v3.25.1
Fair Value Measurements
 9 Months Ended
Mar. 31, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
ASC 820, Fair Value Measurements and Disclosures, establishes a framework for measuring fair value and categorizes the inputs used in measuring fair value as follows: observable inputs such as quoted prices in active markets (Level 1); inputs other than quoted prices in active markets that are observable, either directly or indirectly, or quoted prices that are not active (Level 2); and unobservable inputs in which there is little or no market data which requires development of assumptions that market participants would use in pricing the asset or liability (Level 3).
The financial instruments measured at fair value on a recurring basis consist of the following (in thousands):
Description of Financial Instrument Financial Statement
Classification		Fair Value
Hierarchy		March 31, 2025June 30, 2024
Fair Value
Contingent considerationOther accrued expenses and current liabilitiesLevel 3$(3,560)$(3,061)
Contingent considerationOther long-term liabilitiesLevel 3$(5,203)$(13,737)
Interest rate swap agreementsPrepaid expenses and other current assetsLevel 2$515 $— 
Interest rate swap agreementsOther long-term assetsLevel 2$12,883 $33,327 
Interest rate swap agreementsOther long-term liabilitiesLevel 2$(280)$— 
The Company uses interest rate swap agreements to manage its interest rate risk. The valuation of these instruments is determined using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of each derivative. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves.
The Company recognized contingent consideration liabilities in connection with certain acquisitions, representing potential earnout payments and other contingent payments. The fair values of these liabilities were determined using a valuation model which included an assessment of the most likely outcome, assumptions related to projected earnings of the acquired company and the application of a discount rate when applicable. Fair value of contingent consideration is reassessed quarterly, including an analysis of the significant inputs used in the evaluation, as well as the accretion of the discount. Changes in the fair value of contingent consideration are reflected within indirect costs and selling expenses and were $8.6 million and zero for the nine months ended March 31, 2025 and 2024, respectively.