Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2018	Apr. 27, 2018
Document and Entity Information
Entity Registrant Name	OSI SYSTEMS INC
Entity Central Index Key	0001039065
Document Type	10-Q
Document Period End Date	Mar. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		18,072,644
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
CURRENT ASSETS:
Cash and cash equivalents	$ 194,001	$ 169,650
Accounts receivable, net	216,680	206,526
Inventories	304,293	248,510
Prepaid expenses and other current assets	61,362	28,314
Total current assets	776,336	653,000
Property and equipment, net	113,667	141,539
Goodwill	300,716	242,129
Intangible assets, net	147,057	118,450
Deferred income taxes	2,334	34,897
Other assets	55,921	40,072
Total assets	1,396,031	1,230,087
CURRENT LIABILITIES:
Bank lines of credit	228,000	103,000
Current portion of long-term debt	2,252	2,396
Accounts payable	101,571	76,121
Accrued payroll and related expenses	35,248	34,621
Advances from customers	70,115	37,934
Other accrued expenses and current liabilities	121,295	92,062
Total current liabilities	558,481	346,134
Long-term debt	247,029	241,750
Deferred income taxes	41,642	20,681
Other long-term liabilities	66,493	52,309
Total liabilities	913,645	660,874
Commitments and contingencies (Note 9)
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, 18,689,568 shares at June 30, 2017 and 18,065,430 shares at March 31, 2018	166,633	222,529
Retained earnings	329,631	363,872
Accumulated other comprehensive loss	(13,878)	(17,188)
Total stockholders' equity	482,386	569,213
Total liabilities and stockholders' equity	$ 1,396,031	$ 1,230,087

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 31, 2018	Jun. 30, 2017
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
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	18,065,430	18,689,568
Common stock, shares outstanding	18,065,430	18,689,568

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Net revenues:
Products	$ 182,484	$ 168,238	$ 529,530	$ 488,285
Services	84,815	76,908	272,430	220,264
Total net revenues	267,299	245,146	801,960	708,549
Cost of goods sold:
Products	126,419	116,862	363,063	348,500
Services	43,295	42,256	148,411	123,339
Total cost of goods sold	169,714	159,118	511,474	471,839
Gross profit	97,585	86,028	290,486	236,710
Operating expenses:
Selling, general and administrative	59,846	49,431	175,591	144,528
Research and development	15,934	14,395	46,122	39,811
Impairment, restructuring and other charges	14,062	2,508	23,489	21,885
Total operating expenses	89,842	66,334	245,202	206,224
Income from operations	7,743	19,694	45,284	30,486
Interest expense, net	(4,783)	(2,583)	(14,317)	(5,716)
Other income, net	158	2,094	161	2,088
Income before income taxes	3,118	19,205	31,128	26,858
Provision for income taxes	565	5,186	65,369	7,329
Net income (loss)	$ 2,553	$ 14,019	$ (34,241)	$ 19,529
Earnings (loss) per share:
Basic (in dollars per share)	$ 0.14	$ 0.74	$ (1.82)	$ 1.03
Diluted (in dollars per share)	$ 0.13	$ 0.72	$ (1.82)	$ 1.00
Shares used in per share calculation:
Basic (in shares)	18,569	18,913	18,773	18,964
Diluted (in shares)	19,146	19,515	18,773	19,585

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Net income (loss)	$ 2,553	$ 14,019	$ (34,241)	$ 19,529
Other comprehensive income (loss):
Foreign currency translation adjustment	1,366	1,697	3,272	(3,303)
Other	103	15	38	134
Other comprehensive income (loss)	1,469	1,712	3,310	(3,169)
Comprehensive income (loss)	$ 4,022	$ 15,731	$ (30,931)	$ 16,360

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net income (loss)	$ (34,241)	$ 19,529
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	55,368	49,042
Stock based compensation	17,754	20,262
Provision for losses on accounts receivable	1,054	863
Deferred income taxes	50,775	101
Amortization of debt discount and issuance costs	6,426	779
Impairment charges	7,181	5,418
Gain on sale of business		(2,110)
Other	1,071	222
Changes in operating assets and liabilities-net of business acquisitions:
Accounts receivable	7,131	(20,677)
Inventories	(48,703)	26,410
Prepaid expenses and other assets	(22,121)	(6,017)
Accounts payable	19,522	6,733
Advances from customers	32,152	(27,417)
Deferred revenues	6,964	(16,582)
Other	15,431	(4,385)
Net cash provided by operating activities	115,764	52,171
Cash flows from investing activities:
Acquisition of property and equipment	(36,432)	(11,979)
Acquisition of businesses, net of cash acquired	(103,184)	(191,238)
Net proceeds from sale of business		12,793
Acquisition of intangible and other assets	(2,250)	(4,034)
Net cash used in investing activities	(141,866)	(194,458)
Cash flows from financing activities:
Net borrowings (payments) on bank lines of credit	125,000	(32,000)
Proceeds from long-term debt	626	280,261
Payments on long-term debt	(1,933)	(2,716)
Proceeds from exercise of stock options and employee stock purchase plan	6,608	9,953
Repurchase of common stock	(59,684)	(48,453)
Taxes paid related to net share settlements of equity awards	(20,574)	(9,922)
Net cash provided by financing activities	50,043	197,123
Effect of exchange rate changes on cash	410	(734)
Net increase in cash and cash equivalents	24,351	54,102
Cash and cash equivalents-beginning of period	169,650	104,370
Cash and cash equivalents-end of period	194,001	158,472
Supplemental disclosure of cash flow information:
Interest	6,508	4,286
Income taxes	$ 21,728	$ 16,108

Basis of Presentation

9 Months Ended

Mar. 31, 2018

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

Basis of Presentation

The condensed consolidated financial statements include the accounts of OSI Systems, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The condensed consolidated financial statements have been prepared by management in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and in conjunction with the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures required for annual financial statements have been condensed or excluded in accordance with SEC rules and regulations applicable to interim unaudited financial statements. Accordingly, the condensed consolidated financial statements do not include all of the information and footnotes required by GAAP for audited financial statements. In the opinion of management, the condensed consolidated financial statements reflect all adjustments of a normal and recurring nature that are considered necessary for a fair presentation of the results for the interim periods presented. These condensed consolidated financial statements and the accompanying notes should be read in conjunction with the audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2017. The results of operations for the nine months ended March 31, 2018 are not necessarily indicative of the operating results to be expected for the full 2018 fiscal year or any future periods.

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, market values for inventories reported at lower of cost or net realizable value, stock-based employee compensation expense, income taxes, accrued product 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 will likely differ from these estimates and could differ materially.

Per Share Computations

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. For each period presented where we reported a net loss, the effect of all potentially dilutive securities would be antidilutive, and, as a result, diluted net loss per common share is the same as basic net loss per common share. Stock options and stock awards to purchase 0.3 million shares of common stock for the three months ended March 31, 2018, were excluded from the calculation because to include such options and awards would have been antidilutive. During the nine months ended March 31, 2018, all stock options and stock awards were excluded. During the three months and nine months ended March 31, 2017, the number of stock options and stock awards excluded from the calculation because they were antidilutive was de minimis. Prior to our adoption of ASU 2016-09 in the fourth quarter of fiscal 2017, we included tax benefits in assessing whether equity awards were dilutive and in our calculations of weighted average diluted shares under the treasury stock method. The underlying equity component of the 1.25% convertible senior notes due 2022 (the “Notes”) discussed in Note 6 to the condensed consolidated financial statements will have no impact on diluted earnings per share until the average price of our common stock exceeds 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):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Net income (loss) available to common stockholders	$	14,019	$	2,553	$	19,529	$	(34,241	)


Weighted average shares outstanding—basic	18,913		18,569		18,964		18,773

Dilutive effect of equity awards	602		577		621		—
Weighted average shares outstanding—diluted	19,515		19,146		19,585		18,773

Basic earnings (loss) per share	$	0.74	$	0.14	$	1.03	$	(1.82	)
Diluted earnings (loss) per share	$	0.72	$	0.13	$	1.00	$	(1.82	)

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 $194.0 million at March 31, 2018. Nearly all of this amount was held by our subsidiaries primarily in Mexico, United Kingdom, Malaysia, Puerto Rico, and Singapore, and to a lesser extent in India, Canada, Germany and China 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.

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. There were no assets where “Level 3” valuation techniques were used. As further discussed in Note 9 to the condensed 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, 2017 and March 31, 2018 are categorized as follows (in thousands):

	June 30, 2017								March 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Equity securities	$	254	$	—	$	—	$	254	$	17	$	—	$	—	$	17
Insurance company contracts	—		26,940		—		26,940		—		31,384		—		31,384
Interest rate swap agreement	—		20		—		20		—		22		—		22

Total assets	$	254	$	26,960	$	—	$	27,214	$	17	$	31,406	$	—	$	31,423

Liabilities—contingent payment obligations	$	—	$	—	$	11,840	$	11,840	$	—	$	—	$	16,667	$	16,667

Derivative Instruments and Hedging Activity

Our use of derivatives consists of an interest rate swap agreement. The interest rate swap agreement was entered into to improve the predictability of cash flows from interest payments related to variable, LIBOR based debt for the duration of the term loan described in Note 6. The interest rate swap matures in October 2019. The interest rate swap is considered an effective cash flow hedge and, as a result, the net gains or losses on such instrument were reported as a component of Other comprehensive income (loss) in the consolidated financial statements and will be reclassified to the statement of operations when the hedge transaction settles.

Revenue Recognition

Product Sales. We recognize revenue from sales of products upon shipment when title and risk of loss passes and when terms are fixed and collection is probable. In an instance where terms of a product sale include subjective customer acceptance criteria, revenue is deferred until we have achieved the acceptance criteria unless customer acceptance terms are perfunctory or inconsequential.

Service Revenue. Revenue from services includes after-market services, installation and implementation of products and turnkey security screening services. Generally, revenue from services is recognized when 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.

Multiple-Deliverable Arrangements. We enter into certain agreements with customers for 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. The timetable for fulfilment of each of these deliverables can range from completion in a short amount of time and entirely within a single reporting period to completion over several reporting periods. The general timing of revenue recognition for each deliverable 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).

