Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Dec. 31, 2019	Jan. 24, 2020
Cover [Abstract]
Entity Registrant Name	EXTREME NETWORKS, INC.
Entity Central Index Key	0001078271
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Shell Company	false
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Trading Symbol	EXTR
Amendment Flag	false
Entity Common Stock, Shares Outstanding		118,507,258
Entity File Number	000-25711
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0430270
Entity Address, Address Line One	6480 Via Del Oro
Entity Address, City or Town	San Jose
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	95119
City Area Code	408
Local Phone Number	579-2800
Title of 12(b) Security	Common Stock
Security Exchange Name	NASDAQ
Document Quarterly Report	true
Document Transition Report	false
Entity Interactive Data Current	Yes
Entity Current Reporting Status	Yes

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Current assets:
Cash	$ 140,414	$ 169,607
Accounts receivable, net of allowance for doubtful accounts of $1,083 and $1,054 respectively	159,790	174,414
Inventories	79,664	63,589
Prepaid expenses and other current assets	37,744	34,379
Total current assets	417,612	441,989
Property and equipment, net	67,938	73,554
Operating lease right-of-use assets, net	57,194
Intangible assets, net	86,740	51,112
Goodwill	330,184	138,577
Other assets	54,985	51,642
Total assets	1,014,653	756,874
Current liabilities:
Current portion of long-term debt, net of unamortized debt issuance costs of $2,186 and $489, respectively	16,814	9,011
Accounts payable	65,995	65,704
Accrued compensation and benefits	55,718	51,625
Accrued warranty	16,209	14,779
Current portion of operating lease liabilities	17,921
Current portion of deferred revenue	180,935	144,230
Other accrued liabilities	69,365	70,680
Total current liabilities	422,957	356,029
Deferred revenue, less current portion	96,902	59,012
Long-term debt, less current portion, net of unamortized debt issuance costs of $7,334 and $1,261, respectively	348,916	169,739
Operating lease liabilities, less current portion	58,598
Deferred income taxes	2,114	1,957
Other long-term liabilities	34,239	54,150
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, $.001 par value, 750,000 shares authorized; 124,616 and 121,538 shares issued, respectively; 118,400 and 119,172 shares outstanding, respectively	125	122
Additional paid-in-capital	1,008,176	986,772
Accumulated other comprehensive loss	(2,485)	(2,473)
Accumulated deficit	(914,710)	(853,434)
Treasury stock at cost: 6,216 and 2,366 shares, respectively	(40,179)	(15,000)
Total stockholders’ equity	50,927	115,987
Total liabilities and stockholders’ equity	$ 1,014,653	$ 756,874

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Current assets:
Allowance for doubtful accounts	$ 1,083	$ 1,054
Current liabilities:
Net of unamortized debt issuance costs	2,186	489
Noncurrent liabilities:
Net of unamortized debt issuance costs	$ 7,334	$ 1,261
Stockholders’ equity:
Convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Convertible preferred stock, shares authorized	2,000,000	2,000,000
Convertible preferred stock, shares issued	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	750,000,000	750,000,000
Common stock, shares issued	124,616,000	121,538,000
Common stock, shares outstanding	118,400,000	119,172,000
Treasury stock, shares	6,216,000	2,366,000

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Net revenues:
Total net revenues	$ 267,472	$ 252,680	$ 522,978	$ 492,566
Cost of revenues:
Total cost of revenues	118,801	111,381	237,064	219,196
Gross profit:
Total gross profit	148,671	141,299	285,914	273,370
Operating expenses:
Research and development	55,380	52,204	114,496	103,445
Sales and marketing	75,436	68,342	146,793	135,924
General and administrative	15,098	13,886	30,080	26,657
Acquisition and integration costs	8,994	67	24,919	2,613
Restructuring charges, net of reversals and impairment	6,622	474	12,759	1,282
Amortization of intangibles	2,377	1,575	4,307	3,716
Total operating expenses	163,907	136,548	333,354	273,637
Operating (loss) income	(15,236)	4,751	(47,440)	(267)
Interest income	477	643	1,144	1,037
Interest expense	(6,234)	(3,066)	(11,398)	(6,592)
Other (expense) income, net	(748)	(399)	(190)	88
(Loss) income before income taxes	(21,741)	1,929	(57,884)	(5,734)
Provision (benefit) for income taxes	1,797	(5,270)	3,392	(3,868)
Net (loss) income	$ (23,538)	$ 7,199	$ (61,276)	$ (1,866)
Basic and diluted net (loss) income per share:
Net (loss) income per share - basic	$ (0.20)	$ 0.06	$ (0.51)	$ (0.02)
Net (loss) income per share - diluted	$ (0.20)	$ 0.06	$ (0.51)	$ (0.02)
Shares used in per share calculation - basic	119,555	117,544	119,891	117,456
Shares used in per share calculation - diluted	119,555	119,544	119,891	117,456
Product
Net revenues:
Total net revenues	$ 190,492	$ 189,567	$ 375,626	$ 367,287
Cost of revenues:
Total cost of revenues	91,387	86,487	182,778	170,030
Gross profit:
Total gross profit	99,105	103,080	192,848	197,257
Service
Net revenues:
Total net revenues	76,980	63,113	147,352	125,279
Cost of revenues:
Total cost of revenues	27,414	24,894	54,286	49,166
Gross profit:
Total gross profit	$ 49,566	$ 38,219	$ 93,066	$ 76,113

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (23,538)	$ 7,199	$ (61,276)	$ (1,866)
Other comprehensive (loss) income, net of tax:
Change in unrealized losses on available for sale securities	7
Net change in foreign currency translation adjustments	879	(28)	(12)	(525)
Other comprehensive income (loss), net of tax:	886	(28)	(12)	(525)
Total comprehensive (loss) income	$ (22,652)	$ 7,171	$ (61,288)	$ (2,391)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In-Capital	Accumulated Other Comprehensive Loss	Treasury Stock	Accumulated Deficit
Balance at Jun. 30, 2018	$ 112,732	$ 116	$ 942,397	$ (1,703)		$ (828,078)
Balance, common stock, shares at Jun. 30, 2018		116,124
Treasury stock, shares at Jun. 30, 2018					0
Treasury stock, value at Jun. 30, 2018					$ 0
Cumulative effect of adopting ASU 2016-01 at Jun. 30, 2018				(497)		497
Net income (loss)	(1,866)	$ 0	0	0	0	(1,866)
Other comprehensive loss	(525)	0	0	(525)	0	0
Issuance of common stock from equity incentive plans, net of tax	5,005	$ 3	5,002	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		2,965
Repurchase of stock	(15,000)	$ 0	0	0	$ (15,000)	0
Repurchase of stock, shares					(2,366)
Share-based compensation	15,525	0	15,525	0	$ 0	0
Balance at Dec. 31, 2018	115,871	$ 119	962,924	(2,725)		(829,447)
Balance, common stock, shares at Dec. 31, 2018		119,089
Treasury stock, shares at Dec. 31, 2018					(2,366)
Treasury stock, value at Dec. 31, 2018					$ (15,000)
Balance at Sep. 30, 2018	117,131	$ 118	956,356	(2,697)		(836,646)
Balance, common stock, shares at Sep. 30, 2018		118,270
Treasury stock, shares at Sep. 30, 2018					0
Treasury stock, value at Sep. 30, 2018					$ 0
Net income (loss)	7,199	$ 0	0	0	0	7,199
Other comprehensive loss	(28)	0	0	(28)	0	0
Issuance of common stock from equity incentive plans, net of tax	(2,131)	$ 1	(2,132)	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		819
Repurchase of stock	(15,000)	$ 0	0	0	$ (15,000)	0
Repurchase of stock, shares					(2,366)
Share-based compensation	8,700	0	8,700	0	$ 0	0
Balance at Dec. 31, 2018	115,871	$ 119	962,924	(2,725)		(829,447)
Balance, common stock, shares at Dec. 31, 2018		119,089
Treasury stock, shares at Dec. 31, 2018					(2,366)
Treasury stock, value at Dec. 31, 2018					$ (15,000)
Balance at Jun. 30, 2019	$ 115,987	$ 122	986,772	(2,473)		(853,434)
Balance, common stock, shares at Jun. 30, 2019	121,538	121,538
Treasury stock, shares at Jun. 30, 2019	(2,366)				(2,366)
Treasury stock, value at Jun. 30, 2019	$ (15,000)				$ (15,000)
Net income (loss)	(61,276)	$ 0	0	0	0	(61,276)
Other comprehensive loss	(12)	0	0	(12)	0	0
Issuance of common stock from equity incentive plans, net of tax	2,906	$ 3	2,903	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		3,078
Stock awards granted in connection with acquisition	3,530	$ 0	3,530	0	0	0
Equity forward contract	(4,821)	0	(4,821)	0	0	0
Repurchase of stock	(25,179)	0	0	0	$ (25,179)	0
Repurchase of stock, shares					(3,850)
Share-based compensation	19,792	0	19,792	0	$ 0	0
Balance at Dec. 31, 2019	$ 50,927	$ 125	1,008,176	(2,485)		(914,710)
Balance, common stock, shares at Dec. 31, 2019	124,616	124,616
Treasury stock, shares at Dec. 31, 2019	(6,216)				(6,216)
Treasury stock, value at Dec. 31, 2019	$ (40,179)				$ (40,179)
Balance at Sep. 30, 2019	93,849	$ 124	1,003,268	(3,371)		(891,172)
Balance, common stock, shares at Sep. 30, 2019		123,864
Treasury stock, shares at Sep. 30, 2019					(2,366)
Treasury stock, value at Sep. 30, 2019					$ (15,000)
Net income (loss)	(23,538)	$ 0	0	0	0	(23,538)
Other comprehensive loss	886	0	0	886	0	0
Issuance of common stock from equity incentive plans, net of tax	(1,228)	$ 1	(1,229)	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		752
Equity forward contract	(4,821)	$ 0	(4,821)	0	0	0
Repurchase of stock	(25,179)	0	0	0	$ (25,179)	0
Repurchase of stock, shares					(3,850)
Share-based compensation	10,958	0	10,958	0	$ 0	0
Balance at Dec. 31, 2019	$ 50,927	$ 125	$ 1,008,176	$ (2,485)		$ (914,710)
Balance, common stock, shares at Dec. 31, 2019	124,616	124,616
Treasury stock, shares at Dec. 31, 2019	(6,216)				(6,216)
Treasury stock, value at Dec. 31, 2019	$ (40,179)				$ (40,179)

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities:
Net loss	$ (61,276)	$ (1,866)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	14,251	13,476
Amortization of intangible assets	17,772	13,552
Reduction in carrying amount of right-of-use asset	8,477
Provision for doubtful accounts	626	861
Share-based compensation	19,792	15,525
Deferred income taxes	801	(6,516)
Non-cash restructuring and impairment charges	7,622
Unrealized/realized gain on equity investment		274
Non-cash interest expense	1,982	1,532
Other	735	(344)
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	25,751	66,568
Inventories	3,157	5,570
Prepaid expenses and other assets	(274)	(12,390)
Accounts payable	(9,070)	(40,050)
Accrued compensation and benefits	(3,036)	(3,851)
Operating lease liabilities	(9,051)
Deferred revenue	6,181	11,568
Other current and long-term liabilities	(2,529)	(2,298)
Net cash provided by operating activities	21,911	61,611
Cash flows from investing activities:
Capital expenditures	(9,438)	(11,140)
Business acquisitions, net of cash acquired	(219,458)
Maturities and sales of investments	45,249	727
Net cash used in investing activities	(183,647)	(10,413)
Cash flows from financing activities:
Borrowings under Term Loan	199,500
Repayments of debt	(24,950)	(14,933)
Loan fees on borrowings	(10,514)	(545)
Equity forward contract	(4,821)
Repurchase of common stock	(25,179)	(15,000)
Proceeds from issuance of common stock, net of tax withholding	2,906	5,005
Payment of contingent consideration obligations	(2,000)	(3,856)
Deferred payments on an acquisition	(2,206)	(2,000)
Net cash provided by (used in) financing activities	132,736	(31,329)
Foreign currency effect on cash	(193)	(365)
Net (decrease) increase in cash	(29,193)	19,504
Cash at beginning of period	169,607	121,139
Cash at end of period	$ 140,414	$ 140,643

Description of Business and Basis of Presentation

6 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Description of Business and Basis of Presentation

1.	Description of Business and Basis of Presentation

Extreme Networks, Inc., together with its subsidiaries (collectively referred to as “Extreme” or the “Company”), is a leader in providing software-driven networking solutions for enterprise customers. The Company conducts its sales and marketing activities on a worldwide basis through distributors, resellers and the Company’s field sales organization. Extreme was incorporated in California in 1996 and reincorporated in Delaware in 1999.

The unaudited condensed consolidated financial statements of Extreme included herein have been prepared under the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. generally accepted accounting principles have been condensed or omitted under such rules and regulations. The condensed consolidated balance sheet at June 30, 2019 was derived from audited financial statements as of that date but does not include all disclosures required by generally accepted accounting principles for complete financial statements. These interim financial statements and notes should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019.

The unaudited condensed consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the results of operations and cash flows for the interim periods presented and the financial condition of Extreme at December 31, 2019. The results of operations for the three and six months ended December 31, 2019 are not necessarily indicative of the results that may be expected for fiscal 2020 or any future periods.

Fiscal Year

The Company uses a fiscal calendar year ending on June 30. All references herein to “fiscal 2020” or “2020” represent the fiscal year ending June 30, 2020. All references herein to “fiscal 2019” or “2019” represent the fiscal year ended June 30, 2019.

Principles of Consolidation

The consolidated financial statements include the accounts of Extreme and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

The Company predominantly uses the United States Dollar as its functional currency. The functional currency for certain of its foreign subsidiaries is the local currency. For those subsidiaries that operate in a local functional currency environment, all assets and liabilities are translated to United States Dollars at current month end rates of exchange; and revenue and expenses are translated using the monthly average rate.

Accounting Estimates

The preparation of financial statements and related disclosures in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates.

Summary of Significant Accounting Policies

6 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2.	Summary of Significant Accounting Policies

For a description of significant accounting policies, see Note 2, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2019. There have been no material changes to the Company’s significant accounting policies since the filing of the Annual Report on Form 10-K, except for the adoption of the new lease guidance and related policies as discussed within these financial statements.

Recently Adopted Accounting Pronouncements

In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2016-02, Leases (Topic 842), which requires the identification of arrangements that should be accounted for as leases by lessees and lessors, and key disclosure information about leasing arrangements. In general, for lease arrangements exceeding a twelve-month term, these arrangements are recognized as assets and liabilities on the balance sheet of the lessee. Under Topic 842, a right-of-use asset (“ROU”) and lease obligation are recorded for all leases, whether operating or financing, while the statement of operations will reflect lease expense for operating leases and amortization/interest expense for financing leases. The balance sheet amount recorded for existing leases at the date of adoption of Topic 842 is calculated using the applicable incremental borrowing rate at the date of adoption. Topic 842 also requires lessors to classify leases as a sales-type, direct financing or operating lease. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. Substantially all of the Company’s leases continue to be classified as operating leases. In addition, Topic 842 was subsequently amended by ASU No 2018-10, Codification Improvements; ASU 2018-11, Targeted Improvements; ASU 2018-20 Narrow Scope Improvements; and ASU 2019-01 Codification Improvements.

