v3.22.4
Derivative Financial Instruments (Tables)
 6 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments As of December 31, 2022, we had fourteen effective outstanding interest rate swap contracts. Twelve of our swaps are indexed to USD LIBOR, while the remaining two are indexed to Term SOFR. The transition relief guidance from ASC 848 was applied to designate the two Term SOFR swap contracts that we entered into during the current quarter for hedge accounting. After USD LIBOR sunsets on June 30, 2023, we may convert our contracts to index to Term SOFR, otherwise the contracts will be subject to the fallback language within our credit agreement.
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 December 31, 2022
$400,000 
Contracts with a future start date430,000 
Total$830,000 
Schedule of Notional Amounts of Outstanding Derivative Positions
As of December 31, 2022, we had the following outstanding currency derivative contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar value of forecasted transactions or balances denominated in Australian Dollar, British Pound, Canadian Dollar, Danish Krone, Euro, Indian Rupee, Japanese Yen, Mexican Peso, New Zealand Dollar, Norwegian Krone, Philippine Peso, Swiss Franc and Swedish Krona:
Notional AmountEffective DateMaturity DateNumber of InstrumentsIndex
$534,594March 2021 through December 2022Various dates through Dec 2024536Various
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 December 31, 2022 and June 30, 2022. Our derivative asset and liability balances fluctuate with interest rate and currency exchange rate volatility.
December 31, 2022
Asset DerivativesLiability Derivatives
Balance Sheet line itemGross amounts of recognized assetsGross amount offset in Consolidated Balance SheetNet amountBalance Sheet line itemGross amounts of recognized liabilitiesGross amount offset in Consolidated Balance SheetNet amount
Derivatives in cash flow hedging relationships
Interest rate swapsOther assets$23,554 $(4)$23,550 Other current liabilities / other liabilities$— $— $— 
Cross-currency swapsOther assets— — — Other liabilities(1,313)— (1,313)
Total derivatives designated as hedging instruments$23,554 $(4)$23,550 $(1,313)$— $(1,313)
Derivatives not designated as hedging instruments
Currency forward contractsOther current assets / other assets$5,920 $(1,341)$4,579 Other current liabilities / other liabilities$(6,128)$2,474 $(3,654)
Currency option contractsOther current assets / other assets4,537 (23)4,514 Other liabilities(1,243)644 (599)
Total derivatives not designated as hedging instruments$10,457 $(1,364)$9,093 $(7,371)$3,118 $(4,253)
June 30, 2022
Asset DerivativesLiability Derivatives
Balance Sheet line itemGross amounts of recognized assetsGross amount offset in Consolidated Balance SheetNet amountBalance Sheet line itemGross amounts of recognized liabilitiesGross amount offset in Consolidated Balance SheetNet amount
Derivatives designated as hedging instruments
Derivatives in cash flow hedging relationships
Interest rate swapsOther current assets / other assets$14,336 $— $14,336 Other current liabilities / other liabilities$— $— $— 
Cross-currency swapsOther 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 contractsOther current assets / other assets$24,440 $(3,802)$20,638 Other current liabilities / other liabilities$(505)$— $(505)
Currency option contractsOther current assets / other assets10,612 (1)10,611 Other current liabilities / other liabilities(9)— (9)
Total derivatives not designated as hedging instruments$35,052 $(3,803)$31,249 $(514)$— $(514)
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net The following table presents the effect of our derivative financial instruments designated as hedging instruments and their classification within comprehensive (loss) income, net of tax, for the three and six months ended December 31, 2022 and 2021:
Three Months Ended December 31, Six Months Ended December 31,
2022202120222021
Derivatives in cash flow hedging relationships
Interest rate swaps$(1,266)$5,021 $11,688 $5,540 
Cross-currency swaps(4,383)(7,519)(577)(9,963)
Derivatives in net investment hedging relationships
Intercompany loan(18,636)8,359 (5,684)17,386 
Currency forward contracts— 2,922 — 6,414 
Total$(24,285)$8,783 $5,427 $19,377 
Reclassification out of Accumulated Other Comprehensive Income
The following table presents reclassifications out of accumulated other comprehensive loss for the three and six months ended December 31, 2022 and 2021:
Amount of Net Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into IncomeAffected line item in the
Statement of Operations
Three Months Ended December 31, Six Months Ended December 31,
2022202120222021
Derivatives in cash flow hedging relationships
Interest rate swaps$(1,089)$2,973 $(692)$5,470 Interest expense, net
Cross-currency swaps4,606 3,821 864 7,808 Other (expense) income, net
Total before income tax3,517 6,794 172 13,278 (Loss) income before income taxes
Income tax(381)974 26 36 Income tax expense
Total$3,136 $7,768 $198 $13,314 
Derivatives Not Designated as Hedging Instruments
The following table presents the adjustment to fair value recorded within the consolidated statements of operations for the three and six months ended December 31, 2022 and 2021 for derivative instruments for which we did not elect hedge accounting and de-designated derivative financial instruments that did not qualify as hedging instruments.
Amount of Gain (Loss) Recognized in Net (Loss) IncomeAffected line item in the
Statement of Operations
Three Months Ended December 31, Six Months Ended December 31,
2022202120222021
Currency contracts$(24,196)$7,161 $4,449 $20,024 Other (expense) income, net
Interest rate swaps— (680)— (216)Other (expense) income, net
Total$(24,196)$6,481 $4,449 $19,808