Multiple-deliverable arrangements require that consideration be allocated to each deliverable based on its relative selling price and recognized as revenue when the revenue recognition criteria for each deliverable has been met. The arrangement is separated into more than one unit of accounting if the delivered item has value to the customer on a stand-alone basis; and with respect to an arrangement including a general right of return relative to the delivered item, delivery or performance of the undelivered item is considered probable and substantially within our control. If these criteria are not met, the arrangement is accounted for as one unit of accounting and the recognition of revenue is deferred until delivery is complete or is recognized ratably over the contract period as appropriate. If these criteria are met, consideration is allocated at inception of the arrangement to all deliverables on the basis of the relative selling price. We have generally met these criteria for multiple-deliverable arrangements as all of the deliverables in our arrangements have stand-alone value in that either the customer can resell that item or another vendor sells that item separately. We typically do not offer a general right of return in our multiple-deliverable arrangements.

The selling price of each deliverable is determined by establishing vendor-specific objective evidence (“VSOE”), third party evidence (“TPE”) or best estimate of selling price (“BESP”) for each delivered item. Generally, either VSOE or TPE is determinable; however, in the few instances where neither VSOE nor TPE is determinable, we utilize our BESP in order to allocate consideration to those deliverables. BESP for our product deliverables is determined by utilizing a weighted average price approach. BESP for our service deliverables is determined primarily by utilizing a cost-plus margin approach, though in some instances average price per hour is used.

We often provide a guarantee to support our performance under multiple-deliverable arrangements. 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.

Proportional Performance. In connection with our previous agreement with the Servicio de Administración Tributaria (“SAT”) in Mexico, in effect through January 13, 2018, revenue had been recognized based upon proportional performance, measured by the actual number of labor hours incurred divided by the total estimated number of labor hours for the project. The impact of changes in the estimated labor hours to service the agreement was reflected in the period during which the change became known. In the SAT agreement, customer billings were submitted for several separate deliverables, including monthly services, activation of services, training of customer personnel and consultation on the design and location of security scanning operations, among others. In the event that payments received from the customer exceeded revenue recognition, deferred revenue was recorded. In January 2018, we entered into a new, two-year contract with SAT to continue providing security screening services. Revenue under the new contract is recognized as Service revenues as services are performed.

New Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standards update (“ASU”) amending revenue recognition requirements for multiple deliverable revenue arrangements. This update provides guidance on how revenue is recognized for the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for the goods or services. This determination is made in five steps: (i) identify the contract with the customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the entity satisfies a performance obligation. The ASU is effective for fiscal years beginning after December 15, 2017 and for interim reporting periods within such fiscal years. We are currently evaluating our business and contracts to determine any changes to accounting policies or processes necessary to adopt the requirements of the new standard and are in the process of selecting a transition method. Our preliminary evaluation of the impact of this ASU is that it will not have a material impact on our financial condition or results of operations. However, the adoption of this ASU will result in expanded disclosures in first quarter of fiscal 2019.

In January 2016, FASB issued an ASU which affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. This guidance retains the current accounting for classifying and measuring investments in debt securities and loans, but requires equity investments to be measured at fair value with subsequent changes recognized in net income, except for those accounted for under the equity method or requiring consolidation. The guidance also changes the accounting for investments without a readily determinable fair value and that do not qualify for the practical expedient permitted by the guidance to estimate fair value. A policy election can be made for these investments whereby estimated fair value may be measured at cost and adjusted in subsequent periods for any impairment or changes in observable prices of identical or similar investments. This ASU is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within such fiscal years. We have not yet adopted this ASU and are currently evaluating the impact it may have on our financial condition and results of operations.

In February 2016, the FASB issued an ASU which affects the accounting for leases. The guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months. The amendment also will require qualitative and quantitative disclosures designed to give financial statement users 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 with early adoption permitted. We have not yet adopted this ASU and are currently evaluating the impact it may have on our financial condition and results of operations.

In August 2016, the FASB issued an ASU to address the diverse classifications being applied to cash receipts and payments in reporting companies’ cash flow statements. This ASU addresses eight specific cash flow issues to reduce divergence in practice. This ASU is effective for fiscal years beginning after December 15, 2017, including interim reporting periods within such fiscal years. We have not yet adopted this ASU and are currently evaluating the impact it may have on our financial condition and results of operations.

Recently Adopted Accounting Pronouncements

In January 2017, FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment, which eliminates Step 2, the computation of the implied fair value of goodwill to determine the amount of impairment, from the goodwill impairment test. In computing the implied fair value of goodwill for Step 2 under current accounting standards, we calculate the fair value of our assets and liabilities as if acquired or assumed in a business combination. Under the amendments in this update, we will determine the amount of goodwill impairment by comparing the Step 1 fair value of a reporting unit with its carrying amount. To the extent the carrying value of a reporting unit exceeds its Step 1 fair value, a goodwill impairment charge is recognized. The new standard is effective for fiscal years beginning after December 15, 2019 with early adoption permitted. We elected to early adopt the new standard effective October 1, 2017, because the ASU significantly simplifies the evaluation of goodwill for impairment. The adoption of this standard did not have an impact on our financial condition and results of operations.

U.S. Tax Reform

On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the “Tax Act”). In connection with the enactment of the Tax Act, we recognized a charge of $56 million in the second quarter of fiscal 2018. The charge included our current estimate of the tax on accumulated overseas profits and the revaluation of deferred tax assets and liabilities. As we have a June 30 fiscal year end, the Tax Act’s lower corporate tax rate will be phased in, and is expected to result in a U.S. statutory federal tax rate of approximately 28% for the fiscal year ending June 30, 2018. The provisional estimates are based on our initial analysis of the Tax Act. The changes included in the Tax Act are broad and complex. The final impacts of the Tax Act may differ materially from the amounts estimated due to, among other things, changes in interpretation of the Tax Act, any legislative action that may be taken to address questions arising due to the Tax Act, any changes in accounting standards for income taxes or related interpretations in response to the Tax Act or any updates or changes to estimates we have utilized to calculate the impacts, including impacts from changes to current year earnings estimates and foreign exchange rates. The SEC has issued rules, including Staff Accounting Bulletin 118 (“SAB 118”), that allow for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. We currently anticipate finalizing and recording any resulting adjustments during the 2018 calendar year.

Business Combinations

9 Months Ended

Mar. 31, 2018

Business Combinations

Business Combinations

2. Business Combinations

Under ASU 805, the acquisition method of accounting requires us to record assets acquired less liabilities assumed in 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 assets acquired less liabilities assumed 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, we may record adjustments to the assets acquired and liabilities assumed, with the corresponding adjustments to goodwill. Upon the conclusion of the measurement period, any subsequent adjustments are included in earnings.

Acquisition of Explosive Trace Detection Business

On July 7, 2017, we acquired the global explosive trace detection business (“ETD”) from Smiths Group plc. We financed the total purchase price of $80.5 million with a combination of cash on hand and borrowing under our existing revolving bank line of credit.

Due to the timing and complexity of the ETD transaction, we are in the process of finalizing our valuation of the assets acquired and liabilities assumed. As of March 31, 2018, the valuation of certain assets and liabilities of ETD were preliminary in nature as we are awaiting the conclusion of the valuation of certain assets by a third party and resolution of carving out certain assets and liabilities from the prior owners of the business. As a result, the ETD acquisition could necessitate the use of the full one year measurement period to establish the fair values of assets and liabilities as of the acquisition date, including intangible assets, goodwill, accounts receivable, inventory, deferred revenue, property and equipment, contractual obligations, income tax obligations, and certain reserves. Changes in the fair values of assets and liabilities from what was previously reported in our condensed consolidated financial statements are primarily a result of additional information that impacted our estimates of fair value and conformance to our accounting policies. During the quarter ended March 31, 2018, goodwill decreased by $0.2 million, driven primarily by reduction of accounts receivable reserve of $1.2 million offset by reduction in fair value of inventory of $0.8 million, and an increase of $0.2 million in accrued liabilities. Further potential adjustments made could be material in relation to these preliminary values below (amounts in thousands):

Cash and cash equivalents	$	4
Accounts receivable, net	13,358
Inventories	11,456
Property and equipment	1,599
Intangible assets	30,040
Other long-term assets	297
Accounts payable	(4,784		)
Accrued payroll and related expenses	(2,356		)
Deferred revenues — current	(1,629		)
Accrued warranties	(2,068		)
Other accrued expenses and current liabilities	(1,582		)

Net assets acquired	44,335
Goodwill	36,132

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, which includes a preliminary valuation prepared by a third party. The fair value attributed to the intangible assets acquired was based on preliminary estimates, assumptions and other information compiled by management, and valuations that utilized 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	Fair
	Lives	Value
Amortizable assets:
Developed technology	10 years	$	13,220
Customer relationships	8 years	12,920
Backlog	2 years	3,500

Total amortizable assets		29,640
Non-amortizable asset — IPR&D		400

Total intangible assets		$	30,040

The condensed consolidated statements of operations include $17.6 million of revenue and $3.1 million of income from operations from ETD for the three months ended March 31, 2018, and $59.0 million of revenue and $9.8 million of income from operations from ETD for the period from July 7, 2017 to March 31, 2018.

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Revenues	$	260,695	$	267,299	$	763,612	$	801,960

Income from operations	$	21,003	$	7,743	$	38,772	$	45,284

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 three and nine months ended March 31, 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.

Acquisition of American Science and Engineering

On September 9, 2016, we acquired by merger 100% ownership of American Science and Engineering, Inc. (“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 borrowing 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.

Other Acquisitions

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.

On January 12, 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, $10.9 million was attributed to goodwill, and $3.2 million was attributed to net assets acquired. The acquisition was financed with cash on hand and borrowing under our existing revolving bank line of credit.

Balance Sheet Details

9 Months Ended

Mar. 31, 2018

Balance Sheet Details

Balance Sheet Details

3. Balance Sheet Details

The following tables provide details of selected balance sheet accounts (in thousands):

	June 30, 2017			March 31, 2018

Accounts receivable	$	216,089		$	226,217
Less allowance for doubtful accounts	(9,563		)	(9,537		)

Accounts receivable, net	$	206,526		$	216,680

	June 30, 2017		March 31, 2018

Raw materials	$	129,645	$	157,434
Work-in-process	65,454		85,273
Finished goods	53,411		61,586

Inventories	$	248,510	$	304,293

	June 30,			March 31,
	2017			2018
Land, buildings, civil works and improvements	$	171,335		$	73,893
Leasehold improvements	9,025			9,317
Equipment and tooling	166,991			115,220
Furniture and fixtures	3,371			3,429
Computer equipment	17,991			18,801
Computer software	17,303			19,146
Computer software implementation in process	2,590			3,344
Construction in process	1,049			1,239

Total	389,655			244,389
Less accumulated depreciation and amortization	(248,116		)	(130,722		)

Property and equipment, net	$	141,539		$	113,667

In September 2017, we purchased the AS&E facility in Billerica, MA for $19.8 million. Depreciation expense was approximately $13.3 million and $5.4 million for the three months ended March 31, 2017 and 2018, respectively, and approximately $39.9 million and $38.4 million for the nine months ended March 31, 2017 and 2018, respectively.

