Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 26, 2019
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, 2019
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		18,104,754
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 107,649	$ 84,814
Accounts receivable, net	218,433	210,744
Inventories	297,704	313,552
Prepaid expenses and other current assets	35,050	41,587
Total current assets	658,836	650,697
Property and equipment, net	124,916	115,524
Goodwill	307,461	292,213
Intangible assets, net	136,432	142,001
Other assets	56,470	55,256
Total assets	1,284,115	1,255,691
CURRENT LIABILITIES:
Bank lines of credit	124,000	113,000
Current portion of long-term debt	1,702	2,262
Accounts payable	89,891	106,892
Accrued payroll and related expenses	36,053	40,171
Advances from customers	60,016	55,761
Other accrued expenses and current liabilities	113,838	125,236
Total current liabilities	425,500	443,322
Long-term debt	255,411	248,980
Deferred income taxes	15,015	15,002
Other long-term liabilities	62,381	58,951
Total liabilities	758,307	766,255
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, 18,032,374 shares at June 30, 2018 and 18,100,841 shares at March 31, 2019	160,384	169,475
Retained earnings	382,880	334,745
Accumulated other comprehensive loss	(17,456)	(14,784)
Total stockholders' equity	525,808	489,436
Total liabilities and stockholders' equity	$ 1,284,115	$ 1,255,691

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares	Mar. 31, 2019	Jun. 30, 2018
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	18,100,841	18,032,374
Common stock, shares outstanding	18,100,841	18,032,374

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Net revenues:
Total net revenues	$ 304,284	$ 267,299	$ 873,738	$ 801,960
Cost of goods sold:
Total cost of goods sold	192,968	169,714	556,165	511,474
Gross profit	111,316	97,585	317,573	290,486
Operating expenses:
Selling, general and administrative	67,278	59,846	196,082	175,591
Research and development	13,695	15,934	40,253	46,122
Impairment, restructuring and other charges	(1,777)	14,062	1,154	23,489
Total operating expenses	79,196	89,842	237,489	245,202
Income from operations	32,120	7,743	80,084	45,284
Interest expense and other expense, net	(5,595)	(4,625)	(16,546)	(14,156)
Income before income taxes	26,525	3,118	63,538	31,128
Provision for income taxes	(6,899)	(565)	(15,403)	(65,369)
Net income (loss)	$ 19,626	$ 2,553	$ 48,135	$ (34,241)
Earnings (loss) per share:
Basic (in dollars per share)	$ 1.09	$ 0.14	$ 2.66	$ (1.82)
Diluted (in dollars per share)	$ 1.05	$ 0.13	$ 2.58	$ (1.82)
Shares used in per share calculation:
Basic (in shares)	18,079	18,569	18,085	18,773
Diluted (in shares)	18,671	19,146	18,678	18,773
Products
Net revenues:
Total net revenues	$ 224,778	$ 182,484	$ 632,660	$ 529,530
Cost of goods sold:
Total cost of goods sold	147,939	126,419	423,441	363,063
Services
Net revenues:
Total net revenues	79,506	84,815	241,078	272,430
Cost of goods sold:
Total cost of goods sold	$ 45,029	$ 43,295	$ 132,724	$ 148,411

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
Net income (loss)	$ 19,626	$ 2,553	$ 48,135	$ (34,241)
Other comprehensive income (loss):
Foreign currency translation adjustment	1,521	1,366	(2,694)	3,272
Other	7	103	22	38
Other comprehensive income (loss)	1,528	1,469	(2,672)	3,310
Comprehensive income (loss)	$ 21,154	$ 4,022	$ 45,463	$ (30,931)

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Balance at Jun. 30, 2017	$ 222,529	$ 363,872	$ (17,188)	$ 569,213
Balance (in shares) at Jun. 30, 2017	18,689,568
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 2,575			2,575
Exercise of stock options (in shares)	113,255
Vesting of RSUs (in shares)	401,773
Shares issued under employee stock purchase program	$ 4,033			4,033
Shares issued under employee stock purchase program (in shares)	78,310
Stock-based compensation	$ 17,754			17,754
Repurchase of common stock	$ (59,684)			(59,684)
Repurchase of common stock (in shares)	(972,481)
Taxes paid related to net share settlement of equity awards	$ (20,574)			(20,574)
Taxes paid related to net share settlement of equity awards (in shares)	(244,995)
Net income (loss)		(34,241)		(34,241)
Other comprehensive income (loss)			3,310	3,310
Balance at Mar. 31, 2018	$ 166,633	329,631	(13,878)	482,386
Balance (in shares) at Mar. 31, 2018	18,065,430
Balance at Dec. 31, 2017	$ 218,343	327,078	(15,347)	530,074
Balance (in shares) at Dec. 31, 2017	18,978,031
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 708			708
Exercise of stock options (in shares)	31,500
Vesting of RSUs (in shares)	1,435
Shares issued under employee stock purchase program	$ 2,072			2,072
Shares issued under employee stock purchase program (in shares)	40,822
Stock-based compensation	$ 6,014			6,014
Repurchase of common stock	$ (59,684)			(59,684)
Repurchase of common stock (in shares)	(972,481)
Taxes paid related to net share settlement of equity awards	$ (820)			(820)
Taxes paid related to net share settlement of equity awards (in shares)	(13,877)
Net income (loss)		2,553		2,553
Other comprehensive income (loss)			1,469	1,469
Balance at Mar. 31, 2018	$ 166,633	329,631	(13,878)	482,386
Balance (in shares) at Mar. 31, 2018	18,065,430
Balance at Jun. 30, 2018	$ 169,475	334,745	(14,784)	$ 489,436
Balance (in shares) at Jun. 30, 2018	18,032,374			18,032,374
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 1,985			$ 1,985
Exercise of stock options (in shares)	108,008
Vesting of RSUs (in shares)	357,924
Shares issued under employee stock purchase program	$ 4,180			4,180
Shares issued under employee stock purchase program (in shares)	75,313
Stock-based compensation	$ 19,514			19,514
Repurchase of common stock	$ (21,029)			(21,029)
Repurchase of common stock (in shares)	(288,316)
Taxes paid related to net share settlement of equity awards	$ (13,741)			(13,741)
Taxes paid related to net share settlement of equity awards (in shares)	(184,462)
Net income (loss)		48,135		48,135
Other comprehensive income (loss)			(2,672)	(2,672)
Balance at Mar. 31, 2019	$ 160,384	382,880	(17,456)	$ 525,808
Balance (in shares) at Mar. 31, 2019	18,100,841			18,100,841
Balance at Dec. 31, 2018	$ 151,926	363,254	(18,984)	$ 496,196
Balance (in shares) at Dec. 31, 2018	18,020,907
Increase (Decrease) in Shareholders' Equity
Exercise of stock options	$ 1,196			1,196
Exercise of stock options (in shares)	58,613
Vesting of RSUs (in shares)	1,219
Shares issued under employee stock purchase program	$ 2,160			2,160
Shares issued under employee stock purchase program (in shares)	36,020
Stock-based compensation	$ 5,888			5,888
Taxes paid related to net share settlement of equity awards	$ (786)			(786)
Taxes paid related to net share settlement of equity awards (in shares)	(15,918)
Net income (loss)		19,626		19,626
Other comprehensive income (loss)			1,528	1,528
Balance at Mar. 31, 2019	$ 160,384	$ 382,880	$ (17,456)	$ 525,808
Balance (in shares) at Mar. 31, 2019	18,100,841			18,100,841

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss)	$ 48,135	$ (34,241)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	42,401	55,368
Stock-based compensation expense	19,514	17,754
Deferred income taxes	(3,220)	50,775
Amortization of debt discount and issuance costs	6,733	6,426
Impairment charges		7,181
Other	1,617	2,125
Changes in operating assets and liabilities-net of business acquisitions:
Accounts receivable	(5,967)	7,131
Inventories	16,232	(48,703)
Prepaid expenses and other assets	(6,620)	(22,121)
Accounts payable	(20,265)	19,522
Accrued payroll and related expenses	(4,008)	(1,689)
Advances from customers	4,258	32,152
Other	(11,066)	24,084
Net cash provided by operating activities	87,744	115,764
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(20,905)	(36,432)
Acquisition of businesses, net of cash acquired	(18,271)	(100,567)
Acquisition of intangible and other assets	(1,657)	(2,250)
Net cash used in investing activities	(40,833)	(139,249)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net borrowings on bank lines of credit	11,000	125,000
Proceeds from long-term debt	1,019	626
Payments on long-term debt	(1,880)	(1,933)
Proceeds from exercise of stock options and employee stock purchase plan	6,165	6,608
Payment of contingent consideration	(4,797)	(2,617)
Repurchase of common stock	(21,029)	(59,684)
Taxes paid related to net share settlement of equity awards	(13,741)	(20,574)
Net cash provided by (used in) financing activities	(23,263)	47,426
Effect of exchange rate changes on cash	(813)	410
Net increase in cash and cash equivalents	22,835	24,351
Cash and cash equivalents-beginning of period	84,814	169,650
Cash and cash equivalents-end of period	107,649	194,001
Cash paid, net during the period for:
Interest	9,394	6,508
Income taxes	$ 28,233	$ 21,728

Basis of Presentation

9 Months Ended

Mar. 31, 2019

Basis of Presentation

Basis of Presentation

1. Basis of Presentation

Description of Business

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

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

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

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

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

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, 2018. The results of operations for the nine months ended March 31, 2019 are not necessarily indicative of the operating results to be expected for the full 2019 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, values for inventories reported at lower of cost or net realizable value, stock-based compensation expense, income taxes, accrued warranty costs, and the recoverability, useful lives and valuation of recorded amounts of long-lived assets, identifiable intangible assets and goodwill.Changes in estimates are reflected in the periods during which they become known. Actual amounts may differ from these estimates and could differ materially.

