We have 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 operations.

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 operations.


Measurement category	March 31, ‎2021		June 30, ‎2020
Fair value	$	24,011	$	-
Measurement alternative		23,002		30,033
Equity method		16,714		14,109
Total	$	63,727	$	44,142

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


	Nine Months Ended ‎March 31, 2021
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	30,033	$	-	$	14,109	$	44,142
Investments		2,538		5,000		12,500		20,038
Observable price adjustments on non-marketable equity securities		1,000		-		-		1,000
Ongoing mark-to-market adjustments on marketable equity securities		-		8,442		-		8,442
Reclassifications ⁽¹⁾		(10,569)		10,569		-		-
Loss attributable to equity method investments		-		-		(9,895)		(9,895)
Carrying value at the end of the period	$	23,002	$	24,011	$	16,714	$	63,727

(1)During the nine months ended March 31, 2021, 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.


	Nine Months Ended ‎March 31, 2020
	Non-marketable securities		Marketable securities		Equity method investments		Total
Balance at the beginning of the period	$	30,436	$	-	$	21,667	$	52,103
Investments		14,116		-		17,500		31,616
Impairment of investments		(14,519)		-		-		(14,519)
Loss attributable to equity method investments		-		-		(19,082)		(19,082)
Carrying value at the end of the period	$	30,033	$	-	$	20,085	$	50,118