Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

v3.24.3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 3 Months Ended
Sep. 30, 2024
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 September 30,
(In thousands) 2024 2023
Derivatives Designated as Cash Flow Hedging Instruments:
Foreign exchange contracts:
Amounts included in the assessment of effectiveness $ 3,444  $ (1,533)
Amounts excluded from the assessment of effectiveness $ (346) $ 52 
Derivatives Designated as Net Investment Hedging Instruments:
Foreign exchange contracts(1):
$ (6,999) $ 2,536 
    __________________ 
(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 September 30, Three Months Ended September 30,
2024 2023
(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 $ 2,841,541  $ 1,721,618  $ 82,171  $ (40,935) $ 2,396,956  $ 1,497,750  $ 74,234  $ (26,739)
Gains (Losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
Amount of gains (losses) reclassified from AOCI to earnings $ —  $ —  $ 947  $ —  $ —  $ —  $ 937  $ — 
Foreign exchange contracts:
Amount of gains (losses) reclassified from AOCI to earnings $ 3,104  $ 26  $ —  $ —  $ 3,649  $ 2,775  $ —  $ — 
Amount excluded from the assessment of effectiveness recognized in earnings $ (569) $ —  $ —  $ (371) $ (253) $ —  $ —  $ 52 
Gains (Losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings $ —  $ —  $ —  $ 83  $ —  $ —  $ —  $ (11,397)
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 13 months as of the dates indicated below, were as follows:
As of As of
(In thousands) September 30, 2024 June 30, 2024
Cash flow hedge contracts - foreign currency
Purchase $ 413,242  $ 426,839 
Sell $ 127,586  $ 76,342 
Net investment hedge contracts - foreign currency
Sell $ 274,662  $ 273,952 
Other foreign currency hedge contracts
Purchase $ 654,686  $ 589,171 
Sell $ 441,091  $ 411,635 
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 September 30, 2024 June 30, 2024 Location September 30, 2024 June 30, 2024
(In thousands) Fair Value Fair Value
Derivatives designated as hedging instruments
Foreign exchange contracts Other current assets $ 11,877  $ 13,783  Other current liabilities $ (11,252) $ (8,066)
Total derivatives designated as hedging instruments 11,877  13,783  (11,252) (8,066)
Derivatives not designated as hedging instruments
Foreign exchange contracts Other current assets 13,437  22,720  Other current liabilities (20,266) (7,617)
Total derivatives not designated as hedging instruments 13,437  22,720  (20,266) (7,617)
Total derivatives $ 25,314  $ 36,503  $ (31,518) $ (15,683)
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 September 30,
(In thousands) 2024 2023
Beginning AOCI $ 68,903  $ 81,611 
Amount reclassified to earnings as net gains (3,508) (7,108)
Net change in unrealized gains (3,901) 1,055 
Ending AOCI $ 61,494  $ 75,558 
Schedule of Offsetting Derivative Assets The information related to the offsetting arrangements for the periods indicated was as follows:
As of September 30, 2024 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 $ 25,314  $ —  $ 25,314  $ (23,953) $ —  $ 1,361 
Derivatives - liabilities $ (31,518) $ —  $ (31,518) $ 23,953  $ —  $ (7,565)
As of June 30, 2024 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 $ 36,503  $ —  $ 36,503  $ (15,173) $ —  $ 21,330 
Derivatives - liabilities $ (15,683) $ —  $ (15,683) $ 15,173  $ —  $ (510)
Schedule of Offsetting Derivative Liabilities The information related to the offsetting arrangements for the periods indicated was as follows:
As of September 30, 2024 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 $ 25,314  $ —  $ 25,314  $ (23,953) $ —  $ 1,361 
Derivatives - liabilities $ (31,518) $ —  $ (31,518) $ 23,953  $ —  $ (7,565)
As of June 30, 2024 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 $ 36,503  $ —  $ 36,503  $ (15,173) $ —  $ 21,330 
Derivatives - liabilities $ (15,683) $ —  $ (15,683) $ 15,173  $ —  $ (510)