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. In periods where a net loss is reported, basic and diluted net loss per share are the same since the effect of potential common shares is antidilutive and therefore excluded. The underlying equity component of the 1.25% convertible senior notes due 2022 (the “Notes”) discussed in Note 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,
	2018		2019		2018		2019
Net income (loss) available to common stockholders	$	2,553	$	19,626	$	(34,241)	$	48,135

Weighted average shares outstanding—basic		18,569		18,079		18,773		18,085
Dilutive effect of equity awards		577		592		—		593
Weighted average shares outstanding—diluted		19,146		18,671		18,773		18,678

Basic earnings (loss) per share	$	0.14	$	1.09	$	(1.82)	$	2.66
Diluted earnings (loss) per share	$	0.13	$	1.05	$	(1.82)	$	2.58
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect (in thousands)		288		44		753		46

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 $107.6 million at March 31, 2019. These funds were held primarily by us and our subsidiaries in the United States, United Kingdom, Singapore, Malaysia, and Mexico, and to a lesser extent in India, Canada and Germany among others. We have cash holdings that exceed insured limits for financial institutions; however, we mitigate this risk by utilizing high credit quality financial institutions throughout the world.

Fair Value of Financial Instruments

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

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. “Level 1” category includes assets and liabilities at quoted prices in active markets for identical assets and liabilities. “Level 2” category includes assets and liabilities from observable inputs other than quoted market prices. “Level 3” category includes assets and liabilities for which valuation techniques are unobservable and significant to the fair value measurement. As of June 30, 2018 and March 31, 2019, there were no assets where “Level 3” valuation techniques were used. Our contingent payment obligations related to acquisitions, which are further discussed in Note 9 to the condensed consolidated financial statements, are in the “Level 3” category for valuation purposes.

The fair values of our financial assets and liabilities as of June 30, 2018 and March 31, 2019 are categorized as follows (in thousands):


	June 30, 2018								March 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Insurance company contracts	$	—	$	31,897	$	—	$	31,897	$	—	$	34,647	$	—	$	34,647
Interest rate contract		—		18		—		18		—		4		—		4
Total assets	$	—	$	31,915	$	—	$	31,915	$	—	$	34,651	$	—	$	34,651
Liabilities—contingent consideration	$	—	$	—	$	15,713	$	15,713	$	—	$	—	$	16,869	$	16,869

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 are reclassified as net income when the hedge transaction settles.

Revenue Recognition

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

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

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

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

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

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

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

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

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

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

Effect of Adopting ASC 606. Adopting ASC 606 did not require any cumulative effect adjustment to retained earnings as of July 1, 2018 because the impact on retained earnings was immaterial. The impact to our condensed consolidated statements of operations is shown below for the three and nine month periods ended March 31, 2019 and for the balance sheet as of March 31, 2019.

Statement of Operations (in thousands)


	Three Months Ended March 31, 2019						Nine Months Ended March 31, 2019
			Results						Results
			without						without
	Results		Adoption of		Effect of		Results		Adoption of		Effect of
	as Reported		ASC 606		Change		as Reported		ASC 606		Change
Revenue	$	304,284	$	293,254	$	11,030	$	873,738	$	843,815	$	29,923
Cost of goods sold		192,968		187,111		5,857		556,165		541,402		14,763
Operating expenses		79,196		75,508		3,688		237,489		227,144		10,345
Income from operations		32,120		30,635		1,485		80,084		75,269		4,815
Interest and other expense, net		(5,595)		(5,595)		—		(16,546)		(16,546)		—
Income tax provision		(6,899)		(6,625)		(274)		(15,403)		(14,593)		(810)
Net income	$	19,626	$	18,415	$	1,211	$	48,135	$	44,130	$	4,005

Balance Sheet (in thousands)


	March 31, 2019
			Balances
			without
	Balances		Adoption of		Effect of
	as Reported		ASC 606		Change
Assets
Accounts receivable, net	$	218,433	$	202,266	$	16,167
Inventories		297,704		312,494		(14,790)
Other assets		767,978		768,789		(811)
Liabilities
Current liabilities		425,500		428,939		(3,439)
Other liabilities		332,807		332,807		—
Stockholders’ Equity
Retained earnings		382,880		378,875		4,005

We disaggregate revenue by reporting segment (Security, Optoelectronics and Manufacturing, and Healthcare) to depict the nature of revenue in a manner consistent with our business operations and to be consistent with other communications and public filings. Refer to Note 11 to our condensed consolidated financial statements for additional details of revenues by reporting segment.

During the three and nine months ended March 31, 2019, we recognized additional revenue as a result of adopting ASC 606. This is primarily due to sales within our Security division where we met certain contractual performance obligations. As a result, this increased net income and accounts receivable and reduced inventories.

Contract Assets and Liabilities. We enter into contracts to sell products and provide services, and we recognize contract assets and liabilities that arise from these transactions. We recognize revenue and corresponding accounts receivable according to ASC 606 and, at times, recognize revenue in advance of the time when contracts give us the right to invoice a customer. We may also receive consideration, per the terms of a contract, from customers prior to transferring goods to the customer. We record customer deposits as a contract liability. Additionally, we may receive payments, most typically for service and warranty contracts, at the onset of the contract and before the services have been performed. In such instances, we record a deferred revenue liability. We recognize these contract liabilities as sales after all revenue recognition criteria are met. The table below shows the balance of contract assets and liabilities as of June 30, 2018 and March 31, 2019, including the change between the periods.

Contract Assets (in thousands)


	June 30,		March 31,
	2018		2019		Change		% Change
Unbilled revenue	$	13,087	$	25,590	$	12,503	96	%

Contract Liabilities (in thousands)


	June 30,		March 31,
	2018		2019		Change		% Change
Advances from customers	$	55,761	$	60,016	$	4,225	8	%
Deferred revenue—current		28,899		34,710		5,811	20	%
Deferred revenue—long-term		9,562		8,864		(698)	(7)	%

Remaining Performance Obligations. Remaining performance obligations related to ASC 606 represent the aggregate transaction price allocated to performance obligations under an original contract with a term greater than one year which are fully or partially unsatisfied at the end of the period.As of March 31, 2019, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $178.4 million. We expect to recognize revenue on approximately 44% of the remaining performance obligations over the next 12 months, and the remainder is expected to be recognized thereafter.

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

Recently Adopted Accounting Pronouncements

Revenue Recognition

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

Statement of Cash Flows

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

Income Taxes

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

Recently Issued Accounting Pronouncements Not Yet Adopted

Leases

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). This guidance requires lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by leases with terms of more than 12 months. The ASU also will require qualitative and quantitative disclosures designed to give financial statement readers information on the amount, timing, and uncertainty of cash flows arising from leases. This ASU is effective for us in the first quarter of fiscal 2020 with early adoption permitted. We plan to adopt the new lease standard effective July 1, 2019, and apply it using the new transition method, under which an entity initially applies the new standard at the adoption date, versus at the beginning of the earliest period presented, and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We continue to assess and have not yet made a determination on whether to elect the package of transition practical expedients. In preparation for implementation, we plan to use a software solution to assist with the new reporting requirements and continue to assess the effect of the guidance on existing accounting policies and the consolidated financial statements. We expect the valuation of our right-of-use assets and lease liabilities, previously described as operating leases, to approximate the present value of our forecasted future lease commitments. We are currently implementing processes to comply with the measurement and disclosure requirements.

Retirement Benefit Plans

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

Intangibles

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

Business Combinations

9 Months Ended

Mar. 31, 2019

Business Combinations

Business Combinations

2. Business Combinations

Under ASU 805, Business Combinations 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. We may record adjustments to the assets acquired and liabilities assumed, with corresponding adjustments to goodwill, during the one-year post-acquisition measurement period as additional information becomes available. Upon the conclusion of the measurement period, any subsequent adjustments are reflected in reported earnings.

Fiscal Year 2019 Business Acquisitions

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

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

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

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

Fiscal Year 2018 Business Acquisitions

Acquisition of Explosive Trace Detection Business

On July 7, 2017, we acquired the global explosive trace detection business (“ETD”) from Smiths Group plc. This acquisition was a carve out from a larger entity. We financed the total purchase price of $80.5 million with a combination of cash on hand and borrowings under our revolving bank line of credit. Pro-forma results were not presented because, based on the date of the acquisition, there was not a material difference between pro-forma and actual results in the condensed consolidated financial statements of operations for the nine months ended March 31, 2018 and 2019.

The valuation of certain assets and liabilities of ETD were performed by a third party valuation specialist. The final allocation was as follows:


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

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


	Weighted
	Average Estimated	Fair
	Lives	Value

Developed technology	10 years	$	14,210
Customer relationships/backlog	7 years		16,070
In-process research and development (“IPR&D”)			90
Total intangible assets		$	30,370

Other Fiscal Year 2018 Business Acquisitions

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

In January 2018, we (through our Optoelectronics and Manufacturing division) acquired an electronics component designer and manufacturer for approximately $22 million, plus up to $6 million in contingent consideration, which may be earned over a three-year period. The goodwill recognized for this business is not expected to be deductible for income tax purposes. The acquisition was financed with cash on hand and borrowings under our revolving bank line of credit.

Balance Sheet Details

9 Months Ended

Mar. 31, 2019

Balance Sheet Details

Balance Sheet Details

3. Balance Sheet Details

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


	June 30,		March 31,
	2018		2019
Accounts receivable	$	225,336	$	234,411
Less allowance for doubtful accounts		(14,592)		(15,978)
Total	$	210,744	$	218,433


	June 30,		March 31,
	2018		2019
Raw materials	$	156,612	$	151,383
Work-in-process		89,468		79,188
Finished goods		67,472		67,133
Total	$	313,552	$	297,704


	June 30,		March 31,
	2018		2019
Land	$	16,569	$	16,561
Buildings, civil works and improvements		56,585		55,322
Leasehold improvements		9,681		7,903
Equipment and tooling		117,294		127,579
Furniture and fixtures		3,331		3,202
Computer equipment		18,759		18,199
Computer software		19,509		19,647
Computer software implementation in process		4,318		7,747
Construction in process		790		4,682
Total		246,836		260,842
Less accumulated depreciation and amortization		(131,312)		(135,926)
Property and equipment, net	$	115,524	$	124,916

Depreciation expense was $5.4 million and $5.1 million for the three months ended March 31, 2018 and 2019, respectively, and approximately $38.4 million and $15.4 million for the nine months ended March 31, 2018 and 2019, respectively. The year-over-year decrease in depreciation for the nine months ended March 31, 2019 is due to certain assets becoming fully depreciated in fiscal year 2018, as well as the transfer of certain assets as discussed below.

