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Product Warranties, Indemnifications, Contingencies and Legal Proceedings | 6 Months Ended
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Dec. 31, 2015
Commitments And Contingencies Disclosure [Abstract] |
Product Warranties, Indemnifications, Contingencies and Legal Proceedings | 9. Product Warranties, Indemnifications, Contingencies and Legal Proceedings Product Warranties We generally warrant our products for a period of 12 months from the date of delivery and accrue estimated probable product warranty costs as a cost of revenue at the time we recognize revenue. Factors that affect our warranty liability include historical and anticipated rates of warranty claims, materials usage, rework, and delivery costs. We assess the adequacy of our warranty obligations each reporting period and adjust the accrued warranty liability on the basis of our estimates. Indemnifications In connection with certain agreements, we are obligated to indemnify the counterparty against third party claims alleging infringement of certain intellectual property rights by us. We have also entered into indemnification agreements with our officers and directors. Maximum potential future payments cannot be estimated because these agreements do not have a maximum stated liability. However, historical costs related to these indemnification provisions have not been significant. We have not recorded any liability in our condensed consolidated financial statements for such indemnification obligations. Contingencies We have in the past and may in the future receive notices from third parties that claim our products infringe their intellectual property rights. We cannot be certain that our technologies and products do not and will not infringe issued patents or other proprietary rights of third parties. Any infringement claims, with or without merit, could result in significant litigation costs and diversion of management and financial resources, including the payment of damages, which could have a material adverse effect on our business, financial condition, and results of operations. Legal Proceedings In April 2015, we filed patent infringement actions with the United States District Court in the Northern District of California and with the United States International Trade Commission in which we allege certain competitor products infringe several of our patents. We intend to vigorously pursue these claims. In October 2015, Amkor Technology filed a complaint against us alleging infringement of intellectual property rights and various other claims. In November 2015, we filed an indemnification claim against the former stockholders and option holders of Validity to secure our rights under the Agreement and Plan of Reorganization between us and Validity. Pursuant to the Agreement, we can offset costs, damages and settlements against the contingent consideration earnout balance for certain of the claims brought by Amkor. Accordingly, we intend to reserve the majority of the remaining contingent consideration earnout balance and have reclassified the reserved balance from a current liability to a non-current liability, as final settlement of the Amkor complaint is not expected to occur within the next twelve months. We are involved in several other non-material litigation activities. We have expensed all legal fees incurred to date in connection with our legal activities.

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