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Derivative Financial Instruments (Tables) | 3 Months Ended
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Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | As of September 30, 2021, we had fifteen outstanding interest rate swap contracts indexed to USD LIBOR, three of which were not highly effective and therefore not designated for hedge accounting. These hedges have varying start dates and maturity dates through April 2028.
Interest rate swap contracts outstanding: |  | Notional Amounts
Contracts accruing interest as of September 30, 2021 |  | $ | 500,000 |
Contracts with a future start date |  | 430,000 |
Total |  | $ | 930,000 |
Derivatives Not Designated as Hedging Instruments | As of September 30, 2021, 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, Japanese Yen, Mexican Peso, New Zealand Dollar, Norwegian Krone, Philippine Peso, Swiss Franc and Swedish Krona:
Notional Amount |  | Effective Date |  | Maturity Date |  | Number of Instruments |  | Index
$557,175 |  | September 2019 through September 2021 |  | Various dates through October 2024 |  | 701 |  | Various
The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the three months ended September 30, 2021 and 2020 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 (Loss) | Affected line item in the Statement of Operations
|  | Three Months Ended September 30, |  |  |
|  | 2021 |  | 2020 |  |  |  |  |  |  |
Currency contracts |  | $ | 12,863 |  |  | $ | (13,468) |  |  |  |  |  |  |  | Other income (expense), net
Interest rate swaps |  | 464 |  |  | (27) |  |  |  |  |  |  |  | Other income (expense), net
Total |  | $ | 13,327 |  |  | $ | (13,495) |  |  |  |  |  |  |  |
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, 2021 and June 30, 2021. Our derivative asset and liability balances will fluctuate with interest rate and currency exchange rate volatility.
| September 30, 2021
| 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 assets |  | $ | 232 |  |  | $ | — |  |  | $ | 232 |  |  | Other liabilities |  | $ | (20,827) |  |  | $ | 267 |  |  | $ | (20,560) |
Cross-currency swaps | Other assets |  | 760 |  |  | — |  |  | 760 |  |  | Other liabilities |  | (6,741) |  |  | — |  |  | (6,741) |
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other current assets / other assets |  | — |  |  | — |  |  | — |  |  | Other current liabilities / other liabilities |  | (7,886) |  |  | — |  |  | (7,886) |
Total derivatives designated as hedging instruments |  |  | $ | 992 |  |  | $ | — |  |  | $ | 992 |  |  |  |  | $ | (35,454) |  |  | $ | 267 |  |  | $ | (35,187) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other liabilities |  | $ | (1,377) |  |  | $ | — |  |  | $ | (1,377) |
Currency forward contracts | Other current assets / other assets |  | 11,498 |  |  | (3,051) |  |  | 8,447 |  |  | Other current liabilities / other liabilities |  | (3,260) |  |  | 843 |  |  | (2,417) |
Currency option contracts | Other current assets / other assets |  | 2,170 |  |  | (188) |  |  | 1,982 |  |  | Other current liabilities / other liabilities |  | (1,265) |  |  | 115 |  |  | (1,150) |
Total derivatives not designated as hedging instruments |  |  | $ | 13,668 |  |  | $ | (3,239) |  |  | $ | 10,429 |  |  |  |  | $ | (5,902) |  |  | $ | 958 |  |  | $ | (4,944) |
| June 30, 2021
| 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 current liabilities / other liabilities |  | $ | (23,527) |  |  | $ | 176 |  |  | $ | (23,351) |
Cross-currency swaps | Other assets |  | — |  |  | — |  |  | — |  |  | Other liabilities |  | (9,914) |  |  | — |  |  | (9,914) |
Derivatives in Net Investment Hedging Relationships |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts | Other assets |  | — |  |  | — |  |  | — |  |  | Other current liabilities / other liabilities |  | (11,379) |  |  | — |  |  | (11,379) |
Total derivatives designated as hedging instruments |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  |  |  | $ | (44,820) |  |  | $ | 176 |  |  | $ | (44,644) |
Derivatives not designated as hedging instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps | Other assets |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | Other liabilities |  | $ | (1,842) |  |  | $ | — |  |  | $ | (1,842) |
Currency forward contracts | Other current assets / other assets |  | 1,796 |  |  | (117) |  |  | 1,679 |  |  | Other current liabilities / other liabilities |  | (11,510) |  |  | 3,238 |  |  | (8,272) |
Currency option contracts | Other current assets / other assets |  | — |  |  | — |  |  | — |  |  | Other current liabilities / other liabilities |  | (3,315) |  |  | 235 |  |  | (3,080) |
Total derivatives not designated as hedging instruments |  |  | $ | 1,796 |  |  | $ | (117) |  |  | $ | 1,679 |  |  |  |  | $ | (16,667) |  |  | $ | 3,473 |  |  | $ | (13,194) |
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, 2021 and 2020:
|  |  |  |  | Amount of Net Gain (Loss) on Derivatives Recognized in Comprehensive Income |  |
|  |  | Three Months Ended September 30, |  |
|  |  |  |  | 2021 |  | 2020 |  |  |  |
Derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  |  |  |  | $ | 519 |  |  | $ | 411 |  |  |  |  |
Cross-currency swaps |  |  |  |  | (2,444) |  |  | 3,425 |  |  |  |  |
Derivatives in net investment hedging relationships |  |  |  |  |  |  |  |  |  |  |
Currency forward contracts |  |  |  |  | 3,492 |  |  | (17,538) |  |  |  |  |
Total |  |  |  |  | $ | 1,567 |  |  | $ | (13,702) |  |  |  |  |
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, 2021 and 2020:
|  | 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, |  |  |
|  | 2021 |  | 2020 |  |  |  |  |  |  |
Derivatives in cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |
Interest rate swaps |  | $ | 2,497 |  |  | $ | 2,622 |  |  |  |  |  |  |  | Interest expense, net
Cross-currency swaps |  | 3,987 |  |  | (4,767) |  |  |  |  |  |  |  | Other income (expense), net
Total before income tax |  | 6,484 |  |  | (2,145) |  |  |  |  |  |  |  | Income (loss) before income taxes
Income tax |  | (938) |  |  | 74 |  |  |  |  |  |  |  | Income tax expense
Total |  | $ | 5,546 |  |  | $ | (2,071) |  |  |  |  |  |  |  |

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