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Information about Segments and Geographic Areas (Tables)

9 Months Ended

Mar. 31, 2020

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	March 31, 2020		June 30, 2019
Americas	$	203,865	$	136,035
EMEA		25,417		28,744
APAC		17,573		11,529
Total long-lived assets	$	246,855	$	176,308

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Current assets:
Cash	$ 196,350	$ 169,607
Accounts receivable, net of allowance for doubtful accounts of $1,686 and $1,054, respectively	96,212	174,414
Inventories	66,214	63,589
Prepaid expenses and other current assets	36,737	34,379
Total current assets	395,513	441,989
Property and equipment, net	62,961	73,554
Operating lease right-of-use assets, net	53,015
Intangible assets, net	77,152	51,112
Goodwill	331,084	138,577
Other assets	53,727	51,642
Total assets	973,452	756,874
Current liabilities:
Current portion of long-term debt, net of unamortized debt issuance costs of $2,181 and $489, respectively	16,819	9,011
Accounts payable	52,981	65,704
Accrued compensation and benefits	34,745	51,625
Accrued warranty	15,222	14,779
Current portion of operating lease liabilities	18,197
Current portion of deferred revenue	174,900	144,230
Other accrued liabilities	61,665	70,680
Total current liabilities	374,529	356,029
Deferred revenue, less current portion	96,799	59,012
Long-term debt, less current portion, net of unamortized debt issuance costs of $6,796 and $1,261, respectively	399,704	169,739
Operating lease liabilities, less current portion	53,855
Deferred income taxes	2,233	1,957
Other long-term liabilities	29,932	54,150
Commitments and contingencies (Note 10)
Stockholders’ equity:
Common stock, $.001 par value, 750,000 shares authorized; 126,736 and 121,538 shares issued, respectively; 120,139 and 119,172 shares outstanding, respectively	127	122
Additional paid-in-capital	1,024,836	986,772
Accumulated other comprehensive loss	(6,388)	(2,473)
Accumulated deficit	(959,062)	(853,434)
Treasury stock at cost: 6,597 and 2,366 shares, respectively	(43,113)	(15,000)
Total stockholders’ equity	16,400	115,987
Total liabilities and stockholders’ equity	$ 973,452	$ 756,874

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Statement Of Income And Comprehensive Income [Abstract]
Net loss	$ (44,352)	$ (6,932)	$ (105,628)	$ (8,798)
Other comprehensive (loss) income, net of tax:
Unrealized losses on derivative instruments - interest rate swaps	(958)		(958)
Net change in foreign currency translation adjustments	(2,945)	176	(2,957)	(349)
Other comprehensive income (loss), net of tax:	(3,903)	176	(3,915)	(349)
Total comprehensive loss	$ (48,255)	$ (6,756)	$ (109,543)	$ (9,147)

- Definition

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

+ References + Details

Balance Sheet Accounts (Summary of Product Warranty Liability Activity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance beginning of period	$ 16,209	$ 12,808	$ 14,779	$ 12,807
Warranties assumed due to acquisitions			570
New warranties issued	4,810	4,510	16,271	12,377
Warranty expenditures	(5,797)	(4,112)	(16,398)	(11,978)
Balance end of period	$ 15,222	$ 13,206	$ 15,222	$ 13,206

Employee Benefit Plans (Summary of Stock Option Activity) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Number of Shares
Options outstanding at June 30, 2019	2,719
Granted	637
Exercised	(217)
Cancelled	(125)
Options outstanding at March 31, 2020	3,014	2,719
Vested and expected to vest at March 31, 2020	3,014
Exercisable at March 31, 2020	1,693
Weighted-Average Exercise Price Per Share
Options outstanding at June 30, 2019	$ 4.61
Granted	6.70
Exercised	4.58
Cancelled	6.02
Options outstanding at March 31, 2020	4.99	$ 4.61
Vested and expected to vest at March 31, 2020	4.99
Exercisable at March 31, 2020	$ 3.78
Weighted-Average Remaining Contractual Term
Options outstanding	3 years 4 months 20 days	3 years 3 months 3 days
Vested and expected to vest at March 31, 2020	3 years 4 months 20 days
Exercisable at March 31, 2020	1 year 5 months 4 days
Aggregate Intrinsic Value
Options outstanding	$ 524	$ 5,070
Vested and expected to vest at March 31, 2020	524
Exercisable at March 31, 2020	$ 524

Description of Business and Basis of Presentation

9 Months Ended

Mar. 31, 2020

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 March 31, 2020. The results of operations for the three and nine months ended March 31, 2020 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.

Stockholders' Equity (Narratives) (Details) - USD ($)				1 Months Ended		3 Months Ended	9 Months Ended
Stockholders' Equity (Narratives) (Details) - USD ($)	Jan. 24, 2020	Nov. 07, 2019	Nov. 08, 2018	Feb. 29, 2020	Nov. 30, 2019	Mar. 31, 2020	Mar. 31, 2020	Mar. 31, 2019	Nov. 02, 2018
Class Of Stock [Line Items]
Stock repurchase, authorized amount				$ 100,000,000.0					$ 60,000,000.0
Maximum amount of common stock may be repurchased in calendar year						$ 35,000,000.0	$ 35,000,000.0
Stock repurchase, increase in authorized amount				40,000,000.0
Stock repurchase decrease in authorized amount				$ 30,000,000.0
Stock repurchase, extended period				3 years
Stock repurchase, extended period, effective date				Feb. 05, 2020
Payment for intial delivery of shares							$ 30,000,000	$ 15,000,000
Equity forward contract						$ 4,821,000
Total number of shares repurchased						381,000	4,232,000	2,366,000
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
Total number of shares repurchased							4,231,505
Average cash purchase price paid							$ 7.09
2013 Equity Incentive Plan
Class Of Stock [Line Items]
Increase in authorized shares for issuance		7,000,000
2014 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Increase in authorized shares for issuance			7,500,000

Restructuring Charges, Net of Reversals and Impairment, and Related Charges (Narratives) (Details) $ in Thousands	3 Months Ended			9 Months Ended
	Mar. 31, 2020 USD ($) EMP	Dec. 31, 2019 USD ($)	Sep. 30, 2019 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)
Restructuring And Related Activities [Abstract]
Restructuring charges, net of reversals and impairment	$ 6,648			$ 19,407	$ 1,282
Facility related charges	300			8,200
Severance and benefits charges	6,300	$ 2,700	$ 2,200	$ 11,200
Restructuring charges related to exited facilities	$ 5,800		$ 3,900
Charges for impairment of right-of-use assets		2,800
Impairment of long-lived assets		900
Exited facility related charges		$ 200
Number of employee affected \| EMP	300
Additional severance and benefits charges	$ 500

Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Finished goods	$ 55,790	$ 49,492
Raw materials	10,424	14,097
Total Inventories	$ 66,214	$ 63,589

Debt

9 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt

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

	March 31, 2020			June 30, 2019
Current portion of long-term debt:
Term Loan	$	19,000		$	9,500
Less: unamortized debt issuance costs		(2,181	)		(489	)
Current portion of long-term debt	$	16,819		$	9,011

Long-term debt, less current portion:
Term Loan	$	351,500		$	171,000
Revolving Facility		55,000			—
Less: unamortized debt issuance costs		(6,796	)		(1,261	)
Total long-term debt, less current portion		399,704			169,739
Total debt	$	416,523		$	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 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 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 with 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 March 31, 2020 was 5.1%.

Amortization of deferred financing costs included in “Interest expense” in the accompanying condensed consolidated statements of operations totaled $0.6 million and $0.2 million for the three months ended March 31, 2020 and 2019, and totaled $1.8 million and $0.5 million for the nine months ended March 31, 2020 and 2019, respectively.

The Company had $7.7 million of outstanding letters of credit as of March 31, 2020.

On April 8, 2020, the Company entered into the first amendment to the 2019 Credit Agreement (the “First Amendment”) to waive certain terms and financial covenants of the 2019 Credit Agreement through July 31, 2020. On May 8, 2020, the Company entered into the second amendment to the 2019 Credit Agreement (the “Second Amendment”) which supersedes the First Amendment and provides certain revised terms and financial covenants through March 31, 2021. Subsequent to March 31, 2021, the original terms and financial covenants under the 2019 Credit Agreement will resume in effect. The Second Amendment requires the Company to maintain certain minimum cash requirement and certain financial metrics at the end of each fiscal quarter through March 31, 2021. Under the terms of the Second Amendment, the Company is not permitted to exceed $55.0 million in its outstanding balance under the 2019 Revolving Facility, the applicable margin for Eurodollar rate will be 4.5% and the Company is restricted from pursuing certain activities such as incurring additional debt, stock repurchases, making acquisitions or declaring a dividend, until the Company
is in compliance with the original covenants of the 2019 Credit Agreement.

