Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2015

Financial instruments at fair value on recurring basis

As of June 30, 2015, the fair values of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives ⁽¹⁾	$	—	$	2,678	$	—	$	2,678
Total assets at fair value	$	—	$	2,678	$	—	$	2,678

Liabilities:
Derivatives⁽¹⁾	$	—	$	44	$	—	$	44
Contingent consideration	—		—		10,000		10,000
Total liabilities at fair value	$	—	$	44	$	10,000	$	10,044

The fair value of contingent consideration payable that was classified as Level 3 relates to our probability assessments of expected future milestone targets, primarily associated with product delivery, related to the Emura acquisition. The contingent consideration is to be paid over the next two years. During 2015, the Company paid $4.0 million in conjunction with achieved milestone targets. During the current year the Company reassessed this contingent consideration and determined that no adjustment to the fair value was deemed necessary and that no changes in the expected outcome have occurred during the year ended June 30, 2015.

As of June 30, 2014, the fair value of the Company’s financial assets and financial liabilities measured at fair value on a recurring basis are categorized as follows:



(in thousands)	Level 1		Level 2		Level 3		Total
Assets:
Derivatives ⁽¹⁾	$	—	$	253	$	—	$	253
Total assets at fair value	$	—	$	253	$	—	$	253

Liabilities:
Derivatives ⁽¹⁾	$	—	$	1,053	$	—	$	1,053
Contingent consideration					14,000		14,000
Total liabilities at fair value	$	—	$	1,053	$	14,000	$	15,053

⁽¹⁾ Currency derivatives are valued based on observable market spot and forward rates and are classified within Level 2 of the fair value hierarchy.