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Derivative Instruments and Hedging Activities | 12 Months Ended
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Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | NOTE 6 — DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy. The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheets are as follows:
(in thousands) | 2024 |  | 2023
Derivatives designated as hedging instruments |  |  |
Other current assets - range forward contracts | $ | 43 |  |  | $ | — |
Total derivatives designated as hedging instruments | 43 |  | — |
Derivatives not designated as hedging instruments |  |  |
Other current assets - currency forward contracts | $ | 48 |  |  | $ | 68 |
Other current liabilities - currency forward contracts | (89) |  |  | (100) |
Total derivatives not designated as hedging instruments | (41) |  |  | (32) |
Total derivatives | $ | 2 |  |  | $ | (32) |
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 consolidated balance sheets, with the offset to other (income) expense, net. Losses (gains) related to derivatives not designated as hedging instruments have been recognized as follows:
(in thousands) | 2024 |  | 2023 |  | 2022
Other (income) expense, net - currency forward contracts | $ | 69 |  |  | $ | (435) |  |  | $ | 377 |
CASH FLOW HEDGES Range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive loss and are recognized as a component of cost of goods sold when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2024 was $6.4 million. There were no such contracts outstanding as of June 30, 2023. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness. The following represents losses, net of tax, related to cash flow hedges:
(in thousands) | 2024 |  | 2023 |
Unrealized loss recognized in other comprehensive income | $ | (26) |  |  | $ | — |  |
NET INVESTMENT HEDGES As of June 30, 2024, we had certain foreign currency-denominated intercompany loans payable with a total aggregate principal amount of ¥279.7 million, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in our China-based subsidiaries. As of June 30, 2023, we had no foreign currency-denominated intercompany loans payable designated as net investment hedges. A loss of $0.2 million and a gain of $0.7 million were recorded as a component of foreign currency translation adjustments in other comprehensive loss as of June 30, 2024 and June 30, 2023, respectively. As of June 30, 2024, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:
Instrument | Notional (CNY in thousands)(2) | Notional (USD in thousands)(2) | Maturity
Foreign currency-denominated intercompany loan payable | ¥ | 111,541 |  | $ | 15,356 |  | November 2024
Foreign currency-denominated intercompany loan payable | ¥ | 109,962 |  | $ | 15,138 |  | February 2025
Foreign currency-denominated intercompany loan payable | ¥ | 58,213 |  | $ | 8,014 |  | April 2025
(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://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
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