The Company adopted the new standards beginning with its fiscal year 2020. Topic 842 is applied on the modified retrospective method, applying the new standard to all leases existing as of July 1, 2019. The Company adopted the new standard using the effective date of July 1, 2019 as the date of initial application. Consequently, financial information has not been updated, and disclosures required under the new standard will not be provided for dates and periods prior to July 1, 2019.

The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients” which permitted the Company not to reassess under the new standard its prior conclusions about lease identification, lease classification, and initial direct costs. The new standard also provided practical expedients for ongoing accounting. The Company also elected the short-term lease recognition exemption for all leases that qualified. For those leases that qualified, existing short-term leases at the transition date and those entered into subsequent to the transition date, the Company did not recognize right-of-use assets or lease liabilities. In addition, the Company elected the practical expedient not to separate lease and non-lease components for leases except for the logistic services asset class and certain revenue subscription contracts where the Company leases its hardware products and provides maintenance and support over a service period which is recognized under ASC Topic 606. See Note 9, Leases, for additional information regarding the Company’s leases.

On July 1, 2019, the Company recognized ROU assets of approximately $64.6 million and corresponding lease liabilities of $79.5 million on the condensed consolidated balance sheets, which was based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which is intended to allow companies to better align risk management activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results by expanding and refining hedge accounting for both nonfinancial and financial risk components and aligning the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. In addition, in October 2018, the FASB issued ASU 2018-16, Derivatives and Hedging (Topic 815), which amends Topic 815 to add the overnight index swap (OIS) rate based on the secured overnight financing rate as a fifth U.S. benchmark interest rate. In addition, Topic 815 was subsequently amended by ASU 2019-04, Codification Improvements. These standards are effective for interim and annual reporting periods beginning after December 15, 2018. This guidance was effective for the Company beginning with its fiscal year 2020. It did not have a material impact on the Company’s financial statements upon adoption.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), this standard that allows the reclassification from AOCI to retained earnings for stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act ("Tax Reform Act"). The amount of the reclassification is the effect of the change in the U.S. federal corporate income tax rate on the gross deferred tax amounts and related valuation allowances related to items remaining in AOCI. This standard is effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. The new standard is to be applied either in the period of adoption or retrospectively to each period (or periods) in which the effects of the change in the income tax rate in the Tax Reform Act are recognized. The standard was adopted on July 1, 2019 and did not have a material impact on the Company’s financial statements upon adoption.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326). The standard changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. It replaces the existing incurred loss impairment model with an expected loss model. It also requires credit losses related to available-for-sale debt securities to be recognized as an allowance for credit losses rather than as a reduction to the carrying value of the securities. ASU 2016-13 is effective for fiscal years beginning after December 15, 2020. The Company is currently evaluating the impact of this new standard on its condensed consolidated financial statements and related disclosures. The Company currently plans to adopt this standard beginning with its fiscal year 2021, beginning on July 1, 2020.

In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350), which removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. An impairment charge will now be the amount by which a reporting unit’s carrying value exceeds the fair value, not to exceed the carrying amount of goodwill. This standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted The Company does not expect the adoption to have a material impact on the condensed consolidated financial statements. The Company currently plans to adopt this standard beginning with its fiscal year 2021, beginning on July 1, 2020.

In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820), which removes, modifies and adds various disclosure requirements around the topic in order to clarify and improve the cost-benefit nature of disclosures. For example, disclosures around transfers between fair value hierarchy levels will be removed and further detail around changes in unrealized gains and losses for the period and unobservable inputs determining Level 3 fair value measurements will be added. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. This guidance is effective for the Company beginning with its fiscal year 2021, beginning on July 1, 2020.

In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a service contract hosting arrangement with those of developing or obtaining internal-use software. This standard is effective for interim and annual reporting periods beginning after December 15, 2019, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. This guidance is effective for the Company beginning with its fiscal year 2021, beginning on July 1, 2020.

In December 2019, the FASB issued ASU 2019-12, Income taxes – Simplifying the Accounting for Income taxes (Topic 740), which reduces the complexity of accounting for income taxes including the removal of certain exceptions to the general principles of ASC 740, Income taxes, and simplification in several other areas such as accounting for franchise tax (or similar tax) that is partially based on income. This standard is effective for interim and annual reporting periods beginning after December 15, 2020, and early adoption is permitted. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements. This guidance is effective for the Company beginning with its fiscal year 2022, beginning on July 1, 2021.

Revenues

6 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Revenues

The Company accounts for revenue in accordance with ASU 2014-09, Revenue from Contracts from Customers (Topic 606), which the Company adopted on July 1, 2017, using the retrospective method. The Company derives the majority of its revenue from sales of its networking equipment, with the remaining revenue generated from software delivered as a service (“SaaS”) and service fees primarily relating to maintenance contracts with additional revenues from professional services, and training for its products. The Company sells its products and maintenance contracts direct to customers and to partners in two distribution channels, or tiers. The first tier consists of a limited number of independent distributors that stock its products and sell primarily to resellers. The second tier of the distribution channel consists of non-stocking distributors and value-added resellers that sell directly to end-users. Products and services may be sold separately or in bundled packages.

Revenue Recognition

Performance Obligations. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account in Topic 606. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach.

The Company’s performance obligations are satisfied at a point in time or over time as work progresses. Substantially all of the Company’s product sales revenues are recognized at a point in time. Substantially all of the Company’s service and SaaS revenue is recognized over time. For revenue recognized over time, the Company uses an input measure, days elapsed, to measure progress.

On December 31, 2019, the Company had $277.8 million of remaining performance obligations, which primarily comprised of deferred maintenance and SaaS revenue. The Company expects to recognize approximately 42 percent of its deferred revenue as revenue in fiscal 2020, an additional 34 percent in fiscal 2021 and 24 percent of the balance thereafter.

Contract Balances. The timing of revenue recognition, billings and cash collections results in billed accounts receivable and deferred revenue in the condensed consolidated balance sheets. Services provided under renewable support arrangements of the Company are billed in accordance with agreed-upon contractual terms, which are either billed fully at the inception of contract or at periodic intervals (e.g., quarterly or annually). The Company sometimes receives payments from its customers in advance of services being provided, resulting in deferred revenues. These liabilities are reported on the condensed consolidated balance sheets on a contract-by-contract basis at the end of each reporting period.

Revenue recognized for the three months ended December 31, 2019 and 2018 that was included in the deferred revenue balance at the beginning of each period was $67.2 million and $59.9 million, respectively. Revenue recognized for the six months ended December 31, 2019 and 2018 that was included in the deferred revenue balance at the beginning of each period was $90.9 million and $88.8 million, respectively.

Contract Costs. The Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that the Company otherwise would have recognized is one year or less. Management expects that commission fees paid to sales representatives as a result of obtaining service contracts and contract renewals are recoverable and therefore the Company’s condensed consolidated balance sheets included capitalized balances in the amount of $8.3 million and $6.5 million at December 31, 2019 and June 30, 2019, respectively. Capitalized commission fees are amortized on a straight-line basis over the average period of service contracts of approximately three years, and are included in “Sales and marketing” in the accompanying condensed consolidated statements of operations. Amortization recognized during the three months ended December 31, 2019 and 2018, was $1.5 million and $0.7 million, respectively. Amortization recognized during the six months ended December 31, 2019 and 2018 was $3.0 million and $1.4 million, respectively. There was no impairment loss in relation to the costs capitalized.

Estimated Variable Consideration. There were no material changes in the current period to the estimated variable consideration for performance obligations which were satisfied or partially satisfied during previous periods.

Revenue by Category

The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the customer’s ship-to locations (in thousands):

	Three Months Ended
	December 31, 2019						December 31, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	60,111	$	61,622	$	121,733	$	44,141	$	55,326	$	99,467
Other		8,204		5,563		13,767		8,269		5,380		13,649
Total Americas		68,315		67,185		135,500		52,410		60,706		113,116
EMEA		64,717		44,257		108,974		79,876		32,773		112,649
APAC		6,007		16,991		22,998		4,767		22,148		26,915
Total net revenues	$	139,039	$	128,433	$	267,472	$	137,053	$	115,627	$	252,680

	Six Months Ended
	December 31, 2019						December 31, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	130,089	$	123,967	$	254,056	$	100,883	$	115,262	$	216,145
Other		12,219		10,562		22,781		12,762		10,904		23,666
Total Americas		142,308		134,529		276,837		113,645		126,166		239,811
EMEA		123,846		73,891		197,737		141,207		63,611		204,818
APAC:		15,120		33,284		48,404		7,116		40,821		47,937
Total net revenues	$	281,274	$	241,704	$	522,978	$	261,968	$	230,598	$	492,566

Included in the above amounts are $2.3 million and $4.7 million of leasing revenue for the three and six months ended December 31, 2019, respectively. Included in the above amounts are $3.2 million and $5.9 million of leasing revenue for the three and six months ended December 31, 2018, respectively.

Customer Concentrations

The Company performs ongoing credit evaluations of its customers and generally does not require collateral in exchange for credit.

The following table sets forth major customers accounting for 10% or more of the Company’s net revenues:

	Three Months Ended		Six Months Ended
	December 31, 2019	December 31, 2018	December 31, 2019	December 31, 2018
Tech Data Corporation	14%	22%	15%	19%
Jenne Corporation	18%	12%	16%	12%
Westcon Group Inc.	15%	15%	13%	14%

The following table sets forth major customers accounting for 10% or more of the Company’s accounts receivable balance:


	December 31, 2019			June 30, 2019
Tech Data Corporation		20	%		12	%
Jenne Corporation		23	%		35	%

Business Combination

6 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combination

4.	Business Combination

Aerohive Acquisition

On August 9, 2019 (the “Acquisition Date”) the Company consummated its acquisition (the “Acquisition”) of all of the outstanding common stock of Aerohive Networks, Inc. (“Aerohive”) pursuant to that certain Agreement and Plan of Merger (the “Merger Agreement”) entered into as of June 26, 2019. Under the terms of the Acquisition, the preliminary net consideration paid by Extreme to Aerohive stockholders was $267.1 million.

The Acquisition was accounted for using the acquisition method of accounting whereby the acquired assets and liabilities of Aerohive have been recorded at their respective fair values and added to those of the Company including an amount for goodwill calculated as the difference between the acquisition consideration and the fair value of the identifiable net assets. The purchase price was preliminarily allocated to tangible and identifiable intangible assets acquired and liabilities assumed. The final purchase price allocation is pending the finalization of valuations including intangible assets, goodwill and income tax assets and liabilities that are not able to be finalized yet, which may result in an adjustment to the preliminary purchase price allocation.

The estimated fair values were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists. The fair value of working capital related items, such as other current assets and accrued liabilities, approximated their book values at the Acquisition Date. Inventories were valued at fair value using the net realizable value approach. The fair value of the acquired deferred revenue was estimated using the cost build-up approach. The cost build-up approach determines fair value using estimates of the costs required to provide the contracted deliverables plus an assumed profit. The total costs including the assumed profit were adjusted to present value using a discount rate considered appropriate. The resulting fair value approximates the amount the Company would be required to pay to a third party to assume the obligation. Valuations of the intangible assets were valued using income approaches based on management projections, which the Company considers to be Level 3 inputs. The Company also continues to analyze the tax implications of the Acquisition and the intangible assets which may ultimately

impact the overall level of goodwill associated with the acquisition. Results of operations of Aerohive have been included in the operations of the Company beginning with the Acquisition Date.

The components of aggregate estimated purchase consideration are as follows (in thousands):

Estimated purchase consideration	August 9, 2019
Cash paid to acquire outstanding shares	$	263,616
Replacement of stock-based awards		3,530
Aggregate estimated purchase consideration	$	267,146

The preliminary purchase price allocation is set forth in the table below and reflects estimated fair values (in thousands).

	Preliminary Allocation as of August 9, 2019			Adjustments				Allocation as of December 31, 2019
Cash and cash equivalents	$	44,158		$	—			$	44,158
Short-term investments		45,148			—				45,148
Accounts receivable, net		11,753			—				11,753
Inventories		16,698			2,534		a		19,232
Prepaid expenses and other current assets		3,980			(56	)	b		3,924
Property and equipment		2,185			179		c		2,364
Operating lease right-of-use assets		6,336			—				6,336
Other assets		2,195			—				2,195
Debt		(20,000	)		—				(20,000	)
Accounts payable		(9,737	)		—				(9,737	)
Accrued compensation and benefits		(7,129	)		—				(7,129	)
Accrued warranty		(570	)		—				(570	)
Other accrued liabilities		(1,960	)		—				(1,960	)
Operating lease liabilities		(4,752	)		—				(4,752	)
Deferred revenue		(68,415	)		—				(68,415	)
Other liabilities		(408	)		—				(408	)
Net tangible assets		19,482			2,657				22,139

Identifiable intangible assets		53,400			—				53,400
Goodwill		194,264			(2,657	)	a,b,c		191,607
Total intangible assets acquired		247,664			(2,657	)			245,007

Total net assets acquired	$	267,146		$	-			$	267,146

The changes during the period in the table above include: a) adjustment of the fair value of inventories acquired, b) write-off of an asset with no future economic value as of the Acquisition Date, c) adjustment to the value of property and equipment as of the Acquisition Date at an international location.

The following table presents details of the identifiable intangible assets acquired as part of the Acquisition (dollars in thousands):

Intangible Assets	Estimated Useful Life (in years)		Amount
Developed technology		4	$	40,000
Backlog		1		400
Customer relationships		7		11,400
Trade names		1		1,600
Total identifiable intangible assets			$	53,400

The amortization for the developed technology and backlog is recorded in “Cost of revenues” for product and the amortization for the remaining intangibles is recorded in “Amortization of intangibles” in the accompanying condensed consolidated statements of operations. The goodwill recognized is attributable primarily to expected synergies and the assembled workforce of Aerohive. The Company will not be entitled to amortization of the goodwill and intangible assets for tax purposes as this acquisition is a nontaxable stock acquisition.

The results of operations of Aerohive are included in the accompanying condensed consolidated results of operations beginning August 9, 2019. The Aerohive revenue for the three and six months ended December 31, 2019 was $41.9 million and $67.3 million, respectively, and was incorporated into the revenue of the Company. Certain associated expenses of Aerohive were incorporated with the results of operations of the Company and, therefore, stand-alone operating results are not available.

In the three and six months ended December 31, 2019, the Company incurred acquisition and integration related expenses of $9.0 million and $24.9 million, respectively, associated with the Acquisition. In the quarter ended September 30, 2019, this included a $6.8 million compensation charge for certain Aerohive Executive stock awards which were accelerated due to change-in-control and termination provisions included in the Executives’ employment contracts. Other acquisition and integration costs consist primarily of professional fees for financial and legal advisory services and severance charges for terminated Aerohive employees. Such acquisition-related costs were expensed as incurred and are included in “Acquisition and integration costs” in the accompanying condensed consolidated statements of operations.

Pro forma financial information

The following unaudited pro forma results of operations are presented as though the Acquisition had occurred as of July 1, 2018, the beginning of fiscal 2019, after giving effect to purchase accounting adjustments relating to inventories, deferred revenue, depreciation and amortization of intangibles, acquisition and integration costs, interest income and expense and related tax effects.

The pro forma results of operations are not necessarily indicative of the combined results that would have occurred had the acquisition been consummated as of the beginning of fiscal 2019, nor are they necessarily indicative of future operating results. The unaudited pro forma results do not include the impact of synergies, nor any potential impacts on current or future market conditions which could alter the unaudited pro forma results.

The unaudited pro forma financial information for the three and six months ended December 31, 2019 combines the historical results for Extreme for the period, which include the results of Aerohive subsequent to the Acquisition Date, and Aerohive’s historical results up to the Acquisition Date.

Pro forma results of operations for the three and six months ended December 31, 2018 combines the historical results of operations for Extreme and for Aerohive.

The following table summarizes the unaudited pro forma financial information (in thousands, except per share amounts):

	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Net revenues	$	268,367		$	288,873		$	536,045		$	568,107
Net loss	$	(5,031	)	$	(20,694	)	$	(28,847	)	$	(59,779	)
Net loss per share - basic and diluted	$	(0.04	)	$	(0.18	)	$	(0.24	)	$	(0.51	)
Shares used in per share calculation - basic and diluted		119,555			117,544			119,891			117,456

Balance Sheet Accounts

6 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Accounts

5.	Balance Sheet Accounts

Inventories

The Company values its inventory at lower of cost or net realizable value. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company adjusts the carrying value of its inventory when conditions exist that suggest that inventory may be in excess of anticipated demand or is obsolete based upon assumptions about future demand. At the point of the loss recognition, a new, lower-cost basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or increase in that newly established cost basis. Any written down or obsolete inventory subsequently sold has not had a material impact on gross margin for any of the periods presented.

Inventories consist of the following (in thousands):

	December 31, 2019		June 30, 2019
Finished goods	$	62,116	$	49,492
Raw materials		17,548		14,097
Total Inventories	$	79,664	$	63,589

Property and Equipment, Net

Property and equipment consist of the following (in thousands):

	December 31, 2019			June 30, 2019
Computers and equipment	$	74,694		$	72,309
Purchased software		32,199			29,126
Office equipment, furniture and fixtures		11,453			10,815
Leasehold improvements		52,499			51,245
Total property and equipment		170,845			163,495
Less: accumulated depreciation and amortization		(102,907	)		(89,941	)
Property and equipment, net	$	67,938		$	73,554

Deferred Revenue

Deferred revenue represents amounts for (i) deferred maintenance and support revenue (ii) deferred SaaS revenue, and (iii) other deferred revenue including professional services and training when the revenue recognition criteria have not been met.

Guarantees and Product Warranties

The majority of the Company’s hardware products are shipped with either a one-year warranty or a limited lifetime warranty, and software products receive a 90-day warranty for media only. Upon shipment of products to its customers, the Company estimates expenses for the cost to repair or replace products that may be returned under warranty and accrues a liability in cost of product revenue for this amount. The determination of the Company’s warranty requirements is based on actual historical experience with the product or product family, estimates of repair and replacement costs and any product warranty problems that are identified after shipment. The Company estimates and adjusts these accruals at each balance sheet date in accordance with changes in these factors.

The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2019 and 2018 (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Balance beginning of period	$	15,988		$	12,601		$	14,779		$	12,807
Warranties assumed due to acquisitions		—			—			570			—
New warranties issued		5,539			4,145			11,461			7,867
Warranty expenditures		(5,318	)		(3,938	)		(10,601	)		(7,866	)
Balance end of period	$	16,209		$	12,808		$	16,209		$	12,808

To facilitate sales of its products in the normal course of business, the Company indemnifies its resellers and end-user customers with respect to certain matters. The Company has agreed to hold the customer harmless against losses arising from a breach of intellectual property infringement or other. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. It is not possible to estimate the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. Historically, payments made by the Company under these agreements have not had a material impact on its operating results or financial position.

Other long-term liabilities

The following is a summary of long-term liabilities (in thousands):

	December 31, 2019		June 30, 2019
Acquisition related deferred payments, less current portion	$	7,741	$	9,604
Contingent consideration obligations, less current portion		930		2,688
Other contractual obligations, less current portion		22,529		26,261
Other		3,039		15,597
Total other long-term liabilities	$	34,239	$	54,150

Concentrations

The Company may be subject to concentration of credit risk as a result of certain financial instruments consisting of accounts receivable and short-term investments. The Company does not invest an amount exceeding 10% of its combined cash or cash equivalents in the securities of any one obligor or maker, except for obligations of the United States government, obligations of United States government agencies and money market accounts.

Fair Value Measurements

6 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

6.	Fair Value Measurements

A three-tier fair value hierarchy is utilized to prioritize the inputs used in measuring fair value. The hierarchy gives the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels are defined as follows:

•

Level 1 Inputs - unadjusted quoted prices in active markets for identical assets or liabilities;

•

Level 2 Inputs - quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; and

•

Level 3 Inputs - unobservable inputs reflecting the Company’s own assumptions in measuring the asset or liability at fair value.

The Company had one fair value item at December 31, 2019 and June 30, 2019, a level 3 acquisition-related contingent consideration obligation $4.2 million and $6.3 million, respectively.

Level 1 and 2 assets and liabilities:

The Company has no Level 1 or Level 2 assets or liabilities at December 31, 2019 or June 30, 2019. There were no transfers of assets or liabilities between levels for the periods presented. The fair value of the borrowings under the 2019 Credit Agreement is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2. Due to the recent establishment of the Credit Agreement, the fair value approximates the face amount of the Company’s indebtedness of $375.3 million and $180.5 million as of December 31, 2019, and June 30, 2019, respectively.

Level 3 assets and liabilities:

At December 31, 2019 and June 30, 2019, the Company reflected one liability measured at fair value of $4.2 million and $6.3 million, respectively, for contingent consideration related to a certain acquisition completed in fiscal 2018. The fair value measurement of the contingent consideration obligation is determined using Level 3 inputs. These fair value measurements represent Level 3 measurements as they are based on significant inputs not observable in the market. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, changes in assumptions could have a material impact on the amount of contingent consideration expense the Company records in any given period. Changes in the value of the contingent consideration obligations is recorded in general and administrative expenses in the accompanying condensed consolidated statements of operations.

The change in the acquisition-related contingent consideration obligations is as follows (in thousands):

	Six Months Ended
	December 31, 2019
Beginning balance		6,298
Payments		(2,206	)
Accretion on discount		60
Ending balance	$	4,152

There were no transfers of assets or liabilities between Level 2 and Level 3 during the three and six months ended December 31, 2019, or 2018. There were no impairments recorded for the three and six months ended December 31, 2019, or 2018.

The Company determines the basis of the cost of a security sold or the amount reclassified out of accumulated other comprehensive income into earnings using the specific identification method. Realized gains or losses recognized on the sale of investment securities were not significant for the three and six months ended December 31, 2019 or for the three and six months ended December 31, 2018.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7.	Goodwill and Intangible Assets

The following table reflects the changes in the carrying amount of goodwill (in thousands):

	December 31, 2019
Balance as of June 30, 2019	$	138,577
Additions due to acquisition (see Note 4)		191,607
Balance at end of period	$	330,184

The following tables summarize the components of gross and net intangible asset balances (dollars in thousands):

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
December 31, 2019
Developed technology	2.8 years	$	157,000	$	90,673	$	66,327
Customer relationships	4.9 years		63,039		46,965		16,074
Backlog	— years		400		400		—
Trade names	1.6 years		10,700		7,034		3,666
License agreements	5.5 years		2,445		1,796		649
Other intangibles	0.1 years		1,382		1,358		24
Total intangibles, net		$	234,966	$	148,226	$	86,740

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2019
Developed technology	2.4 years	$	117,000	$	77,449	$	39,551
Customer relationships	2.0 years		51,639		44,410		7,229
Trade names	2.4 years		9,100		5,647		3,453
License agreements	5.4 years		2,445		1,661		784
Other intangibles	0.6 years		1,382		1,287		95
Total intangibles, net		$	181,566	$	130,454	$	51,112

The amortization expense of intangibles for the periods presented is summarized below (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Amortization in “Cost of revenues: Product”	$	6,970	$	4,904	$	13,465	$	9,836
Amortization of intangibles in "Operations"		2,377		1,575		4,307		3,716
Total amortization	$	9,347	$	6,479	$	17,772	$	13,552

The amortization expense that is recognized in “Cost of revenues: Product” is comprised of amortization for developed technology, license agreements and other intangibles.

Debt

6 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Debt

The Company’s debt is comprised of the following (in thousands):

	December 31, 2019			June 30, 2019
Current portion of long-term debt:
Term Loan	$	19,000		$	9,500
Less: unamortized debt issuance costs		(2,186	)		(489	)
Current portion of long-term debt	$	16,814		$	9,011

Long-term debt, less current portion:
Term Loan	$	356,250		$	171,000
Less: unamortized debt issuance costs		(7,334	)		(1,261	)
Total long-term debt, less current portion		348,916			169,739
Total debt	$	365,730		$	178,750

In connection with the Acquisition as discussed in Note 4, on August 9, 2019, the Company entered into an Amended and Restated Credit Agreement (the “2019 Credit Agreement”), by and among the Company, as borrower, several banks and other financial institutions as Lenders, BMO Harris Bank N.A., as an issuing lender and swingline lender, Silicon Valley Bank, as an Issuing Lender, and Bank of Montreal, as administrative agent and collateral agent for the Lenders.

The 2019 Credit Agreement provides for a 5-year first lien term loan facility in an aggregate principal amount of $380 million (the “2019 Term Loan”) and a 5-year revolving loan facility in an aggregate principal amount of $75 million (the “2019 Revolving Facility”). In addition, the Company may request incremental term loans and/or incremental revolving loan commitments in an aggregate amount not to exceed the sum of $100 million plus an unlimited amount that is subject to pro forma compliance with certain financial tests. On August 9, 2019, the Company used the proceeds to partially fund the Acquisition and for working capital and general corporate purposes.

At the Company’s election, the initial term loan (the “Initial Term Loan”) under the 2019 Credit Agreement may be made as either base rate loans or Eurodollar loans. The applicable margin for base rate loans ranges from 0.25% to 2.50% per annum and the applicable margin for Eurodollar loans ranges from 1.25% to 3.50%, in each case based on Extreme’s consolidated leverage ratio. All Eurodollar loans are subject to a Base Rate of 0.00%. In addition, the Company is required to pay a commitment fee of between 0.25% and 0.40% quarterly (currently 0.35%) on the unused portion of the 2019 Revolving Facility, also based on the Company’s consolidated leverage ratio. Principal installments are payable on the new term loan in varying percentages quarterly starting December 31, 2019 and to the extent not previously paid, all outstanding balances are to be paid at maturity. The 2019 Credit Agreement is secured by substantially all of the Company’s assets.

The 2019 Credit Agreement requires the Company to maintain certain minimum financial ratios at the end of each fiscal quarter. The 2019 Credit Agreement also includes covenants and restrictions that limit, among other things, the Company’s ability to incur additional indebtedness, create liens upon any of its property, merge, consolidate or sell all or substantially all of its assets. The 2019 Credit Agreement also includes customary events of default which may result in acceleration of the outstanding balance.

Financing costs incurred in connection with obtaining long-term financing are deferred and amortized over the term of the related indebtedness or credit agreement. The Company incurred $10.5 million of deferred financing costs in conjunction which this modification of the debt and continues to amortize $1.6 million of debt issuance costs as of August 9, 2019 that were associated with the previous facility. The interest rate as of December 31, 2019 was 5.0%.

Amortization of deferred financing costs included in “Interest expense” in the accompanying condensed consolidated statements of operations totaled $0.7 million and $0.2 million for the three months ended December 31, 2019 and 2018, and totaled $1.1 million and $0.3 million for the six months ended December 31, 2019 and 2018, respectively.

The Company had $60.3 million of availability under the 2019 Revolving Facility as of December 31, 2019. The Company had $7.7 million of outstanding letters of credit as of December 31, 2019.

Leases

6 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

Lessee Considerations

The Company lease certain facilities, equipment, and vehicles under operating leases that expire on various dates through fiscal 2028. Its leases generally have terms that range from one year to nine years for its facilities, one year to five years for equipment, and one year to five years for vehicles. Some of its leases contain renewal options, escalation clauses, rent concessions, and leasehold improvement incentives.

The Company determines if an arrangement is a lease at inception. The Company has elected not to recognize a lease liability or right-of-use (ROU) asset for short-term leases (leases with a term of twelve months or less). Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The interest rate used to determine the present value of future payments is the Company’s incremental borrowing rate because the rate implicit in the leases are not readily determinable. The Company’s incremental borrowing rate is a hypothetical rate for collateralized borrowings based on the current economic environment, credit history, credit rating, value of leases, currency in which the lease obligation is satisfied, rate sensitivity, lease term and materiality. Operating lease assets also included a reclassification for previous asset impairments and associated restructuring liabilities, deferred rent, lease incentives and initial direct costs which reduced the operating lease ROU assets as of July 1, 2019.

Some operating leases contain lease and non-lease components. Certain lease contracts include fixed payments for services, such as operations, maintenance, or other services. The Company has elected to account for fixed lease and non-lease components as a single lease component except for the logistic service asset class. Cash payments made for non-lease costs and variable lease costs are not included in the measurement of operating lease assets and liabilities and are recognized in the Company’s condensed consolidated statements of operations as incurred. Some lease terms include one or more options to renew. The Company does not assume renewals in its determination of the lease term unless it is reasonably certain that it will exercise that option. The Company’s lease agreements do not contain any residual value guarantees.

Activity and other information relating to operating leases is as follows (in thousands except for lease term and discount rate):

	Three Months Ended December 31, 2019		Six Months Ended December 31, 2019
Operating lease costs	$	5,002	$	10,003
Cash paid for amounts included in the measurement of operating liabilities		5,346		10,831
ROU assets obtained for new lease obligations		1,357		1,422
ROU assets obtained from Aerohive business combination		-		6,336

	December 31, 2019
Weighted average remaining lease term (in years)		4.7
Weighted Average Discount Rate		4.5	%

Short-term lease expense for the three and six months ended December 31, 2019 was not material.

The maturities of the Company’s operating lease liabilities as of December 31, 2019 by fiscal year are as follows:

	Operating Leases (in thousands)
2020 (remaining six months)	$	10,534
2021		20,298
2022		19,486
2023		15,767
2024		6,370
Thereafter		12,505
Total future minimum lease payments		84,960
Less amount representing interest		8,441
Total operating lease liabilities	$	76,519
Operating lease liabilities, current	$	17,921
Operating lease liabilities, non-current	$	58,598

As of June 30, 2019, the minimum future rentals on non-cancellable operating leases by fiscal year, based on the previous accounting standard, were as follows:

	Operating Leases (in thousands)
2020	$	22,733
2021		21,174
2022		20,680
2023		17,828
2024		5,976
Thereafter		16,287
Total lease payments	$	104,678

Sublease Considerations

The Company currently is a sublessor on several operating facility subleases that expire on various dates through fiscal 2023. The subleases have terms from 5 to 6 years and extend through the term of the underlying leases. The subleases do not include renewal options, purchase options, or termination rights. These operating subleases include only lease components. Included in lease expense, the Company had $0.6 million and $1.2 million of sublease income for the three and six months ended December 31, 2019, respectively.

