compensation
Shares purchased	70,857	80,115	71,314
Shares available for grant	670,833
Employee Stock Purchase Plan \| Maximum
Stock-based Compensation
Discount rate for eligible employees to purchase common stock (as a percent)	15.00%
2006 Plan
Stock-based Compensation
Number of awards issued (in shares)	0
Shares
Granted (in shares)	0
OSI Plans \| Stock options
Stock-based Compensation
Vesting period	3 years
Weighted average assumptions used to determine the fair value calculations for stock options issued
Risk-free interest rate (as percent)	2.60%	1.90%	1.70%
Expected volatility (as percent)	28.00%	29.00%	33.00%
Expected holding period (in years)	4 years 6 months	4 years 6 months	4 years 6 months
Number of Options
Outstanding at the beginning of the period (in shares)	677,525	780,671	934,112
Granted (in shares)	19,259	25,379	19,176
Exercised (in shares)	(169,799)	(121,651)	(168,564)
Expired or forfeited (in shares)	(11,101)	(6,874)	(4,053)
Outstanding at the end of the period (in shares)	515,884	677,525	780,671
Exercisable at the end of the period (in shares)	479,547
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share)	$ 32.80	$ 30.00	$ 28.67
Granted (in dollars per share)	73.37	85.83	73.42
Exercised (in dollars per share)	32.11	23.53	26.68
Expired or forfeited (in dollars per share)	70.50	73.77	68.28
Outstanding at the end of the period (in dollars per share)	33.74	32.80	30.00
Exercisable at the end of the period (in dollars per share)	$ 30.36
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period	2 years 2 months 12 days
Exercisable at the end of the period	1 year 8 months 12 days
Aggregate Intrinsic Value
Outstanding at the end of the period	$ 40,700,000
Exercisable at the end of the period	$ 39,454,000
Stock-based compensation, other disclosures
Weighted-average grant-date fair value of stock options (in dollars per share)	$ 20.45	$ 23.64	$ 22.19
Total intrinsic value of options exercised		$ 9,169,000
OSI Plans \| Nonqualified options \| Minimum \| Any person who owned more than 10% of the voting power of all classes of stock
Stock-based Compensation
Percentage of voting power owned	10.00%
Purchase price expressed as a percentage of the fair market value of the Company's common stock on the date of grant	110.00%
OSI Plans \| Incentive stock options \| Minimum \| Any person who owned more than 10% of the voting power of all classes of stock
Stock-based Compensation
Percentage of voting power owned	10.00%
Purchase price expressed as a percentage of the fair market value of the Company's common stock on the date of grant	110.00%
OSI Plans \| Restricted stock and RSU
Shares
Nonvested at the beginning of the period (in shares)	526,377	611,687	530,498
Granted (in shares)	375,580	351,034	379,888
Vested (in shares)	(364,410)	(413,639)	(299,277)
Net replacement RSUs (in Shares)			20,953
Forfeited (in shares)	(16,407)	(22,705)	(20,375)
Nonvested at the end of the period (in shares)	521,140	526,377	611,687
Weighted-Average Fair Value
Nonvested at the beginning of the period (in dollars per share)	$ 71.56	$ 65.85	$ 67.94
Granted (in dollars per share)	74.40	74.09	64.55
Vested (in dollars per share)	70.92	65.33	67.87
Net replacement RSUs ( in dollar per share)			67.76
Forfeited (in dollars per share)	74.13	70.32	68.34
Nonvested at the end of the period (in dollars per share)	$ 73.97	$ 71.56	$ 65.85
Total fair value of shares vested	$ 25,800,000	$ 27,000,000	$ 23,200,000
OSI Plans \| Restricted stock and RSU \| Minimum
Stock-based Compensation
Vesting period	3 years
OSI Plans \| Restricted stock and RSU \| Maximum
Stock-based Compensation
Vesting period	4 years
OSI Plans \| Performance-based restricted stock units
Shares
Granted (in shares)	97,514	117,346	156,836
OSI Plans \| Performance-based restricted stock units \| Minimum
Weighted-Average Fair Value
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock	0.00%
OSI Plans \| Performance-based restricted stock units \| Maximum
Weighted-Average Fair Value
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock	280.00%
2012 Plan
Stock-based Compensation
Shares available for grant	1,600,000
2012 Plan \| Restricted stock and RSU
Weighted-Average Fair Value
Number of shares available for grant reduced for each award granted	1.87
Number of shares available for grant increased for each award forfeited and returned	1.87

