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Derivative Instruments and Hedging Activities (Tables)
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6 Months Ended |
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Dec. 31, 2014
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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 locations and amounts of designated and non-designated derivative instruments’ gains and losses reported in the condensed consolidated financial statements for the indicated periods were as follows:
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Three months ended
December 31, |
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Six months ended
December 31, |
(In thousands) |
Location in Financial Statements |
2014 |
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2013 |
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2014 |
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2013 |
Derivatives Designated as Hedging Instruments |
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Gains (losses) in accumulated OCI on derivatives (effective portion) |
Accumulated OCI |
$ |
11,924 |
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|
$ |
3,864 |
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|
$ |
13,957 |
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|
$ |
3,573 |
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Gains reclassified from accumulated OCI into income (effective portion): |
Revenues |
$ |
1,933 |
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|
$ |
(128 |
) |
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$ |
2,202 |
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$ |
2,322 |
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Costs of revenues |
(475 |
) |
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150 |
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|
(516 |
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|
216 |
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Interest expense |
126 |
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— |
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126 |
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— |
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Net gains reclassified from accumulated OCI into income (effective portion) |
$ |
1,584 |
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$ |
22 |
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$ |
1,812 |
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$ |
2,538 |
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Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) |
Interest income and other, net |
$ |
77 |
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$ |
44 |
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$ |
120 |
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$ |
26 |
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Derivatives Not Designated as Hedging Instruments |
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Gains recognized in income |
Interest income and other, net |
$ |
7,187 |
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$ |
2,722 |
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$ |
11,112 |
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$ |
5,348 |
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Loss on extinguishment of debt and other, net |
$ |
1,180 |
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|
$ |
— |
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$ |
1,180 |
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|
$ |
— |
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| Schedule of Notional Amounts of Derivatives Outstanding |
The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum maturity of 13 months, as of the dates indicated below was as follows:
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(In thousands) |
As of
December 31, 2014 |
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As of
June 30, 2014 |
Cash flow hedge contracts |
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Purchase |
$ |
24,672 |
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$ |
6,066 |
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Sell |
$ |
50,058 |
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$ |
33,999 |
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Other foreign currency hedge contracts |
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Purchase |
$ |
106,993 |
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$ |
108,901 |
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Sell |
$ |
139,157 |
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$ |
106,322 |
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| Schedule of Derivative Instruments, Fair Value |
The locations and fair value amounts of the Company’s derivative instruments reported in its Condensed 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
December 31, 2014 |
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As of
June 30, 2014 |
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Balance Sheet Location |
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As of
December 31, 2014 |
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As of
June 30, 2014 |
(In thousands) |
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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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$ |
3,817 |
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$ |
120 |
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Other current liabilities |
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$ |
460 |
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$ |
100 |
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Total derivatives designated as hedging instruments |
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$ |
3,817 |
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$ |
120 |
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$ |
460 |
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$ |
100 |
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Derivatives not designated as hedging instruments |
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Foreign exchange contracts |
Other current assets |
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$ |
7,767 |
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$ |
546 |
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Other current liabilities |
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$ |
1,356 |
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$ |
798 |
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Total derivatives not designated as hedging instruments |
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$ |
7,767 |
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$ |
546 |
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$ |
1,356 |
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$ |
798 |
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Total derivatives |
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$ |
11,584 |
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$ |
666 |
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$ |
1,816 |
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$ |
898 |
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| Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments |
The following table provides the balances and changes in accumulated OCI, before taxes, related to derivative instruments for the indicated periods:
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Three months ended
December 31, |
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Six months ended
December 31, |
(In thousands) |
2014 |
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2013 |
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2014 |
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2013 |
Beginning balance |
$ |
1,785 |
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|
$ |
(323 |
) |
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$ |
(20 |
) |
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$ |
2,484 |
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Amount reclassified to income |
(1,584 |
) |
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(22 |
) |
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(1,812 |
) |
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(2,538 |
) |
Net change |
11,924 |
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|
3,864 |
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13,957 |
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|
3,573 |
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Ending balance |
$ |
12,125 |
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|
$ |
3,519 |
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$ |
12,125 |
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$ |
3,519 |
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| Offsetting of Assets and Liabilities |
As of December 31, 2014 and June 30, 2014, information related to the offsetting arrangements was as follows (in thousands):
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As of December 31, 2014 |
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Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |
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Description |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the Condensed 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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$ |
11,584 |
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|
$ |
— |
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$ |
11,584 |
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$ |
(1,816 |
) |
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$ |
— |
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$ |
9,768 |
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Derivatives - Liabilities |
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$ |
(1,816 |
) |
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$ |
— |
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$ |
(1,816 |
) |
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$ |
1,816 |
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$ |
— |
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$ |
— |
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As of June 30, 2014 |
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Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets |
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Description |
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Gross Amounts of Derivatives |
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Gross Amounts of Derivatives Offset in the Condensed Consolidated Balance Sheets |
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Net Amount of Derivatives Presented in the Condensed 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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$ |
666 |
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|
$ |
— |
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$ |
666 |
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$ |
(423 |
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$ |
— |
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$ |
243 |
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Derivatives - Liabilities |
|
$ |
(898 |
) |
|
$ |
— |
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$ |
(898 |
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$ |
423 |
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$ |
— |
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$ |
(475 |
) |
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