Lessor Considerations

Although most of the Company’s revenue from its hardware business comes from sales of hardware, the Company also sells subscription contracts which contain both operating lease and non-lease components. These leases range in duration generally up to three years with payments generally collected in equal quarterly installments and include 60-day termination rights by either party. For the three months ended December 31, 2019 and 2018, $2.3 million and $3.2 million are included in product revenue in the financial statements, respectively. For the six months ended December 31, 2019 and 2018, $4.7 million and $5.9 million are included in product revenue in the financial statements, respectively. There were no changes to the accounting treatment of these transactions from the adoption of ASC 842.

Commitments and Contingencies

6 Months Ended

Dec. 31, 2019

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

10.	Commitments and Contingencies

Purchase Commitments

The Company currently has arrangements with contract manufacturers and suppliers for the manufacture of its products. Those arrangements allow the contract manufactures to procure long lead-time component inventory based upon a rolling production forecast provided by the Company. The Company is obligated to purchase long lead-time component inventory that its contract manufacturer procures in accordance with the forecast, unless the Company gives notice of order cancellation outside of applicable component lead-times. As of December 31, 2019, the Company had commitments to purchase $47.7 million of inventory and other services.

Legal Proceedings

The Company may from time to time be party to litigation arising in the course of its business, including, without limitation, allegations relating to commercial transactions, business relationships or intellectual property rights. Such claims, even if not meritorious, could result in the expenditure of significant financial and managerial resources. Litigation in general, and intellectual property in particular, can be expensive and disruptive to normal business operations. Moreover, the results of legal proceedings are difficult to predict.

In accordance with applicable accounting guidance, the Company records accruals for certain of its outstanding legal proceedings, investigations or claims when it is probable that a liability will be incurred and the amount of loss can be reasonably estimated. The Company evaluates, at least on a quarterly basis, developments in legal proceedings, investigations or claims that could affect the amount of any accrual, as well as any developments that would result in a loss contingency to become both probable and reasonably estimable. When a loss contingency is not both probable and reasonably estimable, the Company does not record a loss accrual. However, if the loss (or an additional loss in excess of any prior accrual) is at least a reasonable possibility and material, then the Company would disclose an estimate of the possible loss or range of loss, if such estimate can be made, or disclose that an estimate cannot be made. The assessment whether a loss is probable or a reasonable possibility, and whether the loss or a range of loss is estimable, involves a series of complex judgments about future events. Even if a loss is reasonably possible, the Company may not be able to estimate a range of possible loss, particularly where (i) the damages sought are substantial or indeterminate, (ii) the proceedings are in the early stages, or (iii) the matters involve novel or unsettled legal theories or a large number of parties. In such cases, there is considerable uncertainty regarding the ultimate resolution of such matters, including the amount of any possible loss,

fine or penalty. Accordingly, for current proceedings, except as noted below, the Company is currently unable to estimate any reasonably possible loss or range of possible loss. However, an adverse resolution of one or more of such matters could have a material adverse effect on the Company's results of operations in a particular quarter or fiscal year.

All currency conversions in this Legal Proceedings section are as of December 31, 2019.

Brazilian Tax Assessment Matter

On May 28, 2007, the Public Treasury Department of the State of Sao Paolo, Brazil (the “Tax Authority”) assessed the Company’s Brazilian subsidiary, Enterasys Networks do Brasil Ltda. (“Enterasys Brasil”), based on an alleged underpayment of taxes due to denial of presumed tax credits from 2003 to 2004 (the “ICMS Tax Assessment”). The value of the disallowed presumed tax credits is BRL 3.4 million (USD $0.8 million), excluding interest and penalties.

On October 1, 2014, Enterasys Brasil filed a lawsuit in the 11th Public Treasury Court of the Sao Paolo State Court of Justice (Judiciary District of Sao Paolo) to overturn or reduce the ICMS Tax Assessment. A decision in 2017 would require Enterasys Brasil to pay a total of BRL 20.2 million (USD $5.0 million), which includes penalties, court costs, attorneys’ fees, and accrued interest as of December 1, 2019. Enterasys Brasil recorded an accrual of BRL 9.4 million (USD $2.3 million) as of the date the Company acquired Enterasys Networks. The Company has appealed the lower court’s decision.

On December 12, 2019, Enterasys Brasil participated in an amnesty program called the Programa Especial de Parcelamento offered by the Brazilian government to reach a resolution to this issue. On December 18, 2019, Enterasys Brasil paid BRL 8.692 million (USD $2.2 million) to settle the ICMS Tax Assessment. The Company will dismiss the pending appellate suit and has accrued for payment of the government’s legal fees of approximately BRL 0.632 million (USD $0.157 million).

XR Communications, LLC d/b/a Vivato Technologies v. Extreme Networks, Inc. Patent Infringement Suit

On April 19, 2017, XR Communications, LLC (“XR”) (d/b/a Vivato Technologies) filed a patent infringement lawsuit against the Company in the Central District of California. The operative Second Amended Complaint asserts infringement of U.S. Patent Nos. 7,062,296, 7,729,728, and 6,611,231 based on the Company’s manufacture, use, sale, offer for sale, and/or importation into the United States of certain access points and routers supporting multi-user, multiple-input, multiple-output technology. XR seeks unspecified damages, on-going royalties, pre- and post-judgment interest, and attorneys’ fees. In 2018, the Court stayed the case pending a resolution by the Patent Trial and Appeal Board (“PTAB”) of inter partes review (IPR) petitions filed by several defendants in other XR-related patent lawsuits challenging the validity of the asserted patents. The PTAB has now invalidated all asserted claims of the ’296 patent and ’728 patent, and has found the challenged claims of the ’231 patent not invalid in view of the prior art asserted in the IPR instituted against that patent. The matter has been stayed and a status conference is set for March 17, 2020. The Company believes the claims are without merit and intends to defend them vigorously.

Orckit IP, LLC v. Extreme Networks, Inc., Extreme Networks Ireland Ltd., and Extreme Networks GmbH

On February 1, 2018, Orckit IP, LLC (“Orckit”) filed a patent infringement lawsuit against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. The lawsuit alleges direct and indirect infringement of the German portion of European Patent EP 1 958 364 B1 (“EP ’364”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches equipped with the ExtremeXOS operating system. Orckit is seeking injunctive relief, accounting, and an unspecified declaration of liability for damages and costs of the lawsuit. On May 3, 2018, Extreme Networks GmbH filed a separate nullity action in the Federal Patent Court in Munich, seeking to invalidate the asserted patents. The District Court Düsseldorf held a hearing in this case on January 28, 2020 and a decision is expected in a few weeks.

On April 23, 2019, Orckit filed and extension of the patent infringement complaint against the Company and its Irish and German subsidiaries in the District Court in Dusseldorf, Germany. With this extension, Orckit alleges infringement of the German portion of European Patent EP 3 068 077 B1 (“EP ‘077”) based on the offer, distribution, use, possession and/or importation into Germany of certain network switches. Orckit is seeking injunctive relief, accounting and sales information, and a declaration of liability for damages as well as costs of the lawsuit. Extreme filed a nullity action with the German Federal Patent Court on or before that date, seeking to invalidate the asserted patent. No hearing has been scheduled yet in this case, which was split from the original action involving the first patent in suit.

The Company believes that all claims in both cases are without merit and defends them vigorously.

Global Innovation Aggregators, LLC v. Extreme Networks, Inc.; Extreme Networks China Limited; Extreme Networks Technology (Beijing) Co., Ltd.; and Shenzhen Yingzhixiang Technology Co.

In January 2019, Global Innovation Aggregators, LLC (“GIA”) filed six patent infringement lawsuits against the Company and its Chinese and Hong Kong subsidiaries and Shenzhen Yingzhixiang Technology Co., Ltd. in Shenzhen Intermediate People’s Court in China. The six patents at issue are ZL200610168028.1 (“ZL ‘028.1”), ZL200510120823.9, ZL200410057124.X, ZL200410070933.4, ZL200510103486.2 (“ZL ‘486.2”), and ZL200610060686.9 (“ZL ‘686.9”) (collectively, the “Asserted Patents”). GIA has accused a number of Summit switching products of infringing the Asserted Patents. Each patent was asserted in a separate lawsuit. The trial related to the ZL ‘4862 patent has been postponed, and the trials for the rest of the cases have not yet been scheduled. Extreme disputes GIA’s claims and intends to defend the matter vigorously. Additionally, Extreme has filed invalidity challenges with the Chinese patent office to challenge the validity of each asserted patent. Oral invalidity hearings were held in July and August 2019. The Chinese patent office has issued decisions maintaining the validity of the ZL ‘028.1 and ZL ‘486.2 patents, and Extreme has appealed these two rulings. All the claims in ZL ‘686.9 have been fully invalidated. Decisions have not yet been issued for the remaining three patents.

Given the uncertainty of litigation and the preliminary stage of the case, Extreme cannot estimate at this time the possible loss or range of loss that may result from this action.

Shenzhen Dunjun Technology Ltd. v. Aerohive Networks (Hangzhou) Ltd.; Aerohive Networks, Inc.; and Yunqing Information Technology (Shenzhen) Ltd.

On June 20, 2019, Shenzhen Dunjun Technology Ltd. (“Shenzhen Dunjun”) filed a patent infringement lawsuit against Aerohive Networks, Inc. (“Aerohive”), its Chinese subsidiary, and Yunqing Information Technology (Shenzhen) Ltd. in the Shenzhen Intermediate People’s Court in China. The lawsuit alleges infringement of Chinese patent ZL02123502.3 and seeks damages of RMB 10.0 million (USD $1.4 million). The trial originally scheduled for November 15, 2019 has been postponed by the Court, pending the jurisdictional objections filed by Aerohive and has not yet been rescheduled. The Court rejected the jurisdictional challenge, which Aerohive is appealing. The Company cannot estimate at this time the possible loss or range of loss that may result from this action.

Indemnification Obligations

Subject to certain limitations, the Company may be obligated to indemnify its current and former directors, officers and employees. These obligations arise under the terms of its certificate of incorporation, its bylaws, applicable contracts, and applicable law. The obligation to indemnify, where applicable, generally means that the Company is required to pay or reimburse, and in certain circumstances the Company has paid or reimbursed, the individuals' reasonable legal expenses and possibly damages and other liabilities incurred in connection with certain legal matters. The Company also procures Directors and Officers insurance to help cover its defense and/or indemnification costs, although its ability to recover such costs through insurance is uncertain. While it is not possible to estimate the maximum potential amount that could be owed under these indemnification agreements due to the Company’s limited history with prior indemnification claims, indemnification (including defense) costs could, in the future, have a material adverse effect on the Company’s consolidated financial position, results of operations and cash flows.

Stockholders' Equity

6 Months Ended

Dec. 31, 2019

Equity [Abstract]

Stockholders' Equity

11.	Stockholders’ Equity

Stockholders’ Rights Agreement

On April 26, 2012, the Company entered into an Amended and Restated Rights Agreement between the Company and Computershare Shareholder Services LLC as the rights agent (the “Restated Rights Plan”). The Restated Rights Plan governs the terms of each right (“Right”) that has been issued with respect to each share of common stock of Extreme Networks. Each Right initially represents the right to purchase one one-thousandth of a share of the Company’s Preferred Stock.

The Company’s Board of Directors (the “Board”) adopted the Restated Rights Plan to preserve the value of deferred tax assets, including net operating loss carry forwards of the Company, with respect to its ability to fully use its tax benefits to offset future income which may be limited if the Company experiences an “ownership change” for purposes of Section 382 of the Internal Revenue Code of 1986 as a result of ordinary buying and selling of its common stock. Following its review of the terms of the plan, the Board decided it was necessary and in the best interests of the Company and its stockholders to enter into the Restated Rights Plan. Each year since 2013 the Board and stockholders have approved an amendment providing for a one-year extension of the term of the Restated Rights Plan. The Board unanimously approved an amendment to the Restated Rights Plan on May 9, 2019, to extend the Restated Rights Plan through May 31, 2020, which was ratified by a majority of the stockholders of the Company at the November 7, 2019 shareholders meeting.

Equity Incentive Plan

The Board of Directors unanimously approved an amendment to the Extreme Networks, Inc. Amended and Restated 2013 Equity Incentive Plan to increase the maximum number of available shares by 7,000,000 shares. The amendment was ratified by a majority of the stockholders at the Company’s annual meeting of stockholders held on November 7, 2019.

Common Stock Repurchases

On November 2, 2018, the Company announced the Board had authorized management to repurchase up to $60.0 million of the Company’s common stock over a two-year period from the date of authorization. Purchases may be made from time to time through any means including, but not limited to, open market purchases and privately negotiated transactions. A maximum of $35.0 million of the Company’s common stock may be repurchased in any calendar year.

In November 2019, the Company entered into an accelerated share repurchase agreement (the “November 2019 ASR”) to repurchase shares of the Company’s common stock. Pursuant to the November 2019 ASR, the Company paid $30.0 million for an initial delivery of 3,850,000 shares valued at $25.2 million. The remaining balance of $4.8 million was recorded in additional paid-in-capital as a forward contract in the Company’s common stock. The forward contract was settled on January 24, 2020 and the Company received an additional 381,505 shares of its common stock.

The following table summarizes stock award activity for the three and six months ended December 31, 2019 and 2018.

	Three and Six Months Ended
	December 31, 2019		December 31, 2018
Total number of shares repurchased		3,850		2,366
Average price paid per share	$	6.54	$	6.34
Dollar value of shares repurchased	$	25,179	$	15,000
Dollar value of shares that may yet be repurchased under program	$	19,821	$	45,000

Employee Benefit Plans

6 Months Ended

Dec. 31, 2019

Share Based Compensation [Abstract]

Employee Benefit Plans

12.	Employee Benefit Plans

Shares reserved for issuance

The Company had reserved for issuance for the periods noted (in thousands):

	December 31, 2019		June 30, 2019
2013 Equity Incentive Plan shares available for grant		10,435		8,462
Employee stock options and awards outstanding		13,541		10,455
2014 Employee Stock Purchase Plan		8,862		10,085
Total shares reserved for issuance		32,838		29,002

Aerohive 2014 Equity Incentive Plan

Pursuant to the acquisition of Aerohive on August 9, 2019, the Company assumed the Aerohive 2014 Equity Incentive Plan (the "Aerohive Plan"). Stock awards outstanding under the Aerohive Plan were converted into awards for Extreme shares as of the Acquisition Date at a predetermined rate pursuant to the Merger Agreement. As of December 31, 2019, total awards to acquire 1,147,232 shares of Extreme common stock were outstanding under the Aerohive Plan. If a participant terminates employment prior to the vesting dates, the non-vested shares will be forfeited and retired. No future grants may be made from the Aerohive Plan.

Share-based compensation expense

Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Cost of product revenue	$	402	$	217	$	652	$	395
Cost of service revenue		505		677		852		1,022
Research and development		3,260		2,797		5,695		5,139
Sales and marketing		3,511		2,983		7,230		5,342
General and administrative		2,801		2,026		4,884		3,627
Integration costs		479		—		479		—
Total share-based compensation expense	$	10,958	$	8,700	$	19,792	$	15,525

During the three and six months ended December 31, 2019, and 2018, the Company did not capitalize any share-based compensation expense in inventory, as the amounts were immaterial.

