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Derivative Financial Instruments (Tables)

6 Months Ended

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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