Fair Value Measurements

12 Months Ended

Jun. 30, 2018

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.

The Company’s Level 1 assets include institutional money-market funds that are classified as cash equivalents, which are valued primarily using quoted market prices in active markets for identical assets. The Company’s Level 2 assets include its U.S. government agency securities and its corporate securities as the market inputs used to value these instruments consist of market yields, reported trades and broker/dealer quotes, which are corroborated with observable market data.

The following tables summarize the amortized cost, gross unrealized gains, gross unrealized losses and fair value by significant investment category for cash, cash equivalents and short‑term investments (in thousands):

	June 30, 2018
							Estimated Fair Value
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Cash and Cash Equivalents		Short-term Investments
Cash	$	83,083	$	—	$	—	$	83,083	$	—
Level 1
Money market funds		—		—		—		—		—
Level 2
U.S. government agency securities		—		—		—		—		—
Total	$	83,083	$	—	$	—	$	83,083	$	—

	June 30, 2017
								Estimated Fair Value
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Cash and Cash Equivalents		Short-term Investments
Cash	$	70,515	$	—	$	—		$	70,515	$	—
Level 1
Money market funds		1,569		—		—			1,569		—
Level 2
U.S. government agency securities		23,998		—		(89	)		—		23,909
Total	$	96,082	$	—	$	(89	)	$	72,084	$	23,909

The Company’s Level 2 investments in the table above are classified as Level 2 items because quoted prices in an active market are not readily accessible for those specific financial assets, or the Company may have relied on alternative pricing methods that do not rely exclusively on quoted prices to determine the fair value of the investments.

Assets and Liabilities That Are Measured at Fair Value on a Nonrecurring Basis

The Company’s debt is measured on a non-recurring basis using Level 2 inputs based upon observable inputs of the Company’s underlying stock price and the time value of the conversion option, since an observable quoted price of the 3.50% Convertible Notes, the 3.50% Series A Convertible Notes and the 3.75% Convertible Notes (collectively the “Notes”) are not readily available. The Revolving Credit Facility and the Term Loan (collectively the “Credit Facilities”) are valued at market interest rates, which it considers to be a level 2 fair value measurement. The carrying value of these financial instruments approximate its estimated fair value as there have not been significant changes in the Company’s credit quality or capital markets that would suggest changes in interest rates since these Credit Facilities were issued or amended in December 2017.  

The following table summarizes the carrying value and estimated fair value of Credit Facilities and Notes (in thousands):

	June 30, 2018				June 30, 2017
	Carrying Value		Fair Value		Carrying Value		Fair Value
3.75% Convertible Notes	$	69,382	$	70,742	$	—	$	—
3.50% Convertible Notes		—		—		44,099		48,146
3.50% Series A Convertible Notes		—		—		68,924		74,982
Term Loan Facility		38,010		38,010		—		—
Revolving Credit Facility		23,685		23,685		51,548		51,548
Total	$	131,077	$	132,437	$	164,571	$	174,676