Stock Awards

Stock awards may be granted under the 2013 Equity Incentive Plan (the “2013 Plan”) on terms approved by the Compensation Committee of the Board. Stock awards generally provide for the issuance of restricted stock units (“RSUs”) including performance or market-based RSUs which vest over a fixed period of time or based upon the satisfaction of certain performance criteria. The Company uses the straight-line method for expense attribution. The Company does not estimate forfeitures, but accounts for them as incurred.

The following table summarizes stock award activity for the six months ended December 31, 2019 (in thousands, except grant date fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2019		7,736		$	7.67
Granted		6,017			6.86
Released		(2,474	)		7.08
Cancelled		(890	)		7.08
Non-vested stock awards outstanding at December 31, 2019		10,389		$	7.39	$	76,570
Vested and expected to vest at December 31, 2019		9,729		$	7.30	$	71,705

The following table summarizes stock option activity for the six months ended December 31, 2019 (in thousands, except per share and contractual term):

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Options outstanding at June 30, 2019		2,719		$	4.61		3.26	$	5,070
Granted		637			6.70
Exercised		(181	)		4.55
Cancelled		(23	)		4.75
Options outstanding at December 31, 2019		3,152		$	5.03		3.66	$	7,374
Vested and expected to vest at December 31, 2019		3,152		$	5.03		3.66	$	7,374
Exercisable at December 31, 2019		1,735		$	3.80		1.65	$	6,194

The fair value of each stock option grant under the 2013 Plan and 2005 Equity Incentive Plan is estimated on the date of grant using the Black-Scholes-Merton option valuation model. The Company uses the Monte-Carlo simulation model to determine the fair value and the derived service period of stock awards with market conditions, on the date of the grant. The expected term of options granted is derived from historical data on employee exercise and post-vesting employment termination behavior. The risk-free rate is

based upon the estimated life of the option and the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock. The average fair value of the options granted was $6.70.

The fair value of each RSU grant with performance-based vesting criteria (“PSUs”) under the 2013 Plan is estimated on the date of grant using the Monte-Carlo simulation model to determine the fair value and the derived service period of stock awards with market conditions, on the date of the grant.

The RSUs granted during the six months ended December 31, 2019 vest from the original grant date as to one-third (1/3) on the one-year anniversary and one-twelfth (1/12) each quarter thereafter, subject to continued service to the Company. These RSUs included 566,038 RSUs to named executive officers and directors.

During fiscal 2019 and 2018, the Company approved the grant of 0.6 million shares of stock awards each year in the form of PSU’s to named executive officers and other vice president level employees. These PSUs would be considered earned once the Company’s U.S. GAAP earnings aggregates at least $0.20 per share over two consecutive quarters (the “Performance Thresholds”). During the second quarter of fiscal 2020, the compensation committee of the Board of Directors modified the Performance Thresholds of $0.20 earnings per share over two consecutive quarters for PSUs issued in fiscal 2019 and 2018, to $0.09 earnings per share over two consecutive quarters. Upon satisfying the Performance Thresholds, the PSUs will vest with respect to the same number of RSUs that have vested which were granted on the same date and thereafter will vest on the same schedule as the RSUs, subject to continued service to the Company. If the Performance Thresholds is not met by the third anniversary of the grant date for each award, that award is canceled. During the six months ended December 31, 2019, the 2019 and 2018 Performance Thresholds for outstanding performance awards were not achieved.

2014 Employee Stock Purchase Plan

The fair value of each share purchase option under the Company’s 2014 Employee Stock Purchase Plan (“ESPP”) is estimated on the date of grant using the Black-Scholes-Merton option valuation model with the weighted average assumptions noted in the following table. The expected term of the ESPP represents the term of the offering period of each option. The risk-free rate is based upon the estimated life and on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on the historical volatility on the Company’s stock.

There were 1,233,434 and 1,280,708 shares issued under the ESPP during the six months ended December 31, 2019 and 2018, respectively. The following assumptions were used to calculate the fair value of shares granted under the ESPP during the following periods:

	Employee Stock Purchase Plan
	Six Months Ended
	December 31, 2019			December 31, 2018
Expected life	0.5 years			0.5 years
Risk-free interest rate		1.85	%		2.20	%
Volatility		43	%		63	%
Dividend yield		—	%		—	%

The weighted-average fair value of shares granted under the ESPP during the six months ended December 31, 2019 and 2018 was $2.02 and $2.73, respectively.

Information about Segments and Geographic Areas

6 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Information about Segments and Geographic Areas

13.	Information about Segments and Geographic Areas

The Company operates in one segment, the development and marketing of network infrastructure equipment and related software. The Company conducts business globally and is managed geographically. Revenue is attributed to a geographical area based on the location of its customers. The Company operates in three geographical areas: Americas, which includes the United States, Canada, Mexico, Central America and South America; EMEA, which includes Europe, Russia, Middle East and Africa; and APAC which includes Asia Pacific, South Asia, India, Australia and Japan. The Company’s chief operating decision maker, who is its CEO, reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance.

See Note 3 Net Revenues for the Company’s revenues by geographic regions and channel based on the customer’s ship-to location.

The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):

Long-lived Assets	December 31, 2019		June 30, 2019
Americas	$	218,301	$	136,035
EMEA		28,630		28,744
APAC		19,926		11,529
Total long-lived assets	$	266,857	$	176,308

Restructuring Charges, Net of Reversals and Impairment

6 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring Charges, Net of Reversals and Impairment

14.	Restructuring Charges, net of reversals and impairment

The Company recorded $6.6 million and $12.8 million of restructuring charges, net of reversals and impairments during the three and six months ended December 31, 2019, respectively. The charges included facility related charges of $3.9 million and $7.9 million and severance and benefits charges of $2.7 million and $4.9 million for the three and six-month periods ended December 31, 2019, respectively.

During the first quarter of fiscal 2020, the Company continued its initiative to realign its operations by exiting a floor of its San Ignacio building in San Jose California and consolidating its workforce. Also, the Company exited additional space in its Salem New Hampshire facility, which includes general office and lab space. The Company has the intent and ability to sub-lease these facilities which it has ceased using and as such has considered estimated future sub-lease income based on its existing leases agreement, as well as the local real estate market conditions in measuring the amount of asset impairment. The Company also factored into its estimate the time for a sub-lease tenant to enter into an agreement and complete any improvements. For the three months ended September 30, 2019, the Company recorded restructuring charges of $3.9 million related to the exited facilities.

During the second quarter of fiscal 2020, the Company continued its initiative to realign its operations resulting from the acquisition of Aerohive and consolidating its workforce. The Company exited its facility in Milpitas, California which includes general office and lab space. The Company has the intent and ability to sub-lease these facilities which it has ceased using and as such has considered estimated future sub-lease income based on its existing leases agreement, as well as the local real estate market conditions in measuring the amount of asset impairment. The Company also factored into its estimate the time for a sub-lease tenant to enter into an agreement and complete any improvements. For the three months ended December 31, 2019, the Company recorded charges for the impairment of right-of-use-assets of $2.8 million, long-lived assets of $0.9 million, and other charges of $0.2 million related to the exited facilities.

Certain amounts have been reclassified from restructuring liabilities and have been recorded as a reduction to operating lease ROU assets as of July 1, 2019.

Restructuring liabilities related to severance and benefits obligations are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. Total restructuring and related liabilities consist of (in thousands):

	Excess Facilities			Severance Benefits			Total

Balance as of June 30, 2019	$	1,764		$	3,559		$	5,323
Period charges		—			5,879			5,879
Period reversals		—			(1,005	)		(1,005	)
Reclassification to reduce operating lease assets		(1,764	)		—			(1,764	)
Period payments		—			(7,565	)		(7,565	)
Balance as of December 31, 2019	$	—		$	868		$	868

Income Taxes

6 Months Ended

Dec. 31, 2019

Income Tax Disclosure [Abstract]

Income Taxes

15.	Income Taxes

For the three months ended December 31, 2019 and 2018, the Company recorded an income tax provision of $1.8 million and an income tax benefit of $5.3 million, respectively. For the six months ended December 31, 2019 and 2018, the Company recorded an income tax provision of $3.4 million and an income tax benefit of $3.9 million, respectively.

The income tax provisions for the three and six months ended December 31, 2019 and 2018, consisted of (1) taxes on the income of the Company’s foreign subsidiaries, (2) foreign withholding taxes (3) tax expense associated with the establishment of a U.S. deferred tax liability for amortizable goodwill resulting from the acquisition of Enterasys Networks, Inc., the WLAN Business,

the Campus Fabric Business and the Data Center Business, and (4) state taxes in jurisdictions where the Company has no remaining state Net Operating Losses (“NOL’S”). In addition, the three and six months ended December 31, 2018 included tax benefits associated with the release of valuation allowance resulting from changes introduced by US tax reform as well as the release of a valuation allowance recorded against deferred tax assets in Australia. The income tax provisions for both fiscal years were calculated based on the actual results of operations for the three and six months ended December 31, 2019 and 2018 , respectively and therefore may not reflect the annual effective tax rate.

In the first quarter of fiscal year ended June 30, 2019, the Company adopted ASU 2016-16, Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset at the time the transfer occurs. Historically, GAAP has prohibited the recognition of current and deferred income taxes for an intra-entity asset transfer until the asset had been sold outside the consolidated group. Effective July 1, 2018, the Company adopted ASU 2016-16 on a modified retrospective basis which requires an adjustment of the cumulative-effect of the adoption to retained earnings. The adjustment was immaterial to the financial statements and as such, no such adjustment was necessary. As a result of adoption, the income tax consequences of future intra-entity transfer of assets will be recognized in earnings in each period rather than be deferred until the assets leave the consolidated group. In the three months ended September 30, 2018, the Company recognized a deferred tax asset relating to a transfer of certain assets from the U.S. parent company to its wholly-owned Irish subsidiary of $3.7 million, which was fully offset by the establishment of a valuation allowance resulting in no impact to Company’s statement of operations.

The Company has provided a full valuation allowance against all of its U.S. federal and state deferred tax assets as well as a portion of the deferred tax assets in Ireland. A valuation allowance is determined by assessing both negative and positive evidence to determine whether it is “more likely than not” that deferred tax assets are recoverable; such assessment is required on a jurisdiction by jurisdiction basis. The Company's inconsistent earnings in recent periods, including a cumulative loss over the last three years, coupled with its difficulty in forecasting future revenue trends and the cyclical nature of its business represent sufficient negative evidence to require a full valuation allowance against its U.S. federal and state net deferred tax assets as well as a portion of the deferred tax assets in Ireland. These valuation allowance will be evaluated periodically and can be reversed partially or in whole if business results and the economic environment have sufficiently improved to support realization of some or all of the Company's deferred tax assets.

On August 9, 2019, the Company completed its acquisition of Aerohive. This acquisition will be treated as a non-taxable stock acquisition and therefore Extreme Networks will have carryover tax basis in the assets and liabilities acquired.

The Company had $25.8 million of unrecognized tax benefits as of December 31, 2019. The future impact of the unrecognized tax benefit of $25.8 million, if recognized, would result in adjustments to deferred tax assets and corresponding adjustments to the valuation allowance with no impact to the effective tax rate. The Company does not anticipate any events to occur during the next twelve months that would reduce the unrealized tax benefit as currently stated in the Company’s balance sheet.

The Company’s policy is to accrue interest and penalties related to the underpayment of income taxes as a component of tax expense in the accompanying condensed consolidated statements of operations.

In general, the Company’s U.S. federal income tax returns are subject to examination by tax authorities for fiscal years 2001 forward due to net operating losses and the Company's state income tax returns are subject to examination for fiscal years 2000 forward due to net operating losses. The Company is not currently under audit in any material jurisdictions.

Net Loss Per Share

6 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Net Loss Per Share

16.	Net Loss Per Share

Basic earnings per share is calculated by dividing net earnings by the weighted average number of common shares outstanding during the period. Dilutive earnings per share is calculated by dividing net earnings by the weighted average number of common shares used in the basic earnings per share calculation plus the dilutive effect of shares subject to repurchase, options and unvested restricted stock units.

The following table presents the calculation of net (loss) income per share of basic and diluted (in thousands, except per share data):

	Three Months Ended					Six Months Ended
	December 31, 2019			December 31, 2018		December 31, 2019			December 31, 2018
Net income (loss)		(23,538	)		7,199		(61,276	)		(1,866	)

Weighted-average shares used in per share calculation - basic		119,555			117,544		119,891			117,456
Effect of potentially dilutive shares:
Options to purchase common stock		—			657		—			—
Restricted stock units		—			1,129		—			—
Employee Stock Purchase Plan shares		—			214		—			—
Weighted-average shares used in per share calculation - basic and diluted		119,555			119,544		119,891			117,456

Net loss per share - basic and diluted
Net income (loss) per share - basic	$	(0.20	)	$	0.06	$	(0.51	)	$	(0.02	)
Net income (loss) per share - diluted	$	(0.20	)	$	0.06	$	(0.51	)	$	(0.02	)

The following securities were excluded from the computation of net loss per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Options to purchase common stock		3,177		781		3,037		543
Restricted stock units		10,378		6,341		9,862		1,369
Employee Stock Purchase Plan shares		1,500		1,286		1,500		1,286
Total shares excluded		15,055		8,408		14,399		3,198

Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Fiscal Year

Principles of Consolidation

The consolidated financial statements include the accounts of Extreme and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated.

