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FAIR VALUE MEASUREMENTS
 9 Months Ended
Mar. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
Our financial assets and liabilities are measured and recorded at fair value, except for our debt and certain equity investments in privately held companies. Equity investments without a readily available fair value are accounted for using the measurement alternative. The measurement alternative is calculated as cost minus impairment, if any, plus or minus changes resulting from observable price changes. See Note 8 “Debt” to our Condensed Consolidated Financial Statements for disclosure of the fair value of our Senior Notes, as defined in that Note.
Our non-financial assets, such as goodwill, intangible assets, and land, property and equipment, are assessed for impairment when an event or circumstance indicates that an other-than-temporary decline in value may have occurred.
Fair Value of Financial Instruments. We have evaluated the estimated fair value of financial instruments using available market information and valuations as provided by third-party sources. The use of different market assumptions and/or estimation methodologies could have a significant effect on the estimated fair value amounts. The fair value of our cash equivalents, accounts receivable, accounts payable and other current assets and liabilities approximate their carrying amounts due to the relatively short maturity of these items.
Fair Value Hierarchy. The authoritative guidance for fair value measurements establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:
Level 1Valuations based on quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
Level 2Valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities.
Level 3Valuations based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. There were no transfers between Level 1, Level 2 and Level 3 fair value measurements during the nine months ended March 31, 2023.
The types of instruments valued based on quoted market prices in active markets include money market funds, certain U.S. Treasury securities, U.S. Government agency securities and equity securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.
The types of instruments valued based on other observable inputs include corporate debt securities, sovereign securities, municipal securities and certain U.S. Treasury securities. The market inputs used to value these instruments generally consist of market yields, reported trades and broker/dealer quotes. Such instruments are generally classified within Level 2 of the fair value hierarchy.
The principal market in which we execute our foreign currency contracts is the institutional market in an over-the-counter environment with a relatively high level of price transparency. The market participants generally are large financial institutions. Our foreign currency contracts’ valuation inputs are based on quoted prices and quoted pricing intervals from public data sources and do not involve management judgment. These contracts are typically classified within Level 2 of the fair value hierarchy.
The fair values of deferred payments and contingent consideration payable, the majority of which were recorded in connection with business combinations, were classified as Level 3 and estimated using significant inputs that were not observable in the market. See Note 6 “Business Combinations and Dispositions” to our Condensed Consolidated Financial Statements for additional information.
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on our Condensed Consolidated Balance Sheets as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsLittle or No Market Activity Inputs
As of March 31, 2023 (In thousands)Total (Level 1) (Level 2) (Level 3)
Assets
Cash equivalents:
Corporate debt securities$1,063 $— $1,063 $— 
Money market funds and other1,080,003 1,080,003 — — 
Marketable securities:
Corporate debt securities460,142 — 460,142 — 
Municipal securities35,884 — 35,884 — 
Sovereign securities5,016 — 5,016 — 
U.S. Government agency securities117,370 117,370 — — 
U.S. Treasury securities424,723 389,126 35,597 — 
Equity securities19,839 19,839 — — 
Total cash equivalents and marketable securities(1)
2,144,040 1,606,338 537,702 — 
Other current assets:
Derivative assets20,291 — 20,291 — 
Other non-current assets:
Executive Deferred Savings Plan245,090 192,854 52,236 — 
Total financial assets(1)
$2,409,421 $1,799,192 $610,229 $— 
Liabilities
Derivative liabilities$(13,196)$— $(13,196)$— 
Contingent consideration payable(19,299)— — (19,299)
Total financial liabilities$(32,495)$— $(13,196)$(19,299)
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(1) Excludes cash of $315.5 million held in operating accounts and time deposits of $430.7 million (of which $172.0 million were cash equivalents) as of March 31, 2023.
Financial assets (excluding cash held in operating accounts and time deposits) and liabilities measured at fair value on a recurring basis, as of the date indicated below, were presented on our Condensed Consolidated Balance Sheets as follows: 
Quoted Prices in Active Markets for Identical AssetsSignificant Other Observable InputsLittle or No Market Activity Inputs
As of June 30, 2022 (In thousands)Total(Level 1)(Level 2)(Level 3)
Assets
Cash equivalents:
Corporate debt securities$922 $— $922 $— 
Money market funds and other948,027 948,027 — — 
U.S. Treasury securities22,485 — 22,485 — 
Marketable securities:
Corporate debt securities472,047 — 472,047 — 
Municipal securities60,724 — 60,724 — 
Sovereign securities5,990 — 5,990 — 
U.S. Government agency securities91,116 91,116 — — 
U.S. Treasury securities348,026 344,559 3,467 — 
Equity securities11,035 11,035 — — 
Total cash equivalents and marketable securities(1)
1,960,372 1,394,737 565,635 — 
Other current assets:
Derivative assets40,311 — 40,311 — 
Other non-current assets:
Executive Deferred Savings Plan224,188 176,928 47,260 — 
Total financial assets(1)
$2,224,871 $1,571,665 $653,206 $— 
Liabilities
Derivative liabilities$(34,315)$— $(34,315)$— 
Deferred payments(2,350)— — (2,350)
Contingent consideration payable(23,674)— — (23,674)
Total financial liabilities$(60,339)$— $(34,315)$(26,024)
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(1) Excludes cash of $472.8 million held in operating accounts and time deposits of $274.9 million (of which $140.7 million were cash equivalents) as of June 30, 2022.