Company: TEAM
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0001650372-25-000009
Chunk: 249

Company: Atlassian Corp
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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 held equity securities as of December 31, 2024 are summarized below (in thousands):Privately held equity securitiesInitial total cost$165,352 Cumulative net losses(2,491)Carrying value$162,861 The carrying values for privately held equity securities as of June 30, 2024 are summarized below (in thousands):Privately held equity securitiesInitial total cost$147,752 Cumulative net losses(2,491)Carrying value$145,261 Privately held equity securities’ cumulative net losses are comprised of downward adjustments and impairment charges of $7.5 million and upward adjustments of $5.0 million as of December 31, 2024 and June 30, 2024.Gains and Losses on Strategic InvestmentsThe components of gains and losses on strategic investments were as follows (in thousands):Three Months Ended December 31,Six Months Ended December 31,2024202320242023Unrealized losses recognized on privately held equity securities including impairment$— $(1,442)$— $(1,442)Unrealized losses, net$— $(1,442)$— $(1,442)Realized gains recognized on sales of publicly traded equity securities— — — 515 Realized losses recognized on privately held equity securities(2,611)— (2,645)— Losses on strategic investments, net$(2,611)$(1,442)$(2,645)$(927)Unrealized losses recognized during the reporting period on privately held equity securities still held at the reporting date$— $(1,442)$— $(1,442)Realized gains and losses recognized on sales of securities reflects 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.Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment.

13

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