Fair Value of Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2020

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 as of June 30, 2020:


	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	$	27,159	$	27,159	$	—	$	—


Total assets at fair value	$	27,159	$	27,159	$	—	$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	27,159	$	27,159	$	—	$	—
Forward foreign currency exchange contracts	26		—		26		—
Interest rate swap agreement	9,433		—		9,433		—
Liability for contingent consideration	46,334		—		—		46,334
Total liabilities at fair value	$	82,952	$	27,159	$	9,459	$	46,334

The following table presents assets and liabilities measured at fair value on a recurring basis as of 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	$	—	$	—


Total assets at fair value	$	25,787	$	25,787	$	—	$	—
Liabilities:
Deferred compensation plan investments, current and non-current portion	$	25,787	$	25,787	$	—	$	—
Forward foreign currency exchange contracts	21		—		21		—
Interest rate swap agreement	3,504		—		3,504		—
Liability for contingent consideration, current and non-current	77,925		—		—		77,925
Total liabilities at fair value	$	107,237	$	25,787	$	3,525	$	77,925

Schedule of Changes in Fair Value Of Contingent Consideration

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 fiscal year ended June 30, 2020.


	June 30, 2020
	Worldwide Communications & Services Segment
	(in thousands)
Fair value at beginning of period	$	77,925

Payments	(38,532)
Change in fair value	6,941

Fair value at end of period	$	46,334

The table below provides a summary of the changes in fair value of the Company's contingent consideration for the Network1 and Intelisys earnouts for the fiscal year ended June 30, 2019. The final earnout payment due to former shareholders of Network1 was paid during the fiscal year ended June 30, 2019.


	June 30, 2019
	Worldwide Communications & Services Segment
	(in thousands)
Fair value at beginning of period	$	108,233

Payments	(45,796)

Change in fair value	15,200
Fluctuation due to foreign currency exchange	288
Fair value at end of period	$	77,925

Valuation techniques and significant observable inputs used in recurring Level 3 fair value measurements for our contingent consideration liabilities as of June 30, 2020 and 2019 were as follows.

Reporting Period

Valuation Technique

Significant Unobservable Inputs

Weighted Average Rates^(a)

June 30, 2020

Discounted cash flow

Weighted average cost of capital

3.0

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. Since the earnout period for Intelisys closed on June 30, 2020 the weighted average cost of capital represents the cost the debt. There is no EBITDA growth to report in the current year.