Annual report [Section 13 and 15(d), not S-K Item 405]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.26.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 12 Months Ended
Jun. 30, 2026
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) 2026 2025 2024
Derivatives Designated as Cash Flow Hedging Instruments:
Rate lock agreements:
Amounts included in the assessment of effectiveness $ —  $ —  $ 415 
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 34,281  $ 36,747  $ 9,176 
Amounts excluded from the assessment of effectiveness $ 102  $ (21) $ 146 
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1)
$ 19,053  $ (23,630) $ 3,459 
________________
(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 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, 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 reclassified from AOCI to earnings $ —  $ —  $ 3,764  $ — 
Foreign exchange contracts:
Amount of gains 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 recognized in earnings $ —  $ —  $ —  $ 10,597 
For the year ended June 30, 2025
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow hedges are recorded $ 12,156,162  $ 7,381,035  $ 302,166  $ (171,487)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains reclassified from AOCI to earnings $ —  $ —  $ 3,285  $ — 
Foreign exchange contracts:
Amount of gains reclassified from AOCI to earnings $ 8,950  $ 4,678  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (1,484) $ —  $ —  $ 2,984 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains recognized in earnings $ —  $ —  $ —  $ 37,588 
For the year ended June 30, 2026
Total amounts presented in the Consolidated Statements of Operations in which the effects of cash flow and fair value hedges are recorded $ 13,579,476  $ 7,918,696  $ 284,440  $ (229,585)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains reclassified from AOCI to earnings $ —  $ —  $ 3,034  $ — 
Foreign exchange contracts:
Amount of gains reclassified from AOCI to earnings $ 7,577  $ 42,964  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (751) $ —  $ —  $ 18,944 
Interest rate contracts:
Amount of gains recognized in earnings $ —  $ —  $ 559  $ — 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains recognized in earnings $ —  $ —  $ —  $ 24,135 
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, 2026 and 14 months as of June 30, 2025, were as follows:
(In thousands) As of June 30, 2026 As of June 30, 2025
Cash flow hedge contracts - foreign currency
Purchase $ 533,193  $ 405,349 
Sell $ 61,209  $ 159,475 
Net Investment hedge contracts - foreign currency
Sell $ 343,791  $ 384,130 
Other foreign currency hedge contracts
Purchase $ 978,174  $ 618,844 
Sell $ 608,933  $ 429,643 
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, 2026 As of June 30, 2025 Balance Sheet 
Location		 As of June 30, 2026 As of June 30, 2025
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 28,423  $ 29,492  Other current liabilities $ (5,385) $ (24,331)
Interest rate contracts Other current assets 2,534  — 
Interest rate contracts Other non-current assets 6,990  —  Other non-current liabilities (10,107) — 
Total derivatives designated as hedging instruments 37,947  29,492  (15,492) (24,331)
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 13,398  30,011  Other current liabilities (7,161) (4,284)
Total derivatives not designated as hedging instruments 13,398  30,011  (7,161) (4,284)
Total derivatives $ 51,345  $ 59,503  $ (22,653) $ (28,615)
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) 2026 2025 2024
Beginning balance $ 66,570  $ 68,903  $ 81,611 
Amount reclassified to earnings as net gains (52,824) (15,429) (25,904)
Net change in unrealized gains 53,436  13,096  13,196 
Ending balance $ 67,182  $ 66,570  $ 68,903 
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, 2026 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 $ 51,345  $ —  $ 51,345  $ (17,605) $ —  $ 33,740 
Derivatives - liabilities $ (22,653) $ —  $ (22,653) $ 17,605  $ —  $ (5,048)
As of June 30, 2025 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 $ 59,503  $ —  $ 59,503  $ (28,615) $ —  $ 30,888 
Derivatives - liabilities $ (28,615) $ —  $ (28,615) $ 28,615  $ —  $ — 
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, 2026 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 $ 51,345  $ —  $ 51,345  $ (17,605) $ —  $ 33,740 
Derivatives - liabilities $ (22,653) $ —  $ (22,653) $ 17,605  $ —  $ (5,048)
As of June 30, 2025 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 $ 59,503  $ —  $ 59,503  $ (28,615) $ —  $ 30,888 
Derivatives - liabilities $ (28,615) $ —  $ (28,615) $ 28,615  $ —  $ —