DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
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12 Months Ended |
Jun. 30, 2023 |
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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 and net investment hedging relationships recognized in OCI for the indicated periods were as follows:
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Year Ended June 30, |
| (In thousands) |
2023 |
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2022 |
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2021 |
| Derivatives Designated as Cash Flow Hedging Instruments: |
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| Rate lock agreements: |
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| Amounts included in the assessment of effectiveness |
$ |
— |
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$ |
82,969 |
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$ |
— |
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| Foreign exchange contracts: |
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| Amounts included in the assessment of effectiveness |
$ |
30,153 |
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$ |
21,940 |
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$ |
3,897 |
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| Amounts excluded from the assessment of effectiveness |
$ |
(128) |
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$ |
43 |
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$ |
(115) |
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| Derivatives Designated as Net Investment Hedging Instruments: |
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Foreign exchange contracts(1)
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$ |
3,626 |
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$ |
3,815 |
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$ |
(191) |
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________________
(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:
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| (In thousands) |
Revenues |
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Costs of Revenues and Operating Expense |
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Interest Expense |
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Other Expense (Income), Net |
For the year ended June 30, 2021 |
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| Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |
$ |
6,918,734 |
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$ |
4,430,254 |
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$ |
157,328 |
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$ |
(29,302) |
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| Gains (Losses) on Derivatives Designated as Hedging Instruments: |
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| Rate lock agreements: |
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| Amount of gains (losses) reclassified from AOCI to earnings |
$ |
— |
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$ |
— |
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$ |
(1,116) |
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$ |
— |
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| Foreign exchange contracts: |
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| Amount of gains (losses) reclassified from AOCI to earnings |
$ |
920 |
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$ |
551 |
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$ |
— |
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$ |
— |
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| Amount excluded from the assessment of effectiveness recognized in earnings |
$ |
(536) |
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$ |
— |
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$ |
— |
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$ |
1,216 |
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| Gains (Losses) on Derivatives Not Designated as Hedging Instruments: |
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| Amount of gains (losses) recognized in earnings |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
670 |
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For the year ended June 30, 2022 |
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| Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |
$ |
9,211,883 |
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$ |
5,557,702 |
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$ |
160,339 |
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$ |
4,605 |
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| Gains (Losses) on Derivatives Designated as Hedging Instruments: |
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| Rate lock agreements: |
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| Amount of gains (losses) reclassified from AOCI to earnings |
$ |
— |
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$ |
— |
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$ |
(1,007) |
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$ |
— |
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| Foreign exchange contracts: |
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| Amount of gains (losses) reclassified from AOCI to earnings |
$ |
11,219 |
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$ |
(3,762) |
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$ |
— |
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$ |
— |
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| Amount excluded from the assessment of effectiveness recognized in earnings |
$ |
(531) |
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$ |
— |
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$ |
— |
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$ |
2,333 |
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| Gains (Losses) on Derivatives Not Designated as Hedging Instruments: |
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| Amount of gains (losses) recognized in earnings |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
(10,665) |
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For the year ended June 30, 2023 |
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| Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded |
$ |
10,496,056 |
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$ |
6,501,360 |
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$ |
296,940 |
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$ |
(104,720) |
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| Gains (Losses) on Derivatives Designated as Hedging Instruments: |
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| Rate lock agreements: |
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| Amount of gains (losses) reclassified from AOCI to earnings |
$ |
— |
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$ |
— |
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$ |
3,747 |
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$ |
— |
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| Foreign exchange contracts: |
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| Amount of gains (losses) reclassified from AOCI to earnings |
$ |
33,243 |
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$ |
(6,526) |
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$ |
— |
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$ |
— |
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| Amount excluded from the assessment of effectiveness recognized in earnings |
$ |
(1,406) |
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$ |
— |
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$ |
— |
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$ |
2,598 |
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| Gains (Losses) on Derivatives Not Designated as Hedging Instruments: |
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| Amount of gains (losses) recognized in earnings |
$ |
— |
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$ |
— |
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$ |
— |
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$ |
(2,062) |
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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 11 months as of June 30, 2023 and 11 months as of June 30, 2022, were as follows:
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| (In thousands) |
As of June 30, 2023 |
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As of June 30, 2022 |
| Cash flow hedge contracts - foreign currency |
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| Purchase |
$ |
218,315 |
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$ |
124,641 |
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| Sell |
$ |
123,951 |
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$ |
176,259 |
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| Net Investment hedge contracts - foreign currency |
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| Sell |
$ |
87,157 |
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$ |
66,436 |
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| Other foreign currency hedge contracts |
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| Purchase |
$ |
527,349 |
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$ |
565,586 |
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| Sell |
$ |
204,902 |
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$ |
