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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2021

Provision for (benefit from) income taxes

The provision for income taxes is comprised of:


	Year Ended June 30,
	2021		2020		2019
			(in thousands)
U.S. federal taxes:
Current	$	31	$	(1,673)	$	(57)
Deferred	1,955		22		(510)
Non-U.S. taxes:
Current	2,344		1,940		1,765
Deferred	(396)		58		55
State taxes, net of federal benefit:
Current	1		1		3


Total provision for income taxes	$	3,935	$	348	$	1,256

Effective income tax rate reconciliation

The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage):


	Year Ended June 30,
	2021		2020		2019
United States statutory rate	21.0	%	21.0	%	21.0	%

Stock-based compensation	0.1		—		0.1
Foreign taxes, net	(14.4)		(36.1)		(40.9)
Research and development credit	(2.4)		8.0		11.7
Non-deductible expenses	2.4		(1.0)		(2.7)
U.S. Tax Act deferred tax re-measurement	—		6.2		—
Other	(0.2)		—		1.4
	6.5	%	(1.9)	%	(9.4)	%

Domestic and foreign components of income (loss)

The domestic and foreign components of income before taxes are:


	Year Ended June 30,
	2021		2020		2019
			(in thousands)
U.S. operations	$	9,622	$	3,549	$	4,100
Non-U.S. operations	50,602		(21,458)		(17,482)
Loss before income taxes	$	60,224	$	(17,909)	$	(13,382)

Components of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:


	June 30,
	2021		2020
	(in thousands)
Deferred tax assets:
Accrued compensation	$	3,954	$	1,954
Net operating loss carryforwards	22,539		19,870
Depreciation	7,924		8,149
Tax credits	15,550		13,909
Operating lease liabilities	7,292		6,649
Capitalized intangible assets	9,982		10,367
Accruals and reserves	1,113		1,832
Total deferred tax assets	68,354		62,730
Valuation allowance	(41,474)		(37,827)
Total deferred tax assets, net of valuation allowance	26,880		24,903
Deferred tax liabilities:
Depreciation and amortization	(17,193)		(14,097)
Right of use assets	(6,968)		(6,453)
Accruals and reserves	—		(83)
Total deferred tax liabilities	(24,161)		(20,633)
Net deferred tax assets	$	2,719	$	4,270

Schedule of deferred tax assets and liabilities, current and noncurrent

The breakdown between deferred tax assets and liabilities is as follows:


	June 30,
	2021		2020
	(in thousands)

Long-term deferred tax assets	$	5,167	$	4,766
Long-term deferred tax liabilities	(2,448)		(496)

Net deferred tax assets	$	2,719	$	4,270

Unrecognized tax benefits rollforward

A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2018 to June 30, 2021 is as follows:


	Year Ended June 30,
	2021		2020		2019
	(in thousands)
Balance at beginning of year	$	7,126	$	7,150	$	7,143
Additions based on tax positions related to the current year	677		333		417
Reductions based on tax positions related to prior years	(41)		(114)		(271)
Reductions due to lapse of applicable statute of limitations	(117)		(243)		(139)

Balance at end of year	$	7,645	$	7,126	$	7,150