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Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Schedule 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 at December 31, 2019:

	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	$	28,839			$	28,839			$	—			$	—
Forward foreign currency exchange contracts	125				—				125				—
Total assets at fair value	$	28,964			$	28,839			$	125			$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	28,839			$	28,839			$	—			$	—
Forward foreign currency exchange contracts	320				—				320				—
Interest rate swap agreement	3,627				—				3,627				—
Liability for contingent consideration	45,043				—				—				45,043
Total liabilities at fair value	$	77,829			$	28,839			$	3,947			$	45,043

The following table summarizes the valuation of the Company’s remaining assets and liabilities measured at fair value on a recurring basis at June 30, 2019:

	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	$	25,787			$	25,787			$	—			$	—
Forward foreign currency exchange contracts	165				—				165				—
Total assets at fair value	$	25,952			$	25,787			$	165			$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	25,787			$	25,787			$	—			$	—
Forward foreign currency exchange contracts	168				—				168				—
Interest rate swap agreement	3,504				—				3,504				—
Liability for contingent consideration	77,925				—				—				77,925
Total liabilities at fair value	$	107,384			$	25,787			$	3,672			$	77,925

Schedule 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 for the Intelisys earnout, which is measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the quarter ended December 31, 2019.

	Quarter ended December 31, 2019				Six months ended December 31, 2019
	Worldwide Communications & Services Segment
	(in thousands)
Fair value at beginning of period	$	80,397			$	77,925
Payments	(38,531		)		(38,531		)
Change in fair value of contingent consideration	3,176				5,649
Fair value at end of period	$	45,043			$	45,043

The table below provides a summary of the changes in fair value of the Company’s contingent considerations (Level 3) for the Network1 and Intelisys earnouts for the quarter and six months ended December 31, 2018.

	Quarter ended December 31, 2018				Six months ended December 31, 2018
	Worldwide Communications & Services Segment
	(in thousands)
Fair value at beginning of period	$	80,173			$	108,233
Payments	(10,813		)		(43,060		)
Change in fair value of contingent consideration	1,850				6,434
Foreign currency translation adjustment	676				279
Fair value at end of period	$	71,886			$	71,886

Valuation techniques and significant observable inputs used in recurring Level 3 fair value measurements for our contingent consideration liability related to Intelisys at December 31, 2019 and June 30, 2019 were as follows.

Reporting Period		Valuation Technique		Significant Unobservable Inputs		Weighted Average Rates(a)
December 31, 2019		Discounted cash flow		Weighted average cost of capital		13.9	%
				Adjusted EBITDA growth rate		28.1	%
June 30, 2019		Discounted cash flow		Weighted average cost of capital		14.2	%
				Adjusted EBITDA growth rate		21.5	%

^(a) Weighted average rates identified for each significant unobservable input relate to the valuation of the Intelisys contingent consideration.

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258

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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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

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