Accounting Estimates

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Revenue Recognition

Revenue by Category

The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the customer’s ship-to locations (in thousands):

	Three Months Ended
	December 31, 2019						December 31, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	60,111	$	61,622	$	121,733	$	44,141	$	55,326	$	99,467
Other		8,204		5,563		13,767		8,269		5,380		13,649
Total Americas		68,315		67,185		135,500		52,410		60,706		113,116
EMEA		64,717		44,257		108,974		79,876		32,773		112,649
APAC		6,007		16,991		22,998		4,767		22,148		26,915
Total net revenues	$	139,039	$	128,433	$	267,472	$	137,053	$	115,627	$	252,680

	Six Months Ended
	December 31, 2019						December 31, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	130,089	$	123,967	$	254,056	$	100,883	$	115,262	$	216,145
Other		12,219		10,562		22,781		12,762		10,904		23,666
Total Americas		142,308		134,529		276,837		113,645		126,166		239,811
EMEA		123,846		73,891		197,737		141,207		63,611		204,818
APAC:		15,120		33,284		48,404		7,116		40,821		47,937
Total net revenues	$	281,274	$	241,704	$	522,978	$	261,968	$	230,598	$	492,566

Inventories

Inventories consist of the following (in thousands):

	December 31, 2019		June 30, 2019
Finished goods	$	62,116	$	49,492
Raw materials		17,548		14,097
Total Inventories	$	79,664	$	63,589

Property and Equipment, Net

Property and equipment consist of the following (in thousands):

	December 31, 2019			June 30, 2019
Computers and equipment	$	74,694		$	72,309
Purchased software		32,199			29,126
Office equipment, furniture and fixtures		11,453			10,815
Leasehold improvements		52,499			51,245
Total property and equipment		170,845			163,495
Less: accumulated depreciation and amortization		(102,907	)		(89,941	)
Property and equipment, net	$	67,938		$	73,554

Deferred Revenue

Guarantees and Product Warranties

The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2019 and 2018 (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Balance beginning of period	$	15,988		$	12,601		$	14,779		$	12,807
Warranties assumed due to acquisitions		—			—			570			—
New warranties issued		5,539			4,145			11,461			7,867
Warranty expenditures		(5,318	)		(3,938	)		(10,601	)		(7,866	)
Balance end of period	$	16,209		$	12,808		$	16,209		$	12,808

Other Long-term Liabilities

Other long-term liabilities

The following is a summary of long-term liabilities (in thousands):

	December 31, 2019		June 30, 2019
Acquisition related deferred payments, less current portion	$	7,741	$	9,604
Contingent consideration obligations, less current portion		930		2,688
Other contractual obligations, less current portion		22,529		26,261
Other		3,039		15,597
Total other long-term liabilities	$	34,239	$	54,150

Concentrations

Earnings Per Share

Revenues (Tables)

6 Months Ended

Dec. 31, 2019

Revenue From Contract With Customer [Abstract]

Schedule of Revenue Disaggregated by Sales Channel and Geographic Region

The following table sets forth the Company’s revenue disaggregated by sales channel and geographic region based on the customer’s ship-to locations (in thousands):

	Three Months Ended
	December 31, 2019						December 31, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	60,111	$	61,622	$	121,733	$	44,141	$	55,326	$	99,467
Other		8,204		5,563		13,767		8,269		5,380		13,649
Total Americas		68,315		67,185		135,500		52,410		60,706		113,116
EMEA		64,717		44,257		108,974		79,876		32,773		112,649
APAC		6,007		16,991		22,998		4,767		22,148		26,915
Total net revenues	$	139,039	$	128,433	$	267,472	$	137,053	$	115,627	$	252,680

	Six Months Ended
	December 31, 2019						December 31, 2018
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	130,089	$	123,967	$	254,056	$	100,883	$	115,262	$	216,145
Other		12,219		10,562		22,781		12,762		10,904		23,666
Total Americas		142,308		134,529		276,837		113,645		126,166		239,811
EMEA		123,846		73,891		197,737		141,207		63,611		204,818
APAC:		15,120		33,284		48,404		7,116		40,821		47,937
Total net revenues	$	281,274	$	241,704	$	522,978	$	261,968	$	230,598	$	492,566

Schedule of Major Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance

The following table sets forth major customers accounting for 10% or more of the Company’s net revenues:

	Three Months Ended		Six Months Ended
	December 31, 2019	December 31, 2018	December 31, 2019	December 31, 2018
Tech Data Corporation	14%	22%	15%	19%
Jenne Corporation	18%	12%	16%	12%
Westcon Group Inc.	15%	15%	13%	14%

The following table sets forth major customers accounting for 10% or more of the Company’s accounts receivable balance:


	December 31, 2019			June 30, 2019
Tech Data Corporation		20	%		12	%
Jenne Corporation		23	%		35	%

Business Combination (Tables)

6 Months Ended

Dec. 31, 2019

Summary of Unaudited Pro Forma Financial Information

	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Net revenues	$	268,367		$	288,873		$	536,045		$	568,107
Net loss	$	(5,031	)	$	(20,694	)	$	(28,847	)	$	(59,779	)
Net loss per share - basic and diluted	$	(0.04	)	$	(0.18	)	$	(0.24	)	$	(0.51	)
Shares used in per share calculation - basic and diluted		119,555			117,544			119,891			117,456

Aerohive Networks, Inc.

Components of Aggregate Estimated Purchase Consideration

The components of aggregate estimated purchase consideration are as follows (in thousands):

Estimated purchase consideration	August 9, 2019
Cash paid to acquire outstanding shares	$	263,616
Replacement of stock-based awards		3,530
Aggregate estimated purchase consideration	$	267,146

Summary of Preliminary Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed

The preliminary purchase price allocation is set forth in the table below and reflects estimated fair values (in thousands).

	Preliminary Allocation as of August 9, 2019			Adjustments				Allocation as of December 31, 2019
Cash and cash equivalents	$	44,158		$	—			$	44,158
Short-term investments		45,148			—				45,148
Accounts receivable, net		11,753			—				11,753
Inventories		16,698			2,534		a		19,232
Prepaid expenses and other current assets		3,980			(56	)	b		3,924
Property and equipment		2,185			179		c		2,364
Operating lease right-of-use assets		6,336			—				6,336
Other assets		2,195			—				2,195
Debt		(20,000	)		—				(20,000	)
Accounts payable		(9,737	)		—				(9,737	)
Accrued compensation and benefits		(7,129	)		—				(7,129	)
Accrued warranty		(570	)		—				(570	)
Other accrued liabilities		(1,960	)		—				(1,960	)
Operating lease liabilities		(4,752	)		—				(4,752	)
Deferred revenue		(68,415	)		—				(68,415	)
Other liabilities		(408	)		—				(408	)
Net tangible assets		19,482			2,657				22,139

Identifiable intangible assets		53,400			—				53,400
Goodwill		194,264			(2,657	)	a,b,c		191,607
Total intangible assets acquired		247,664			(2,657	)			245,007

Total net assets acquired	$	267,146		$	-			$	267,146

Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition

The following table presents details of the identifiable intangible assets acquired as part of the Acquisition (dollars in thousands):

Intangible Assets	Estimated Useful Life (in years)		Amount
Developed technology		4	$	40,000
Backlog		1		400
Customer relationships		7		11,400
Trade names		1		1,600
Total identifiable intangible assets			$	53,400

Balance Sheet Accounts (Tables)

6 Months Ended

Dec. 31, 2019

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Components of Inventories

Inventories consist of the following (in thousands):

	December 31, 2019		June 30, 2019
Finished goods	$	62,116	$	49,492
Raw materials		17,548		14,097
Total Inventories	$	79,664	$	63,589

Components of Property and Equipment

Property and equipment consist of the following (in thousands):

	December 31, 2019			June 30, 2019
Computers and equipment	$	74,694		$	72,309
Purchased software		32,199			29,126
Office equipment, furniture and fixtures		11,453			10,815
Leasehold improvements		52,499			51,245
Total property and equipment		170,845			163,495
Less: accumulated depreciation and amortization		(102,907	)		(89,941	)
Property and equipment, net	$	67,938		$	73,554

Summary of Product Warranty Liability Activity

The following table summarizes the activity related to the Company’s product warranty liability during the three and six months ended December 31, 2019 and 2018 (in thousands):

	Three Months Ended						Six Months Ended
	December 31, 2019			December 31, 2018			December 31, 2019			December 31, 2018
Balance beginning of period	$	15,988		$	12,601		$	14,779		$	12,807
Warranties assumed due to acquisitions		—			—			570			—
New warranties issued		5,539			4,145			11,461			7,867
Warranty expenditures		(5,318	)		(3,938	)		(10,601	)		(7,866	)
Balance end of period	$	16,209		$	12,808		$	16,209		$	12,808

Summary of Long-term Liabilities

The following is a summary of long-term liabilities (in thousands):

	December 31, 2019		June 30, 2019
Acquisition related deferred payments, less current portion	$	7,741	$	9,604
Contingent consideration obligations, less current portion		930		2,688
Other contractual obligations, less current portion		22,529		26,261
Other		3,039		15,597
Total other long-term liabilities	$	34,239	$	54,150

Fair Value Measurements (Tables)

6 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule of Change in Acquisition-related Contingent Consideration Obligations

The change in the acquisition-related contingent consideration obligations is as follows (in thousands):

	Six Months Ended
	December 31, 2019
Beginning balance		6,298
Payments		(2,206	)
Accretion on discount		60
Ending balance	$	4,152

Goodwill and Intangible Assets (Tables)

6 Months Ended

Dec. 31, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill

The following table reflects the changes in the carrying amount of goodwill (in thousands):

	December 31, 2019
Balance as of June 30, 2019	$	138,577
Additions due to acquisition (see Note 4)		191,607
Balance at end of period	$	330,184

Components of Gross and Net Intangible Asset Balances

The following tables summarize the components of gross and net intangible asset balances (dollars in thousands):

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
December 31, 2019
Developed technology	2.8 years	$	157,000	$	90,673	$	66,327
Customer relationships	4.9 years		63,039		46,965		16,074
Backlog	— years		400		400		—
Trade names	1.6 years		10,700		7,034		3,666
License agreements	5.5 years		2,445		1,796		649
Other intangibles	0.1 years		1,382		1,358		24
Total intangibles, net		$	234,966	$	148,226	$	86,740

	Weighted Average
	Remaining Amortization	Gross Carrying		Accumulated		Net Carrying
	Period	Amount		Amortization		Amount
June 30, 2019
Developed technology	2.4 years	$	117,000	$	77,449	$	39,551
Customer relationships	2.0 years		51,639		44,410		7,229
Trade names	2.4 years		9,100		5,647		3,453
License agreements	5.4 years		2,445		1,661		784
Other intangibles	0.6 years		1,382		1,287		95
Total intangibles, net		$	181,566	$	130,454	$	51,112

Summary of Amortization Expense of Intangibles

The amortization expense of intangibles for the periods presented is summarized below (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Amortization in “Cost of revenues: Product”	$	6,970	$	4,904	$	13,465	$	9,836
Amortization of intangibles in "Operations"		2,377		1,575		4,307		3,716
Total amortization	$	9,347	$	6,479	$	17,772	$	13,552

Debt (Tables)

6 Months Ended

Dec. 31, 2019

Debt Disclosure [Abstract]

Components of Debt

The Company’s debt is comprised of the following (in thousands):

	December 31, 2019			June 30, 2019
Current portion of long-term debt:
Term Loan	$	19,000		$	9,500
Less: unamortized debt issuance costs		(2,186	)		(489	)
Current portion of long-term debt	$	16,814		$	9,011

Long-term debt, less current portion:
Term Loan	$	356,250		$	171,000
Less: unamortized debt issuance costs		(7,334	)		(1,261	)
Total long-term debt, less current portion		348,916			169,739
Total debt	$	365,730		$	178,750

Leases (Tables)

6 Months Ended

Dec. 31, 2019

Leases [Abstract]

Summary of Activity and Other Information Relating to Operating Leases

Activity and other information relating to operating leases is as follows (in thousands except for lease term and discount rate):

	Three Months Ended December 31, 2019		Six Months Ended December 31, 2019
Operating lease costs	$	5,002	$	10,003
Cash paid for amounts included in the measurement of operating liabilities		5,346		10,831
ROU assets obtained for new lease obligations		1,357		1,422
ROU assets obtained from Aerohive business combination		-		6,336

	December 31, 2019
Weighted average remaining lease term (in years)		4.7
Weighted Average Discount Rate		4.5	%

Schedule of Maturities of Operating Lease Liabilities

The maturities of the Company’s operating lease liabilities as of December 31, 2019 by fiscal year are as follows:

	Operating Leases (in thousands)
2020 (remaining six months)	$	10,534
2021		20,298
2022		19,486
2023		15,767
2024		6,370
Thereafter		12,505
Total future minimum lease payments		84,960
Less amount representing interest		8,441
Total operating lease liabilities	$	76,519
Operating lease liabilities, current	$	17,921
Operating lease liabilities, non-current	$	58,598

Schedule of Minimum Future Rentals on Non-Cancellable Operating Leases

As of June 30, 2019, the minimum future rentals on non-cancellable operating leases by fiscal year, based on the previous accounting standard, were as follows:

	Operating Leases (in thousands)
2020	$	22,733
2021		21,174
2022		20,680
2023		17,828
2024		5,976
Thereafter		16,287
Total lease payments	$	104,678

Stockholders' Equity (Tables)

6 Months Ended

Dec. 31, 2019

Equity [Abstract]

Summary of Share Repurchases Under Stock Award Activity

The following table summarizes stock award activity for the three and six months ended December 31, 2019 and 2018.

	Three and Six Months Ended
	December 31, 2019		December 31, 2018
Total number of shares repurchased		3,850		2,366
Average price paid per share	$	6.54	$	6.34
Dollar value of shares repurchased	$	25,179	$	15,000
Dollar value of shares that may yet be repurchased under program	$	19,821	$	45,000

Employee Benefit Plans (Tables)

6 Months Ended

Dec. 31, 2019

Share Based Compensation [Abstract]

Shares Reserved for Issuance

The Company had reserved for issuance for the periods noted (in thousands):

	December 31, 2019		June 30, 2019
2013 Equity Incentive Plan shares available for grant		10,435		8,462
Employee stock options and awards outstanding		13,541		10,455
2014 Employee Stock Purchase Plan		8,862		10,085
Total shares reserved for issuance		32,838		29,002

Schedule of Recognized Share-based Compensation Expense

Share-based compensation expense

Share-based compensation expense recognized in the condensed consolidated financial statements by line item caption is as follows (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Cost of product revenue	$	402	$	217	$	652	$	395
Cost of service revenue		505		677		852		1,022
Research and development		3,260		2,797		5,695		5,139
Sales and marketing		3,511		2,983		7,230		5,342
General and administrative		2,801		2,026		4,884		3,627
Integration costs		479		—		479		—
Total share-based compensation expense	$	10,958	$	8,700	$	19,792	$	15,525

Summary of Stock Award Activity

The following table summarizes stock award activity for the six months ended December 31, 2019 (in thousands, except grant date fair value):

	Number of Shares			Weighted- Average Grant Date Fair Value		Aggregate Fair Market Value
Non-vested stock awards outstanding at June 30, 2019		7,736		$	7.67
Granted		6,017			6.86
Released		(2,474	)		7.08
Cancelled		(890	)		7.08
Non-vested stock awards outstanding at December 31, 2019		10,389		$	7.39	$	76,570
Vested and expected to vest at December 31, 2019		9,729		$	7.30	$	71,705

Summary of Stock Option Activity

The following table summarizes stock option activity for the six months ended December 31, 2019 (in thousands, except per share and contractual term):

	Number of Shares			Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Options outstanding at June 30, 2019		2,719		$	4.61		3.26	$	5,070
Granted		637			6.70
Exercised		(181	)		4.55
Cancelled		(23	)		4.75
Options outstanding at December 31, 2019		3,152		$	5.03		3.66	$	7,374
Vested and expected to vest at December 31, 2019		3,152		$	5.03		3.66	$	7,374
Exercisable at December 31, 2019		1,735		$	3.80		1.65	$	6,194

Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards

The following assumptions were used to calculate the fair value of shares granted under the ESPP during the following periods:

	Employee Stock Purchase Plan
	Six Months Ended
	December 31, 2019			December 31, 2018
Expected life	0.5 years			0.5 years
Risk-free interest rate		1.85	%		2.20	%
Volatility		43	%		63	%
Dividend yield		—	%		—	%

Information about Segments and Geographic Areas (Tables)

6 Months Ended

Dec. 31, 2019

Segment Reporting [Abstract]

Schedule of Long Lived Assets by Segment

The Company’s long-lived assets are attributed to the geographic regions as follows (in thousands):

Long-lived Assets	December 31, 2019		June 30, 2019
Americas	$	218,301	$	136,035
EMEA		28,630		28,744
APAC		19,926		11,529
Total long-lived assets	$	266,857	$	176,308

Restructuring Charges, Net of Reversals and Impairment (Tables)

6 Months Ended

Dec. 31, 2019

Restructuring And Related Activities [Abstract]

