Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Schedule of Loss before Income Tax, Domestic and Foreign

Loss before income taxes is as follows (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2020			2019			2018
Domestic	$	(143,651	)	$	22,330		$	(55,197	)
Foreign		23,159			(48,204	)		8,550
Loss before income taxes	$	(120,492	)	$	(25,874	)	$	(46,647	)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended 2020, 2019 and 2018 consisted of the following (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2020			2019			2018
Current:
Federal	$	(22	)	$	—		$	(155	)
State		256			655			521
Foreign		4,597			5,100			4,456
Total current		4,831			5,755			4,822
Deferred:
Federal		333			(3,691	)		(6,358	)
State		44			(488	)		294
Foreign		1,145			(1,597	)		1,387
Total deferred		1,522			(5,776	)		(4,677	)
Provision (benefit) for income taxes	$	6,353		$	(21	)	$	145

Schedule of Effective Income Tax Rate Reconciliation

The difference between the provision (benefit) for income taxes and the amount computed by applying the federal statutory income tax rate (21 percent) to loss before taxes is explained below (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2020			2019			2018
Tax at federal statutory rate	$	(25,303	)	$	(5,433	)	$	(13,061	)
State income tax, net of federal benefit		202			517			521
Release of foreign valuation allowance		—			(2,794	)		—
Release of US valuation allowance – Tax reform		—			(4,680	)		—
Establishment of Irish valuation allowance		—			8,642			—
US valuation allowance change – deferred tax movement		2,414			(4,444	)		25,302
Research and development credits		(4,947	)		(6,598	)		(7,311	)
Tax impact of foreign earnings		7,687			10,562			(1,065	)
Stock based compensation		4,349			2,436			(5,901	)
Goodwill amortization		331			834			2,004
Nondeductible officer compensation		862			713			1,927
Nondeductible meals and entertainment		364			517			510
AMT credit monetization		(22	)		—			(155	)
Deferred tax liability release - Tax reform		—			—			(2,482	)
Gain on transfer of intellectual property ("IP")		19,819			—			—
Other		597			(293	)		(144	)
Provision (benefit) for income taxes	$	6,353		$	(21	)	$	145

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets are as follows (in thousands):

	June 30,
	2020			2019			2018
Deferred tax assets:
Net operating loss carry-forwards	$	74,548		$	36,514		$	49,429
Tax credit carry-forwards		67,364			54,745			48,093
Depreciation		2,755			2,168			1,422
Intangible amortization		32,642			36,882			35,107
Deferred revenue, net		7,610			1,887			159
Inventory write-downs		13,014			10,277			13,682
Other allowances and accruals		32,318			30,210			25,700
Stock based compensation		3,169			4,114			4,872
Deferred intercompany gain		3,693			3,693			—
Irish goodwill amortization		7,132			—			—
Other		888			673			3,219
Total deferred tax assets		245,133			181,163			181,683
Valuation allowance		(232,862	)		(169,343	)		(177,869	)
Total net deferred tax assets		12,271			11,820			3,814
Deferred tax liabilities:
Goodwill amortization		(6,691	)		(4,904	)		(3,363	)
Prepaid commissions		(1,958	)		(1,585	)		(1,034	)
Deferred tax liability on foreign withholdings		(551	)		(505	)		(357	)
Total deferred tax liabilities		(9,200	)		(6,994	)		(4,754	)
Net deferred tax assets (liabilities)	$	3,071		$	4,826		$	(940	)
Recorded as:
Net non-current deferred tax assets		5,405			6,783			5,195
Net non-current deferred tax liabilities		(2,334	)		(1,957	)		(6,135	)
Net deferred tax assets (liabilities)	$	3,071		$	4,826		$	(940	)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of total unrecognized tax benefits is as follows (in thousands):

Balance at June 30, 2017	$	18,913
Decrease related to prior year tax positions		(1,407	)
Balance at June 30, 2018		17,506
Increase related to prior year tax positions		26
Lapse of statute of limitations		(364	)
Balance at June 30, 2019		17,168
Increase related to prior year tax positions		8,906
Increase related to current year tax positions		44
Decrease related to prior year tax positions		(1,800	)
Lapse of statute of limitations		(421	)
Balance at June 30, 2020	$	23,897