Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.23.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 9 Months Ended
Mar. 31, 2023
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 March 31, Nine Months Ended March 31,
(In thousands) 2023 2022 2023 2022
Derivatives Designated as Cash Flow Hedging Instruments:
Rate lock agreements:
Amounts included in the assessment of effectiveness $ —  $ 10,069  $ —  $ 10,069 
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 6,008  $ 7,733  $ 16,720  $ 15,335 
Amounts excluded from the assessment of effectiveness $ 652  $ (25) $ (53) $ (34)
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1):
$ 154  $ 1,850  $ 1,986  $ 1,386 
    __________________ 
(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.
The locations and amounts of designated and non-designated derivatives’ gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows:
Three Months Ended March 31, Three Months Ended March 31,
2023 2022
(In thousands) Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenues Costs 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 $ 2,432,608  $ 1,572,015  $ 74,774  $ (14,864) $ 2,288,676  $ 1,393,769  $ 39,978  $ 8,644 
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 936  $ —  $ —  $ —  $ (279) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 1,748  $ 467  $ —  $ —  $ 1,711  $ (329) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (327) $ —  $ —  $ 765  $ (111) $ —  $ —  $ 568 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ (9,066) $ —  $ —  $ —  $ (2,802)
Nine Months Ended March 31, Nine Months Ended March 31,
2023 2022
(In thousands) Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenues Costs 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 $ 8,140,919  $ 4,970,444  $ 223,449  $ (79,944) $ 6,725,144  $ 4,045,479  $ 116,142  $ 23,985 
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 2,810  $ —  $ —  $ —  $ (837) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 33,024  $ (8,804) $ —  $ —  $ 5,197  $ (909) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (1,070) $ —  $ —  $ 1,675  $ (329) $ —  $ —  $ 1,883 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ (2,773) $ —  $ —  $ —  $ 4,261 
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 14 months as of the dates indicated below, were as follows:
As of As of
(In thousands) March 31, 2023 June 30, 2022
Cash flow hedge contracts - foreign currency
Purchase $ 192,875  $ 124,641 
Sell $ 146,207  $ 176,259 
Net investment hedge contracts - foreign currency
Sell $ 87,157  $ 66,436 
Other foreign currency hedge contracts
Purchase $ 572,609  $ 565,586 
Sell $ 296,379  $ 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 March 31, 2023 June 30, 2022 Location March 31, 2023 June 30, 2022
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 15,192  $ 20,595  Other current liabilities $ (1,504) $ 8,406 
Total derivatives designated as hedging instruments 15,192  20,595  (1,504) 8,406 
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 5,099  19,716  Other current liabilities (11,692) 25,909 
Total derivatives not designated as hedging instruments 5,099  19,716  (11,692) 25,909 
Total derivatives $ 20,291  $ 40,311  $ (13,196) $ 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 March 31, Nine Months Ended March 31,
(In thousands) 2023 2022 2023 2022
Beginning AOCI $ 65,721  $ (20,831) $ 77,018  $ (25,830)
Amount reclassified to earnings as net (gains) losses (2,824) (992) (25,960) (3,122)
Net change in unrealized gains (losses) 6,814  19,627  18,653  26,756 
Ending AOCI $ 69,711  $ (2,196) $ 69,711  $ (2,196)
Schedule of Offsetting Derivative Assets The information related to the offsetting arrangements for the periods indicated was as follows:
As of March 31, 2023 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 $ 20,291  $ —  $ 20,291  $ (10,113) $ —  $ 10,178 
Derivatives - liabilities $ (13,196) $ —  $ (13,196) $ 10,113  $ —  $ (3,083)
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 March 31, 2023 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 $ 20,291  $ —  $ 20,291  $ (10,113) $ —  $ 10,178 
Derivatives - liabilities $ (13,196) $ —  $ (13,196) $ 10,113  $ —  $ (3,083)
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)