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Derivative Financial Instruments (Notes)
 6 Months Ended
Dec. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
Derivative Financial Instruments
Hedges of Interest Rate Risk
We enter into interest rate swap contracts to manage differences in the amount of our known or expected cash payments related to our debt. Our objective in using interest rate derivatives is to add stability to interest expense and to manage our exposure to interest rate movements. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for us making fixed-rate payments over the life of the derivative agreements without exchange of the underlying notional amount.
The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. If a derivative is deemed to be ineffective, the ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended December 31, 2013, we did not hold any interest rate derivative instruments that were determined to be ineffective.
Amounts reported in accumulated other comprehensive loss related to interest rate swap contracts will be reclassified to interest expense as interest payments are accrued or made on our variable-rate debt. Assuming these derivative instruments continue to qualify for hedge accounting, as of December 31, 2013, we estimate that $197 will be reclassified from accumulated other comprehensive loss to interest expense during the twelve months ending December 31, 2014. As of December 31, 2013, we had 6 outstanding interest rate swap contracts indexed to one-month LIBOR. These instruments were designated as cash flow hedges of interest rate risk and have varying maturity dates from 2014 - 2017. As the start date of certain contracts has not yet commenced, the notional amount of our outstanding contracts is in excess of the variable-rate debt being hedged as of the balance sheet date.
Interest rate swap contracts outstanding:
 
Notional Amounts
Contracts accruing interest as of December 31, 2013

$
130,000

Contracts with a future start date

40,000

Total

$
170,000


Hedges of Currency Risk
We execute currency forward contracts in order to mitigate our exposure to fluctuations in various currencies against our reporting currency, the U.S. dollar. We use currency derivatives, specifically currency forward contracts, to manage this exposure. During the six months ended December 31, 2013, we had both currency forward contract activity for which we elected hedge accounting and activity for which we did not elect hedge accounting. In evaluating our currency hedging program and ability to achieve hedge accounting in light of certain changes in our legal entity cash flows, we considered the benefits of hedge accounting relative to the additional economic cost of trade execution and administrative burden. Based on this analysis, we decided to not seek hedge accounting for our current currency forward contracts, but we may elect to apply hedge accounting in future scenarios. As a result, during the three and six months ended December 31, 2013, we have experienced increased volatility within other expense, net in our consolidated statements of operations from unrealized gains and losses on the mark-to-market of outstanding currency forward contracts. We expect this volatility to continue in future periods for contracts for which we do not apply hedge accounting.
The effective portion of changes in the fair value of derivatives designated and qualifying as cash flow hedges is recorded in accumulated other comprehensive loss and is subsequently reclassified into earnings in the period in which the hedged forecasted transaction affects earnings. The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. As of December 31, 2013, we have no outstanding currency forward contracts that qualify for hedge accounting and, as such, there are no current balances to be reclassified into earnings over the next twelve months.
The changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings as a component of other expense, net.
    As of December 31, 2013, we had the following outstanding currency forward contracts that were not designated for hedge accounting and used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Canadian Dollar, Danish Krone, The Euro, Great British Pound, Indian Rupee, Japanese Yen, New Zealand Dollar, Norwegian Krone, Singapore Dollar, Swedish Krona, and Swiss Franc:
Notional Amount

Effective Date

Maturity Date

Number of Instruments

Index

Hedge Designation
$123,034

July 2013 through December 2013

Various through December 2014

103

Various

Non-designated

Financial Instrument Presentation
The table below presents the fair value of our derivative financial instruments as well as their classification on the balance sheet as of December 31, 2013 and June 30, 2013:
 
December 31, 2013
 
Asset Derivatives

Liability Derivatives
Derivatives designated as hedging instruments
Balance Sheet Line Item

Gross amounts of recognized assets

Gross amount offset in consolidated balance sheet

Net amount

Balance Sheet Line Item

Gross amounts of recognized liabilities

Gross amount offset in consolidated balance sheet

Net amount
Interest rate swaps
Other non-current assets

$
220


$
(78
)

$
142


Other current liabilities/other liabilities

$
(119
)

$
—


$
(119
)
Currency forward contracts
Other current assets

—


—


—


Other current liabilities

—


—


—

Total derivatives designated as hedging instruments


$
220


$
(78
)

$
142




$
(119
)

