Income Taxes (Tables)

12 Months Ended

Jun. 30, 2020

Income Tax Disclosure [Abstract]

Provision for (benefit from) income taxes

The provision for income taxes is comprised of:

	Year Ended June 30,
	2020			2019			2018
				(in thousands)
U.S. federal taxes:
Current	$	(1,673	)	$	(57	)	$	55
Deferred	22			(510		)	(1,943		)
Non-U.S. taxes:
Current	1,940			1,765			2,898
Deferred	58			55			(298		)
State taxes, net of federal benefit:
Current	1			3			(4		)
Total provision for income taxes	$	348		$	1,256		$	708

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,
	2020		2019		2018
United States statutory rate	21.0	%	21.0	%	28.1	%
Stock-based compensation	—		0.1		(1.4	)
Foreign taxes, net	(36.1	)	(40.9	)	39.5
Research and development credit	8.0		11.7		(17.1	)
Non-deductible expenses	(1.0	)	(2.7	)	7.0
U.S. Tax Act deferred tax re-measurement	6.2		—		(44	)
Other	—		1.4		0.4
	(1.9	)%	(9.4	)%	12.5	%

Domestic and foreign components of income (loss)

The domestic and foreign components of income before taxes are:

	Year Ended June 30,
	2020			2019			2018
				(in thousands)
U.S. operations	$	3,549		$	4,100		$	4,219
Non-U.S. operations	(21,458		)	(17,482		)	1,437
Loss before income taxes	$	(17,909	)	$	(13,382	)	$	5,656

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,
	2020			2019
	(in thousands)
Deferred tax assets:
Accrued compensation	$	1,954		$	1,428
Net operating loss carryforwards	19,870			16,782
Depreciation	8,149			10,036
Tax credits	13,909			10,882
Operating lease liabilities	6,649			—
Capitalized intangible assets	10,367			11,981
Accruals and reserves	1,832			1,000
Total deferred tax assets	62,730			52,109
Valuation allowance	(37,827		)	(35,420		)
Total deferred tax assets, net of valuation allowance	24,903			16,689
Deferred tax liabilities:
Depreciation and amortization	(14,097		)	(12,243		)
Right of use assets	(6,453		)	—
Accruals and reserves	(83		)	(90		)
Total deferred tax liabilities	(20,633		)	(12,333		)
Net deferred tax assets	$	4,270		$	4,356

Schedule of deferred tax assets and liabilities, current and noncurrent

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

	June 30,
	2020			2019
	(in thousands)
Long-term deferred tax assets	$	4,766		$	4,822
Long-term deferred tax liabilities	(496		)	(466		)
Net deferred tax assets	$	4,270		$	4,356

Unrecognized tax benefits rollforward

A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2017 to June 30, 2020 is as follows:

	Year Ended June 30,
	2020			2019			2018
	(in thousands)
Balance at beginning of year	$	7,150		$	7,143		$	6,589
Additions based on tax positions related to the current year	333			417			721
Reductions based on tax positions related to prior years	(114		)	(271		)	(11		)
Reductions due to lapse of applicable statute of limitations	(243		)	(139		)	(156		)
Balance at end of year	$	7,126		$	7,150		$	7,143

At June 30, 2020, the total unrecognized tax benefits of $7.1 million included $6.3 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $0.8 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2020. The Company cannot reasonably estimate the timing and amount of potential cash settlements on the unrecognized tax benefits.

The total unrecognized tax benefits of $7.1 million at June 30, 2020 included $4.3 million that, if recognized, would reduce the effective income tax rate in future periods.