Foreign Exchange Forward Contracts

6 Months Ended

Dec. 31, 2016

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Foreign Exchange Forward Contracts

12.Foreign Exchange Forward Contracts

The Company uses derivative financial instruments to manage exposures to foreign currency. The Company’s objective for holding derivatives is to use the most effective methods to minimize the impact of these exposures. The Company does not enter into derivatives for speculative or trading purposes. The Company records all derivatives on the balance sheet as "Other accrued liabilities" at fair value. Changes in the fair value of derivatives are recognized in earnings as "Other Income". The Company enters into foreign exchange forward contracts to mitigate the effect of gains and losses generated by foreign currency transactions related to certain operating expenses and re-measurement of certain assets and liabilities denominated in foreign currencies. These derivatives do not qualify as hedges.

At December 31, 2016, forward foreign currency contracts had a notional principal amount of $4.8 million and an immaterial unrealized loss. These contracts have maturities of less than 60 days. Changes in the fair value of these foreign exchange forward contracts are offset largely by re-measurement of the underlying assets and liabilities. At December 31, 2015, the Company did not have any derivative instruments outstanding.

Foreign currency transactions gains and losses from operations was gain of $1.1 million and $0.2 million for the three months ended December 31, 2016 and 2015, respectively.   Foreign currency transactions gains and losses from operations was gain of $0.8 million and $1.3 million for the six months ended December 31, 2016 and 2015, respectively.