XML 35 R18.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Note 10 - Derivative Financial Instruments | 12 Months Ended
--- | ---
Jun. 30, 2024
Notes to Financial Statements |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 10. Derivative Financial Instruments Interest Rate Swaps The Company’s effective swap agreements convert the base borrowing rate on $150 million of debt due under our revolving credit agreement from a variable rate equal to one month Secured Overnight Financing Rate (SOFR) to a weighted average fixed rate of 0.85% at June 30, 2024. The fair value of the swaps recognized in accrued liabilities and in other comprehensive income (loss) is as follows (in thousands):
Effective Date |  | Notional |  |  | Fixed |  | Maturity |  | Fair Value at June 30, |
|  | Amount |  |  | Interest Rate |  |  |  | 2024 |  |  | 2023 |
February 6, 2023 |  |  | 25,000 |  |  | 2.80% |  | August 6, 2023 |  | $ | - |  |  | $ | 59 |
February 23, 2023 |  |  | 100,000 |  |  | 0.86% |  | March 23, 2025 |  |  | 3,045 |  |  |  | 6,716 |
May 25, 2023 |  |  | 25,000 |  |  | 0.81% |  | April 24, 2025 |  |  | 863 |  |  |  | 1,777 |
February 24, 2023 |  |  | 25,000 |  |  | 0.86% |  | March 24, 2025 |  |  | 765 |  |  |  | 1,683 |
|  |  |  |  |  |  |  |  |  | $ | 4,673 |  |  | $ | 10,235 |
The Company reported no losses for the years ended June 30, 2024, 2023, and 2022, as a result of hedge ineffectiveness. Future changes in these swap arrangements, including termination of the agreements, may result in a reclassification of any gain or loss reported in accumulated other comprehensive income (loss) into earnings as an adjustment to interest expense. Accumulated other comprehensive income (loss) related to these instruments is being amortized into interest expense concurrent with the hedged exposure. Foreign Exchange Contracts Forward foreign currency exchange contracts are used to limit the impact of currency fluctuations on certain anticipated foreign cash flows, such as sales to foreign customers and loan payments between subsidiaries. The Company enters into such contracts for hedging purposes only. The Company has designated certain of these currency contracts as hedges, and changes in the fair value of these contracts are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with these contracts will be reported in net income. At June 30, 2024 and 2023, the Company had outstanding forward contracts related to hedges of intercompany loans with net unrealized gains of less than $0.1 million and net realized losses of $1.7 million, respectively, which approximate the unrealized gains or losses on the related loans. The contracts have maturity dates in fiscal year 2025, which correspond to the related intercompany loans. The notional amounts of these instruments, by currency in thousands, are as follows:
Currency |  | 2024 |  |  | 2023 |
USD |  |  | 4,159 |  |  |  | - |
CAD |  |  | 6,079 |  |  |  | 16,600 |
JPY |  |  | - |  |  |  | 2,100,000 |
The table below presents the fair value of derivative financial instruments as well as their classification on the balance sheet at June 30, (in thousands):
| Asset Derivatives |
| 2024 |  | 2023 |
Derivative designated as | Balance |  |  |  |  | Balance |  |  |  |
hedging instruments | Sheet |  |  |  |  | Sheet |  |  |  |
| Line Item |  | Fair Value |  | Line Item |  | Fair Value |
Interest rate swaps | Prepaid expenses and other current assets |  | $ | 4,673 |  | Prepaid expenses and other current assets |  | $ | 10,235 |
Foreign exchange contracts | Prepaid expenses and other current assets |  |  | - |  | Prepaid expenses and other current assets |  |  | - |
|  |  | $ | 4,673 |  |  |  | $ | 10,235 |
| Liability Derivatives |
| 2024 |  | 2023 |
Derivative designated as | Balance |  |  |  |  | Balance |  |  |  |
hedging instruments | Sheet |  |  |  |  | Sheet |  |  |  |
| Line Item |  | Fair Value |  | Line Item |  | Fair Value |
Interest rate swaps | Accrued Liabilities |  | $ | - |  | Accrued Liabilities |  | $ | - |
Foreign exchange contracts | Accrued Liabilities |  |  | - |  | Accrued Liabilities |  |  | 315 |
|  |  | $ | - |  |  |  | $ | 315 |
The table below presents the amount of gain (loss) recognized in comprehensive income on our derivative financial instruments (effective portion) designated as hedging instruments and their classification within comprehensive income for the periods ended (in thousands):
|  | 2024 |  |  | 2023 |  |  | 2022 |
Interest rate swaps |  | $ | 1,154 |  |  | $ | 6,567 |  |  | $ | 9,552 |
Foreign exchange contracts |  |  | 315 |  |  |  | (437 | ) |  |  | 380 |
|  | $ | 1,469 |  |  | $ | 6,130 |  |  | $ | 9,932 |
The table below presents the amount reclassified from accumulated other comprehensive income (loss) to net income for the periods ended (in thousands):
Details about Accumulated |  |  |  |  |  |  |  |  |  |  |  |  | Affected line item
Other Comprehensive |  |  |  |  |  |  |  |  |  |  |  |  | in the Statements
Income (Loss) Components |  | 2024 |  |  | 2023 |  |  | 2022 |  | of Operations
Interest rate swaps |  | $ | (6,865 | ) |  | $ | (4,704 | ) |  | $ | 1,964 |  | Interest expense
Foreign exchange contracts |  |  | (215 | ) |  |  | 672 |  |  |  | 469 |  | Other non-operating income
|  | $ | (7,080 | ) |  | $ | (4,032 | ) |  | $ | 2,433 |  |

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/815/tableOfContent + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration