XML 52 R38.htm IDEA: XBRL DOCUMENT v3.23.3

DERIVATIVES AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Sep. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

As of September 30, 2023, 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			$400,000

As of September 30, 2023, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risk.

Foreign Currency Derivative			Number of Instruments			Notional Sold			Notional Purchased
Foreign currency forward contract			4			£3,467			€4,000

As of September 30, 2023, 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			4			€100,300			$105,804

As of September 30, 2023, the Company had the following outstanding foreign currency derivatives that were used to hedge changes in fair value attributable to foreign exchange risk:

Foreign Currency Derivative			Number of Instruments			Notional Sold			Notional Purchased
Cross-currency swap			1			€24,700			$26,021

As of September 30, 2023 and June 30, 2023, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

			Carrying Amount of the Hedged Asset									Cumulative Amount of Fair Value Hedge Adjustment Included in the Carrying Amount of the Hedged Asset
			September 30, 2023			June 30, 2023						September 30, 2023			June 30, 2023
Intercompany loan receivable			$	26,115		$	26,945					$	830		$	924

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 September 30, 2023:

			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						$	8,964					Accrued expenses and other current liabilities						$	—
Interest rate swaps			Other noncurrent assets						8,855						Other noncurrent liabilities						—
Cross-currency swaps			Prepaid expenses and other current assets						2,376						Accrued expenses and other current liabilities						—
Cross-currency swaps			Other noncurrent assets						—						Other noncurrent liabilities						901
Foreign currency forward contracts			Prepaid expenses and other current assets						41						Other noncurrent liabilities						—
Total derivatives designated as hedging instruments									$	20,236											$	901

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, 2023:

			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						$	8,649					Accrued expenses and other current liabilities						$	—
Interest rate swaps			Other noncurrent assets						5,974						Other noncurrent liabilities						—
Cross-currency swaps			Prepaid expenses and other current assets						2,365						Accrued expenses and other current liabilities						—
Cross-currency swaps			Other noncurrent assets						—						Other noncurrent liabilities						3,160
Total derivatives designated as hedging instruments									$	16,988											$	3,160

Pre-Tax Effect of Hedge Accounting on Accumulated Other Comprehensive Loss

The following table presents the pre-tax effect of cash flow hedge accounting on AOCL for the three months ended September 30, 2023 and 2022:

Derivatives in Cash Flow Hedging Relationships			Amount of Gain Recognized in AOCL on Derivatives									Location of Gain (Loss) Reclassified from AOCL into Income (Expense)			Amount of Gain (Loss) Reclassified from AOCL into Income (Expense)
			Three Months Ended September 30,												Three Months Ended September 30,
			2023						2022						2023						2022
Interest rate swaps			$	5,478					$	15,262		Interest and other financing expense, net			$	2,281					$	1,146
Cross-currency swaps			—						—			Interest and other financing expense, net / Other (income) expense, net			—						(115)
Foreign currency forward contracts			41						—			Cost of sales			—						—
			$	5,519					$	15,262					$	2,281					$	1,031

The following table presents the pre-tax effect of fair value hedge accounting on AOCL for the three months ended September 30, 2023 and 2022:

Derivatives in Fair value Hedging Relationships			Amount of Gain Recognized in AOCL on Derivatives									Location of Gain Reclassified from AOCL into Income on Derivatives (Amount Excluded from Effectiveness Testing)			Amount of Gain Reclassified from AOCL into Income on Derivatives (Amount Excluded from Effectiveness Testing)
			Three Months Ended September 30,												Three Months Ended September 30,
			2023						2022						2023						2022
Cross-currency swaps			$	572					$	1,539		Interest and other financing expense, net			$	123					$	123
			$	572					$	1,539					$	123					$	123

Pre-Tax Effect of Derivative Financial Instruments Electing 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 September 30, 2023 and 2022:

												Location and Amount of Gain (Loss) Recognized in the Consolidated Statements of Operations on Cash Flow Hedging Relationships
												Three Months Ended September 30, 2023												Three Months Ended September 30, 2022
												Cost of sales						Interest and other financing expense, net												Cost of sales						Interest and other financing expense, net
The effects of cash flow hedging:
			Gain (Loss) on cash flow hedging relationships
						Interest rate swaps
									Amount of gain reclassified from AOCL into income			$	—					$	2,281											$	—					$	1,146
						Cross-currency swaps
									Amount of loss reclassified from AOCL into income			$	—					$	—											$	—					$	(115)

The following table presents the pre-tax effect of the Company’s derivative financial instruments electing fair value hedge accounting on the Consolidated Statements of Operations as of September 30, 2023 and 2022:

												Location and Amount of Gain Recognized in the Consolidated Statements of Operations on Fair Value Hedging Relationships
												Three Months Ended September 30, 2023																		Three Months Ended September 30, 2022
												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 fair value hedging:
			Gain on fair value hedging relationships
						Cross-currency swaps
									Amount of gain reclassified from AOCL into income			$	—					$	953					$	—					$	—					$	123					$	1,688

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 September 30, 2023 and 2022:

Derivatives in Net Investment Hedging Relationships			Amount of Gain Recognized in AOCL on Derivatives									Location of Gain (Loss) Recognized in Income (Expense) on Derivatives (Amount Excluded from Effectiveness Testing)			Amount of Gain (Loss) Recognized in Income (Expense) on Derivatives (Amount Excluded from Effectiveness Testing)
			Three Months Ended September 30,												Three Months Ended September 30,
			2023						2022						2023						2022
Cross-currency swaps			$	2,316					$	6,268		Interest and other financing expense, net			$	495					$	(495)

X

- References

No definition available.

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of information about items reclassified out of accumulated other comprehensive income (loss).

+ References

No definition available.

+ Details

Name:	us-gaap_ReclassificationOutOfAccumulatedOtherComprehensiveIncomeTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for cash flow hedging instruments of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

+ Details

Name:	us-gaap_ScheduleOfCashFlowHedgingInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-SubTopic 10
-Topic 815
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-1A

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-1B

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 8
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-8

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4B

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-1

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-5

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

+ Details

Name:	us-gaap_ScheduleOfDerivativeInstrumentsTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure of derivative instruments (including nonderivative instruments that are designated and qualify as hedging instruments) of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4A

+ Details

Name:	us-gaap_ScheduleOfDerivativesInstrumentsStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- Definition

Tabular disclosure for net investment hedges of (a) the location and amount of gains and losses reported in the statement of financial performance and (b) the location and fair value amounts of the instruments reported in the statement of financial position.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147480434/815-10-50-4C

+ Details

Name:	us-gaap_ScheduleOfNetInvestmentHedgesStatementsOfFinancialPerformanceAndFinancialPositionLocationTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration