XML 21 R10.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Fair Value Measurements | 6 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Fair Value Measurements | Note 5. Fair Value Measurements: The Company’s financial instruments include cash and cash equivalents, available-for-sale investments, derivative instruments, accounts receivable, accounts payable, contingent consideration obligations, and long-term debt. Fair value is defined as the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. This standard also establishes a hierarchy for inputs used in measuring fair value. This standard maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available in the circumstances. The categorization of financial assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The hierarchy is broken down into three levels. Level 1 inputs are quoted prices in active markets for identical assets or liabilities. Level 2 inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable for the asset or liability and their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 may also include certain investment securities for which there is limited market activity or a decrease in the observability of market pricing for the investments, such that the determination of fair value requires significant judgment or estimation. ​ The following tables provide information by level for financial assets and liabilities that are measured at fair value on a recurring basis (in thousands). ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ |  | Total |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | carrying | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | value as of | ​ | Fair Value Measurements Using
​ | Balance Sheet Location | ​ | December 31, | ​ | Inputs Considered as
​ | ​ | ​ | 2024 | ​ | Level 1 | ​ | Level 2 | ​ | Level 3
​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets | ​ |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Derivatives designated as hedging instruments - cash flow hedges | Other current assets | ​ | $ | 6,063 | ​ | $ | — | ​ | $ | 6,063 | ​ | $ | —
Derivatives designated as hedging instruments - cash flow hedges | Other assets | ​ | ​ | 528 | ​ | ​ | — | ​ | ​ | 528 | ​ | ​ | —
Derivatives designated as hedging instruments - net investment hedge | Other assets | ​ | ​ | 2,699 | ​ | ​ | — | ​ | ​ | 2,699 | ​ | ​ | —
Total assets | ​ | ​ | $ | 9,290 | ​ | $ | — | ​ | $ | 9,290 | ​ | $ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ |  | Total |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | carrying | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | value as of | ​ | Fair Value Measurements Using
​ | Balance Sheet Location | ​ | June 30, | ​ | Inputs Considered as
​ | ​ |  | 2024 |  | Level 1 |  | Level 2 |  | Level 3
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Assets | ​ |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Certificates of deposit(1) | Short-term available-for-sale investments | ​ | $ | 1,072 | ​ | $ | 1,072 | ​ | $ | — | ​ | $ | —
Derivatives designated as hedging instruments - cash flow hedges | Other current assets | ​ | ​ | 805 | ​ | ​ | — | ​ | ​ | 805 | ​ | ​ | —
Derivatives designated as hedging instruments - cash flow hedges | Other assets | ​ |  | 9,813 | ​ |  | — | ​ |  | 9,813 | ​ |  | —
Total assets | ​ | ​ | $ | 11,690 | ​ | $ | 1,072 | ​ | $ | 10,618 | ​ | $ | —
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Liabilities | ​ | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |
Derivatives designated as hedging instruments - net investment hedge | Other long-term liabilities | ​ | $ | 2,051 | ​ | $ | — | ​ | $ | 2,051 | ​ | $ | —
Total liabilities | ​ | ​ | $ | 2,051 | ​ | $ | — | ​ | $ | 2,051 | ​ | $ | —
(1) | The certificates of deposit have contractual maturity dates within one year.
