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v3.22.2.2

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 3 Months Ended
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Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments, Location, Designated and Non-Designated, Gains (Losses) | The gains (losses) on derivatives in cash flow and net investment hedging relationships recognized in other comprehensive income for the indicated periods were as follows:
| Three Months Ended September 30, |  |
(In thousands) | 2022 |  | 2021 |  |  |  |
Derivatives Designated as Cash Flow Hedging Instruments: |  |  |  |  |  |  |
Rate lock agreements: |  |  |  |  |  |  |
Amounts included in the assessment of effectiveness | $ | 937 |  |  | $ | — |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |
Amounts included in the assessment of effectiveness | $ | 816 |  |  | $ | 853 |  |  |  |  |
Amounts excluded from the assessment of effectiveness | $ | 15 |  |  | $ | (1) |  |  |  |  |
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1): | $ | 3,679 |  |  | $ | 650 |  |  |  |  |
__________________ (1)No amounts were reclassified from AOCI into earnings related to the sale of a subsidiary, as there were no such sales during the periods presented. The locations and amounts of designated and non-designated derivatives’ gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows:
| Three Months Ended September 30, |  | Three Months Ended September 30,
| 2022 |  | 2021
(In thousands) | Revenues |  | Costs of Revenues and Operating Expenses |  | Interest Expense |  | Other Expense (Income), Net |  | Revenues |  | Costs of Revenues and Operating Expenses |  | Interest Expense |  | Other Expense (Income), Net
Total amounts presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded | $ | 2,724,424 |  |  | $ | 1,613,721 |  |  | $ | 74,395 |  |  | $ | (47,006) |  |  | $ | 2,083,838 |  |  | $ | 1,265,038 |  |  | $ | 38,312 |  |  | $ | 14,140 |
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from AOCI to earnings | $ | — |  |  | $ | — |  |  | $ | 937 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (279) |  |  | $ | — |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from AOCI to earnings | $ | 14,915 |  |  | $ | (5,367) |  |  | $ | — |  |  | $ | — |  |  | $ | 1,843 |  |  | $ | (232) |  |  | $ | — |  |  | $ | — |
Amount excluded from the assessment of effectiveness recognized in earnings | $ | (310) |  |  | $ | — |  |  | $ | — |  |  | $ | 455 |  |  | $ | (114) |  |  | $ | — |  |  | $ | — |  |  | $ | 657 |
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 14,374 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 1,069 |
Schedule of Notional Amounts of Derivatives Outstanding | The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts with maximum remaining maturities of approximately 11 months as of the dates indicated below, were as follows:
| As of |  | As of
(In thousands) | September 30, 2022 |  | June 30, 2022
Cash flow hedge contracts - foreign currency |  |  |
Purchase | $ | 122,528 |  |  | $ | 124,641 |
Sell | $ | 207,905 |  |  | $ | 176,259 |
Net investment hedge contracts - foreign currency |  |  |
Purchase | $ | 66,516 |  |  | $ | — |
Sell | $ | 66,436 |  |  | $ | 66,436 |
Other foreign currency hedge contracts |  |  |
Purchase | $ | 475,015 |  |  | $ | 565,586 |
Sell | $ | 435,525 |  |  | $ | 389,368 |
Schedule of Derivative Instruments, Fair Value | The locations and fair value of our derivatives reported in our Condensed Consolidated Balance Sheets as of the dates indicated below were as follows:
| Asset Derivatives |  | Liability Derivatives
| Balance Sheet |  | As of |  | As of |  | Balance Sheet |  | As of |  | As of
| Location |  | September 30, 2022 |  | June 30, 2022 |  | Location |  | September 30, 2022 |  | June 30, 2022
(In thousands) |  | Fair Value |  |  | Fair Value
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current assets |  | 21,176 |  |  | 20,595 |  |  | Other current liabilities |  | (12,989) |  |  | 8,406 |
Total derivatives designated as hedging instruments |  |  | 21,176 |  |  | 20,595 |  |  |  |  | (12,989) |  |  | 8,406 |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts | Other current assets |  | 23,813 |  |  | 19,716 |  |  | Other current liabilities |  | (30,098) |  |  | 25,909 |
Total derivatives not designated as hedging instruments |  |  | 23,813 |  |  | 19,716 |  |  |  |  | (30,098) |  |  | 25,909 |
Total derivatives |  |  | $ | 44,989 |  |  | $ | 40,311 |  |  |  |  | $ | (43,087) |  |  | $ | 34,315 |
Schedule of Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments | The changes in AOCI, before taxes, related to derivatives for the indicated periods were as follows:
| Three Months Ended September 30, |  |
(In thousands) | 2022 |  | 2021 |  |  |  |
Beginning AOCI | $ | 77,018 |  |  | $ | (25,830) |  |  |  |  |
Amount reclassified to earnings as net (gains) losses | (10,175) |  |  | (1,218) |  |  |  |  |
Net change in unrealized gains (losses) | 5,447 |  |  | 1,502 |  |  |  |  |
Ending AOCI | $ | 72,290 |  |  | $ | (25,546) |  |  |  |  |
Schedule of Offsetting Derivative Assets | The information related to the offsetting arrangements for the periods indicated was as follows:
As of September 30, 2022 |  |  |  |  |  | Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |  |
(In thousands) |  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives - assets |  | $ | 44,989 |  |  | $ | — |  |  | $ | 44,989 |  |  | $ | (27,133) |  |  | $ | — |  |  | $ | 17,856 |
Derivatives - liabilities |  | $ | (43,087) |  |  | $ | — |  |  | $ | (43,087) |  |  | $ | 27,133 |  |  | $ | — |  |  | $ | (15,954) |
As of June 30, 2022 |  |  |  |  |  | Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |  |
(In thousands) |  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives - assets |  | $ | 40,311 |  |  | $ | — |  |  | $ | 40,311 |  |  | $ | (12,291) |  |  | $ | — |  |  | $ | 28,020 |
Derivatives - liabilities |  | $ | (34,315) |  |  | $ | — |  |  | $ | (34,315) |  |  | $ | 12,291 |  |  | $ | — |  |  | $ | (22,024) |
Schedule of Offsetting Derivative Liabilities | The information related to the offsetting arrangements for the periods indicated was as follows:
As of September 30, 2022 |  |  |  |  |  | Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |  |
(In thousands) |  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives - assets |  | $ | 44,989 |  |  | $ | — |  |  | $ | 44,989 |  |  | $ | (27,133) |  |  | $ | — |  |  | $ | 17,856 |
Derivatives - liabilities |  | $ | (43,087) |  |  | $ | — |  |  | $ | (43,087) |  |  | $ | 27,133 |  |  | $ | — |  |  | $ | (15,954) |
As of June 30, 2022 |  |  |  |  |  | Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |  |
(In thousands) |  | Gross Amounts of Derivatives |  | Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |  | Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |  | Financial Instruments |  | Cash Collateral Received |  | Net Amount
Derivatives - assets |  | $ | 40,311 |  |  | $ | — |  |  | $ | 40,311 |  |  | $ | (12,291) |  |  | $ | — |  |  | $ | 28,020 |
Derivatives - liabilities |  | $ | (34,315) |  |  | $ | — |  |  | $ | (34,315) |  |  | $ | 12,291 |  |  | $ | — |  |  | $ | (22,024) |

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