Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.22.4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Dec. 31, 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 other comprehensive income for the indicated periods were as follows:
Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2022 2021 2022 2021
Derivatives Designated as Cash Flow Hedging Instruments:
Rate lock agreements:
Amounts included in the assessment of effectiveness $ (937) $ —  $ —  $ — 
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 9,896  $ 6,749  $ 10,712  $ 7,602 
Amounts excluded from the assessment of effectiveness $ (720) $ (8) $ (705) $ (9)
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1):
$ (1,847) $ (293) $ 1,832  $ 357 
    __________________ 
(1)No amounts were reclassified from AOCI into earnings related to the sale of a subsidiary, as there were no such sales during the periods presented.
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 12 months as of the dates indicated below, were as follows:
As of As of
(In thousands) December 31, 2022 June 30, 2022
Cash flow hedge contracts - foreign currency
Purchase $ 196,825  $ 124,641 
Sell $ 156,841  $ 176,259 
Net investment hedge contracts - foreign currency
Sell $ 66,436  $ 66,436 
Other foreign currency hedge contracts
Purchase $ 517,063  $ 565,586 
Sell $ 371,668  $ 389,368 
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, 2022 June 30, 2022 Location December 31, 2022 June 30, 2022
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 17,957  $ 20,595  Other current liabilities $ (6,313) $ 8,406 
Total derivatives designated as hedging instruments 17,957  20,595  (6,313) 8,406 
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 1,517  19,716  Other current liabilities (20,599) 25,909 
Total derivatives not designated as hedging instruments 1,517  19,716  (20,599) 25,909 
Total derivatives $ 19,474  $ 40,311  $ (26,912) $ 34,315 
Schedule of 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:
Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2022 2021 2022 2021
Beginning AOCI $ 72,290  $ (25,546) $ 77,018  $ (25,830)
Amount reclassified to earnings as net (gains) losses (12,961) (912) (23,136) (2,130)
Net change in unrealized gains (losses) 6,392  5,627  11,839  7,129 
Ending AOCI $ 65,721  $ (20,831) $ 65,721  $ (20,831)
Schedule of Offsetting Derivative Assets The information related to the offsetting arrangements for the periods indicated was as follows:
As of December 31, 2022 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 19,474  $ —  $ 19,474  $ (19,474) $ —  $ — 
Derivatives - liabilities $ (26,912) $ —  $ (26,912) $ 19,474  $ —  $ (7,438)
As of June 30, 2022 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 40,311  $ —  $ 40,311  $ (12,291) $ —  $ 28,020 
Derivatives - liabilities $ (34,315) $ —  $ (34,315) $ 12,291  $ —  $ (22,024)
Schedule of Offsetting Derivative Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of December 31, 2022 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 19,474  $ —  $ 19,474  $ (19,474) $ —  $ — 
Derivatives - liabilities $ (26,912) $ —  $ (26,912) $ 19,474  $ —  $ (7,438)
As of June 30, 2022 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 40,311  $ —  $ 40,311  $ (12,291) $ —  $ 28,020 
Derivatives - liabilities $ (34,315) $ —  $ (34,315) $ 12,291  $ —  $ (22,024)