Leases (Schedule of Minimum Future Rentals on Non-Cancellable Operating Leases) (Details) $ in Thousands	Jun. 30, 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

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		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Earnings Per Share [Abstract]
Net loss	$ (44,352)	$ (6,932)	$ (105,628)	$ (8,798)
Shares used in per share calculation - basic and diluted	119,162	117,944	119,648	117,619
Net loss per share - basic and diluted	$ (0.37)	$ (0.06)	$ (0.88)	$ (0.07)

- Definition

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

+ References + Details

Balance Sheet Accounts (Summary of Long-term Liabilities) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Organization Consolidation And Presentation Of Financial Statements [Abstract]
Acquisition-related deferred payments, less current portion	$ 6,797	$ 9,604
Contingent consideration obligations, less current portion	626	2,688
Other contractual obligations, less current portion	18,707	26,261
Other	3,802	15,597
Total other long-term liabilities	$ 29,932	$ 54,150

Employee Benefit Plans (Shares Reserved for Issuance) (Details) - shares shares in Thousands	Mar. 31, 2020	Jun. 30, 2019
Class Of Stock [Line Items]
Shares reserved for issuance	30,818	29,002
2014 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Shares reserved for issuance	7,364	10,085
Employee Stock Options and Awards Outstanding
Class Of Stock [Line Items]
Shares reserved for issuance	12,086	10,455
2013 Equity Incentive Plan Shares Available for Grant
Class Of Stock [Line Items]
Shares reserved for issuance	11,368	8,462

Net Loss Per Share

9 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Net Loss Per Share

17.	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 per share of basic and diluted (in thousands, except per share data):

	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Net loss	$	(44,352	)	$	(6,932	)	$	(105,628	)	$	(8,798	)
Weighted-average shares used in per share calculation - basic and diluted		119,162			117,944			119,648			117,619

Net loss per share - basic and diluted	$	(0.37	)	$	(0.06	)	$	(0.88	)	$	(0.07	)

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				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Options to purchase common stock		3,090		780		3,055		621
Restricted stock units		9,204		1,907		9,676		888
Employee Stock Purchase Plan shares		742		965		742		965
Total shares excluded		13,036		3,652		13,473		2,474

Business Combination (Components of Aggregate 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

Commitments and Contingencies (Narratives) (Details) ¥ in Millions	Mar. 24, 2020 USD ($)	Jun. 20, 2019 USD ($)	Jun. 20, 2019 CNY (¥)	Mar. 31, 2020 USD ($)
Shenzhen Dunjun Technology Ltd. v. Aerohive Networks (Hangzhou) Ltd
Commitments And Contingencies [Line Items]
Damages claims amount		$ 1,400,000	¥ 10.0
Proven Networks L L C V Extreme Networks Inc
Commitments And Contingencies [Line Items]
Number of patents allegedly infringed	3
Non-cancelable Inventory and Other Services Purchase Commitments
Commitments And Contingencies [Line Items]
Purchase commitments				$ 37,100,000

Income Taxes

9 Months Ended

Mar. 31, 2020

Income Tax Disclosure [Abstract]

Income Taxes

16.	Income Taxes

For the three months ended March 31, 2020 and 2019, the Company recorded an income tax provision of $1.6 million and $1.9 million, respectively. For the nine months ended March 31, 2020 and 2019, the Company recorded an income tax provision of $4.9 million and an income tax benefit of $2.0 million, respectively.

The income tax provisions for the three and nine months ended March 31, 2020 and 2019, 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 wireless local area network (“WLAN”) business from Zebra Technologies Corporation, the Campus Fabric Business from Avaya and the Data Center Business from Brocade, and (4) state taxes in jurisdictions where the Company has no remaining state Net Operating Losses. In addition, the nine months ended March 31, 2019 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 nine months ended March 31, 2020 and 2019, respectively and therefore may not reflect the annual effective tax rate.

On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”) was signed into law in the United States. The CARES Act, among other things, includes modifications to net operating loss carryforward provisions and the net interest expense deduction, and deferment of employer social security tax payments. The Company has evaluated the provisions of the CARES Act and how certain elections may impact our financial position and results of operations, and have determined the enactment of the CARES Act did not have a material impact to our income tax provision for the three months ended March 31, 2020, or to our net deferred tax assets as of March 31, 2020.

In the first quarter of the Company’s 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, U.S. generally accepted accounting principles 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 was 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 $24.6 million of unrecognized tax benefits as of March 31, 2020. The future impact of the unrecognized tax benefit of $24.6 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.

Balance Sheet Accounts (Components of Property and Equipment) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 172,173	$ 163,495
Less: accumulated depreciation and amortization	(109,212)	(89,941)
Property and equipment, net	62,961	73,554
Computers and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	75,134	72,309
Purchased software
Property, Plant and Equipment [Line Items]
Property and equipment, gross	33,467	29,126
Office equipment, furniture and fixtures
Property, Plant and Equipment [Line Items]
Property and equipment, gross	11,405	10,815
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 52,167	$ 51,245

Fair Value Measurements (Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($)	Mar. 31, 2020	Jun. 30, 2019
Level 1
Assets
Total assets measured at fair value	$ 0	$ 0
Liabilities
Total liabilities measured at fair value	0	0
Level 3
Liabilities
Acquisition-related contingent consideration obligations		$ 6,300,000
Recurring
Assets
Foreign currency derivatives	231,000
Total assets measured at fair value	231,000
Liabilities
Foreign currency derivatives	97,000
Interest rate swaps	958,000
Acquisition-related contingent consideration obligations	2,940,000
Total liabilities measured at fair value	3,995,000
Recurring \| Level 2
Assets
Foreign currency derivatives	231,000
Total assets measured at fair value	231,000
Liabilities
Foreign currency derivatives	97,000
Interest rate swaps	958,000
Total liabilities measured at fair value	1,055,000
Recurring \| Level 3
Liabilities
Acquisition-related contingent consideration obligations	2,940,000
Total liabilities measured at fair value	$ 2,940,000

Fair Value Measurements (Schedule of Change in Acquisition-related Contingent Consideration Obligations) (Details) - Level 3 Assets and Liabilities $ in Thousands	9 Months Ended
	Mar. 31, 2020 USD ($)
Business Acquisition Contingent Consideration [Line Items]
Beginning balance	$ 6,298
Payments	(3,448)
Accretion on discount	90
Ending balance	$ 2,940

Business Combination (Schedule of Identifiable Intangible Assets Acquired as Part of Acquisition) (Details) - Aerohive Networks, Inc. $ in Thousands	9 Months Ended
	Mar. 31, 2020 USD ($)
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 52,500
Developed technology
Acquired Finite Lived Intangible Assets [Line Items]
Amount	$ 39,100
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

Leases (Narratives) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
Leases (Narratives) (Details) - USD ($) $ in Millions	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
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		$ 1.9
Product Revenues	$ 2.2	$ 2.7	$ 6.9	$ 8.6
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	8 years		8 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	$ 2.2	$ 2.7	$ 6.9	$ 8.6

Employee Benefit Plans (Summary of Stock Award Activity) (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares
Number of Shares
Non-vested stock awards outstanding at June 30, 2019 \| shares	7,736
Granted \| shares	6,299
Released \| shares	(3,365)
Cancelled \| shares	(1,598)
Non-vested stock awards outstanding at March 31, 2020 \| shares	9,072
Vested and expected to vest at March 31, 2020 \| shares	6,397
Weighted-Average Grant Date Fair Value
Non-vested stock awards outstanding at June 30, 2019 \| $ / shares	$ 7.67
Granted \| $ / shares	6.83
Released \| $ / shares	7.11
Cancelled \| $ / shares	7.28
Non-vested stock awards outstanding at March 31, 2020 \| $ / shares	7.40
Vested and expected to vest at March 31, 2020 \| $ / shares	$ 7.26
Aggregate Fair Market Value
Non-vested stock awards outstanding at March 31, 2020 \| $	$ 28,033
Vested and expected to vest at March 31, 2020 \| $	$ 25,947

Stockholders' Equity

9 Months Ended

Mar. 31, 2020

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 (as amended, 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 8, 2020, to extend the Restated Rights Plan through May 31, 2021, subject to ratification by a majority of the stockholders of the Company at the next annual shareholders meeting.

Equity Incentive Plan

The Board 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.

Employee Stock Purchase Plan

The Board unanimously approved an amendment to the 2014 Employee Stock Purchase Plan to increase the maximum number of shares that will be available for sale thereunder by 7,500,000 shares. The amendment was ratified by a majority of the stockholders of the Company at the annual meeting of stockholders held on November 8, 2018.

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 February 2020, the Board increased the authorization to repurchase by $40.0 million to $100.0 million and extended the period for repurchase for three years from February 5, 2020. The maximum repurchase in any year was decreased to $30.0 million.

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. Total shares repurchased under the November 2019 ASR were 4,231,505 shares at an average cash purchase price paid of $7.09.

The following table summarizes stock award activity representing the cost recorded for the three and nine months ended March 31, 2020 and 2019 (in thousands, except per share amounts).

	Three Months Ended				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Total number of shares repurchased		381		—		4,232		2,366
Average price paid per share	$	12.64	$	—	$	7.09	$	6.34
Total cost of shares repurchased	$	4,821	$	—	$	30,000	$	15,000
Dollar value of shares that may yet be repurchased under program	$	55,000	$	45,000	$	55,000	$	45,000

Net Loss Per Share (Schedule of Anti-Dilutive Shares Excluded from Earnings Per Share Calculation) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	13,036	3,652	13,473	2,474
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	3,090	780	3,055	621
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	9,204	1,907	9,676	888
Employee Stock Purchase Plan shares
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of EPS	742	965	742	965

Business Combinations (Summary of Unaudited Pro Forma Financial Information) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Business Acquisition Pro Forma Information [Abstract]
Net revenues	$ 210,255	$ 282,229	$ 746,301	$ 850,337
Net loss	$ (37,873)	$ (23,272)	$ (66,720)	$ (83,051)
Net loss per share - basic and diluted	$ (0.32)	$ (0.20)	$ (0.56)	$ (0.71)
Shares used in per share calculation - basic and diluted	119,162	117,944	119,648	117,619

Fair Value Measurements

9 Months Ended

Mar. 31, 2020

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 following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020 (in thousands). The Company had one fair value item at June 30, 2019, a level 3 acquisition-related contingent consideration obligation of $6.3 million.

March 31, 2020	Level 1		Level 2		Level 3		Total
Assets
Foreign currency derivatives	$	—	$	231	$	—	$	231
Total assets measured at fair value	$	—	$	231	$	—	$	231
Liabilities
Foreign currency derivatives	$	—	$	97	$	—	$	97
Interest rate swaps	$	—	$	958	$	—	$	958
Acquisition-related contingent consideration obligations	$	—	$	—	$	2,940	$	2,940
Total liabilities measured at fair value	$	—	$	1,055	$	2,940	$	3,995

Level 1 Assets and Liabilities:

The Company has no Level 1 assets or liabilities at March 31, 2020 or June 30, 2019.

Level 2 Assets and Liabilities:

The fair value of derivative instruments under our foreign currency contracts is estimated based on valuations provided by alternative pricing sources supported by observable inputs which is considered Level 2.

As of March 31, 2020, forward foreign currency contracts had a notional principal amount of $13.3 million and for the three and nine months ended March 31, 2020, there were gains of $0.1 million. These contracts have maturities of less than 30 days. Changes in the fair value of these foreign exchange forward contracts are included in other income or expense. See Note 14, Derivatives and Hedging, for additional information.

