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DERIVATIVE INSTRUMENTS | 12 Months Ended
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Jun. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Foreign Exchange Risk The Company is exposed to foreign currency exchange fluctuations through its global operations. The Company may reduce its exposure to fluctuations in the cash flows associated with changes in foreign exchange rates by creating offsetting positions through the use of derivative instruments and also by designating foreign currency denominated borrowings and cross-currency swaps as hedges of net investments in foreign subsidiaries. The Company expects that through hedging, any gain or loss on the derivative instruments would generally offset the expected increase or decrease in the value of the underlying forecasted transactions. In January and April 2025, the Company entered into cross-currency swap contracts in the notional amount of $750.0 and $250.0, respectively, and designated these cross-currency swaps as hedges of its net investment in a certain foreign subsidiary. As of June 30, 2025 and 2024, the notional amounts of the outstanding forward foreign exchange contracts designated as cash flow hedges were $17.3 and $22.3, respectively. The Company also uses certain derivatives not designated as hedging instruments consisting primarily of foreign currency forward contracts and cross currency swaps to hedge intercompany transactions and foreign currency denominated external debt. Although these derivatives were not designated for hedge accounting, the overall objective of mitigating foreign currency exposure is the same for all derivative instruments. For derivatives not designated as hedging instruments, changes in fair value are recorded in the line item in the Consolidated Statements of Operations to which the derivative relates. As of June 30, 2025 and 2024, the notional amounts of these outstanding non-designated foreign currency forward contracts were $1,102.5 and $1,797.6, respectively. Interest Rate Risk The Company is exposed to interest rate fluctuations related to its variable rate debt instruments. The Company reduces its exposure to fluctuations in the cash flows associated with changes in the variable interest rates by entering into offsetting positions through the use of derivative instruments, such as interest rate swap contracts. The interest rate swap contracts result in recognizing a fixed interest rate for the portion of the Company’s variable rate debt that was hedged. This will reduce the negative impact of increases in the variable rates over the term of the contracts. Hedge effectiveness of interest rate swap contracts is based on a long-haul hypothetical derivative methodology and includes all changes in value. As of June 30, 2023, the Company had interest rate swap contracts designated as effective hedges in the notional amount of $200.0, which were fully terminated in December 2023 for a cash receipt of $2.1. These interest rate swaps had been designated and qualified as cash flow hedges and were highly effective prior to termination. As the forecasted interest expense under the original swap agreements was still probable, the related gain in accumulated other comprehensive income (loss) ("AOCI/L") was amortized over the remaining life of the swaps. The Company had no outstanding interest rate swap contracts as of June 30, 2025. In addition, the Company from time to time uses cross-currency swaps to economically lower the interest rate on our loan portfolio. In January and April 2025, the Company entered into cross-currency swap contracts designated as hedges of net investment in a certain foreign subsidiary to effectively reduce the interest rates on the 2030 and 2029 Dollar Senior Secured Notes from 6.625% and 4.75% in U.S. dollars to 2.671% and 1.248% in Swiss Franc, respectively. The cross-currency swaps will expire upon maturity of the respective debt. Net Investment Hedge Foreign currency gains and losses on borrowings designated as a net investment hedge, except ineffective portions, are reported in the cumulative translation adjustment (“CTA”) component of AOCI/(L), along with the foreign currency translation adjustments on those investments. In January and April 2025, the Company expanded its net investment hedge activity by entering into cross-currency swaps with a gross notional value at inception of $750.0 and ₣676.9 million (Swiss Franc) and $250.0 and ₣203.6 million, respectively, maturing in July 2030 and January 2029, respectively, and designated these cross-currency swaps as hedges of its net investment in a certain foreign subsidiary. As of June 30, 2025 and 2024, the nominal exposures of foreign currency denominated borrowings designated as net investment