In January 2018, we entered into a new two-year agreement with the Mexican government to continue providing security screening services. Upon inception of the new contract, we transferred certain fixed assets to the customer, and this remaining cost to obtain the contract is amortized on a straightline basis as corresponding revenues are recognized. As of March 31, 2018, $14.7 million and $11.6 million are recorded within Prepaid expenses and other current assets and Other assets, respectively.

Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets

Goodwill and Intangible Assets

4. Goodwill and Intangible Assets

The changes in the carrying value of goodwill for the nine month period ended March 31, 2018 were as follows (in thousands):

	Security		Healthcare		Optoelectronics and Manufacturing		Consolidated
Balance as of June 30, 2017	$	155,083	$	40,129	$	46,917	$	242,129
Goodwill acquired or adjusted during the period	43,106		—		14,080		57,186
Foreign currency translation adjustment	259		248		894		1,401

Balance as of March 31, 2018	$	198,448	$	40,377	$	61,891	$	300,716

Intangible assets consisted of the following (in thousands):

	June 30, 2017							March 31, 2018
	Gross							Gross
	Carrying		Accumulated			Intangibles		Carrying		Accumulated			Intangibles
	Value		Amortization			Net		Value		Amortization			Net
Amortizable assets:
Software development costs	$	26,753	$	(6,291	)	$	20,462	$	27,777	$	(8,709	)	$	19,068
Patents	8,386		(1,676		)	6,710		8,757		(1,603		)	7,154
Developed technology	37,446		(5,530		)	31,916		50,637		(8,902		)	41,735
Customer relationships/backlog	38,289		(7,667		)	30,622		63,830		(14,078		)	49,752

Total amortizable assets	110,874		(21,164		)	89,710		151,001		(33,292		)	117,709
Non-amortizable assets:
Trademarks and trade names	25,540		—			25,540		25,748		—			25,748
IPR&D	3,200		—			3,200		3,600		—			3,600

Intangible assets, net	$	139,614	$	(21,164	)	$	118,450	$	180,349	$	(33,292	)	$	147,057

Amortization expense related to intangible assets was $3.6 million and $5.1 million for the three month periods ended March 31, 2017 and 2018, respectively. For the nine months ended March 31, 2017 and 2018, amortization expense was $9.1 million and $13.8 million, respectively. At March 31, 2018, the estimated future amortization expense was as follows (in thousands):

2018 (remaining 3 months)	$	5,522
2019	21,600
2020	18,823
2021	18,347
2022	13,840
Thereafter, including assets that have not yet begun to be amortized	39,577

Total	$	117,709

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. For the three months ended March 31, 2018, we capitalized software development costs in the amount of $1.0 million; while during the three months ended March 31, 2017, we did not capitalize any software development costs. For the nine-month periods ended March 31, 2017 and 2018, we capitalized software development costs in the amount of $2.0 million and $1.3 million, respectively.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Impairment, restructuring and other charges

9 Months Ended

Mar. 31, 2018

Impairment, restructuring and other charges

Impairment, restructuring and other charges

5. Impairment, restructuring and other charges

Impairment

During the nine months ended March 31, 2018, we abandoned (i) a product line in our Security division that became redundant as a result of the ETD acquisition, (ii) two non-core product lines in our Healthcare division, and (iii) certain trademarks in our Optoelectronics and Manufacturing division that are no longer used. As a result, $7.1 million of assets, including intangible and fixed assets, were written off as we determined that these assets have no value and were permanently impaired. $4.0 million of this was incurred during the three months ended March 31, 2018 and related to the abandonment of a product line in our Healthcare division that we no longer sell.

Restructuring and Other Charges

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

Beginning in fiscal 2017 we incurred professional fees to complete the acquisition of ETD. Such costs totaled $2.1 million through the third quarter of fiscal 2018. This included $0.2 million and $1.1 million during the three and nine months ended March 31, 2018, respectively. During the three and nine months ended March 31, 2018, we accrued $3.8 million and $8.1 million, respectively, for legal and estimated settlement costs. For the three and nine months ended March 31, 2018, we incurred charges of $0.4 million and $1.2 million, respectively, for facility consolidation and employee terminations.

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

	Three Months Ended March 31, 2017
	Security Division		Healthcare Division		Optoelectronics and Manufacturing Division		Corporate			Total
Acquisition-related costs	$	—	$	—	$	—	$	140		$	140
Employee termination costs	345		182		52		—			579
Facility closures/consolidation	650		634		194		—			1,478
Other charges (reversals)	—		297		19		(5		)	311

Total expensed	$	995	$	1,113	$	265	$	135		$	2,508

	Three Months Ended March 31, 2018
	Security Division		Healthcare Division			Optoelectronics and Manufacturing Division		Corporate		Total
Impairment charges	$	91	$	3,946		$	—	$	—	$	4,037
Acquisition-related costs	—		—			—		77		77
Employee termination costs	18		3			269		—		290
Facility closures/consolidation	117		(8		)	—		—		109
Legal and accrued settlement costs	—		5,766			—		3,783		9,549

Total expensed	$	226	$	9,707		$	269	$	3,860	$	14,062

	Nine Months Ended March 31, 2017
	Security Division		Healthcare Division		Optoelectronics and Manufacturing Division			Corporate		Total
Impairment charges	$	5,332	$	86	$	—		$		$	5,418
Acquisition-related costs	810		—		—			3,353		4,163
Employee termination costs	8,152		1,262		383			—		9,797
Facility closures/consolidation	829		703		218			—		1,750
Other charges (reversals)	7		297		(48		)	501		757

Total expensed	$	15,130	$	2,348	$	553		$	3,854	$	21,885

	Nine Months Ended March 31, 2018
	Security Division		Healthcare Division		Optoelectronics and Manufacturing Division		Corporate		Total
Impairment charges	$	1,581	$	4,525	$	1,075	$	—	$	7,181
Acquisition-related costs	—		—		—		1,258		1,258
Employee termination costs	348		3		415		—		766
Facility closures/consolidation	198		235		—		—		433
Legal and accrued settlement costs	—		9,966		—		3,885		13,851

Total expensed	$	2,127	$	14,729	$	1,490	$	5,143	$	23,489

The changes in the accrual for restructuring and other charges for the nine-month period ended March 31, 2018 were as follows (in thousands):

	Acquisition- related Costs			Employee Termination Costs			Facility Closure/ Consolidation Cost			Legal Charges			Total
Balance as of June 30, 2017	$	—		$	175		$	291		$	—		$	466
Restructuring and other charges	1,258			767			433			13,851			16,309
Payments and other adjustments	(1,258		)	(840		)	(315		)	(5,737		)	(8,150		)

Balance as of March 31, 2018	$	—		$	102		$	409		$	8,114		$	8,625

Borrowings

9 Months Ended

Mar. 31, 2018

Borrowings

Borrowings

6. Borrowings

Revolving Credit Facility

In December 2016, we entered into an amendment to our revolving credit facility, which, among other things, increased the aggregate committed amount available to us from $450 million to $525 million and extended the maturity date to December 2021. 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 1.50% as of March 31, 2018, but this margin can range from 1.25% to 2.0% 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 0.20% as of March 31, 2018, but this fee can range from 0.20% to 0.30% 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 and certain of our subsidiaries’ assets. The agreement contains various representations and warranties, affirmative, negative and financial covenants and conditions of default. As of March 31, 2018, there was $228.0 million of borrowings outstanding under the revolving credit facility and $33.3 million outstanding under the letters of credit sub facility. The amount available to borrow under the credit facility as of March 31, 2018 was $263.7 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 March 31, 2018, 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.

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 three months and nine months ended March 31, 2018 was $3.1 million and $9.2 million, respectively, which consists of $0.9 million and $2.7 million of contractual interest expense, $1.9 million and $5.6 million of debt discount amortization and $0.3 million and $0.9 million of amortization of debt issuance costs. As of March 31, 2018, the unamortized debt discount was $38.9 million, 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 $5.2 million as of March 31, 2018 is amortized on a straight-line basis, which approximates the effective interest method, over the life of the Notes. Based on our March 29, 2018 stock price of $65.27 per share, the “if-converted” value of the Notes did not exceed the principal amount.

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 March 31, 2018, $60.3 million was outstanding under these lines-of-credit facilities. As of March 31, 2018, the total amount available under these credit facilities was $12.9 million.

In September 2012, we entered into a seven year term loan agreement for $11.1 million to fund the acquisition of land and a building in the state of Washington. The loan, which bears interest at LIBOR plus 1.25%, is payable on a monthly basis over seven years. Concurrent with entering into the floating rate loan, we entered into an interest rate swap agreement that effectively locks the interest rate of the loan to 2.2% per annum for the term of the loan.

