Fair Value Measurements (Tables)

3 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Fair Value Assets and Liabilities Measured on Recurring Basis

The following tables present assets and liabilities measured at fair value on a recurring basis:

	September 30, 2022
(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	36,738	$	-	$	-	$	36,738
Interest rate swaps (1)				18,381				18,381
Total	$	36,738	$	18,381	$	-	$	55,119
Liabilities:
Contingent consideration liabilities (2)	$	-	$	-	$	9,302	$	9,302
Total	$	-	$	-	$	9,302	$	9,302

	June 30, 2022
(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Money market funds	$	36,616	$	-	$	-	$	36,616
Interest rate swaps (1)				9,157				9,157
Total	$	36,616	$	9,157	$	-	$	45,773
Liabilities:
Contingent consideration liabilities (2)	$	-	$	-	$	8,515	$	8,515
Total	$	-	$	-	$	8,515	$	8,515

(1) The fair value of interest rate swaps is estimated using a discounted cash flow analysis that considers the expected future cash flows of each interest rate swap. This analysis reflects the contractual terms of the interest rate swap, including the remaining period to maturity, and uses market-corroborated Level 2 inputs, including forward interest rate curves and implied interest rate volatilities. The fair value of an interest rate swap is estimated by discounting future fixed cash payments against the discounted expected variable cash receipts. The variable cash receipts are estimated based on an expectation of future interest rates derived from forward interest rate curves. The fair value of an interest rate swap also incorporates credit valuation adjustments to reflect the non-performance risk of the Company and the respective counterparty.

(2) We assess the fair value of contingent consideration to be settled in cash related to acquisitions using probability weighted models for the various contractual earn-outs. These are Level 3 measurements. Significant unobservable inputs used in the estimated fair values of these contingent consideration liabilities include probabilities of achieving customer related performance targets, specified sales milestones, consulting milestones, changes in unresolved claims, projected revenue or changes in discount rates.

Summary of Reconciliation of Liabilities Measured at Fair Value on Recurring Basis Using Significant Unobservable Inputs (Level 3)

The following table provides a reconciliation of liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

(in thousands)	Contingent Consideration (As Restated)
Balance at June 30, 2022	$	8,515
Acquisitions		-
Payments		(39	)
Change in fair value		826
Balance at September 30, 2022		9,302
Less: current portion		(3,256	)
Long term portion	$	6,046