In January 2018, we entered into a two-year agreement with the Mexican government to continue providing security screening services. Upon inception of the contract, we transferred certain fixed assets with a net book value of $29.5 million to the customer, and this remaining cost to obtain the contract is amortized on a straightline basis over the term of the contract as corresponding revenues are recognized. During the three and nine months ended March 31, 2019, we recognized $3.6 million and $10.7 million, respectively, of amortization expense related to such assets. For the three and nine months ended March 31, 2018, we recognized $3.2 million of amortization expense related to such assets. As of March 31, 2019, $11.1 million was recorded within Prepaid expenses and other current assets.

Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2019

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, 2019 are as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2018	$	191,810	$	40,157	$	60,246	$	292,213
Goodwill acquired or adjusted during the period		7,992		—		7,472		15,464
Foreign currency translation adjustment		(135)		6		(87)		(216)
Balance as of March 31, 2019	$	199,667	$	40,163	$	67,631	$	307,461

Intangible assets consisted of the following (in thousands):


		June 30, 2018						March 31, 2019
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	8 years	$	28,174	$	(9,423)	$	18,751	$	28,706	$	(11,730)	$	16,976
Patents	19 years		8,401		(1,618)		6,783		8,456		(1,785)		6,671
Developed technology	10 years		52,780		(9,706)		43,074		54,604		(13,861)		40,743
Customer relationships/backlog	7 years		63,398		(17,891)		45,507		66,085		(22,842)		43,243
Total amortizable assets			152,753		(38,638)		114,115		157,851		(50,218)		107,633
Non-amortizable assets:
Trademarks and trade names			25,596		—		25,596		26,509		—		26,509
IPR&D			2,290		—		2,290		2,290		—		2,290
Total intangible assets		$	180,639	$	(38,638)	$	142,001	$	186,650	$	(50,218)	$	136,432

Amortization expense related to intangible assets was $5.1 million and $5.4 million for the three months ended March 31, 2018 and 2019, respectively. For the nine months ended March 31, 2018 and 2019, amortization expense was $13.8 million and $16.3 million, respectively. At March 31, 2019, the estimated future amortization expense of intangible assets was as follows (in thousands):


2019 (remaining 3 months)	$	5,329
2020		20,022
2021		18,732
2022		14,832
2023		13,750
Thereafter, including assets that have not yet begun to be amortized		34,968
Total	$	107,633

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 and 2019, we capitalized software development costs in the amounts of $1.0 million and $0.8 million, respectively. For the nine months ended March 31, 2018 and 2019, we capitalized software development costs in the amounts of $1.3 million and $1.8 million, respectively.

Impairment, restructuring and other charges

9 Months Ended

Mar. 31, 2019

Impairment, restructuring and other charges

Impairment, restructuring and other charges

5. Impairment, restructuring and other charges

Impairment

During the three and nine months ended March 31, 2019, there were no impairment charges. During the nine months ended March 31, 2018, we (i) abandoned a product line in our Security division that became redundant as a result of the ETD acquisition, (ii) abandoned a non-core product line in our Healthcare division, and (iii) abandoned certain trademarks in our Optoelectronics and Manufacturing division that were 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 had no value and were permanently impaired.

Restructuring and Other Charges

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

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


	Three Months Ended March 31, 2018
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		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, net		—		5,766		—		3,783		9,549
Total expensed	$	226	$	9,707	$	269	$	3,860	$	14,062


	Three Months Ended March 31, 2019
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	—	$	—	$	—
Employee termination costs		—		—		—		—		—
Facility closures/consolidation		—		—		—		—		—
Legal and accrued settlement costs, net		—		—		—		(1,777)		(1,777)
Total expensed	$	—	$	—	$	—	$	(1,777)	$	(1,777)


	Nine Months Ended March 31, 2018
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		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, net		—		9,966		—		3,885		13,851
Total expensed	$	2,127	$	14,729	$	1,490	$	5,143	$	23,489


	Nine Months Ended March 31, 2019
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	287	$	—	$	287
Employee termination costs		—		1,442		133		—		1,575
Facility closures/consolidation		—		2,084		—		—		2,084
Legal and accrued settlement costs, net		—		—		—		(2,792)		(2,792)
Total expensed	$	—	$	3,526	$	420	$	(2,792)	$	1,154

The changes in the accrued liability for restructuring and other charges for the nine month period ended March 31, 2019 were as follows (in thousands):


					Facility
			Employee		Closure/		Legal
	Acquisition-		Termination		Consolidation		and Settlement
	related Costs		Costs		Cost		Charges		Total
Balance as of June 30, 2018	$	—	$	837	$	399	$	14,065	$	15,301
Restructuring and other charges,net		287		1,575		2,084		(2,792)		1,154
Payments and other adjustments		(287)		(2,147)		(2,163)		(1,195)		(5,792)
Balance as of March 31, 2019	$	—	$	265	$	320	$	10,078	$	10,663

Borrowings

9 Months Ended

Mar. 31, 2019

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, or a comparable rate in accordance with the terms of the credit agreement, plus a margin of 1.50% as of March 31, 2019 (which 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, 2019, 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 assets and the assets of certain of our subsidiaries. The credit agreement contains various representations and warranties, affirmative, negative and financial covenants and conditions of default. As of March 31, 2019, there was $124.0 million of borrowings outstanding under the revolving credit facility and $59.1 million outstanding under the letters of credit sub-facility. The amount available to borrow under the credit facility as of March 31, 2019 was $341.9 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 credit facility. Therefore, borrowings under the credit facility are included in current liabilities. As of March 31, 2019, we are in compliance with all covenants under this credit facility.

On April 23, 2019, we entered into an amendment to our revolving credit facility, which, among other things (i) increases the size of the credit facility to $535 million, (ii) extends the maturity date to April 2024, (iii) reduces the margin rate by 0.25% for each pricing tier and (iv) reduces the unused commitment fee.

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% 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, and 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 amortized as interest expense over the life of the Notes using the effective interest method. The total interest expense related to the Notes for the three and nine months ended March 31, 2019 was $3.2 million and $9.4 million, respectively, which consisted of $0.9 million and $2.7 million of contractual interest expense, $2.0 million and $5.8 million of debt discount amortization, and $0.3 million and $0.9 million of amortization of debt issuance costs. The total interest expense related to the Notes for the three and nine months ended March 31, 2018 was $3.1 million and $9.2 million, respectively, which consisted 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, 2019, the unamortized debt discount was $29.3 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 $4.0 million as of March 31, 2019 is amortized on a straight-line basis, which approximates the effective interest method, over the life of the Notes. Based on our March 31, 2019 stock price of $87.60 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, 2019, $53.3 million of letters of credit were outstanding under these credit facilities. As of March 31, 2019, the total amount available under these credit facilities was $15.1 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 principal on the loan, together with interest at LIBOR plus 1.25%, is payable on a monthly basis over seven years. The outstanding balance on this loan as of March 31, 2019 was $0.9 million compared to a balance of $2.1 million as of June 30, 2018. 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 at 2.2% per annum for the term of the loan.

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


	June 30,		March 31,
	2018		2019
1.25% convertible notes due 2022:
Principal amount	$	287,500	$	287,500
Unamortized discount		(35,133)		(29,281)
Unamortized debt issuance costs		(4,897)		(4,016)
1.25% convertible notes due 2022, net of unamortized discount and debt issuance costs		247,470		254,203
Term loans		2,114		925
Other long-term debt		1,658		1,985
		251,242		257,113
Less current portion of long-term debt		(2,262)		(1,702)
Long-term portion of debt	$	248,980	$	255,411

Stockholders' Equity

9 Months Ended

Mar. 31, 2019

Stockholders' Equity

Stockholders' Equity

7. Stockholders’ Equity

Stock-based Compensation

As of March 31, 2019, we maintained the Amended and Restated 2012 Incentive Award Plan (the “2012 Plan”) and the Amended and Restated 2006 Equity Participation Plan (“2006 Plan”) as stock-based employee compensation plans. No further grants may be made under the 2006 Plan. In addition, pursuant to the acquisition of American Science and Engineering, Inc. (“AS&E”), we assumed two stock-based employee compensation plans: the AS&E 2005 Equity and Incentive Plan and the AS&E 2014 Equity and Incentive Plan (collectively the " AS&E Plans”). No new equity grants will be made under the AS&E Plans. The 2012 Plan, the 2006 Plan, and the AS&E Plans are collectively referred to as the “OSI Plans”.

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


	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2019		2018		2019
Cost of goods sold	$	251	$	182	$	739	$	539
Selling, general and administrative		5,614		5,543		16,574		18,487
Research and development		149		163		441		488
Stock-based compensation expense	$	6,014	$	5,888	$	17,754	$	19,514

As of March 31, 2019, total unrecognized compensation cost related to stock-based compensation grants under the OSI Plans were estimated at $0.6 million for stock options and $19.4 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, 2019:


		Weighted Average		Weighted-Average	Aggregate
	Number of	Exercise		Remaining Contractual	Intrinsic Value
	Options	Price		Term	(in thousands)
Outstanding at June 30, 2018	677,525	$	32.80
Granted	18,135	$	72.39
Exercised	(108,008)	$	22.82
Expired or forfeited	(9,618)	$	70.28
Outstanding at March 31, 2019	578,034	$	35.29	2.6 years	$	30,247
Exercisable at March 31, 2019	540,646	$	32.37	2.1 years	$	29,865

The following summarizes RSU award activity during the nine months ended March 31, 2019:


		Weighted-
		Average
	Shares	Fair Value
Nonvested at June 30, 2018	526,377	$	71.56
Granted	362,025		73.80
Vested	(357,924)		71.01
Forfeited	(13,669)		73.74
Nonvested at March 31, 2019	516,809	$	73.45

As of March 31, 2019, there were approximately 1.6 million shares available for grant under the 2012 Plan. Under the terms of the 2012 Plan, RSUs granted from the pool of shares available for grant reduce the pool by 1.87 shares for each award granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 1.87 shares for each award forfeited.

