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Fair Value Measurements
12 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Fair Value Measurements

Note 7. Fair Value Measurements

Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy contains three levels of inputs that may be used to measure fair value, as follows:

Level 1— Unadjusted quoted prices that are available in active markets for the identical assets or liabilities at the measurement date.

Level 2— Other observable inputs available at the measurement date, other than quoted prices included in Level 1, either directly or indirectly, including:

Quoted prices for similar assets or liabilities in active markets;
Quoted prices for identical or similar assets in non-active markets;
Inputs other than quoted prices that are observable for the asset or liability; and
Inputs that are derived principally from or corroborated by other observable market data.

Level 3— Unobservable inputs that cannot be corroborated by observable market data and require the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

Assets and Liabilities That Are Measured at Fair Value

At June 30, 2024, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated, or notional, value of $88.0 million. The fair value of the forward contract based upon the June 30, 2024 exchange rate was

$87.7 million, which it considers to be a Level 2 fair value measurement. At June 30, 2023, the Company had open currency forward contracts to purchase or sell foreign currencies with a stated, or notional, value of $61.5 million. The fair value of the forward contract based upon the June 30, 2023 exchange rate was $61.2 million, which it considers to be a Level 2 fair value measurement.

 

The Company’s convertible debt is measured on a recurring basis using Level 2 based upon observable inputs. The Company's Revolving Credit Facility and Term Loan Facility (as defined in Note 9) collectively (the “Credit Facilities”) reflect the bank quoted market rates, which the Company considers to be a Level 2 fair value measurement. The Company believes that the carrying value of the Credit Facilities approximates its estimated fair value based on the effective interest rate, compared to the current market rate available to the Company at quarter-end.

 

The following table summarizes the carrying value, net of debt costs, and estimated fair value of the 3.75% Convertible Senior Notes due 2026, the Term Loan Facility, and the Revolving Credit Facility, (in thousands):

 

 

 

June 30, 2024

 

 

June 30, 2023

 

 

 

Carrying
Value

 

 

Fair Value

 

 

Carrying
Value

 

 

Fair Value

 

3.75% Convertible Notes Due 2026

 

 

98,782

 

 

 

85,762

 

 

 

98,189

 

 

 

98,265

 

Term Loan Facility

 

 

63,374

 

 

 

63,374

 

 

 

69,094

 

 

 

69,094

 

Revolving Credit Facility

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

 

 

10,000

 

Total

 

$

172,156

 

 

$

159,136

 

 

$

177,283

 

 

$

177,359