Derivative Instruments and Hedging Activities (Tables)
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3 Months Ended |
Sep. 30, 2015 |
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| Derivative Instruments and Hedging Activities Disclosure [Abstract] |
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| Schedule of Derivative Instruments, Location, Designated and Non-Designated, Gains (Losses) |
The locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the condensed consolidated financial statements for the indicated periods were as follows:
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Three months ended
September 30, |
(In thousands) |
Location in Financial Statements |
2015 |
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2014 |
Derivatives Designated as Hedging Instruments |
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Gains (losses) in accumulated OCI on derivatives (effective portion) |
Accumulated OCI |
$ |
(1,861 |
) |
|
$ |
2,033 |
|
Gains reclassified from accumulated OCI into income (effective portion): |
Revenues |
$ |
685 |
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|
$ |
269 |
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Costs of revenues |
(472 |
) |
|
(41 |
) |
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Interest expense |
189 |
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|
— |
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Net gains reclassified from accumulated OCI into income (effective portion) |
$ |
402 |
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$ |
228 |
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Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
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Other expense (income), net |
$ |
(126 |
) |
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$ |
43 |
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Derivatives Not Designated as Hedging Instruments |
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Gains (losses) recognized in income |
Other expense (income), net |
$ |
(6,382 |
) |
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$ |
3,925 |
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| Schedule of Notional Amounts of Derivatives Outstanding |
The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum maturity of approximately 13 months, as of the dates indicated below was as follows:
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(In thousands) |
As of
September 30, 2015 |
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As of
June 30, 2015 |
Cash flow hedge contracts |
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Purchase |
$ |
23,941 |
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|
$ |
32,775 |
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Sell |
$ |
119,843 |
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$ |
88,800 |
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Other foreign currency hedge contracts |
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Purchase |
$ |
120,739 |
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$ |
64,012 |
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Sell |
$ |
119,869 |
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$ |
123,091 |
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| Schedule of Derivative Instruments, Fair Value |
The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed Consolidated Balance Sheets as of the dates indicated below were as follows:
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Asset Derivatives |
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Liability Derivatives |
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Balance Sheet Location |
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As of
September 30, 2015 |
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As of
June 30, 2015 |
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Balance Sheet Location |
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As of
September 30, 2015 |
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As of
June 30, 2015 |
(In thousands) |
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Fair Value |
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Fair Value |
Derivatives designated as hedging instruments |
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Foreign exchange contracts |
Other current assets |
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$ |
478 |
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$ |
1,722 |
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Other current liabilities |
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$ |
2,869 |
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$ |
1,920 |
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Total derivatives designated as hedging instruments |
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$ |
478 |
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$ |
1,722 |
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$ |
2,869 |
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$ |
1,920 |
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Derivatives not designated as hedging instruments |
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Foreign exchange contracts |
Other current assets |
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$ |
704 |
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$ |
1,342 |
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Other current liabilities |
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$ |
2,643 |
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$ |
1,186 |
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Total derivatives not designated as hedging instruments |
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$ |
704 |
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$ |
1,342 |
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$ |
2,643 |
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$ |
1,186 |
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Total derivatives |
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$ |
1,182 |
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$ |
3,064 |
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$ |
5,512 |
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$ |
3,106 |
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| Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments |
The following table provides the balances and changes in accumulated OCI, before taxes, related to derivative instruments for the indicated periods:
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Three months ended
September 30, |
(In thousands) |
2015 |
|
2014 |
Beginning balance |
$ |
7,110 |
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|
$ |
(20 |
) |
Amount reclassified to income |
(402 |
) |
|
(228 |
) |
Net change in unrealized gains or losses |
(1,861 |
) |
|
2,033 |
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Ending balance |
$ |
4,847 |
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|
$ |
1,785 |
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| Offsetting of Assets and Liabilities |
As of September 30, 2015 and June 30, 2015, information related to the offsetting arrangements was as follows (in thousands):
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As of September 30, 2015 |
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Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |
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Description |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
Derivatives - Assets |
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$ |
1,182 |
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|
$ |
— |
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$ |
1,182 |
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$ |
(1,182 |
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$ |
— |
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$ |
— |
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Derivatives - Liabilities |
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$ |
(5,512 |
) |
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$ |
— |
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$ |
(5,512 |
) |
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$ |
1,182 |
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$ |
— |
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$ |
(4,330 |
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As of June 30, 2015 |
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Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |
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Description |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets |
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Financial Instruments |
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Cash Collateral Received |
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Net Amount |
Derivatives - Assets |
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$ |
3,064 |
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|
$ |
— |
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$ |
3,064 |
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$ |
(2,809 |
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$ |
— |
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$ |
255 |
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Derivatives - Liabilities |
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$ |
(3,106 |
) |
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$ |
— |
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$ |
(3,106 |
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$ |
2,809 |
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$ |
— |
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$ |
(297 |
) |
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