Income Taxes (Tables)

12 Months Ended

Jun. 30, 2018

Schedule of Income Tax Expense (Benefit)

Income tax expense(benefit) consists of the following:

	Year ended June 30,
	2018			2017			2016
Current:
Federal	$	6.7		$	17.1		$	22.4
State		2.2			2.4			3.4
Total Current		8.9			19.5			25.8
Deferred:
Federal		(22.7	)		1.5			10.7
State		0.7			(1.7	)		(3.4	)
Foreign		(1.4	)		(1.7	)		3.5
Change in valuation allowance		0.5			3.0			2.2
Total Deferred		(22.9	)		1.1			13.0
Total income tax expense	$	(14.0	)	$	20.6		$	38.8

Schedule of Income (Loss) Before Income Taxes

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

	Year ended June 30,
	2018			2017			2016
United States	$	119.1		$	43.9		$	156.6
Foreign		(2.2	)		(3.0	)		(0.6	)
Total	$	116.9		$	40.9		$	156.0

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,
	2018			2017			2016
Federal income tax expense at the statutory rate		28.1	%		35.0	%		35.0	%
State income taxes, net of federal benefit		2.5			1.7			2.2
Research and development credits, net of the federal tax on state credits		(1.8	)		(7.6	)		(1.4	)
Uncertain tax positions, net of federal benefit		2.0			3.0			0.6
Uncertain tax benefits statute expired, net of federal benefit		-			-			(4.8	)
Incentive stock option and employee stock purchase plan expense		(1.1	)		2.0			(0.3	)
Foreign rate differential		(0.8	)		(1.3	)		-
Change in valuation allowance		0.5			7.4			1.4
Tax Cut and Jobs Act Impact		(27.3	)		-			-
Fair value adjustments related to acquisition contingent consideration		(14.7	)		-			-
Early adoption of ASU 2016-09		(0.3	)		7.7			(8.3	)
Acquisition related transaction costs		-			1.9			-
Other, net		0.9			0.6			0.5
		(12.0	)%		50.4	%		24.9	%

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:

	Year ended June 30,
	2018			2017
Deferred tax assets:
Net operating loss carryforwards	$	44.6		$	75.5
Property, plant and equipment		1.1			2.1
Accrued vacation		1.4			3.0
AR allowance		10.7			15.4
Stock compensation expense		17.0			29.9
Research and development credits		13.0			9.9
Uncertain state tax positions		1.3			1.4
Other, net		0.9			2.3
Total gross deferred tax assets		90.0			139.5
Less valuation allowance		(37.8	)		(40.5	)
Total deferred tax assets		52.2			99.0
Deferred tax liabilities:
Intangible assets		109.5			177.7
Total deferred tax liabilities		109.5			177.7
Net deferred tax liability		(57.3	)		(78.7	)

Summary of Net Operating Loss and Research Credit Carryforwards

At June 30, 2018, 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.

			Subject to	Expires
Carryforwards	Amount		sections 382, 383	beginning in year		Through
Federal net operating loss	$	112.2	Yes		2027		2033
Utah net operating loss		209.5	No		2016		2024
Oklahoma net operating loss		14.1	Yes		2023		2033
Foreign net operating losses (various jurisdictions)		34.7	No	Various		Various
Federal research credit		4.7	Yes		2025		2032
Utah research credit		10.6	No		2021		2031

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,
	2018			2017			2016
Unrecognized tax benefits at the beginning of year	$	25.2		$	24.2		$	26.3
Gross increases - current year tax positions		0.6			0.7			0.6
Gross increases - prior year tax positions		2.4			0.7			5.4
Gross increases - acquisitions		—			—			—
Gross decreases - prior year tax positions		(3.3	)		(0.4	)		(8.1	)
Unrecognized tax benefits at end of year	$	24.9		$	25.2		$	24.2
Interest and penalties in year-end balance	$	1.5		$	(0.9	)	$	0.5