The fair values of the interest rate swaps are based upon inputs corroborated by observable market data which is considered Level 2. As of March 31, 2020, the Company had entered into multiple interest rate swap contracts with the total notional amount of $200 million. Changes in fair value of these contracts are recorded as a component of accumulated other comprehensive income (loss). As of March 31, 2020, these contracts had an unrealized loss of $1.0 million. See Note 14, Derivatives and Hedging, for additional information.

The fair value of the borrowings under the 2019 Credit Agreement (as defined below) 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 2019 Credit Agreement, the fair value approximates the face amount of the Company’s indebtedness of $425.5 million and $180.5 million as of March 31, 2020, and June 30, 2019, respectively.

Level 3 Assets and Liabilities:

At March 31, 2020 and June 30, 2019, the Company reflected one liability measured at fair value of $2.9 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):

	Nine Months Ended
	March 31, 2020
Beginning balance		6,298
Payments		(3,448	)
Accretion on discount		90
Ending balance	$	2,940

There were no transfers of assets or liabilities between Level 1, Level 2 and Level 3 during the three and nine months ended March 31, 2020, or 2019. There were no impairments recorded for the three and nine months ended March 31, 2020, or 2019.

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 nine months ended March 31, 2020,or 2019.

- 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

Income Taxes (Narratives) (Details) - USD ($)	3 Months Ended		9 Months Ended
Income Taxes (Narratives) (Details) - USD ($)	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Sep. 30, 2018
Operating Loss Carryforwards [Line Items]
Income tax provision (benefit)	$ 1,557,000	$ 1,877,000	$ 4,949,000	$ (1,991,000)
Remaining state net operating loss	0	$ 0	0	$ 0
Unrecognized tax benefits	24,600,000		24,600,000
Unrecognized tax benefit future impact if recognized	$ 24,600,000		$ 24,600,000
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

Derivatives and Hedging

9 Months Ended

Mar. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivatives and Hedging

14.	Derivativesand Hedging

Foreign Exchange Forward Contracts

The Company uses derivative financial instruments to manage exposures to foreign currency. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The fair value of the Company’s derivatives in a gain position are recorded in “Prepaid expenses and other current assets” and derivatives in a loss position are recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets. Changes in the fair value of derivatives are recorded in “Other income (expense), net” in the accompanying condensed consolidated statements of operations. The Company enters into foreign exchange forward contracts to mitigate the effect of gains and losses generated by foreign currency transactions related to certain operating expenses and re-measurement of certain assets and liabilities denominated in foreign currencies. These derivatives do not qualify as hedges.

As of March 31, 2020, foreign exchange forward contracts had a notional principal amount of $13.3 million and as of the three and nine months ended March 31, 2020 there were gains of $0.1 million. These contracts have maturities of less than 30 days. Changes in the fair value of these foreign exchange forward contracts are offset largely by re-measurement of the underlying assets and liabilities. As of March 31, 2019, the Company did not have any foreign exchange forward contracts outstanding.

Foreign currency transactions gains and losses from operations was a gain of $0.9 million and a loss of less than $0.1 million for the three months ended March 31, 2020 and 2019, respectively. Foreign currency transactions gains and losses from operations was a loss of $1.1 million and a gain of $0.1 million for the nine months ended March 31, 2020 and 2019, respectively.

Interest Rate Swaps

The Company is exposed to interest rate risk on its debt. The Company enters into interest rate swap contracts to effectively manage the impact of fluctuations of interest rate changes on its outstanding debt which has floating interest rate. The Company does not enter into derivative contracts for trading or speculative purposes.

At the inception date of the derivative contract, the Company performs an assessment of these contracts and has designated these contracts as cash flow hedges. Interest rate swaps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreement without exchange of the underlying notional amount. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, by performing qualitative and quantitative assessment, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flow of hedged items. Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in other comprehensive income (loss). When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. In accordance with ASC 815 “Derivatives and Hedging,” the Company may prospectively discontinue the hedge accounting for an existing hedge if the applicable criteria are no longer met, the derivative instrument expires, is sold, terminated or exercised or if the Company removes the designation of the respective cash flow hedge. In those circumstances, the net gain or loss remains in accumulated other comprehensive income (loss) and is reclassified into earnings in the same period or periods during which the hedged forecasted transaction affects earnings, unless the forecasted transaction is no longer probable in which case the net gain or loss is reclassified into earnings immediately.

During the three months ended March 31, 2020, the Company entered into multiple interest rate swap contracts, designated as cash flow hedges, to hedge the variability of cash flows in interest payments associated with the Company’s various tranches of floating-rate debt. As of March 31, 2020, the total notional amount of these interest rate swaps was $200 million and had maturity dates through April 2023. As of March 31, 2020, these contracts had an unrealized loss of $1.0 million which is recorded in “Other accrued liabilities” in the accompanying condensed consolidated balance sheets and recorded in accumulated other comprehensive income (loss) in the condensed consolidated financial statements. The Company did not have any interest rate swaps as of June 30, 2019. Realized gains and losses will be recognized as they accrue in interest expense. Amounts reported in accumulated other comprehensive income related to these cash flow hedges will be reclassified to interest expense as interest payments are made on our variable rate debt. The Company estimates that $0.1 million will be reclassified to interest expense over the next twelve months. The classification and fair value of these cash flow hedges are discussed in Note 6, Fair Value Measures.

Goodwill and Intangible Assets

9 Months Ended

Mar. 31, 2020

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):

	March 31, 2020
Balance as of June 30, 2019	$	138,577
Additions due to acquisition (see Note 4)		192,507
Balance at end of period	$	331,084

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
March 31, 2020
Developed technology	2.6 years	$	156,100	$	97,193	$	58,907
Customer relationships	4.8 years		63,039		48,281		14,758
Backlog	— years		400		400		—
Trade names	1.5 years		10,700		7,794		2,906
License agreements	5.6 years		2,445		1,864		581
Other intangibles	— years		1,382		1,382		—
Total intangibles, net		$	234,066	$	156,914	$	77,152

	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				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Amortization in “Cost of revenues: Product and Service”	$	6,629	$	4,890	$	20,094	$	14,726
Amortization of intangibles in "Operations"		2,059		1,292		6,366		5,008
Total amortization	$	8,688	$	6,182	$	26,460	$	19,734

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

Information about Segments and Geographic Areas (Schedule of Long Lived Assets by Segment) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Segment Reporting Information [Line Items]
Total long-lived assets	$ 246,855	$ 176,308
Americas
Segment Reporting Information [Line Items]
Total long-lived assets	203,865	136,035
EMEA
Segment Reporting Information [Line Items]
Total long-lived assets	25,417	28,744
APAC
Segment Reporting Information [Line Items]
Total long-lived assets	$ 17,573	$ 11,529

Fair Value Measurements (Narratives) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Jun. 30, 2019
Interest rate swap contracts
Assets/Liabilities
Notional principal amount of forward foreign currency contracts	$ 200,000,000		$ 200,000,000
Other Comprehensive Income (Loss) \| Interest rate swap contracts
Assets/Liabilities
Unrealized loss on interest rate cash flow hedges			(1,000,000.0)
Not Designated as Hedging Instrument \| Forward Foreign Currency Contracts
Assets/Liabilities
Notional principal amount of forward foreign currency contracts	$ 13,300,000		$ 13,300,000
Maximum maturities for contracts	30 days		30 days
Gain (loss) on foreign currency derivative instruments	$ 100,000		$ 100,000
Level 1 Assets and Liabilities
Assets/Liabilities
Assets, fair value	0		0		$ 0
Liabilities, fair value	0		0		0
Level 2 Assets and Liabilities
Assets/Liabilities
Long-term debt, fair value	425,500,000		425,500,000		180,500,000
Transfers of assets between Level 1 and Level 2	0	$ 0	0	$ 0
Transfers of liabilities between Level 1 and Level 2	0	0	0	0
Level 3 Assets and Liabilities
Assets/Liabilities
Acquisition-related contingent consideration obligations					6,300,000
Acquisition-related contingent consideration obligations	2,940,000		2,940,000		$ 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

Revenues (Narratives) (Details) $ in Millions	3 Months Ended		9 Months Ended
Revenues (Narratives) (Details) $ in Millions	Mar. 31, 2020 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2020 USD ($) Distribution_Channels	Mar. 31, 2019 USD ($)	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	$ 271.7		$ 271.7
Revenue recognized for deferred revenue balance	64.3	$ 54.8	116.7	$ 110.8
Lease revenue	2.2	2.7	$ 6.9	8.6
Commission Fees
Disaggregation Of Revenue [Line Items]
Revenue, practical expedient, incremental cost of obtaining contract [true false]			true
Contract costs capitalized, balances amount	$ 7.4		$ 7.4		$ 6.5
Contract costs capitalized, amortization period	3 years		3 years
Contract costs capitalized, amortization method			straight-line basis
Contract costs capitalized, amortization expense	$ 1.1	$ 0.8	$ 4.1	$ 2.2

Employee Benefit Plans (Tables)

9 Months Ended

Mar. 31, 2020

Share Based Compensation [Abstract]

Shares Reserved for Issuance

The Company had reserved for issuance as of the dates noted (in thousands):

	March 31, 2020		June 30, 2019
2013 Equity Incentive Plan shares available for grant		11,368		8,462
Employee stock options and awards outstanding		12,086		10,455
2014 Employee Stock Purchase Plan		7,364		10,085
Total shares reserved for issuance		30,818		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				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Cost of product revenue	$	280	$	223	$	932	$	618
Cost of service revenue		368		648		1,220		1,670
Research and development		2,518		2,814		8,213		7,953
Sales and marketing		1,338		3,187		8,568		8,529
General and administrative		2,639		1,942		7,523		5,569
Integration costs		—		—		479		—
Total share-based compensation expense	$	7,143	$	8,814	$	26,935	$	24,339

