Investments |
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| Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Investments | Investments
Non-current investments consisted of the following:
On May 1, 2025, the Company contributed its SGK Business to a newly-formed entity, Propelis, in exchange for consideration which included 40% of the common equity of Propelis and a $50,000 preferred equity investment in Propelis. The Company initially recognized these investments at fair value, which totaled $263,000 ($213,000 equity-method and $50,000 preferred equity investment). The Company will subsequently adjust the carrying amount of its equity-method investment for its share of earnings and losses reported by the investee, distributions received, and other-than-temporary impairments. As of June 30, 2026, the Company has redeemed $28,000 of it's preferred equity investment in Propelis.
The Company recognizes its portion of the earnings or losses for its equity-method investment in Propelis on a three-month lag to ensure consistency and timely filing of the Company’s financial statements. Consequently, for the three months ended June 30, 2026, the Company's portion of earnings (losses) for its equity-method investment in Propelis includes the months from January 2026 through March 2026. For the nine months ended June 30, 2026, the Company's portion of earnings (losses) for its equity-method investment in Propelis includes the months from July 2025 through March 2026. For the three and nine months ended June 30, 2026, the Company recognized $5,668 and $17,249, respectively, of equity-method losses for its equity-method investment in Propelis, which has been recorded as a component of administrative expense. Due to the three-month lag reporting, no equity method income or loss was recorded for the three and nine month periods ended June 30, 2025.
Note 7. Investments (continued)
Equity-method losses for the three and nine months ended June 30, 2026 included $4,476 and $13,674 of losses, respectively, representing the Company's portion of the investee's losses, and $1,192 and $3,575 of additional expense, respectively, reflecting the amortization of the Company's portion of the basis difference of the amortizable assets contributed from SGS & Co. ("SGS") to Propelis. The Company also recognized $919 and $3,427, respectively, of paid-in-kind interest income for the three and nine months ended June 30, 2026, related to the Company's preferred equity investment in Propelis, which was included as a component of other income (deductions), net.
The following table presents summarized financial information for Propelis:
(1) The Company recognizes its portion of the earnings or losses for its equity-method investment in Propelis on a three-month lag. The summarized financial information for Propelis has been presented for the months from July 2025 through March 2026 to coincide with the amounts reflected in the Company's consolidated financial statements.
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