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Derivative Financial Instruments (Tables)

12 Months Ended

Jun. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

As of June 30, 2023, we had eleven effective outstanding interest rate swap contracts with aggregate notional amounts of $475,000, $140,000, and $60,000 that were indexed to USD LIBOR, Term SOFR, and Daily SOFR, respectively. The transition relief guidance from ASC 848 was applied to designate the SOFR swap contracts for hedge accounting despite the benchmark rate mismatch. After USD LIBOR sunsets on June 30, 2023, all contracts indexed to USD LIBOR will convert to either Term or Daily SOFR with effective dates in July 2023.

Our interest rate swap contracts have varying start and maturity dates through April 2028.

Interest rate swap contracts outstanding:						Notional Amounts
Contracts accruing interest as of June 30, 2023 (1)						$	245,000
Contracts with a future start date						430,000
Total						$	675,000

________________________

(1) Based on contracts outstanding as of June 30, 2023, the notional value of our contracted interest rate swaps accruing interest will fluctuate between $215,000 and $380,000 through April 2028 based on layered start dates and maturities.

Schedule of Notional Amounts of Outstanding Derivative Positions

As of June 30, 2023, we had the following outstanding currency derivative contracts that were not designated for hedge accounting and were primarily used to hedge fluctuations in the U.S. dollar value of forecasted transactions or balances denominated in Australian Dollar, GBP, Canadian Dollar, Czech Koruna, 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

$658,341

September 2021 through June 2023

Various dates through June 2025

588

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 June 30, 2023 and June 30, 2022. Our derivative asset and liability balances fluctuate with interest rate and currency exchange rate volatility.

			June 30, 2023
			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						$	19,341					$	(123)					$	19,218					Other liabilities						$	—					$	—					$	—
Cross-currency swaps			Other assets						—						—						—						Other current liabilities						(1,777)						—						(1,777)
Total derivatives designated as hedging instruments									$	19,341					$	(123)					$	19,218											$	(1,777)					$	—					$	(1,777)
Derivatives not designated as hedging instruments
Currency forward contracts			Other current assets / other assets						$	2,873					$	(572)					$	2,301					Other current liabilities / other liabilities						$	(6,074)					$	1,589					$	(4,485)
Currency option contracts			Other current assets / other assets						990						—						990						Other current liabilities / other liabilities						(3,055)						—						(3,055)
Total derivatives not designated as hedging instruments									$	3,863					$	(572)					$	3,291											$	(9,129)					$	1,589					$	(7,540)

			June 30, 2022
			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						$	14,336					$	—					$	14,336					Other current liabilities / other liabilities						$	—					$	—					$	—
Cross-currency swaps			Other assets						—						—						—						Other liabilities						(446)						—						$	(446)
Total derivatives designated as hedging instruments									$	14,336					$	—					$	14,336											$	(446)					$	—					$	(446)
Derivatives not designated as hedging instruments
Currency forward contracts			Other current assets / other assets						$	24,440					$	(3,802)					$	20,638					Other current liabilities / other liabilities						$	(505)					$	—					$	(505)
Currency option contracts			Other current assets / other assets						10,612						(1)						10,611						Other current liabilities / other liabilities						(9)						—						(9)
Total derivatives not designated as hedging instruments									$	35,052					$	(3,803)					$	31,249											$	(514)					$	—					$	(514)

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, net of tax, for the years ended June 30, 2023, 2022, and 2021:

									Year Ended June 30,
															2023						2022						2021
Derivatives in cash flow hedging relationships
Interest rate swaps															$	11,151					$	25,511					$	3,340
Cross-currency swaps															(1,160)						(22,698)						6,996
Derivatives in net investment hedging relationships
Intercompany loan															(8,384)						49,225						7,518
Currency forward contracts															—						13,622						(19,052)
Total															$	1,607					$	65,660					$	(1,198)

Reclassification out of Accumulated Other Comprehensive Income

The following table presents reclassifications out of accumulated other comprehensive loss for the years ended June 30, 2023, 2022 and 2021:

															Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income															Affected line item in the Statement of Operations
									Year Ended June 30,
															2023						2022						2021
Derivatives in cash flow hedging relationships
Interest rate swaps															$	(4,851)					$	9,998					$	6,967		Interest expense, net
Cross-currency swaps															903						18,286						(10,950)			Other income (expense), net
Total before income tax															(3,948)						28,284						(3,983)			(Loss) income before income taxes
Income tax															1,075						(2,087)						(106)			Income tax expense
Total															$	(2,873)					$	26,197					$	(4,089)

Derivatives Not Designated as Hedging Instruments

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the years ended June 30, 2023, 2022, and 2021 for derivative instruments for which we did not elect hedge accounting and de-designated derivative financial instruments that did not qualify as hedging instruments.

															Amount of Gain (Loss) Recognized in Net Loss															Affected line item in the Statement of Operations
									Year Ended June 30,
															2023						2022						2021
Currency contracts															$	3,311					$	51,784					$	(24,235)		Other income (expense), net
Interest rate swaps															—						6,364						3,507			Other income (expense), net
Total															$	3,311					$	58,148					$	(20,728)

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