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Fair Value Measurements
 3 Months Ended
Sep. 30, 2019
Fair Value Measurements  
Fair Value Measurements

11.  Fair Value Measurements

Short-term investments

As of September 30, 2019, our short-term investments consist of cash deposits held at financial institutions. We consider the carrying amounts of these short-term investments to be representative of their fair value.

Current Assets and Liabilities

 

We consider the carrying amounts of current assets and current liabilities to be representative of their fair value because of the current nature of these items.

 

Contingent Consideration on Acquisitions

 

We determine the fair value of contingent consideration on acquisitions based on contractual terms, our current forecast of performance factors related to the acquired business and an applicable discount rate.

 

Letters of Credit

 

We obtain letters of credit in connection with certain regulatory and insurance obligations, inventory purchases and other contractual obligations. The carrying values of these letters of credit are considered to be representative of their fair values because of the nature of the instruments.

 

Debt

 

We record debt, including term loans and revolver balances, at book value in our consolidated financial statements. We believe the carrying value of the debt is approximately equal to its fair value, due to the variable nature of the instruments.

 

Derivatives

We determine the fair value of derivative instruments based upon pricing models using observable market inputs for these types of financial instruments, such as spot and forward currency translation rates.

Non-financial assets

 

Our non-financial assets, which primarily consist of goodwill, other intangible assets, property and equipment, and lease-related ROU assets, are not required to be measured at fair value on a recurring basis, and instead are reported at carrying value in the consolidated balance sheet. We assess the carrying values of non-financial assets for impairment on a periodic basis or whenever events or changes in circumstances indicate an asset may not be fully recoverable.

 

Fair Value of Assets (Liabilities)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

June 30, 2019

As of

    

Level 1

    

Level 2

    

Level 3

    

Level 1

    

Level 2

    

Level 3

Short-term investments

 

$

24,000

 

$

 —

 

$

 —

 

$

24,000

 

$

 —

 

$

 —

Derivatives asset (liability)

 

$

 —

 

$

20

 

$

 —

 

$

 —

 

$

383

 

$

 —

Interest rate swap (liability)

 

$

 —

 

$

(1,698)

 

$

 —

 

$

 —

 

$

(977)

 

$

 —

Contingent consideration on acquisitions

 

$

 —

 

$

 —

 

$

(7,603)

 

$

 —

 

$

 —

 

$

 —

 

During the three months ended September 30, 2019, we recorded $7,603 of contingent consideration associated with the Osprey acquisition, inclusive of accrued interest.