Fair Value Measurements

9 Months Ended

Mar. 31, 2013

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

The Company’s financial assets recorded at fair value on a recurring basis primarily relate to investments in available-for-sale securities held by one of its captive insurance subsidiaries. The following table indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair values. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. The Company considers a security that trades at least weekly to have an active market. Fair values determined by Level 2 inputs utilize data points that are observable, such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset, and include situations where there is little, if any, market activity for the asset. The Company’s policy is to recognize transfers between levels as of the actual date of the event or change in circumstances that caused the transfer. The following table presents information about the assets that are measured at fair value on a recurring basis as of March 31, 2013 (in millions).

	March 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Cash and cash equivalents	$	33.3	$	33.3	$	—	$	—
Corporate bonds	14.3		—		14.3		—
Common stock - domestic	11.7		—		11.7		—
Investments in securities	$	59.3	$	33.3	$	26.0	$	—

Investments in securities

As of March 31, 2013, the Company held $59.3 million in total available-for-sale investments in debt and equity securities, which are included in investments in securities on the condensed consolidated balance sheets. The investments in securities are held by one of the Company's wholly-owned captive insurance subsidiaries. The Company may not be able to utilize these investments to fund operating or capital expenditure needs due to statutory limitations placed on the captive insurance subsidiary.

Investments in corporate bonds, valued at $14.3 million at March 31, 2013, consist of corporate bonds and other fixed income investments. The average expected maturity of the investments in corporate bonds at March 31, 2013 was 6.6 years, compared to the average scheduled maturity of 11.2 years. Expected and scheduled maturities may differ because the issuers of certain securities have the right to call, prepay or otherwise redeem such obligations prior to the scheduled maturity date. The Company calculates the realized gain or loss on sales of investments using the amortized cost basis, as determined by specific identification. The amortized cost basis of these investments was $53.7 million as of March 31, 2013.

The following table provides a reconciliation of activity for the Company's investments in securities for the nine months endedMarch 31, 2013 (in millions).

	Fair value at June 30, 2012		Proceeds from sales			Purchases of securities		Realized loss on sales, pre tax			Change in fair value, pre tax		Fair value at March 31, 2013
Investment in securities	$	51.8	$	(76.2	)	$	79.1	$	(0.3	)	$	4.9	$	59.3

The Company determines whether an other-than-temporary decline in market value has occurred by considering the duration that, and extent to which, the fair value of the investment is below its amortized cost; the financial condition and near-term prospects of the issuer or underlying collateral of a security; and the Company's intent and ability to retain the security in order to allow for an anticipated recovery in fair value. Other-than-temporary declines in fair value from amortized cost for available-for-sale equity and debt securities that the Company intends to sell or would be more likely than not required to sell before the expected recovery of the amortized cost basis are recognized in the condensed consolidated income statement in the period in which the loss occurs. The cumulative gross unrealized gain for the securities was approximately $5.6 million ($3.6 million, net of taxes) which is included in accumulated other comprehensive loss on the condensed consolidated balance sheet at March 31, 2013.

Supplemental information regarding the Company's available-for-sale investment securities held as of March 31, 2013 is set forth in the table below (in millions).

	Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Cash and cash equivalents	$	33.3	$	—	$	—	$	33.3
Corporate bonds	11.3		3.0		—		14.3
Common stock - domestic	9.1		2.6		—		11.7
	$	53.7	$	5.6	$	—	$	59.3

As of March 31, 2013, the Company held no investments in securities with unrealized loss positions greater than 12 months.

Financial Instruments

The carrying amounts of the Company's short-term financial instruments, including cash, cash equivalents, restricted cash, accounts receivable and accounts payable, approximate fair value due to the short-term maturity of these items. The fair value of the Company's long-term debt, excluding term loans, capital leases and other long-term debt was approximately $2,030.8 million, based upon stated market prices (Level 1), at March 31, 2013. The fair values of the Company's term loan facility, capital leases and other long-term debt was approximately $1,116.7 million, based upon quoted market prices and interest rates (Level 2), at March 31, 2013.