Income Taxes (Tables)

12 Months Ended

Jun. 30, 2019

Provision for (benefit from) income taxes

The provision for income taxes is comprised of:



	Year Ended June 30,
	2019			2018			2017
				(in thousands)
U.S. federal taxes:
Current	$	(57	)	$	55		$	1,043
Deferred	(510		)	(1,943		)	(325		)
Non-U.S. taxes:
Current	1,765			2,898			(4,615		)
Deferred	55			(298		)	7,548
State taxes, net of federal benefit:
Current	3			(4		)	1
Total provision for income taxes	$	1,256		$	708		$	3,652

Effective income tax rate reconciliation

The reconciliation of the federal statutory income tax rate to our effective income tax rate is as follows (in percentage):

Domestic and foreign components of income (loss)

The domestic and foreign components of income before taxes are:



	Year Ended June 30,
	2019			2018		2017
				(in thousands)
U.S. operations	$	4,100		$	4,219	$	4,016
Non-U.S. operations	(17,482		)	1,437		8,896
Income before income taxes	$	(13,382	)	$	5,656	$	12,912

Components of deferred tax assets and liabilities

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our deferred tax assets and liabilities are as follows:



	June 30,
	2019			2018
	(in thousands)
Deferred tax assets:
Accrued compensation	$	1,428		$	2,121
Net operating loss carryforwards	16,782			7,213
Depreciation	10,036			10,968
Tax credits	10,882			8,380
Capitalized intangible assets	11,981			12,942
Capitalized Costs	—			2,292
Accruals and reserves	1,000			1,197
Total deferred tax assets	52,109			45,113
Valuation allowance	(35,420		)	(30,105		)
Total deferred tax assets, net of valuation allowance	16,689			15,008
Deferred tax liabilities:
Depreciation and amortization	(12,243		)	(10,819		)
Accruals and reserves	(90		)	(10		)
Total deferred tax liabilities	(12,333		)	(10,829		)
Net deferred tax assets	$	4,356		$	4,179

Schedule of deferred tax assets and liabilities, current and noncurrent

The breakdown between deferred tax assets and liabilities is as follows:



	June 30,
	2019			2018
	(in thousands)
Long-term deferred tax assets	$	4,822		$	4,892
Long-term deferred tax liabilities	(466		)	(713		)
Net deferred tax assets	$	4,356		$	4,179

Unrecognized tax benefits rollforward

A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2016 to June 30, 2019 is as follows:



	Year Ended June 30,
	2019			2018			2017
	(in thousands)
Balance at beginning of year	$	7,143		$	6,589		$	6,743
Additions based on tax positions related to the current year	417			721			401
Reductions based on tax positions related to prior years	(271		)	(11		)	(4		)
Reductions due to lapse of applicable statute of limitations	(139		)	(156		)	(551		)

Balance at end of year	$	7,150		$	7,143		$	6,589

At June 30, 2019, the total unrecognized tax benefits of $7.2 million included $6.3 million of unrecognized tax benefits that have been netted against the related deferred tax assets. The remaining $0.9 million of unrecognized tax benefits was recorded within long-term income tax payable on the Company's consolidated balance sheet as of June 30, 2019. The Company cannot reasonably estimate the timing and amount of potential cash settlements on the unrecognized tax benefits.

The total unrecognized tax benefits of $7.2 million at June 30, 2019 included $4.2 million that, if recognized, would reduce the effective income tax rate in future periods.