INCOME TAXES - Geographical breakdown of income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Pre-tax income (loss):
United States	$ 6,575	$ (40,335)	$ (39,686)
Foreign	79,589	77,189	65,437
Income before income taxes	86,164	36,854	25,751
Current:
Federal	541	8,518	788
State	883	707	493
Foreign	28,480	30,643	27,616
Total current provision	29,904	39,868	28,897
Deferred:
Federal	(1,697)	35,957	(16,314)
State	1,214	338	(484)
Foreign	(8,053)	(10,182)	(7,424)
Total deferred provision (benefit)	(8,536)	26,113	(24,222)
Total provision	21,368	65,981	$ 4,675
Income taxes, other disclosures
Liability for uncertain tax positions	4,600	$ 4,400
Unrecognized tax benefits that, if recognized, would affect the effective tax rate	4,600
Accrued interest and penalties	$ 100

INCOME TAXES - Unrecognized tax benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Activity of unrecognized tax benefits
Balance at the beginning of the year	$ 10,498	$ 11,195
Additions on tax positions for the current year	940	294
Additions on tax positions from prior years	346	14
Reduction in tax positions from prior year	(398)	(1,005)
Balance at the end of the year	$ 11,386	$ 10,498	$ 11,195
Recent tax legislation
U.S. federal statutory tax rate (as a percent)	21.00%	28.10%	35.00%
Deferred income tax assets:
Tax credit carryforwards	$ 14,785	$ 17,591
Net operating loss carryforwards	9,331	10,473
Customer advances	3,365	2,360
Allowance for doubtful accounts	4,287	4,336
Inventory reserve	11,503	11,735
Inventory capitalization	2,721	3,043
Accrued liabilities	5,953	9,174
Stock and deferred compensation	12,737	15,779
Other assets	3,157	3,641
Total deferred income tax assets	67,839	78,132
Valuation allowance	(23,377)	(27,007)
Net deferred income tax assets	44,462	51,125
Deferred income tax liabilities:
Depreciation	(4,866)	(6,322)
Amortization of intangible assets	(26,056)	(31,993)
Withholding tax on unrepatriated foreign earnings	(5,114)	(5,114)
State transition tax	(1,754)	(1,754)
Convertible debt	(6,443)	(9,198)
Prepaid expenses	(3,903)	(8,680)
Other liabilities	(308)	(459)
Total deferred income tax liabilities	(48,444)	(63,520)
Net deferred tax liabilities	(3,982)	(12,395)
Components of net deferred income tax asset
Long term deferred income tax asset, included in other assets	3,997	2,607
Long term deferred income tax liability	(7,979)	(15,002)
Net deferred tax liabilities	(3,982)	(12,395)
Components of current taxes receivable and payable and prepaid taxes
Current taxes receivable and prepaid taxes, included in prepaid expenses and other current assets	4,344	5,172
Current taxes payable, included in other accrued expenses and current liabilities	(3,094)	(8,314)
Net tax receivable	$ 1,250
Net tax payable		$ (3,142)

INCOME TAXES - Credit carryforwards (Details) $ in Millions	12 Months Ended
INCOME TAXES - Credit carryforwards (Details) $ in Millions	Jun. 30, 2019 USD ($)
Tax credit carry forward
Net aggregate increase in valuation allowance	$ 3.6
Federal
Tax credit carry forward
Tax credit carry forwards	15.0
State
Tax credit carry forward
Tax credit carry forwards	$ 4.7