Summary of Stock Award Activity

The following table summarizes stock award activity for the nine months ended March 31, 2020 (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		6,299			6.83
Released		(3,365	)		7.11
Cancelled		(1,598	)		7.28
Non-vested stock awards outstanding at March 31, 2020		9,072		$	7.40	$	28,033
Vested and expected to vest at March 31, 2020		6,397		$	7.26	$	25,947

Summary of Stock Option Activity

The following table summarizes stock option activity for the nine months ended March 31, 2020 (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		(217	)		4.58
Cancelled		(125	)		6.02
Options outstanding at March 31, 2020		3,014		$	4.99		3.39	$	524
Vested and expected to vest at March 31, 2020		3,014		$	4.99		3.39	$	524
Exercisable at March 31, 2020		1,693		$	3.78		1.43	$	524

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 issued under the ESPP during the following periods:

	Employee Stock Purchase Plan						Employee Stock Purchase Plan
	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Expected life	0.5 years			0.5 years			0.5 years			0.5 years
Risk-free interest rate		1.56	%		2.46	%		1.71	%		2.35	%
Volatility		43	%		75	%		43	%		70	%
Dividend yield		—	%		—	%		—	%		—	%

Revenues (Schedule of Revenue Disaggregated by Sales Channel and Geographic Region) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 209,519	$ 250,864	$ 732,497	$ 743,430
Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	95,164	130,685	376,438	392,653
Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	114,355	120,179	356,059	350,777
United States
Disaggregation Of Revenue [Line Items]
Net Revenues	95,057	128,167	349,113	344,111
United States \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	38,666	72,071	168,755	172,752
United States \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	56,391	56,096	180,358	171,359
Other Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	9,058	10,519	31,839	34,387
Other Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	3,277	4,930	15,496	17,893
Other Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	5,781	5,589	16,343	16,494
Total Americas
Disaggregation Of Revenue [Line Items]
Net Revenues	104,115	138,686	380,952	378,498
Total Americas \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	41,943	77,001	184,251	190,645
Total Americas \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	62,172	61,685	196,701	187,853
EMEA
Disaggregation Of Revenue [Line Items]
Net Revenues	83,609	83,910	281,346	288,728
EMEA \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	49,979	48,834	173,825	190,041
EMEA \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	33,630	35,076	107,521	98,687
APAC
Disaggregation Of Revenue [Line Items]
Net Revenues	21,795	28,268	70,199	76,204
APAC \| Distributor
Disaggregation Of Revenue [Line Items]
Net Revenues	3,242	4,850	18,362	11,967
APAC \| Direct
Disaggregation Of Revenue [Line Items]
Net Revenues	$ 18,553	$ 23,418	$ 51,837	$ 64,237

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Mar. 31, 2020	May 05, 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	Mar. 31, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Trading Symbol	EXTR
Amendment Flag	false
Entity Common Stock, Shares Outstanding		120,209,507
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

Debt (Tables)

9 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Components of Debt

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

	March 31, 2020			June 30, 2019
Current portion of long-term debt:
Term Loan	$	19,000		$	9,500
Less: unamortized debt issuance costs		(2,181	)		(489	)
Current portion of long-term debt	$	16,819		$	9,011

Long-term debt, less current portion:
Term Loan	$	351,500		$	171,000
Revolving Facility		55,000			—
Less: unamortized debt issuance costs		(6,796	)		(1,261	)
Total long-term debt, less current portion		399,704			169,739
Total debt	$	416,523		$	178,750

Information about Segments and Geographic Areas

9 Months Ended

Mar. 31, 2020

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 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	March 31, 2020		June 30, 2019
Americas	$	203,865	$	136,035
EMEA		25,417		28,744
APAC		17,573		11,529
Total long-lived assets	$	246,855	$	176,308

Derivatives and Hedging (Narratives) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Derivative [Line Items]
Foreign currency transactions realized gain (loss)	$ 0.9	$ 0.1	$ 1.1	$ 0.1
Interest Rate Swap
Derivative [Line Items]
Notional principal amount of forward foreign currency contracts	200.0		$ 200.0
Maturity date			Apr. 30, 2023
Unrealized loss on interest rate cash flow hedges			$ 1.0
Estimated interest expense over next twelve months			0.1
Not Designated as Hedging Instrument \| Forward Foreign Currency Contracts
Derivative [Line Items]
Notional principal amount of forward foreign currency contracts	13.3		13.3
Foreign currency transactions realized gain (loss)	$ 0.1		$ 0.1
Maximum maturities for contracts			30 days

Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Current assets:
Allowance for doubtful accounts	$ 1,686	$ 1,054
Current liabilities:
Net of unamortized debt issuance costs	2,181	489
Noncurrent liabilities:
Net of unamortized debt issuance costs	$ 6,796	$ 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	126,736,000	121,538,000
Common stock, shares outstanding	120,139,000	119,172,000
Treasury stock, shares	6,597,000	2,366,000

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019
Cash flows from operating activities:
Net loss	$ (105,628)	$ (8,798)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation	21,719	20,026
Amortization of intangible assets	26,460	19,734
Reduction in carrying amount of right-of-use asset	12,469
Provision for doubtful accounts	1,267	1,369
Share-based compensation	26,935	24,339
Deferred income taxes	1,293	(6,030)
Non-cash restructuring and impairment charges	7,622
Non-cash interest expense	3,070	2,308
Other	(395)	15
Changes in operating assets and liabilities, net of acquisitions
Accounts receivable	88,688	69,328
Inventories	16,373	6,222
Prepaid expenses and other assets	438	(6,993)
Accounts payable	(21,530)	(26,348)
Accrued compensation and benefits	(24,009)	(17,502)
Operating lease liabilities	(13,222)
Deferred revenue	43	13,197
Other current and long-term liabilities	(14,532)	(11,365)
Net cash provided by operating activities	27,061	79,502
Cash flows from investing activities:
Capital expenditures	(12,630)	(16,181)
Business acquisitions, net of cash acquired	(219,458)
Maturities and sales of investments	45,249	727
Net cash used in investing activities	(186,839)	(15,454)
Cash flows from financing activities:
Borrowings under Revolving Facility	55,000
Borrowings under Term Loan	199,500
Repayments of debt	(29,767)	(17,403)
Loan fees on borrowings	(10,514)	(545)
Repurchase of common stock	(30,000)	(15,000)
Proceeds from issuance of common stock, net of tax withholding	9,491	13,044
Payment of contingent consideration obligations	(3,448)	(5,274)
Deferred payments on an acquisition	(3,000)	(3,000)
Net cash provided by (used in) financing activities	187,262	(28,178)
Foreign currency effect on cash	(741)	(196)
Net increase in cash	26,743	35,674
Cash at beginning of period	169,607	121,139
Cash at end of period	$ 196,350	$ 156,813

Summary of Significant Accounting Policies (Narratives) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jul. 01, 2019
Significant Accounting Policies [Line Items]
Operating lease, right-of-use asset	$ 53,015
Operating lease, liability	$ 72,052
ASU 2016-02
Significant Accounting Policies [Line Items]
Operating lease, right-of-use asset		$ 64,600
Operating lease, liability		$ 79,500

Summary of Significant Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2020

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

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 $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. The standard was adopted on July 1, 2019 and did not have a material impact on the Company’s financial statements upon adoption. During the third quarter of fiscal 2020, the Company entered into interest rate swap agreements to manage its exposure to fluctuations of interest rates associated with its debt. See Note 14, Derivatives and Hedging, for additional information.

In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220), which allows the reclassification from Additional Other Comprehensive Income (“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.

In March 2020, the FASB issued ASU 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting,” which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by the discontinuation of the London Interbank Offered Rate (LIBOR) and other interbank offered rates. This guidance is

effective upon issuance and can be applied to applicable contract modifications through December 31, 2022. The Company elected to apply the amendments in this update to eligible hedging relationships existing as of January 1, 2020 or entered into during the three months ended March 31, 2020 in accordance with the transition options available. This guidance did not have any impact upon adoption. The Company will apply this guidance to transactions or modifications of these arrangements as appropriate through transition period.

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 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 fiscal years beginning after December 15, 2019, including interim periods within the fiscal year. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and related disclosures. This guidance is effective for the Company’s 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 fiscal years beginning after December 15, 2019, including interim periods within the fiscal year. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and related disclosures. This guidance is effective for the Company’s 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 fiscal years beginning after December 15, 2020, including interim periods within the fiscal year. The Company is currently evaluating the impact the new standard will have on its condensed consolidated financial statements and related disclosures. This guidance is effective for the Company’s fiscal year 2022, beginning on July 1, 2021.

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 the customer receives and consumes the benefits provided. 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 March 31, 2020, the Company had $271.7 million of remaining performance obligations, which are primarily comprised of deferred maintenance and SaaS revenue. The Company expects to recognize approximately 24 percent of its deferred revenue as revenue in fiscal 2020, an additional 46 percent in fiscal 2021 and 30 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 March 31, 2020 and 2019 that was included in the deferred revenue balance at the beginning of each period was $64.3 million and $54.8 million, respectively. Revenue recognized for the nine months ended March 31, 2020 and 2019 that was included in the deferred revenue balance at the beginning of each period was $116.7 million and $110.8 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 $7.4 million and $6.5 million at March 31, 2020 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 March 31, 2020 and 2019, was $1.1 million and $0.8 million, respectively. Amortization recognized during the nine months ended March 31, 2020 and 2019 was $4.1 million and $2.2 million, respectively.

