Commitments and Contingencies

6 Months Ended

Dec. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

The Company and its subsidiaries are, from time to time, parties to lawsuits arising out of operations. Although there can be no assurance, based upon information known to the Company, the Company believes that any liability resulting from an adverse determination of such lawsuits would not have a material adverse effect on the Company’s financial condition, results of operations or cash flows.

The Company is in the process of designing and developing a new Enterprise Resource Planning ("ERP") system. In December 2013, the Company retained SAP for software platform and implementation consulting services on the new ERP system. For the quarter and six months ended December 31, 2014, the Company incurred $5.6 million and $11.8 million in the form of capital expenditures related to the ERP project. Amounts in accrued expenses and other current liabilities related to capital expenditures totaled $1.5 million and $3.0 million as of December 31, 2014 and June 30, 2014, respectively. Total capital expenditures for fiscal 2015 could range from $16 million to $20 million.

During the Company's due diligence for the CDC acquisition, several pre-acquisition contingencies were identified regarding various Brazilian federal and state tax exposures. The Company is able to record indemnification receivables that are reported gross of the pre-acquisition contingency liabilities as they were escrowed in the Share Purchase and Sale Agreement. However, indemnity claims can be made up to the entire purchase price, which includes the initial payment and all future earnout payments. The table below summarizes the balances and line item presentation of these pre-acquisition contingencies and corresponding indemnification receivables in the Company's Condensed Consolidated Balance Sheets:



	December 31, 2014		June 30, 2014
	(in thousands)
Assets
Prepaid expenses and other current assets	$	4,166	$	5,023
Other non-current assets	$	1,013	$	1,221
Liabilities
Accrued expenses and other current liabilities	$	4,166	$	5,023
Other long-term liabilities	$	1,013	$	1,221

Changes in these contingent liabilities and receivables from June 30, 2014, are primarily driven by foreign currency translation.

- Definition

The entire disclosure for commitments and contingencies.

+ References+ Details