Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.23.4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Dec. 31, 2023
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 and net investment hedging relationships recognized in other comprehensive income for the indicated periods were as follows:
Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2023 2022 2023 2022
Derivatives Designated as Cash Flow Hedging Instruments:
Rate lock agreements:
Amounts included in the assessment of effectiveness $ (3,385) $ (937) $ (3,385) $ — 
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 13,184  $ 9,896  $ 11,651  $ 10,712 
Amounts excluded from the assessment of effectiveness $ 7  $ (720) $ 59  $ (705)
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1):
$ (9,606) $ (1,847) $ (7,070) $ 1,832 
    __________________ 
(1)No amounts were reclassified from AOCI into earnings related to the sale of a subsidiary, as there were no such sales during the periods presented.
The locations and amounts of designated and non-designated derivatives’ gains and losses reported in the Condensed Consolidated Statements of Operations for the indicated periods were as follows:
Three Months Ended December 31, Three Months Ended December 31,
2023 2022
(In thousands) Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenues Costs 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 $ 2,486,726  $ 1,753,408  $ 74,202  $ (32,154) $ 2,983,887  $ 1,784,708  $ 74,280  $ (18,074)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 937  $ —  $ —  $ —  $ 937  $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 8,296  $ (20) $ —  $ —  $ 16,361  $ (3,904) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (260) $ —  $ —  $ 7  $ (433) $ —  $ —  $ 455 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 13,062  $ —  $ —  $ —  $ (8,081)
Six Months Ended December 31, Six Months Ended December 31,
2023 2022
(In thousands) Revenues Costs of Revenues and Operating Expenses Interest Expense Other Expense (Income), Net Revenues Costs 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 $ 4,883,682  $ 3,251,158  $ 148,436  $ (58,893) $ 5,708,311  $ 3,398,429  $ 148,675  $ (65,080)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 1,874  $ —  $ —  $ —  $ 1,874  $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 11,945  $ 2,755  $ —  $ —  $ 31,276  $ (9,271) $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (513) $ —  $ —  $ 59  $ (743) $ —  $ —  $ 910 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 1,665  $ —  $ —  $ —  $ 6,293 
Schedule of Notional Amounts of Derivatives Outstanding
The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts and rate lock agreements, with maximum remaining maturities of approximately 12 months as of the dates indicated below, were as follows:
As of As of
(In thousands) December 31, 2023 June 30, 2023
Cash flow hedge contracts - foreign currency
Purchase $ 449,296  $ 218,315 
Sell $ 122,487  $ 123,951 
Net investment hedge contracts - foreign currency
Sell $ 215,114  $ 87,157 
Other foreign currency hedge contracts
Purchase $ 652,098  $ 527,349 
Sell $ 368,867  $ 204,902 
Rate lock agreements $ 250,000  $ — 
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 December 31, 2023 June 30, 2023 Location December 31, 2023 June 30, 2023
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Rate lock agreements Other current assets $ —  $ —  Other current liabilities $ (3,385) $ — 
Foreign exchange contracts Other current assets $ 15,590  $ 24,498  Other current liabilities $ (8,862) $ (442)
Total derivatives designated as hedging instruments 15,590  24,498  (12,247) (442)
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 23,347  11,214  Other current liabilities (9,676) (11,664)
Total derivatives not designated as hedging instruments 23,347  11,214  (9,676) (11,664)
Total derivatives $ 38,937  $ 35,712  $ (21,923) $ (12,106)
Schedule of Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments
The changes in AOCI, before taxes, related to derivatives for the indicated periods were as follows:
Three Months Ended December 31, Six Months Ended December 31,
(In thousands) 2023 2022 2023 2022
Beginning AOCI $ 75,558  $ 72,290  $ 81,611  $ 77,018 
Amount reclassified to earnings as net gains (8,953) (12,961) (16,061) (23,136)
Net change in unrealized gains 200  6,392  1,255  11,839 
Ending AOCI $ 66,805  $ 65,721  $ 66,805  $ 65,721 
Schedule of Offsetting Derivative Assets The information related to the offsetting arrangements for the periods indicated was as follows:
As of December 31, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 38,937  $ —  $ 38,937  $ (21,100) $ —  $ 17,837 
Derivatives - liabilities $ (21,923) $ —  $ (21,923) $ 21,100  $ —  $ (823)
As of June 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 35,712  $ —  $ 35,712  $ (8,968) $ —  $ 26,744 
Derivatives - liabilities $ (12,106) $ —  $ (12,106) $ 8,968  $ —  $ (3,138)
Schedule of Offsetting Derivative Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of December 31, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 38,937  $ —  $ 38,937  $ (21,100) $ —  $ 17,837 
Derivatives - liabilities $ (21,923) $ —  $ (21,923) $ 21,100  $ —  $ (823)
As of June 30, 2023 Gross Amounts of Derivatives Not Offset in the Condensed Consolidated Balance Sheets
(In thousands)
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 $ 35,712  $ —  $ 35,712  $ (8,968) $ —  $ 26,744 
Derivatives - liabilities $ (12,106) $ —  $ (12,106) $ 8,968  $ —  $ (3,138)