Derivative Instruments and Hedging Activities

9 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to fluctuations in the applicable exchange rate on its investments in foreign operations. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated its exposure from its investments in its European operations by denominating a portion of its debt in euros. At March 31, 2017, the Company had euro-denominated debt outstanding of $744.0 million that is designated and qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the effective portions of the translation gains or losses are reported in accumulated other comprehensive income/(loss) as part of the cumulative translation adjustment. The ineffective portions of the translation gains or losses are reported in the statement of operations. The following table includes net investment hedge activity during the three and nine months ended March 31, 2017 and March 31, 2016.

	Three Months Ended    March 31,						Nine Months Ended    March 31,
(Dollars in millions)	2017			2016			2017			2016
Unrealized foreign exchange gain/(loss) within other      comprehensive income	$	(13.9	)	$	(4.1	)	$	(3.9	)	$	(1.6	)
Unrealized foreign exchange gain/(loss) within statement      of operations	$	(13.5	)	$	(3.1	)	$	(5.9	)	$	1.3

The net accumulated gain of the instrument designated as the hedge as of March 31, 2017 within other comprehensive income/(loss) was approximately $77.5 million. Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated.