Derivative Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of June 30, 2021, we had fourteen outstanding interest rate swap contracts indexed to USD LIBOR, three of which are not highly effective and are therefore not designated for hedge accounting. These hedges have varying start dates and maturity dates through April 2028.


Interest rate swap contracts outstanding:	Notional Amounts
Contracts accruing interest as of June 30, 2021	$	500,000
Contracts with a future start date	330,000
Total	$	830,000

Derivatives Not Designated as Hedging Instruments

As of June 30, 2021, we had the following outstanding currency derivative contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions or balances denominated in Australian Dollar, British Pound, Canadian Dollar, Danish Krone, Euro, Indian Rupee, Japanese Yen, Mexican Peso, New Zealand Dollar, Norwegian Krone, Philippine Peso, Swiss Franc and Swedish Krona:

Notional Amount

Effective Date

Maturity Date

Number of Instruments

Index

$499,084

September 2019 through June 2021

Various dates through October 2024

596

Various

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the years ended June 30, 2021, 2020 and 2019 for derivative instruments for which we did not elect hedge accounting and de-designated derivative financial instruments that no longer qualify as hedging instruments.


		Amount of Gain (Loss) Recognized in Net (Loss) Income						Affected line item in the Statement of Operations
	Year Ended June 30,
		2021		2020		2019
Currency contracts		$	(24,235)	$	20,882	$	24,215	Other (expense) income, net
Interest rate swaps		3,507		(318)		(721)		Other (expense) income, net
Total		$	(20,728)	$	20,564	$	23,494

Derivative Instruments in Statement of Financial Position, Fair Value

The table below presents the fair value of our derivative financial instruments as well as their classification on the balance sheet as of June 30, 2021 and June 30, 2020. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.


	June 30, 2021
	Asset Derivatives							Liability Derivatives
	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in Consolidated Balance Sheet		Net amount		Balance Sheet line item	Gross amounts of recognized liabilities		Gross amount offset in Consolidated Balance Sheet		Net amount
Derivatives designated as hedging instruments
Derivatives in cash flow hedging relationships
Interest rate swaps	Other current assets / other assets	$	—	$	—	$	—	Other current liabilities / other liabilities	$	(23,527)	$	176	$	(23,351)
Cross-currency swaps	Other assets	—		—		—		Other liabilities	(9,914)		—		(9,914)
Derivatives in net investment hedging relationships

Currency forward contracts	Other assets	—		—		—		Other current liabilities / other liabilities	(11,379)		—		(11,379)
Total derivatives designated as hedging instruments		$	—	$	—	$	—		$	(44,820)	$	176	$	(44,644)

Derivatives not designated as hedging instruments
Interest rate swaps	Other assets	$	—	$	—	$	—	Other liabilities	$	(1,842)	$	—	$	(1,842)
Currency forward contracts	Other current assets / other assets	1,796		(117)		1,679		Other current liabilities / other liabilities	(11,510)		3,238		(8,272)
Currency option contracts	Other current assets / other assets	—		—		—		Other current liabilities / other liabilities	(3,315)		235		(3,080)
Total derivatives not designated as hedging instruments		$	1,796	$	(117)	$	1,679		$	(16,667)	$	3,473	$	(13,194)


	June 30, 2020
	Asset Derivatives							Liability Derivatives
	Balance Sheet line item	Gross amounts of recognized assets		Gross amount offset in Consolidated Balance Sheet		Net amount		Balance Sheet line item	Gross amounts of recognized liabilities		Gross amount offset in Consolidated Balance Sheet		Net amount
Derivatives designated as hedging instruments
Derivatives in cash flow hedging relationships
Interest rate swaps	Other current assets / other assets	$	—	$	—	$	—	Other liabilities	$	(31,161)	$	—	$	(31,161)
Cross-currency swaps	Other assets	4,462		—		4,462		Other liabilities	(4,746)		—		(4,746)
Derivatives in net investment hedging relationships
Currency forward contracts	Other assets	—		—		—		Other current liabilities / other liabilities	(6,829)		—		(6,829)
Total derivatives designated as hedging instruments		$	4,462	$	—	$	4,462		$	(42,736)	$	—	$	(42,736)

Derivatives not designated as hedging instruments
Interest rate swaps	Other assets	$	—	$	—	$	—	Other liabilities	$	(8,359)	$	—	$	(8,359)
Currency forward contracts	Other current assets / other assets	9,702		(1,753)		7,949		Other current liabilities / other liabilities	(2,136)		446		(1,690)
Currency option contracts	Other current assets / other assets	1,699		(270)		1,429		Other current liabilities / other liabilities	(38)		—		(38)
Total derivatives not designated as hedging instruments		$	11,401	$	(2,023)	$	9,378		$	(10,533)	$	446	$	(10,087)

Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net

The following table presents the effect of our derivative financial instruments designated as hedging instruments and their classification within comprehensive (loss) income for the years ended June 30, 2021, 2020 and 2019:


		Amount of Net Gain (Loss) on Derivatives Recognized in Comprehensive Income
	Year Ended June 30,
		2021		2020		2019
Derivatives in cash flow hedging relationships
Interest rate swaps		$	3,340	$	(28,259)	$	(20,400)
Cross-currency swaps		6,996		3,689		(3,009)
Derivatives in net investment hedging relationships
Cross-currency swaps		—		—		6,557
Currency forward contracts		(19,052)		21,240		14,726
Total		$	(8,716)	$	(3,330)	$	(2,126)

Reclassification out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive loss for the years ended June 30, 2021, 2020 and 2019:


		Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income						Affected line item in the Statement of Operations
	Year Ended June 30,
		2021		2020		2019
Derivatives in cash flow hedging relationships
Interest rate swaps		$	6,967	$	3,041	$	144	Interest expense, net
Cross-currency swaps		(10,950)		4,583		5,098		Other (expense) income, net
Total before income tax		(3,983)		7,624		5,242		(Loss) income before income taxes
Income tax		(106)		(1,850)		(1,310)		Income tax expense (benefit)
Total		$	(4,089)	$	5,774	$	3,932

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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+ Details