Long-term debt consisted of the following (in thousands):

	June 30, 2017			March 31, 2018
1.25% convertible notes due 2022:
Principal amount	$	287,500		$	287,500
Unamortized discount	(42,602		)	(37,045		)
Unamortized debt issuance costs	(6,073		)	(5,191		)

1.25% convertible notes due 2022, net of unamortized discount and debt issuance costs	238,825			245,264
Term loans	3,700			2,511
Other long-term debt	1,621			1,506

	244,146			249,281
Less current portion of long-term debt	(2,396		)	(2,252		)

Long-term portion of debt	$	241,750		$	247,029

Stockholders' Equity

9 Months Ended

Mar. 31, 2018

Stockholders' Equity

Stockholders' Equity

7. Stockholders’ Equity

Stock-based Compensation

On December 11, 2017, our stockholders approved our Amended and Restated 2012 Incentive Award Plan (the “2012 Plan”), which, among other things, increased the maximum number of shares of common stock which may be issued under such plan by 1.6 million shares. As of March 31, 2018, we maintained the following share based employee compensation plans: the 2012 Plan and the Amended and Restated 2006 Equity Participation Plan (“2006 Plan”). No further grants may be made under the 2006 Plan. In addition, pursuant to the acquisition of AS&E, we assumed two share based employee compensation plans: the AS&E 2005 Equity and Incentive Plan (“2005 AS&E Plan”) and the AS&E 2014 Equity and Incentive Plan (“2014 AS&E Plan”). No new RSU grants will be made under the 2005 AS&E Plan or the 2014 AS&E Plan. The 2012 Plan, the 2006 Plan, the 2005 AS&E Plan and the 2014 AS&E Plan are collectively referred to as the “OSI Plans”.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2018			2017			2018
Cost of goods sold	$	417		$	251		$	1,116		$	739
Selling, general and administrative	5,627			5,614			15,909			16,574
Research and development	159			149			335			441
Restructuring	—			—			2,902			—

Stock-based compensation expense before taxes	$	6,203		$	6,014		$	20,262		$	17,754
Less: related income tax benefit	(2,378		)	(1,864		)	(7,828		)	(5,492		)

Stock-based compensation expense, net of estimated taxes	$	3,825		$	4,150		$	12,434		$	12,262

As of March 31, 2018, total unrecognized compensation cost related to share based compensation grants under the OSI Plans were estimated at $0.7 million for stock options and $19.9 million for RSUs. We expect to recognize these costs over a weighted average period of 2.0 years with respect to the stock options and 1.9 years for grants of RSUs.

The following summarizes stock option activity during the nine months ended March 31, 2018:

	Number of Options		Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2017	780,671		$	30.00
Granted	25,379		$	85.83
Exercised	(113,255	)	$	22.73
Expired or forfeited	(5,730	)	$	73.38

Outstanding at March 31, 2018	687,065		$	32.89	3.2 years	$	23,193

Exercisable at March 31, 2018	642,629		$	29.63	2.8 years	$	23,190

The following summarizes RSU activity during the nine months ended March 31, 2018:

	Shares		Weighted- Average Fair Value
Nonvested at June 30, 2017	611,687		$	65.85
Granted	349,538		74.11
Vested	(401,773	)	65.27
Forfeited	(13,919	)	70.11

Nonvested at March 31, 2018	545,533		$	71.46

As of March 31, 2018, there were approximately 2.3 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 155,488 and 117,346 performance-based RSUs during the nine months ended March 31, 2017 and 2018, respectively. These performance-based RSUs are contingent on the achievement of certain performance metrics. The payout can range from zero to 250% of the original number of shares or units awarded.

Share Repurchase Program

In April 2016, the Board of Directors authorized a share repurchase program of up to one million shares, which was completed during the three months ended March 31, 2018. In March 2018, the Board of Directors authorized a new share repurchase program up to one million shares. This program does not expire unless our Board of Directors acts to terminate the program. The timing and actual number of shares purchased depend on a variety of factors, including stock price, general business and market conditions and other investment opportunities and may be purchased through the open market. Upon repurchase, the shares are restored to the status of authorized but unissued, and we record them as a reduction in the number of shares of common stock issued and outstanding in our consolidated financial statements.

During the three and nine months ended March 31, 2018, we repurchased 972,481 shares of our common stock.

Retirement Benefit Plans

9 Months Ended

Mar. 31, 2018

Retirement Benefit Plans

Retirement Benefit Plans

8. Retirement Benefit Plans

We sponsor various retirement benefit plans including qualified and nonqualified defined benefit pension plans for our employees. The components of net periodic pension expense are as follows (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Service cost	$	224	$	216	$	672	$	648
Interest cost	7		9		21		25
Amortization of prior service cost	70		70		210		210

Net periodic pension expense	$	301	$	295	$	903	$	883

For the three months ended March 31, 2017 and 2018, we made no contributions to these defined benefit plans. For each of the nine months ended March 31, 2017 and 2018, we made contributions of $1.0 million to these defined benefit plans.

We also maintain various defined contribution plans. For the three months ended March 31, 2017 and 2018, we made contributions of $1.4 million and $1.6 million, respectively, to these defined contribution plans. For the nine months ended March 31, 2017 and 2018, we made contributions of $3.6 million and $4.6 million, respectively, to these defined contribution plans.

Commitments and Contingencies

9 Months Ended

Mar. 31, 2018

Commitments and Contingencies

Commitments and Contingencies

9. Commitments and Contingencies

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 maximum amount of such potential future payments is $30.3 million as of March 31, 2018. In addition, we are required to make royalty payments through 2022 based on the license of, or sales of products containing, the technology of CXR Limited, a company acquired in 2004.

We account for such contingent payments for acquisitions through the end of fiscal year 2009 as additions to the purchase price of the acquired business; and for acquisitions 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, estimated probability of achieving and the estimated probability of earn-out payments being made.

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 rollforward of the contingent consideration liability, which is included in Other accrued expenses and current liabilities, and Other long-term liabilities in the consolidated balance sheets:

Beginning fair value, June 30, 2017	$	11,840
Additions	8,012
Change in fair value	(1,303		)
Payments	(1,882		)

Ending fair value, March 31, 2018	$	16,667

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 certain 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 we believe occurred 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 indemnification amount under these agreements due to a limited history of prior indemnification claims and the unique facts and circumstances that may be involved in each particular claim. While we maintain directors and officers liability insurance coverage, such insurance coverage may be insufficient to cover all losses or all types of claims that may arise. We have not recorded any liability for costs related to contingent indemnification obligations as of March 31, 2018.

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.

Product Warranties

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.

The following table presents changes in warranty provisions (in thousands):

	Nine Months Ended March 31,
	2017			2018
Balance at beginning of period	$	15,948		$	15,178
Additions and adjustments	6,514			10,431
Reductions for warranty repair costs	(4,395		)	(5,219		)

Balance at end of period	$	18,067		$	20,390

Legal Proceedings

In December 2017, a short seller released a report regarding our compliance with the Foreign Corrupt Practices Act (FCPA). Following that report, we and certain of our executive officers have been named as defendants in several lawsuits in the United States District Court for the Central District of California (the “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 these actions allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), relating to certain of our filings with the SEC, and seek damages and other relief based upon the allegations in the complaints. The matters are captioned Longo v. OSI Systems, Inc. et al., No. 17-cv-08841, Doyel v. OSI Systems, Inc. et al., No. 17-cv-08855, Kerbs v. OSI Systems, Inc. et al., No. 17-cv-08991, and The Police Retirement System of St. Louis v. OSI Systems, Inc., No. 18-cv-00894. In April 2018, a shareholder derivative complaint captioned Riley v. Chopra et al., No. 2:18-cv-03371 was filed in the Court 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 our Chief Financial Officer. The complaint alleges, among other things, violations of the anti-fraud provisions of federal securities laws, as well as breach of fiduciary duties, relating to the allegations contained in the above-mentioned short seller report. The complaint seeks damages, restitution, injunctive relief, attorneys’ and experts’ fees, costs, expenses, and other unspecified relief. We believe that these 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, the SEC commenced an investigation into our compliance with the FCPA. The U.S. Attorney’s Office for the Central District of California (“DOJ”) has also said it intends to request information regarding FCPA compliance matters. The SEC and DOJ are also conducting an investigation of trading in our securities, and have subpoenaed information regarding trading by executives, directors and employees, as well as our operations and disclosures in and around the time of certain trades. In relation to the matters that are the subject of the trading-related investigation, we have taken action 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 investigations, or any penalties or remedial measures these agencies may seek.

Our acquired subsidiary, AS&E, has been the subject of an investigation by the Office of the Inspector General of the U.S. General Services Administration (“GSA”). The investigation relates to AS&E’s discount practices and compliance with the pricing provisions of AS&E’s GSA Schedule contract prior to the date of acquisition. The investigation could lead to claims or findings of violations of the False Claims Act in connection with AS&E’s GSA contracting activity. Violations of the False Claims Act could result in the imposition of damages (up to treble damages) plus civil penalties in some cases, and we have been incurring legal costs and expect to incur further legal costs in connection with the investigation. We and AS&E continue to cooperate with the GSA investigation and management believes that an appropriate accrual for this uncertainty has been provided in the accompanying condensed consolidated financial statements.

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 such matters because we believe that, although unfavorable outcomes in the proceedings may be 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 flow could be material.

Income Taxes	9 Months Ended
Income Taxes	Mar. 31, 2018
Income Taxes
Income Taxes	10. Income Taxes The Tax Act enacted in December 2017 introduced significant changes to the U.S. income tax law, which includes a reduction to the U.S. federal corporate income tax rate from 35% to 21%, a one-time repatriation tax on deferred foreign income (“Transition Tax”), deductions, credits and business-related exclusions. The reduction to the U.S. federal corporate income tax rate from 35% to 21% is effective January 1, 2018. When a U.S. federal tax rate change occurs during a fiscal year, taxpayers are required to compute a weighted daily average rate for the fiscal year of enactment. As a result of the Tax Act, we calculated a U.S. federal statutory corporate income tax rate of 28.1% for the year ending June 30, 2018. We expect the U.S. federal statutory rate to be 21% for fiscal years beginning after June 30, 2018. The SEC staff recognized that a registrant’s review of certain income tax effects of the Tax Act may be incomplete at the time financial statements are issued and thus issued SAB 118 in December 2017 that allows a company to report provisional numbers and adjust those amounts during the measurement period not to extend beyond one year. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, we recognized within our provision for income taxes $56 million during the second quarter of fiscal 2018 that included $64.6 million of Transition Tax and $8.4 million reduction for the net impact on U.S. deferred tax assets and liabilities. As we collect and prepare necessary data, and interpret the Tax Act and any additional guidance issued by the U.S. Treasury Department, the Internal Revenue Service, and other standard-setting bodies, we may make adjustments to the provisional amounts. Those adjustments may materially affect our provision for income taxes and effective tax rate in the period in which the adjustments are made. The accounting for the tax effects of the Tax Act will be completed later in calendar year 2018. During the quarter ended March 31, 2018, we did not make changes to these estimates. Our tax returns are subject to audits by U.S. federal, state, and foreign tax authorities, and these audits are at various stages of completion at any given time. Reviews of tax matters by authorities and lapses of the applicable statutes of limitations may result in changes to tax expense. Fiscal years remaining open to examination in significant foreign jurisdictions include 2008 and thereafter. The determination of the annual effective tax rate is based upon a number of significant estimates and judgments, including the estimated annual pretax income in each tax jurisdiction in which we operate, and the development of tax planning strategies during the year. In addition, as a global commercial enterprise, our tax expense can be impacted by changes in tax rates or laws, such as the Tax Act, the finalization of tax audits and reviews, and other factors that cannot be predicted with certainty. As such, there can be significant volatility in interim tax provisions.

