Note 12. Fair Value (Tables)

6 Months Ended

Dec. 31, 2019

Fair Value Measurements, Recurring, Valuation Techniques

The following methods and assumptions were used to measure fair value:



Financial Instrument	Level	Valuation Technique/Inputs Used
Cash Equivalents: Money market funds	1	Market - Quoted market prices
Cash Equivalents: Commercial paper	2	Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information.
Available-for-sale securities: Secondary market certificates of deposit	2	Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information.
Available-for-sale securities: Municipal bonds	2	Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information.
Available-for-sale securities: U.S. Treasury and federal agencies	2	Market - Based on market data which use evaluated pricing models and incorporate available trade, bid, and other market information.
Trading securities: Mutual funds held in nonqualified SERP	1	Market - Quoted market prices
Derivative Assets: Stock warrants	3	Market - The privately-held company is in a start-up phase. The pricing of recent purchases or sales of the investment are considered, if any, as well as positive and negative qualitative evidence, in the assessment of fair value.
Contingent earn-out liability	3	Income - Based on a valuation model that measures the present value of the probable cash payments based upon the forecasted operating performance of the acquisition and a discount rate that captures the risk associated with the liability.

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

As of December 31, 2019 and June 30, 2019, the fair values of financial assets that are measured at fair value on a recurring basis using the market or income approach are categorized as follows:



	December 31, 2019
(Amounts in Thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents: Money market funds	$	38,147	$	—	$	—	$	38,147
Cash equivalents: Commercial paper	—		31,655		—		31,655
Available-for-sale securities: Secondary market certificates of deposit	—		5,970		—		5,970
Available-for-sale securities: Municipal bonds	—		875		—		875
Available-for-sale securities: U.S. Treasury and federal agencies	—		18,803		—		18,803
Trading Securities: Mutual funds in nonqualified SERP	12,690		—		—		12,690
Derivatives: Stock warrants	—		—		1,500		1,500
Total assets at fair value	$	50,837	$	57,303	$	1,500	$	109,640

	June 30, 2019
(Amounts in Thousands)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents: Money market funds	$	40,016	$	—	$	—	$	40,016
Cash equivalents: Commercial paper	—		29,408		—		29,408
Available-for-sale securities: Secondary market certificates of deposit	—		11,230		—		11,230
Available-for-sale securities: Municipal bonds	—		1,922		—		1,922
Available-for-sale securities: U.S. Treasury and federal agencies	—		19,919		—		19,919
Trading Securities: Mutual funds in nonqualified SERP	11,774		—		—		11,774
Derivatives: Stock warrants	—		—		1,500		1,500
Total assets at fair value	$	51,790	$	62,479	$	1,500	$	115,769
Liabilities
Contingent earn-out liability	—		—		360		360
Total liabilities at fair value	$	—	$	—	$	360	$	360

Non-recurring Fair Value Adjustment Technique [Table Text Block]



Non-recurring Fair Value Adjustment	Level	Valuation Technique/Inputs Used
Impairment of Leases	3	Income - Based on a valuation model that measures the present value of remaining lease payments less estimated sublease income at a discount rate that captures the risk associated with the future cash flows.

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Financial instruments that are not reflected in the Condensed Consolidated Balance Sheets at fair value that have carrying amounts which approximate fair value include the following:



Financial Instrument	Level	Valuation Technique/Inputs Used
Notes receivable	2	Market - Price approximated based on the assumed collection of receivables in the normal course of business, taking into account the customer’s non-performance risk.
Equity securities without readily determinable fair value	3	Cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Impairment is assessed qualitatively.