hedges were €1,593.9 million and €1,611.6 million, respectively. The designated hedge amounts were considered highly effective. The gains and losses related to these instruments are included in AOCI/(L) and will remain until the sale or substantial liquidation of the underlying net investments. Forward Repurchase Contracts In June 2022, December 2022, and November 2023, the Company entered into certain forward repurchase contracts to start hedging for potential $200.0, $196.0, and $294.0 share buyback programs, in 2024, 2025, and 2026, respectively. These forward repurchase contracts are accounted for at fair value, with changes in the fair value recorded in Other expense (income), net in the Consolidated Statements of Operations. In February 2024, the Company elected to physically settle the June 2022 Forward for a cash payment of $200.0 in exchange for 27.0 million shares of its Class A Common Stock. Refer to Note 19—Equity and Convertible Preferred Stock. In December 2024, the Company entered into an agreement to extend the maturity of the December 2022 Forward by one year to fiscal 2026. Refer to Note 19—Equity and Convertible Preferred Stock. In February 2025, the Company paid $191.1 in Hedge Valuation Adjustments on the forward repurchase contracts. Refer to Note 19—Equity and Convertible Preferred Stock. Derivative and non-derivative financial instruments which are designated as hedging instruments: Foreign currency borrowings classified as net investment hedges—The accumulated (loss) gain on foreign currency borrowings classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $(91.6) and $14.6 as of June 30, 2025 and 2024, respectively. Cross-currency swap instruments classified as net investment hedges—The accumulated loss on derivative instruments classified as net investment hedges in the foreign currency translation adjustment component of AOCI/(L) was $(113.2) and $(37.6) as of June 30, 2025 and 2024, respectively. Foreign exchange forward contracts classified as cash flow hedges—The accumulated (loss) gain on derivative instruments classified as cash flow hedges in AOCI/(L), net of tax, was $(1.1) and $2.1 as of June 30, 2025 and 2024, respectively. The estimated net loss related to these effective hedges that is expected to be reclassified from AOCI/(L) into earnings, net of tax, within the next twelve months is $(1.1). As of June 30, 2025, all of the Company’s remaining foreign currency forward contracts designated as hedges were highly effective. The amount of gains and losses recognized in OCI in the Consolidated Balance Sheets related to the Company’s derivative and non-derivative financial instruments which are designated as hedging instruments is presented below:
Gain (Loss) Recognized in OCI | Fiscal Year Ended June 30,
| 2025 |  | 2024 |  | 2023
Foreign exchange forward contracts | $ | (1.1) |  |  | $ | 2.0 |  |  | $ | (3.7) |
Interest rate swap contracts | — |  |  | (0.1) |  |  | 5.4 |
Cross-currency swap contracts | (75.6) |  |  | — |  |  | — |
Foreign currency borrowings | (106.2) |  |  | 26.8 |  |  | (53.9) |
The amount of gains and losses reclassified from AOCI/(L) to the Consolidated Statements of Operations related to the Company’s derivative financial instruments which are designated as hedging instruments is presented below:
Location and Amount of Gain (Loss) Recognized in Income on Cash Flow Hedging Relationships |  | Fiscal Year Ended June 30,
|  | 2025 |  |  | 2024 |  |  | 2023
|  |  | Cost of sales |  | Interest expense, net |  |  |  | Cost of sales |  | Interest expense, net |  |  |  | Cost of sales |  | Interest expense, net
Foreign exchange forward contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain (loss) reclassified from AOCI into income |  |  | $ | 2.2 |  |  | $ | — |  |  |  |  | $ | (2.6) |  |  | $ | — |  |  |  |  | $ | (1.6) |  |  | $ | — |
Interest rate swap contracts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gain reclassified from AOCI into income |  |  | — |  |  | 1.3 |  |  |  |  | — |  |  | 2.0 |  |  |  |  | — |  |  | 8.3 |
Derivatives not designated as hedging instruments: The amount of gains and losses related to the Company’s derivative financial instruments not designated as hedging instruments is presented below:
Consolidated Statements of Operations Classification of Gain (Loss) Recognized in Operations | Fiscal Year Ended June 30,
|  | 2025 |  | 2024 |  | 2023
Foreign exchange contracts | Selling, general and administrative expenses | $ | (0.7) |  |  | $ | 0.1 |  |  | $ | (5.1) |
Foreign exchange contracts | Interest income (expense), net | (11.1) |  |  | (30.1) |  |  | (69.3) |
Foreign exchange and forward repurchase contracts | Other income (expense), net | (291.7) |  |  | (124.2) |  |  | 168.7 |

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