Segment Information

9 Months Ended

Mar. 31, 2018

Segment Information

Segment Information

11. Segment Information

Our business operations are organized into three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and anesthesia systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). We also have a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses, including 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 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 of the Form 10-K for the fiscal year ended June 30, 2017.

The following tables set forth the results of operations and identifiable assets by industry segment (in thousands):

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2018			2017			2018
Revenues (1) — by Segment:
Security division	$	144,824		$	170,270		$	408,037		$	504,784
Healthcare division	49,667			43,758			146,427			141,793
Optoelectronics and Manufacturing division, including intersegment revenues	58,309			66,212			175,864			189,024
Intersegment revenues elimination	(7,654		)	(12,941		)	(21,779		)	(33,641		)

Total	$	245,146		$	267,299		$	708,549		$	801,960

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2018			2017			2018
Operating income (loss) — by Segment:
Security division	$	18,287		$	21,028		$	36,767		$	66,192
Healthcare division	936			(8,425		)	(1,527		)	(6,975		)
Optoelectronics and Manufacturing division	5,974			6,547			16,149			16,224
Corporate	(6,067		)	(10,730		)	(21,882		)	(28,601		)
Intersegment eliminations (2)	564			(677		)	979			(1,556		)

Total	$	19,694		$	7,743		$	30,486		$	45,284

	June 30, 2017			March 31, 2018
Assets — by Segment:
Security division	$	785,230		$	975,807
Healthcare division	186,021			164,911
Optoelectronics and Manufacturing division	196,567			225,672
Corporate	64,959			33,887
Intersegment eliminations (2)	(2,690		)	(4,246		)

Total	$	1,230,087		1,396,031

(1)

For the three months ended March 31, 2017, one customer, SAT in Mexico, accounted for 12% of total net revenues. For the nine months ended March 31, 2017 and 2018, SAT accounted for 12% and 11% of total net revenues, respectively.

(2)

Eliminations within operating income primarily reflect the change in the elimination of intercompany profit in inventory not-yet-realized. Eliminations in assets reflect the amount of intercompany profits in inventory as of the balance sheet date. Such intercompany profit will be realized when inventory is shipped to the external customers of the Security and Healthcare divisions.

Basis of Presentation (Policies)

9 Months Ended

Mar. 31, 2018

Basis of Presentation

Basis of Presentation

Use of Estimates

Per Share Computations

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Net income (loss) available to common stockholders	$	14,019	$	2,553	$	19,529	$	(34,241	)


Weighted average shares outstanding—basic	18,913		18,569		18,964		18,773

Dilutive effect of equity awards	602		577		621		—
Weighted average shares outstanding—diluted	19,515		19,146		19,585		18,773

Basic earnings (loss) per share	$	0.74	$	0.14	$	1.03	$	(1.82	)
Diluted earnings (loss) per share	$	0.72	$	0.13	$	1.00	$	(1.82	)

Cash Equivalents

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

Fair Value of Financial Instruments

	June 30, 2017								March 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Equity securities	$	254	$	—	$	—	$	254	$	17	$	—	$	—	$	17
Insurance company contracts	—		26,940		—		26,940		—		31,384		—		31,384
Interest rate swap agreement	—		20		—		20		—		22		—		22

Total assets	$	254	$	26,960	$	—	$	27,214	$	17	$	31,406	$	—	$	31,423

Liabilities—contingent payment obligations	$	—	$	—	$	11,840	$	11,840	$	—	$	—	$	16,667	$	16,667

Derivative Instruments and Hedging Activity

Revenue Recognition

New Accounting Pronouncements

Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

U.S. Tax Reform

Basis of Presentation (Tables)

9 Months Ended

Mar. 31, 2018

Basis of Presentation

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):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Net income (loss) available to common stockholders	$	14,019	$	2,553	$	19,529	$	(34,241	)


Weighted average shares outstanding—basic	18,913		18,569		18,964		18,773

Dilutive effect of equity awards	602		577		621		—
Weighted average shares outstanding—diluted	19,515		19,146		19,585		18,773

Basic earnings (loss) per share	$	0.74	$	0.14	$	1.03	$	(1.82	)
Diluted earnings (loss) per share	$	0.72	$	0.13	$	1.00	$	(1.82	)

Summary of fair values of financial assets and liabilities

The fair values of our financial assets and liabilities as of June 30, 2017 and March 31, 2018 are categorized as follows (in thousands):

	June 30, 2017								March 31, 2018
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Equity securities	$	254	$	—	$	—	$	254	$	17	$	—	$	—	$	17
Insurance company contracts	—		26,940		—		26,940		—		31,384		—		31,384
Interest rate swap agreement	—		20		—		20		—		22		—		22

Total assets	$	254	$	26,960	$	—	$	27,214	$	17	$	31,406	$	—	$	31,423

Liabilities—contingent payment obligations	$	—	$	—	$	11,840	$	11,840	$	—	$	—	$	16,667	$	16,667

Business Combinations (Tables) - Explosive Trace Detection Business ("ETD")

9 Months Ended

Mar. 31, 2018

Business Combinations

Schedule of assets acquired and liabilities assumed

Further potential adjustments made could be material in relation to these preliminary values below (amounts in thousands):

Cash and cash equivalents	$	4
Accounts receivable, net	13,358
Inventories	11,456
Property and equipment	1,599
Intangible assets	30,040
Other long-term assets	297
Accounts payable	(4,784		)
Accrued payroll and related expenses	(2,356		)
Deferred revenues — current	(1,629		)
Accrued warranties	(2,068		)
Other accrued expenses and current liabilities	(1,582		)

Net assets acquired	44,335
Goodwill	36,132

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	Fair
	Lives	Value
Amortizable assets:
Developed technology	10 years	$	13,220
Customer relationships	8 years	12,920
Backlog	2 years	3,500

Total amortizable assets		29,640
Non-amortizable asset — IPR&D		400

Total intangible assets		$	30,040

Unaudited pro forma results of operations assuming the ETD acquisition had occurred on July 1, 2017

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Revenues	$	260,695	$	267,299	$	763,612	$	801,960

Income from operations	$	21,003	$	7,743	$	38,772	$	45,284

Balance Sheet Details (Tables)

9 Months Ended

Mar. 31, 2018

Balance Sheet Details

Schedule of selected balance sheet accounts

The following tables provide details of selected balance sheet accounts (in thousands):

	June 30, 2017			March 31, 2018

Accounts receivable	$	216,089		$	226,217
Less allowance for doubtful accounts	(9,563		)	(9,537		)

Accounts receivable, net	$	206,526		$	216,680

	June 30, 2017		March 31, 2018

Raw materials	$	129,645	$	157,434
Work-in-process	65,454		85,273
Finished goods	53,411		61,586

Inventories	$	248,510	$	304,293

	June 30,			March 31,
	2017			2018
Land, buildings, civil works and improvements	$	171,335		$	73,893
Leasehold improvements	9,025			9,317
Equipment and tooling	166,991			115,220
Furniture and fixtures	3,371			3,429
Computer equipment	17,991			18,801
Computer software	17,303			19,146
Computer software implementation in process	2,590			3,344
Construction in process	1,049			1,239

Total	389,655			244,389
Less accumulated depreciation and amortization	(248,116		)	(130,722		)

Property and equipment, net	$	141,539		$	113,667

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets

Schedule of changes in carrying value of goodwill

The changes in the carrying value of goodwill for the nine month period ended March 31, 2018 were as follows (in thousands):

	Security		Healthcare		Optoelectronics and Manufacturing		Consolidated
Balance as of June 30, 2017	$	155,083	$	40,129	$	46,917	$	242,129
Goodwill acquired or adjusted during the period	43,106		—		14,080		57,186
Foreign currency translation adjustment	259		248		894		1,401

Balance as of March 31, 2018	$	198,448	$	40,377	$	61,891	$	300,716

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):

	June 30, 2017							March 31, 2018
	Gross							Gross
	Carrying		Accumulated			Intangibles		Carrying		Accumulated			Intangibles
	Value		Amortization			Net		Value		Amortization			Net
Amortizable assets:
Software development costs	$	26,753	$	(6,291	)	$	20,462	$	27,777	$	(8,709	)	$	19,068
Patents	8,386		(1,676		)	6,710		8,757		(1,603		)	7,154
Developed technology	37,446		(5,530		)	31,916		50,637		(8,902		)	41,735
Customer relationships/backlog	38,289		(7,667		)	30,622		63,830		(14,078		)	49,752

Total amortizable assets	110,874		(21,164		)	89,710		151,001		(33,292		)	117,709
Non-amortizable assets:
Trademarks and trade names	25,540		—			25,540		25,748		—			25,748
IPR&D	3,200		—			3,200		3,600		—			3,600

Intangible assets, net	$	139,614	$	(21,164	)	$	118,450	$	180,349	$	(33,292	)	$	147,057

Schedule of estimated future amortization expense

At March 31, 2018, the estimated future amortization expense was as follows (in thousands):

2018 (remaining 3 months)	$	5,522
2019	21,600
2020	18,823
2021	18,347
2022	13,840
Thereafter, including assets that have not yet begun to be amortized	39,577

Total	$	117,709

Impairment, restructuring and other charges (Tables)

9 Months Ended

Mar. 31, 2018

Impairment, restructuring and other charges

Summary of the impairment, restructuring and other charges

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

	Three Months Ended March 31, 2017
	Security Division		Healthcare Division		Optoelectronics and Manufacturing Division		Corporate			Total
Acquisition-related costs	$	—	$	—	$	—	$	140		$	140
Employee termination costs	345		182		52		—			579
Facility closures/consolidation	650		634		194		—			1,478
Other charges (reversals)	—		297		19		(5		)	311

Total expensed	$	995	$	1,113	$	265	$	135		$	2,508

	Three Months Ended March 31, 2018
	Security Division		Healthcare Division			Optoelectronics and Manufacturing Division		Corporate		Total
Impairment charges	$	91	$	3,946		$	—	$	—	$	4,037
Acquisition-related costs	—		—			—		77		77
Employee termination costs	18		3			269		—		290
Facility closures/consolidation	117		(8		)	—		—		109
Legal and accrued settlement costs	—		5,766			—		3,783		9,549

Total expensed	$	226	$	9,707		$	269	$	3,860	$	14,062

	Nine Months Ended March 31, 2017
	Security Division		Healthcare Division		Optoelectronics and Manufacturing Division			Corporate		Total
Impairment charges	$	5,332	$	86	$	—		$		$	5,418
Acquisition-related costs	810		—		—			3,353		4,163
Employee termination costs	8,152		1,262		383			—		9,797
Facility closures/consolidation	829		703		218			—		1,750
Other charges (reversals)	7		297		(48		)	501		757

Total expensed	$	15,130	$	2,348	$	553		$	3,854	$	21,885

	Nine Months Ended March 31, 2018
	Security Division		Healthcare Division		Optoelectronics and Manufacturing Division		Corporate		Total
Impairment charges	$	1,581	$	4,525	$	1,075	$	—	$	7,181
Acquisition-related costs	—		—		—		1,258		1,258
Employee termination costs	348		3		415		—		766
Facility closures/consolidation	198		235		—		—		433
Legal and accrued settlement costs	—		9,966		—		3,885		13,851

Total expensed	$	2,127	$	14,729	$	1,490	$	5,143	$	23,489

Schedule of changes in the accrual for restructuring and other charges

The changes in the accrual for restructuring and other charges for the nine-month period ended March 31, 2018 were as follows (in thousands):

	Acquisition- related Costs			Employee Termination Costs			Facility Closure/ Consolidation Cost			Legal Charges			Total
Balance as of June 30, 2017	$	—		$	175		$	291		$	—		$	466
Restructuring and other charges	1,258			767			433			13,851			16,309
Payments and other adjustments	(1,258		)	(840		)	(315		)	(5,737		)	(8,150		)

Balance as of March 31, 2018	$	—		$	102		$	409		$	8,114		$	8,625

Borrowings (Tables)

9 Months Ended

Mar. 31, 2018

Borrowings

Schedule of long-term debt

Long-term debt consisted of the following (in thousands):

	June 30, 2017			March 31, 2018
1.25% convertible notes due 2022:
Principal amount	$	287,500		$	287,500
Unamortized discount	(42,602		)	(37,045		)
Unamortized debt issuance costs	(6,073		)	(5,191		)

1.25% convertible notes due 2022, net of unamortized discount and debt issuance costs	238,825			245,264
Term loans	3,700			2,511
Other long-term debt	1,621			1,506

	244,146			249,281
Less current portion of long-term debt	(2,396		)	(2,252		)

Long-term portion of debt	$	241,750		$	247,029

- 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://www.xbrl.org/2003/role/presentationRef
-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://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-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 4: http://www.xbrl.org/2003/role/presentationRef
-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://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Stockholders' Equity (Tables)

9 Months Ended

Mar. 31, 2018

Stockholders' Equity

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

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2018			2017			2018
Cost of goods sold	$	417		$	251		$	1,116		$	739
Selling, general and administrative	5,627			5,614			15,909			16,574
Research and development	159			149			335			441
Restructuring	—			—			2,902			—

Stock-based compensation expense before taxes	$	6,203		$	6,014		$	20,262		$	17,754
Less: related income tax benefit	(2,378		)	(1,864		)	(7,828		)	(5,492		)

Stock-based compensation expense, net of estimated taxes	$	3,825		$	4,150		$	12,434		$	12,262

Summary of stock option activity

	Number of Options		Weighted Average Exercise Price		Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2017	780,671		$	30.00
Granted	25,379		$	85.83
Exercised	(113,255	)	$	22.73
Expired or forfeited	(5,730	)	$	73.38

Outstanding at March 31, 2018	687,065		$	32.89	3.2 years	$	23,193

Exercisable at March 31, 2018	642,629		$	29.63	2.8 years	$	23,190

Summary of RSU award activity

	Shares		Weighted- Average Fair Value
Nonvested at June 30, 2017	611,687		$	65.85
Granted	349,538		74.11
Vested	(401,773	)	65.27
Forfeited	(13,919	)	70.11

Nonvested at March 31, 2018	545,533		$	71.46

Retirement Benefit Plans (Tables)

9 Months Ended

Mar. 31, 2018

Retirement Benefit Plans

Schedule of net periodic pension expense

The components of net periodic pension expense are as follows (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2017		2018		2017		2018
Service cost	$	224	$	216	$	672	$	648
Interest cost	7		9		21		25
Amortization of prior service cost	70		70		210		210

Net periodic pension expense	$	301	$	295	$	903	$	883

Commitments and Contingencies (Tables)

9 Months Ended

Mar. 31, 2018

Commitments and Contingencies

Schedule of rollforward of the contingent consideration liability

Beginning fair value, June 30, 2017	$	11,840
Additions	8,012
Change in fair value	(1,303		)
Payments	(1,882		)

Ending fair value, March 31, 2018	$	16,667

Schedule of changes in warranty provisions

The following table presents changes in warranty provisions (in thousands):

	Nine Months Ended March 31,
	2017			2018
Balance at beginning of period	$	15,948		$	15,178
Additions and adjustments	6,514			10,431
Reductions for warranty repair costs	(4,395		)	(5,219		)

Balance at end of period	$	18,067		$	20,390

Segment Information (Tables)

9 Months Ended

Mar. 31, 2018

Segment Information

Schedule of results of operations and identifiable assets by industry segment

The following tables set forth the results of operations and identifiable assets by industry segment (in thousands):

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2018			2017			2018
Revenues (1) — by Segment:
Security division	$	144,824		$	170,270		$	408,037		$	504,784
Healthcare division	49,667			43,758			146,427			141,793
Optoelectronics and Manufacturing division, including intersegment revenues	58,309			66,212			175,864			189,024
Intersegment revenues elimination	(7,654		)	(12,941		)	(21,779		)	(33,641		)

Total	$	245,146		$	267,299		$	708,549		$	801,960

	Three Months Ended March 31,						Nine Months Ended March 31,
	2017			2018			2017			2018
Operating income (loss) — by Segment:
Security division	$	18,287		$	21,028		$	36,767		$	66,192
Healthcare division	936			(8,425		)	(1,527		)	(6,975		)
Optoelectronics and Manufacturing division	5,974			6,547			16,149			16,224
Corporate	(6,067		)	(10,730		)	(21,882		)	(28,601		)
Intersegment eliminations (2)	564			(677		)	979			(1,556		)

Total	$	19,694		$	7,743		$	30,486		$	45,284

	June 30, 2017			March 31, 2018
Assets — by Segment:
Security division	$	785,230		$	975,807
Healthcare division	186,021			164,911
Optoelectronics and Manufacturing division	196,567			225,672
Corporate	64,959			33,887
Intersegment eliminations (2)	(2,690		)	(4,246		)

Total	$	1,230,087		1,396,031

(1)

(2)

Basis of Presentation - Per Share Computations (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Feb. 28, 2017
Computation of basic and diluted earnings per share
Net income (loss) available to common stockholders	$ 2,553	$ 14,019	$ (34,241)	$ 19,529
Weighted average shares outstanding-basic	18,569	18,913	18,773	18,964
Dilutive effect of equity awards	577	602		621
Weighted average shares outstanding-diluted	19,146	19,515	18,773	19,585
Basic earnings (loss) per share	$ 0.14	$ 0.74	$ (1.82)	$ 1.03
Diluted earnings (loss) per share	$ 0.13	$ 0.72	$ (1.82)	$ 1.00
Shares excluded from computation of diluted net income per share
Stock options excluded from computation due to antidilutive effect (in shares)	300
1.25% Convertible Senior Notes Due 2022
Per Share Computations
Interest rate (as a percentage)	1.25%		1.25%		1.25%

Basis of Presentation - Cash Equivalents (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016
Cash Equivalents
Cash, cash equivalents, and investments	$ 194,001	$ 169,650	$ 158,472	$ 104,370

Basis of Presentation - Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Fair Value of Financial Instruments
Liabilities - contingent payment obligations	$ 16,667	$ 11,840
Recurring
Fair Value of Financial Instruments
Equity securities	17	254
Insurance company contracts	31,384	26,940
Interest rate swap agreement	22	20
Total assets	31,423	27,214
Liabilities - contingent payment obligations	16,667	11,840
Recurring \| Level 1
Fair Value of Financial Instruments
Equity securities	17	254
Total assets	17	254
Recurring \| Level 2
Fair Value of Financial Instruments
Insurance company contracts	31,384	26,940
Interest rate swap agreement	22	20
Total assets	31,406	26,960
Recurring \| Level 3
Fair Value of Financial Instruments
Total assets	0
Liabilities - contingent payment obligations	$ 16,667	$ 11,840

Basis of Presentation - US Tax Reform (Details) - USD ($) $ in Millions		3 Months Ended	9 Months Ended	12 Months Ended
	Jan. 01, 2018	Dec. 31, 2017	Mar. 31, 2018	Jun. 30, 2018
Basis of Presentation
One-time charge effect of Tax Act		$ 56
Statutory tax rate (as a percent)	21.00%		35.00%	28.10%

Business Combinations - Explosive Trace Detection (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Allocation of total consideration to assets acquired and liabilities assumed
Goodwill	$ 300,716	$ 242,129
Explosive Trace Detection Business ("ETD")
Business Combinations
Decrease in goodwill	(200)
Decrease in accounts receivable reserve	1,200
Decrease in fair value of inventory	800
Increase in accrued liabilities	200
Allocation of total consideration to assets acquired and liabilities assumed
Cash and cash equivalents	4
Accounts receivable, net	13,358
Inventories	11,456
Property and equipment	1,599
Intangible assets	30,040
Other long-term assets	297
Accounts payable	(4,784)
Accrued payroll and related expenses	(2,356)
Deferred revenues - current	(1,629)
Accrued warranties	(2,068)
Other accrued expenses and current liabilities	(1,582)
Net assets acquired	44,335
Goodwill	36,132
Total consideration	$ 80,467

Business Combinations - Intangible Assets (Details) - Explosive Trace Detection Business ("ETD") $ in Thousands	9 Months Ended
	Mar. 31, 2018 USD ($)
Business Combinations
Amortizable assets	$ 29,640
Total intangible assets	30,040
IPR&D
Business Combinations
Non-amortizable asset	$ 400
Developed technology
Business Combinations
Weighted Average Lives (in years)	10 years
Amortizable assets	$ 13,220
Customer relationships
Business Combinations
Weighted Average Lives (in years)	8 years
Amortizable assets	$ 12,920
Backlog
Business Combinations
Weighted Average Lives (in years)	2 years
Amortizable assets	$ 3,500

