Commitments and Contingencies

9 Months Ended

Mar. 31, 2017

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.

During the quarter ended December 31, 2016, the Company recognized $12.8 million in proceeds from a legal settlement, net of attorney fees.

The Company is in the process of completing several capital projects for fiscal year 2017 that will result in significant cash commitments. Total capital expenditures for fiscal year 2017 are expected to range from $7 million to $10 million, primarily for IT investments.

During the Company's due diligence for the CDC and Network1 acquisitions, 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 sufficient funds to pay those obligations were escrowed or the Company is entitled to offset those obligations against future earnout payments under the share purchase agreements. 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 as of March 31, 2017:



	March 31, 2017
	CDC		Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	2,309	$	1,351
Other non-current assets	$	—	$	8,598
Liabilities
Accrued expenses and other current liabilities	$	2,309	$	1,351
Other long-term liabilities	$	—	$	8,598

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 as of June 30, 2016:



	June 30, 2016
	CDC		Network1
	(in thousands)
Assets
Prepaid expenses and other current assets	$	2,346	$	595
Other non-current assets	$	—	$	9,837
Liabilities
Accrued expenses and other current liabilities	$	2,346	$	595
Other long-term liabilities	$	—	$	9,837

Changes in these contingent liabilities and receivables from June 30, 2016 are primarily driven by foreign currency translation and the lapse of the statute of limitations on a portion of the Network1 contingencies.