Quarterly report pursuant to Section 13 or 15(d)

Fair Value Measurements (Tables)

Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2024

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
		2024		Level 1		Level 2		Level 3

Assets
Derivatives designated as hedging instruments - cash flow hedges	Other current assets	$	250	$	—	$	250	$	—
Derivatives designated as hedging instruments - cash flow hedges	Other assets		6,669		—		6,669		—
Total assets		$	6,919	$	—	$	6,919	$	—

Liabilities
Derivatives designated as hedging instruments - cash flow hedges	Other long-term liabilities	$	269	$	—	$	269	$	—
Derivatives designated as hedging instruments - net investment hedge	Other long-term liabilities		8,041		—		8,041		—
Total liabilities		$	8,310	$	—	$	8,310	$	—


		Total
		carrying
		value as of		Fair Value Measurements Using
	Balance Sheet Location	June 30,		Inputs Considered as
		2024		Level 1		Level 2		Level 3

Assets
Certificates of deposit⁽¹⁾	Short-term available-for-sale investments	$	1,072	$	1,072	$	—	$	—
Derivatives designated as hedging instruments - cash flow hedges	Other current assets		805		—		805		—
Derivatives designated as hedging instruments - cash flow hedges	Other assets		9,813		—		9,813		—
Total assets		$	11,690	$	1,072	$	10,618	$	—

Liabilities
Derivatives designated as hedging instruments - net investment hedge	Other long-term liabilities	$	2,051	$	—	$	2,051	$	—
Total liabilities		$	2,051	$	—	$	2,051	$	—

⁽¹⁾	The certificates of deposit have contractual maturity dates within one year.

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	2024		2024
Forward starting swaps⁽¹⁾	Cash flow hedge	$	300	$	300
Cross-currency swap⁽²⁾	Net investment hedge		140		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. In August 2024, the Company entered into a new forward starting swap designated as a cash flow hedge on forecasted debt based on $100 million of notional principal that will go into effect in April 2025 to replace a swap that matures in April 2025. The effective date of the new swap is April 2025 with the full swap maturing in April 2026.

(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 three remaining 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, 2024 and September 30, 2023 were as follows (in thousands):


	(Gain) Loss Recognized in Accumulated Other Comprehensive Loss
	Quarter Ended
	September 30,
	2024		2023
Cash flow hedges
Forward starting swaps	$	5,010	$	(1,587)
Net investment hedges
Cross-currency swap		5,165		(1,366)
Total	$	10,175	$	(2,953)


	(Gain) Loss Reclassified into Income
	Quarter Ended
	September 30,				Location of (Gain) Loss
	2024		2023		in Income Statement
Cash flow hedges
Forward starting swaps	$	(2,599)	$	(2,539)	Interest expense
Net investment hedges
Cross-currency swap		(782)		(698)	Interest expense
Total	$	(3,381)	$	(3,237)

- 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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