v3.26.1
Derivative Instruments and Hedging Activities
 12 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
As part of our financial risk management program, we use certain derivative financial instruments. See Note 2 for discussion on our derivative instruments and hedging activities policy.
The fair value of derivatives designated and not designated as hedging instruments in the consolidated balance sheets are as follows:
(in thousands)20262025
Derivatives designated as hedging instruments
Other current liabilities - range forward contracts$— $(9)
Total derivatives designated as hedging instruments— (9)
Derivatives not designated as hedging instruments
Other current assets - currency forward contracts$32 $88 
Other current liabilities - currency forward contracts(213)(72)
Total derivatives not designated as hedging instruments(181)16 
Total derivatives$(181)$7 
Certain currency forward contracts that hedge significant cross-border intercompany loans are considered as other derivatives and therefore do not qualify for hedge accounting. These contracts are recorded at fair value in the consolidated balance sheets, with the offset to other income, net. Losses (gains) related to derivatives not designated as hedging instruments have been recognized as follows:
(in thousands)202620252024
Loss (gain) recognized in other income, net$282 $(58)$69 
CASH FLOW HEDGES
Range forward contracts (a transaction where both a put option is purchased and a call option is sold) are designated as cash flow hedges and hedge anticipated cash flows from cross-border intercompany sales of products and services. Gains and losses realized on these contracts are recorded in accumulated other comprehensive loss and are recognized as a component of cost of goods sold when the underlying sale of products or services is recognized into earnings. The notional amount of the contracts translated into U.S. dollars at June 30, 2026 and 2025 was zero and $4.7 million, respectively. The time value component of the fair value of range forward contracts is excluded from the assessment of hedge effectiveness.
The following represents (losses) gains, net of tax, related to cash flow hedges:
(in thousands)20262025
Unrealized (loss) gain recognized in other comprehensive income (loss)$(207)$771 
NET INVESTMENT HEDGES
As of June 30, 2026 and 2025, we had certain foreign currency-denominated intercompany loans payable with total aggregate principal amounts of ¥321.4 million and ¥82.3 million, respectively, designated as net investment hedges to hedge the foreign exchange exposure of our net investment in our China-based subsidiaries. Losses of $1.6 million and $2.2 million were recorded as a component of foreign currency translation adjustments in other comprehensive (loss) income as of June 30, 2026 and 2025, respectively.
As of June 30, 2026, the foreign currency-denominated intercompany loans payable designated as net investment hedges consisted of:
Instrument
Notional
(CNY in thousands)(2)
Notional
(USD in thousands)(2)
Maturity
Foreign currency-denominated intercompany loan payable¥87,611 $12,910 January 2027
Foreign currency-denominated intercompany loan payable¥69,658 $10,264 February 2027
Foreign currency-denominated intercompany loan payable¥123,069 $18,134 March 2027
Foreign currency-denominated intercompany loan payable¥41,065 $6,051 May 2027
(2) Includes principal and accrued interest.