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
	March 31, 2020						March 31, 2019
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	38,666	$	56,391	$	95,057	$	72,071	$	56,096	$	128,167
Other		3,277		5,781		9,058		4,930		5,589		10,519
Total Americas		41,943		62,172		104,115		77,001		61,685		138,686
EMEA		49,979		33,630		83,609		48,834		35,076		83,910
APAC		3,242		18,553		21,795		4,850		23,418		28,268
Total net revenues	$	95,164	$	114,355	$	209,519	$	130,685	$	120,179	$	250,864

	Nine Months Ended
	March 31, 2020						March 31, 2019
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	168,755	$	180,358	$	349,113	$	172,752	$	171,359	$	344,111
Other		15,496		16,343		31,839		17,893		16,494		34,387
Total Americas		184,251		196,701		380,952		190,645		187,853		378,498
EMEA		173,825		107,521		281,346		190,041		98,687		288,728
APAC		18,362		51,837		70,199		11,967		64,237		76,204
Total net revenues	$	376,438	$	356,059	$	732,497	$	392,653	$	350,777	$	743,430

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):

	March 31, 2020		June 30, 2019
Finished goods	$	55,790	$	49,492
Raw materials		10,424		14,097
Total Inventories	$	66,214	$	63,589

Property and Equipment, Net

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

	March 31, 2020			June 30, 2019
Computers and equipment	$	75,134		$	72,309
Purchased software		33,467			29,126
Office equipment, furniture and fixtures		11,405			10,815
Leasehold improvements		52,167			51,245
Total property and equipment		172,173			163,495
Less: accumulated depreciation and amortization		(109,212	)		(89,941	)
Property and equipment, net	$	62,961		$	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. 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 nine months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Balance beginning of period	$	16,209		$	12,808		$	14,779		$	12,807
Warranties assumed due to acquisitions		—			—			570			—
New warranties issued		4,810			4,510			16,271			12,377
Warranty expenditures		(5,797	)		(4,112	)		(16,398	)		(11,978	)
Balance end of period	$	15,222		$	13,206		$	15,222		$	13,206

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):

	March 31, 2020		June 30, 2019
Acquisition-related deferred payments, less current portion	$	6,797	$	9,604
Contingent consideration obligations, less current portion		626		2,688
Other contractual obligations, less current portion		18,707		26,261
Other		3,802		15,597
Total other long-term liabilities	$	29,932	$	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.

Earnings Per Share

Stockholders' Equity (Tables)

9 Months Ended

Mar. 31, 2020

Equity [Abstract]

Summary of Share Repurchases Under Stock Award Activity

The following table summarizes stock award activity representing the cost recorded for the three and nine months ended March 31, 2020 and 2019 (in thousands, except per share amounts).

	Three Months Ended				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Total number of shares repurchased		381		—		4,232		2,366
Average price paid per share	$	12.64	$	—	$	7.09	$	6.34
Total cost of shares repurchased	$	4,821	$	—	$	30,000	$	15,000
Dollar value of shares that may yet be repurchased under program	$	55,000	$	45,000	$	55,000	$	45,000

Commitments and Contingencies

9 Months Ended

Mar. 31, 2020

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 March 31, 2020, the Company had commitments to purchase $37.1 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 March 31, 2020.

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 June 8, 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. After a hearing on January 28, 2020, the Court rendered a decision in favor of the Company fully dismissing Orckit’s complaint. Orckit filed a notice of appeal on March 13, 2020.

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. The Company filed a nullity action with the German Federal Patent Court, seeking to invalidate the asserted patent. Orckit has filed its formal opposition to the Company’s nullity action on March 11, 2020. No hearing has been scheduled yet in this case, which was split from the original.

The Company believes that all claims in both cases are without merit and intends to defend 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. In each lawsuit, GIA has accused a number of Summit switching products of infringing one of six patents (the “Asserted Patents”). One trial has been postponed, and the trials for the rest of the cases have not yet been scheduled. Additionally, the Company 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 five of the Asserted Patents. The Company has appealed three of these rulings. All the claims in one case have been fully invalidated.

The Company disputes GIA’s claims and intends to defend the matter vigorously. Given the uncertainty of litigation and the preliminary stage of the case, the Company 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 a Chinese patent 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.

Proven Networks, LLC v. Extreme Networks, Inc.

On March 24, 2020, Proven Networks, LLC (“Proven”) filed a patent infringement lawsuit against the Company in the Northern District of California. The lawsuit alleges direct and indirect infringement of three U.S. patents based on the Company’s manufacture, use, sale, offer for sale, and/or importation into the United States of Extreme Analytics Extreme XOS, and certain network devices equipped with the Extreme XOS operating system. Proven seeks injunctive relief, unspecified damages, pre- and post-judgment interest, and attorneys’ fees. Given the uncertainty of litigation and the preliminary stage of the case, 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 liability 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 governing documents and 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.

Revenues (Tables)

9 Months Ended

Mar. 31, 2020

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
	March 31, 2020						March 31, 2019
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	38,666	$	56,391	$	95,057	$	72,071	$	56,096	$	128,167
Other		3,277		5,781		9,058		4,930		5,589		10,519
Total Americas		41,943		62,172		104,115		77,001		61,685		138,686
EMEA		49,979		33,630		83,609		48,834		35,076		83,910
APAC		3,242		18,553		21,795		4,850		23,418		28,268
Total net revenues	$	95,164	$	114,355	$	209,519	$	130,685	$	120,179	$	250,864

	Nine Months Ended
	March 31, 2020						March 31, 2019
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	168,755	$	180,358	$	349,113	$	172,752	$	171,359	$	344,111
Other		15,496		16,343		31,839		17,893		16,494		34,387
Total Americas		184,251		196,701		380,952		190,645		187,853		378,498
EMEA		173,825		107,521		281,346		190,041		98,687		288,728
APAC		18,362		51,837		70,199		11,967		64,237		76,204
Total net revenues	$	376,438	$	356,059	$	732,497	$	392,653	$	350,777	$	743,430

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		Nine Months Ended
	March 31, 2020	March 31, 2019	March 31, 2020	March 31, 2019
Tech Data Corporation	19%	14%	16%	17%
Jenne Corporation	*	21%	13%	15%
Westcon Group Inc.	19%	12%	14%	13%

* Less than 10% of net revenue.

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


	March 31, 2020			June 30, 2019
Tech Data Corporation		11	%		12	%
Jenne Corporation		10	%		35	%
Westcon Group Inc.		14	%	*

* Less than 10% of accounts receivable.

Leases

9 Months Ended

Mar. 31, 2020

Leases [Abstract]

Leases

Lessee Considerations

The Company leases 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 eight 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		Nine Months Ended
	March 31, 2020		March 31, 2020
Operating lease costs	$	4,871	$	14,874
Variable lease costs		1,613		4,548
Cash paid for amounts included in the measurement of operating liabilities		5,328		16,159
ROU assets obtained for new lease obligations		1,103		2,525
ROU assets obtained from Aerohive business combination		—		6,336

March 31,

2020

Weighted average remaining lease term (in years)

4.5

Weighted Average Discount Rate

4.5

Short-term lease expense which represents expense for leases that have terms of one year or less was not material for the three and nine months ended March 31, 2020.

The maturities of the Company’s operating lease liabilities as of March 31, 2020 by fiscal year are as follows:

	Operating Leases (in thousands)
2020 (remaining three months)	$	5,356
2021		20,509
2022		19,351
2023		15,666
2024		6,333
Thereafter		12,396
Total future minimum lease payments		79,611
Less amount representing interest		7,559
Total operating lease liabilities	$	72,052
Operating lease liabilities, current	$	18,197
Operating lease liabilities, non-current	$	53,855

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 $1.9 million of sublease income for the three and nine months ended March 31, 2020, 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, do not include purchase options, and include 60-day termination rights by either party. For the three months ended March 31, 2020 and 2019, $2.2 million and $2.7 million are included in product revenue in the Company’s condensed consolidated financial statements, respectively. For the nine months ended March 31, 2020 and 2019, $6.9 million and $8.6 million are included in product revenue in the Company’s condensed consolidated financial statements, respectively. There were no changes to the accounting treatment of these transactions from the adoption of ASC 842.

Restructuring Charges, Net of Reversals and Impairment, and Related Charges

9 Months Ended

Mar. 31, 2020

Restructuring And Related Activities [Abstract]

Restructuring Charges, net of reversals, impairment, and related charges

15.	Restructuring Charges, Net of Reversals, Impairment, and Related Charges.

The Company recorded $6.6 million and $19.4 million of restructuring charges, net of reversals and impairments during the three and nine months ended March 31, 2020, respectively. Total restructuring charges included facility related charges of $0.3 million and $8.2 million as well as charges for severance and benefits of $6.3 million and $11.2 million for the three and nine months ended March 31, 2020, respectively.

During the first quarter of fiscal 2020, the Company moved to reduce its operating expenses 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 lease agreements, 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 impairment of ROU assets from exited facilities. In addition, the Company recorded severance and benefits charges of $2.2 million related to its reduction-in-force action which had begun in the fourth quarter of fiscal 2019.

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 this facility which it has ceased using and as such has considered estimated future sub-lease income based on its existing lease 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 ROU assets of $2.8 million, long-lived assets of $0.9 million, and other charges of $0.2 million related to the exited facility. In addition, the Company recorded severance and benefits charges of $2.7 million related to its reduction-in-force action which began in the fourth quarter of fiscal 2019.

During the third quarter of fiscal 2020, the Company continued its initiative to reduce cost by realigning its workforce. In addition, with the global disruptions and slow-down in the demand of its products caused by the global pandemic outbreak, COVID-19, and the uncertainty around the timing of the recovery of the market, the Company initiated a reduction-in-force plan (the 2020 Plan) to reduce its operating costs and enhance financial flexibility. The plan affected approximately 300 employees primarily from the research and development and sales organizations who were located mainly in US and India. The Company recorded restructuring charges of $5.8 million during the three months ended March 31, 2020 related to the 2020 Plan. We expect to incur additional charges related to this 2020 Plan through the first quarter of fiscal 2021. The costs associated with this restructuring plan primarily included employee severance and benefit expenses. The Company recorded additional severance and benefits charges of $0.5 million for the three months ended March 31, 2020 related to the prior period restructuring plans. In addition, the Company recorded facility related charges of $0.3 million related to its previously impaired facilities for the three months ended March 31, 2020.