​ Fair value measurements of derivative instruments The Company utilizes forward starting swaps designated as a cash flow hedge on forecasted debt. The forward starting swaps reduce the variability of cash flow payments for the Company by converting the variable interest rate on the Company’s forecasted variable interest long-term debt to that of a fixed interest rate. Accordingly, as part of the forward starting swaps, the Company exchanges, at specified intervals, the difference between floating and fixed interest amounts based on a notional principal amount. The Company also uses a cross-currency swap contract to manage its exposure to foreign currency risk associated with the Company's net investment in its Swiss subsidiary. The following table presents the contractual amounts of the Company's outstanding instruments (in millions):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ |  | December 31, | ​ | June 30,
Instruments | ​ | Designation |  | 2024 | ​ | 2024
Forward starting swaps(1) | ​ | Cash flow hedge | ​ | $ | 300 | ​ | $ | 300
Cross-currency swap(2) | ​ | Net investment hedge | ​ | ​ | 140 | ​ | ​ | 150
​ (1) In May 2021, the Company entered into a forward starting swap designated as a cash flow hedge on forecasted debt based on $200 million of notional principal. The effective date of the swap was November 2022 with the full swap maturing in November 2025. In March 2023, the Company entered into a forward starting swap designated as a cash flow hedge on forecasted debt based on $100 million of notional principal. The effective date of the swap was April 2023 with the full swap maturing in April 2025. In August 2024, the Company entered into a new forward starting swap designated as a cash flow hedge on forecasted debt based on $100 million of notional principal that will go into effect in April 2025 to replace a swap that matures in April 2025. The effective date of the new swap is April 2025 with the full swap maturing in April 2026. (2) In July 2023, the Company entered into a pay-fixed rate, receive-fixed rate cross-currency swap contract with a total notional amount of $150 million that was designated as a hedge to lock in the Swiss franc (CHF) rate for a portion of the Company's CHF net investment in its Lunaphore subsidiary in Switzerland. The objective of the hedge is to protect the net investment in the Company's CHF-denominated operations against changes in the spot exchange rates, on a pre-tax basis. The hedging instrument has three interim settlement dates, which will reduce the notional on the hedging instrument by $10 million at each interim date, and will reduce the notional to $110 million at maturity. The pretax amount of the gains and losses on our hedging instruments and the classification of those gains and losses within our Consolidated Financial Statements for the three and six months ended December 31, 2024 and 2023 were as follows (in thousands):
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | (Gain) Loss Recognized in Accumulated Other Comprehensive Loss
​ |  | ​ | Quarter Ended | ​ | Six Months Ended
​ | ​ | ​ | December 31, | ​ | December 31,
​ |  | ​ | 2024 |  | 2023 | ​ | 2024 | ​ | 2023
Cash flow hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Forward starting swaps | ​ | ​ | $ | 1,689 |  | $ | 5,669 | ​ | $ | 6,699 | ​ | $ | 7,956
Net investment hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cross-currency swap | ​ | ​ | ​ | (7,690) |  | ​ | 7,545 | ​ | ​ | (2,525) | ​ | ​ | 7,243
Total | ​ | ​ | $ | (6,001) | ​ | $ | 13,214 | ​ | $ | 4,174 | ​ | $ | 15,199
​ ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | (Gain) Loss Reclassified into Income | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ | Quarter Ended | ​ | Six Months Ended | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | December 31, | ​ | December 31, | ​ | Location of (Gain) Loss
​ |  | ​ | 2024 |  | 2023 | ​ | 2024 | ​ | 2023 | ​ | in Income Statement
Cash flow hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Forward starting swaps | ​ | ​ | $ | (2,155) |  | $ | (2,620) | ​ | $ | (4,754) | ​ | $ | (5,159) | ​ | Interest expense
Net investment hedges | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cross-currency swap | ​ | ​ | ​ | (660) |  | ​ | (837) | ​ | ​ | (1,442) | ​ | ​ | (1,535) | ​ | Interest expense
Total | ​ | ​ | $ | (2,815) | ​ | $ | (3,457) | ​ | $ | (6,196) | ​ | $ | (6,694) | ​ | ​ | ​ | ​ | ​ | ​
​ Gains or losses related to the net investment hedges are classified as foreign currency translation adjustments in the schedule of changes in Accumulated Other Comprehensive Income (“AOCI”) in Note 8, as these items are attributable to the Company’s hedges of its net investment in foreign operations. Gains or losses related to the cash flow hedges are classified as Unrealized gains (losses) on cash flow hedges in the schedule of changes in AOCI in Note 8. Fair value measurements of other financial instruments – The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate fair value. Cash and cash equivalents, certificates of deposit, accounts receivable, and accounts payable – The carrying amounts reported in the Consolidated Balance Sheets approximate fair value because of the short-term nature of these items. Long-term debt – The carrying amounts reported in the Consolidated Balance Sheets for the amount drawn on our line-of-credit facility and long-term debt approximates fair value because our interest rate is variable and reflects current market rates.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 820 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/820/tableOfContent + Details
Name: | us-gaap_FairValueMeasurementInputsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration