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Derivative Instruments and Hedging Activities | 9 Months Ended
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Mar. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. We do not enter into derivative transactions for speculative purposes and, therefore, we do not hold any derivative instruments for trading purposes. We account for derivative instruments as a hedge of the related asset, liability, firm commitment or anticipated transaction, when the derivative is specifically designated and qualifies as a hedge of such items. Our objective in managing foreign exchange exposures with derivative instruments is to reduce volatility in cash flow. We measure hedge effectiveness by assessing the changes in the fair value or expected future cash flows of the hedged item. There were no derivatives designated as hedging instruments as of March 31, 2022 and June 30, 2021. The fair value of derivatives not designated as hedging instruments in the condensed consolidated balance sheets are as follows:
(in thousands) | March 31, 2022 |  | June 30, 2021
Derivatives not designated as hedging instruments |  |  |
Other current assets - currency forward contracts | $ | 513 |  |  | $ | 36 |
Other current liabilities - currency forward contracts | (14) |  |  | (87) |
Total derivatives not designated as hedging instruments | 499 |  |  | (51) |
Total derivatives | $ | 499 |  |  | $ | (51) |
Certain currency forward contracts that hedge significant cross-border intercompany loans are considered as other derivatives and therefore do not qualify for hedge accounting. These contracts are recorded at fair value in the condensed consolidated balance sheet, with the offset to other income, net. (Gains) losses related to derivatives not designated as hedging instruments have been recognized as follows:
| Three Months Ended March 31, |  | Nine Months Ended March 31,
(in thousands) | 2022 |  | 2021 |  | 2022 |  | 2021
Other income, net - currency forward contracts | $ | (541) |  |  | $ | 1,428 |  |  | $ | (535) |  |  | $ | 20 |
NET INVESTMENT HEDGES As of March 31, 2022 and June 30, 2021, we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of €5.3 million and €5.2 million, respectively, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in our Euro-based subsidiaries. Gains of $0.1 million and $1.5 million were recorded as a component of foreign currency translation adjustments in other comprehensive income for the three months ended March 31, 2022 and 2021, respectively. Gains of $1.5 million and an immaterial amount were recorded as a component of foreign currency translation adjustments in other comprehensive loss for the nine months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:
Instrument | Notional (EUR in thousands)(2) | Notional (USD in thousands)(2) | Maturity
Foreign currency-denominated intercompany loan payable | € | 5,310 |  | $ | 5,896 |  | June 26, 2022
(2) Includes principal and accrued interest.

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- 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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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