Company: TEAM
Filing Date: 2025-10-31
Form Type: 10-Q
Source: 0001650372-25-000068
Chunk: 12

Company: Atlassian Corp
Filing Date: 2025-10-31
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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) on strategic investments, net$26,526 $(34)Unrealized gains recognized during the reporting period on privately held equity securities still held at the reporting date$1,797 $— Unrealized gains recognized on privately held equity securities include upward adjustments from equity securities accounted for under the measurement alternative, while unrealized losses recognized on privately held equity securities include downward adjustments and impairment.Realized gains on sales of privately held securities, net, reflect the difference between the sale proceeds and the carrying value of the security at the beginning of the period or the purchase date, if later.

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Equity Method InvestmentVertical First Trust (“VFT”) was established for the construction project associated with the Company’s new global headquarters in Sydney, Australia (the “Australian HQ Property”). In fiscal year 2023, the Company completed a non-cash sale of the controlling interest of VFT to a third-party buyer as part of the contemplated transactions for the buyer to invest in and develop the Australian HQ Property. The Company retained a minority equity interest of 13% in the form of ordinary units in VFT and has significant influence in VFT. The Company’s interest in VFT is accounted for using the equity method in the condensed consolidated financial statements. Under the equity method, the Company records its proportionate share of VFT’s earnings or losses.The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal year 2025 and the three months ended September 30, 2025 (in thousands):Equity Method InvestmentBalance as of June 30, 2024$74,510 Share of losses(20,433)Effect of change in exchange rates(958)Balance as of June 30, 202553,119 Share of losses— Effect of change in exchange rates327 Balance as of September 30, 2025$53,446 The carrying amount of the Company’s investment in VFT was reported within strategic investments in the condensed consolidated balance sheets.

5. Derivative ContractsThe Company has derivative instruments that are used for hedging activities as discussed below.The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of September 30, 2025 (in thousands):Notional Amounts of Derivative InstrumentsNotional Amount by Term to MaturityClassification by Notional AmountUnder 12 monthsOver 12 monthsTotalCash Flow HedgeNon HedgeTotalForward contracts$936,656 $65,922$1,002,