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v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
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Jun. 30, 2022
Income Tax Disclosure [Abstract] |
Provision for (benefit from) income taxes | The provision for income taxes is comprised of:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
|  |  | (in thousands) |  |
U.S. federal taxes: |  |  |  |
Current | $ | 645 |  |  | $ | 31 |  |  | $ | (1,673) |
Deferred | 2,260 |  |  | 1,955 |  |  | 22 |
Non-U.S. taxes: |  |  |  |
Current | 7,749 |  |  | 2,344 |  |  | 1,940 |
Deferred | 28,599 |  |  | (396) |  |  | 58 |
State taxes, net of federal benefit: |  |  |  |
Current | 5 |  |  | 1 |  |  | 1 |
Total provision for income taxes | $ | 39,258 |  |  | $ | 3,935 |  |  | $ | 348 |
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):
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
United States statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Stock-based compensation | 0.0 |  |  | 0.1 |  |  | — |
Foreign taxes, net | (14.3) |  |  | (14.4) |  |  | (36.1) |
Outside basis difference on equity method investment | 1.2 |  |  | — |  |  | — |
Research and development credit | (0.3) |  |  | (2.4) |  |  | 8.0 |
Non-deductible expenses | 0.5 |  |  | 2.4 |  |  | (1.0) |
U.S. Tax Act deferred tax re-measurement | — |  |  | — |  |  | 6.2 |
Foreign Derived Intangible Income Deduction | (0.3) |  |  | — |  |  | — |
Other | 0.1 |  |  | (0.2) |  |  | — |
| 7.9 | % |  | 6.5 | % |  | (1.9) | %
Domestic and foreign components of income (loss) | The domestic and foreign components of income before taxes are:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
|  |  | (in thousands) |  |
U.S. operations | $ | 16,684 |  |  | $ | 9,622 |  |  | $ | 3,549 |
Non-U.S. operations | 478,386 |  |  | 50,602 |  |  | (21,458) |
Loss before income taxes | $ | 495,070 |  |  | $ | 60,224 |  |  | $ | (17,909) |
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,
| 2022 |  | 2021
| (in thousands)
Deferred tax assets: |  |  |
Accrued compensation | $ | 5,742 |  |  | $ | 3,954 |
Net operating loss carryforwards | 61 |  |  | 22,539 |
Depreciation | 4,365 |  |  | 7,924 |
Tax credits | 15,079 |  |  | 15,550 |
Operating lease liabilities | 5,807 |  |  | 7,292 |
Capitalized intangible assets | — |  |  | 9,982 |
Accruals and reserves | 643 |  |  | 1,113 |
Total deferred tax assets | 31,697 |  |  | 68,354 |
Valuation allowance | (5,755) |  |  | (41,474) |
Total deferred tax assets, net of valuation allowance | 25,942 |  |  | 26,880 |
Deferred tax liabilities: |  |  |
Depreciation and amortization | (18,909) |  |  | (17,193) |
Right of use assets | (5,579) |  |  | (6,968) |
Investments | (29,619) |  |  | — |
Total deferred tax liabilities | (54,107) |  |  | (24,161) |
Net deferred tax assets/(liabilities) | $ | (28,165) |  |  | $ | 2,719 |
Schedule of deferred tax assets and liabilities, current and noncurrent | The breakdown between deferred tax assets and liabilities is as follows:
| June 30,
| 2022 |  | 2021
| (in thousands)
Long-term deferred tax assets | $ | 592 |  |  | $ | 5,167 |
Long-term deferred tax liabilities | (28,757) |  |  | (2,448) |
Net deferred tax assets/(liabilities) | $ | (28,165) |  |  | $ | 2,719 |
Unrecognized tax benefits rollforward | A reconciliation of the beginning and ending amount of unrecognized tax benefits from July 1, 2019 to June 30, 2022 is as follows:
| Year Ended June 30,
| 2022 |  | 2021 |  | 2020
| (in thousands)
Balance at beginning of year | $ | 7,645 |  |  | $ | 7,126 |  |  | $ | 7,150 |
Additions based on tax positions related to the current year | 1,121 |  |  | 677 |  |  | 333 |
Reductions based on tax positions related to prior years | (40) |  |  | (41) |  |  | (114) |
Reductions due to lapse of applicable statute of limitations | (117) |  |  | (117) |  |  | (243) |
Balance at end of year | $ | 8,609 |  |  | $ | 7,645 |  |  | $ | 7,126 |

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