Business Combinations - Revenue and Income (Details) - Explosive Trace Detection Business ("ETD") - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2018	Mar. 31, 2017
Business Combinations
Amount included in revenue	$ 17,600		$ 59,000
Amount included in pre-tax income	3,100		$ 9,800
Pro forma results of operations assuming the ETD acquisition had occurred on July 1, 2016
Revenues	267,299	$ 260,695		$ 801,960	$ 763,612
Income from operations	$ 7,743	$ 21,003		$ 45,284	$ 38,772

Business Combinations - American Science and Engineering (Details) - AS&E $ in Millions	Sep. 09, 2016 USD ($)
Business Combinations
Percentage of ownership acquired	100.00%
Total cash merger consideration	$ 266
Cash on hand to pay down the revolving bank line of credit	$ 69

Business Combinations - Other Acquisition (Details) - USD ($) $ in Thousands	Jan. 12, 2018	Mar. 31, 2018	Jun. 30, 2017
Business Combinations
Maximum amount of future payments under contingent consideration		$ 30,300
Goodwill		$ 300,716	$ 242,129
An electronics component designer and manufacturer
Business Combinations
Total consideration	$ 22,000
Maximum amount of future payments under contingent consideration	6,000
Intangible assets	12,600
Goodwill	10,900
Net assets acquired	$ 3,200

Balance Sheet Details (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
Balance Sheet Details (Details) - USD ($) $ in Thousands	Jan. 31, 2018	Sep. 30, 2017	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Accounts Receivable
Accounts receivable			$ 226,217		$ 226,217		$ 216,089
Less allowance for doubtful accounts			(9,537)		(9,537)		(9,563)
Accounts receivable, net			216,680		216,680		206,526
Inventories
Raw materials			157,434		157,434		129,645
Work-in-process			85,273		85,273		65,454
Finished goods			61,586		61,586		53,411
Inventories			304,293		304,293		248,510
Property and Equipment
Property and equipment, gross			244,389		244,389		389,655
Less accumulated depreciation and amortization			(130,722)		(130,722)		(248,116)
Property and equipment, net			113,667		113,667		141,539
Depreciation expense			5,400	$ 13,300	38,400	$ 39,900
Contract with Mexican government
Term of agreement with Mexican government to provide security screening services	2 years
Prepaid expenses and other current assets
Contract with Mexican government
Remaining cost to obtain the contract			14,700		14,700
Other assets
Contract with Mexican government
Remaining cost to obtain the contract			11,600		11,600
AS&E facility in Billerica, MA
Property and Equipment
Purchase of property and equipment		$ 19,800
Land, buildings, civil works and improvements
Property and Equipment
Property and equipment, gross			73,893		73,893		171,335
Leasehold improvements
Property and Equipment
Property and equipment, gross			9,317		9,317		9,025
Equipment and tooling
Property and Equipment
Property and equipment, gross			115,220		115,220		166,991
Furniture and fixtures
Property and Equipment
Property and equipment, gross			3,429		3,429		3,371
Computer equipment
Property and Equipment
Property and equipment, gross			18,801		18,801		17,991
Software development costs
Property and Equipment
Property and equipment, gross			19,146		19,146		17,303
Computer software implementation in process
Property and Equipment
Property and equipment, gross			3,344		3,344		2,590
Construction in process
Property and Equipment
Property and equipment, gross			$ 1,239		$ 1,239		$ 1,049

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2018 USD ($)
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 242,129
Goodwill acquired or adjusted during the period	57,186
Foreign currency translation adjustment	1,401
Balance at the end of the period	300,716
Security Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	155,083
Goodwill acquired or adjusted during the period	43,106
Foreign currency translation adjustment	259
Balance at the end of the period	198,448
Healthcare Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	40,129
Foreign currency translation adjustment	248
Balance at the end of the period	40,377
Optoelectronics and Manufacturing division
Changes in the carrying value of goodwill
Balance at the beginning of the period	46,917
Goodwill acquired or adjusted during the period	14,080
Foreign currency translation adjustment	894
Balance at the end of the period	$ 61,891

Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Amortizable assets:
Gross Carrying Value	$ 151,001		$ 151,001		$ 110,874
Accumulated Amortization	(33,292)		(33,292)		(21,164)
Total	117,709		117,709		89,710
Total intangible assets
Gross Carrying Value	180,349		180,349		139,614
Intangible assets, net	147,057		147,057		118,450
Amortization expense	5,100	$ 3,600	13,800	$ 9,100
Trademarks and trade names
Non-amortizable assets:
Gross Carrying Value	25,748		25,748		25,540
IPR&D
Non-amortizable assets:
Gross Carrying Value	3,600		3,600		3,200
Software development costs
Amortizable assets:
Gross Carrying Value	27,777		27,777		26,753
Accumulated Amortization	(8,709)		(8,709)		(6,291)
Total	19,068		19,068		20,462
Patents
Amortizable assets:
Gross Carrying Value	8,757		8,757		8,386
Accumulated Amortization	(1,603)		(1,603)		(1,676)
Total	7,154		7,154		6,710
Developed technology
Amortizable assets:
Gross Carrying Value	50,637		50,637		37,446
Accumulated Amortization	(8,902)		(8,902)		(5,530)
Total	41,735		41,735		31,916
Customer relationships/backlog
Amortizable assets:
Gross Carrying Value	63,830		63,830		38,289
Accumulated Amortization	(14,078)		(14,078)		(7,667)
Total	$ 49,752		$ 49,752		$ 30,622

Goodwill and Intangible Assets - Intangible Amortization (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Estimated future amortization expense
2018 (remaining 3 months)		$ 5,522
2019		21,600
2020		18,823
2021		18,347
2022		13,840
Thereafter, including assets that have not yet begun to be amortized		39,577
Total		117,709		$ 89,710
Software development costs
Estimated future amortization expense
Total		19,068		$ 20,462
Capitalized software development costs	$ 1,000	$ 1,300	$ 2,000

Impairment, restructuring and other charges - Restructuring and other charges(Details) $ in Thousands	3 Months Ended			9 Months Ended		18 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)	Mar. 31, 2018 USD ($) item	Mar. 31, 2017 USD ($)	Dec. 31, 2017 USD ($)
Impairment, restructuring and other charges
Employee termination and facility consolidation costs	$ 400			$ 1,200
Impairment charges	4,037		$ 7,100	7,181	$ 5,418
Acquisition-related costs	77	$ 140		1,258	4,163
Employee termination costs	290	579		766	9,797
Facility closures/consolidation	109	1,478		433	1,750
Legal and accrued settlement costs	9,549			13,851
Other charges (reversals)		311			757
Total expensed	14,062	2,508		23,489	21,885
Explosive Trace Detection Business ("ETD")
Impairment, restructuring and other charges
Acquisition-related costs	200			1,100		$ 2,100
Security Division
Impairment, restructuring and other charges
Impairment charges	91			1,581	5,332
Acquisition-related costs					810
Employee termination costs	18	345		348	8,152
Facility closures/consolidation	117	650		198	829
Other charges (reversals)					7
Total expensed	226	995		$ 2,127	15,130
Healthcare Division
Impairment, restructuring and other charges
Number of non-core product lines abandoned \| item				2
Impairment charges	3,946			$ 4,525	86
Employee termination costs	3	182		3	1,262
Facility closures/consolidation	(8)	634		235	703
Legal and accrued settlement costs	5,766			9,966
Other charges (reversals)		297			297
Total expensed	9,707	1,113		14,729	2,348
Optoelectronics and Manufacturing division
Impairment, restructuring and other charges
Impairment charges				1,075
Employee termination costs	269	52		415	383
Facility closures/consolidation		194			218
Other charges (reversals)		19			(48)
Total expensed	269	265		1,490	553
Corporate
Impairment, restructuring and other charges
Acquisition-related costs	77	140		1,258	3,353
Legal and accrued settlement costs	3,783			3,885
Other charges (reversals)		(5)			501
Total expensed	$ 3,860	$ 135		$ 5,143	$ 3,854

Impairment, restructuring and other charges - Changes in the accrual for restructuring and other charges (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2018 USD ($)
Restructuring and other charges
Balance at the beginning of the period	$ 466
Restructuring and other charges	16,309
Payments and other adjustments	(8,150)
Balance at the end of the period	8,625
Acquisition-related Costs
Restructuring and other charges
Restructuring and other charges	1,258
Payments and other adjustments	(1,258)
Employee Termination Costs
Restructuring and other charges
Balance at the beginning of the period	175
Restructuring and other charges	767
Payments and other adjustments	(840)
Balance at the end of the period	102
Facility Closure / Consolidation Cost
Restructuring and other charges
Balance at the beginning of the period	291
Restructuring and other charges	433
Payments and other adjustments	(315)
Balance at the end of the period	409
Legal Charges
Restructuring and other charges
Restructuring and other charges	13,851
Payments and other adjustments	(5,737)
Balance at the end of the period	$ 8,114

