Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Income tax expense consists of the following:

	Year ended June 30,
	2017			2016			2015
Current:
Federal	$	17.2		$	22.2		$	53.7
State		2.4			3.5			4.7
Total Current		19.6			25.7			58.4
Deferred:
Federal		2.0			15.4			(2.1	)
State		(1.7	)		(3.2	)		8.7
Foreign		(1.7	)		3.5			(2.3	)
Change in valuation allowance		3.1			2.2			(8.0	)
Total Deferred		1.7			17.9			(3.7	)
Total income tax expense	$	21.3		$	43.6		$	54.7

Schedule of Income (Loss) Before Income Taxes

Income (loss) before income taxes consists of the following:

	Year ended June 30,
	2017			2016			2015
United States	$	45.9		$	169.5		$	147.0
Foreign		(3.0	)		(0.6	)		(12.1	)
Total	$	42.9		$	168.9		$	134.9

Schedule of Differences Between Statutory Federal Income Tax Rate and Income Taxes Reported in Consolidated Statements of Operations

The differences between income taxes at the statutory federal income tax rate and income taxes reported in the consolidated statements of operations were as follows:

	Year ended June 30,
	2017			2016			2015
Federal income tax expense at the statutory rate		35.0	%		35.0	%		35.0	%
State income taxes, net of federal benefit		1.7			2.0			1.7
Research and development credits, net of the federal tax on state credits		(7.1	)		(1.3	)		(2.5	)
Uncertain tax positions, net of federal benefit		3.8			0.6			1.2
Uncertain tax benefits statute expired, net of federal benefit		(0.9	)		(4.4	)		0.0
Incentive stock option and employee stock purchase plan expense		1.9			(0.3	)		0.2
Adjustment to deferred tax liability attributable to acquired intangible assets		0.0			0.0			1.6
Foreign rate differential		(1.2	)		0.0			1.6
Change in valuation allowance		7.1			1.2			2.6
California basis step-up election, net of related valuation allowance impact		0.0			0.0			(1.2	)
Early adoption of ASU 2016-09		7.2			(7.5	)		0.0
Acquisition related transaction costs		1.8			0.0			0.0
Other, net		0.4			0.5			0.4
		49.7	%		25.8	%		40.6	%

Schedule of Components of Deferred Tax Assets and Liabilities

The significant components of the Company’s deferred tax assets and liabilities were comprised of the following at June 30, 2017 and 2016:

	Year ended June 30,
	2017			2016
Deferred tax assets:
Net operating loss carryforwards	$	75.5		$	54.4
Property, plant and equipment		2.1			1.8
Accrued vacation		3.0			2.0
Allowance for doubtful accounts		9.7			2.4
Stock compensation expense		29.9			27.0
Research and development credits		9.9			9.4
Uncertain state tax positions		1.4			1.1
Other, net		2.3			0.7
Total gross deferred tax assets		133.8			98.8
Less valuation allowance		(40.5	)		(35.6	)
Total deferred tax assets		93.3			63.2
Deferred tax liabilities:
Intangible assets		177.7			81.1
Total deferred tax liabilities		177.7			81.1
Net deferred tax liability		(84.4	)		(17.9	)

Summary of Net Operating Loss and Research Credit Carryforwards

At June 30, 2017, the Company had the following net operating loss and research credit carryforwards, with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated.

			Subject to	Expires
Carryforwards	Amount		sections 382, 383	beginning in year		Through
Federal net operating loss	$	160.9	Yes		2027		2033
Utah net operating loss		209.5	No		2016		2024
Oklahoma net operating loss		14.1	Yes		2023		2033
Foreign net operating losses (various jurisdictions)		26.0	No	Various		Various
Federal research credit		3.2	Yes		2025		2032
Utah research credit		10.1	No		2021		2031

Schedule of Reconciliation of Beginning and Ending Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	Year ended June 30,
	2017			2016			2015
Unrecognized tax benefits at the beginning of year	$	24.2		$	26.3		$	24.2
Gross increases - current year tax positions		0.7			0.6			1.1
Gross increases - prior year tax positions		0.7			5.4			1.0
Gross increases - acquisitions		—			—			—
Gross decreases - prior year tax positions		(0.4	)		(8.1	)		—
Unrecognized tax benefits at end of year	$	25.2		$	24.2		$	26.3
Interest and penalties in year-end balance	$	(0.9	)	$	0.5		$	0.6