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 as of March 31, 2020 consist of (in thousands):

	Excess Facilities			Severance Benefits			Total

Balance as of June 30, 2019	$	1,764		$	3,559		$	5,323
Period charges		—			12,257			12,257
Period reversals		—			(1,044	)		(1,044	)
Reclassification to reduce operating lease assets		(1,764	)		—			(1,764	)
Period payments		—			(8,568	)		(8,568	)
Balance as of March 31, 2020	$	—		$	6,204		$	6,204

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Net revenues:
Total net revenues	$ 209,519	$ 250,864	$ 732,497	$ 743,430
Cost of revenues:
Total cost of revenues	98,184	111,945	335,248	331,141
Gross profit:
Total gross profit	111,335	138,919	397,249	412,289
Operating expenses:
Research and development	50,577	52,081	165,073	155,526
Sales and marketing	70,132	72,321	216,925	208,245
General and administrative	15,119	15,479	45,199	42,136
Acquisition and integration costs	5,156		30,075	2,613
Restructuring charges, net of reversals and impairment	6,648		19,407	1,282
Amortization of intangibles	2,059	1,292	6,366	5,008
Total operating expenses	149,691	141,173	483,045	414,810
Operating loss	(38,356)	(2,254)	(85,796)	(2,521)
Interest income	222	628	1,366	1,665
Interest expense	(5,979)	(2,996)	(17,377)	(9,588)
Other income (expense), net	1,318	(433)	1,128	(345)
Loss before income taxes	(42,795)	(5,055)	(100,679)	(10,789)
Provision (benefit) for income taxes	1,557	1,877	4,949	(1,991)
Net loss	$ (44,352)	$ (6,932)	$ (105,628)	$ (8,798)
Basic and diluted net loss per share:
Net loss per share - basic and diluted	$ (0.37)	$ (0.06)	$ (0.88)	$ (0.07)
Shares used in per share calculation - basic and diluted	119,162	117,944	119,648	117,619
Product
Net revenues:
Total net revenues	$ 136,547	$ 190,740	$ 512,173	$ 558,027
Cost of revenues:
Total cost of revenues	71,927	86,876	254,705	256,906
Gross profit:
Total gross profit	64,620	103,864	257,468	301,121
Service
Net revenues:
Total net revenues	72,972	60,124	220,324	185,403
Cost of revenues:
Total cost of revenues	26,257	25,069	80,543	74,235
Gross profit:
Total gross profit	$ 46,715	$ 35,055	$ 139,781	$ 111,168

Goodwill and Intangible Assets (Components of Gross and Net Intangible Asset Balances) (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2020	Jun. 30, 2019
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 234,066	$ 181,566
Accumulated Amortization	156,914	130,454
Net Carrying Amount	$ 77,152	$ 51,112
Developed technology
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	2 years 7 months 6 days	2 years 4 months 24 days
Gross Carrying Amount	$ 156,100	$ 117,000
Accumulated Amortization	97,193	77,449
Net Carrying Amount	$ 58,907	$ 39,551
Customer relationships
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	4 years 9 months 18 days	2 years
Gross Carrying Amount	$ 63,039	$ 51,639
Accumulated Amortization	48,281	44,410
Net Carrying Amount	$ 14,758	$ 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 6 months	2 years 4 months 24 days
Gross Carrying Amount	$ 10,700	$ 9,100
Accumulated Amortization	7,794	5,647
Net Carrying Amount	$ 2,906	$ 3,453
License agreements
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	5 years 7 months 6 days	5 years 4 months 24 days
Gross Carrying Amount	$ 2,445	$ 2,445
Accumulated Amortization	1,864	1,661
Net Carrying Amount	$ 581	$ 784
Other intangibles
Finite-Lived and Indefinite-Lived Intangible Assets [Line Items]
Weighted Average Remaining Amortization Period	0 years	7 months 6 days
Gross Carrying Amount	$ 1,382	$ 1,382
Accumulated Amortization	$ 1,382	1,287
Net Carrying Amount		$ 95

Information about Segments and Geographic Areas (Narratives) (Details)	9 Months Ended
	Mar. 31, 2020 Segment Geographic_Area
Segment Reporting [Abstract]
Number of operating segments \| Segment	1
Number of geographic regions \| Geographic_Area	3

Employee Benefit Plans (Narratives) (Details) $ / shares in Units, $ in Thousands	3 Months Ended			9 Months Ended		12 Months Ended
	Mar. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 Quarter $ / shares	Mar. 31, 2019 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 31, 2019 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	3,014,000			3,014,000		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				6,299,000
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 nine months ended March 31, 2020 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	736,796			736,796
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	$ 1.76		$ 2.69	$ 1.90	$ 2.71
Shares issued under stock purchase plan	1,498,155		1,499,042	2,721,699	2,779,750

Employee Benefit Plans

9 Months Ended

Mar. 31, 2020

Share Based Compensation [Abstract]

Employee Benefit Plans

12.	Employee Benefit Plans

Shares Reserved for Issuance

The Company had reserved for issuance as of the dates noted (in thousands):

	March 31, 2020		June 30, 2019
2013 Equity Incentive Plan shares available for grant		11,368		8,462
Employee stock options and awards outstanding		12,086		10,455
2014 Employee Stock Purchase Plan		7,364		10,085
Total shares reserved for issuance		30,818		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 March 31, 2020, total awards to acquire 736,796 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				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Cost of product revenue	$	280	$	223	$	932	$	618
Cost of service revenue		368		648		1,220		1,670
Research and development		2,518		2,814		8,213		7,953
Sales and marketing		1,338		3,187		8,568		8,529
General and administrative		2,639		1,942		7,523		5,569
Integration costs		—		—		479		—
Total share-based compensation expense	$	7,143	$	8,814	$	26,935	$	24,339

During the three and nine months ended March 31, 2020, and 2019, 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 nine months ended March 31, 2020 (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		6,299			6.83
Released		(3,365	)		7.11
Cancelled		(1,598	)		7.28
Non-vested stock awards outstanding at March 31, 2020		9,072		$	7.40	$	28,033
Vested and expected to vest at March 31, 2020		6,397		$	7.26	$	25,947

The following table summarizes stock option activity for the nine months ended March 31, 2020 (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		(217	)		4.58
Cancelled		(125	)		6.02
Options outstanding at March 31, 2020		3,014		$	4.99		3.39	$	524
Vested and expected to vest at March 31, 2020		3,014		$	4.99		3.39	$	524
Exercisable at March 31, 2020		1,693		$	3.78		1.43	$	524

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 per share of the options granted during the nine months ended March 31, 2020 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 nine months ended March 31, 2020 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 underlying 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 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 nine months ended March 31, 2020, 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 1,498,155 and 1,499,042 shares issued under the ESPP during the three months ended March 31, 2020 and 2019, respectively. There were 2,721,699 and 2,779,750 shares issued under the ESPP during the nine months ended March 31, 2020 and 2019, respectively. The following assumptions were used to calculate the fair value of shares issued under the ESPP during the following periods:

	Employee Stock Purchase Plan						Employee Stock Purchase Plan
	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Expected life	0.5 years			0.5 years			0.5 years			0.5 years
Risk-free interest rate		1.56	%		2.46	%		1.71	%		2.35	%
Volatility		43	%		75	%		43	%		70	%
Dividend yield		—	%		—	%		—	%		—	%

The weighted-average fair value of shares issued under the ESPP during the nine months ended March 31, 2020 and 2019 was $1.90 and $2.71, respectively. The weighted-average fair value of shares issued under the ESPP during the three months ended March 31, 2020 and 2019 was $1.76 and $2.69, respectively.

Debt (Components of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2020	Jun. 30, 2019
Line Of Credit Facility [Line Items]
Less: unamortized debt issuance costs	$ (2,181)	$ (489)
Current portion of long-term debt	16,819	9,011
Less: unamortized debt issuance costs	(6,796)	(1,261)
Long-term debt, less current portion	399,704	169,739
Total debt	416,523	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	351,500	$ 171,000
Revolving Facility
Line Of Credit Facility [Line Items]
Long-term debt, less current portion	$ 55,000

Balance Sheet Accounts (Tables)

9 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Components of Inventories

Inventories consist of the following (in thousands):

	March 31, 2020		June 30, 2019
Finished goods	$	55,790	$	49,492
Raw materials		10,424		14,097
Total Inventories	$	66,214	$	63,589

Components of Property and Equipment

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

	March 31, 2020			June 30, 2019
Computers and equipment	$	75,134		$	72,309
Purchased software		33,467			29,126
Office equipment, furniture and fixtures		11,405			10,815
Leasehold improvements		52,167			51,245
Total property and equipment		172,173			163,495
Less: accumulated depreciation and amortization		(109,212	)		(89,941	)
Property and equipment, net	$	62,961		$	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 nine months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Balance beginning of period	$	16,209		$	12,808		$	14,779		$	12,807
Warranties assumed due to acquisitions		—			—			570			—
New warranties issued		4,810			4,510			16,271			12,377
Warranty expenditures		(5,797	)		(4,112	)		(16,398	)		(11,978	)
Balance end of period	$	15,222		$	13,206		$	15,222		$	13,206

Summary of Long-term Liabilities

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

	March 31, 2020		June 30, 2019
Acquisition-related deferred payments, less current portion	$	6,797	$	9,604
Contingent consideration obligations, less current portion		626		2,688
Other contractual obligations, less current portion		18,707		26,261
Other		3,802		15,597
Total other long-term liabilities	$	29,932	$	54,150

Summary of Significant Accounting Policies

9 Months Ended

Mar. 31, 2020

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, new derivatives and hedging guidance and related policies as discussed within these financial statements.

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Business Combination

9 Months Ended

Mar. 31, 2020

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 the Company is not able to finalize 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 that was considered appropriate. The resulting

fair value approximates the amount the Company would be required to pay to a third party to assume the obligation. 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 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 March 31, 2020
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			(900	)	d		52,500
Goodwill		194,264			(1,757	)	a,b,c,d		192,507
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, and d) adjustment to the fair value of intangibles.

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	$	39,100
Backlog		1		400
Customer relationships		7		11,400
Trade names		1		1,600
Total identifiable intangible assets			$	52,500

The amortization for the developed technology and backlog is recorded in “Cost of revenues” for product and service 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 the Acquisition is a nontaxable stock acquisition.

