Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

v3.24.1.u1
Fair Value Measurements (Tables)
9 Months Ended
Mar. 31, 2024
Notes Tables  
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

March 31, 

Inputs Considered as

2024

Level 1

Level 2

Level 3

 

Assets

 

  

 

  

 

  

 

  

Certificates of deposit(1)

Short-term available-for-sale investments

$

5,397

$

5,397

$

$

Derivatives designated as hedging instruments - cash flow hedges

Other assets

 

12,028

 

 

12,028

 

Total assets

$

17,425

$

5,397

$

12,028

$

Liabilities

 

  

 

  

 

  

 

  

Derivatives designated as hedging instruments - net investment hedge

Other long-term liabilities

$

680

$

$

680

$

Total liabilities

$

680

$

$

680

$

    

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(2)

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) The certificates of deposit have contractual maturity dates within one year.
(2) 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.
Schedule of contractual amounts of the outstanding instruments

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

    

March 31, 

June 30, 

Instruments

Designation

    

2024

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 and nine months ended March 31, 2024 and 2023 were as follows (in thousands):

(Gain) Loss Recognized in Accumulated Other Comprehensive Loss

    

Quarter Ended

Nine Months Ended

March 31, 

March 31, 

    

2024

    

2023

2024

    

2023

Cash flow hedges

Forward starting swaps

$

1,626

 

$

3,105

$

9,582

 

$

(431)

Net investment hedges

Cross-currency swap

(4,914)

 

2,329

 

Total

$

(3,288)

$

3,105

$

11,911

$

(431)

(Gain) Loss Reclassified into Income

    

Quarter Ended

Nine Months Ended

March 31, 

March 31, 

Location of (Gain) Loss

    

2024

    

2023

2024

    

2023

in Income Statement

Cash flow hedges

Forward starting swaps

$

(2,570)

 

$

(1,826)

$

(7,729)

 

$

(2,445)

Interest expense

Net investment hedges

Cross-currency swap

(837)

 

(2,372)

 

Interest expense

Total

$

(3,407)

$

(1,826)

$

(10,101)

$

(2,445)

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

Nine Months Ended

March 31, 

March 31, 

2024

2024

Fair value at the beginning of period

$

$

3,500

Change in fair value of contingent consideration

 

 

(3,500)

Payments

 

 

Fair value at the end of period

$

$