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Derivative Financial Instruments (Notes) | 6 Months Ended
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Dec. 31, 2015
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 variability 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. We designate our interest rate swaps as cash flow hedges. 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. Realized gains or losses from interest rate swaps are recorded in earnings, as a component of interest expense, net. 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) income 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 derivative is recognized directly in earnings. During the three and six months ended December 31, 2015, we held one interest rate derivative instrument that was determined to be ineffective. We did not hold any interest rate derivative instruments that were determined to be ineffective during the three and six months ended December 31, 2014. Amounts reported in accumulated other comprehensive (loss) income related to interest rate swap contracts will be reclassified to interest expense as interest payments are accrued or made on our variable-rate debt. As of December 31, 2015, we estimate that $395 will be reclassified from accumulated other comprehensive (loss) income to interest income during the twelve months ending December 31, 2016. As of December 31, 2015, we had six 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 start dates and maturity dates through June 2019.
Interest rate swap contracts outstanding: |  | Notional Amounts
Contracts accruing interest as of December 31, 2015 |  | $ | 150,000 |
Contracts with a future start date |  | 65,000 |
Total |  | $ | 215,000 |
Hedges of Currency Risk Cross-Currency Swap Contracts From time to time, we execute cross-currency swap contracts in order to mitigate our currency exposure of net investments in subsidiaries that have reporting currencies other than U.S. Dollar. Cross-currency swaps designated as net investment hedges involve an initial receipt of the notional amount in the hedge currency in exchange for our reporting currency based on a contracted exchange rate. Subsequently, we receive fixed rate payments in our reporting currency in exchange for fixed rate payments in the hedged currency over the life of the derivative contract. At maturity, the final exchange involves the receipt of our reporting currency in exchange for the notional amount in the hedged currency. As of December 31, 2015, we had two outstanding cross-currency swap contracts with a total notional amount of $122,969, both maturing during April 2019. During the three and six months ended December 31, 2015, we recorded unrealized losses, net of tax, in accumulated other comprehensive (loss) income as a component of our cumulative translation adjustment in the amount $2,510 and $2,929, respectively. We entered into the two cross-currency swap contracts to hedge the risk of changes in the U.S. Dollar equivalent value of a portion of our net investment in a consolidated subsidiary that has the Euro as its functional currency. Currency Forward Contracts 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 do not elect hedge accounting for our current currency forward contract activity; however, we may elect to apply hedge accounting in future scenarios. The change in the fair value of currency forward contracts is recognized directly in earnings, as a component of other income, net. During the three and six months ended December 31, 2015 and 2014, we have experienced volatility within other income, 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. Additionally, since our hedging objectives may be targeted at non-GAAP financial metrics that exclude non-cash items such as depreciation and amortization, we may experience increased, not decreased, volatility in our GAAP results as a result of our currency hedging program. As of December 31, 2015, we had the following outstanding currency forward contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. Dollar value of forecasted transactions denominated in Australian Dollar, Canadian Dollar, Danish Krone, Euro, Great British Pound, Indian Rupee, New Zealand Dollar, Norwegian Krone, Swedish Krona, and Swiss Franc:
Notional Amount |  | Effective Date |  | Maturity Date |  | Number of Instruments |  | Index
$265,829 |  | September 2014 through December 2015 |  | Various dates through June 2017 |  | 421 |  | Various
