Derivative Instruments and Hedging Activities (Tables)
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9 Months Ended |
Mar. 31, 2017 |
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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
March 31, |
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Nine months ended
March 31, |
(In thousands) |
Location in Financial Statements |
2017 |
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2016 |
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2017 |
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2016 |
Derivatives Designated as Hedging Instruments |
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Gains (losses) in accumulated OCI on derivatives (effective portion) |
Accumulated OCI |
$ |
(3,526 |
) |
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$ |
(2,798 |
) |
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$ |
8,605 |
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|
$ |
(3,952 |
) |
Gains (losses) reclassified from accumulated OCI into income (effective portion): |
Revenues |
$ |
2,441 |
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|
$ |
(930 |
) |
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$ |
(465 |
) |
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$ |
79 |
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|
Costs of revenues |
(342 |
) |
|
(366 |
) |
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(498 |
) |
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(1,516 |
) |
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Interest expense |
189 |
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|
189 |
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|
567 |
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|
567 |
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Net gains (losses) reclassified from accumulated OCI into income (effective portion) |
$ |
2,288 |
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$ |
(1,107 |
) |
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$ |
(396 |
) |
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$ |
(870 |
) |
Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) |
Other expense (income), net |
$ |
566 |
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$ |
(396 |
) |
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$ |
(887 |
) |
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$ |
(795 |
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Derivatives Not Designated as Hedging Instruments |
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Gains (losses) recognized in income |
Other expense (income), net |
$ |
816 |
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$ |
(7,350 |
) |
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$ |
5,947 |
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$ |
(12,985 |
) |
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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 remaining maturities of approximately 13 months as of March 31, 2017 and 7 months as of June 30, 2016 was as follows:
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(In thousands) |
As of
March 31, 2017 |
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As of
June 30, 2016 |
Cash flow hedge contracts |
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Purchase |
$ |
17,069 |
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$ |
7,591 |
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Sell |
$ |
109,408 |
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$ |
91,793 |
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Other foreign currency hedge contracts |
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Purchase |
$ |
94,104 |
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$ |
122,275 |
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Sell |
$ |
101,405 |
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$ |
115,087 |
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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
March 31, 2017 |
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As of
June 30, 2016 |
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Balance Sheet Location |
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As of
March 31, 2017 |
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As of
June 30, 2016 |
(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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$ |
1,994 |
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$ |
342 |
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Other current liabilities |
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$ |
451 |
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$ |
4,736 |
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Total derivatives designated as hedging instruments |
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$ |
1,994 |
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$ |
342 |
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$ |
451 |
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$ |
4,736 |
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Derivatives not designated as hedging instruments |
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Foreign exchange contracts |
Other current assets |
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$ |
4,526 |
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$ |
753 |
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Other current liabilities |
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$ |
1,443 |
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$ |
6,911 |
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Total derivatives not designated as hedging instruments |
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$ |
4,526 |
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$ |
753 |
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$ |
1,443 |
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$ |
6,911 |
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Total derivatives |
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$ |
6,520 |
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$ |
1,095 |
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$ |
1,894 |
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$ |
11,647 |
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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
March 31, |
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Nine months ended
March 31, |
(In thousands) |
2017 |
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2016 |
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2017 |
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2016 |
Beginning balance |
$ |
16,025 |
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|
$ |
5,719 |
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$ |
1,210 |
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$ |
7,110 |
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Amount reclassified to income |
(2,288 |
) |
|
1,107 |
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|
396 |
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|
870 |
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Net change in unrealized gains or losses |
(3,526 |
) |
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(2,798 |
) |
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8,605 |
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(3,952 |
) |
Ending balance |
$ |
10,211 |
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$ |
4,028 |
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$ |
10,211 |
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|
$ |
4,028 |
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| Offsetting of Assets and Liabilities |
As of March 31, 2017 and June 30, 2016, information related to the offsetting arrangements was as follows (in thousands):
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As of March 31, 2017 |
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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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$ |
6,520 |
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|
$ |
— |
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$ |
6,520 |
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$ |
(1,364 |
) |
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$ |
— |
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$ |
5,156 |
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Derivatives - Liabilities |
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$ |
(1,894 |
) |
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$ |
— |
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$ |
(1,894 |
) |
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$ |
1,364 |
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$ |
— |
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$ |
(530 |
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As of June 30, 2016 |
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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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$ |
1,095 |
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$ |
— |
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$ |
1,095 |
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$ |
(843 |
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$ |
— |
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$ |
252 |
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Derivatives - Liabilities |
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$ |
(11,647 |
) |
|
$ |
— |
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$ |
(11,647 |
) |
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$ |
843 |
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$ |
— |
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$ |
(10,804 |
) |
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