INCOME TAXES - Effective income tax rate (Details)	12 Months Ended
INCOME TAXES - Effective income tax rate (Details)	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Effective income tax rate
Provision for income taxes at federal statutory rate (as a percent)	21.00%	28.10%	35.00%
Research and development tax credits (as a percent)	(1.60%)	(1.40%)	(2.50%)
Foreign income subject to tax at other than federal statutory rate (as a percent)	2.90%	(4.80%)	(20.00%)
Stock compensation excess tax benefit (as a percent)	(3.20%)	(8.80%)	(9.50%)
Officers' compensation (as a percent)	3.50%
Change in valuation allowance (as a percent)	(1.80%)	19.60%	10.40%
Unrecognized tax (benefit) expense (as a percent)	0.10%	(6.80%)	(1.40%)
Meals and entertainment (as a percent)	0.40%	1.50%	1.80%
Tax on foreign currency gains and losses (as a percent)	0.20%	(0.10%)	9.10%
State tax expense (as a percent)	1.60%	(1.30%)	(1.50%)
U.S. tax on foreign earnings (as a percent)	1.00%	2.50%	0.40%
Non-taxable gain from sale of business (as a percent)			(3.60%)
Mexico imputed income or expense (as a percent)	(0.50%)	(3.50%)	(2.00%)
Remeasurement of U.S. net deferred tax assets from 35% to 21% (as a percent)		16.00%
Deemed repatriation of non-U.S. earnings		1.022
Withholding tax on deemed repatriation foreign earnings (as a percent)		35.80%
Other (as a percent)	1.20%		1.90%
Effective income tax rate (as a percent)	24.80%	179.00%	18.10%

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Total debt, payments due by period
Total debt	$ 377,561
Less than 1 year	88,819
1-3 years	1,156
3-5 years	287,586
Operating leases, payments due by period
Operating leases	34,291
Less than 1 year	9,802
1-3 years	13,555
3-5 years	6,351
After 5 years	4,583
Purchase obligations, payments due by period
Purchase obligations	58,793
Less than 1 year	55,203
1-3 years	3,570
3-5 years	16
After 5 years	4
Acquisition-related obligations, payments due by period
Acquisition-related obligations	16,577
Less than 1 year	5,080
1-3 years	8,045
3-5 years	2,618
After 5 years	834
Defined benefit plan obligation, payments due by period
Defined benefit plan obligation	11,973
Less than 1 year	122
1-3 years	273
3-5 years	5,962
After 5 years	5,616
Total contractual obligations, payments due by period
Total contractual obligations	499,195
Less than 1 year	159,026
1-3 years	26,599
3-5 years	302,533
After 5 years	11,037
Other Commercial Commitments-letters of credit, payments due by period
Total other commercial commitments-letters of credit	98,428
Less than 1 year	50,266
1-3 years	24,295
3-5 years	2,280
After 5 years	21,587
Operating Leases
Rent expense	$ 10,000	$ 9,400	$ 10,200

COMMITMENTS AND CONTINGENCIES - Contingent Acquisition Obligations (Details) - USD ($) $ in Thousands	1 Months Ended	12 Months Ended
	Dec. 31, 2017	Jun. 30, 2019
Contingent Acquisition Obligations
Remaining maximum amount of contingent consideration		$ 28,200
Payments for contingent consideration		1,900
Beginning fair value		15,713
Additions		5,173
Change in fair value		(418)
Payments on contingent earn-out obligations		(3,891)
Ending fair value		$ 16,577
Mr. Chopra, Chief Executive Officer \| Deferred bonus
Indemnifications and Certain Employment-Related Contingencies
Bonus payment on or within 45 days of January 1, 2024 contingent upon continued employment through that date	$ 13,500
Maximum number of days after January 1, 2024, bonus payment due	45 days

STOCKHOLDERS' EQUITY (Details) - shares	12 Months Ended
STOCKHOLDERS' EQUITY (Details) - shares	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Share Repurchase Program
Number of shares repurchased	288,316	1,021,458	642,277
Number of shares available for repurchase	562,707