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, 2015 and June 30, 2015:
| December 31, 2015
| 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 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other current liabilities / other liabilities |  | $ | (1,044 | ) |  | $ | 3 |  |  | $ | (1,041 | )
Cross-currency swaps | Other non-current assets |  | — |  |  | — |  |  | — |  |  | Other liabilities |  | (5,738 | ) |  | — |  |  | (5,738 | )
Total derivatives designated as hedging instruments |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (6,782 | ) |  | $ | 3 |  |  | $ | (6,779 | )
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other current assets / other assets |  | $ | 4,797 |  |  | $ | (549 | ) |  | $ | 4,248 |  |  | Other current liabilities / other liabilities |  | $ | (1,372 | ) |  | $ | 548 |  |  | $ | (824 | )
Total derivatives not designated as hedging instruments |  |  | $ | 4,797 |  |  | $ | (549 | ) |  | $ | 4,248 |  |  |  |  | $ | (1,372 | ) |  | $ | 548 |  |  | $ | (824 | )
| June 30, 2015
| 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 |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other current liabilities / other liabilities |  | $ | (1,087 | ) |  | $ | — |  |  | $ | (1,087 | )
Cross-currency swaps | Other non-current assets |  | — |  |  | — |  |  | — |  |  | Other liabilities |  | (8,433 | ) |  | — |  |  | (8,433 | )
Total derivatives designated as hedging instruments |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (9,520 | ) |  | $ | — |  |  | $ | (9,520 | )
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other non-current assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other liabilities |  | $ | (63 | ) |  | $ | — |  |  | $ | (63 | )
Currency forward contracts | Other current assets |  | 3,256 |  |  | (1,354 | ) |  | 1,902 |  |  | Other current liabilities |  | (1,792 | ) |  | 1,385 |  |  | (407 | )
Total derivatives not designated as hedging instruments |  |  | $ | 3,256 |  |  | $ | (1,354 | ) |  | $ | 1,902 |  |  |  |  | $ | (1,855 | ) |  | $ | 1,385 |  |  | $ | (470 | )
The following table presents the effect of our derivative financial instruments designated as hedging instruments and their classification within comprehensive income (loss) for the three and six months ended December 31, 2015 and 2014:
Derivatives in Hedging Relationships | Amount of Gain (Loss) Recognized in Comprehensive (Loss) Income on Derivatives (Effective Portion)
| Three Months Ended December 31, |  | Six Months Ended December 31,
In thousands | 2015 |  | 2014 |  | 2015 |  | 2014
Interest rate swaps | $ | 464 |  |  | $ | (320 | ) |  | $ | (462 | ) |  | $ | (21 | )
Cross-currency swaps | 2,510 |  |  | — |  |  | 2,929 |  |  | — |
| $ | 2,974 |  |  | $ | (320 | ) |  | $ | 2,467 |  |  | $ | (21 | )
The following table presents reclassifications out of accumulated other comprehensive (loss) income for the three and six months ended December 31, 2015 and 2014:
Details about Accumulated Other Comprehensive (Loss) Income Components | Amount Reclassified from Accumulated Other Comprehensive (Loss) Income 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 | 2015 |  | 2014 |  | 2015 |  | 2014 |  |
Interest rate swaps | $ | (286 | ) |  | $ | (288 | ) |  | $ | (588 | ) |  | $ | (572 | ) |  | Interest expense, net
Total before income tax | (286 | ) |  | (288 | ) |  | (588 | ) |  | (572 | ) |  | Income (loss) before income taxes
Income tax | 72 |  |  | 72 |  |  | 148 |  |  | 143 |  |  | Income tax provision
Total | $ | (214 | ) |  | $ | (216 | ) |  | $ | (440 | ) |  | $ | (429 | ) |  |
The following table presents the adjustment to fair value recorded within the consolidated statements of operations for derivative instruments for which we did not elect hedge accounting, as well as the effect of our de-designated derivative financial instruments that no longer qualify as hedging instruments in the period:
Derivatives not classified as hedging instruments | Amount of Gain (Loss) Recognized in Income |  | Location of Gain (Loss) Recognized in Income (Ineffective Portion)
| Three Months Ended December 31, |  | Six Months Ended December 31, |  |
In thousands | 2015 |  | 2014 |  | 2015 |  | 2014 |  |
Currency contracts | $ | 3,189 |  |  | $ | 4,191 |  |  | $ | 5,563 |  |  | $ | 7,642 |  |  | Other income, net
Interest rate swaps | (3 | ) |  | — |  |  | (10 | ) |  | — |  |  | Other income, net
| $ | 3,186 |  |  | $ | 4,191 |  |  | $ | 5,553 |  |  | $ | 7,642 |  |  |

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