Annual report pursuant to Section 13 and 15(d)

Note 17 - Financial Instruments

v3.7.0.1
Note 17 - Financial Instruments
 12 Months Ended
Jun. 30, 2017
Notes to Financial Statements  
Fair Value Disclosures [Text Block]
(
17
)
     
Financial Instruments
 
We determine fair value as the price that would be received upon sale of an asset or paid upon transfer of a liability in an orderly transaction between market participants at the measurement date and in the principal or most advantageous market for that asset or liability. The fair value should be calculated based on assumptions that market participants would use in pricing the asset or liability,
not
on assumptions specific to the Company. In addition, the fair value of liabilities includes consideration of non-performance risk including our own credit risk. Each fair value measurement is reported in
one
of the
three
levels, determined by the lowest level input that is significant to the fair value measurement in its entirety. Level
1
inputs are based upon unadjusted quoted prices for identical instruments traded in active markets. Level
2
inputs are based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are
not
active, and model-based valuation techniques for which all significant assumptions are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level
3
inputs are generally unobservable and typically reflect management’s estimates of assumptions that market participants would use in pricing the asset or liability using model-based techniques that include option pricing models, discounted cash flow models, and similar techniques.
 
The following section describes the valuation methodologies we use to measure different financial assets and liabilities at fair value.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis
 
The following table presents our assets and liabilities measured at fair value on a recurring basis at
June 30, 2017
and
June 30, 2016
 
(in thousands):
 
   
June 30, 2017
    
June 30, 2016
  
   
Level 1
    
Level 2
    
Balance
    
Level 1
    
Level 2
    
Balance
  
Cash equivalents
   $
65,031
    $
-
    $
65,031
    $
60,479
    $
-
    $
60,479
 
Available-for-sale securities
    
-
     
-
     
-
     
-
     
-
     
-
 
Total
   $
65,031
    $
-
    $
65,031
    $
60,479
    $
-
    $
60,479
 
 
 
Cash equivalents consist of money market accounts, and mutual funds in U.S. government and agency fixed income securities. We use quoted prices in active markets for identical assets or liabilities to determine fair value. There were
no
transfers between level
1
and level
2
during fiscal years
2017
or
2016.
At
June 30, 2017
and
2016,
$7.3
million and
$7.8
million, respectively, of cash equivalents were restricted and classified as a long-term asset.
 
We did
not
hold any available-for-sale securities at
June 30, 2017
or
2016
as all municipal bonds matured and the proceeds were transferred to our operating cash accounts. There were
no
material gross unrealized gains or losses on available-for-sale securities at
June 30, 2017
or
June 30, 2016.
 
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
 
We measure certain assets, including our cost and equity method investments, at fair value on a nonrecurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. During the year ended
June 30, 2015,
we determined that certain long-lived assets of our retail design centers in Belgium were impaired, and an impairment charge of
$0.8
million was recorded at that time.