Commitments and Contingencies

3 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

The Company and its subsidiaries are, from time to time, parties to lawsuits arising out of operations. Although there can be no assurance, based upon information known to the Company, the Company believes that any liability resulting from an adverse determination of such lawsuits would not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

The Company is in the process of completing several capital projects for fiscal year 2017 that will result in significant cash commitments. Total capital expenditures for fiscal year 2017 are expected to range from $5 million to $10 million primarily for IT investments.

During the Company's due diligence for the CDC and Network1 acquisitions, several pre-acquisition contingencies were identified regarding various Brazilian federal and state tax exposures. The Company is able to record indemnification receivables that are reported gross of the pre-acquisition contingency liabilities as they were escrowed or claimed against future earnout payments in the share purchase agreements. However, indemnity claims can be made up to the entire purchase price, which includes the initial payment and all future earnout payments. The table below summarizes the balances and line item presentation of these pre-acquisition contingencies and corresponding indemnification receivables in the Company's Condensed Consolidated Balance Sheets as of September 30, 2016:



	September 30, 2016
	CDC		Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	2,320	$	589
Other non-current assets	$	—	$	9,730
Liabilities
Accrued expenses and other current liabilities	$	2,320	$	589
Other long-term liabilities	$	—	$	9,730

The table below summarizes the balances and line item presentation of these pre-acquisition contingencies and corresponding indemnification receivables in the Company's Condensed Consolidated Balance Sheets as of June 30, 2016:



	June 30, 2016
	CDC		Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	2,346	$	595
Other non-current assets	$	—	$	9,837
Liabilities
Accrued expenses and other current liabilities	$	2,346	$	595
Other long-term liabilities	$	—	$	9,837

Changes in these contingent liabilities and receivables from June 30, 2016 are primarily driven by foreign currency translation.