Restructuring Liabilities

	Excess Facilities			Severance Benefits			Total

Balance as of June 30, 2019	$	1,764		$	3,559		$	5,323
Period charges		—			5,879			5,879
Period reversals		—			(1,005	)		(1,005	)
Reclassification to reduce operating lease assets		(1,764	)		—			(1,764	)
Period payments		—			(7,565	)		(7,565	)
Balance as of December 31, 2019	$	—		$	868		$	868

Net Loss Per Share (Tables)

6 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table presents the calculation of net (loss) income per share of basic and diluted (in thousands, except per share data):

	Three Months Ended					Six Months Ended
	December 31, 2019			December 31, 2018		December 31, 2019			December 31, 2018
Net income (loss)		(23,538	)		7,199		(61,276	)		(1,866	)

Weighted-average shares used in per share calculation - basic		119,555			117,544		119,891			117,456
Effect of potentially dilutive shares:
Options to purchase common stock		—			657		—			—
Restricted stock units		—			1,129		—			—
Employee Stock Purchase Plan shares		—			214		—			—
Weighted-average shares used in per share calculation - basic and diluted		119,555			119,544		119,891			117,456

Net loss per share - basic and diluted
Net income (loss) per share - basic	$	(0.20	)	$	0.06	$	(0.51	)	$	(0.02	)
Net income (loss) per share - diluted	$	(0.20	)	$	0.06	$	(0.51	)	$	(0.02	)

Schedule of Antidilutive Securities Excluded from Earnings Per Share Calculation

The following securities were excluded from the computation of net loss per diluted share of common stock for the periods presented as their effect would have been anti-dilutive (in thousands):

	Three Months Ended				Six Months Ended
	December 31, 2019		December 31, 2018		December 31, 2019		December 31, 2018
Options to purchase common stock		3,177		781		3,037		543
Restricted stock units		10,378		6,341		9,862		1,369
Employee Stock Purchase Plan shares		1,500		1,286		1,500		1,286
Total shares excluded		15,055		8,408		14,399		3,198

Revenues (Narratives) (Details)	3 Months Ended		6 Months Ended
Revenues (Narratives) (Details)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Distribution_Channels	Dec. 31, 2018 USD ($)	Jun. 30, 2019 USD ($)
Disaggregation Of Revenue [Line Items]
Number of distribution channels \| Distribution_Channels			2
Estimated selling price determination approach			Certain of the Company’s contracts have multiple performance obligations, as the promise to transfer individual goods or services is separately identifiable from other promises in the contracts and, therefore, is distinct. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on its relative standalone selling price. The stand-alone selling prices are determined based on the prices at which the Company separately sells these products. For items that are not sold separately, the Company estimates the stand-alone selling prices using the best estimated selling price approach.
Remaining revenue performance obligations	$ 277,800,000		$ 277,800,000
Revenue recognized for deferred revenue balance	67,200,000	$ 59,900,000	90,900,000	$ 88,800,000
Lease revenue	2,300,000	3,200,000	$ 4,700,000	5,900,000
Commission Fees
Disaggregation Of Revenue [Line Items]
Revenue, practical expedient, incremental cost of obtaining contract [true false]			true
Contract costs capitalized, balances amount	$ 8,300,000		$ 8,300,000		$ 6,500,000
Contract costs capitalized, amortization period	3 years		3 years
Contract costs capitalized, amortization method			straight-line basis
Contract costs capitalized, amortization expense	$ 1,500,000	700,000	$ 3,000,000.0	1,400,000
Contract costs capitalized, impairment loss	$ 0	$ 0	$ 0	$ 0

Revenues (Narratives) (Details 1)	6 Months Ended
Revenues (Narratives) (Details 1)	Dec. 31, 2019
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-01-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Percentage of remaining performance obligations expected to recognize, period	1 year
Percentage of remaining performance obligations expected to recognize	42.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Percentage of remaining performance obligations expected to recognize, period	1 year
Percentage of remaining performance obligations expected to recognize	34.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-07-01
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items]
Percentage of remaining performance obligations expected to recognize, period	1 year
Percentage of remaining performance obligations expected to recognize, description	thereafter
Percentage of remaining performance obligations expected to recognize	24.00%

Revenues (Schedule of Revenue Disaggregated by Sales Channel and Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 267,472	$ 252,680	$ 522,978	$ 492,566
Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	139,039	137,053	281,274	261,968
Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	128,433	115,627	241,704	230,598
United States
Disaggregation Of Revenue [Line Items]
Net Revenues	121,733	99,467	254,056	216,145
United States \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	60,111	44,141	130,089	100,883
United States \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	61,622	55,326	123,967	115,262
Other Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	13,767	13,649	22,781	23,666
Other Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	8,204	8,269	12,219	12,762
Other Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	5,563	5,380	10,562	10,904
Total Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	135,500	113,116	276,837	239,811
Total Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	68,315	52,410	142,308	113,645
Total Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	67,185	60,706	134,529	126,166
EMEA
Disaggregation Of Revenue [Line Items]
Net Revenues	108,974	112,649	197,737	204,818
EMEA \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	64,717	79,876	123,846	141,207
EMEA \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	44,257	32,773	73,891	63,611
APAC
Disaggregation Of Revenue [Line Items]
Net Revenues	22,998	26,915	48,404	47,937
APAC \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	6,007	4,767	15,120	7,116
APAC \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 16,991	$ 22,148	$ 33,284	$ 40,821

Revenues (Schedule of Major Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance) (Details) - Customer Concentration Risk	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Westcon Group Inc. \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	15.00%	15.00%	13.00%	14.00%
Jenne Corporation \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	18.00%	12.00%	16.00%	12.00%
Jenne Corporation \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)			23.00%		35.00%
Tech Data Corporation \| Net Revenue
Concentration Risk [Line Items]
Concentration risk (percent)	14.00%	22.00%	15.00%	19.00%
Tech Data Corporation \| Accounts Receivable
Concentration Risk [Line Items]
Concentration risk (percent)			20.00%		12.00%

Business Combination (Narratives) (Details) - USD ($) $ in Thousands		3 Months Ended			6 Months Ended
	Aug. 09, 2019	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Acquisition and integration related expenses		$ 8,994		$ 67	$ 24,919	$ 2,613
Aerohive Networks, Inc.
Business Acquisition [Line Items]
Business acquisition, cash consideration	$ 267,146
Business acquisition, date of acquisition	Aug. 09, 2019
Revenue		41,900			67,300
Acquisition and integration related expenses		$ 9,000			$ 24,900
Compensation charge associated with acquisition			$ 6,800

Business Combination (Summary of Preliminary Allocation of Tangible and Identifiable Intangible Assets Acquired and Liabilities Assumed) (Details) - USD ($)
$ in Thousands

Dec. 31, 2019

Aug. 09, 2019

Jun. 30, 2019

Business Acquisition [Line Items]

Goodwill

$ 330,184

$ 138,577

Aerohive Networks, Inc.

Business Acquisition [Line Items]

Cash and cash equivalents

44,158

$ 44,158

Short-term investments

45,148

Accounts receivable, net

11,753

Inventories

19,232

16,698

Prepaid expenses and other current assets

3,924

3,980

Property and equipment

2,364

2,185

Operating lease right-of-use assets

6,336

Other assets

2,195

Debt

(20,000)

Accounts payable

(9,737)

Accrued compensation and benefits

(7,129)

Accrued warranty

(570)

Other accrued liabilities

(1,960)

Operating lease liabilities

(4,752)

Deferred revenue

(68,415)

Other liabilities

(408)

Net tangible assets

22,139

19,482

Identifiable intangible assets

53,400

Goodwill

191,607

194,264

Total intangible assets acquired

245,007

247,664

Total net assets acquired

267,146

$ 267,146

Aerohive Networks, Inc. | Adjustments

Business Acquisition [Line Items]

Inventories

^[1]

2,534

Prepaid expenses and other current assets

^[2]

(56)

Property and equipment

^[3]

179

Net tangible assets

2,657

Goodwill

^[1],[2],[3]

(2,657)

Total intangible assets acquired

$ (2,657)

[1]	adjustment of the fair value of inventories acquired
[2]	write-off of an asset with no future economic value as of the Acquisition Date
[3]	adjustment to the value of property and equipment as of the Acquisition Date at an international location

Business Combination (Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition) (Details) - Aerohive Networks, Inc. $ in Thousands	6 Months Ended
	Dec. 31, 2019 USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 53,400
Developed technology
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 40,000
Estimated Useful Life (in years)	4 years
Backlog
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 400
Estimated Useful Life (in years)	1 year
Customer relationships
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 11,400
Estimated Useful Life (in years)	7 years
Trade names
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 1,600
Estimated Useful Life (in years)	1 year

Business Combinations (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition Pro Forma Information [Abstract]
Net revenues	$ 268,367	$ 288,873	$ 536,045	$ 568,107
Net loss	$ (5,031)	$ (20,694)	$ (28,847)	$ (59,779)
Net loss per share - basic and diluted	$ (0.04)	$ (0.18)	$ (0.24)	$ (0.51)
Shares used in per share calculation - basic and diluted	119,555	117,544	119,891	117,456

Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Finished goods	$ 62,116	$ 49,492
Raw materials	17,548	14,097
Total Inventories	$ 79,664	$ 63,589

Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 170,845	$ 163,495
Less: accumulated depreciation and amortization	(102,907)	(89,941)
Property and equipment, net	67,938	73,554
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	74,694	72,309
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	32,199	29,126
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,453	10,815
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 52,499	$ 51,245

Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance beginning of period	$ 15,988	$ 12,601	$ 14,779	$ 12,807
Warranties assumed due to acquisitions			570
New warranties issued	5,539	4,145	11,461	7,867
Warranty expenditures	(5,318)	(3,938)	(10,601)	(7,866)
Balance end of period	$ 16,209	$ 12,808	$ 16,209	$ 12,808

Fair Value Measurements (Narratives) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Level 2 Assets and Liabilities
Assets
Transfers of assets between Level 1 and Level 2	$ 0		$ 0		$ 0
Transfers of liabilities between Level 1 and Level 2	0		0		0
Long-term debt, fair value	375,300,000		375,300,000		180,500,000
Acquisition-related contingent consideration obligations	4,200,000		4,200,000		6,300,000
Level 3 Assets and Liabilities
Assets
Acquisition-related contingent consideration obligations	4,152,000		4,152,000		$ 6,298,000
Transfers of assets between Level 2 and Level 3	0	$ 0	0	$ 0
Transfers of liabilities between Level 2 and Level 3	0	0	0	0
Intangible asset and goodwill impairment	$ 0	$ 0	$ 0	$ 0

Goodwill and Intangible Assets (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 234,966	$ 181,566
Accumulated Amortization	148,226	130,454
Net Carrying Amount	$ 86,740	$ 51,112
Developed technology
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	2 years 9 months 18 days	2 years 4 months 24 days
Gross Carrying Amount	$ 157,000	$ 117,000
Accumulated Amortization	90,673	77,449
Net Carrying Amount	$ 66,327	$ 39,551
Customer relationships
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	4 years 10 months 24 days	2 years
Gross Carrying Amount	$ 63,039	$ 51,639
Accumulated Amortization	46,965	44,410
Net Carrying Amount	$ 16,074	$ 7,229
Backlogs
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	0 years
Gross Carrying Amount	$ 400
Accumulated Amortization	$ 400
Trade names
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	1 year 7 months 6 days	2 years 4 months 24 days
Gross Carrying Amount	$ 10,700	$ 9,100
Accumulated Amortization	7,034	5,647
Net Carrying Amount	$ 3,666	$ 3,453
License agreements
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	5 years 6 months	5 years 4 months 24 days
Gross Carrying Amount	$ 2,445	$ 2,445
Accumulated Amortization	1,796	1,661
Net Carrying Amount	$ 649	$ 784
Other intangibles
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	1 month 6 days	7 months 6 days
Gross Carrying Amount	$ 1,382	$ 1,382
Accumulated Amortization	1,358	1,287
Net Carrying Amount	$ 24	$ 95

Goodwill and Intangible Assets (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization in “Cost of revenues: Product”	$ 6,970	$ 4,904	$ 13,465	$ 9,836
Type Of Cost Good Or Service Extensible List	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember	us-gaap:ProductMember
Amortization of intangibles in "Operations"	$ 2,377	$ 1,575	$ 4,307	$ 3,716
Total amortization	$ 9,347	$ 6,479	$ 17,772	$ 13,552

Debt (Components of Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Line Of Credit Facility [Line Items]
Less: unamortized debt issuance costs	$ (2,186)	$ (489)
Current portion of long-term debt	16,814	9,011
Less: unamortized debt issuance costs	(7,334)	(1,261)
Long-term debt, less current portion	348,916	169,739
Total debt	365,730	178,750
Term Loan
Line Of Credit Facility [Line Items]
Current portion of long-term debt	19,000	9,500
Long-term debt, less current portion	$ 356,250	$ 171,000

Debt (Narratives) (Details) - USD ($)		3 Months Ended		6 Months Ended
Debt (Narratives) (Details) - USD ($)	Aug. 09, 2019	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Line Of Credit Facility [Line Items]
Outstanding letters of credit		$ 7,700,000		$ 7,700,000
Interest Expense
Line Of Credit Facility [Line Items]
Amortization of deferred financing costs		700,000	$ 200,000	1,100,000	$ 300,000
2019 Credit Agreement
Line Of Credit Facility [Line Items]
Amortization of deferred financing costs	$ 1,600,000
Deferred financing cost		10,500,000		$ 10,500,000
Debt instrument interest rate				5.00%
2019 Credit Agreement \| Term Loan
Line Of Credit Facility [Line Items]
Credit Facility, term	5 years
Borrowing capacity from Credit Agreement	$ 380,000,000
2019 Credit Agreement \| Revolving Facility
Line Of Credit Facility [Line Items]
Credit Facility, term	5 years
Borrowing capacity from Credit Agreement	$ 75,000,000
Borrowings available under facility		$ 60,300,000		$ 60,300,000
Initial Term Loan \| Applicable Margin for Eurodollar
Line Of Credit Facility [Line Items]
Base rate	0.00%
Initial Term Loan \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.35%
Maximum \| 2019 Credit Agreement
Line Of Credit Facility [Line Items]
Additional incremental loan facility that may be requested	$ 100,000,000
Maximum \| Initial Term Loan \| Applicable Margin for Eurodollar
Line Of Credit Facility [Line Items]
Borrowings, interest rate	3.50%
Maximum \| Initial Term Loan \| Applicable Margin for Base Rate
Line Of Credit Facility [Line Items]
Borrowings, interest rate	2.50%
Maximum \| Initial Term Loan \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.40%
Minimum \| Initial Term Loan \| Applicable Margin for Eurodollar
Line Of Credit Facility [Line Items]
Borrowings, interest rate	1.25%
Minimum \| Initial Term Loan \| Applicable Margin for Base Rate
Line Of Credit Facility [Line Items]
Borrowings, interest rate	0.25%
Minimum \| Initial Term Loan \| Revolving Facility
Line Of Credit Facility [Line Items]
Commitment fee	0.25%

