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FAIR VALUE MEASUREMENTS | 3 Months Ended
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Sep. 30, 2016
Fair Value Disclosures [Abstract] |
FAIR VALUE MEASUREMENTS | (5) FAIR VALUE MEASUREMENTS Recurring Fair Value Measurements The following table represents the Company's financial assets and liabilities which are measured at fair value on a recurring basis (in thousands):
Description | Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3)
September 30, 2016 |  |  |  |
Cash equivalents | $ | 128 |  | $ | 128 |  | $ | — |  | $ | — |
FFF call right | 16,523 |  | — |  | — |  | 16,523 |
Deferred compensation plan assets | 42,830 |  | 42,830 |  | — |  | — |
Total assets | $ | 59,481 |  | $ | 42,958 |  | $ | — |  | $ | 16,523 |
Earn-out liabilities | $ | 2,359 |  | $ | — |  | $ | — |  | $ | 2,359 |
FFF put right | 23,947 |  | — |  | — |  | 23,947 |
Total liabilities | $ | 26,306 |  | $ | — |  | $ | — |  | $ | 26,306 |
June 30, 2016 |  |  |  |
Cash equivalents | $ | 83,846 |  | $ | 83,846 |  | $ | — |  | $ | — |
Corporate debt securities | 33,132 |  | — |  | 33,132 |  | — |
Asset-backed securities | 14,757 |  | — |  | 14,757 |  | — |
Deferred compensation plan assets | 41,917 |  | 41,917 |  | — |  | — |
Total assets | $ | 173,652 |  | $ | 125,763 |  | $ | 47,889 |  | $ | — |
Earn-out liabilities | $ | 4,128 |  | $ | — |  | $ | — |  | $ | 4,128 |
Total liabilities | $ | 4,128 |  | $ | — |  | $ | — |  | $ | 4,128 |
Cash equivalents are included in cash and cash equivalents. Corporate debt securities and asset-backed securities were included in current and long-term marketable securities at June 30, 2016 (see Note 4 - Marketable Securities). The fair value of the Company's corporate debt securities and asset-backed securities, classified as Level 2, were valued using quoted prices for similar securities in active markets or quoted prices for identical or similar securities in markets that are not active. Deferred compensation plan assets consist of highly liquid mutual fund investments, which we have classified as Level 1. The current portion of deferred compensation plan assets was included in prepaid expenses and other current assets ($2.7 million and $2.0 million at September 30, 2016 and June 30, 2016, respectively) in the accompanying condensed consolidated balance sheets. Earn-out liabilities were incurred in connection with acquisitions of InflowHealth, LLC ("Inflow") on October 1, 2015 and Healthcare Insights, LLC ("HCI") on July 31, 2015. At September 30, 2016 and June 30, 2016, the Company's earn-out liabilities are classified as Level 3. The fair value of the earn-out liabilities was determined using the Monte Carlo simulation method and are based on future earnings. For the three months ended September 30, 2016, the Company recognized a gain of $1.8 million related to the decrease in the value of InFlow and HCI earn-out liabilities within selling, general and administrative expenses in the accompanying condensed consolidated statements of income. Financial Instruments Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Level 3) Pursuant to a shareholders' agreement entered into in connection with the Company's equity investment in FFF Enterprises, Inc. ("FFF") on July 26, 2016 (see Note 8 - Investments), the majority shareholder of FFF obtained a put right ("FFF put right") that provides such shareholder the right to sell all or any portion of its interest in FFF to the Company, which is exercisable beginning on the fourth anniversary of the investment closing date at a per share price equal to FFF's earnings before interest, taxes, depreciation and amortization ("EBITDA") over the twelve calendar months prior to the purchase date multiplied by a market adjusted multiple, adjusted for any outstanding debt and cash and cash equivalents ("Equity Value per Share"). In addition, the shareholders' agreement provides the Company with a call right ("FFF call right") to purchase the remaining interest in FFF from the majority shareholder, which is exercisable at any time within 180 calendar days after the date of a Key Man Event (generally defined in the shareholders' agreement as the resignation, termination for cause, death or disability of the majority shareholder). In the event that the FFF put or call rights are exercised, the purchase price for the additional interest in FFF will be at a per share price equal to the Equity Value per Share. The fair value of the FFF put and call rights at September 30, 2016 were determined using a Longstaff-Schwartz model based on the Equity Value per Share calculation with unobservable inputs, which include the estimated FFF put and call rights' expiration dates, the forecast of FFF's EBITDA over the option period, forecasted movements in the overall market, and the likelihood of a Key Man Event. Significant changes to Equity Value per Share could have a significant impact on the fair values of the FFF put and call rights depending on changes in key assumptions, which include the estimated put and call rights' expiration dates, forecasted movements in the overall market, and the likelihood of a Key Man Event. The Company recorded the FFF put and call rights within long term other liabilities and long term other assets, respectively, within the accompanying condensed consolidated balance sheet. The net change in the fair value of the FFF put and call rights is recorded within other expense, net, in the accompanying condensed consolidated statements of income, and was zero for the three months ended September 30, 2016. Non-Recurring Fair Value Measurements During the three months ended September 30, 2016, no non-recurring fair value measurements were required related to the testing of goodwill and intangible assets for impairment. However, purchase price allocations required significant non-recurring Level 3 inputs (see Note 3 - Business Acquisitions). The preliminary fair values of the acquired intangible assets resulting from the acquisition of Acro Pharmaceuticals were determined using the income approach. Financial Instruments For Which Fair Value Only is Disclosed The fair value of non-interest bearing notes payable, classified as Level 2, is less than their carrying value by approximately $0.7 million at both September 30, 2016 and June 30, 2016, respectively, based on an assumed market interest rate of 2.4% and 2.1% at September 30, 2016 and June 30, 2016, respectively. Other Financial Instruments The fair value of cash, accounts receivable, accounts payable and accrued liabilities approximates carrying value because of the short-term nature of these financial instruments.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 28 -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14064-108612 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13537-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 16 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13504-108611 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73719730&loc=d3e13433-108611 + Details
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