Annual report pursuant to Section 13 and 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.22.2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
12 Months Ended
Jun. 30, 2022
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 and net investment hedging relationships recognized in OCI for the indicated periods were as follows:
Year Ended June 30,
(In thousands) 2022 2021 2020
Derivatives Designated as Cash Flow Hedging Instruments:
Rate lock agreements:
Amounts included in the assessment of effectiveness $ 82,969  $ —  $ — 
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 21,940  $ 3,897  $ (16,649)
Amounts excluded from the assessment of effectiveness $ 43  $ (115) $ (90)
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1)
$ 3,815  $ (191) $ — 
________________
(1)No amounts were reclassified from AOCI into earnings related to the sale of a subsidiary.
The locations and amounts of designated and non-designated derivatives’ gains and losses reported in the Consolidated Statements of Operations for the indicated periods were as follows:
(In thousands) Revenues Costs of Revenues and Operating Expense Interest Expense Other Expense (Income), Net
For the year ended June 30, 2020
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 5,806,424  $ 4,304,223  $ 160,274  $ 2,678 
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ (637) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 4,473  $ (1,377) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (387) $ —  $ —  $ — 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 1,990 
For the year ended June 30, 2021
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 6,918,734  $ 4,430,254  $ 157,328  $ (29,302)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ (1,116) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 920  $ 551  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (536) $ —  $ —  $ 1,216 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 670 
For the year ended June 30, 2022
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 9,211,883  $ 5,557,702  $ 160,339  $ 4,605 
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ (1,007) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 11,219  $ (3,762) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (531) $ —  $ —  $ 2,333 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ (10,665)
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 11 months as of June 30, 2022 and 10 months as of June 30, 2021, were as follows:
(In thousands) As of June 30, 2022 As of June 30, 2021
Cash flow hedge contracts - foreign currency
Purchase $ 124,641  $ 12,550 
Sell $ 176,259  $ 134,845 
Net Investment hedge contracts - foreign currency
Sell $ 66,436  $ 66,848 
Other foreign currency hedge contracts
Purchase $ 565,586  $ 264,292 
Sell $ 389,368  $ 278,635 
Schedule of Derivative Instruments, Fair Value
The locations and fair value of our derivatives reported in our Consolidated Balance Sheets as of the dates indicated below were as follows:
  Asset Derivatives Liability Derivatives
  Balance Sheet 
Location
As of June 30, 2022 As of June 30, 2021 Balance Sheet 
Location
As of June 30, 2022 As of June 30, 2021
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets 20,595  3,940  Other current liabilities 8,406  272 
Total derivatives designated as hedging instruments 20,595  3,940  8,406  272 
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 19,716  4,312  Other current liabilities 25,909  2,535 
Total derivatives not designated as hedging instruments 19,716  4,312  25,909  2,535 
Total derivatives $ 40,311  $ 8,252  $ 34,315  $ 2,807 
Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments
The changes in AOCI, before taxes, related to derivatives for the indicated periods were as follows:
Year Ended June 30,
(In thousands) 2022 2021 2020
Beginning balance $ (25,830) $ (29,602) $ (10,791)
Amount reclassified to earnings as net (gains) losses (5,919) 181  (2,072)
Net change in unrealized gains (losses) 108,767  3,591  (16,739)
Ending balance $ 77,018  $ (25,830) $ (29,602)
Offsetting of Derivative Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of June 30, 2022 Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets
(In thousands)
Gross Amounts of Derivatives
Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets
Net Amount of Derivatives Presented in the Consolidated Balance Sheets
Financial Instruments Cash Collateral Received Net Amount
Derivatives - assets $ 40,311  $ —  $ 40,311  $ (12,291) $ —  $ 28,020 
Derivatives - liabilities $ (34,315) $ —  $ (34,315) $ 12,291  $ —  $ (22,024)
As of June 30, 2021 Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets
(In thousands)
Gross Amounts of Derivatives
Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets
Net Amount of Derivatives Presented in the Consolidated Balance Sheets
Financial Instruments Cash Collateral Received Net Amount
Derivatives - assets $ 8,252  $ —  $ 8,252  $ (2,492) $ —  $ 5,760 
Derivatives - liabilities $ (2,807) $ —  $ (2,807) $ 2,492  $ —  $ (315)
Offsetting of Derivative Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of June 30, 2022 Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets
(In thousands)
Gross Amounts of Derivatives
Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets
Net Amount of Derivatives Presented in the Consolidated Balance Sheets
Financial Instruments Cash Collateral Received Net Amount
Derivatives - assets $ 40,311  $ —  $ 40,311  $ (12,291) $ —  $ 28,020 
Derivatives - liabilities $ (34,315) $ —  $ (34,315) $ 12,291  $ —  $ (22,024)
As of June 30, 2021 Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets
(In thousands)
Gross Amounts of Derivatives
Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets
Net Amount of Derivatives Presented in the Consolidated Balance Sheets
Financial Instruments Cash Collateral Received Net Amount
Derivatives - assets $ 8,252  $ —  $ 8,252  $ (2,492) $ —  $ 5,760 
Derivatives - liabilities $ (2,807) $ —  $ (2,807) $ 2,492  $ —  $ (315)