We granted 117,346 and 97,514 performance-based RSUs during the nine months ended March 31, 2018 and 2019, respectively. These performance based RSU awards are contingent on the achievement of certain performance metrics. The payout related to these awards can range from zero to 280% of the original number of shares or units awarded.

Share Repurchase Program

In March 2018, our Board of Directors authorized a share repurchase program of up to 1,000,000 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.

We did not repurchase any shares during the three months ended March 31, 2019. During the nine months ended March 31, 2019, we repurchased 288,316 shares of our common stock, and as of March 31, 2019, there were 562,707 shares available to repurchase under the program.

Retirement Benefit Plans

9 Months Ended

Mar. 31, 2019

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,
	2018		2019		2018		2019
Service cost	$	216	$	98	$	648	$	295
Interest cost		9		8		25		25
Amortization of prior service cost		70		14		210		42
Net periodic pension expense	$	295	$	120	$	883	$	362

For each of the three months ended March 31, 2018 and 2019, we made no contributions to these defined benefit plans. For each of the nine months ended March 31, 2018 and 2019, we made contributions of $1.0 million to these defined benefit plans.

We also maintain various defined contribution plans. For each of the three months ended March 31, 2018 and 2019, we made contributions of $1.6 million to these defined contribution plans. For the nine months ended March 31, 2018 and 2019, we made contributions of $4.6 million and $4.7 million, respectively, to these defined contribution plans.

Commitments and Contingencies

9 Months Ended

Mar. 31, 2019

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 $28.7 million as of March 31, 2019. 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 which occurred through the end of fiscal year 2009 as additions to the purchase price of the acquired business; and we made $1.3 million of such payments during the nine months ended March 31, 2019. No payments were made during the three months ended March 31, 2019. For acquisitions completed after fiscal 2009, pursuant to Financial Accounting Standard 141R, which was codified into ASC 805, the estimated fair value of these obligations is recorded as a liability at the time of the acquisition with subsequent revisions recorded in Selling, general and administrative expense in the consolidated financial statements. The estimated fair value measurements of contingent earn-out obligations are primarily based on unobservable inputs, which may include projected revenues, gross margins, operating income, and the estimated probability of achieving the earn-outs.

These projections and probabilities are used to estimate future contingent earnout payments, which are discounted back to present value to compute contingent earnout liabilities. The following table provides a roll-forward from June 30, 2018 to March 31, 2019 of the contingent consideration liability, which is included in Other accrued expenses and current liabilities, and Other long-term liabilities in our consolidated balance sheets:


Beginning fair value, June 30, 2018	$	15,713
Additions		5,173
Change in fair value		(512)
Payments		(3,505)
Ending fair value, March 31, 2019	$	16,869

Environmental Contingencies

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

We continue to investigate contamination of the soil and groundwater beneath our Hawthorne, California facility that resulted from unspecified on and off site releases occurring prior to our occupancy. We believe the releases are of a historical nature and not uncommon to the region in general. We continue to take voluntary actions, in cooperation with the local governing agency, to 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 are 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 and 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 indemnification agreements due to a limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. We have not recorded any liability for costs related to contingent indemnification obligations as of March 31, 2019.

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

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. The warranty provision also includes estimated warranty expenses assumed as part of business acquisitions. 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,
	2018		2019
Balance at beginning of period	$	15,178	$	21,819
Additions		9,191		7,365
Acquisitions and adjustments		1,240		(230)
Reductions for warranty repair costs		(5,219)		(6,545)
Balance at end of period	$	20,390	$	22,409

Legal Proceedings

In December 2017, a short seller released a report regarding our compliance with the FCPA. Following that report, we and certain of our executive officers have been named as defendants in several lawsuits in the United States District Court for the Central District of California (the “District Court”) that were filed in December 2017 and February 2018. Each of the complaints closely tracks the allegations set forth in the short seller’s report. All of the actions, which were consolidated by the District Court in March 2018 in an action captioned Arkansas Teacher Retirement System et al. v. OSI Systems, Inc. et al., No. 17 cv 08841, allege violations of Sections 10(b) and 20(a) of Exchange Act, relating to certain of our public statements and filings with the SEC, and seek damages and other relief based upon the allegations in the complaints. In April and May 2018, two shareholder derivative complaints were filed purportedly on behalf of the Company against the current members of our Board of Directors (as individual defendants), a former member of our Board of Directors, and certain members of management. The first, captioned Riley v. Chopra et al., No. 18 cv 03371, was filed in the District Court, and the second, captioned Genesee County Employees’ Retirement System v. Chopra, et al., No. BC705958, was filed in the Superior Court of the State of California, County of Los Angeles. In March 2019, a third shareholder derivative complaint captioned Kocen v. Chopra et al., No. 19 cv 01741 was filed in the District Court purportedly on behalf of the Company against the current members of our Board of Directors (as individual defendants) and one former member of our Board of Directors. The complaints allege, among other things, breach of fiduciary duties relating to the allegations contained in the above-mentioned short seller report. The complaints seek damages, restitution, injunctive relief, attorneys’ and experts’ fees, costs, expenses, and other unspecified relief. 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, both the SEC and the DOJ commenced investigations into our compliance with the FCPA. The SEC has subpoenaed documents from the Company, and we are responding to that subpoena and providing the same documents to the DOJ. 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 FCPA related investigations, or any penalties or remedial measures these agencies may seek. In an unrelated matter, the SEC and DOJ are also conducting an investigation of trading in our securities and have each subpoenaed information regarding trading by executives, directors, and employees, as well as our operations and disclosures in and around the time of certain trades. With respect to these trading related matters, we 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 trading related investigations, or any penalties or remedial measures these agencies may seek. We place a high priority on compliance with our anti corruption and securities trading policies and are cooperating with each of the government investigations.

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

Income Taxes	9 Months Ended
Income Taxes	Mar. 31, 2019
Income Taxes
Income Taxes	10. Income Taxes The Tax Cuts and Jobs Act (the “Tax Act”) enacted in 2017 resulted in the U.S. Federal income tax rate being reduced from 35% to 21% effective January 1, 2018. During the measurement period, which is one year from the date of enactment, or the completion of all estimates made in connection with the Tax Act, companies are permitted to make additional income tax adjustments and revisions of estimates related to the Tax Act. During the quarter ended December 31, 2018, we concluded our analysis of the impact of the Tax Act and made no adjustments to the provisional amounts previously recorded. While our accounting for the recorded impact of the Tax Act as of December 31, 2018 was deemed to be complete, this amount was based on prevailing regulations and available information as of December 31, 2018. Additional guidance issued by the Internal Revenue Service (IRS) and changes to State laws may continue to impact our recorded amounts after December 31, 2018. The Tax Act subjects a U.S. corporation to tax on its GILTI (Global Intangible Low Income Tax), FDII (Foreign-Derived Tangible Income Taxes), and BEAT (Base Erosion Anti-abuse Tax). We included the impact of these taxes in our forecast effective tax rate. Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. In fiscal 2019, we made the accounting policy election to recognize GILTI as a period expense. 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. Our effective tax rate for the three and nine months ended March 31, 2019 was 26.0% and 24.2%, respectively. Excluding certain discrete tax items, the adjusted effective tax rate for the three and nine months ended March 31, 2019 was 28.6% and 28.4%, respectively. During the three and nine month periods ended March 31, 2019, we recognized tax benefits for equity-based compensation of $0.7 million and $2.6 million, respectively, under ASU 2016-09 . As a result of the enactment of the Tax Act in December 2017, we recognized a charge of $56 million in the second quarter of fiscal 2018. Our reported tax rate was 18.1% for the third quarter of fiscal 2018, and 210.0% for the first nine months of fiscal 2018, which includes the Tax Act charge. The adjusted effective tax rate, excluding the Tax Act related charge and certain discrete tax items, was 28.2% for the three and nine months ended March 31, 2018.

Segment Information

9 Months Ended

Mar. 31, 2019

Segment Information

Segment Information

11. Segment Information

We have determined that we operate in three identifiable industry segments: (a) security and inspection systems (Security division), (b) medical monitoring and diagnostic cardiology systems (Healthcare division) and (c) optoelectronic devices and manufacturing (Optoelectronics and Manufacturing division). We also have a corporate segment (Corporate) that includes executive compensation and certain other general and administrative expenses; expenses related to stock issuances and legal, audit and other professional service fees not allocated to industry segments. Both the Security and Healthcare divisions comprise primarily end-product businesses whereas the Optoelectronics and Manufacturing division primarily supplies components and subsystems to OEM customers, as well as 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, 2018.

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,
	2018		2019		2018		2019
Revenues (1) — by Segment:
Security division	$	170,270	$	193,486	$	504,784	$	552,130
Healthcare division		43,758		48,865		141,793		138,697
Optoelectronics and Manufacturing division, including intersegment revenues		66,212		70,927		189,024		213,900
Intersegment revenues elimination		(12,941)		(8,994)		(33,641)		(30,989)
Total	$	267,299	$	304,284	$	801,960	$	873,738


	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2019		2018		2019
Income (loss) from operations — by Segment:
Security division	$	21,028	$	24,943	$	66,192	$	74,056
Healthcare division		(8,425)		5,418		(6,975)		5,752
Optoelectronics and Manufacturing division		6,547		7,320		16,224		22,212
Corporate		(10,730)		(5,354)		(28,601)		(21,265)
Eliminations (2)		(677)		(207)		(1,556)		(671)
Total	$	7,743	$	32,120	$	45,284	$	80,084


	June 30,		March 31,
	2018		2019
Assets — by Segment:
Security division	$	804,527	$	798,215
Healthcare division		167,611		154,212
Optoelectronics and Manufacturing division		220,373		245,176
Corporate		66,453		90,258
Eliminations (2)		(3,273)		(3,746)
Total	$	1,255,691	$	1,284,115

(1)

For the nine months ended March 31, 2018, one customer, Servicio de Administactión Tributaria (“SAT”) in Mexico, accounted for 11% of total net revenues. For the three months ended March 31, 2018 and the three and nine months ended March 31, 2019, no customer accounted for greater than 10% of total net revenues.

