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Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Loss before provision for income taxes consists of the following (dollars in thousands):


	Year Ended June 30,
	2012			2011			2010
Domestic	$	(14,086	)	$	(50,395	)	$	(96,937	)
Foreign		(1,066	)		6,675			(3,971	)
Loss before provision for taxes	$	(15,152	)	$	(43,720	)	$	(100,908	)

(Benefit from) Provision for Income Taxes

The (benefit from) provision for income taxes shown in the accompanying consolidated statements of operations is composed of the following (in thousands):


	Year Ended June 30,
	2012			2011			2010
Federal -
Current	$	-		$	-		$	2,586
Deferred		(3,409	)		(60,004	)		(2,490	)
State -
Current		191			132			170
Deferred		33			(1,702	)		-
Foreign -
Current		3,292			5,446			5,907
Deferred		(1,451	)		2,151			364
	$	(1,344	)	$	(53,977	)	$	6,537

Income Tax Reconciliation Based on Federal Statutory Rate

The (benefit from) provision for income taxes differs from that based on the federal statutory rate due to the following (dollars in thousands):


	Year Ended June 30,
	2012			2011			2010
Federal tax (benefit) provision at statutory rate	$	(5,303	)	$	(15,302	)	$	(35,318	)
State income taxes		124			86			-
Subpart F and dividend income		4,189			1,235			458
Foreign taxes and rate differences		1,001			2,218			6,445
Stock-based compensation		2,968			3,338			1,987
Tax credits		(3,913	)		(4,524	)		-
Tax contingencies		(2,385	)		7,158			170
Return to provision adjustments		442			1,182			-
Valuation allowance		1,431			(48,830	)		32,772
Other		102			(538	)		23
(Benefit from) Provision for income taxes	$	(1,344	)	$	(53,977	)	$	6,537

Deferred Tax Assets and Liabilities


	Year Ended June 30,
	2012			2011
Deferred tax assets:
Federal and state credits	$	4,000		$	7,881
Foreign tax credits		38,870			33,805
Federal and state loss carryforwards		18,458			18,734
Foreign loss carryforwards		2,658			3,328
Revenue		3,682			2,123
Restructuring accruals		326			1,517
Other reserves and accruals		5,119			6,002
Intangible assets		1,037			1,398
Property and leasehold improvements		3,523			4,238
Other temporary differences		5,596			5,783
		83,269			84,809
Deferred tax liabilities:
Revenue		(714	)		(475	)
Intangible assets		(1,558	)		(1,602	)
Property, leasehold improvements, and other basis differences		(9,583	)		(9,612	)
Other temporary differences		(683	)		(743	)
		(12,538	)		(12,432	)
Valuation allowance		(5,626	)		(8,045	)
Net deferred tax assets	$	65,105		$	64,332

Reconciliation of Reserve for Uncertain Tax Positions

A reconciliation of the reserve for uncertain tax positions is as follows (in thousands):

	Year Ended June 30,
	2012			2011			2010

Uncertain tax positions, beginning of year	$	24,835		$	17,730		$	19,238
Gross increases - tax positions in prior period		2,072			4,599			111
Gross decreases - tax positions in prior period		(1,468	)		(1,025	)		(958	)
Gross increases - tax positions in current period		-			3,333			2,114
Gross decreases - payments		-			-			(332	)
Gross decreases - lapse of statutes		(2,954	)		(517	)		(2,354	)
Currency translation adjustment		(579	)		715			(89	)
Uncertain tax positions, end of year	$	21,906		$	24,835		$	17,730

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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