The results of operations of Aerohive are included in the accompanying condensed consolidated statements of operations beginning August 9, 2019. The Aerohive revenue for the three and nine months ended March 31, 2020 was $27.0 million and $94.3 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 nine months ended March 31, 2020, the Company incurred acquisition and integration related expenses of $5.2 million and $30.1 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 nine months ended March 31, 2020 combines the historical results for Extreme for such periods, 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 nine months ended March 31, 2019 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						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Net revenues	$	210,255		$	282,229		$	746,301		$	850,337
Net loss	$	(37,873	)	$	(23,272	)	$	(66,720	)	$	(83,051	)
Net loss per share - basic and diluted	$	(0.32	)	$	(0.20	)	$	(0.56	)	$	(0.71	)
Shares used in per share calculation - basic and diluted		119,162			117,944			119,648			117,619

Goodwill and Intangible Assets (Summary of Amortization Expense of Intangibles) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization in “Cost of revenues: Product and Service”	$ 6,629	$ 4,890	$ 20,094	$ 14,726
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"	$ 2,059	$ 1,292	$ 6,366	$ 5,008
Total amortization	$ 8,688	$ 6,182	$ 26,460	$ 19,734

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

Mar. 31, 2020

Aug. 09, 2019

Jun. 30, 2019

Business Acquisition [Line Items]

Goodwill

$ 331,084

$ 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

52,500

53,400

Goodwill

192,507

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

Identifiable intangible assets

(900)

Goodwill

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

(1,757)

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, and d) adjustment to the fair value of intangibles

Fair Value Measurements (Tables)

9 Months Ended

Mar. 31, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value for Financial Assets and Liabilities Measured on Recurring Basis

The following table presents the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis at March 31, 2020 (in thousands).

March 31, 2020	Level 1		Level 2		Level 3		Total
Assets
Foreign currency derivatives	$	—	$	231	$	—	$	231
Total assets measured at fair value	$	—	$	231	$	—	$	231
Liabilities
Foreign currency derivatives	$	—	$	97	$	—	$	97
Interest rate swaps	$	—	$	958	$	—	$	958
Acquisition-related contingent consideration obligations	$	—	$	—	$	2,940	$	2,940
Total liabilities measured at fair value	$	—	$	1,055	$	2,940	$	3,995

Schedule of Change in Acquisition-related Contingent Consideration Obligations

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

	Nine Months Ended
	March 31, 2020
Beginning balance		6,298
Payments		(3,448	)
Accretion on discount		90
Ending balance	$	2,940

Goodwill and Intangible Assets (Summary of Goodwill) (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2020 USD ($)
Goodwill [Roll Forward]
Balance as of June 30, 2019	$ 138,577
Additions due to acquisition	192,507
Balance at end of period	$ 331,084

Business Combination (Tables)

9 Months Ended

Mar. 31, 2020

Summary of Unaudited Pro Forma Financial Information

	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Net revenues	$	210,255		$	282,229		$	746,301		$	850,337
Net loss	$	(37,873	)	$	(23,272	)	$	(66,720	)	$	(83,051	)
Net loss per share - basic and diluted	$	(0.32	)	$	(0.20	)	$	(0.56	)	$	(0.71	)
Shares used in per share calculation - basic and diluted		119,162			117,944			119,648			117,619

Aerohive Networks, Inc.

Components of Aggregate Purchase Consideration

The components of aggregate 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 March 31, 2020
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			(900	)	d		52,500
Goodwill		194,264			(1,757	)	a,b,c,d		192,507
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	$	39,100
Backlog		1		400
Customer relationships		7		11,400
Trade names		1		1,600
Total identifiable intangible assets			$	52,500

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)	(8,798)	$ 0	0	0	0	(8,798)
Other comprehensive loss	(349)	0	0	(349)	0	0
Issuance of common stock from equity incentive plans, net of tax	13,044	$ 5	13,039	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		4,911
Repurchase of stock	(15,000)	$ 0	0	0	$ (15,000)	0
Repurchase of stock, shares					(2,366)
Share-based compensation	24,339	0	24,339	0	$ 0	0
Balance at Mar. 31, 2019	125,968	$ 121	979,775	(2,549)		(836,379)
Balance, common stock, shares at Mar. 31, 2019		121,035
Treasury stock, shares at Mar. 31, 2019					(2,366)
Treasury stock, value at Mar. 31, 2019					$ (15,000)
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)
Net income (loss)	(6,932)	$ 0	0	0	0	(6,932)
Other comprehensive loss	176	0	0	176	0	0
Issuance of common stock from equity incentive plans, net of tax	8,039	$ 2	8,037	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		1,946
Share-based compensation	8,814	$ 0	8,814	0	$ 0	0
Balance at Mar. 31, 2019	125,968	$ 121	979,775	(2,549)		(836,379)
Balance, common stock, shares at Mar. 31, 2019		121,035
Treasury stock, shares at Mar. 31, 2019					(2,366)
Treasury stock, value at Mar. 31, 2019					$ (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)	(105,628)	$ 0	0	0	0	(105,628)
Other comprehensive loss	(3,915)	0	0	(3,915)	0	0
Issuance of common stock from equity incentive plans, net of tax	9,491	$ 5	9,486	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		5,198
Stock awards granted in connection with acquisition	3,530	$ 0	3,530	0	0	0
Repurchase of stock	(30,000)	0	(1,887)	0	$ (28,113)	0
Repurchase of stock, shares					(4,231)
Share-based compensation	26,935	0	26,935	0	$ 0	0
Balance at Mar. 31, 2020	$ 16,400	$ 127	1,024,836	(6,388)		(959,062)
Balance, common stock, shares at Mar. 31, 2020	126,736	126,736
Treasury stock, shares at Mar. 31, 2020	(6,597)				(6,597)
Treasury stock, value at Mar. 31, 2020	$ (43,113)				$ (43,113)
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
Treasury stock, shares at Dec. 31, 2019					(6,216)
Treasury stock, value at Dec. 31, 2019					$ (40,179)
Net income (loss)	(44,352)	$ 0	0	0	0	(44,352)
Other comprehensive loss	(3,903)	0	0	(3,903)	0	0
Issuance of common stock from equity incentive plans, net of tax	6,585	$ 2	6,583	0	0	0
Issuance of common stock from equity incentive plans, net of tax, shares		2,120
Equity forward contract	4,821	$ 0	4,821	0	0	0
Repurchase of stock	(4,821)	0	(1,887)	0	$ (2,934)	0
Repurchase of stock, shares					(381)
Share-based compensation	7,143	0	7,143	0	$ 0	0
Balance at Mar. 31, 2020	$ 16,400	$ 127	$ 1,024,836	$ (6,388)		$ (959,062)
Balance, common stock, shares at Mar. 31, 2020	126,736	126,736
Treasury stock, shares at Mar. 31, 2020	(6,597)				(6,597)
Treasury stock, value at Mar. 31, 2020	$ (43,113)				$ (43,113)

Revenues (Narratives) (Details 1)	9 Months Ended
Revenues (Narratives) (Details 1)	Mar. 31, 2020
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-04-01
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	24.00%
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	46.00%
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	30.00%

Leases (Tables)

9 Months Ended

Mar. 31, 2020

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		Nine Months Ended
	March 31, 2020		March 31, 2020
Operating lease costs	$	4,871	$	14,874
Variable lease costs		1,613		4,548
Cash paid for amounts included in the measurement of operating liabilities		5,328		16,159
ROU assets obtained for new lease obligations		1,103		2,525
ROU assets obtained from Aerohive business combination		—		6,336

March 31,

2020

Weighted average remaining lease term (in years)

4.5

Weighted Average Discount Rate

4.5

Schedule of Maturities of Operating Lease Liabilities

The maturities of the Company’s operating lease liabilities as of March 31, 2020 by fiscal year are as follows:

	Operating Leases (in thousands)
2020 (remaining three months)	$	5,356
2021		20,509
2022		19,351
2023		15,666
2024		6,333
Thereafter		12,396
Total future minimum lease payments		79,611
Less amount representing interest		7,559
Total operating lease liabilities	$	72,052
Operating lease liabilities, current	$	18,197
Operating lease liabilities, non-current	$	53,855

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

Revenues (Schedule of Major Customers Accounting for 10% or More of Net Revenues and Accounts Receivable Balance) (Details) - Customer Concentration Risk

3 Months Ended

9 Months Ended

12 Months Ended

Mar. 31, 2020

Mar. 31, 2019

Mar. 31, 2020

Mar. 31, 2019

Jun. 30, 2019

Westcon Group Inc. | Net Revenue

Concentration Risk [Line Items]

Concentration risk (percent)

19.00%

12.00%

14.00%

13.00%

Westcon Group Inc. | Accounts Receivable

Concentration Risk [Line Items]

Concentration risk (percent)

^[1]

14.00%

Jenne Corporation | Net Revenue

Concentration Risk [Line Items]

Concentration risk (percent)

^[2]

21.00%

13.00%

15.00%

Jenne Corporation | Accounts Receivable

Concentration Risk [Line Items]

Concentration risk (percent)

10.00%

35.00%

Tech Data Corporation | Net Revenue

Concentration Risk [Line Items]

Concentration risk (percent)

19.00%

14.00%

16.00%

17.00%

Tech Data Corporation | Accounts Receivable

Concentration Risk [Line Items]

Concentration risk (percent)

11.00%

12.00%

[1]	* Less than 10% of accounts receivable.
[2]	* Less than 10% of net revenue.

