Note 5 - Fair Value Measures
|12 Months Ended|
Jun. 30, 2020
|Notes to Financial Statements|
|Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]||
Fair value is defined as the price that would be received from selling an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, the use of various valuation methodologies, including market, income and cost approaches is permissible. We consider the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability.
Fair Value Hierarchy
.The accounting guidance for fair value measurements establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. There are
threelevels of inputs that
maybe used to measure fair value based on the reliability of inputs. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment and
mayaffect their placement within the fair value hierarchy levels. We have categorized our cash equivalents as Level
1assets within the fair value hierarchy as there are quoted prices in active markets for identical assets or liabilities. As the interest rate on our long-term debt is a variable rate, adjusted based on market conditions, it approximates the current market-rate for similar instruments available to companies with comparable credit quality and maturity, and therefore, our long-term debt is categorized as a Level
2liability in the fair value hierarchy. There were
3assets or liabilities held by the Company as of
June 30, 2020and
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
.We measure certain assets at fair value on a non-recurring basis. These assets are recognized at fair value when they are deemed to be other-than-temporarily impaired. With the exception of the
$5.2million retail asset impairment charge, we did
notrecord any additional other-than-temporary impairments on those assets required to be measured at fair value on a non-recurring basis during fiscal
2020.In addition, we did
nothold any available-for-sale securities during fiscal
nofair value measurements were required. Refer to Note
uring and Impairment Activities,for further disclosure of the retail impairment charge.
Assets and Liabilities Measure
d at Fair Value for Disclosure Purposes Only
June 30, 2020the fair value of our long-term debt was
$50.0million, which approximated its carrying amount given the application of a floating interest rate equal to the monthly LIBOR rate plus a spread using a debt leverage pricing grid.
The entire disclosure of the fair value measurement of assets and liabilities, which includes financial instruments measured at fair value that are classified in shareholders' equity, which may be measured on a recurring or nonrecurring basis.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef