Ubiquiti Inc. - 10-K filing on 2015-08-21

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Jun. 30, 2015

For certain of the Company’s financial instruments, including cash, accounts receivable and accounts payable, the carrying amounts approximate fair value due to their short maturities, and are therefore excluded from the fair value tables below. Additionally, as of June 30, 2015, we held $397.0 million of our $446.4 million of cash and cash equivalents in accounts of our subsidiaries outside of the United States and we will incur significant tax liabilities if we were to repatriate those amounts.

At June 30, 2015 and 2014 the Company had debt associated with Amended Credit Agreement and Original Credit Agreement, respectively, with Wells Fargo Bank (See Note 7). The fair value of the Company’s debt was estimated based on the current rates offered to the Company for debt with similar terms and remaining maturities and was Level 2 measurement.

As of June 30, 2015 and 2014, the fair value hierarchy for the Company’s financial liabilities was as follows (in thousands):



	June 30, 2015								June 30, 2014
	Fair Value		Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3
Liabilities:
Debt⁽¹⁾	$	97,500	$	—	$	97,500	$	—	$	72,254	$	—	$	72,254	$	—

(1) Debt is carried at historical cost on the Company's consolidated balance sheet.