Company: TEAM
Filing Date: 2025-01-31
Form Type: 10-Q
Source: 0001650372-25-000009
Chunk: 14

Company: Atlassian Corp
Filing Date: 2025-01-31
Form: 10-Q
Item: Part I, Item 1
Chunk 14
---
, 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 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 2024 and the six months ended December 31, 2024 (in thousands):Equity Method InvestmentBalance as of June 30, 2023$85,436 Share of losses(11,262)Effect of change in exchange rates336 Balance as of June 30, 202474,510 Share of losses(15,258)Effect of change in exchange rates(3,814)Balance as of December 31, 2024$55,438 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 December 31, 2024 (in thousands):Notional Amounts of Derivative InstrumentsNotional Amount by Term to MaturityClassification by Notional AmountUnder 12 monthsOver 12 monthsTotalCash Flow HedgeNon HedgeTotalForward contracts$910,517 $71,612$982,129$704,930$277,199 $982,129The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2024 (in thousands):Notional Amounts of Derivative InstrumentsNotional Amount by Term to MaturityClassification by Notional AmountUnder 12 monthsOver 12 monthsTotalCash Flow