Income Taxes - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2012

Income Tax Disclosure [Abstract]

Income before Income Tax Provision, Domestic and Foreign

The components of income before income tax provision for the years ended June 30, 2012, 2011 and 2010 are as follows (in thousands):

	Years Ended June 30,
	2012		2011		2010
United States	$	41,540	$	53,187	$	39,103
Foreign	3,811		4,886		1,362
Income before income tax provision	$	45,351	$	58,073	$	40,465

Components of Income Tax Provision

The income tax provision for the years ended June 30, 2012, 2011 and 2010, consists of the following (in thousands):

	Years Ended June 30,
	2012			2011		2010
Current:
Federal	$	17,210		$	16,240	$	15,460
State	817			313		2,023
Foreign	1,206			816		474
	19,233			17,369		17,957
Deferred:
Federal	(2,862		)	304		(3,044		)
State	(873		)	187		(1,363		)
	(3,735		)	491		(4,407		)
Income tax provision	$	15,498		$	17,860	$	13,550

Deferred Tax Assets and Liabilities

The Company’s net deferred tax assets as of June 30, 2012 and 2011, consist of the following (in thousands):

	June 30,
	2012			2011
Warranty accrual	$	1,971		$	1,730
Marketing fund accrual	1,324			1,095
Inventory valuation	7,990			5,508
Stock-based compensation	3,122			2,488
Research and development credit	1,364			1,085
Other	2,656			3,138
Total deferred income tax assets	18,427			15,044
Deferred tax liabilities-depreciation and other	(2,336		)	(1,984		)
Deferred income tax assets-net	$	16,091		$	13,060

Effective Income Tax Rate Reconciliation

The following is a reconciliation for the years ended June 30, 2012, 2011 and 2010, of the statutory rate to the Company’s effective federal tax rate:

	Years Ended June 30,
	2012		2011		2010
Tax at statutory rate	35.0	%	35.0	%	35.0	%
State income tax-net of federal benefit	2.5		4.4		3.5
Foreign losses not deductible and tax rate differences	(1.0	)	(1.1	)	(0.5	)
Research and development tax credit	(5.7	)	(8.7	)	(5.8	)
Qualified production activity deduction	(2.4	)	(1.0	)	(1.1	)
Stock based compensation	6.2		3.8		4.1
Other	(0.4	)	(1.6	)	(1.7	)
Effective tax rate	34.2	%	30.8	%	33.5	%

Summary of Unrecognized Tax Benefits

The following table summarizes the activity related to the unrecognized tax benefits (in thousands):

	Gross* Unrecognized Income Tax Benefits
Balance at July 1, 2009	$	3,999
Gross increases:
For current year’s tax positions	1,059
For prior years’ tax positions	1,084
Gross decreases:
Settlements and releases due to the lapse of statutes of limitations	(313		)
For prior year' tax positions	—
Balance at June 30, 2010	5,829
Gross increases:
For current year’s tax positions	2,010
For prior years’ tax positions	216
Gross decreases:
Settlements and releases due to the lapse of statutes of limitations	(1,108		)
For prior years’ tax positions	(398		)
Balance at June 30, 2011	6,549
Gross increases:
For current year’s tax positions	1,302
For prior years’ tax positions	501
Gross decreases:
Settlements and releases due to the lapse of statutes of limitations	(225		)
For prior years’ tax positions	(102		)
Balance at June 30, 2012	$	8,025

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* excludes interest, penalties, federal benefit of state reserves