Restructuring Charges, Net of Reversals and Impairment, and Related Charges (Restructuring Liabilities) (Details) $ in Thousands	9 Months Ended
	Mar. 31, 2020 USD ($)
Restructuring Cost And Reserve [Line Items]
Beginning balance	$ 5,323
Period charges	12,257
Period reversals	(1,044)
Reclassification to reduce operating lease assets	(1,764)
Period payments	(8,568)
Ending balance	6,204
Excess Facilities
Restructuring Cost And Reserve [Line Items]
Beginning balance	1,764
Period charges	0
Period reversals	0
Reclassification to reduce operating lease assets	(1,764)
Period payments	0
Ending balance	0
Severance Benefits
Restructuring Cost And Reserve [Line Items]
Beginning balance	3,559
Period charges	12,257
Period reversals	(1,044)
Reclassification to reduce operating lease assets	0
Period payments	(8,568)
Ending balance	$ 6,204

Leases (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands	Mar. 31, 2020 USD ($)
Operating Leases
2020 (remaining three months)	$ 5,356
2021	20,509
2022	19,351
2023	15,666
2024	6,333
Thereafter	12,396
Total future minimum lease payments	79,611
Less amount representing interest	7,559
Total operating lease liabilities	72,052
Operating lease liabilities, current	18,197
Operating lease liabilities, non-current	$ 53,855

Restructuring Charges, Net of Reversals and Impairment, and Related Charges (Tables)

9 Months Ended

Mar. 31, 2020

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		—			12,257			12,257
Period reversals		—			(1,044	)		(1,044	)
Reclassification to reduce operating lease assets		(1,764	)		—			(1,764	)
Period payments		—			(8,568	)		(8,568	)
Balance as of March 31, 2020	$	—		$	6,204		$	6,204

Balance Sheet Accounts (Narratives) (Details)	9 Months Ended
Balance Sheet Accounts (Narratives) (Details)	Mar. 31, 2020
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%

Debt (Narratives) (Details) - USD ($)		3 Months Ended		9 Months Ended
Debt (Narratives) (Details) - USD ($)	Aug. 09, 2019	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	May 08, 2020	Apr. 30, 2020
Line Of Credit Facility [Line Items]
Outstanding letters of credit		$ 7,700,000		$ 7,700,000
Subsequent Event
Line Of Credit Facility [Line Items]
Euro dollar rate							4.50%
Interest Expense
Line Of Credit Facility [Line Items]
Amortization of deferred financing costs		600,000	$ 200,000	1,800,000	$ 500,000
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				5.10%
2019 Credit Agreement \| First Amendment
Line Of Credit Facility [Line Items]
Amendment start date		Apr. 08, 2020
2019 Credit Agreement \| Second Amendment
Line Of Credit Facility [Line Items]
Amendment start date		May 08, 2020
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
2019 Credit Agreement \| Revolving Facility \| Subsequent Event
Line Of Credit Facility [Line Items]
Borrowings available under facility						$ 55,000,000.0
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%

Revenues

9 Months Ended

Mar. 31, 2020

Revenue From Contract With Customer [Abstract]

Revenues

3.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

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
	March 31, 2020						March 31, 2019
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	38,666	$	56,391	$	95,057	$	72,071	$	56,096	$	128,167
Other		3,277		5,781		9,058		4,930		5,589		10,519
Total Americas		41,943		62,172		104,115		77,001		61,685		138,686
EMEA		49,979		33,630		83,609		48,834		35,076		83,910
APAC		3,242		18,553		21,795		4,850		23,418		28,268
Total net revenues	$	95,164	$	114,355	$	209,519	$	130,685	$	120,179	$	250,864

	Nine Months Ended
	March 31, 2020						March 31, 2019
	Distributor		Direct		Total		Distributor		Direct		Total
Americas:
United States	$	168,755	$	180,358	$	349,113	$	172,752	$	171,359	$	344,111
Other		15,496		16,343		31,839		17,893		16,494		34,387
Total Americas		184,251		196,701		380,952		190,645		187,853		378,498
EMEA		173,825		107,521		281,346		190,041		98,687		288,728
APAC		18,362		51,837		70,199		11,967		64,237		76,204
Total net revenues	$	376,438	$	356,059	$	732,497	$	392,653	$	350,777	$	743,430

Included in the above amounts are $2.2 million and $6.9 million of leasing revenue for the three and nine months ended March 31, 2020, respectively. Included in the above amounts are $2.7 million and $8.6 million of leasing revenue for the three and nine months ended March 31, 2019, 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		Nine Months Ended
	March 31, 2020	March 31, 2019	March 31, 2020	March 31, 2019
Tech Data Corporation	19%	14%	16%	17%
Jenne Corporation	*	21%	13%	15%
Westcon Group Inc.	19%	12%	14%	13%

* Less than 10% of net revenue.

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


	March 31, 2020			June 30, 2019
Tech Data Corporation		11	%		12	%
Jenne Corporation		10	%		35	%
Westcon Group Inc.		14	%	*

* Less than 10% of accounts receivable.

Net Loss Per Share (Tables)

9 Months Ended

Mar. 31, 2020

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

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

	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Net loss	$	(44,352	)	$	(6,932	)	$	(105,628	)	$	(8,798	)
Weighted-average shares used in per share calculation - basic and diluted		119,162			117,944			119,648			117,619

Net loss per share - basic and diluted	$	(0.37	)	$	(0.06	)	$	(0.88	)	$	(0.07	)

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				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Options to purchase common stock		3,090		780		3,055		621
Restricted stock units		9,204		1,907		9,676		888
Employee Stock Purchase Plan shares		742		965		742		965
Total shares excluded		13,036		3,652		13,473		2,474

Stockholders' Equity (Summary of Share Repurchases Under Stock Award Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Equity [Abstract]
Total number of shares repurchased	381,000		4,232,000	2,366,000
Average price paid per share	$ 12.64		$ 7.09	$ 6.34
Total cost of shares repurchased	$ 4,821		$ 30,000	$ 15,000
Dollar value of shares that may yet be repurchased under program	$ 55,000	$ 45,000	$ 55,000	$ 45,000

Leases (Summary of Activity and Other Information Relating to Operating Leases) (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Mar. 31, 2020 USD ($)	Mar. 31, 2020 USD ($)
Leases [Abstract]
Operating lease costs	$ 4,871	$ 14,874
Variable lease costs	1,613	4,548
Cash paid for amounts included in the measurement of operating liabilities	5,328	16,159
ROU assets obtained for new lease obligations	$ 1,103	2,525
ROU assets obtained from Aerohive business combination		$ 6,336
Weighted average remaining lease term (in years)	4 years 6 months	4 years 6 months
Weighted Average Discount Rate	4.50%	4.50%

Goodwill and Intangible Assets (Tables)

9 Months Ended

Mar. 31, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Summary of Goodwill

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

	March 31, 2020
Balance as of June 30, 2019	$	138,577
Additions due to acquisition (see Note 4)		192,507
Balance at end of period	$	331,084

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
March 31, 2020
Developed technology	2.6 years	$	156,100	$	97,193	$	58,907
Customer relationships	4.8 years		63,039		48,281		14,758
Backlog	— years		400		400		—
Trade names	1.5 years		10,700		7,794		2,906
License agreements	5.6 years		2,445		1,864		581
Other intangibles	— years		1,382		1,382		—
Total intangibles, net		$	234,066	$	156,914	$	77,152

	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				Nine Months Ended
	March 31, 2020		March 31, 2019		March 31, 2020		March 31, 2019
Amortization in “Cost of revenues: Product and Service”	$	6,629	$	4,890	$	20,094	$	14,726
Amortization of intangibles in "Operations"		2,059		1,292		6,366		5,008
Total amortization	$	8,688	$	6,182	$	26,460	$	19,734

Balance Sheet Accounts

9 Months Ended

Mar. 31, 2020

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Balance Sheet Accounts

5.	Balance Sheet Accounts

Inventories

Inventories consist of the following (in thousands):

	March 31, 2020		June 30, 2019
Finished goods	$	55,790	$	49,492
Raw materials		10,424		14,097
Total Inventories	$	66,214	$	63,589

Property and Equipment, Net

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

	March 31, 2020			June 30, 2019
Computers and equipment	$	75,134		$	72,309
Purchased software		33,467			29,126
Office equipment, furniture and fixtures		11,405			10,815
Leasehold improvements		52,167			51,245
Total property and equipment		172,173			163,495
Less: accumulated depreciation and amortization		(109,212	)		(89,941	)
Property and equipment, net	$	62,961		$	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 nine months ended March 31, 2020 and 2019 (in thousands):

	Three Months Ended						Nine Months Ended
	March 31, 2020			March 31, 2019			March 31, 2020			March 31, 2019
Balance beginning of period	$	16,209		$	12,808		$	14,779		$	12,807
Warranties assumed due to acquisitions		—			—			570			—
New warranties issued		4,810			4,510			16,271			12,377
Warranty expenditures		(5,797	)		(4,112	)		(16,398	)		(11,978	)
Balance end of period	$	15,222		$	13,206		$	15,222		$	13,206

Other Long-term Liabilities

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

	March 31, 2020		June 30, 2019
Acquisition-related deferred payments, less current portion	$	6,797	$	9,604
Contingent consideration obligations, less current portion		626		2,688
Other contractual obligations, less current portion		18,707		26,261
Other		3,802		15,597
Total other long-term liabilities	$	29,932	$	54,150

Concentrations

Business Combination (Narratives) (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
	Aug. 09, 2019	Mar. 31, 2020	Sep. 30, 2019	Mar. 31, 2020	Mar. 31, 2019
Business Acquisition [Line Items]
Acquisition and integration related expenses		$ 5,156		$ 30,075	$ 2,613
Aerohive Networks, Inc.
Business Acquisition [Line Items]
Business acquisition, cash consideration	$ 267,146
Business acquisition, date of acquisition	Aug. 09, 2019
Revenue		27,000		94,300
Acquisition and integration related expenses		$ 5,200		$ 30,100
Compensation charge associated with acquisition			$ 6,800

Employee Benefit Plans (Schedule of Fair Value Assumptions for Stock Options and Employee Stock Purchase Plan Awards) (Details) - Employee Stock Purchase Plan	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected life	6 months	6 months	6 months	6 months
Risk-free interest rate	1.56%	2.46%	1.71%	2.35%
Volatility	43.00%	75.00%	43.00%	70.00%

Employee Benefit Plans (Schedule of Recognized Share-based Compensation Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2020	Mar. 31, 2019	Mar. 31, 2020	Mar. 31, 2019
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 7,143	$ 8,814	$ 26,935	$ 24,339
Cost of Product Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	280	223	932	618
Cost of Service Revenue
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	368	648	1,220	1,670
Research and Development
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	2,518	2,814	8,213	7,953
Sales and Marketing
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	1,338	3,187	8,568	8,529
General and Administrative
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 2,639	$ 1,942	7,523	$ 5,569
Integration Costs
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items]
Share-based compensation expense			$ 479