$
—


$
(119
)
















Derivatives not designated as hedging instruments















Currency forward contracts
Other current assets

$
866


$
(269
)

$
597


Other current liabilities

$
(4,378
)

$
80


$
(4,298
)
Total derivatives not designated as hedging instruments


$
866


$
(269
)

$
597




$
(4,378
)

$
80


$
(4,298
)
 
June 30, 2013
 
Asset Derivatives

Liability Derivatives
Derivatives designated as hedging instruments
Balance Sheet Line Item

Gross amounts of recognized assets

Gross amount offset in consolidated balance sheet

Net amount

Balance Sheet Line Item

Gross amounts of recognized liabilities

Gross amount offset in consolidated balance sheet

Net amount
Interest rate swaps
Other non-current assets

$
400


$
(56
)

$
344


Other current liabilities/other liabilities

$
(81
)

$
11


$
(70
)
Currency forward contracts
Other current assets

83


(13
)

70


Other current liabilities

(208
)

5


(203
)
Total derivatives designated as hedging instruments


$
483


$
(69
)

$
414




$
(289
)

$
16


$
(273
)
















Derivatives not designated as hedging instruments















Currency forward contracts
Other current assets

$
—


$
—


$
—


Other current liabilities

$
—


$
—


$
—

Total derivatives not designated as hedging instruments


$
—


$
—


$
—




$
—


$
—


$
—


The following table presents the effect of our derivative financial instruments designated as hedging instruments and their classification within comprehensive income for the three and six months ended December 31, 2013 and 2012:
Derivatives in Hedging Relationships
 
Amount of Gain (Loss) Recognized in Comprehensive Income on Derivatives (Effective Portion)
 
 
Three Months Ended December 31,
 
Six months ended December 31,
In thousands
 
2013
 
2012
 
2013
 
2012
Currency contracts that hedge revenue

$
—


$
(651
)

$
(107
)

$
(651
)
Currency contracts that hedge cost of revenue

—


82


59


82

Currency contracts that hedge technology and development expense

—


210


70


210

Currency contracts that hedge general and administrative expense

—


15


12


15

Interest Rate Swaps

(30
)

44


(324
)

(277
)
Total loss recognized in comprehensive income during the period

$
(30
)

$
(300
)

$
(290
)

$
(621
)


The following table presents reclassifications out of accumulated other comprehensive loss for the three and six months ended December 31, 2013 and 2012:
Details about Accumulated Other
Comprehensive Loss Components
 
Amount Reclassified from Accumulated Other Comprehensive Loss to Net Income Gain/(Loss)
 
Affected line item in the
Statement of Operations
 
 
Three Months Ended December 31,
 
Six months ended December 31,
 
 
In thousands
 
2013
 
2012
 
2013
 
2012
 
 
Currency contracts that hedge revenue
 
$
—

 
$
(47
)
 
$
(120
)
 
$
(47
)
 
Revenue
Currency contracts that hedge cost of revenue
 
—

 
11

 
(112
)
 
11

 
Cost of revenue
Currency contracts that hedge technology and development expense
 
—

 
9

 
122

 
9

 
Technology and development expense
Currency contracts that hedge general and administrative expense
 
—

 
2

 
11

 
2

 
General and administrative expense
Interest Rate Swaps
 
(79
)
 
(48
)
 
(154
)
 
(81
)
 
Interest expense
Total before income tax
 
(79
)
 
(73
)
 
(253
)
 
(106
)
 
Income (loss) before income taxes and loss in equity interests
Income tax benefit
 
16

 
—

 
31

 
—

 
Income tax provision
Total
 
$
(63
)
 
$
(73
)
 
$
(222
)
 
$
(106
)
 
 

The following table presents the mark-to-market and settlement effect of our derivative financial instruments for contracts that we did not designate as hedging instruments, as well as those which have been de-designated and no longer qualify as hedging instruments, recorded within the statement of operations:
Derivatives not classified as hedging instruments under ASC 815
 
Amount of Gain (Loss) Recognized in Income
 
Location of Gain (Loss) Recognized in Income
In thousands
 
Three months ended December 31,
 
Six months ended December 31,
 
 
 
2013
 
2012
 
2013
 
2012
 
 
Currency forward contracts
 
$
(1,229
)

$
—


$
(6,438
)

$
—

 
Other expense, net