Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.20.4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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:
Three Months Ended Six Months Ended
December 31, December 31,
(In thousands) 2020 2019 2020 2019
Derivatives Designated as Hedging Instruments:
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ (1,310) $ 2,305  $ (2,182) 1,565 
Amounts excluded from the assessment of effectiveness $ (47) $ (15) $ (93) $ (17)
    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:
Three Months Ended December 31, Three Months Ended December 31,
2020 2019
(In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net
Total amounts presented in the Condensed Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 1,650,870  $ 1,080,706  $ 38,880  $ 3,882  $ 1,509,453  $ 1,046,622  $ 40,472  $ (2,568)
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ —  $ —  $ (279) $ —  $ —  $ —  $ (100) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ (560) $ (125) $ —  $ —  $ 85  $ (17) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach $ (151) $ —  $ —  $ —  $ (93) $ —  $ —  $ — 
Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 2,661  $ —  $ —  $ —  $ 2,056 
Six Months Ended December 31, Six Months Ended December 31,
2020 2019
(In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net
Total amounts presented in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded $ 3,189,490  $ 2,092,937  $ 78,266  $ 7,079  $ 2,922,867  $ 2,049,788  $ 80,822  $ (4,186)
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ —  $ —  $ (558) $ —  $ —  $ —  $ (199) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ (650) $ 425  $ —  $ —  $ 560  $ (1,818) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach $ (278) $ —  $ —  $ —  $ (195) $ —  $ —  $ — 
Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ (2,937) $ —  $ —  $ —  $ 4,381 
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 thirteen months as of the dates indicated below were as follows:
As of As of
(In thousands) December 31, 2020 June 30, 2020
Cash flow hedge contracts - foreign currency
Purchase $ 8,344  $ 10,705 
Sell $ 95,706  $ 71,431 
Other foreign currency hedge contracts
Purchase $ 311,397  $ 329,310 
Sell $ 321,076  $ 357,939 
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: 
  Asset Derivatives Liability Derivatives
Balance Sheet As of As of Balance Sheet As of As of
  Location December 31, 2020 June 30, 2020 Location December 31, 2020 June 30, 2020
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 311  $ 680  Other current liabilities $ 981  $ 45 
Total derivatives designated as hedging instruments 311  680  981  45 
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 2,349  1,397  Other current liabilities 2,860  1,365 
Total derivatives not designated as hedging instruments 2,349  1,397  2,860  1,365 
Total derivatives $ 2,660  $ 2,077  $ 3,841  $ 1,410 
Schedule of 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:
Three Months Ended Six Months Ended
December 31, December 31,
(In thousands) 2020 2019 2020 2019
Beginning balance $ (30,574) $ (10,006) $ (29,602) $ (10,791)
Amount reclassified to earnings 1,115  125  1,061  1,652 
Net change in unrealized gains or losses (1,357) 2,290  (2,275) 1,548 
Ending balance $ (30,816) $ (7,591) $ (30,816) $ (7,591)
Schedule of Offsetting of Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows (in thousands):
As of December 31, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
Description
Gross Amounts of Derivatives
Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets
Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets
 Financial Instruments Cash Collateral Received Net Amount
Derivatives - Assets $ 2,660  $ —  $ 2,660  $ (1,527) $ —  $ 1,133 
Derivatives - Liabilities $ (3,841) $ —  $ (3,841) $ 1,527  $ —  $ (2,314)
As of June 30, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
Description
Gross Amounts of Derivatives
Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets
Net Amount of Derivatives Presented in the Condensed Consolidated Balance Sheets
 Financial Instruments Cash Collateral Received Net Amount
Derivatives - Assets $ 2,077  $ —  $ 2,077  $ (1,020) $ —  $ 1,057 
Derivatives - Liabilities $ (1,410) $ —  $ (1,410) $ 1,020  $ —  $ (390)