Balance Sheet Components

6 Months Ended

Dec. 31, 2021

Balance Sheet Related Disclosures [Abstract]

The following tables provide details of the selected balance sheet items (in thousands):

Inventories:


	December 31, 2021		June 30, 2021
Finished goods	$	923,702	$	761,694
Work in process	220,407		80,472
Purchased parts and raw materials	249,563		198,798
Total inventories	$	1,393,672	$	1,040,964

During the three and six months ended December 31, 2021, the Company recorded a net provision for excess and obsolete inventory to cost of sales totaling $0.2 million and $3.7 million, respectively, and $2.5 million and $1.7 million for the three and six months ended December 31, 2020. respectively. The Company classifies subsystems and accessories that may be sold separately or incorporated into systems as finished goods.

Prepaid Expenses and Other Current Assets:


	December 31, 2021		June 30, 2021
Other receivables (1)	$	120,085	$	99,921
Prepaid income tax	13,686		12,288
Prepaid expenses	6,715		6,719
Deferred service costs	5,426		4,900
Restricted cash	251		251
Others	8,615		6,116
Total prepaid expenses and other current assets	$	154,778	$	130,195

__________________________

(1) Includes other receivables from contract manufacturers based on certain buy-sell arrangements of $99.5 million and $76.2 million as of December 31, 2021 and June 30, 2021, respectively.

Cash, cash equivalents and restricted cash:


	December 31, 2021		June 30, 2021
Cash and cash equivalents	$	247,407	$	232,266
Restricted cash included in prepaid expenses and other current assets	251		251
Restricted cash included in other assets	927		932
Total cash, cash equivalents and restricted cash	$	248,585	$	233,449

Property, Plant, and Equipment:


	December 31, 2021		June 30, 2021
Buildings	$	143,509	$	86,930
Land	84,616		76,421
Machinery and equipment	108,283		97,671
Building construction in progress (1)	303		87,438
Building and leasehold improvements	44,649		26,640
Software	23,178		22,592
Furniture and fixtures	32,602		22,843
	437,140		420,535
Accumulated depreciation and amortization	(156,858)		(145,822)
Property, plant and equipment, net	$	280,282	$	274,713

__________________________

(1) Primarily relates to the development and construction costs associated with the Company’s Green Computing Park located in San Jose, California, and a new building in Taiwan.

Other Assets:


	December 31, 2021		June 30, 2021
Operating lease right-of-use asset	$	23,622	$	20,047
Deferred service costs, non-current	5,896		5,421
Prepaid expense, non-current	1,914		1,973
Investment in auction rate security	1,556		1,556
Deposits	1,243		1,669
Restricted cash, non-current	927		932
Other	1,578		528
Total other assets	$	36,736	$	32,126

Accrued Liabilities:


	December 31, 2021		June 30, 2021
Accrued payroll and related expenses	$	45,315	$	45,770
Contract manufacturing liabilities	41,049		45,319
Customer deposits	30,002		32,419
Accrued warranty costs	8,903		10,185
Accrued cooperative marketing expenses	8,459		5,652
Operating lease liability	6,431		6,322
Accrued professional fees	2,240		2,737

Other	28,612		30,446
Total accrued liabilities	$	171,010	$	178,850

Performance Awards Liability

In March 2020, the Board of Directors (the “Board”) approved performance bonuses for the Chief Executive Officer, a senior executive and two members of the Board, which payments will be earned when specified market and performance conditions are achieved.

The Chief Executive Officer’s aggregate cash bonuses of up to $8.1 million are earned in two tranches. The first 50% is payable if the average closing price for the Company’s common stock equals or exceeds $31.61 for any period of 20 consecutive trading days following the date of the agreement and ending prior to September 30, 2021 and the Chief Executive Officer remains employed with the Company through the date that such common stock price goal is determined to have been achieved. This payment can be reduced at the discretion of the Board to the extent the Company has not made adequate progress in remediating its material weaknesses in its internal control over financial reporting as determined by the Board. The second 50% is payable if the average closing price for the Company’s common stock equals or exceeds $32.99 for any period of 20 consecutive trading days following the date of the agreement and ending prior to June 30, 2022 and the Chief Executive Officer remains employed with the Company through the date that such common stock price goal is achieved.

During the fiscal year ended June 30, 2021, the target average closing prices for both tranches were met and the cash payment under the second tranche was made. On September 21, 2021, the Audit Committee of the Board determined and advised the Board as to its view that the Company had made adequate progress in remediating the material weaknesses in its internal control over financial reporting. On September 30, 2021, the Board considered and agreed with this assessment, but also considered the impact of accomplishments of Company employees other than Mr. Liang in achieving this adequate progress. The Board exercised its discretion under the terms of the performance bonuses to reduce the payout for the first tranche from 50% to approximately 25% of $8.1 million, for an aggregate of $2.0 million. The payout of $2.0 million was made during the quarter ended December 31, 2021.

The Company previously expected that the full amount of the first tranche would be paid to its Chief Executive Officer and, accordingly, recorded a liability of $3.6 million related to this tranche on its balance sheet as of June 30, 2021. In light of the Board’s action in September 2021 to reduce the amount of the first tranche payout to $2.0 million, the Company adjusted the amount of this liability on its balance sheet as of September 30, 2021 to $2.0 million and recognized a benefit of $1.6 million in its consolidated statement of operations during the quarter ended September 30, 2021. There was no expense for the three months ended December 31, 2021 and for three months ended December 31, 2020 $2.5 million expense was recognized. For the six months ended December 31, 2021 and 2020, $1.6 million and $2.6 million expense was recognized, respectively.

Other Long-term Liabilities:


	December 31, 2021		June 30, 2021
Accrued unrecognized tax benefits including related interests and penalties, non-current	$	19,203	$	17,841
Operating lease liability, non-current	17,625		14,539
Accrued warranty costs, non-current	2,680		2,678
Other	1,107		6,074
Total other long-term liabilities	$	40,615	$	41,132

Product Warranties:


	Three Months Ended December 31,				Six Months Ended December 31,
	2021		2020		2021		2020
Balance, beginning of the period	$	12,233	$	13,727	$	12,863	$	12,379
Provision for warranty	6,057		7,112		12,442		15,459
Costs utilized	(6,722)		(7,453)		(13,920)		(15,060)
Change in estimated liability for pre-existing warranties	15		118		198		726
Balance, end of the period	11,583		13,504		11,583		13,504
Current portion	8,903		10,904		8,903		10,904
Non-current portion	$	2,680	$	2,600	$	2,680	$	2,600