Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
Mar. 31, 2019 |
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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 gains (losses) on derivatives in cash flow hedging relationships recognized in OCI for the indicated periods were as follows:
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Three months ended |
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Nine months ended |
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March 31, |
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March 31, |
(In thousands) |
2019 |
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2018 |
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2019 |
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2018 |
Derivatives Designated as Hedging Instruments: |
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Rate lock agreements: |
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Amounts included in the assessment of effectiveness |
$ |
(3,252 |
) |
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$ |
— |
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$ |
(8,649 |
) |
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$ |
— |
|
Foreign exchange contracts: |
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Amounts included in the assessment of effectiveness |
$ |
1,925 |
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|
$ |
(581 |
) |
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$ |
2,163 |
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|
$ |
560 |
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Amounts excluded from the assessment of effectiveness |
$ |
(53 |
) |
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$ |
— |
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$ |
(82 |
) |
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$ |
— |
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The locations and amounts of designated and non-designated derivative’s gains and losses reported in the condensed consolidated statements of operations for the indicated periods were as follows:
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Three months ended March 31, |
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Three months ended March 31, |
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2019 |
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2018 |
(In thousands) |
Revenue |
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Cost of revenues |
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Interest expense |
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Other expense (income), net |
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Revenue |
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Cost of revenues |
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Interest expense |
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Other expense (income), net |
Total amounts presented in the condensed consolidated statement of operations in which the effects of cash flow hedges are recorded |
$ |
1,097,311 |
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$ |
486,945 |
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$ |
31,187 |
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$ |
(9,282 |
) |
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$ |
1,021,294 |
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$ |
368,356 |
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$ |
28,119 |
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$ |
(7,640 |
) |
Gains (losses) on Derivatives Designated as Hedging Instruments: |
Rate lock agreements: |
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Amount of gains (losses) reclassified from accumulated OCI to earnings |
$ |
— |
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$ |
— |
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$ |
150 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Amount of gains (losses) reclassified from accumulated OCI to earnings as a result that a forecasted transaction is no longer probable of occurring |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Foreign exchange contracts: |
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Amount of gains (losses) reclassified from accumulated OCI to earnings |
$ |
655 |
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$ |
(17 |
) |
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$ |
— |
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$ |
158 |
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$ |
(65 |
) |
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$ |
570 |
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$ |
189 |
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$ |
— |
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Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Amount excluded from the assessment of effectiveness |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
(121 |
) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(374 |
) |
Gains (losses) on Derivatives Not Designated as Hedging Instruments: |
Amount of gains (losses) recognized in earnings |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
513 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(7,484 |
) |
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Nine months ended March 31, |
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Nine months ended March 31, |
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2019 |
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2018 |
(In thousands) |
Revenue |
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Cost of revenues |
|
Interest expense |
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Other income (expense), net |
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Revenue |
|
Cost of revenues |
|
Interest expense |
|
Other income (expense), net |
Total amounts presented in the condensed consolidated statement of operations in which the effects of cash flow hedges are recorded |
$ |
3,310,469 |
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$ |
1,276,592 |
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$ |
84,087 |
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$ |
(28,535 |
) |
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$ |
2,966,697 |
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$ |
1,068,475 |
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$ |
86,067 |
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$ |
(19,847 |
) |
Gains (losses) on Derivatives Designated as Hedging Instruments: |
Rate lock agreements: |
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Amount of gains (losses) reclassified from accumulated OCI to earnings |
$ |
— |
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$ |
— |
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$ |
527 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Amount of gains (losses) reclassified from accumulated OCI to earnings as a result that a forecasted transaction is no longer probable of occurring |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Foreign exchange contracts: |
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Amount of gains (losses) reclassified from accumulated OCI to earnings |
$ |
3,343 |
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$ |
(309 |
) |
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$ |
— |
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$ |
158 |
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$ |
1,300 |
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$ |
1,908 |
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$ |
567 |
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$ |
— |
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Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach |
$ |
80 |
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$ |
(8 |
) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Amount excluded from the assessment of effectiveness |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
(208 |
) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(603 |
) |
