Annual report pursuant to Section 13 and 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
12 Months Ended
Jun. 30, 2024
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) 2024 2023 2022
Derivatives Designated as Cash Flow Hedging Instruments:
Rate lock agreements:
Amounts included in the assessment of effectiveness $ 415  $ —  $ 82,969 
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 9,176  $ 30,153  $ 21,940 
Amounts excluded from the assessment of effectiveness $ 146  $ (128) $ 43 
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1)
$ 3,459  $ 3,626  $ 3,815 
________________
(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, 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)
For the year ended June 30, 2023
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 10,496,056  $ 6,501,360  $ 296,940  $ (104,720)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 3,747  $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 33,243  $ (6,526) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (1,406) $ —  $ —  $ 2,598 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ (2,062)
For the year ended June 30, 2024
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 9,812,247  $ 6,466,037  $ 311,253  $ (155,075)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 3,764  $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 19,246  $ 3,766  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (872) $ —  $ —  $ 2,328 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 10,597 
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 June 30, 2024 and 11 months as of June 30, 2023, were as follows:
(In thousands) As of June 30, 2024 As of June 30, 2023
Cash flow hedge contracts - foreign currency
Purchase $ 426,839  $ 218,315 
Sell $ 76,342  $ 123,951 
Net Investment hedge contracts - foreign currency
Sell $ 273,952  $ 87,157 
Other foreign currency hedge contracts
Purchase $ 589,171  $ 527,349 
Sell $ 411,635  $ 204,902 
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, 2024 As of June 30, 2023 Balance Sheet 
Location
As of June 30, 2024 As of June 30, 2023
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 13,783  $ 24,498  Other current liabilities $ (8,066) $ (442)
Total derivatives designated as hedging instruments 13,783  24,498  (8,066) (442)
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 22,720  11,214  Other current liabilities (7,617) (11,664)
Total derivatives not designated as hedging instruments 22,720  11,214  (7,617) (11,664)
Total derivatives $ 36,503  $ 35,712  $ (15,683) $ (12,106)
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:
Year Ended June 30,
(In thousands) 2024 2023 2022
Beginning balance $ 81,611  $ 77,018  $ (25,830)
Amount reclassified to earnings as net gains (25,904) (29,058) (5,919)
Net change in unrealized gains 13,196  33,651  108,767 
Ending balance $ 68,903  $ 81,611  $ 77,018 
Schedule of Offsetting of Derivative Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of June 30, 2024 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 $ 36,503  $ —  $ 36,503  $ (15,173) $ —  $ 21,330 
Derivatives - liabilities $ (15,683) $ —  $ (15,683) $ 15,173  $ —  $ (510)
As of June 30, 2023 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 $ 35,712  $ —  $ 35,712  $ (8,968) $ —  $ 26,744 
Derivatives - liabilities $ (12,106) $ —  $ (12,106) $ 8,968  $ —  $ (3,138)
Schedule of Offsetting of Derivative Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of June 30, 2024 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 $ 36,503  $ —  $ 36,503  $ (15,173) $ —  $ 21,330 
Derivatives - liabilities $ (15,683) $ —  $ (15,683) $ 15,173  $ —  $ (510)
As of June 30, 2023 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 $ 35,712  $ —  $ 35,712  $ (8,968) $ —  $ 26,744 
Derivatives - liabilities $ (12,106) $ —  $ (12,106) $ 8,968  $ —  $ (3,138)