XML 46 R20.htm IDEA: XBRL DOCUMENT
v3.19.2

Derivatives | 12 Months Ended
--- | ---
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | 12. Derivatives We monitor our exposure to foreign currency exchange rates and interest rates and from time-to-time use derivatives to manage certain of these risks. We designate derivatives as a hedge of a forecasted transaction or of the variability of the cash flows to be received or paid in the future related to a recognized asset or liability (cash flow hedge). All changes in the fair value of a highly effective cash flow hedge are recorded in accumulated other comprehensive income (loss). We routinely assess whether the derivatives used to hedge transactions are effective. If we determine a derivative ceases to be an effective hedge, we discontinue hedge accounting in the period of the assessment for that derivative, and immediately recognize any unrealized gains or losses related to the fair value of that derivative in the consolidated statements of operations. We record derivatives at fair value in the consolidated balance sheets. For additional details regarding fair value, see “—Fair Value Measurements.” We entered into an interest rate swap agreement on $150,000 of notional principal that effectively converts the floating LIBOR portion of our interest obligation on that amount of debt, to a fixed interest rate of 1.8325% plus the applicable rate. The agreement matures concurrent with the Credit Agreement. The forecasted transactions are probable of occurring, and the interest rate swap has been designated as a highly effective cash flow hedge. We entered into foreign currency option contracts to hedge cash flows related to monthly inventory purchases. The individual option contracts mature monthly through June 2020. The forecasted inventory purchases are probable of occurring and the individual option contracts were designated as highly effective cash flow hedges. The following table details the Company’s outstanding derivatives that are designated and effective as cash flow hedges as of June 30, 2019:
Instrument |  |  | Hedge |  |  | Notional Amount at June 30, 2019 |  |  | Consolidated Balance Sheet |  |  | Asset (Liability) fair value as of |
| June 30, 2019 |  |  | June 30, 2018 |
Options |  |  | Brazilian Real calls |  |  | R$ 43,000 |  |  | (1) |  |  |  | $ | 413 |  |  |  |  | $ | 71 |  |
Options |  |  | Brazilian Real puts |  |  | R$ 43,000 |  |  | (1) |  |  |  | $ | (30) |  |  |  |  | $ | — |  |
Swap |  |  | Interest rate swap |  |  | $150,000 |  |  | Other assets (Other liabilities) |  |  |  | $ | (977) |  |  |  |  | $ | 5,078 |  |
(1) We record the net fair values of our outstanding foreign currency option contracts within the respective balance sheet line item based on the net financial position and maturity date of the individual contracts as of the balance sheet date. Other current assets as of June 30, 2019 and June 30, 2018, included net fair values of $383 and $71, respectively. The following tables show the effects of derivatives on the consolidated statements of operations and other comprehensive income for the years ended June 30, 2019 and 2018.
For the Year Ended June 30 |  |  | Gain (Loss) recorded in OCI |  |  | Gain (Loss) recognized in consolidated statements of operations |  |  | Consolidated Statement of Operations Line Item Total |
Instrument |  |  | Hedge |  |  | 2019 |  |  | 2018 |  |  | Consolidated Statement of Operations |  |  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
Options . . . . . |  |  | Brazilian Real calls |  |  |  | $ | 474 |  |  |  |  | $ | (2,778) |  |  |  | Cost of goods sold |  |  |  | $ | 1,069 |  |  |  |  | $ | 3,136 |  |  |  |  | $ | 563,371 |  |  |  |  | $ | 553,103 |  |
Swap . . . . . . . |  |  | Interest rate swap |  |  |  | $ | (6,055) |  |  |  |  | $ | 5,078 |  |  |  | Interest expense, net |  |  |  | $ | — |  |  |  |  | $ | — |  |  |  |  | $ | 11,776 |  |  |  |  | $ | 11,910 |  |
We recognize gains (losses) related to these foreign currency derivatives as a component of cost of goods sold at the time the hedged item is sold.

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

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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration