v3.26.1
Derivative Contracts
 12 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Contracts
5. Derivative Contracts
The Company has derivative instruments that are used for hedging activities as discussed below.
The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2026 (in thousands):
Notional Amounts of Derivative Instruments
Notional Amount by Term to MaturityClassification by Notional Amount
Under 12 monthsOver 12 monthsTotalCash Flow HedgeNon HedgeTotal
Forward contracts$1,030,684 $62,031$1,092,715$704,613$388,102 $1,092,715
The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2025 (in thousands):
Notional Amounts of Derivative Instruments
Notional Amount by Term to MaturityClassification by Notional Amount
Under 12 monthsOver 12 monthsTotalCash Flow HedgeNon HedgeTotal
Forward contracts$1,064,280 $79,858$1,144,138$765,613$378,525 $1,144,138
The fair value of the Company’s derivative instruments were as follows (in thousands):
As of June 30,
Balance Sheet Location20262025
Derivative assets
Derivatives designated as hedging instruments:
Foreign exchange forward contractsPrepaid expenses and other current assets$17,110 $16,210 
Foreign exchange forward contractsOther non-current assets156 3,715 
Derivatives not designated as hedging instruments:
Foreign exchange forward contractsPrepaid expenses and other current assets240 3,309 
Total derivative assets$17,506 $23,234 
Derivative liabilities
Derivatives designated as hedging instruments:
Foreign exchange forward contractsAccrued expenses and other current liabilities$10,085 $2,409 
Foreign exchange forward contractsOther non-current liabilities988 — 
Derivatives not designated as hedging instruments:
Foreign exchange forward contractsAccrued expenses and other current liabilities5,932 36 
Total derivative liabilities$17,005 $2,445 
The pre-tax effects of derivatives designated as cash flow hedging instruments on the consolidated financial statements were as follows (in thousands):
Fiscal Year Ended June 30,
202620252024
Beginning balance of accumulated gains in accumulated other comprehensive loss$24,679 $41,424 $48,170 
Gross unrealized gains (losses) recognized in other comprehensive loss7,877 (1,897)10,826 
Net losses (gains) reclassified from cash flow hedge in accumulated other comprehensive loss into profit or loss:
Recognized in cost of revenues43 1,447 1,072 
Recognized in research and development(12,840)7,194 7,718 
Recognized in marketing and sales(3,223)1,027 1,264 
Recognized in general and administrative(3,033)1,828 2,320 
Recognized in interest(7,163)(26,344)(29,946)
Ending balance of accumulated gains in accumulated other comprehensive loss$6,340 $24,679 $41,424