Investments

12 Months Ended

Jun. 30, 2021

Investment Portfolio:

We held no investments in our portfolio as of June 30, 2021. As of June 30, 2020, our investment portfolio consisted of certificates of deposit purchased in the secondary market. Secondary market certificates of deposit are classified as investment securities, being purchased in the secondary market through a broker and available to be sold in the secondary market. Our investment policy dictates that certificates of deposit must be FDIC insured. Our investment portfolio was available for use in current operations, therefore investments were recorded within Current Assets in the Consolidated Balance Sheets.

Investments were classified as available-for-sale securities which were recorded at fair value. See Note 14 - Fair Value of Notes to Consolidated Financial Statements for more information on the fair value of available-for-sale securities. The amortized cost basis reflected the original purchase price, with discounts and premiums amortized over the life of the available-for-sale securities. Unrealized losses on available-for-sale securities are recognized in earnings when there is intent to sell or it is likely to be required to sell before recovery of the loss, or when the available-for-sale securities have incurred a credit loss. Otherwise, unrealized gains and losses are recorded net of the tax-related effect as a component of Shareholders’ Equity.









	June 30, 2020
(Amounts in Thousands)	Certificates of Deposit
Amortized cost basis	$	5,250
Unrealized holding gains	44
Unrealized holding losses	—
Fair Value	$	5,294

There were no realized losses as a result of sales during fiscal years 2021 and 2020.

Supplemental Employee Retirement Plan Investments:

We maintain a self-directed supplemental employee retirement plan (“SERP”) in which executive employees are eligible to participate. The SERP utilizes a rabbi trust, and therefore assets in the SERP portfolio are subject to creditor claims in the event of bankruptcy. We recognize SERP investment assets on the Consolidated Balance Sheets at current fair value. The SERP assets consist primarily of equity funds, balanced funds, target date funds, a bond fund, and a money market fund. A SERP liability of the same amount is recorded on the Consolidated Balance Sheets representing an obligation to distribute SERP funds to participants. The SERP investment assets are classified as trading, and accordingly, realized and unrealized gains and losses are recognized in income in the Other Income (Expense) category. Adjustments made to revalue the SERP liability are also recognized in income as selling and administrative expenses and offset valuation adjustments on SERP investment assets. Net unrealized holding gains for securities held at June 30, 2021, 2020, and 2019 were, in thousands, $2,725, $41, and $223, respectively. SERP asset and liability balances were as follows:


	June 30
(Amounts in Thousands)	2021		2020
SERP investments - current asset	$	3,905	$	3,622
SERP investments - other long-term asset	10,144		8,353
Total SERP investments	$	14,049	$	11,975
SERP obligation - current liability	$	3,905	$	3,622
SERP obligation - other long-term liability	10,144		8,353
Total SERP obligation	$	14,049	$	11,975

Equity securities without readily determinable fair value:

We hold a total investment of $2.0 million in a privately-held company, including $0.5 million in equity securities without readily determinable fair value purchased during fiscal year 2016. The investment in equity securities without readily determinable fair value is included in the Other Assets line of the Consolidated Balance Sheets. See Note 14 - Fair Value of Notes to Consolidated Financial Statements for more information on the valuation of these securities. We do not hold a majority voting interest and are not the variable interest primary beneficiary of the privately-held company, thus consolidation is not required.