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Derivative Financial Instruments (Tables) | 12 Months Ended
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Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | As of June 30, 2020, we had ten outstanding interest rate swap contracts indexed to USD LIBOR, of which seven of these instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through December 2025. During the fourth quarter of fiscal 2020, we de-designated three contracts from hedge accounting due to an increased floor to our LIBOR borrowing costs related to the April 2020 amendment to our senior secured credit facility. As a result of this change in the underlying debt being hedged, these three forward starting hedges were no longer highly effective. These de-designated hedges have varying start dates and maturity dates through December 2026.
Interest rate swap contracts outstanding: |  | Notional Amounts
Contracts accruing interest as of June 30, 2020 |  | $ | 500,000 |
Contracts with a future start date |  | 50,000 |
Total |  | $ | 550,000 |
Derivatives Not Designated as Hedging Instruments | The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the years ended June 30, 2020, 2019 and 2018 for derivative instruments for which we did not elect hedge accounting and de-designated derivative financial instruments that no longer qualify as hedging instruments in the period.
| Amount of Gain (Loss) Recognized in Net Income | Affected line item in the Statement of Operations
|  | Year Ended June 30, |
|  | 2020 |  | 2019 |  | 2018 |
Currency contracts |  | $ | 20,882 |  |  | $ | 24,215 |  |  | $ | (2,942 | ) | Other income (expense), net
Interest rate swaps (1) |  | (318 | ) |  | (721 | ) |  | 255 |  | Other income (expense), net
Total |  | $ | 20,564 |  |  | $ | 23,494 |  |  | $ | (2,687 | ) |
_____________________ (1) Upon our adoption of the new hedge accounting standard on July 1, 2019, we prospectively recognize any ineffectiveness associated with effective and designated hedges within accumulated other comprehensive loss, rather than in earnings. In the fourth quarter of fiscal 2020, we de-designated three of our interest rate swaps and therefore no longer apply hedge accounting. Subsequent to their de-designation, we recognize any fair value adjustments to those instruments in other income (expense), net, as included in the table above. As of June 30, 2020, 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 or balances 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
$587,993 |  | September 2018 through June 2020 |  | Various dates through October 2024 |  | 574 |  | 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 June 30, 2020 and June 30, 2019. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.
| June 30, 2020
| Asset Derivatives |  | Liability Derivatives
| 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 designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other current assets / other assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other liabilities |  | $ | (31,161 | ) |  | $ | — |  |  | $ | (31,161 | )
Cross-currency swaps | Other assets |  | 4,462 |  |  | — |  |  | 4,462 |  |  | Other liabilities |  | (4,746 | ) |  | — |  |  | (4,746 | )
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other assets |  | — |  |  | — |  |  | — |  |  | Other current liabilities / other liabilities |  | (6,829 | ) |  | — |  |  | (6,829 | )
Total derivatives designated as hedging instruments |  |  | $ | 4,462 |  |  | $ | — |  |  | $ | 4,462 |  |  |  |  | $ | (42,736 | ) |  | $ | — |  |  | $ | (42,736 | )
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other liabilities |  | $ | (8,359 | ) |  | $ | — |  |  | $ | (8,359 | )
Currency forward contracts | Other current assets / other assets |  | 9,702 |  |  | (1,753 | ) |  | 7,949 |  |  | Other current liabilities / other liabilities |  | (2,136 | ) |  | 446 |  |  | (1,690 | )
Currency option contracts | Other current assets / other assets |  | 1,699 |  |  | (270 | ) |  | 1,429 |  |  | Other current liabilities / other liabilities |  | (38 | ) |  | — |  |  | (38 | )
Total derivatives not designated as hedging instruments |  |  | $ | 11,401 |  |  | $ | (2,023 | ) |  | $ | 9,378 |  |  |  |  | $ | (10,533 | ) |  | $ | 446 |  |  | $ | (10,087 | )
| June 30, 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 assets |  | $ | 144 |  |  | $ | — |  |  | $ | 144 |  |  | Other current liabilities / other liabilities |  | $ | (12,895 | ) |  | $ | — |  |  | $ | (12,895 | )
Cross-currency swaps | Other assets |  | — |  |  | — |  |  | — |  |  | Other liabilities |  | (915 | ) |  | — |  |  | (915 | )
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other assets |  | 4,514 |  |  | — |  |  | 4,514 |  |  | Other liabilities |  | (2,397 | ) |  | — |  |  | (2,397 | )
Total derivatives designated as hedging instruments |  |  | $ | 4,658 |  |  | $ | — |  |  | $ | 4,658 |  |  |  |  | $ | (16,207 | ) |  | $ | — |  |  | $ | (16,207 | )
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other current assets / other assets |  | $ | 11,865 |  |  | $ | (1,111 | ) |  | $ | 10,754 |  |  | Other current liabilities / other liabilities |  | $ | (127 | ) |  | $ | 38 |  |  | $ | (89 | )
Currency option contracts | Other current assets / other assets |  | 4,793 |  |  | (28 | ) |  | 4,765 |  |  | Other current liabilities / other liabilities |  | (42 | ) |  | — |  |  | (42 | )
Total derivatives not designated as hedging instruments |  |  | $ | 16,658 |  |  | $ | (1,139 | ) |  | $ | 15,519 |  |  |  |  | $ | (169 | ) |  | $ | 38 |  |  | $ | (131 | )
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | The following table presents the effect of our derivative financial instruments designated as hedging instruments and their classification within comprehensive (loss) income for the years ended June 30, 2020, 2019 and 2018:
| Amount of Net (Loss) Gain on Derivatives Recognized in Comprehensive Income
| Year Ended June 30,
| 2020 |  | 2019 |  | 2018
Derivatives in cash flow hedging relationships |  |  |  |  |
Interest rate swaps (1) | $ | (28,259 | ) |  | $ | (20,400 | ) |  | $ | 8,545 |
Cross-currency swaps | 3,689 |  |  | (3,009 | ) |  | 2,976 |
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |
Cross-currency swaps | — |  |  | 6,557 |  |  | (1,476 | )
Currency forward contracts | 21,240 |  |  | 14,726 |  |  | (3,490 | )
Total | $ | (3,330 | ) |  | $ | (2,126 | ) |  | $ | 6,555 |
________________ (1) Upon transitioning to the new hedge accounting standard on July 1, 2019, we reversed the cumulative effect of expense recognized for the ineffective portion of our interest rate swap contracts that are designated as hedging instruments, which resulted in an adjustment to accumulated other comprehensive loss of $153, net of tax, which is included within the interest rate swap loss recognized for the year ended June 30, 2020.
Reclassification out of Accumulated Other Comprehensive Income | The following table presents reclassifications out of accumulated other comprehensive loss for the years ended June 30, 2020, 2019 and 2018:
|  | Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | Affected line item in the Statement of Operations
|  | Year Ended June 30, |
|  | 2020 |  | 2019 |  | 2018 |
Derivatives in cash flow hedging relationships |  |  |  |  |  |  |
Interest rate swaps |  | $ | 3,041 |  |  | $ | 144 |  |  | $ | 70 |  | Interest expense, net
Cross-currency swaps |  | 4,583 |  |  | 5,098 |  |  | (1,379 | ) | Other income (expense), net
Total before income tax |  | 7,624 |  |  | 5,242 |  |  | (1,309 | ) | Income before income taxes
Income tax |  | (1,850 | ) |  | (1,310 | ) |  | 349 |  | Income tax (benefit) expense
Total |  | $ | 5,774 |  |  | $ | 3,932 |  |  | $ | (960 | ) |

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