Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 136

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 8
Chunk 136
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 of gains and losses on strategic investments were as follows (in thousands):Fiscal Year Ended June 30,202520242023Unrealized losses recognized on publicly traded equity securities$— $— $(11,437)Unrealized gains recognized on privately held equity securities1,549 2,084 307 Unrealized losses recognized on privately held equity securities including impairment(967)(1,628)(7,642)Unrealized losses on privately held debt securities— (500)(350)Unrealized gains (losses), net$582 $(44)$(19,122)Realized gains recognized on publicly traded equity securities— 515 — Realized losses recognized on privately held equity securities(3,142)(2,546)— Realized losses on privately held debt securities— — (285)Losses on strategic investments, net$(2,560)$(2,075)$(19,407)Unrealized gains (losses) recognized during the reporting period on privately held equity securities still held at the reporting date$582 $456 $(6,986)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 includes downward adjustments and impairment.Realized gains on sales of 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.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. As of the date of sale, the Company used a discounted cash flow model to calculate the fair value of its retained equity interest. The fair value of the retained interest at the date of sale was $88.9 million, and is classified as a Level 3 investment in the fair value hierarchy. The inputs to the valuation included observable inputs, including capitalization rate, discount rate, and other management inputs, including the underlying building’s practical completion date. The maximum exposure to loss related to the Company’s investment in VFT equals the Company’s capital investment.The Company retained a minority equity interest of 13