Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v3.10.0.1
Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
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:
 
 
Three months ended
September 30,
(In thousands)
Location in Financial Statements
2018
 
2017
Derivatives Designated as Hedging Instruments
 
 
 
 
Gains (losses) in accumulated OCI on derivatives (effective portion)
Accumulated OCI
$
13,794

 
$
444

Gains (losses) reclassified from accumulated OCI into income (effective portion):
Revenues
$
983

 
$
968

 
Costs of revenues
(134
)
 
961

 
Interest expense
188

 
189

 
Net gains (losses) reclassified from accumulated OCI into income (effective portion)
$
1,037

 
$
2,118

Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Other expense (income), net
$
229

 
$
(71
)
Derivatives Not Designated as Hedging Instruments
 
 
 
 
Gains (losses) recognized in income
Other expense (income), net
$
3,763

 
$
439

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:
(In thousands)
As of
September 30, 2018
 
As of
June 30, 2018
Cash flow hedge contracts- foreign currency
 
 
 
Purchase
$
6,073

 
$
8,116

Sell
$
90,410

 
$
115,032

Other foreign currency hedge contracts
 
 
 
Purchase
$
182,026

 
$
130,442

Sell
$
169,899

 
$
154,442

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: 
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet 
Location
 
As of
September 30, 2018
 
As of
June 30, 2018
 
Balance Sheet 
Location
 
As of
September 30, 2018
 
As of
June 30, 2018
(In thousands)
 
Fair Value
 
 
Fair Value
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Rate lock contracts
Other current assets
 
$
3,071

 
$
219

 
Other current liabilities
 
$

 
$
5,158

Foreign exchange contracts
Other current assets
 
1,856

 
3,259

 
Other current liabilities
 
159

 
312

Total derivatives designated as hedging instruments
 
 
4,927

 
3,478

 
 
 
159

 
5,470

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
5,061

 
1,907

 
Other current liabilities
 
1,234

 
1,358

Total derivatives not designated as hedging instruments
 
 
5,061

 
1,907

 
 
 
1,234

 
1,358

Total derivatives
 
 
$
9,988

 
$
5,385

 
 
 
$
1,393

 
$
6,828

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:
 
Three months ended
September 30,
(In thousands)
2018
 
2017
Beginning balance
$
2,346

 
$
8,126

Amount reclassified to income
(1,037
)
 
(2,118
)
Net change in unrealized gains or losses
13,794

 
444

Ending balance
$
15,103

 
$
6,452

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):
As of September 30, 2018
 
 
 
 
 
Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
 
 
Description
 
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
 
$
9,988

 
$

 
$
9,988

 
$
(1,393
)
 
$

 
$
8,595

Derivatives - Liabilities
 
$
(1,393
)
 
$

 
$
(1,393
)
 
$
1,393

 
$

 
$

As of June 30, 2018
 
 
 
 
 
Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
 
 
Description
 
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
 
$
5,385

 
$

 
$
5,385

 
$
(1,888
)
 
$

 
$
3,497

Derivatives - Liabilities
 
$
(6,828
)
 
$

 
$
(6,828
)
 
$
1,888

 
$

 
$
(4,940
)