Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income Taxes

Income (loss) before provision for (benefit from) income taxes

 Income (loss) before provision for (benefit from) income taxes consists of the following:

	Year Ended June 30,
	2013		2012			2011
	(Dollars in Thousands)
Domestic	$	54,587	$	(14,086	)	$	(50,395	)
Foreign		2,851		(1,066	)		6,675
Income (loss) before provision for (benefit from) income taxes	$	57,438	$	(15,152	)	$	(43,720	)

(Benefit from) Provision for Income Taxes

The provision for (benefit from) income taxes shown in the accompanying consolidated statements of operations is composed of the following:

	Year Ended June 30,
	2013			2012			2011
	(Dollars in Thousands)
Federal—
Current	$	—		$	—		$	—
Deferred		7,867			(3,409	)		(60,004	)
State—
Current		136			191			132
Deferred		693			33			(1,702	)
Foreign—
Current		7,068			3,292			5,446
Deferred		(3,588	)		(1,451	)		2,151
	$	12,176		$	(1,344	)	$	(53,977	)

Income Tax Reconciliation Based on Federal Statutory Rate

The provision for (benefit from) income taxes differs from that based on the federal statutory rate due to the following:

	Year Ended June 30,
	2013			2012			2011
	(Dollars in Thousands)
Federal tax provision (benefit) at statutory rate	$	20,103		$	(5,303	)	$	(15,302	)
State income taxes		88			124			86
Subpart F and dividend income		4,456			4,189			1,235
Foreign taxes and rate differences		2,298			1,001			2,218
Stock-based compensation		900			2,968			3,338
Tax credits		(4,816	)		(3,913	)		(4,524	)
Tax contingencies		(168	)		(2,385	)		7,158
Return to provision adjustments		(149	)		442			1,182
Valuation allowance		(1,813	)		1,431			(48,830	)
Benefit from foreign restructuring		(9,266	)		—			—
Other		543			102			(538	)
Provision for (benefit from) income taxes	$	12,176		$	(1,344	)	$	(53,977	)

Deferred Tax Assets and Liabilities

Deferred tax assets (liabilities) consist of the following at June 30, 2013 and 2012:

	Year Ended June 30,
	2013			2012
	(Dollars in Thousands)
Deferred tax assets:
Federal and state credits	$	4,918		$	4,000
Foreign tax credits		33,310			38,870
Federal and state loss carryforwards		6,221			18,458
Capital loss carryforwards		8,076			—
Foreign loss carryforwards		1,653			2,658
Deferred revenue		4,198			3,682
Restructuring accruals		34			326
Other reserves and accruals		4,834			5,119
Intangible assets		719			1,037
Property, leasehold improvements, and other basis differences		2,829			3,523
Other temporary differences		3,504			5,596
		70,296			83,269
Deferred tax liabilities:
Deferred revenue		(151	)		(714	)
Intangible assets		(1,444	)		(1,558	)
Property, leasehold improvements, and other basis differences		(16	)		(9,583	)
Other temporary differences		(677	)		(683	)
		(2,288	)		(12,538	)
Valuation allowance		(9,943	)		(5,626	)
Net deferred tax assets	$	58,065		$	65,105

Reconciliation of Reserve for Uncertain Tax Positions

A reconciliation of the reserve for uncertain tax positions is as follows:

	Year Ended June 30,
	2013			2012			2011
	(Dollars in Thousands)
Uncertain tax positions, beginning of year	$	21,906		$	24,835		$	17,730
Gross increases—tax positions in prior period		1,150			2,072			4,599
Gross decreases—tax positions in prior period		—			(1,468	)		(1,025	)
Gross increases—tax positions in current period		—			—			3,333
Gross decreases—lapse of statutes		(1,172	)		(2,954	)		(517	)
Currency translation adjustment		147			(579	)		715
Uncertain tax positions, end of year	$	22,031		$	21,906		$	24,835