RELATED-PARTY TRANSACTIONS (Details) - ECIL-Rapiscan Security Products Limited - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
RELATED-PARTY TRANSACTIONS
Ownership interest in joint venture (as a percent)	36.00%
Initial investment		$ 0.1
Sales to joint venture	$ 4.0	4.6	$ 10.2
Receivables from joint venture	1.1	1.9
Maximum
RELATED-PARTY TRANSACTIONS
Equity earnings in joint venture	$ 0.1	$ 0.1	$ 0.1
Chairman and Chief Executive Officer
RELATED-PARTY TRANSACTIONS
Related party ownership percentage in equity method investee of the reporting entity	10.50%
Executive Vice President and President of the Company's Security division
RELATED-PARTY TRANSACTIONS
Related party ownership percentage in equity method investee of the reporting entity	4.50%
Chairman and Chief Executive Officer, and Executive Vice President and Director of the Company's Security division \| Maximum
RELATED-PARTY TRANSACTIONS
Collective voting power control, by entity and related parties, in equity method investment of entity (as a percent)	50.00%

EMPLOYEE BENEFIT PLANS - Employee Retirement Savings Plans (Details) - USD ($) $ in Millions	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Employee Benefit Plans
Contributions made by the entity to defined contribution plans	$ 6.4	$ 6.3	$ 5.0
Deferred Compensation Plan
Company contribution on deferred compensation plan	0.5	$ 0.5	$ 0.6
Assets held by Company	25.3
Liabilities held by Company	$ 24.9
Period to classify liabilities underfunded plans as noncurrent	12 months
Maximum
Deferred Compensation Plan
Percentage of salaries which can be deferred by eligible employees	80.00%
Percentage of bonuses which can be deferred by eligible employees	100.00%

EMPLOYEE BENEFIT PLANS - Change in Benefit Obligation (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Change in Benefit Obligation
Benefit obligation at beginning of year	$ 13,780	$ 13,726
Translation adjustment	(166)	57
Interest cost	457	467	$ 453
Service cost	223
Curtailment		(369)
Actuarial (gain) loss	(82)	61
Benefits paid	(153)	(162)
Benefit obligation at end of year	14,059	13,780	13,726
Change in Plan Assets
Fair value of plan assets at beginning of year	5,870	5,555
Translation adjustment	(183)	43
Actual return on plan assets	201	388
Benefits paid	(107)	(116)
Fair value of plan assets at end of year	5,781	5,870	5,555
Funded status and net amount recognized	(8,278)	(7,910)
Amount recognized in consolidated balance sheets consists of:
Investments	1,034	1,065
Accrued pension liability	(9,312)	(8,975)
Accumulated other comprehensive income	1,019	1,202
Net Periodic Benefit Costs
Interest cost	457	467	453
Service cost	223
Expected return on plan assets	(270)	(203)	(200)
Amortization of prior service cost	56	249	279
Recognized actuarial loss	103	305	317
Net periodic benefit cost	$ 569	$ 818	$ 849
Weighted average assumptions at year-end:
Discount rate (as a percent)	3.20%	3.40%
Expected return on plan assets (as a percent)	4.40%	4.70%
Rate of compensation increase (as a percent)	2.90%	3.00%

EMPLOYEE BENEFIT PLANS - Plan Assets and Investment Policy (Details)	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Plan Assets and Investment Policy
Expected Rate of Return (as a percent)	4.40%	4.70%
Combined
Plan Assets and Investment Policy
Proportion of Fair Value (as a percent)	100.00%	100.00%
Expected Rate of Return (as a percent)	4.40%	4.70%
Equity securities
Plan Assets and Investment Policy
Proportion of Fair Value (as a percent)	82.00%	83.00%
Expected Rate of Return (as a percent)	5.00%	6.00%
Debt securities
Plan Assets and Investment Policy
Proportion of Fair Value (as a percent)	17.00%	17.00%
Expected Rate of Return (as a percent)	1.00%	1.00%
Cash
Plan Assets and Investment Policy
Proportion of Fair Value (as a percent)	1.00%

