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Derivative Financial Instruments (Tables)
 9 Months Ended
Mar. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments As of March 31, 2020, 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 2026.
Interest rate swap contracts outstanding:
 
Notional Amounts
Contracts accruing interest as of March 31, 2020
 
$
500,000

Contracts with a future start date
 
50,000

Total
 
$
550,000


As of March 31, 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
$556,679
 
June 2018 through March 2020
 
Various dates through October 2024
 
526
 
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, 2020 and June 30, 2019. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.
 
March 31, 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
 
$
(37,674
)
 
$
—

 
$
(37,674
)
Cross-currency swaps
Other assets
 
5,895

 
—

 
5,895

 
Other liabilities
 
(3,558
)
 
—

 
(3,558
)
Derivatives in net investment hedging relationships
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
Other assets
 
1,541

 
—

 
1,541

 
Other liabilities
 
(4,702
)
 
—

 
(4,702
)
Total derivatives designated as hedging instruments

 
$
7,436

 
$
—

 
$
7,436

 

 
$
(45,934
)
 
$
—

 
$
(45,934
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Currency forward contracts
Other current assets / other assets
 
$
18,473

 
$
(2,219
)
 
$
16,254

 
Other current liabilities / other liabilities
 
$
(1,346
)
 
$
534

 
$
(812
)
Currency option contracts
Other current assets / other assets
 
4,554

 
(12
)
 
4,542

 
Other current liabilities / other liabilities
 
—

 
—

 
—

Total derivatives not designated as hedging instruments
 
 
$
23,027

 
$
(2,231
)
 
$
20,796

 

 
$
(1,346
)
 
$
534

 
$
(812
)

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 (loss) income for the three and nine months ended March 31, 2020 and 2019:
 
Amount of Net Gain (Loss) on Derivatives Recognized in Comprehensive (Loss) Income
 
Three Months Ended March 31,
 
Nine Months Ended March 31,
 
2020
 
2019
 
2020
 
2019
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
Interest rate swaps (1)
$
(24,645
)
 
$
(6,102
)
 
$
(24,841
)
 
$
(10,916
)
Cross-currency swaps
3,444

 
(1,273
)
 
2,583

 
(2,656
)
Derivatives in net investment hedging relationships


 


 


 


Cross-currency swaps
—

 
1,542

 
—

 
6,557

Currency forward contracts
14,284

 
7,050

 
22,849

 
14,369

Total
$
(6,917
)
 
$
1,217

 
$
591

 
$
7,354

___________________
(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 loss recognized for the nine months ended March 31, 2020.

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, 2020 and 2019:
 
 
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,
 
 
 
2020
 
2019
 
2020
 
2019
 
Derivatives in cash flow hedging relationships
 
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
691

 
$
(314
)
 
$
1,146

 
$
(105
)
Interest expense, net
Cross-currency swaps
 
2,665

 
2,146

 
6,203

 
5,920

Other income (expense), net
Total before income tax
 
3,356

 
1,832

 
7,349

 
5,815

(Loss) income before income taxes
Income tax
 
(825
)
 
(458
)
 
(1,812
)
 
(1,454
)
Income tax (benefit) expense
Total
 
$
2,531

 
$
1,374

 
$
5,537

 
$
4,361

 
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 March 31,
 
Nine Months Ended March 31,
 
 
 
2020
 
2019
 
2020
 
2019
 
Currency contracts
 
$
18,039

 
$
1,258


$
25,730

 
$
19,802

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

 
29


—

 
(185
)
Other income (expense), net
Total
 
$
18,039

 
$
1,287

 
$
25,730

 
$
19,617

 

_____________________
(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.