Fair Value Measurements

12 Months Ended

Jun. 30, 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 June 30, 2012 and 2013 (in millions).

	June 30, 2012		Level 1		Level 2		Level 3
United States short-term treasury bills	$	21.0	$	0.1	$	20.9	$	—
Corporate bonds	12.6		—		12.6		—
Common stock — domestic	10.1		0.1		10.0		—
Common stock — international	7.9		7.7		0.2		—
Preferred stock — international	0.2		0.2		—		—
Investments in securities	$	51.8	$	8.1	$	43.7	$	—

	June 30, 2013		Level 1		Level 2		Level 3
Cash and cash equivalents	$	33.3	$	33.3	$	—	$	—
Corporate bonds	13.8		—		13.8		—
Common stock — domestic	12.0		—		12.0		—
Investments in securities	$	59.1	$	33.3	$	25.8	$	—

The following table provides a reconciliation of the beginning and ending balances for the year ended June 30, 2012 for those fair value measurements using significant Level 3 unobservable inputs for the Company's investment in auction rate securities ("ARS") previously included within investments in securities on the accompanying consolidated balance sheets (in millions).

	Balance at June 30, 2011		Redemptions			Realized gain on redemptions, pre tax		Change in fair value, pre tax		Balance at June 30, 2012
Auction rate securities	$	8.8	$	(10.0	)	$	—	$	1.2	$	—

Investments in securities

As of June 30, 2013, the Company held $59.1 million in total available-for-sale investments in cash and cash equivalents, debt securities and equity securities, which are included in investments in securities on the accompanying consolidated balance sheets. The investments in securities are held by the Company's wholly-owned captive insurance subsidiary for the purpose of providing a potential funding source to pay professional liability claims covered by the captive insurance subsidiary. The Company may not be able to utilize these investments to fund its other operating or capital expenditure needs due to statutory limitations placed on the captive insurance subsidiary.

Investments in corporate bonds, valued at approximately $13.8 million at June 30, 2013, consist of corporate bonds and other fixed income investments. The average expected maturities of the investments in corporate bonds at June 30, 2013 was 6.4 years, compared to the average scheduled maturity of 11.0 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 approximately $53.7 million as of June 30, 2013.

The following table provides a reconciliation of activity for the Company's investments in securities, excluding activity related to ARS as previously disclosed, for the years ended June 30, 2012 and 2013, respectively (in millions).

	Fair value at June 30, 2011		Proceeds from sales			Purchases of securities		Realized gain on sales, pre tax		Change in fair value, pre tax			Fair value at June 30, 2012
Investments in securities	$	54.5	$	(75.3	)	$	73.5	$	0.1	$	(1.0	)	$	51.8

	Fair value at June 30, 2012		Proceeds from sales			Purchases of securities		Realized gain (loss) on sales, pre tax			Change in fair value, pre tax		Fair value at June 30, 2013
Investment in securities	$	51.8	$	(76.2	)	$	79.1	$	(0.3	)	$	4.7	$	59.1

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 consolidated statement of operations in the period in which the loss occurs. The cumulative gross unrealized gain for the securities was approximately $0.7 million ($0.5 million, net of taxes) and $5.4 million ($3.5 million, net of taxes) at June 30, 2012 and 2013, respectively, which is included in accumulated other comprehensive loss on the accompanying consolidated balance sheets.

Supplemental information regarding the Company's available-for-sale investment securities held as of June 30, 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		2.5		—		13.8
Common stock - domestic	9.1		2.9		—		12.0
	$	53.7	$	5.4	$	—	$	59.1

As of June 30, 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 $2,014.9 million, based upon stated market prices (Level 1) at June 30, 2013. The fair values of the Company's term loan facility, capital leases and other long-term debt, was approximately $1,110.0 million, based upon quoted market prices and interest rates (Level 2) at June 30, 2013.