EMPLOYEE BENEFIT PLANS - Projected Benefit Payments (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2020
Projected Benefit Payments
July 1, 2019 to June 30, 2020	$ 122
July 1, 2020 to June 30, 2021	135
July 1, 2021 to June 30, 2022	138
July 1, 2022 to June 30, 2023	159
July 1, 2023 to June 30, 2024	5,803
July 1, 2024 to June 30, 2029	$ 5,616
Company Contribution
Expected employer contribution for next fiscal year		$ 0
Maximum
Company Contribution
Weighted average contribution rate of pensionable salaries made by Company (as a percent)	1.00%

SEGMENT INFORMATION - By industry segment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Operations and identifiable assets by industry segment
Total revenues	$ 1,182,115	$ 1,089,286	$ 960,951
Income (loss) from operations	107,774	55,908	33,292
Segments assets	1,264,864	1,255,691	1,230,087
Capital expenditures	27,412	43,198	17,096
Depreciation and amortization	56,234	69,754	68,235
Security Division
Operations and identifiable assets by industry segment
Total revenues	747,550	690,001	555,197
Capital expenditures	15,830	14,479	10,436
Depreciation and amortization	39,788	55,630	53,924
Healthcare Division
Operations and identifiable assets by industry segment
Total revenues	188,477	189,387	200,034
Capital expenditures	1,372	1,540	1,797
Depreciation and amortization	5,426	4,910	6,495
Optoelectronics and Manufacturing Division
Operations and identifiable assets by industry segment
Total revenues	246,088	209,898	205,720
Capital expenditures	4,760	3,286	2,856
Depreciation and amortization	9,269	7,766	6,561
Corporate
Operations and identifiable assets by industry segment
Income (loss) from operations	(30,598)	(35,030)	(29,359)
Segments assets	79,498	66,453	64,959
Capital expenditures	5,450	23,893	2,007
Depreciation and amortization	1,751	1,448	1,255
Operating Segments \| Security Division
Operations and identifiable assets by industry segment
Total revenues	747,550	690,001	555,197
Income (loss) from operations	97,426	84,106	35,256
Segments assets	793,810	804,527	785,230
Operating Segments \| Healthcare Division
Operations and identifiable assets by industry segment
Total revenues	188,477	189,387	200,034
Income (loss) from operations	12,277	(14,609)	2,624
Segments assets	157,639	167,611	186,021
Operating Segments \| Optoelectronics and Manufacturing Division
Operations and identifiable assets by industry segment
Total revenues	288,630	254,485	236,100
Income (loss) from operations	29,519	22,024	23,792
Segments assets	237,851	220,373	196,567
Eliminations
Operations and identifiable assets by industry segment
Total revenues	(42,542)	(44,587)	(30,380)
Income (loss) from operations	(850)	(583)	979
Segments assets	(3,934)	(3,273)	(2,690)
Eliminations \| Optoelectronics and Manufacturing Division
Operations and identifiable assets by industry segment
Total revenues	$ 42,542	$ 44,587	$ 30,380

