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v3.22.4

Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income Tax Benefit | Income tax benefit consists of the following:
| Years Ended December 31, |  | Six-month Transition Period Ended December 31, |  | Year Ended June 30,
(in millions) | 2022 |  | 2021 |  | 2020 |  | 2020
Current: |  |  |  |  |  |  |
Federal | $ | (0.5) |  |  | $ | (1.9) |  |  | $ | (75.8) |  |  | $ | 26.6 |
State | 1.9 |  |  | 3.6 |  |  | (0.6) |  |  | 4.9 |
Foreign | 0.5 |  |  | 0.1 |  |  | 0.2 |  |  | 0.5 |
Total current | 1.9 |  |  | 1.8 |  |  | (76.2) |  |  | 32.0 |
Deferred: |  |  |  |  |  |  |
Federal | (25.8) |  |  | (33.7) |  |  | 39.1 |  |  | (51.5) |
State | (4.8) |  |  | 5.1 |  |  | (3.4) |  |  | (4.1) |
Foreign | (2.9) |  |  | 0.1 |  |  | (0.5) |  |  | (3.6) |
Change in valuation allowance | 3.0 |  |  | (3.2) |  |  | — |  |  | 3.5 |
Total deferred | (30.5) |  |  | (31.7) |  |  | 35.2 |  |  | (55.7) |
Total income tax benefit | $ | (28.6) |  |  | $ | (29.9) |  |  | $ | (41.0) |  |  | $ | (23.7) |
Schedule of Loss Before Income Taxes | Loss before income taxes consists of the following:
| Years Ended December 31, |  | Six-month Transition Period Ended December 31, |  | Year Ended June 30,
(in millions) | 2022 |  | 2021 |  | 2020 |  | 2020
United States | $ | (141.3) |  |  | $ | (53.8) |  |  | $ | (101.8) |  |  | $ | (240.9) |
Foreign | 0.7 |  |  | (3.3) |  |  | 7.7 |  |  | 17.6 |
Total | $ | (140.6) |  |  | $ | (57.1) |  |  | $ | (94.1) |  |  | $ | (223.3) |
Schedule of Differences Between Statutory Federal Income Tax Rate and Income Taxes Reported | 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:
| Years Ended December 31, |  | Six-month Transition Period Ended December 31, |  | Year Ended June 30,
(in millions) | 2022 |  | 2021 |  | 2020 |  | 2020
Federal income tax expense at the statutory rate | $ | (29.5) |  |  | 21.0 | % |  | $ | (12.0) |  |  | 21.0 | % |  | $ | (19.8) |  |  | 21.0 | % |  | $ | (46.9) |  |  | 21.0 | %
State income taxes, net of federal benefit | (3.3) |  |  | 2.3 | % |  | (1.8) |  |  | 3.2 | % |  | (1.2) |  |  | 1.3 | % |  | 4.0 |  |  | (1.8) | %
Research and development credits | (3.5) |  |  | 2.5 | % |  | 2.5 |  |  | (4.4) | % |  | (1.3) |  |  | 1.4 | % |  | (2.8) |  |  | 1.3 | %
Uncertain tax positions | 0.6 |  |  | (0.4) | % |  | (3.0) |  |  | 5.3 | % |  | 0.6 |  |  | (0.7) | % |  | 1.5 |  |  | (0.7) | %
Incentive stock option and employee stock purchase plan expense | 2.5 |  |  | (1.8) | % |  | 0.7 |  |  | (1.2) | % |  | 2.5 |  |  | (2.7) | % |  | (0.2) |  |  | 0.1 | %
Foreign rate differential | — |  |  | — | % |  | 0.5 |  |  | (0.9) | % |  | (2.1) |  |  | 2.2 | % |  | 0.7 |  |  | (0.3) | %
Change in valuation allowance | 2.6 |  |  | (1.8) | % |  | (3.2) |  |  | 5.6 | % |  | (0.3) |  |  | 0.3 | % |  | 3.5 |  |  | (1.7) | %
CARES Act | — |  |  | — | % |  | 2.7 |  |  | (4.7) | % |  | (20.7) |  |  | 22.0 | % |  | — |  |  | — | %
Non-deductible meals and entertainment | — |  |  | — | % |  | 0.1 |  |  | (0.2) | % |  | 0.5 |  |  | (0.5) | % |  | 1.8 |  |  | (0.8) | %
Non-deductible officer compensation | 3.5 |  |  | (2.5) | % |  | 3.3 |  |  | (5.8) | % |  | 0.1 |  |  | (0.1) | % |  | 1.6 |  |  | (0.7) | %
Asset impairment | — |  |  | — | % |  | — |  |  | — | % |  | — |  |  | — | % |  | 12.6 |  |  | (5.6) | %
Non-deductible legal settlement | — |  |  | — | % |  | 2.5 |  |  | (4.5) | % |  | — |  |  | — | % |  | — |  |  | — | %
Acquisitions, dispositions, and contingent consideration | (0.1) |  |  | 0.1 | % |  | (23.0) |  |  | 40.3 | % |  | 0.7 |  |  | (0.7) | % |  | (0.3) |  |  | 0.1 | %