(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, 2019

Basis of Presentation

Description of Business

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,
	2018		2019		2018		2019
Net income (loss) available to common stockholders	$	2,553	$	19,626	$	(34,241)	$	48,135

Weighted average shares outstanding—basic		18,569		18,079		18,773		18,085
Dilutive effect of equity awards		577		592		—		593
Weighted average shares outstanding—diluted		19,146		18,671		18,773		18,678

Basic earnings (loss) per share	$	0.14	$	1.09	$	(1.82)	$	2.66
Diluted earnings (loss) per share	$	0.13	$	1.05	$	(1.82)	$	2.58
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect (in thousands)		288		44		753		46

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

The fair values of our financial assets and liabilities as of June 30, 2018 and March 31, 2019 are categorized as follows (in thousands):


	June 30, 2018								March 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Insurance company contracts	$	—	$	31,897	$	—	$	31,897	$	—	$	34,647	$	—	$	34,647
Interest rate contract		—		18		—		18		—		4		—		4
Total assets	$	—	$	31,915	$	—	$	31,915	$	—	$	34,651	$	—	$	34,651
Liabilities—contingent consideration	$	—	$	—	$	15,713	$	15,713	$	—	$	—	$	16,869	$	16,869

Derivative Instruments and Hedging Activity

Revenue Recognition

Statement of Operations (in thousands)


	Three Months Ended March 31, 2019						Nine Months Ended March 31, 2019
			Results						Results
			without						without
	Results		Adoption of		Effect of		Results		Adoption of		Effect of
	as Reported		ASC 606		Change		as Reported		ASC 606		Change
Revenue	$	304,284	$	293,254	$	11,030	$	873,738	$	843,815	$	29,923
Cost of goods sold		192,968		187,111		5,857		556,165		541,402		14,763
Operating expenses		79,196		75,508		3,688		237,489		227,144		10,345
Income from operations		32,120		30,635		1,485		80,084		75,269		4,815
Interest and other expense, net		(5,595)		(5,595)		—		(16,546)		(16,546)		—
Income tax provision		(6,899)		(6,625)		(274)		(15,403)		(14,593)		(810)
Net income	$	19,626	$	18,415	$	1,211	$	48,135	$	44,130	$	4,005

Balance Sheet (in thousands)


	March 31, 2019
			Balances
			without
	Balances		Adoption of		Effect of
	as Reported		ASC 606		Change
Assets
Accounts receivable, net	$	218,433	$	202,266	$	16,167
Inventories		297,704		312,494		(14,790)
Other assets		767,978		768,789		(811)
Liabilities
Current liabilities		425,500		428,939		(3,439)
Other liabilities		332,807		332,807		—
Stockholders’ Equity
Retained earnings		382,880		378,875		4,005

Contract Assets (in thousands)


	June 30,		March 31,
	2018		2019		Change		% Change
Unbilled revenue	$	13,087	$	25,590	$	12,503	96	%

Contract Liabilities (in thousands)


	June 30,		March 31,
	2018		2019		Change		% Change
Advances from customers	$	55,761	$	60,016	$	4,225	8	%
Deferred revenue—current		28,899		34,710		5,811	20	%
Deferred revenue—long-term		9,562		8,864		(698)	(7)	%

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

Recently Adopted Accounting Pronouncements

Revenue Recognition

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

Statement of Cash Flows

Income Taxes

Recently Issued Accounting Pronouncements Not Yet Adopted

Leases

Retirement Benefit Plans

Intangibles

Basis of Presentation (Tables)

9 Months Ended

Mar. 31, 2019

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,
	2018		2019		2018		2019
Net income (loss) available to common stockholders	$	2,553	$	19,626	$	(34,241)	$	48,135

Weighted average shares outstanding—basic		18,569		18,079		18,773		18,085
Dilutive effect of equity awards		577		592		—		593
Weighted average shares outstanding—diluted		19,146		18,671		18,773		18,678

Basic earnings (loss) per share	$	0.14	$	1.09	$	(1.82)	$	2.66
Diluted earnings (loss) per share	$	0.13	$	1.05	$	(1.82)	$	2.58
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect (in thousands)		288		44		753		46

Summary of fair values of financial assets and liabilities

The fair values of our financial assets and liabilities as of June 30, 2018 and March 31, 2019 are categorized as follows (in thousands):


	June 30, 2018								March 31, 2019
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Insurance company contracts	$	—	$	31,897	$	—	$	31,897	$	—	$	34,647	$	—	$	34,647
Interest rate contract		—		18		—		18		—		4		—		4
Total assets	$	—	$	31,915	$	—	$	31,915	$	—	$	34,651	$	—	$	34,651
Liabilities—contingent consideration	$	—	$	—	$	15,713	$	15,713	$	—	$	—	$	16,869	$	16,869

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

Statement of Operations (in thousands)


	Three Months Ended March 31, 2019						Nine Months Ended March 31, 2019
			Results						Results
			without						without
	Results		Adoption of		Effect of		Results		Adoption of		Effect of
	as Reported		ASC 606		Change		as Reported		ASC 606		Change
Revenue	$	304,284	$	293,254	$	11,030	$	873,738	$	843,815	$	29,923
Cost of goods sold		192,968		187,111		5,857		556,165		541,402		14,763
Operating expenses		79,196		75,508		3,688		237,489		227,144		10,345
Income from operations		32,120		30,635		1,485		80,084		75,269		4,815
Interest and other expense, net		(5,595)		(5,595)		—		(16,546)		(16,546)		—
Income tax provision		(6,899)		(6,625)		(274)		(15,403)		(14,593)		(810)
Net income	$	19,626	$	18,415	$	1,211	$	48,135	$	44,130	$	4,005

Balance Sheet (in thousands)


	March 31, 2019
			Balances
			without
	Balances		Adoption of		Effect of
	as Reported		ASC 606		Change
Assets
Accounts receivable, net	$	218,433	$	202,266	$	16,167
Inventories		297,704		312,494		(14,790)
Other assets		767,978		768,789		(811)
Liabilities
Current liabilities		425,500		428,939		(3,439)
Other liabilities		332,807		332,807		—
Stockholders’ Equity
Retained earnings		382,880		378,875		4,005

Schedule of contract assets and contract liabilities

Contract Assets (in thousands)


	June 30,		March 31,
	2018		2019		Change		% Change
Unbilled revenue	$	13,087	$	25,590	$	12,503	96	%

Contract Liabilities (in thousands)


	June 30,		March 31,
	2018		2019		Change		% Change
Advances from customers	$	55,761	$	60,016	$	4,225	8	%
Deferred revenue—current		28,899		34,710		5,811	20	%
Deferred revenue—long-term		9,562		8,864		(698)	(7)	%

Business Combinations (Tables) - ETD

9 Months Ended

Mar. 31, 2019

Business Combinations

Schedule of assets acquired and liabilities assumed


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

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

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


	Weighted
	Average Estimated	Fair
	Lives	Value

Developed technology	10 years	$	14,210
Customer relationships/backlog	7 years		16,070
In-process research and development (“IPR&D”)			90
Total intangible assets		$	30,370

Balance Sheet Details (Tables)

9 Months Ended

Mar. 31, 2019

Balance Sheet Details

Schedule of selected balance sheet accounts

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


	June 30,		March 31,
	2018		2019
Accounts receivable	$	225,336	$	234,411
Less allowance for doubtful accounts		(14,592)		(15,978)
Total	$	210,744	$	218,433


	June 30,		March 31,
	2018		2019
Raw materials	$	156,612	$	151,383
Work-in-process		89,468		79,188
Finished goods		67,472		67,133
Total	$	313,552	$	297,704


	June 30,		March 31,
	2018		2019
Land	$	16,569	$	16,561
Buildings, civil works and improvements		56,585		55,322
Leasehold improvements		9,681		7,903
Equipment and tooling		117,294		127,579
Furniture and fixtures		3,331		3,202
Computer equipment		18,759		18,199
Computer software		19,509		19,647
Computer software implementation in process		4,318		7,747
Construction in process		790		4,682
Total		246,836		260,842
Less accumulated depreciation and amortization		(131,312)		(135,926)
Property and equipment, net	$	115,524	$	124,916

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets

Schedule of changes in carrying amount of goodwill

The changes in the carrying value of goodwill for the nine month period ended March 31, 2019 are as follows (in thousands):


					Optoelectronics
					and
	Security		Healthcare		Manufacturing
	Division		Division		Division		Consolidated
Balance as of June 30, 2018	$	191,810	$	40,157	$	60,246	$	292,213
Goodwill acquired or adjusted during the period		7,992		—		7,472		15,464
Foreign currency translation adjustment		(135)		6		(87)		(216)
Balance as of March 31, 2019	$	199,667	$	40,163	$	67,631	$	307,461

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):


		June 30, 2018						March 31, 2019
	Weighted	Gross						Gross
	Average	Carrying		Accumulated		Intangibles		Carrying		Accumulated		Intangibles
	Lives	Value		Amortization		Net		Value		Amortization		Net
Amortizable assets:
Software development costs	8 years	$	28,174	$	(9,423)	$	18,751	$	28,706	$	(11,730)	$	16,976
Patents	19 years		8,401		(1,618)		6,783		8,456		(1,785)		6,671
Developed technology	10 years		52,780		(9,706)		43,074		54,604		(13,861)		40,743
Customer relationships/backlog	7 years		63,398		(17,891)		45,507		66,085		(22,842)		43,243
Total amortizable assets			152,753		(38,638)		114,115		157,851		(50,218)		107,633
Non-amortizable assets:
Trademarks and trade names			25,596		—		25,596		26,509		—		26,509
IPR&D			2,290		—		2,290		2,290		—		2,290
Total intangible assets		$	180,639	$	(38,638)	$	142,001	$	186,650	$	(50,218)	$	136,432

Schedule of estimated future amortization expense

At March 31, 2019, the estimated future amortization expense of intangible assets was as follows (in thousands):


2019 (remaining 3 months)	$	5,329
2020		20,022
2021		18,732
2022		14,832
2023		13,750
Thereafter, including assets that have not yet begun to be amortized		34,968
Total	$	107,633

Impairment, restructuring and other charges (Tables)

9 Months Ended

Mar. 31, 2019

Impairment, restructuring and other charges

Summary of 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, 2018
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		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, net		—		5,766		—		3,783		9,549
Total expensed	$	226	$	9,707	$	269	$	3,860	$	14,062


	Three Months Ended March 31, 2019
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	—	$	—	$	—
Employee termination costs		—		—		—		—		—
Facility closures/consolidation		—		—		—		—		—
Legal and accrued settlement costs, net		—		—		—		(1,777)		(1,777)
Total expensed	$	—	$	—	$	—	$	(1,777)	$	(1,777)


	Nine Months Ended March 31, 2018
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		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, net		—		9,966		—		3,885		13,851
Total expensed	$	2,127	$	14,729	$	1,490	$	5,143	$	23,489


	Nine Months Ended March 31, 2019
					Optoelectronics and
			Healthcare		Manufacturing
	Security Division		Division		Division		Corporate		Total
Acquisition-related costs	$	—	$	—	$	287	$	—	$	287
Employee termination costs		—		1,442		133		—		1,575
Facility closures/consolidation		—		2,084		—		—		2,084
Legal and accrued settlement costs, net		—		—		—		(2,792)		(2,792)
Total expensed	$	—	$	3,526	$	420	$	(2,792)	$	1,154

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

The changes in the accrued liability for restructuring and other charges for the nine month period ended March 31, 2019 were as follows (in thousands):


					Facility
			Employee		Closure/		Legal
	Acquisition-		Termination		Consolidation		and Settlement
	related Costs		Costs		Cost		Charges		Total
Balance as of June 30, 2018	$	—	$	837	$	399	$	14,065	$	15,301
Restructuring and other charges,net		287		1,575		2,084		(2,792)		1,154
Payments and other adjustments		(287)		(2,147)		(2,163)		(1,195)		(5,792)
Balance as of March 31, 2019	$	—	$	265	$	320	$	10,078	$	10,663

Borrowings (Tables)

9 Months Ended

Mar. 31, 2019

Borrowings

Schedule of long-term debt

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


	June 30,		March 31,
	2018		2019
1.25% convertible notes due 2022:
Principal amount	$	287,500	$	287,500
Unamortized discount		(35,133)		(29,281)
Unamortized debt issuance costs		(4,897)		(4,016)
1.25% convertible notes due 2022, net of unamortized discount and debt issuance costs		247,470		254,203
Term loans		2,114		925
Other long-term debt		1,658		1,985
		251,242		257,113
Less current portion of long-term debt		(2,262)		(1,702)
Long-term portion of debt	$	248,980	$	255,411

- Definition

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

+ References

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

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

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

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

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

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

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

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

+ Details

Stockholders' Equity (Tables)

9 Months Ended

Mar. 31, 2019

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,
	2018		2019		2018		2019
Cost of goods sold	$	251	$	182	$	739	$	539
Selling, general and administrative		5,614		5,543		16,574		18,487
Research and development		149		163		441		488
Stock-based compensation expense	$	6,014	$	5,888	$	17,754	$	19,514

Summary of stock option activity


		Weighted Average		Weighted-Average	Aggregate
	Number of	Exercise		Remaining Contractual	Intrinsic Value
	Options	Price		Term	(in thousands)
Outstanding at June 30, 2018	677,525	$	32.80
Granted	18,135	$	72.39
Exercised	(108,008)	$	22.82
Expired or forfeited	(9,618)	$	70.28
Outstanding at March 31, 2019	578,034	$	35.29	2.6 years	$	30,247
Exercisable at March 31, 2019	540,646	$	32.37	2.1 years	$	29,865

Summary of RSU award activity


		Weighted-
		Average
	Shares	Fair Value
Nonvested at June 30, 2018	526,377	$	71.56
Granted	362,025		73.80
Vested	(357,924)		71.01
Forfeited	(13,669)		73.74
Nonvested at March 31, 2019	516,809	$	73.45

Retirement Benefit Plans (Tables)

9 Months Ended

Mar. 31, 2019

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,
	2018		2019		2018		2019
Service cost	$	216	$	98	$	648	$	295
Interest cost		9		8		25		25
Amortization of prior service cost		70		14		210		42
Net periodic pension expense	$	295	$	120	$	883	$	362

Commitments and Contingencies (Tables)

9 Months Ended

Mar. 31, 2019

Commitments and Contingencies

Schedule of roll-forward of the contingent consideration liability


Beginning fair value, June 30, 2018	$	15,713
Additions		5,173
Change in fair value		(512)
Payments		(3,505)
Ending fair value, March 31, 2019	$	16,869

Schedule of changes in warranty provisions

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


	Nine Months Ended March 31,
	2018		2019
Balance at beginning of period	$	15,178	$	21,819
Additions		9,191		7,365
Acquisitions and adjustments		1,240		(230)
Reductions for warranty repair costs		(5,219)		(6,545)
Balance at end of period	$	20,390	$	22,409

Segment Information (Tables)

9 Months Ended

Mar. 31, 2019

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,
	2018		2019		2018		2019
Revenues (1) — by Segment:
Security division	$	170,270	$	193,486	$	504,784	$	552,130
Healthcare division		43,758		48,865		141,793		138,697
Optoelectronics and Manufacturing division, including intersegment revenues		66,212		70,927		189,024		213,900
Intersegment revenues elimination		(12,941)		(8,994)		(33,641)		(30,989)
Total	$	267,299	$	304,284	$	801,960	$	873,738


	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2019		2018		2019
Income (loss) from operations — by Segment:
Security division	$	21,028	$	24,943	$	66,192	$	74,056
Healthcare division		(8,425)		5,418		(6,975)		5,752
Optoelectronics and Manufacturing division		6,547		7,320		16,224		22,212
Corporate		(10,730)		(5,354)		(28,601)		(21,265)
Eliminations (2)		(677)		(207)		(1,556)		(671)
Total	$	7,743	$	32,120	$	45,284	$	80,084


	June 30,		March 31,
	2018		2019
Assets — by Segment:
Security division	$	804,527	$	798,215
Healthcare division		167,611		154,212
Optoelectronics and Manufacturing division		220,373		245,176
Corporate		66,453		90,258
Eliminations (2)		(3,273)		(3,746)
Total	$	1,255,691	$	1,284,115

(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, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Feb. 28, 2017
Computation of basic and diluted earnings per share
Net income (loss) available to common stockholders	$ 19,626	$ 2,553	$ 48,135	$ (34,241)
Weighted average shares outstanding-basic	18,079	18,569	18,085	18,773
Dilutive effect of equity awards	592	577	593
Weighted average shares outstanding-diluted	18,671	19,146	18,678	18,773
Basic earnings (loss) per share	$ 1.09	$ 0.14	$ 2.66	$ (1.82)
Diluted earnings (loss) per share	$ 1.05	$ 0.13	$ 2.58	$ (1.82)
Weighted average shares excluded from diluted earnings (loss) per share due to their anti-dilutive effect (in thousands)	44	288	46	753
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, 2019	Jun. 30, 2018
Cash Equivalents
Cash and cash equivalents	$ 107,649	$ 84,814

Basis of Presentation - Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Jun. 30, 2018
Fair Value of Financial Instruments
Liabilities-contingent consideration	$ 16,869	$ 15,713
Recurring
Fair Value of Financial Instruments
Insurance company contracts	34,647	31,897
Interest rate contract	4	18
Total assets	34,651	31,915
Liabilities-contingent consideration	16,869	15,713
Recurring \| Level 2
Fair Value of Financial Instruments
Insurance company contracts	34,647	31,897
Interest rate contract	4	18
Total assets	34,651	31,915
Recurring \| Level 3
Fair Value of Financial Instruments
Total assets	0	0
Liabilities-contingent consideration	$ 16,869	$ 15,713

Basis of Presentation - Revenue Recognition (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jul. 01, 2018	Jun. 30, 2018
Revenue Recognition
Revenues	$ 304,284	$ 267,299	$ 873,738	$ 801,960
Costs of goods sold	192,968	169,714	556,165	511,474
Operating expenses	79,196	89,842	237,489	245,202
Income from operations	32,120	7,743	80,084	45,284
Interest expense and other expense, net	(5,595)	(4,625)	(16,546)	(14,156)
Income tax provision	(6,899)	(565)	(15,403)	(65,369)
Net income (loss)	19,626	$ 2,553	48,135	$ (34,241)
Assets
Accounts receivable, net	218,433		218,433			$ 210,744
Inventories	297,704		297,704			313,552
Other assets	767,978		767,978
Liabilities
Current liabilities	425,500		425,500			443,322
Other liabilities	332,807		332,807
Stockholders' Equity
Retained earnings	382,880		382,880			334,745
Contract Assets
Unbilled revenue	25,590		25,590			13,087
Contract Liabilities
Advances from customers	60,016		60,016			55,761
Deferred revenue - current	34,710		34,710			28,899
Deferred revenue - long-term	8,864		8,864			9,562
Remaining Performance Obligations
Revenue remaining performance obligation	178,400		$ 178,400
Revenue, Practical Expedient, Financing Component [true false]			true
Recently Adopted Accounting Pronouncements
Prepaid expenses and other assets	$ 35,050		$ 35,050			$ 41,587
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-10-01
Remaining Performance Obligations
Remaining performance obligation expected timing of satisfaction period	12 months		12 months
Remaining performance obligation expected percentage recognized	44.00%		44.00%
ASU 2014-09 \| Balances without Adoption of ASC 606
Revenue Recognition
Revenues	$ 293,254		$ 843,815
Costs of goods sold	187,111		541,402
Operating expenses	75,508		227,144
Income from operations	30,635		75,269
Interest expense and other expense, net	(5,595)		(16,546)
Income tax provision	(6,625)		(14,593)
Net income (loss)	18,415		44,130
Assets
Accounts receivable, net	202,266		202,266
Inventories	312,494		312,494
Other assets	768,789		768,789
Liabilities
Current liabilities	428,939		428,939
Other liabilities	332,807		332,807
Stockholders' Equity
Retained earnings	378,875		378,875
ASU 2014-09 \| Effect of Change
Revenue Recognition
Revenues	11,030		29,923
Costs of goods sold	5,857		14,763
Operating expenses	3,688		10,345
Income from operations	1,485		4,815
Income tax provision	(274)		(810)
Net income (loss)	1,211		4,005
Assets
Accounts receivable, net	16,167		16,167
Inventories	(14,790)		(14,790)
Other assets	(811)		(811)
Liabilities
Current liabilities	(3,439)		(3,439)
Stockholders' Equity
Retained earnings	4,005		4,005
Contract Assets
Unbilled revenue	12,503		$ 12,503
Percentage of change in unbilled revenue			96.00%
Contract Liabilities
Advances from customers	4,225		$ 4,225
Deferred revenue - current	5,811		5,811
Deferred revenue - long-term	$ (698)		$ (698)
Percentage of of change in customer deposits and prepayments			8.00%
Percentage of change deferred revenue current			20.00%
Percentage of change deferred revenue noncurrent			(7.00%)
ASU 2016-16
Recently Adopted Accounting Pronouncements
Prepaid expenses and other assets					$ (3,000)
Deferred tax asset					$ 3,000

