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DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 6 Months Ended
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Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Schedule of Derivative Instruments | As of December 31, 2020, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:
Interest Rate Derivative | Number of Instruments | Notional Amount
Interest Rate Swap | 4 | $230,000
As of December 31, 2020, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risks:
Foreign Currency Derivative | Number of Instruments | Notional Sold | Notional Purchased
Cross-currency swap | 1 | €24,700 | $26,775
As of December 31, 2020, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations:
Foreign Currency Derivative | Number of Instruments | Notional Sold | Notional Purchased
Cross-currency swap | 2 | €76,969 | $83,225
Derivative Financial Instruments and Classification on Consolidated Balance Sheets | The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of December 31, 2020:
| Asset Derivatives |  | Liability Derivatives
| Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate swaps | Prepaid expenses and other current assets |  | $ | — |  |  | Accrued expenses and other current liabilities / Other noncurrent liabilities |  | $ | 603 |
Cross-currency swaps | Prepaid expenses and other current assets |  | 602 |  |  | Other noncurrent liabilities |  | 15,481 |
Total derivatives designated as hedging instruments |  |  | 602 |  |  |  |  | 16,084 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency forward contracts | Prepaid expenses and other current assets |  | — |  |  | Accrued expenses and other current liabilities |  | 524 |
Total derivative instruments |  |  | $ | 602 |  |  |  |  | $ | 16,608 |
The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of June 30, 2020:
| Asset Derivatives |  | Liability Derivatives
| Balance Sheet Location |  | Fair Value |  | Balance Sheet Location |  | Fair Value
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Interest rate swaps | Prepaid expenses and other current assets |  | $ | — |  |  | Accrued expenses and other current liabilities / Other noncurrent liabilities |  | $ | 856 |
Cross-currency swaps | Prepaid expenses and other current assets |  | 746 |  |  | Other noncurrent liabilities |  | 5,475 |
Foreign currency forward contracts | Prepaid expenses and other current assets |  | 75 |  |  | Other noncurrent liabilities |  | — |
Total derivatives designated as hedging instruments |  |  | 821 |  |  |  |  | 6,331 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Foreign currency forward contracts | Prepaid expenses and other current assets |  | 193 |  |  | Accrued expenses and other current liabilities |  | 74 |
Total derivative instruments |  |  | $ | 1,014 |  |  |  |  | $ | 6,405 |
Pre-Tax Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss | The following table presents the pre-tax effect of cash flow hedge accounting on AOCL as of the three months ended December 31, 2020 and 2019:
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Reclassified from AOCL into Income | Amount of Gain (Loss) Reclassified from AOCL into Income
| Three Months Ended December 31, |  | Three Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Interest rate swaps | $ | 62 |  |  | $ | — |  | Interest and other financing expense, net | $ | (72) |  |  | $ | — |
Cross-currency swaps | (1,209) |  |  | — |  | Interest and other financing expense, net / Other expense (income), net | (1,176) |  |  | — |
Foreign currency forward contracts | — |  |  | 104 |  | Cost of sales | — |  |  | (52) |
Total | $ | (1,147) |  |  | $ | 104 |  |  | $ | (1,248) |  |  | $ | (52) |
The following table presents the pre-tax effect of cash flow hedge accounting on AOCL as of the six months ended December 31, 2020 and 2019:
Derivatives in Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Reclassified from AOCL into Income | Amount of Gain (Loss) Reclassified from AOCL into Income
| Six Months Ended December 31, |  | Six Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Interest rate swaps | $ | 123 |  |  | $ | — |  | Interest and other financing expense, net | $ | (130) |  |  | $ | — |
Cross-currency swaps | (2,386) |  |  | — |  | Interest and other financing expense, net / Other expense (income), net | (2,359) |  |  | — |
Foreign currency forward contracts | (2) |  |  | (6) |  | Cost of sales | 73 |  |  | 26 |
Total | $ | (2,265) |  |  | $ | (6) |  |  | $ | (2,416) |  |  | $ | 26 |
Pre-Tax Effect of Derivative Financial Instruments Electing Cash Flow Hedge Accounting on Consolidated Statements of Operations | The following table presents the pre-tax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations for the three months ended of December 31, 2020 and 2019:
