Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.21.1
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 9 Months Ended
Mar. 31, 2021
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 hedging and net investment hedging relationships recognized in OCI for the indicated periods were as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
(In thousands) 2021 2020 2021 2020
Derivatives Designated as Cash Flow Hedging Instruments:
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 5,878  $ (19,268) $ 3,696  $ (17,704)
Amounts excluded from the assessment of effectiveness $ (54) $ (65) $ (146) $ (81)
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1):
$ 1,094  $ —  $ 1,094  $ — 
    __________________ 
(1)No amounts were reclassified from accumulated OCI into earnings related to the sale of a subsidiary.
Three Months Ended March 31, Three Months Ended March 31,
2021 2020
(In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost 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 $ 1,803,773  $ 1,131,626  $ 39,092  $ (7,348) $ 1,423,964  $ 1,248,000  $ 39,231  $ (1,004)
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ —  $ —  $ (279) $ —  $ —  $ —  $ (159) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ (441) $ 187  $ —  $ —  $ 2,970  $ 12  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (142) $ —  $ —  $ 699  $ 81  $ —  $ —  $ — 
Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 3,420  $ —  $ —  $ —  $ (4,373)
Nine Months Ended March 31, Nine Months Ended March 31,
2021 2020
(In thousands) Revenue Cost of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenue Cost 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 $ 4,993,263  $ 3,224,563  $ 117,358  $ (269) $ 4,346,831  $ 3,297,788  $ 120,053  $ (5,190)
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ —  $ —  $ (837) $ —  $ —  $ —  $ (358) $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from accumulated OCI to earnings $ (1,091) $ 612  $ —  $ —  $ 3,530  $ (1,806) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (420) $ —  $ —  $ 699  $ (114) $ —  $ —  $ — 
Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 483  $ —  $ —  $ —  $ 8 
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 eleven months as of the dates indicated below were as follows:
As of As of
(In thousands) March 31, 2021 June 30, 2020
Cash flow hedge contracts - foreign currency
Purchase $ 6,231  $ 10,705 
Sell $ 133,485  $ 71,431 
Net Investment hedge contracts - foreign currency
Sell $ 66,848  $ — 
Other foreign currency hedge contracts
Purchase $ 240,693  $ 329,310 
Sell $ 283,051  $ 357,939 
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 March 31, 2021 June 30, 2020 Location March 31, 2021 June 30, 2020
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 6,575  $ 680  Other current liabilities $ 147  $ 45 
Total derivatives designated as hedging instruments 6,575  680  147  45 
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 5,143  1,397  Other current liabilities 3,303  1,365 
Total derivatives not designated as hedging instruments 5,143  1,397  3,303  1,365 
Total derivatives $ 11,718  $ 2,077  $ 3,450  $ 1,410 
Schedule of Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments
The changes in OCI, before taxes, related to derivatives for the indicated periods were as follows:
Three Months Ended Nine Months Ended
March 31, March 31,
(In thousands) 2021 2020 2021 2020
Beginning accumulated other comprehensive income (loss) $ (30,816) $ (7,591) $ (29,602) $ (10,791)
Amount reclassified to earnings as net (gains) losses 675  (2,904) 1,736  (1,252)
Net change in unrealized gains (losses) 6,919  (19,333) 4,644  (17,785)
Ending accumulated other comprehensive income (loss) $ (23,222) $ (29,828) $ (23,222) $ (29,828)
Schedule of Offsetting of Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of March 31, 2021 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 11,718  $ —  $ 11,718  $ (3,450) $ —  $ 8,268 
Derivatives - Liabilities $ (3,450) $ —  $ (3,450) $ 3,450  $ —  $ — 
As of June 30, 2020 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 2,077  $ —  $ 2,077  $ (1,020) $ —  $ 1,057 
Derivatives - Liabilities $ (1,410) $ —  $ (1,410) $ 1,020  $ —  $ (390)