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Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Summary of Assets and Liabilities Measured at Fair Value

The following table summarizes the valuation of the Company’s remaining assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:

	Total				Quoted prices in active markets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
	(in thousands)
Assets:
Deferred compensation plan investments, current and non-current portion	$	20,893			$	20,893			$	—			$	—
Forward foreign currency exchange contracts	642				—				642				—
Total assets at fair value	$	21,535			$	20,893			$	642			$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	20,893			$	20,893			$	—			$	—
Forward foreign currency exchange contracts	115				—				115				—
Liability for contingent consideration, current and non-current portion	110,880				—				—				110,880
Total liabilities at fair value	$	131,888			$	20,893			$	115			$	110,880

The following table summarizes the valuation of the Company’s remaining assets and liabilities measured at fair value on a recurring basis as of June 30, 2016:

	Total				Quoted prices in active markets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
	(in thousands)
Assets:
Deferred compensation plan investments, current and non-current portion	$	17,893			$	17,893			$	—			$	—
Forward foreign currency exchange contracts	33				—				33				—
Total assets at fair value	$	17,926			$	17,893			$	33			$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	17,893			$	17,893			$	—			$	—
Forward foreign currency exchange contracts	551				—				551				—
Liability for contingent consideration, current and non-current portion	24,652				—				—				24,652
Total liabilities at fair value	$	43,096			$	17,893			$	551			$	24,652

Summary of Changes in Fair Value of Contingent Considerations

The table below provides a summary of the changes in fair value of the Company’s contingent considerations (Level 3) for the Imago ScanSource, Network1 and Intelisys earnouts for the quarter and six months ended December 31, 2016:

	Contingent consideration for the quarter ended				Contingent consideration for the six months ended
	December 31, 2016				December 31, 2016
	Communications & Services Segment				Communications & Services Segment
	(in thousands)
Fair value at beginning of period	$	110,835			$	24,652
Issuance of contingent consideration	—				95,000
Payments	(1,607		)		(10,241		)
Change in fair value of contingent consideration	1,791				1,961
Foreign currency translation adjustment	(139		)		(492		)
Fair value at end of period	$	110,880			$	110,880

The table below provides a summary of the changes in fair value of the Company’s contingent considerations (Level 3) for the CDC, Imago ScanSource, and Network1 earnouts for the quarter and six months ended December 31, 2015:

	Contingent consideration for the quarter ended												Contingent consideration for the six months ended
	December 31, 2015												December 31, 2015
	Barcode, Networking & Security Segment				Communications & Services Segment				Total				Barcode, Networking & Security Segment				Communications & Services Segment				Total
	(in thousands)
Fair value at beginning of period	$	4,114			$	24,943			$	29,057			$	5,109			$	28,851			$	33,960
Payments	(3,133		)		(4,153		)		(7,286		)		(3,133		)		(4,153		)		(7,286		)
Change in fair value of contingent consideration	—				1,816				1,816				126				3,255				3,381
Foreign currency translation adjustment	175				238				413				(946		)		(5,109		)		(6,055		)
Fair value at end of period	$	1,156			$	22,844			$	24,000			$	1,156			$	22,844			$	24,000

Valuation techniques and significant observable inputs used in recurring Level 3 fair value measurements for our contingent consideration liabilities as of December 31, 2016 and June 30, 2016 were as follows.

Reporting Period		Valuation Technique		Significant Unobservable Inputs		Weighted Average Rates
December 31, 2016		Discounted cash flow		Weighted average cost of capital		15.2	%
				Adjusted EBITDA growth rate		30.4	%
June 30, 2016		Discounted cash flow		Weighted average cost of capital		17.7	%
				Adjusted EBITDA growth rate		44.0	%

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- References

No definition available.

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- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19207-110258

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- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=66048111&loc=d3e19190-110258

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