We have a number of equity investments in privately held companies that are unconsolidated entities. The following discusses our investments in marketable equity securities, non-marketable equity securities, gains and losses on marketable and non-marketable equity securities, as well as our equity securities accounted for under the equity method.

Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets.

Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We estimate the fair value of our non-marketable equity investments using Level 3 inputs to assess whether impairment losses shall be recorded. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in other, net on the condensed consolidated statements of income.

Equity investments whereby we have significant influence but not control over the investee, and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method. Under this method, we record our share of gains or losses attributable to equity method investments as a component of other, net on the condensed consolidated statements of income.


Measurement category	September 30, ‎2020		June 30, ‎2020
Fair value	$	19,045	$	-
Measurement alternative		21,410		30,033
Equity method		18,071		14,109
Total	$	58,526	$	44,142

The following table shows a reconciliation of the changes in all of our non-marketable equity investments (in thousands):


	Three Months Ended ‎September 30,
Non-marketable securities	2020		2019
Balance at the beginning of the period	$	30,033	$	30,436
Investments		1,946		2,741
Impairment of investments		-		(2,590)
Reclassification to marketable securities ⁽¹⁾		(10,569)		-
Carrying value of non-marketable securities	$	21,410	$	30,587

(1)In September 2020, one of our investments, which was previously accounted for under the measurement alternative, completed its initial public offering which resulted in a change of accounting methodology to fair value and the recognition of an unrealized gain of $8.5 million for the three months ended September 30, 2020.

Net unrealized gains recognized in the three months ended September 30, 2020 for equity investments held as of September 30, 2020 were $8.5 million, which related to gains on publicly traded marketable equity securities. Net unrealized losses recognized in the three months ended September 30, 2019 for equity investments held as of September 30, 2019 were $2.6 million, which related to impairments of privately held non-marketable securities.

The following table shows a reconciliation of the changes in our equity securities accounted for under the equity method (in thousands):


	Three Months Ended ‎September 30,
Equity method investments	2020		2019
Balance at the beginning of the period	$	14,109	$	21,667
Investments		6,250		-
Loss attributable to equity method investments		(2,288)		(6,863)
Carrying value of equity method investments	$	18,071	$	14,804