Leases (Narratives) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Leases (Narratives) (Details) - USD ($) $ in Millions	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Lessee Lease Description [Line Items]
Lease option to extend, description			Some lease terms include one or more options to renew.
Lease, existence of option to extend			true
Sublease income	$ 0.6		$ 1.2
Product Revenues	$ 2.3	$ 3.2	$ 4.7	$ 5.9
Minimum [Member]
Lessee Lease Description [Line Items]
Sublease term			5 years
Maximum
Lessee Lease Description [Line Items]
Sublease term			6 years
Facilities \| Minimum [Member]
Lessee Lease Description [Line Items]
Lease term	1 year		1 year
Facilities \| Maximum
Lessee Lease Description [Line Items]
Lease term	9 years		9 years
Equipment \| Minimum [Member]
Lessee Lease Description [Line Items]
Lease term	1 year		1 year
Equipment \| Maximum
Lessee Lease Description [Line Items]
Lease term	5 years		5 years
Vehicles \| Minimum [Member]
Lessee Lease Description [Line Items]
Lease term	1 year		1 year
Vehicles \| Maximum
Lessee Lease Description [Line Items]
Lease term	5 years		5 years
Hardware
Lessee Lease Description [Line Items]
Lease termination rights period			60 days
Lease term	3 years		3 years
Hardware \| Product
Lessee Lease Description [Line Items]
Product Revenues	$ 2.3	$ 3.2	$ 4.7	$ 5.9

Leases (Summary of Activity and Other Information Relating to Operating Leases) (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($)
Leases [Abstract]
Operating lease costs	$ 5,002	$ 10,003
Cash paid for amounts included in the measurement of operating liabilities	5,346	10,831
ROU assets obtained for new lease obligations	$ 1,357	1,422
ROU assets obtained from Aerohive business combination		$ 6,336
Weighted average remaining lease term (in years)	4 years 8 months 12 days	4 years 8 months 12 days
Weighted Average Discount Rate	4.50%	4.50%

Leases (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases
2020 (remaining six months)	$ 10,534
2021	20,298
2022	19,486
2023	15,767
2024	6,370
Thereafter	12,505
Total future minimum lease payments	84,960
Less amount representing interest	8,441
Total operating lease liabilities	76,519
Operating lease liabilities, current	17,921
Operating lease liabilities, non-current	$ 58,598

Leases (Schedule of Minimum Future Rentals on Non-Cancellable Operating Leases) (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Operating Leases
2020	$ 22,733
2021	21,174
2022	20,680
2023	17,828
2024	5,976
Thereafter	16,287
Total lease payments	$ 104,678

Commitments and Contingencies (Narratives) (Details) R$ in Thousands, ¥ in Millions	Dec. 18, 2019 USD ($)	Dec. 18, 2019 BRL (R$)	Jun. 20, 2019 USD ($)	Jun. 20, 2019 CNY (¥)	Dec. 31, 2019 USD ($)	Dec. 31, 2019 BRL (R$)	Dec. 18, 2019 BRL (R$)	Dec. 01, 2019 USD ($)	Dec. 01, 2019 BRL (R$)
Shenzhen Dunjun Technology Ltd. v. Aerohive Networks (Hangzhou) Ltd
Purchase Commitment Excluding Longterm Commitment [Line Items]
Damages claims amount			$ 1,400,000	¥ 10.0
Foreign \| Secretariat of the Federal Revenue Bureau of Brazil
Purchase Commitment Excluding Longterm Commitment [Line Items]
Value of tax credits disallowed					$ 800,000	R$ 3,400
Penalties, court costs, attorneys' fees, and accrued interest								$ 5,000,000.0	R$ 20,200
Tax liability related to the ICMS Tax Assessments, accrued					2,300,000	R$ 9,400
ICMS Tax Assessment settlement amount paid	$ 2,200,000	R$ 8,692
Accrued for payment of the government’s legal fees	$ 157,000						R$ 632
Non-cancelable Inventory and Other Services Purchase Commitments
Purchase Commitment Excluding Longterm Commitment [Line Items]
Purchase commitments					$ 47,700,000

Stockholders' Equity (Narratives) (Details) - USD ($)			1 Months Ended	3 Months Ended	6 Months Ended
Stockholders' Equity (Narratives) (Details) - USD ($)	Jan. 24, 2020	Nov. 07, 2019	Nov. 30, 2019	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2019	Nov. 02, 2018
Class Of Stock [Line Items]
Stock repurchase, authorized amount								$ 60,000,000.0
Maximum amount of common stock may be repurchased in calendar year							$ 35,000,000.0
Payment for intial delivery of shares					$ 25,179,000	$ 15,000,000
Equity forward contract				$ (4,821,000)	$ (4,821,000)
Accelerated Share Repurchase Agreement "November 2019"
Class Of Stock [Line Items]
Payment for intial delivery of shares			$ 30,000,000.0
Initial delivery of shares repurchased			3,850,000
Value of initial share delivery repurchased			$ 25,200,000
Equity forward contract			$ 4,800,000
Forward contract settlement date			Jan. 24, 2020
Additional shares of common stock received	381,505
2013 Equity Incentive Plan
Class Of Stock [Line Items]
Increase in authorized shares for issuance		7,000,000

Stockholders' Equity (Summary of Share Repurchases Under Stock Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Equity [Abstract]
Total number of shares repurchased	3,850,000	2,366,000	3,850,000	2,366,000
Average price paid per share	$ 6.54	$ 6.34	$ 6.54	$ 6.34
Dollar value of shares repurchased	$ 25,179	$ 15,000	$ 25,179	$ 15,000
Dollar value of shares that may yet be repurchased under program	$ 19,821	$ 45,000	$ 19,821	$ 45,000

Employee Benefit Plans (Narratives) (Details) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Quarter $ / shares shares	Dec. 31, 2018 USD ($) $ / shares shares	Jun. 30, 2019 Quarter $ / shares shares	Jun. 30, 2018 Quarter $ / shares shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares outstanding for options and awards	3,152,000		3,152,000		2,719,000
Share-based compensation expense \| $	$ 0	$ 0	$ 0	$ 0
Weighted-average grant-date fair value of options granted (in dollars per share) \| $ / shares			$ 6.70
Awards granted			6,017,000
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation arrangement by share-based payment award, award vesting percentage			The RSUs granted during the six months ended December 31, 2019 vest from the original grant date as to one-third (1/3) on the one-year anniversary and one-twelfth (1/12) each quarter thereafter, subject to continued service to the Company
Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance stock unit vesting, consecutive quarters \| Quarter			2		2	2
Performance stock unit vesting, earnings per share threshold one \| $ / shares					$ 0.20	$ 0.20
Performance stock unit vesting, earnings per share threshold two \| $ / shares			$ 0.09
Performance Shares \| Minimum
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Performance stock unit vesting, earnings per share \| $ / shares					$ 0.20
Executive Officers and Directors \| Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted			566,038
Executive Officers And Other Vice President Level Employee \| Performance Shares
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Awards granted					600,000	600,000
Aerohive 2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares outstanding for options and awards	1,147,232		1,147,232
2014 Employee Stock Purchase Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Weighted-average grant-date fair value of options granted (in dollars per share) \| $ / shares			$ 2.02	$ 2.73
Shares issued under stock purchase plan			1,233,434	1,280,708

Employee Benefit Plans (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 10,958	$ 8,700	$ 19,792	$ 15,525
Cost of Product Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	402	217	652	395
Cost of Service Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	505	677	852	1,022
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	3,260	2,797	5,695	5,139
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	3,511	2,983	7,230	5,342
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,801	$ 2,026	4,884	$ 3,627
Integration Costs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 479		$ 479

Employee Benefit Plans (Summary of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Number of Shares
Non-vested stock awards outstanding at June 30, 2019 \| shares	7,736
Granted \| shares	6,017
Released \| shares	(2,474)
Cancelled \| shares	(890)
Non-vested stock awards outstanding at December 31, 2019 \| shares	10,389
Vested and expected to vest at December 31, 2019 \| shares	9,729
Weighted-Average Grant Date Fair Value
Non-vested stock awards outstanding at June 30, 2019 \| $ / shares	$ 7.67
Granted \| $ / shares	6.86
Released \| $ / shares	7.08
Cancelled \| $ / shares	7.08
Non-vested stock awards outstanding at December 31, 2019 \| $ / shares	7.39
Vested and expected to vest at December 31, 2019 \| $ / shares	$ 7.30
Aggregate Fair Market Value
Non-vested stock awards outstanding at December 31, 2019 \| $	$ 76,570
Vested and expected to vest at December 31, 2019 \| $	$ 71,705

Employee Benefit Plans (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Number of Shares
Options outstanding at June 30, 2019	2,719
Granted	637
Exercised	(181)
Cancelled	(23)
Options outstanding at December 31, 2019	3,152	2,719
Vested and expected to vest at December 31, 2019	3,152
Exercisable at December 31, 2019	1,735
Weighted-Average Exercise Price Per Share
Options outstanding at June 30, 2019	$ 4.61
Granted	6.70
Exercised	4.55
Cancelled	4.75
Options outstanding at December 31, 2019	5.03	$ 4.61
Vested and expected to vest at December 31, 2019	5.03
Exercisable at December 31, 2019	$ 3.80
Weighted-Average Remaining Contractual Term
Options outstanding	3 years 7 months 28 days	3 years 3 months 3 days
Vested and expected to vest at December 31, 2019	3 years 7 months 28 days
Exercisable at December 31, 2019	1 year 7 months 24 days
Aggregate Intrinsic Value
Options outstanding	$ 7,374	$ 5,070
Vested and expected to vest at December 31, 2019	7,374
Exercisable at December 31, 2019	$ 6,194

Employee Benefit Plans (Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan	6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life	6 months	6 months
Risk-free interest rate	1.85%	2.20%
Volatility	43.00%	63.00%

Restructuring Charges, Net of Reversals and Impairment (Narratives) (Details) - USD ($) $ in Thousands	3 Months Ended			6 Months Ended
	Dec. 31, 2019	Sep. 30, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Restructuring Cost And Reserve [Line Items]
Restructuring charges, net of reversals and impairment	$ 6,622		$ 474	$ 12,759	$ 1,282
Facility related charges	3,900			7,900
Severance and benefits charges	2,700			$ 4,900
Impairment of long-lived assets	900
Impairment of other charges	200
Non-Cancelable Lease Payments
Restructuring Cost And Reserve [Line Items]
Restructuring charges related to exited facilities		$ 3,900
Charges for impairment of right-of-use assets	$ 2,800

Restructuring Charges, Net of Reversals and Impairment (Restructuring Liabilities) (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2019 USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning balance	$ 5,323
Period charges	5,879
Period reversals	(1,005)
Reclassification to reduce operating lease assets	(1,764)
Period payments	(7,565)
Ending balance	868
Excess Facilities
Restructuring Cost And Reserve [Line Items]
Beginning balance	1,764
Reclassification to reduce operating lease assets	(1,764)
Severance Benefits
Restructuring Cost And Reserve [Line Items]
Beginning balance	3,559
Period charges	5,879
Period reversals	(1,005)
Period payments	(7,565)
Ending balance	$ 868

Income Taxes (Narratives) (Details) - USD ($)	3 Months Ended		6 Months Ended
Income Taxes (Narratives) (Details) - USD ($)	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Sep. 30, 2018
Operating Loss Carryforwards [Line Items]
Income tax provision (benefit)	$ 1,797,000	$ (5,270,000)	$ 3,392,000	$ (3,868,000)
Remaining state net operating loss	0	$ 0	0	$ 0
Unrecognized tax benefits	25,800,000		25,800,000
Unrecognized tax benefit future impact if recognized	$ 25,800,000		$ 25,800,000
ASU 2016-16 \| Ireland \| Subsidiary
Operating Loss Carryforwards [Line Items]
Deferred tax asset relating to a transfer of certain assets to subsidiary					$ 3,700,000

Net Loss Per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share Diluted [Line Items]
Net income (loss)	$ (23,538)	$ 7,199	$ (61,276)	$ (1,866)
Weighted-average shares used in per share calculation - basic	119,555	117,544	119,891	117,456
Weighted-average shares used in per share calculation - basic and diluted	119,555	119,544	119,891	117,456
Net loss per share - basic and diluted
Net income (loss) per share - basic	$ (0.20)	$ 0.06	$ (0.51)	$ (0.02)
Net income (loss) per share - diluted	$ (0.20)	$ 0.06	$ (0.51)	$ (0.02)
Options to purchase common stock
Earnings Per Share Diluted [Line Items]
Effect of potentially dilutive shares		657
Restricted Stock Units (RSUs)
Earnings Per Share Diluted [Line Items]
Effect of potentially dilutive shares		1,129
Employee Stock Purchase Plan shares
Earnings Per Share Diluted [Line Items]
Effect of potentially dilutive shares		214

Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	15,055	8,408	14,399	3,198
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	3,177	781	3,037	543
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	10,378	6,341	9,862	1,369
Employee Stock Purchase Plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	1,500	1,286	1,500	1,286

Summary of Significant Accounting Policies (Narratives) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jul. 01, 2019
Significant Accounting Policies [Line Items]
Operating lease, right-of-use asset	$ 57,194
Operating lease, liability	$ 76,519
ASU 2016-02
Significant Accounting Policies [Line Items]
Operating lease, right-of-use asset		$ 64,600
Operating lease, liability		$ 79,500

Balance Sheet Accounts (Narratives) (Details)	6 Months Ended
Balance Sheet Accounts (Narratives) (Details)	Dec. 31, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Standard hardware warranty period (in months)	1 year
Standard software warranty period (in days)	90 days
Maximum investment in one obligor or maker (percent)	10.00%

Information about Segments and Geographic Areas (Narratives) (Details)	6 Months Ended
	Dec. 31, 2019 Segment Geographic_Area
Segment Reporting [Abstract]
Number of operating segments \| Segment	1
Number of geographic regions \| Geographic_Area	3

Business Combination (Components of Aggregate Estimated Purchase Consideration) (Details) - Aerohive Networks, Inc. $ in Thousands	Aug. 09, 2019 USD ($)
Business Acquisition [Line Items]
Cash paid to acquire outstanding shares	$ 263,616
Replacement of stock-based awards	3,530
Aggregate estimated purchase consideration	$ 267,146

Balance Sheet Accounts (Summary of Long-term Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Acquisition related deferred payments, less current portion	$ 7,741	$ 9,604
Contingent consideration obligations, less current portion	930	2,688
Other contractual obligations, less current portion	22,529	26,261
Other	3,039	15,597
Total other long-term liabilities	$ 34,239	$ 54,150

Fair Value Measurements (Schedule of Change in Acquisition-related Contingent Consideration Obligations) (Details) - Level 3 Assets and Liabilities $ in Thousands	6 Months Ended
	Dec. 31, 2019 USD ($)
Business Acquisition Contingent Consideration [Line Items]
Beginning balance	$ 6,298
Payments	(2,206)
Accretion on discount	60
Ending balance	$ 4,152

Goodwill and Intangible Assets (Summary of Goodwill) (Details) $ in Thousands	6 Months Ended
	Dec. 31, 2019 USD ($)
Goodwill [Roll Forward]
Balance as of June 30, 2019	$ 138,577
Additions due to acquisition	191,607
Balance at end of period	$ 330,184

Information about Segments and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Segment Reporting Information [Line Items]
Total long-lived assets	$ 266,857	$ 176,308
Americas
Segment Reporting Information [Line Items]
Total long-lived assets	218,301	136,035
EMEA
Segment Reporting Information [Line Items]
Total long-lived assets	28,630	28,744
APAC
Segment Reporting Information [Line Items]
Total long-lived assets	$ 19,926	$ 11,529