SEGMENT INFORMATION - By geographical area (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2017
Revenues and identifiable assets by geographical area
Total net revenues	$ 1,182,115	$ 1,089,286	$ 960,951
Long lived tangible assets	179,906	168,173	181,610
Long lived assets	619,968	602,387	542,190
Total Americas
Revenues and identifiable assets by geographical area
Total net revenues	682,345	684,209	613,587
Long lived tangible assets	121,028	119,752	133,254
Long lived assets	503,789	499,150	450,241
United States
Revenues and identifiable assets by geographical area
Total net revenues	565,316	552,677	478,791
Long lived tangible assets	117,414	103,582	65,046
Long lived assets	476,314	457,516	380,200
Mexico
Revenues and identifiable assets by geographical area
Total net revenues	71,225	106,472	119,910
Long lived tangible assets	436	12,143	63,914
Long lived assets	436	12,143	63,914
Other Americas
Revenues and identifiable assets by geographical area
Total net revenues	45,804	25,060	14,886
Long lived tangible assets	3,178	4,027	4,294
Long lived assets	27,039	29,491	6,127
Total EMEA
Revenues and identifiable assets by geographical area
Total net revenues	322,781	257,603	219,005
Long lived tangible assets	39,115	31,909	33,847
Long lived assets	93,133	84,584	75,187
United Kingdom
Revenues and identifiable assets by geographical area
Total net revenues	292,297	231,909	185,803
Long lived tangible assets	30,282	21,916	23,396
Long lived assets	80,896	71,126	61,319
Other Europe, Middle East and Africa
Revenues and identifiable assets by geographical area
Total net revenues	30,484	25,694	33,202
Long lived tangible assets	8,833	9,993	10,451
Long lived assets	12,237	13,458	13,868
Asia-Pacific
Revenues and identifiable assets by geographical area
Total net revenues	176,989	147,474	128,359
Long lived tangible assets	19,763	16,512	14,509
Long lived assets	23,046	18,653	16,762
Geographic region
Revenues and identifiable assets by geographical area
Total net revenues	1,182,115	1,089,286	960,951
Geographic region \| Total Americas
Revenues and identifiable assets by geographical area
Total net revenues	692,452	693,430	618,926
Geographic region \| United States
Revenues and identifiable assets by geographical area
Total net revenues	575,423	561,898	484,130
Geographic region \| Mexico
Revenues and identifiable assets by geographical area
Total net revenues	71,225	106,472	119,910
Geographic region \| Other Americas
Revenues and identifiable assets by geographical area
Total net revenues	45,804	25,060	14,886
Geographic region \| Total EMEA
Revenues and identifiable assets by geographical area
Total net revenues	322,995	257,765	219,547
Geographic region \| United Kingdom
Revenues and identifiable assets by geographical area
Total net revenues	292,511	232,071	186,345
Geographic region \| Other Europe, Middle East and Africa
Revenues and identifiable assets by geographical area
Total net revenues	30,484	25,694	33,202
Geographic region \| Asia-Pacific
Revenues and identifiable assets by geographical area
Total net revenues	209,210	182,678	152,858
Elimination
Revenues and identifiable assets by geographical area
Total net revenues	(42,542)	(44,587)	(30,380)
Elimination \| Total Americas
Revenues and identifiable assets by geographical area
Total net revenues	10,107	9,221	5,339
Elimination \| United States
Revenues and identifiable assets by geographical area
Total net revenues	10,107	9,221	5,339
Elimination \| Total EMEA
Revenues and identifiable assets by geographical area
Total net revenues	214	162	542
Elimination \| United Kingdom
Revenues and identifiable assets by geographical area
Total net revenues	214	162	542
Elimination \| Asia-Pacific
Revenues and identifiable assets by geographical area
Total net revenues	$ 32,221	$ 35,204	$ 24,499

STOCKHOLDERS' EQUITY	12 Months Ended
STOCKHOLDERS' EQUITY	Jun. 30, 2019
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY	11. STOCKHOLDERS’ EQUITY Stock Repurchase Program Our Board of Directors authorized a Common Stock repurchase program. During fiscal 2017, 2018 and 2019, we repurchased 642,277 shares, 1,021,458 shares, and 288,316 shares, respectively, under our then-current program(s). As of June 30, 2019, 562,707 shares were available for repurchase under our current program. Upon repurchase, the shares were restored to the status of authorized but unissued shares in the accompanying consolidated financial statements.

INCOME TAXES - Net operating loss carryforwards (Details) $ in Millions	Jun. 30, 2019 USD ($)
State
Operating loss carry forwards
Net operating loss carry forwards	$ 34.1
Foreign
Operating loss carry forwards
Net operating loss carry forwards	$ 30.9

SEGMENT INFORMATION (Details)	12 Months Ended
SEGMENT INFORMATION (Details)	Jun. 30, 2019 segment
SEGMENT INFORMATION
Number of identifiable industry segments	3