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Derivative Financial Instruments (Tables)
 9 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
As of March 31, 2019, we had ten outstanding interest rate swap contracts indexed to USD LIBOR. These instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through December 2025.
Interest rate swap contracts outstanding:
 
Notional Amounts
Contracts accruing interest as of March 31, 2019
 
$
440,000

Contracts with a future start date
 
90,000

Total
 
$
530,000

As of March 31, 2019, we had the following outstanding currency derivative 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, British Pound, Canadian Dollar, Danish Krone, Euro, Indian Rupee, Mexican Peso, New Zealand Dollar, Norwegian Krone, Philippine Peso and Swedish Krona:
Notional Amount
 
Effective Date
 
Maturity Date
 
Number of Instruments
 
Index
$719,830
 
December 2017 through March 2019
 
Various dates through March 2021
 
550
 
Various
Derivative Instruments in Statement of Financial Position, Fair Value
The table below presents the fair value of our derivative financial instruments as well as their classification on the balance sheet as of March 31, 2019 and June 30, 2018. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.
 
March 31, 2019
 
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
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
Other current assets / other assets
 
$
2,329

 
$
—

 
$
2,329

 
Other current liabilities / other liabilities
 
$
(3,378
)
 
$
155

 
$
(3,223
)
Cross-currency swaps
Other current assets
 
—

 
—

 
—

 
Other current liabilities
 
(3,839
)
 
—

 
(3,839
)
Derivatives in net investment hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
Other non-current assets
 
4,194

 
—

 
4,194

 
Other current liabilities / other liabilities
 
(2,250
)
 
637

 
(1,613
)
Total derivatives designated as hedging instruments

 
$
6,523

 
$
—

 
$
6,523

 

 
$
(9,467
)
 
$
792

 
$
(8,675
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps
Other current assets
 
$
—

 
$
—

 
$
—

 
Other current liabilities
 
$
(7,512
)
 
$
—

 
$
(7,512
)
Currency forward contracts
Other current assets / other assets
 
12,385

 
(4,096
)
 
8,289

 
Other current liabilities / other liabilities
 
(545
)
 
301

 
(244
)
Currency option contracts
Other current assets / other assets
 
6,238

 
—

 
6,238

 
Other current liabilities / other liabilities
 
—

 
—

 
—

Total derivatives not designated as hedging instruments
 
 
$
18,623

 
$
(4,096
)
 
$
14,527

 

 
$
(8,057
)
 
$
301

 
$
(7,756
)

June 30, 2018

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
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest rate swaps
Other non-current assets

$
13,374


$
(4
)

$
13,370


Other current liabilities / other liabilities

$
—


$
—


$
—

Cross-currency swaps
Other non-current assets

—


—


—


Other liabilities

(10,659
)

—


(10,659
)
Derivatives in net investment hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cross-currency swaps
Other non-current assets

—


—


—


Other liabilities

(14,689
)

—


(14,689
)
Currency forward contracts
Other non-current assets

—


—


—


Other liabilities

(13,387
)

—


(13,387
)
Total derivatives designated as hedging instruments


$
13,374


$
(4
)

$
13,370




$
(38,735
)

$
—


$
(38,735
)
















Derivatives not designated as hedging instruments















Currency forward contracts
Other current assets / other assets

$
10,433


$
(1,231
)

$
9,202


Other current liabilities / other liabilities

$
(1,080
)

$
266


$
(814
)
Currency option contracts
Other current assets / other assets
 
1,782

 
—

 
1,782

 
Other current liabilities / other liabilities
 
(85
)
 
—

 
(85
)
Total derivatives not designated as hedging instruments


$
12,215


$
(1,231
)

$
10,984




$
(1,165
)

$
266


$
(899
)
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net
The following table presents the effect of the effective portion of our derivative financial instruments designated as hedging instruments and their classification within comprehensive income (loss) for the three and nine months ended March 31, 2019 and 2018:
 
Amount of Gain (Loss) Recognized in Comprehensive Income (Loss) on Derivatives (Effective Portion)
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
 
2019
 
2018
 
2019
 
2018
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
Interest rate swaps
$
(6,102
)
 
$
6,087

 
$
(10,916
)
 
$
7,330

Cross-currency swaps
(1,273
)
 
2,321

 
(2,656
)
 
5,492

Derivatives in net investment hedging relationships
 
 
 
 
 
 
 
Cross-currency swaps
1,542

 
(3,873
)
 
6,557

 
(10,307
)
Currency forward contracts
7,050

 
(5,576
)
 
14,369

 
(13,935
)
Total
$
1,217

 
$
(1,041
)
 
$
7,354

 
$
(11,420
)
Reclassification out of Accumulated Other Comprehensive Income
The following table presents reclassifications out of accumulated other comprehensive loss for the three and nine months ended March 31, 2019 and 2018:
 
Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income
 
Affected line item in the
Statement of Operations
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
 
 
 
2019
 
2018
 
2019
 
2018
 
 
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
 
Interest rate swaps
$
(314
)
 
$
100

 
$
(105
)
 
$
(6
)
 
Interest expense, net
Cross-currency swaps
2,146

 
(3,321
)
 
5,920

 
(8,756
)
 
Other (expense) income, net
Total before income tax
1,832

 
(3,221
)
 
5,815

 
(8,762
)
 
Income before income taxes
Income tax
(458
)
 
805

 
(1,454
)
 
2,212

 
Income tax expense (benefit)
Total
$
1,374

 
$
(2,416
)
 
$
4,361

 
$
(6,550
)
 
 
Derivatives Not Designated as Hedging Instruments
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 the ineffective portion and de-designated derivative financial instruments that no longer qualify as hedging instruments in the period:
 
Amount of Gain (Loss) Recognized in Net Income (Loss)
 
Affected line item in the
Statement of Operations
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
 
 
 
2019
 
2018
 
2019
 
2018
 
 
Currency contracts
$
1,258

 
$
(9,103
)
 
$
19,802

 
$
(19,382
)
 
Other (expense) income, net
Interest rate swaps
29

 
1

 
(185
)
 
279

 
Other (expense) income, net
Total
$
1,287

 
$
(9,102
)
 
$
19,617

 
$
(19,103
)