Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

Schedule of Income (Loss) before Income Tax, Domestic and Foreign

Income (loss) before income taxes is as follows (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2021			2020			2019
Domestic	$	(4,194	)	$	(143,651	)	$	22,330
Foreign		14,379			23,159			(48,204	)
Income (loss) before income taxes	$	10,185		$	(120,492	)	$	(25,874	)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes for the years ended 2021, 2020 and 2019 consisted of the following (in thousands):

	Year Ended
	June 30,		June 30,			June 30,
	2021		2020			2019
Current:
Federal	$	—	$	(22	)	$	—
State		1,160		256			655
Foreign		5,334		4,597			5,100
Total current		6,494		4,831			5,755
Deferred:
Federal		324		333			(3,691	)
State		1,169		44			(488	)
Foreign		262		1,145			(1,597	)
Total deferred		1,755		1,522			(5,776	)
Provision (benefit) for income taxes	$	8,249	$	6,353		$	(21	)

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 income (loss) before income taxes is explained below (in thousands):

	Year Ended
	June 30,			June 30,			June 30,
	2021			2020			2019
Tax at federal statutory rate	$	2,139		$	(25,303	)	$	(5,433	)
State income tax, net of federal benefit		917			202			517
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		(9,387	)		2,414			(4,444	)
Research and development credits		(2,423	)		(4,947	)		(6,598	)
Tax impact of foreign earnings		11,979			6,925			9,817
Foreign withholding taxes		828			762			745
Stock based compensation		1,162			4,349			2,436
Goodwill amortization		1,467			331			834
Nondeductible officer compensation		1,496			862			713
Nondeductible meals and entertainment		71			364			517
AMT credit monetization		—			(22	)		—
Gain on transfer of intellectual property ("IP")		—			19,819			—
Other		—			597			(293	)
Provision (benefit) for income taxes	$	8,249		$	6,353		$	(21	)

Schedule of Deferred Tax Assets and Liabilities

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

	June 30,
	2021			2020			2019
Deferred tax assets:
Net operating loss carry-forwards	$	69,126		$	74,548		$	36,514
Tax credit carry-forwards		68,003			67,364			54,745
Depreciation		3,113			2,755			2,168
Intangible amortization		35,340			32,642			36,882
Deferred revenue		11,625			7,610			1,887
Inventory write-downs		14,501			13,014			10,277
Other allowances and accruals		28,899			32,318			30,210
Stock based compensation		2,792			3,169			4,114
Deferred intercompany gain		3,693			3,693			3,693
Ireland goodwill amortization		6,303			7,132			—
Other		1,175			888			673
Total deferred tax assets		244,570			245,133			181,163
Valuation allowance		(230,588	)		(232,862	)		(169,343	)
Total net deferred tax assets		13,982			12,271			11,820
Deferred tax liabilities:
Goodwill amortization		(8,575	)		(6,691	)		(4,904	)
Prepaid commissions		(3,166	)		(1,958	)		(1,585	)
Deferred tax liability on foreign withholdings		(578	)		(551	)		(505	)
Total deferred tax liabilities		(12,319	)		(9,200	)		(6,994	)
Net deferred tax assets	$	1,663		$	3,071		$	4,826
Recorded as:
Net non-current deferred tax assets		5,491			5,405			6,783
Net non-current deferred tax liabilities		(3,828	)		(2,334	)		(1,957	)
Net deferred tax assets	$	1,663		$	3,071		$	4,826

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, 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
Decrease related to prior year tax positions		(4,296	)
Increase related to prior year tax positions		28
Increase related to current year tax positions		72
Lapse of statute of limitations		(637	)
Balance at June 30, 2021	$	19,064