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Derivative Financial Instruments
9 Months Ended
Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments

Note 7. Derivative Financial Instruments

The Company utilizes foreign currency forward contracts with reputable financial institutions to manage its exposure to fluctuations in foreign currency exchange rates on certain intercompany balances and foreign currency denominated cash, customer receivables and liabilities. The Company does not use derivative financial instruments for speculative or trading purposes. These forward contracts are not designated as hedging instruments for accounting purposes. Principal hedged currencies include the Euro, Japanese Yen, Swiss Franc, and U.S. Dollar. The periods of these forward contracts range up to approximately three months and the notional amounts are intended to be consistent with changes in the underlying exposures. The Company intends to exchange foreign currencies for U.S. Dollars at maturity.

As of March 31, 2022 and June 30, 2021, the Company had the following outstanding forward currency exchange contracts (in notional amount):

 

 

 

March 31,

 

 

As of June 30,

 

(In thousands and U.S. dollars)

 

2022

 

 

2021

 

Canadian Dollar

 

$

2,171

 

 

$

527

 

Swiss Franc

 

 

30,521

 

 

 

8,891

 

Chinese Yuan

 

 

687

 

 

 

1,927

 

Euro

 

 

3,862

 

 

 

19,037

 

British Pound

 

 

863

 

 

 

3,191

 

Indian Rupee

 

 

3,328

 

 

 

7,825

 

Japanese Yen

 

 

8,126

 

 

 

12,803

 

 

 

$

49,558

 

 

$

54,201

 

 

The Company entered into the foreign currency forward contracts on March 31, 2022 and June 30, 2021, respectively, and therefore, there was no amount recorded on the balance sheet.

The following table provides information about gain (loss) associated with the Company’s derivative financial instruments (in thousands):

 

 

 

Three Months Ended
March 31,

 

 

Nine Months Ended
March 31,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Foreign currency exchange gain (loss) on forward contracts

 

$

(234

)

 

$

108

 

 

$

(860

)

 

$

(1,055

)

Foreign currency transactions gain (loss)

 

 

(172

)

 

 

(134

)

 

 

(947

)

 

 

490