Financial Instruments

12 Months Ended

Jun. 30, 2020

Financial Instruments, Owned, at Fair Value [Abstract]

Financial Instruments Disclosure [Text Block]

FINANCIAL INSTRUMENTS

The methods used to estimate the fair value of our financial instruments are as follows:

Cash and Equivalents, Revolving and Other Lines of Credit and Notes Payable to Banks The carrying amounts approximate their fair value because of the short maturity of the instruments.

Long-Term Debt, Including Current Maturities Fixed rate debt had a fair market value of $630.2 million and $622.0 million at June 30, 2020 and 2019, respectively. The Level 2 fair value is determined based on the quoted market prices for similar debt instruments as of June 30, 2020 and 2019, respectively.

Foreign Exchange Contracts The notional amount of outstanding foreign exchange contracts, translated at current exchange rates, was $2.2 million and $61.5 million at June 30, 2020 and 2019, respectively. We would have received an immaterial amount and $0.2 million at June 30, 2020 and 2019, respectively, to settle these contracts representing the fair value of these agreements. The carrying value equaled the fair value for these contracts at June 30, 2020 and 2019. Fair value was estimated based on quoted market prices of comparable instruments.

Interest Rate Swap Contracts The cumulative notional amount of outstanding forward starting interest rate swap contracts was $200.0 million at June 30, 2020. We recorded a net liability of $2.1 million on these contracts, the net effect of which was recorded as a decrease to accumulated other comprehensive loss, net of tax. The carrying value equaled the fair value for these contracts at June 30, 2020. Fair value was estimated based on quoted market prices of comparable instruments.

Concentrations of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of temporary cash investments and trade receivables. By policy, we make temporary cash investments with high credit quality financial institutions and limit the amount of exposure to any one financial institution. With respect to trade receivables, concentrations of credit risk are significantly reduced because we serve numerous customers in many industries and geographic areas.

We are exposed to counterparty credit risk for nonperformance of derivatives and, in the unlikely event of nonperformance, to market risk for changes in interest and currency exchange rates, as well as settlement risk. We manage exposure to counterparty credit risk through credit standards, diversification of counterparties and procedures to monitor concentrations of credit risk. We do not anticipate nonperformance by any of the counterparties. As of June 30, 2020 and 2019, we had no significant concentrations of credit risk.