Business Combinations - Fiscal Year 2019 Business Acquisitions (Details) - USD ($) $ in Millions		1 Months Ended
	Jul. 31, 2018	Aug. 31, 2018
Optoelectronics solutions business
Business Combinations
Total purchase price	$ 17.5
Maximum potential earnout consideration	$ 1.0
A privately held services company
Business Combinations
Total purchase price		$ 0.8
Maximum potential earnout consideration		$ 5.0
Contingent consideration earnout period		5 years

Business Combinations - Explosive Trace Detection (Details) - USD ($) $ in Thousands	Jul. 07, 2017	Mar. 31, 2019	Jun. 30, 2018
Allocation of total consideration to assets acquired and liabilities assumed
Goodwill		$ 307,461	$ 292,213
ETD
Business Combinations
Total purchase price	$ 80,500
Allocation of total consideration to assets acquired and liabilities assumed
Cash and cash equivalents	4
Accounts receivable	15,517
Inventories	11,678
Property and equipment	1,599
Intangible assets	30,370
Deferred tax assets	2,738
Other long-term assets	297
Accounts payable	(4,784)
Accrued payroll and related expenses	(2,116)
Deferred revenues - current	(924)
Accrued warranties	(2,068)
Advances from customers	(670)
Other accrued expenses and current liabilities	(1,074)
Deferred revenues - long term	(232)
Net assets acquired	50,335
Goodwill	30,132
Total consideration	$ 80,467

Business Combinations - Intangible Assets (Details) - ETD $ in Thousands	Jul. 07, 2017 USD ($)
Business Combinations
Total intangible assets	$ 30,370
IPR&D
Business Combinations
Non-amortizable asset	$ 90
Developed technology
Business Combinations
Weighted Lives Average (in years)	10 years
Amortizable assets	$ 14,210
Customer relationships/backlog
Business Combinations
Weighted Lives Average (in years)	7 years
Amortizable assets	$ 16,070

Business Combinations - Other Business Acquisition (Details) - An electronics component designer and manufacturer $ in Millions	1 Months Ended
	Jan. 31, 2018 USD ($)
Business Combinations
Total purchase price	$ 22
Maximum amount of contingent consideration	$ 6
Contingent consideration earnout period	3 years

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	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Accounts Receivable
Accounts receivable		$ 234,411		$ 234,411		$ 225,336
Less allowance for doubtful accounts		(15,978)		(15,978)		(14,592)
Total		218,433		218,433		210,744
Inventories
Raw materials		151,383		151,383		156,612
Work-in-process		79,188		79,188		89,468
Finished goods		67,133		67,133		67,472
Total		297,704		297,704		313,552
Property and Equipment
Property and equipment, gross		260,842		260,842		246,836
Less accumulated depreciation and amortization		(135,926)		(135,926)		(131,312)
Property and equipment, net		124,916		124,916		115,524
Depreciation expense		5,100	$ 5,400	15,400	$ 38,400
Mexican government
Contract with Mexican government
Term of agreement	2 years
Net book value of certain fixed assets transferred	$ 29,500
Recognized amortization expense		3,600		10,700
Remaining cost to obtain the contract			$ 3,200		$ 3,200
Prepaid expenses and other current assets \| Mexican government
Contract with Mexican government
Remaining cost to obtain the contract		11,100		11,100
Land
Property and Equipment
Property and equipment, gross		16,561		16,561		16,569
Buildings, civil works and improvements
Property and Equipment
Property and equipment, gross		55,322		55,322		56,585
Leasehold improvements
Property and Equipment
Property and equipment, gross		7,903		7,903		9,681
Equipment and tooling
Property and Equipment
Property and equipment, gross		127,579		127,579		117,294
Furniture and fixtures
Property and Equipment
Property and equipment, gross		3,202		3,202		3,331
Computer equipment
Property and Equipment
Property and equipment, gross		18,199		18,199		18,759
Computer software
Property and Equipment
Property and equipment, gross		19,647		19,647		19,509
Computer software implementation in process
Property and Equipment
Property and equipment, gross		7,747		7,747		4,318
Construction in process
Property and Equipment
Property and equipment, gross		$ 4,682		$ 4,682		$ 790

Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2019 USD ($)
Changes in the carrying value of goodwill
Balance at the beginning of the period	$ 292,213
Goodwill acquired or adjusted during the period	15,464
Foreign currency translation adjustment	(216)
Balance at the end of the period	307,461
Security Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	191,810
Goodwill acquired or adjusted during the period	7,992
Foreign currency translation adjustment	(135)
Balance at the end of the period	199,667
Healthcare Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	40,157
Foreign currency translation adjustment	6
Balance at the end of the period	40,163
Optoelectronics and Manufacturing Division
Changes in the carrying value of goodwill
Balance at the beginning of the period	60,246
Goodwill acquired or adjusted during the period	7,472
Foreign currency translation adjustment	(87)
Balance at the end of the period	$ 67,631

Goodwill and Intangible Assets - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Amortizable assets:
Gross Carrying Value	$ 157,851		$ 157,851		$ 152,753
Accumulated Amortization	(50,218)		(50,218)		(38,638)
Total	107,633		107,633		114,115
Total intangible assets
Gross Carrying Value	186,650		186,650		180,639
Intangible assets, net	136,432		136,432		142,001
Amortization expense	5,400	$ 5,100	16,300	$ 13,800
Trademarks and trade names
Non-amortizable assets:
Gross Carrying Value	26,509		$ 26,509		25,596
Software development costs
Intangible assets
Weighted Average Lives (in Years)			8 years
Amortizable assets:
Gross Carrying Value	28,706		$ 28,706		28,174
Accumulated Amortization	(11,730)		(11,730)		(9,423)
Total	16,976		$ 16,976		18,751
Patents
Intangible assets
Weighted Average Lives (in Years)			19 years
Amortizable assets:
Gross Carrying Value	8,456		$ 8,456		8,401
Accumulated Amortization	(1,785)		(1,785)		(1,618)
Total	6,671		$ 6,671		6,783
Developed technology
Intangible assets
Weighted Average Lives (in Years)			10 years
Amortizable assets:
Gross Carrying Value	54,604		$ 54,604		52,780
Accumulated Amortization	(13,861)		(13,861)		(9,706)
Total	40,743		$ 40,743		43,074
Customer relationships/backlog
Intangible assets
Weighted Average Lives (in Years)			7 years
Amortizable assets:
Gross Carrying Value	66,085		$ 66,085		63,398
Accumulated Amortization	(22,842)		(22,842)		(17,891)
Total	43,243		43,243		45,507
IPR&D
Non-amortizable assets:
Gross Carrying Value	$ 2,290		$ 2,290		$ 2,290

Goodwill and Intangible Assets - Intangible Amortization (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Jun. 30, 2018
Estimated future amortization expense
2019 (remaining 3 months)	$ 5,329		$ 5,329
2020	20,022		20,022
2021	18,732		18,732
2022	14,832		14,832
2023	13,750		13,750
Thereafter, including assets that have not yet begun to be amortized	34,968		34,968
Total	107,633		107,633		$ 114,115
Software development costs
Estimated future amortization expense
Total	16,976		16,976		$ 18,751
Capitalized software development costs	$ 800	$ 1,000	$ 1,800	$ 1,300

Impairment, restructuring and other charges - Impairment, restructuring and other charges (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Restructuring and other charges
Assets fully written off, including inventory and the intangible assets and fixed assets				$ 7,181
Impairment charges	$ 0	$ 4,037	$ 0	7,181
Acquisition-related costs		77	287	1,258
Employee termination costs		290	1,575	766
Facility closures / consolidation		109	2,084	433
Legal and accrued settlement costs, net	(1,777)	9,549	(2,792)	13,851
Total expensed	(1,777)	14,062	1,154	23,489
Security Division
Restructuring and other charges
Impairment charges		91		1,581
Employee termination costs		18		348
Facility closures / consolidation		117		198
Total expensed		226		2,127
Healthcare Division
Restructuring and other charges
Impairment charges		3,946		4,525
Employee termination costs		3	1,442	3
Facility closures / consolidation		(8)	2,084	235
Legal and accrued settlement costs, net		5,766		9,966
Total expensed		9,707	3,526	14,729
Optoelectronics and Manufacturing Division
Restructuring and other charges
Impairment charges				1,075
Acquisition-related costs			287
Employee termination costs		269	133	415
Total expensed		269	420	1,490
Corporate
Restructuring and other charges
Acquisition-related costs		77		1,258
Legal and accrued settlement costs, net	(1,777)	3,783	(2,792)	3,885
Total expensed	$ (1,777)	$ 3,860	$ (2,792)	$ 5,143

Impairment, restructuring and other charges - Changes in the accrued liability for restructuring and other charges (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2019 USD ($)
Restructuring and other charges
Balance at the beginning of the period	$ 15,301
Restructuring and other charges, net	1,154
Payments and other adjustments	(5,792)
Balance at the end of the period	10,663
Acquisition-related Costs
Restructuring and other charges
Restructuring and other charges, net	287
Payments and other adjustments	(287)
Employee Termination Costs
Restructuring and other charges
Balance at the beginning of the period	837
Restructuring and other charges, net	1,575
Payments and other adjustments	(2,147)
Balance at the end of the period	265
Facility Closure/ Consolidation Cost
Restructuring and other charges
Balance at the beginning of the period	399
Restructuring and other charges, net	2,084
Payments and other adjustments	(2,163)
Balance at the end of the period	320
Legal and Settlement Charges
Restructuring and other charges
Balance at the beginning of the period	14,065
Restructuring and other charges, net	(2,792)
Payments and other adjustments	(1,195)
Balance at the end of the period	$ 10,078

