Derivative Instruments and Hedging Activities (Tables)
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3 Months Ended |
Sep. 30, 2018 |
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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
September 30, |
(In thousands) |
Location in Financial Statements |
2018 |
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2017 |
Derivatives Designated as Hedging Instruments |
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Gains (losses) in accumulated OCI on derivatives (effective portion) |
Accumulated OCI |
$ |
13,794 |
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|
$ |
444 |
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Gains (losses) reclassified from accumulated OCI into income (effective portion): |
Revenues |
$ |
983 |
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|
$ |
968 |
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Costs of revenues |
(134 |
) |
|
961 |
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Interest expense |
188 |
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|
189 |
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Net gains (losses) reclassified from accumulated OCI into income (effective portion) |
$ |
1,037 |
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$ |
2,118 |
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Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing) |
Other expense (income), net |
$ |
229 |
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$ |
(71 |
) |
Derivatives Not Designated as Hedging Instruments |
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Gains (losses) recognized in income |
Other expense (income), net |
$ |
3,763 |
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$ |
439 |
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| 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 seven months as of September 30, 2018 and ten months as of June 30, 2018, were as follows:
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(In thousands) |
As of
September 30, 2018 |
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As of
June 30, 2018 |
Cash flow hedge contracts- foreign currency |
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Purchase |
$ |
6,073 |
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$ |
8,116 |
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Sell |
$ |
90,410 |
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$ |
115,032 |
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Other foreign currency hedge contracts |
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Purchase |
$ |
182,026 |
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$ |
130,442 |
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Sell |
$ |
169,899 |
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$ |
154,442 |
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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
September 30, 2018 |
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As of
June 30, 2018 |
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Balance Sheet
Location
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As of
September 30, 2018 |
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As of
June 30, 2018 |
(In thousands) |
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Fair Value |
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Fair Value |
Derivatives designated as hedging instruments |
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Rate lock contracts |
Other current assets |
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$ |
3,071 |
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$ |
219 |
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Other current liabilities |
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$ |
— |
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$ |
5,158 |
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Foreign exchange contracts |
Other current assets |
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1,856 |
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3,259 |
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Other current liabilities |
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159 |
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312 |
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Total derivatives designated as hedging instruments |
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4,927 |
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3,478 |
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159 |
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5,470 |
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Derivatives not designated as hedging instruments |
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Foreign exchange contracts |
Other current assets |
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5,061 |
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1,907 |
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Other current liabilities |
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1,234 |
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1,358 |
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Total derivatives not designated as hedging instruments |
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5,061 |
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1,907 |
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1,234 |
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1,358 |
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Total derivatives |
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$ |
9,988 |
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$ |
5,385 |
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$ |
1,393 |
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$ |
6,828 |
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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
September 30, |
(In thousands) |
2018 |
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2017 |
Beginning balance |
$ |
2,346 |
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|
$ |
8,126 |
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Amount reclassified to income |
(1,037 |
) |
|
(2,118 |
) |
Net change in unrealized gains or losses |
13,794 |
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|
444 |
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Ending balance |
$ |
15,103 |
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$ |
6,452 |
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| Offsetting of Assets and Liabilities |
As of September 30, 2018 and June 30, 2018, information related to the offsetting arrangements was as follows (in thousands):
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As of September 30, 2018 |
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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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$ |
9,988 |
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$ |
— |
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$ |
9,988 |
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$ |
(1,393 |
) |
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$ |
— |
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$ |
8,595 |
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Derivatives - Liabilities |
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$ |
(1,393 |
) |
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$ |
— |
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$ |
(1,393 |
) |
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$ |
1,393 |
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$ |
— |
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$ |
— |
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As of June 30, 2018 |
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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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$ |
5,385 |
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$ |
— |
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$ |
5,385 |
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$ |
(1,888 |
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$ |
— |
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$ |
3,497 |
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Derivatives - Liabilities |
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$ |
(6,828 |
) |
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$ |
— |
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$ |
(6,828 |
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$ |
1,888 |
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$ |
— |
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$ |
(4,940 |
) |
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