v3.26.3
Note 3 - Fair Value Measurements
 3 Months Ended
Sep. 30, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

3)      Fair Value Measurements

 

The financial instruments shown below are presented at fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models may be applied.

 

Assets and liabilities recorded at fair value in the consolidated balance sheet are categorized based upon the level of judgment associated with the inputs used to measure their fair values. Hierarchical levels directly related to the amount of subjectivity associated with the inputs to fair valuation of these assets and liabilities and the methodologies used in valuation are as follows:

 

Level 1 – Quoted prices (unadjusted) in active markets for identical assets and liabilities. The Company’s deferred compensation plan assets consist of shares in various mutual funds (investments are participant-directed) which invest in a broad portfolio of debt and equity securities. These assets are valued based on publicly quoted market prices for the funds’ shares as of the balance sheet dates.

 

Level 2 – Inputs, other than quoted prices in an active market, that are observable either directly or indirectly through correlation with market data. For foreign exchange forward contracts and interest rate swaps, the Company values the instruments based on the market price of instruments with similar terms, which are based on spot and forward rates as of the balance sheet dates. The Company has considered the creditworthiness of counterparties in valuing all assets and liabilities.

 

Level 3 – Unobservable inputs based upon the Company’s best estimate of what market participants would use in pricing the asset or liability. 

 

There were no transfers of assets or liabilities between any levels of the fair value measurement hierarchy at September 30, 2026 or  June 30, 2026. The Company’s policy is to recognize transfers between levels as of the date they occur.

 

Cash and cash equivalents, accounts receivable, accounts payable, and debt are carried at cost, which approximates fair value.

 

The fair values of financial instruments were as follows (in thousands):

 

  

September 30, 2026

 
  

Total

  

Level 1

  

Level 2

  

Level 3

 

Financial Assets

                

Marketable securities - deferred compensation plan

 $6,679  $6,679  $-  $- 

Interest rate swaps

  4,952   -   4,952   - 

Foreign exchange contracts

  153   -   153   - 
                 

Financial Liabilities

                

Foreign exchange contracts

 $-  $-  $-  $- 

 

  

June 30, 2026

 
  

Total

  

Level 1

  

Level 2

  

Level 3

 

Financial Assets

                

Marketable securities - deferred compensation plan

 $6,680  $6,680  $-  $- 

Interest rate swaps

  2,310   -   2,310   - 
                 

Financial Liabilities

                

Foreign exchange contracts

 $299  $-  $299  $- 

 

The Company updates its assumptions each reporting period based on new developments and records such amounts at fair value based on the revised assumptions.