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Derivative Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

As of September 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. As of September 30, 2020, we have determined that three of our hedges are 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 September 30, 2020						$	500,000
Contracts with a future start date						50,000
Total						$	550,000

Derivatives Not Designated as Hedging Instruments

As of September 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

$466,969

December 2018 through September 2020

Various dates through October 2024

586

Various

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the three months ended September 30, 2020 and 2019 for derivative instruments for which we did not elect hedge accounting and de-designated derivative financial instruments that no longer qualify as hedging instruments.

			Amount of Gain (Loss) Recognized in Net (Loss) Income												Affected line item in the Statement of Operations
												Three Months Ended September 30,
																		2020						2019
Currency contracts																		$	(13,468)					$	19,357								Other (expense) income, net
Interest rate swaps																		(27)						—									Other (expense) income, net
Total																		$	(13,495)					$	19,357

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 September 30, 2020 and June 30, 2020. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.

			September 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						$	(29,106)					$	—					$	(29,106)
Cross-currency swaps			Other assets						948						—						948						Other liabilities						(7,814)						—						(7,814)
Derivatives in net investment hedging relationships
Currency forward contracts			Other assets						—						—						—						Other current liabilities / other liabilities						(13,157)						—						(13,157)
Total derivatives designated as hedging instruments									$	948					$	—					$	948											$	(50,077)					$	—					$	(50,077)
Derivatives not designated as hedging instruments
Interest rate swaps			Other assets						$	—					$	—					$	—					Other liabilities						$	(7,386)					$	—					$	(7,386)
Currency forward contracts			Other current assets / other assets						4,784						(994)						3,790						Other current liabilities / other liabilities						(10,062)						1,568						(8,494)
Currency option contracts			Other current assets / other assets						—						—						—						Other current liabilities / other liabilities						(2,475)						202						(2,273)
Total derivatives not designated as hedging instruments									$	4,784					$	(994)					$	3,790											$	(19,923)					$	1,770					$	(18,153)

			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)

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 months ended September 30, 2020 and 2019:

															Amount of Net (Loss) Gain on Derivatives Recognized in Comprehensive Income (Loss)
									Three Months Ended September 30,
															2020						2019
Derivatives in cash flow hedging relationships
Interest rate swaps															$	411					$	(4,590)
Cross-currency swaps															3,425						(2,598)
Derivatives in net investment hedging relationships
Currency forward contracts															(17,538)						12,718
Total															$	(13,702)					$	5,530

Reclassification out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive loss for the three months ended September 30, 2020 and 2019:

																		Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income									Affected line item in the Statement of Operations
												Three Months Ended September 30,
																		2020						2019
Derivatives in cash flow hedging relationships
Interest rate swaps																		$	2,622					$	(30)								Interest expense, net
Cross-currency swaps																		(4,767)						5,564									Other (expense) income, net
Total before income tax																		(2,145)						5,534									(Loss) income before income taxes
Income tax																		74						(1,383)									Income tax expense
Total																		$	(2,071)					$	4,151

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