Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2017

Summary of Fair Value and Carrying Value of Convertible Notes

The fair value and carrying value of the convertible notes were as follows at December 31, 2017 ($000):

	Fair Value		Carrying Value
Convertible notes	$	414,863	$	282,576

Summary by Level of Fair Value of Financial Instruments Measured on Recurring Basis

The following table provides a summary by level of the fair value of financial instruments that are measured on a recurring basis or for which fair value is disclosed for the periods presented ($000):

	Fair Value Measurements at December 31, 2017 Using:
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	December 31, 2017		(Level 1)		(Level 2)		(Level 3)
Assets:
Foreign currency forward contracts	$	68	$	-	$	68	$	-
Liabilities:
Contingent earnout arrangements	$	5,580	$	-	$	-	$	5,580
Net put option	$	2,233	$	-	$	-	$	2,233

	Fair Value Measurements at June 30, 2017 Using:
			Quoted Prices in		Significant
			Active Markets		Other		Significant
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	June 30, 2017		(Level 1)		(Level 2)		(Level 3)
Assets:
Foreign currency forward contracts	$	191	$	-	$	191	$	-
Liabilities:
Contingent earnout arrangements	$	5,795	$	-	$	-	$	5,795

EpiWorks

Reconciliation of Beginning and Ending Fair Value Measurements of Level Three Contingent Earnout Arrangements Related to Acquisition

The following table presents a reconciliation of the beginning and ending fair value measurements of the Company’s Level 3 contingent earnout arrangements related to the acquisition of II-VI EpiWorks and IPI ($000):

	Significant
	Unobservable Inputs
	(Level 3)
Balance at July 1, 2017	$	5,795
Contingent earnout arrangements:
Payments		-
Purchase price adjustment - IPI		(35	)
Net put option		2,233
Changes in fair value recorded in other expense, (income)		(180	)
Balance at December 31, 2017	$	7,813