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Derivative Financial Instruments (Tables)
 6 Months Ended
Dec. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments
As of December 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 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
$581,807
 
February 2018 through December 2019
 
Various dates through October 2024
 
617
 
Various

As of December 31, 2019, we had nine 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 December 31, 2019
 
$
500,000

Contracts with a future start date
 
—

Total
 
$
500,000
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 December 31, 2019 and June 30, 2019. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.
 
December 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
 
$
—

 
$
—

 
$
—

 
Other liabilities
 
$
(12,824
)
 
$
—

 
$
(12,824
)
Cross-currency swaps
Other assets
 
3,048

 
—

 
3,048

 
Other current liabilities
 
—

 
—

 
—

Derivatives in net investment hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
Other current assets / other assets
 
10,716

 
—

 
10,716

 
Other liabilities
 
(429
)
 
—

 
(429
)
Total derivatives designated as hedging instruments

 
$
13,764

 
$
—

 
$
13,764

 

 
$
(13,253
)
 
$
—

 
$
(13,253
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
Other current assets / other assets
 
$
6,819

 
$
(1,528
)
 
$
5,291

 
Other current liabilities / other liabilities
 
$
(706
)
 
$
231

 
$
(475
)
Currency option contracts
Other current assets / other assets
 
3,495

 
(32
)
 
3,463

 
Other current liabilities / other liabilities
 
(535
)
 
88

 
(447
)
Total derivatives not designated as hedging instruments
 
 
$
10,314

 
$
(1,560
)
 
$
8,754

 

 
$
(1,241
)
 
$
319

 
$
(922
)

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 non-current assets

$
144

 
$
—

 
$
144


Other current liabilities / other liabilities
 
$
(12,895
)
 
$
—

 
$
(12,895
)
Cross-currency swaps
Other non-current assets
 
—

 
—

 
—


Other liabilities
 
(915
)
 
—

 
(915
)
Derivatives in net investment hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
Other non-current 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 income (loss) for the three and six months ended December 31, 2019 and 2018:
 
Amount of Net Gain (Loss) on Derivatives Recognized in Comprehensive Income
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
2019
 
2018
 
2019
 
2018
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
Interest rate swaps (1)
$
4,394

 
$
(5,686
)
 
$
(196
)
 
$
(4,436
)
Cross-currency swaps
1,737

 
(1,121
)
 
(861
)
 
(1,761
)
Derivatives in net investment hedging relationships


 


 


 


Cross-currency swaps
—

 
3,225

 
—

 
5,015

Currency forward contracts
(4,153
)
 
5,433

 
8,565

 
7,319

Total
$
1,978

 
$
1,851

 
$
7,508

 
$
6,137

___________________
(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, which resulted in an adjustment to accumulated other comprehensive loss of $153, net of tax, which is included within the interest rate swap gain (loss) recognized for the three and six months ended December 31, 2019.

Reclassification out of Accumulated Other Comprehensive Income
The following table presents reclassifications out of accumulated other comprehensive loss for the three and six months ended December 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 December 31,
 
Six Months Ended December 31,
 
 
 
2019
 
2018
 
2019
 
2018
 
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
485

 
$
378

 
$
455

 
$
209

Interest expense, net
Cross-currency swaps
 
(2,026
)
 
2,534

 
3,538

 
3,774

Other (expense) income, net
Total before income tax
 
(1,541
)
 
2,912

 
3,993

 
3,983

Income before income taxes
Income tax
 
396

 
(728
)
 
(987
)
 
(996
)
Income tax (benefit) expense
Total
 
$
(1,145
)
 
$
2,184

 
$
3,006

 
$
2,987

 
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 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
 
 
Three Months Ended December 31,
 
Six Months Ended December 31,
 
 
 
2019
 
2018
 
2019
 
2018
 
Currency contracts
 
$
(11,666
)
 
$
11,171


$
7,691

 
$
18,544

Other (expense) income, net
Interest rate swaps (1)
 
—

 
(418
)

—

 
(214
)
Other (expense) income, net
Total
 
$
(11,666
)
 
$
10,753

 
$
7,691

 
$
18,330

 

_____________________
(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.