Income Taxes (Tables)

12 Months Ended

Jun. 30, 2015

Schedule of Income Tax Expense

Income tax expense consists of the following:

	Year ended June 30,
	2015			2014			2013
Current:
Federal	$	53.7		$	97.4		$	80.3
State		4.7			3.5			6.0
Total Current		58.4			100.9			86.3
Deferred:
Federal		(2.1	)		(0.7	)		0.7
State		8.7			0.8			(0.4	)
Foreign		(2.3	)		(2.9	)		(2.1	)
Change in valuation allowance		(8.0	)		3.5			1.6
Total Deferred		(3.7	)		0.7			(0.2	)
Total income tax expense	$	54.7		$	101.6		$	86.1

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes consists of the following:

	Year ended June 30,
	2015			2014			2013
United States	$	147.0		$	292.0		$	243.6
Foreign		(12.1	)		(14.2	)		(10.3	)
Total	$	134.9		$	277.8		$	233.3

Schedule of Differences Between Statutory Federal Income Tax Rate and Income Taxes Reported in Consolidated Statements of Operations

The differences between income taxes at the statutory federal income tax rate and income taxes reported in the consolidated statements of operations were as follows:

	Year ended June 30,
	2015			2014			2013
Federal income tax expense at the statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		1.7			1.6			1.7
Research and development credits, net of the federal tax on state credits		(2.5	)		(0.2	)		(1.0	)
Uncertain tax positions, net of federal benefit on state positions		1.2			(0.1	)		0.2
Incentive stock option and employee stock purchase plan expense		0.2			(0.3	)		(0.5	)
Adjustment to deferred tax liability attributable to acquired intangible assets		1.6			—			—
Foreign rate differential		1.6			0.8			0.6
Change in valuation allowance		2.6			1.2			0.7
Basis difference, disposition of foreign subsidiary		—			(1.9	)		—
California basis step-up election, net of related valuation allowance impact		(1.2	)		—			—
Other, net		0.4			0.5			0.2
Effective income tax rate		40.6	%		36.6	%		36.9	%

Schedule of Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities were comprised of the following at June 30, 2015 and 2014:

	Year ended June 30,
	2015			2014
Deferred tax assets:
Net operating loss carryforwards	$	61.1		$	77.0
Property, plant and equipment		2.9			2.9
Accrued vacation		1.7			1.6
Allowance for doubtful accounts		2.7			3.3
Stock compensation expense		36.8			26.0
Research and development credits		8.9			11.2
Uncertain state tax positions		1.1			0.6
Other, net		0.9			0.3
Total gross deferred tax assets		116.1			122.9
Less valuation allowance		(33.4	)		(41.4	)
Total deferred tax assets		82.7			81.5
Deferred tax liabilities:
Intangible assets		69.4			71.8
Total deferred tax liabilities		69.4			71.8
Net deferred tax assets		13.3			9.7
Current net deferred tax asset		13.5			6.5
Long term net deferred tax asset		(0.2	)		3.2
Net deferred tax asset	$	13.3		$	9.7

Summary of Net Operating Loss and Research Credit Carryforwards

At June 30, 2015, the Company had the following net operating loss and research credit carryforwards, with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated

Carryforwards	Amount		Subject to sections 382, 383	Expires beginning in year	Through
Federal net operating loss	$	138.4	Yes	2027	2033
Utah net operating loss		229.9	No	2016	2024
Oklahoma net operating loss		14.1	Yes	2023	2033
Foreign net operating losses (various jurisdictions)		39.3	No	Various	Various
Federal research credit		3.2	Yes	2025	2032
Utah research credit		8.6	No	2021	2029

Schedule of Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year ended June 30,
	2015		2014			2013
Unrecognized tax benefits at the beginning of year	$	24.2	$	10.9		$	10.2
Gross increases - current year tax positions		1.1		1.8			0.7
Gross increases - prior year tax positions		1.0		0.3			—
Gross increases - acquisitions		—		14.2			—
Gross decreases - prior year tax positions		—		(3.0	)		—
Unrecognized tax benefits at end of year	$	26.3	$	24.2		$	10.9
Interest and penalties in year-end balance	$	1.0	$	0.6		$	0.3