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Derivative Financial Instruments (Tables) | 6 Months Ended
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Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | As of December 31, 2020, we had ten outstanding interest rate swap contracts indexed to USD LIBOR, of which six of these instruments were designated as cash flow hedges of interest rate risk and have varying start dates and maturity dates through September 2025. As of December 31, 2020, we have determined that four of our hedges are no longer highly effective. These de-designated hedges have varying start dates and maturity dates through December 2025.
Interest rate swap contracts outstanding: |  | Notional Amounts
Contracts accruing interest as of December 31, 2020 |  | $ | 500,000 |
Contracts with a future start date |  | 50,000 |
Total |  | $ | 550,000 |
Derivatives Not Designated as Hedging Instruments | As of December 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, Swiss Franc and Swedish Krona:
Notional Amount |  | Effective Date |  | Maturity Date |  | Number of Instruments |  | Index
$484,660 |  | March 2019 through December 2020 |  | Various dates through October 2024 |  | 602 |  | Various
The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the three and six months ended December 31, 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 Income | Affected line item in the Statement of Operations
|  | Three Months Ended December 31, |  | Six Months Ended December 31, |
|  | 2020 |  | 2019 |  | 2020 |  | 2019 |  |  |
Currency contracts |  | $ | (19,496) |  |  | $ | (11,666) |  |  | $ | (32,964) |  |  | $ | 7,691 |  |  |  | Other (expense) income, net
Interest rate swaps |  | 476 |  |  | — |  |  | 449 |  |  | — |  |  |  | Other (expense) income, net
Total |  | $ | (19,020) |  |  | $ | (11,666) |  |  | $ | (32,515) |  |  | $ | 7,691 |  |  |  |
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, 2020 and June 30, 2020. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.
| December 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 |  | $ | (20,839) |  |  | $ | — |  |  | $ | (20,839) |
Cross-currency swaps | Other assets |  | — |  |  | — |  |  | — |  |  | Other liabilities |  | (14,622) |  |  | — |  |  | (14,622) |
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other assets |  | — |  |  | — |  |  | — |  |  | Other current liabilities / other liabilities |  | (25,758) |  |  | — |  |  | (25,758) |
Total derivatives designated as hedging instruments |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (61,219) |  |  | $ | — |  |  | $ | (61,219) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other liabilities |  | $ | (12,160) |  |  | $ | — |  |  | $ | (12,160) |
Currency forward contracts | Other current assets / other assets |  | 772 |  |  | (80) |  |  | 692 |  |  | Other current liabilities / other liabilities |  | (18,548) |  |  | 2,542 |  |  | (16,006) |
Currency option contracts | Other current assets / other assets |  | — |  |  | — |  |  | — |  |  | Other current liabilities / other liabilities |  | (4,274) |  |  | — |  |  | (4,274) |
Total derivatives not designated as hedging instruments |  |  | $ | 772 |  |  | $ | (80) |  |  | $ | 692 |  |  |  |  | $ | (34,982) |  |  | $ | 2,542 |  |  | $ | (32,440) |
| 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 and six months ended December 31, 2020 and 2019:
| Amount of Net (Loss) Gain on Derivatives Recognized in Comprehensive Income |  |
| Three Months Ended December 31, |  | Six Months Ended December 31, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  |  |  |
Derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | $ | 731 |  |  | $ | 4,394 |  |  | $ | 1,142 |  |  | $ | (196) |  |  |  |  |
Cross-currency swaps | 3,071 |  |  | 1,737 |  |  | 6,496 |  |  | (861) |  |  |  |  |
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | (7,294) |  |  | (4,153) |  |  | (24,832) |  |  | 8,565 |  |  |  |  |
Total | $ | (3,492) |  |  | $ | 1,978 |  |  | $ | (17,194) |  |  | $ | 7,508 |  |  |  |  |
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, 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 December 31, |  | Six Months Ended December 31, |
|  | 2020 |  | 2019 |  | 2020 |  | 2019 |  |  |
Derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 2,001 |  |  | $ | 485 |  |  | $ | 4,623 |  |  | $ | 455 |  |  |  | Interest expense, net
Cross-currency swaps |  | (5,525) |  |  | (2,026) |  |  | (10,292) |  |  | 3,538 |  |  |  | Other (expense) income, net
Total before income tax |  | (3,524) |  |  | (1,541) |  |  | (5,669) |  |  | 3,993 |  |  |  | Income before income taxes
Income tax |  | 298 |  |  | 396 |  |  | 372 |  |  | (987) |  |  |  | Income tax expense (benefit)
Total |  | $ | (3,226) |  |  | $ | (1,145) |  |  | $ | (5,297) |  |  | $ | 3,006 |  |  |  |

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