Quarterly report [Sections 13 or 15(d)]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.26.3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Sep. 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 other comprehensive income for the indicated periods were as follows:
Three Months Ended September 30,
(In thousands) 2026 2025
Derivatives Designated as Cash Flow Hedging Instruments:
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ (12,984) $ 3,300 
Amounts excluded from the assessment of effectiveness $ (30) $ 64 
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1):
$ (4,044) $ 19,325 
__________________
(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 September 30, Three Months Ended September 30,
2026 2025
(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 $ 4,136,015  $ 2,274,345  $ 67,927  $ (30,339) $ 3,209,696  $ 1,872,519  $ 71,075  $ (43,374)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains reclassified from AOCI to earnings $ —  $ —  $ 759  $ —  $ —  $ —  $ 758  $ — 
Foreign exchange contracts:
Amount of gains reclassified from AOCI to earnings $ 2,091  $ 3,473  $ —  $ —  $ 381  $ 11,244  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (175) $ —  $ —  $ 2,509  $ (171) $ —  $ —  $ 3,823 
Interest rate contracts:
Amount of gains recognized in earnings $ —  $ —  $ 2,188  $ —  $ —  $ —  $ —  $ — 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ (10,806) $ —  $ —  $ —  $ 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 22 months as of the dates indicated below, were as follows:
As of As of
(In thousands) September 30, 2026 June 30, 2026
Cash flow hedge contracts - foreign currency
Purchase $ 574,633  $ 533,193 
Sell $ 107,026  $ 61,209 
Net investment hedge contracts - foreign currency
Sell $ 341,625  $ 343,791 
Other foreign currency hedge contracts
Purchase $ 822,018  $ 978,174 
Sell $ 517,417  $ 608,933 
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 September 30, 2026 June 30, 2026 Location September 30, 2026 June 30, 2026
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 7,696  $ 28,423  Other current liabilities $ (12,860) $ (5,385)
Interest rate contracts Other current assets —  2,534  Other current liabilities (3,443) — 
Interest rate contracts Other non-current assets —  6,990  Other non-current liabilities (162,201) (10,107)
Total derivatives designated as hedging instruments 7,696  37,947  (178,504) (15,492)
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 3,854  13,398  Other current liabilities (12,338) (7,161)
Total derivatives not designated as hedging instruments 3,854  13,398  (12,338) (7,161)
Total derivatives $ 11,550  $ 51,345  $ (190,842) $ (22,653)
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 September 30,
(In thousands) 2026 2025
Beginning AOCI $ 67,182  $ 66,570 
Amount reclassified to earnings as net gains (6,148) (12,212)
Net change in unrealized gains (losses) (17,058) 22,689 
Ending AOCI $ 43,976  $ 77,047 
Schedule of Offsetting Derivative Assets The information related to the offsetting arrangements for the periods indicated was as follows:
As of September 30, 2026 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 $ 11,550  $ —  $ 11,550  $ (9,893) $ —  $ 1,657 
Derivatives - liabilities $ (190,842) $ —  $ (190,842) $ 9,893  $ —  $ (180,949)
As of June 30, 2026 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 $ 51,345  $ —  $ 51,345  $ (17,605) $ —  $ 33,740 
Derivatives - liabilities $ (22,653) $ —  $ (22,653) $ 17,605  $ —  $ (5,048)
Schedule of Offsetting Derivative Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of September 30, 2026 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 $ 11,550  $ —  $ 11,550  $ (9,893) $ —  $ 1,657 
Derivatives - liabilities $ (190,842) $ —  $ (190,842) $ 9,893  $ —  $ (180,949)
As of June 30, 2026 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 $ 51,345  $ —  $ 51,345  $ (17,605) $ —  $ 33,740 
Derivatives - liabilities $ (22,653) $ —  $ (22,653) $ 17,605  $ —  $ (5,048)