Derivative Instruments

12 Months Ended

Jun. 30, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Interest Rate Swap:

We are subject to interest rate risk related to our revolving credit facility and have entered into an interest rate swap agreement that is based on LIBOR to manage this exposure. The interest rate swap agreement is designated as a cash flow hedge that qualifies for hedge accounting under the hypothetical derivative method. Fair value adjustments are recorded as a component of Accumulated Other Comprehensive Income, net of tax (“AOCI”) in the Consolidated Balance Sheets. Balances in AOCI are reclassified into earnings when transactions related to the underlying risk are settled. As of June 30, 2022 the interest rate swap had a notional value totaling $40.0 million and a weighted average LIBOR fixed rate of 0.834%. See Note 14 - Fair Value of Notes to Consolidated Financial Statements for information regarding the fair value of our interest rate swap.

At June 30, 2022, our interest rate swap was recorded in current assets and non-current assets at $0.9 million and $1.1 million, respectively.

The pre-tax balance of interest rate swap gains in AOCI as of June 30, 2022 was $2.0 million. See Note 19 - Accumulated Other Comprehensive Income of Notes to Consolidated Financial Statements for information regarding activity recorded as a component of AOCI.

Stock Warrants:

We hold a total investment of $2.0 million in a privately-held company, including $1.5 million in stock warrants purchased during fiscal year 2017. The investment in stock warrants is accounted for as a derivative instrument and is included in the Other Assets line of the Consolidated Balance Sheets. The stock warrants are convertible into equity shares of the privately-held company upon achieving certain milestones. The value of the stock warrants will fluctuate primarily in relation to the value of the privately-held company's underlying securities, either providing an appreciation in value or potentially expiring with no value. During the year ended June 30, 2022, the change in fair value of the stock warrants was not significant. See Note 14 - Fair Value of Notes to Consolidated Financial Statements for more information on the valuation of these securities.

Information on the location and amounts of derivative fair values in the Consolidated Balance Sheets are presented below.


Fair Values of Derivative Instruments on the Consolidated Balance Sheets
	Asset Derivatives					Liability Derivatives
		Fair Value As of					Fair Value As of
(Amounts in Thousands)	Balance Sheet Location	June 30, 2022		June 30, 2021		Balance Sheet Location	June 30, 2022		June 30, 2021
Derivatives designated as hedging instruments:
Interest Rate Swap	Prepaid Expenses and Other Current Assets	$	851	$	—		$	—	$	—
Interest Rate Swap	Other Assets	1,135		—			—		—
		$	1,986	$	—		$	—	$	—
Derivatives not designated as hedging instruments:
Stock warrants	Other Assets	$	1,500	$	1,500		$	—	$	—
Total derivatives		$	3,486	$	1,500		$	—	$	—