Other, net | (1.4) |  |  | 0.9 | % |  | 0.8 |  |  | (1.4) | % |  | — |  |  | — | % |  | 0.8 |  |  | (0.3) | %
Total income tax benefit | $ | (28.6) |  |  | 20.3 | % |  | $ | (29.9) |  |  | 52.3 | % |  | $ | (41.0) |  |  | 43.5 | % |  | $ | (23.7) |  |  | 10.6 | %
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:
| December 31,
(in millions) | 2022 |  | 2021
Deferred tax assets: |  |  |
Net operating loss carryforwards | $ | 66.6 |  |  | $ | 67.2 |
Deferred revenue | 0.2 |  |  | 1.2 |
Stock compensation expense | 3.6 |  |  | 4.5 |
Research and development credits | 19.9 |  |  | 17.3 |
Lease liability | 35.2 |  |  | 22.4 |
Section 174 capitalized costs | 21.2 |  |  | — |
Accrued expenses and liabilities | 10.8 |  |  | 14.2 |
Other, net | 3.4 |  |  | 4.5 |
Total gross deferred tax assets | 160.9 |  |  | 131.3 |
Less valuation allowance | (42.4) |  |  | (38.5) |
Total deferred tax assets | 118.5 |  |  | 92.8 |
Deferred tax liabilities: |  |  |
Intangible assets | 93.8 |  |  | 104.9 |
Lease right-of-use assets | 25.4 |  |  | 20.2 |
Property, plant and equipment | 2.8 |  |  | 3.5 |
Total deferred tax liabilities | 122.0 |  |  | 128.6 |
Net deferred tax liability | $ | (3.5) |  |  | $ | (35.8) |
Schedule of Net Operating Loss and Research Credit Carryforwards (Tax Effected) | At December 31, 2022, the Company had the following net operating loss and research credit carryforwards (tax effected), with their respective expiration periods. Certain carryforwards are subject to the limitations of Section 382 and 383 of the Internal Revenue Code as indicated (in millions):
Carryforwards |  | Amount |  | Subject to sections 382, 383 |  | Expires beginning in year |  | Through
Federal net operating loss |  | $ | 26.6 |  |  | Yes |  | 2033 |  | Indefinite
Federal capital loss |  | 13.5 |  |  | No |  | 2026 |  | 2026
Utah net operating loss |  | 2.8 |  |  | No |  | 2023 |  | Indefinite
California net operating loss |  | 4.4 |  |  | Yes |  | 2029 |  | 2041
Other state net operating loss |  | 7.7 |  |  | Yes |  | Various |  | Various
Foreign net operating losses (various jurisdictions) |  | 11.6 |  |  | No |  | Various |  | Various
Federal research credit |  | 8.7 |  |  | Yes |  | 2027 |  | 2042
Utah research credit |  | 6.9 |  |  | No |  | 2023 |  | 2036
California research credit |  | 4.4 |  |  | No |  | Indefinite |  | Indefinite
Schedule of Unrecognized Tax Benefits | The Company’s gross unrecognized tax benefits as of the years ended December 31, 2022 and 2021, the transition period ended December 31, 2020 and the fiscal year ended June 30, 2020, and the changes in those balances are as follows:
| Years Ended December 31, |  | Six-month Transition Period Ended December 31, |  | Year Ended June 30,
(in millions) | 2022 |  | 2021 |  | 2020 |  | 2020
Unrecognized tax benefits at the beginning of period | $ | 32.1 |  |  | $ | 37.6 |  |  | $ | 23.5 |  |  | $ | 21.7 |
Gross increases - current year tax positions | 0.9 |  |  | 1.4 |  |  | 13.9 |  |  | 1.6 |
Gross increases - prior year tax positions | 1.6 |  |  | 1.1 |  |  | 1.0 |  |  | 0.7 |
Gross decreases - prior year tax positions | (2.0) |  |  | (2.8) |  |  | (0.1) |  |  | — |
Gross decreases - settlements | (0.7) |  |  | (5.1) |  |  | — |  |  | — |
Gross decreases - statute lapse | — |  |  | (0.1) |  |  | (0.7) |  |  | (0.5) |
Unrecognized tax benefits at end of year | $ | 31.9 |  |  | $ | 32.1 |  |  | $ | 37.6 |  |  | $ | 23.5 |
Interest and penalties in year-end balance | $ | 4.1 |  |  | $ | 3.3 |  |  | $ | 2.2 |  |  | $ | 1.4 |

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