|  |  |  | Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships
|  |  |  | Three Months Ended December 31, 2020 |  | Three Months Ended December 31, 2019
|  |  |  | Cost of sales |  | Interest and other financing expense, net |  | Other expense/income, net |  | Cost of sales |  | Interest and other financing expense, net |  | Other expense/income, net
The effects of cash flow hedging: |  |  |  |  |  |  |  |  |  |  |
| Gain (loss) on cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |
|  | Interest rate swaps |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of (loss) gain reclassified from AOCL into income | $ | — |  |  | $ | (72) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Cross-currency swaps |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of gain (loss) reclassified from AOCL into income | $ | — |  |  | $ | 40 |  |  | $ | (1,216) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Foreign currency forward contracts |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of (loss) gain reclassified from AOCL into income | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (52) |  |  | $ | — |  |  | $ | — |
The following table presents the pre-tax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations for the six months ended of December 31, 2020 and 2019:
|  |  |  | Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships
|  |  |  | Six Months Ended December 31, 2020 |  | Six Months Ended December 31, 2019
|  |  |  | Cost of sales |  | Interest and other financing expense, net |  | Other expense (income), net |  | Cost of sales |  | Interest and other financing expense, net |  | Other expense (income), net
The effects of cash flow hedging: |  |  |  |  |  |  |  |  |  |  |
| Gain (loss) on cash flow hedging relationships |  |  |  |  |  |  |  |  |  |  |
|  | Interest rate swaps |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of (loss) gain reclassified from AOCL into income | $ | — |  |  | $ | (130) |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Cross-currency swaps |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of gain (loss) reclassified from AOCL into income | $ | — |  |  | $ | 81 |  |  | $ | (2,440) |  |  | $ | — |  |  | $ | — |  |  | $ | — |
|  | Foreign currency forward contracts |  |  |  |  |  |  |  |  |  |  |
|  |  | Amount of (loss) gain reclassified from AOCL into income | $ | 73 |  |  | $ | — |  |  | $ | — |  |  | $ | 26 |  |  | $ | — |  |  | $ | — |
Pre-Tax Effect of Net Investment Hedges on Accumulated Other Comprehensive Loss and the Consolidated Statements of Operations | The following table presents the pre-tax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations for the three months ended December 31, 2020 and 2019:
Derivatives in Net Investment Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
| Three Months Ended December 31, |  | Three Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Cross-currency swaps | $ | (3,772) |  |  | $ | — |  | Interest and other financing expense, net | $ | 125 |  |  | $ | — |
The following table presents the pre-tax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations for the six months ended December 31, 2020 and 2019:
Derivatives in Net Investment Hedging Relationships | Amount of Gain (Loss) Recognized in OCI on Derivatives | Location of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing) | Amount of Gain (Loss) Recognized in Income on Derivatives (Amount Excluded from Effectiveness Testing)
| Six Months Ended December 31, |  | Six Months Ended December 31,
| 2020 |  | 2019 |  | 2020 |  | 2019
Cross-currency swaps | $ | (7,430) |  |  | $ | — |  | Interest and other financing expense, net | $ | 254 |  |  | $ | — |
Pre-Tax Effect of Derivative Financial Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Operations | The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements Operations for the three months ended December 31, 2020 and 2019:
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivatives
|  | Three Months Ended December 31,
|  | 2020 |  | 2019
Foreign currency forward contracts | Other (income) expense, net | $ | (523) |  |  | $ | (336) |
The following table presents the effect of the Company’s derivative financial instruments that are not designated as hedging instruments on the Consolidated Statements Operations for the six months ended December 31, 2020 and 2019:
Derivatives Not Designated as Hedging Instruments | Location of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Derivatives
|  | Six Months Ended December 31,
|  | 2020 |  | 2019
Foreign currency forward contracts | Other (income) expense, net | $ | (399) |  |  | $ | (505) |

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