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 ($)	Mar. 31, 2019 USD ($) $ / shares	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($) item $ / shares	Mar. 31, 2018 USD ($)	Apr. 23, 2019 USD ($)	Jun. 30, 2018 USD ($)	Feb. 28, 2017 USD ($)	Dec. 31, 2016 USD ($)	Nov. 30, 2016 USD ($)
Borrowings
Borrowings outstanding		$ 124,000		$ 124,000			$ 113,000
Components of long-term debt
Term loans		925		925			2,114
Other long-term debt		1,985		1,985			1,658
Total		257,113		257,113			251,242
Less current portion of long-term debt		(1,702)		(1,702)			(2,262)
Long-term portion of debt		255,411		$ 255,411			248,980
Revolving Credit Facility
Borrowings
Maximum borrowing capacity						$ 535,000			$ 525,000	$ 450,000
Margin rate for each pricing tier				0.25%
Sub limit available for letters of credit		300,000		$ 300,000
Unused commitment fee (as a percent)				0.20%
Borrowings outstanding		124,000		$ 124,000
Amount outstanding under letters of credit		59,100		59,100
Available credit facility		341,900		$ 341,900
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%
Threshold percentage of stock price				130.00%
Number of trading days \| item				20
Number of consecutive trading days \| item				30
Principal amount of the notes to be repurchased (as a percentage)				100.00%
Liability component of convertible debt		$ 242,400		$ 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		3,200	$ 3,100	9,400	$ 9,200
Contractual interest expense		900	900	2,700	5,600
Amortization of debt discount		2,000	1,900	5,800	2,700
Amortization of debt issuance costs		300	$ 300	900	$ 900
Unamortized discount		$ (29,281)		$ (29,281)			(35,133)
Effective interest rate (as a percent)		4.50%		4.50%
Unamortized debt issuance costs		$ (4,016)		$ (4,016)			(4,897)
Stock price per share \| $ / shares		$ 87.60		$ 87.60
Components of long-term debt
Principal amount		$ 287,500		$ 287,500			287,500
Unamortized discount		(29,281)		(29,281)			(35,133)
Unamortized debt issuance costs		(4,016)		(4,016)			(4,897)
Total		254,203		254,203			247,470
Bank lines of credit
Borrowings
Amount outstanding under letters of credit		53,300		53,300
Available credit facility		15,100		15,100
Seven-year term loan due in fiscal 2020
Borrowings
Borrowings outstanding		$ 900		$ 900			$ 2,100
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
	Mar. 31, 2019 USD ($) $ / shares shares	Sep. 30, 2018 $ / shares shares	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($) ShareBasedCompensationPlan $ / shares shares	Mar. 31, 2018 USD ($) shares
Stock-based Compensation
Stock-based compensation expense \| $	$ 5,888		$ 6,014	$ 19,514	$ 17,754
RSU
Stock-based Compensation
Unrecognized compensation cost \| $	$ 19,400			$ 19,400
Weighted-average period				1 year 10 months 24 days
Shares
Nonvested at the beginning of the period (in shares)		526,377		526,377
Granted (in shares)				362,025
Vested (in shares)				(357,924)
Forfeited (in shares)				(13,669)
Nonvested at the end of the period (in shares)	516,809			516,809
Weighted-Average Fair Value
Nonvested at the beginning of the period (in dollars per share) \| $ / shares		$ 71.56		$ 71.56
Granted (in dollars per share) \| $ / shares				73.80
Vested (in dollars per share) \| $ / shares				71.01
Forfeited (in dollars per share) \| $ / shares				73.74
Nonvested at the end of the period (in dollars per share) \| $ / shares	$ 73.45			$ 73.45
Stock options
Stock-based Compensation
Unrecognized compensation cost \| $	$ 600			$ 600
Weighted-average period				2 years
Number of Options
Outstanding at the beginning of the period (in shares)		677,525		677,525
Granted (in shares)				18,135
Exercised (in shares)				(108,008)
Expired or forfeited (in shares)				(9,618)
Outstanding at the end of the period (in shares)	578,034			578,034
Exercisable at the end of the period (in shares)	540,646			540,646
Weighted Average Exercise Price
Outstanding at the beginning of the period (in dollars per share) \| $ / shares		$ 32.80		$ 32.80
Granted (in dollars per share) \| $ / shares				72.39
Exercised (in dollars per share) \| $ / shares				22.82
Expired or forfeited (in dollars per share) \| $ / shares				70.28
Outstanding at the end of the period (in dollars per share) \| $ / shares	$ 35.29			35.29
Exercisable at the end of the period (in dollars per share) \| $ / shares	$ 32.37			$ 32.37
Weighted-Average Remaining Contractual Term
Outstanding at the end of the period		2 years 7 months 6 days
Exercisable at the end of the period		2 years 1 month 6 days
Aggregate Intrinsic Value
Outstanding at the end of the period \| $	$ 30,247			$ 30,247
Exercisable at the end of the period \| $	$ 29,865			$ 29,865
Performance-based restricted stock units
Shares
Granted (in shares)				97,514	117,346
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				280.00%
2012 Plan
Weighted-Average Fair Value
Shares available for grant	1,600,000			1,600,000
2012 Plan \| 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 \| $	$ 182		251	$ 539	$ 739
Selling, general and administrative
Stock-based Compensation
Stock-based compensation expense \| $	5,543		5,614	18,487	16,574
Research and development
Stock-based Compensation
Stock-based compensation expense \| $	$ 163		$ 149	$ 488	$ 441

Stockholders' Equity - Share Repurchase Program (Details) - shares	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Share Repurchase Program
Number of shares available for additional repurchase	562,707
Common stock
Share Repurchase Program
Number of shares repurchased	288,316
Common stock \| Maximum
Share Repurchase Program
Number of repurchased shares authorized		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, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Net Periodic Benefit Costs
Service cost	$ 98	$ 216	$ 295	$ 648
Interest cost	8	9	25	25
Amortization of prior service cost	14	70	42	210
Net periodic pension expense	120	295	362	883
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	$ 1,600	$ 4,700	$ 4,600

Commitments and Contingencies - Contingent Acquisition Obligations (Details) - USD ($) $ in Thousands		9 Months Ended
	Dec. 31, 2017	Mar. 31, 2019
Contingent Acquisition Obligations
Beginning fair value		$ 15,713
Additions		5,173
Change in fair value		(512)
Payments		(3,505)
Ending fair value		16,869
Mr. Chopra, Chief Executive Officer \| Deferred bonus
Indemnifications and Certain Employment-Related Contingencies
Bonus payment on or within 45 days of January 1, 2024 contingent upon continued employment through that date	$ 13,500
Maximum number of days after January 1, 2024, bonus payment due	45 days
CXR Limited
Commitments and Contingencies
Payments for contingent consideration		1,300
Contingent Acquisition Obligations
Maximum amount of contingent consideration		$ 28,700

Commitments and Contingencies - Product Warranties (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Changes in provision for warranties
Warranty provision at beginning of period	$ 21,819	$ 15,178
Additions	7,365	9,191
Acquisitions and adjustments	(230)	1,240
Reductions for warranty repair costs	(6,545)	(5,219)
Warranty provision at end of period	$ 22,409	$ 20,390

Income Taxes - (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended		12 Months Ended
Income Taxes - (Details) - USD ($) $ in Millions	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Dec. 31, 2018	Dec. 31, 2017
U.S. federal statutory tax rate (as a percent)						21.00%	35.00%
Effective income tax rate (as a percent)	26.00%	18.10%		24.20%	210.00%
Effective income tax rate excluding certain discrete tax items (as a percent)	28.60%	28.20%		28.40%	28.20%
Tax Cuts and Jobs Act of 2017, provisional net charge			$ 56.0
ASU 2016-09
Excess tax benefits from employee stock compensation benefit	$ 0.7			$ 2.6

Segment Information - Operations and Identifiable Assets (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($) segment	Mar. 31, 2018 USD ($) customer	Jun. 30, 2018 USD ($)
Operations and identifiable assets by industry segment
Number of identifiable industry segments \| segment			3
Revenues	$ 304,284	$ 267,299	$ 873,738	$ 801,960
Income (Loss) from Operations	32,120	7,743	80,084	$ 45,284
Assets	1,284,115		1,284,115		$ 1,255,691
Revenue \| Customer Concentration Risk
Operations and identifiable assets by industry segment
Number of major customers \| customer				1
Servicio de Administaction Tributaria ("SAT") in Mexico \| Revenue \| Customer Concentration Risk
Operations and identifiable assets by industry segment
Concentration (as a percent)				11.00%
Operating Segments \| Security Division
Operations and identifiable assets by industry segment
Revenues	193,486	170,270	552,130	$ 504,784
Income (Loss) from Operations	24,943	21,028	74,056	66,192
Assets	798,215		798,215		804,527
Operating Segments \| Healthcare Division
Operations and identifiable assets by industry segment
Revenues	48,865	43,758	138,697	141,793
Income (Loss) from Operations	5,418	(8,425)	5,752	(6,975)
Assets	154,212		154,212		167,611
Operating Segments \| Optoelectronics and Manufacturing Division
Operations and identifiable assets by industry segment
Revenues	70,927	66,212	213,900	189,024
Income (Loss) from Operations	7,320	6,547	22,212	16,224
Assets	245,176		245,176		220,373
Corporate
Operations and identifiable assets by industry segment
Income (Loss) from Operations	(5,354)	(10,730)	(21,265)	(28,601)
Assets	90,258		90,258		66,453
Eliminations
Operations and identifiable assets by industry segment
Revenues	(8,994)	(12,941)	(30,989)	(33,641)
Income (Loss) from Operations	(207)	$ (677)	(671)	$ (1,556)
Assets	$ (3,746)		$ (3,746)		$ (3,273)

Basis of Presentation - Description of Business (Details)	9 Months Ended
	Mar. 31, 2019 segment
Description of Business
Number of reporting segments	3