Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2023

Schedule of information by level for financial assets and liabilities that are measured at fair value on a recurring basis

The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands):


		Total
		carrying
		value as of		Fair Value Measurements Using
	Balance Sheet Location	September 30,		Inputs Considered as
		2023		Level 1		Level 2		Level 3

Assets
Exchange traded securities⁽¹⁾	Short-term available-for-sale investments	$	—	$	—	$	—	$	—
Derivatives designated as hedging instruments - cash flow hedges	Other assets		16,398		—		16,398		—
Derivatives designated as hedging instruments - net investment hedge	Other assets		1,093		—		1,093		—
Total assets		$	17,491	$	—	$	17,491	$	—

Liabilities
Contingent consideration	Contingent consideration payable	$	1,750	$	—	$	—	$	1,750
Total liabilities		$	1,750	$	—	$	—	$	1,750


		Total
		carrying
		value as of		Fair Value Measurements Using
	Balance Sheet Location	June 30,		Inputs Considered as
		2023		Level 1		Level 2		Level 3

Assets
Exchange traded securities⁽¹⁾	Short-term available-for-sale investments	$	23,739	$	23,739	$	—	$	—
Derivative instruments - cash flow hedges	Other assets		16,857		—		16,857		—
Total assets		$	40,596	$	23,739	$	16,857	$	—

Liabilities
Contingent consideration	Contingent consideration payable	$	3,500	$	—	$	—	$	3,500
Total liabilities		$	3,500	$	—	$	—	$	3,500

⁽¹⁾

During the quarter ended September 30, 2023, the Company sold all of its outstanding shares of its exchange traded investment grade bond funds that it held at June 30, 2023. The cost basis and fair value of the Company’s exchange traded investment grade bond funds were $25.0 million and $23.7 million at June 30, 2023, respectively. Our available for sale securities are measured at fair value using quoted market prices in active markets for identical assets and are therefore classified as Level 1 assets.

Schedule of contractual amounts of the outstanding instruments

The following table presents the contractual amounts of the Company's outstanding instruments (in millions):


		September 30,		June 30,
Instruments	Designation	2023		2023
Forward starting swaps⁽¹⁾	Cash flow hedge	$	300	$	300
Cross-currency swap⁽²⁾	Net investment hedge		150		—

(1) In May 2021, the Company entered into a forward starting swap designated as a cash flow hedge on forecasted debt based on $200 million of notional principal. The effective date of the swap was November 2022 with the full swap maturing in November 2025. In March 2023, the Company entered into a forward starting swap designated as a cash flow hedge on forecasted debt based on $100 million of notional principal. The effective date of the swap was April 2023 with the full swap maturing in April 2025.

(2) In July 2023, the Company entered into a pay-fixed rate, receive-fixed rate cross-currency swap contract with a total notional amount of $150 million that was designated as a hedge to lock in the Swiss franc (CHF) rate for a portion of the Company's CHF net investment in its Lunaphore subsidiary in Switzerland. The objective of the hedge is to protect the net investment in the Company's CHF-denominated operations against changes in the spot exchange rates, on a pre-tax basis. The hedging instrument has four interim settlement dates, which will reduce the notional on the hedging instrument by $10 million at each interim date, and will reduce the notional to $110 million at maturity.

Schedule of pretax amount of the gains and losses on our hedging instruments and the classification of those gains and losses

The pretax amount of the gains and losses on our hedging instruments and the classification of those gains and losses within our consolidated financial statements for the three months ended September 30, 2023 and September 30, 2022 were as follows (in thousands):


	(Gain) Loss Recognized in Accumulated Other Comprehensive Loss				(Gain) Loss Reclassified into Income
	Quarter Ended				Quarter Ended
	September 30,				September 30,				Location of (Gain) Loss
	2023		2022		2023		2022		in Income Statement
Cash flow hedges
Forward starting swaps	$	(1,587)	$	(4,376)	$	(2,539)	$	417	Interest expense
Net investment hedges
Cross-currency swap		(1,366)		—		(698)		—	Interest expense
Total	$	(2,953)	$	(4,376)	$	(3,237)	$	417

Schedule of the reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following table presents a reconciliation of the liability measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):


	Quarter Ended
	September 30,
	2023

Fair value at the beginning of period	$	3,500
Change in fair value of contingent consideration		(1,750)
Fair value at the end of period	$	1,750

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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