INCOME TAXES (Tables)
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12 Months Ended |
Jun. 30, 2015 |
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| Income Tax Disclosure [Abstract] |
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| Components of income before provision for income taxes |
For financial reporting purposes, the components of income before provision for income taxes were as follows (in thousands):
| | | | | | | | | | | | | | | | Years Ended June 30, | | | 2015 | | 2014 | | 2013 | Domestic | | $ | 44,743 |
| | $ | 44,551 |
| | $ | 17,860 |
| Foreign | | 101,005 |
| | 150,060 |
| | 73,893 |
| | | $ | 145,748 |
| | $ | 194,611 |
| | $ | 91,753 |
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| Components of provision for income taxes |
The components of the Company’s provision for income taxes consisted of the following (in thousands): | | | | | | | | | | | | | | | | Years Ended June 30, | | | 2015 | | 2014 | | 2013 | Current | | | | | | | Foreign | | $ | 909 |
| | $ | 2,451 |
| | $ | 1,790 |
| Federal | | 15,786 |
| | 16,516 |
| | 8,515 |
| State | | 299 |
| | 109 |
| | 581 |
| Current tax expense | | 16,994 |
| | 19,076 |
| | 10,886 |
| Deferred | | | | | | | Foreign | | — |
| | — |
| | — |
| Federal | | (856 | ) | | (1,507 | ) | | (130 | ) | State | | (53 | ) | | 105 |
| | 507 |
| Deferred tax expense | | (909 | ) | | (1,402 | ) | | 377 |
| Provision for income taxes | | $ | 16,085 |
| | $ | 17,674 |
| | $ | 11,263 |
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| Significant components of deferred tax assets and liabilities |
Significant components of the Company’s deferred tax assets and liabilities consisted of the following (in thousands): | | | | | | | | | | | | June 30, | | | 2015 | | 2014 | Deferred tax assets | | | | | Reserves and Allowances | | $ | 836 |
| | $ | 200 |
| Stock-based compensation | | 1,168 |
| | 1,038 |
| Accrued expenses | | 446 |
| | 455 |
| Research and development credits | | 595 |
| | 345 |
| State tax | | 824 |
| | 570 |
| Other | | 399 |
| | 353 |
| Total deferred tax assets | | 4,268 |
| | 2,961 |
| Deferred tax liabilities | | | | | Basis difference for fixed assets | | (623 | ) | | (477 | ) | Other | | — |
| | — |
| Total deferred tax liabilities | | (623 | ) | | (477 | ) | Valuation allowance | | (595 | ) | | (345 | ) | Net deferred tax assets | | $ | 3,050 |
| | $ | 2,139 |
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| Effective to statutory income tax rate reconciliation |
The effective tax rate differs from the applicable U.S. statutory federal income tax rate as follows: | | | | | | | | | | | | | Years Ended June 30, | | | 2015 | | 2014 | | 2013 | Statutory rate | | 35.0 | % | | 35.0 | % | | 35.0 | % | Stock-based compensation | | 0.6 |
| | 0.4 |
| | 0.8 |
| State tax expense | | 0.1 |
| | — |
| | 0.7 |
| Tax rate differential, foreign income | | (23.2 | ) | | (25.3 | ) | | (24.2 | ) | Federal research and development credits | | (1.1 | ) | | (0.3 | ) | | (0.4 | ) | Other permanent items | | (0.4 | ) | | (0.7 | ) | | 0.4 |
| Effective tax rate | | 11.0 | % | | 9.1 | % | | 12.3 | % |
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| Reconciliation of beginning and ending balances of unrecognized tax benefits |
A reconciliation of the beginning and ending balances of the unrecognized tax benefits during the years ended June 30, 2015 2014 and 2013 consists of the following (in thousands): | | | | | | | | | | | | | | | | Years Ended June 30, | | | 2015 | | 2014 | | 2013 | | | (In thousands) | Unrecognized benefit—beginning of period | | $ | 14,914 |
| | $ | 11,455 |
| | $ | 7,825 |
| Gross increases—current year tax positions | | 4,960 |
| | 3,871 |
| | 3,806 |
| Gross increases (decreases)—prior year tax positions | | — |
| | (213 | ) | | (176 | ) | Gross decreases - prior year tax positions due to statue lapse | | (284 | ) | | (199 | ) | | — |
| Unrecognized benefit—end of period | | $ | 19,590 |
| | $ | 14,914 |
| | $ | 11,455 |
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