Gains (losses) on Derivatives Not Designated as Hedging Instruments: |
Amount of gains (losses) recognized in earnings |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
576 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
(3,808 |
) |
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| Schedule of Notional Amounts of Derivatives Outstanding |
The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts, with maximum remaining maturities of approximately ten months as of March 31, 2019 and June 30, 2018, were as follows:
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(In thousands) |
As of
March 31, 2019 |
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As of
June 30, 2018 |
Cash flow hedge contracts - foreign currency |
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Purchase |
$ |
66,713 |
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$ |
8,116 |
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Sell |
$ |
164,955 |
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$ |
115,032 |
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Other foreign currency hedge contracts |
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Purchase |
$ |
231,765 |
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$ |
130,442 |
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Sell |
$ |
289,502 |
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$ |
154,442 |
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| Schedule of Derivative Instruments, Fair Value |
The locations and fair value of our derivatives reported in our 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
March 31, 2019 |
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As of
June 30, 2018 |
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Balance Sheet
Location
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As of
March 31, 2019 |
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As of
June 30, 2018 |
(In thousands) |
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Fair Value |
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Fair Value |
Derivatives designated as hedging instruments |
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Rate lock contracts |
Other current assets |
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$ |
— |
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$ |
219 |
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Other current liabilities |
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$ |
— |
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$ |
5,158 |
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Foreign exchange contracts |
Other current assets |
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1,957 |
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3,259 |
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Other current liabilities |
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254 |
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312 |
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Total derivatives designated as hedging instruments |
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1,957 |
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3,478 |
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254 |
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5,470 |
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Derivatives not designated as hedging instruments |
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Foreign exchange contracts |
Other current assets |
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2,289 |
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1,907 |
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Other current liabilities |
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1,562 |
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1,358 |
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Total derivatives not designated as hedging instruments |
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2,289 |
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1,907 |
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1,562 |
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1,358 |
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Total derivatives |
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$ |
4,246 |
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$ |
5,385 |
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$ |
1,816 |
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$ |
6,828 |
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| Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments |
The changes in OCI, before taxes, related to derivatives for the indicated periods were as follows:
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Three months ended
March 31, |
|
Nine months ended
March 31, |
(In thousands) |
2019 |
|
2018 |
|
2019 |
|
2018 |
Beginning balance |
$ |
(5,615 |
) |
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$ |
6,186 |
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$ |
2,346 |
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$ |
8,126 |
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Amount reclassified to earnings |
(946 |
) |
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(694 |
) |
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(3,719 |
) |
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(3,775 |
) |
Net change in unrealized gains or losses |
(1,379 |
) |
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(581 |
) |
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(6,567 |
) |
|
560 |
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Ending balance |
$ |
(7,940 |
) |
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$ |
4,911 |
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$ |
(7,940 |
) |
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$ |
4,911 |
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| Offsetting of Assets and Liabilities |
The information related to the offsetting arrangements for the periods indicated was as follows (in thousands):
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As of March 31, 2019 |
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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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$ |
4,246 |
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$ |
— |
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$ |
4,246 |
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$ |
(1,209 |
) |
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$ |
— |
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$ |
3,037 |
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Derivatives - Liabilities |
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$ |
(1,816 |
) |
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$ |
— |
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$ |
(1,816 |
) |
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$ |
1,209 |
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|
$ |
— |
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$ |
(607 |
) |
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As of June 30, 2018 |
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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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$ |
5,385 |
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|
$ |
— |
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$ |
5,385 |
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$ |
(1,888 |
) |
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$ |
— |
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$ |
3,497 |
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Derivatives - Liabilities |
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$ |
(6,828 |
) |
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$ |
— |
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|
$ |
(6,828 |
) |
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$ |
1,888 |
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|
$ |
— |
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|
$ |
(4,940 |
) |
|