Borrowings (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
Borrowings (Details) $ / shares in Units, $ in Thousands	Sep. 30, 2012 USD ($)	Mar. 31, 2018 USD ($) $ / shares	Mar. 31, 2018 USD ($) item $ / shares	Mar. 29, 2018 $ / shares	Jun. 30, 2017 USD ($)	Feb. 28, 2017 USD ($)	Dec. 31, 2016 USD ($)	Nov. 30, 2016 USD ($)
Borrowings
Borrowings outstanding		$ 228,000	$ 228,000		$ 103,000
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%
Components of long-term debt
Term loans		2,511	$ 2,511		3,700
Other long-term debt		1,506	1,506		1,621
Total		249,281	249,281		244,146
Less current portion of long-term debt		(2,252)	(2,252)		(2,396)
Long-term portion of debt		247,029	247,029		241,750
Revolving Credit Facility
Borrowings
Maximum borrowing capacity							$ 525,000	$ 450,000
Sub-limit available for letters of credit		300,000	$ 300,000
Unused commitment fee (as a percent)			0.20%
Borrowings outstanding		228,000	$ 228,000
Amount outstanding under lines-of-credit facilities		33,300	33,300
Available credit facility		263,700	$ 263,700
Revolving Credit Facility \| Minimum
Borrowings
Unused commitment fee (as a percent)			0.20%
Revolving Credit Facility \| Maximum
Borrowings
Increase in the credit agreement's borrowing capacity available under certain circumstances		250,000	$ 250,000
Unused commitment fee (as a percent)			0.30%
Revolving Credit Facility \| LIBOR
Borrowings
Interest rate margin (as a percent)			1.50%
Revolving Credit Facility \| LIBOR \| Minimum
Borrowings
Interest rate margin (as a percent)			1.25%
Revolving Credit Facility \| LIBOR \| Maximum
Borrowings
Interest rate margin (as a percent)			2.00%
1.25% Convertible Senior Notes Due 2022
Borrowings
Principal amount		$ 287,500	$ 287,500			$ 287,500
Interest rate (as a percentage)		1.25%	1.25%			1.25%
Conversion ratio			9.3056
Conversion price \| $ / shares		$ 107.46	$ 107.46
Premium on stock price		38.50%	38.50%
Liability component of convertible debt		$ 242,400	$ 242,400
Equity component of convertible debt		45,100	45,100
Debt issuance costs		7,700	7,700
Debt Component of debt issuance costs		6,500	6,500
Equity component of debt issuance costs		1,200	1,200
Total interest expense		3,100	9,200
Contractual interest expense		900	2,700
Amortization of debt discount		1,900	5,600
Amortization of debt issuance costs		300	900
Unamortized debt discount		$ 37,045	$ 37,045		42,602
Effective interest rate (as a percent)		4.50%	4.50%
Unamortized debt issuance costs		$ 5,191	$ 5,191		6,073
Stock price per share \| $ / shares				$ 65.27
Components of long-term debt
Principal amount		287,500	287,500		287,500
Unamortized discount		(37,045)	(37,045)		(42,602)
Unamortized debt issuance costs		(5,191)	(5,191)		(6,073)
Total		245,264	245,264		$ 238,825
Bank lines-of-credit
Borrowings
Amount outstanding under lines-of-credit facilities		60,300	60,300
Available credit facility		$ 12,900	$ 12,900
Seven-year term loan due in fiscal 2020
Borrowings
Principal amount	$ 11,100
Effective interest rate (as a percent)	2.20%
Term of loan	7 years
Seven-year term loan due in fiscal 2020 \| LIBOR
Borrowings
Interest rate margin (as a percent)	1.25%

Stockholders' Equity - Stock-based Compensation (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Dec. 11, 2017 shares	Mar. 31, 2018 USD ($) $ / shares shares	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($) ShareBasedCompensationPlan $ / shares shares	Mar. 31, 2017 USD ($) shares
Stock-based Compensation
Stock-based compensation expense before taxes \| $		$ 6,014	$ 6,203	$ 17,754	$ 20,262
Less: related income tax benefit \| $		(1,864)	(2,378)	(5,492)	(7,828)
Stock-based compensation expense, net of estimated taxes \| $		4,150	3,825	12,262	$ 12,434
RSU
Stock-based Compensation
Unrecognized compensation cost \| $		$ 19,900		$ 19,900
Weighted-average period				1 year 10 months 24 days
Shares
Nonvested at the beginning of the period (in shares)				611,687
Granted (in shares)				349,538
Vested (in shares)				(401,773)
Forfeited (in shares)				(13,919)
Nonvested at the end of the period (in shares)		545,533		545,533
Weighted-Average Fair Value
Nonvested at the beginning of the period (in dollars per share) \| $ / shares				$ 65.85
Granted (in dollars per share) \| $ / shares				74.11
Vested (in dollars per share) \| $ / shares				65.27
Forfeited (in dollars per share) \| $ / shares				70.11
Nonvested at the end of the period (in dollars per share) \| $ / shares		$ 71.46		$ 71.46
Stock Options
Stock-based Compensation
Unrecognized compensation cost \| $		$ 700		$ 700
Weighted-average period				2 years
Number of Options
Outstanding at the beginning of the period (in shares)				780,671
Granted (in shares)				25,379
Exercised (in shares)				(113,255)
Expired or forfeited (in shares)				(5,730)
Outstanding at the end of the period (in shares)		687,065		687,065
Exercisable at the end of the period (in shares)		642,629		642,629
Weighted-Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares				$ 30.00
Granted (in dollars per share) \| $ / shares				85.83
Exercised (in dollars per share) \| $ / shares				22.73
Expired or forfeited (in dollars per share) \| $ / shares				73.38
Outstanding at the end of the period (in dollars per share) \| $ / shares		$ 32.89		32.89
Exercisable at the end of the period (in dollars per share) \| $ / shares		$ 29.63		$ 29.63
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period				3 years 2 months 12 days
Exercisable at the end of the period				2 years 9 months 18 days
Aggregate Intrinsic Value
Outstanding at the end of the period \| $		$ 23,193		$ 23,193
Exercisable at the end of the period \| $		$ 23,190		$ 23,190
Performance-based restricted stock units
Shares
Granted (in shares)				117,346	155,488
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%
Performance-based restricted stock units \| Maximum
Weighted-Average Fair Value
Payout as a percentage of the original number of shares awarded or units awarded, which are converted into shares of the Company's common stock				250.00%
2012 Plan
Stock-based Compensation
Maximum number of shares of Common Stock which may be issued increased	1,600,000
Weighted-Average Fair Value
Shares available for grant		2,300,000		2,300,000
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
2005 AS&E Plan and the 2014 AS&E Plan
Stock-based Compensation
Number of share-based employee compensation plans assumed \| ShareBasedCompensationPlan				2
2005 AS&E Plan and the 2014 AS&E Plan \| RSU
Shares
Granted (in shares)				0
2006 Plan
Number of Options
Granted (in shares)				0
Cost of goods sold
Stock-based Compensation
Stock-based compensation expense before taxes \| $		$ 251	417	$ 739	$ 1,116
Selling, general and administrative
Stock-based Compensation
Stock-based compensation expense before taxes \| $		5,614	5,627	16,574	15,909
Research and development
Stock-based Compensation
Stock-based compensation expense before taxes \| $		$ 149	$ 159	$ 441	335
Restructuring
Stock-based Compensation
Stock-based compensation expense before taxes \| $					$ 2,902

Stockholders' Equity - Share Repurchase Program (Details) - shares	3 Months Ended	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2018	Apr. 30, 2016
Maximum
Share Repurchase Program
Number of repurchased shares authorized			1,000,000
Common stock
Share Repurchase Program
Number of shares repurchased	972,481	972,481
Common stock \| Maximum
Share Repurchase Program
Number of repurchased shares authorized	1,000,000	1,000,000

Retirement Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Retirement Benefit Plans (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Net Periodic Benefit Costs
Service cost	$ 216	$ 224	$ 648	$ 672
Interest cost	9	7	25	21
Amortization of prior service cost	70	70	210	210
Net periodic pension expense	295	301	883	903
Contributions made by the entity to the defined benefit plans	0	0	1,000	1,000
Contributions made by the entity to defined contribution plans	$ 1,600	$ 1,400	$ 4,600	$ 3,600

Commitments and Contingencies - Contingent Acquisition Obligations (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2018 USD ($)
Contingent Acquisition Obligations
Maximum amount of future payments under contingent consideration	$ 30,300
Beginning fair value	11,840
Additions of contingent consideration liability	8,012
Change in fair value for contingent consideration liability	(1,303)
Payments on contingent consideration liability	(1,882)
Ending fair value	16,667
Mr. Chopra \| Deferred bonus
Employment-Related Contingencies
Contingent bonus payment to Mr. Chopra	$ 13,500
Maximum number of days after January 1, 2024, bonus payment to Mr. Chopra	45 days

Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Changes in provision for warranties
Warranty provision at beginning of period	$ 15,178	$ 15,948
Additions and adjustments	10,431	6,514
Reductions for warranty repair costs	(5,219)	(4,395)
Warranty provision at end of period	$ 20,390	$ 18,067

Income Taxes - (Details) - USD ($) $ in Millions			3 Months Ended	9 Months Ended	12 Months Ended
Income Taxes - (Details) - USD ($) $ in Millions	Jul. 01, 2018	Jan. 01, 2018	Dec. 31, 2017	Mar. 31, 2018	Jun. 30, 2018
Statutory tax rate (as a percent)		21.00%		35.00%	28.10%
Provision for income taxes due to enactment of Tax Act			$ 56.0
Transition Tax			64.6
Net impact on U.S. deferred tax assets and liabilities			$ 8.4
Forecast
Statutory tax rate (as a percent)	21.00%

Segment Information - Operations and Identifiable Assets (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($) customer	Mar. 31, 2018 USD ($) segment	Mar. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)
Operations and identifiable assets by industry segment
Number of identifiable industry segments \| segment			3
Total revenues	$ 267,299	$ 245,146	$ 801,960	$ 708,549
Operating income (loss)	7,743	$ 19,694	45,284	$ 30,486
Segments assets	1,396,031		$ 1,396,031		$ 1,230,087
SAT in Mexico \| Revenue \| Customer
Operations and identifiable assets by industry segment
Number of major customers \| customer		1
Percentage of benchmark derived from specified source		12.00%	11.00%	12.00%
Operating Segments \| Security Division
Operations and identifiable assets by industry segment
Total revenues	170,270	$ 144,824	$ 504,784	$ 408,037
Operating income (loss)	21,028	18,287	66,192	36,767
Segments assets	975,807		975,807		785,230
Operating Segments \| Healthcare Division
Operations and identifiable assets by industry segment
Total revenues	43,758	49,667	141,793	146,427
Operating income (loss)	(8,425)	936	(6,975)	(1,527)
Segments assets	164,911		164,911		186,021
Operating Segments \| Optoelectronics and Manufacturing division
Operations and identifiable assets by industry segment
Total revenues	66,212	58,309	189,024	175,864
Operating income (loss)	6,547	5,974	16,224	16,149
Segments assets	225,672		225,672		196,567
Corporate
Operations and identifiable assets by industry segment
Operating income (loss)	(10,730)	(6,067)	(28,601)	(21,882)
Segments assets	33,887		33,887		64,959
Intersegment Eliminations
Operations and identifiable assets by industry segment
Total revenues	(12,941)	(7,654)	(33,641)	(21,779)
Operating income (loss)	(677)	$ 564	(1,556)	$ 979
Segments assets	$ (4,246)		$ (4,246)		$ (2,690)

Basis of Presentation - Revenue Recognition (Details)	1 Months Ended
Basis of Presentation - Revenue Recognition (Details)	Jan. 31, 2018
SAT
Revenue Recognition
Term of Contract	2 years