389,368 |
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| 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:
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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 June 30, 2023 |
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As of June 30, 2022 |
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Balance Sheet
Location |
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As of June 30, 2023 |
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As of June 30, 2022 |
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| (In thousands) |
Fair Value |
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Fair Value |
| Derivatives designated as hedging instruments |
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| Foreign exchange contracts |
Other current assets |
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$ |
24,498 |
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$ |
20,595 |
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Other current liabilities |
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$ |
(442) |
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$ |
(8,406) |
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| Total derivatives designated as hedging instruments |
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24,498 |
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20,595 |
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(442) |
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(8,406) |
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| Derivatives not designated as hedging instruments |
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| Foreign exchange contracts |
Other current assets |
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11,214 |
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19,716 |
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Other current liabilities |
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(11,664) |
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(25,909) |
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| Total derivatives not designated as hedging instruments |
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11,214 |
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19,716 |
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(11,664) |
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(25,909) |
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| Total derivatives |
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$ |
35,712 |
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$ |
40,311 |
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$ |
(12,106) |
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$ |
(34,315) |
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| 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:
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Year Ended June 30, |
| (In thousands) |
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2023 |
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2022 |
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2021 |
| Beginning balance |
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$ |
77,018 |
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$ |
(25,830) |
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$ |
(29,602) |
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| Amount reclassified to earnings as net (gains) losses |
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(29,058) |
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(5,919) |
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181 |
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| Net change in unrealized gains (losses) |
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33,651 |
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108,767 |
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3,591 |
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| Ending balance |
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$ |
81,611 |
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$ |
77,018 |
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$ |
(25,830) |
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| Offsetting of Derivative Assets and Liabilities |
The information related to the offsetting arrangements for the periods indicated was as follows:
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| As of June 30, 2023 |
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Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets |
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| (In thousands) |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the 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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$ |
35,712 |
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$ |
— |
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$ |
35,712 |
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$ |
(8,968) |
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$ |
— |
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$ |
26,744 |
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| Derivatives - liabilities |
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$ |
(12,106) |
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$ |
— |
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$ |
(12,106) |
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$ |
8,968 |
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$ |
— |
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$ |
(3,138) |
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| As of June 30, 2022 |
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Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets |
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| (In thousands) |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the 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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$ |
40,311 |
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$ |
— |
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$ |
40,311 |
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$ |
(12,291) |
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$ |
— |
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$ |
28,020 |
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| Derivatives - liabilities |
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$ |
(34,315) |
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$ |
— |
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$ |
(34,315) |
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$ |
12,291 |
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$ |
— |
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$ |
(22,024) |
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| Offsetting of Derivative Assets and Liabilities |
The information related to the offsetting arrangements for the periods indicated was as follows:
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| As of June 30, 2023 |
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Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets |
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| (In thousands) |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the 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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$ |
35,712 |
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$ |
— |
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$ |
35,712 |
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$ |
(8,968) |
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$ |
— |
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$ |
26,744 |
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| Derivatives - liabilities |
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$ |
(12,106) |
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$ |
— |
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$ |
(12,106) |
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$ |
8,968 |
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$ |
— |
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$ |
(3,138) |
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| As of June 30, 2022 |
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Gross Amounts of Derivatives Not Offset in the Consolidated Balance Sheets |
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| (In thousands) |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the 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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$ |
40,311 |
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$ |
— |
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$ |
40,311 |
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$ |
(12,291) |
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$ |
— |
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$ |
28,020 |
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| Derivatives - liabilities |
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$ |
(34,315) |
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$ |
— |
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$ |
(34,315) |
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$ |
12,291 |
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$ |
— |
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$ |
(22,024) |
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