Fair Value Measurements

3 Months Ended

Sep. 30, 2022

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2022, by the level within the fair value hierarchy (in thousands):


	Level 1		Level 2		Total

Assets measured at fair value
Cash and cash equivalents:
Money market funds	$	450,480	$	—	$	450,480





Marketable securities:
U.S. treasury securities	—		44,537		44,537

Certificates of deposit and time deposits	—		10,000		10,000




Derivative financial instruments	—		62,501		62,501





Other non-current assets:

Marketable equity securities	20,993		—		20,993



Total assets measured at fair value	$	471,473	$	117,038	$	588,511

Liabilities measured at fair value
Derivative financial instruments	$	—	$	37,521	$	37,521



Total liabilities measured at fair value	$	—	$	37,521	$	37,521

The following table presents the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2022, by level within the fair value hierarchy (in thousands):


	Level 1		Level 2		Total
Assets measured at fair value
Cash and cash equivalents:
Money market funds	$	555,247	$	—	$	555,247






Marketable securities:
U.S. treasury securities	—		70,294		70,294

Certificates of deposit and time deposits	—		3,000		3,000




Derivative financial instruments	—		44,052		44,052





Other non-current assets:

Marketable equity securities	30,801		—		30,801


Total assets measured at fair value	$	586,048	$	117,346	$	703,394

Liabilities measured at fair value
Derivative financial instruments	$	—	$	24,100	$	24,100






Total liabilities measured at fair value	$	—	$	24,100	$	24,100

Due to the short-term nature of accounts receivables, net, contract assets, accounts payable, and accrued expenses and other current liabilities, their carrying amount is assumed to approximate their fair value.

Determination of Fair Value

The Company uses quoted prices in active markets for identical assets to determine the fair value of our Level 1 investments. The fair value of our Level 2 investments is determined based on quoted market prices or alternative market observable inputs.

Strategic Investments Measured and Recorded at Fair Value on a Non-Recurring Basis

Our investments in privately-held companies are not included in the tables above and are discussed in Note 5, “Investments.” The carrying value of the Company’s privately held debt and equity securities and other investments are adjusted to fair value on a non-recurring basis upon observable transactions for identical or similar investments of the same issuer or impairment (referred to as the measurement alternative). Non-marketable equity securities that have been remeasured during the period based on observable transactions are classified within Level 2 or Level 3 in the fair value hierarchy because we estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction date and other unobservable inputs including rights and preferences of the investments, and obligations of the securities we hold. The fair value of non-marketable equity securities that have been remeasured due to impairment are classified within Level 3. The Company’s privately held debt and equity securities and other investments amounted to $134.6 million and $128.3 million as of September 30, 2022 and June 30, 2022, respectively.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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