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Derivative Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments

As of September 30, 2023, we had eleven effective outstanding interest rate swap contracts that were indexed to Term or Daily SOFR.

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 September 30, 2023 (1)						$	245,000
Contracts with a future start date						430,000
Total						$	675,000

________________________

(1) Based on contracts outstanding as of September 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 September 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, Canadian Dollar, Czech Koruna, Danish Krone, Euro, GBP, 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

$651,202

December 2021 through September 2023

Various dates through September 2025

595

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

			September 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 current assets / other assets						$	23,949					$	—					$	23,949					Other liabilities						$	—					$	—					$	—
Cross-currency swaps			Other current assets						13						—						13						Other current liabilities						—						—						—
Total derivatives designated as hedging instruments									$	23,962					$	—					$	23,962											$	—					$	—					$	—
Derivatives not designated as hedging instruments
Currency forward contracts			Other current assets / other assets						$	5,837					$	(1,709)					$	4,128					Other current liabilities / other liabilities						$	(2,452)					$	907					$	(1,545)
Currency option contracts			Other current assets / other assets						935						(1)						934						Other current liabilities / other liabilities						(2,186)						681						(1,505)
Total derivatives not designated as hedging instruments									$	6,772					$	(1,710)					$	5,062											$	(4,638)					$	1,588					$	(3,050)

			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)

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 three months ended September 30, 2023 and 2022:

			Three Months Ended September 30,
			2023						2022
Derivatives in cash flow hedging relationships
Interest rate swaps			$	6,131					$	12,954
Cross-currency swaps			1,548						3,806
Derivatives in net investment hedging relationships
Intercompany loan			5,775						12,951
Currency forward contracts			(1,080)						—
Total			$	12,374					$	29,711

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, 2023 and 2022:

			Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income									Affected line item in the Statement of Operations
			Three Months Ended September 30,
			2023						2022
Derivatives in cash flow hedging relationships
Interest rate swaps			$	(2,223)					$	397																				Interest expense, net
Cross-currency swaps			(1,936)						(3,742)																					Other income, net
Total before income tax			(4,159)						(3,345)																					Income (loss) before income taxes
Income tax			611						407																					Income tax expense
Total			$	(3,548)					$	(2,938)

Derivatives Not Designated as Hedging Instruments

The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the three months ended September 30, 2023 and 2022 for derivative instruments for which we did not elect hedge accounting.

			Amount of Gain (Loss) Recognized in Net Income (Loss)									Affected line item in the Statement of Operations
			Three Months Ended September 30,
			2023						2022
Currency contracts			$	8,312					$	28,645																				Other income, net
Total			$	8,312					$	28,645

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