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Derivative Financial Instruments (Tables)
 12 Months Ended
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
)