Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v2.4.1.9
Derivative Instruments and Hedging Activities (Tables)
6 Months Ended
Dec. 31, 2014
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
December 31,
 
Six months ended
December 31,
(In thousands)
Location in Financial Statements
2014
 
2013
 
2014
 
2013
Derivatives Designated as Hedging Instruments
 
 
 
 
 
 
 
 
Gains (losses) in accumulated OCI on derivatives (effective portion)
Accumulated OCI
$
11,924

 
$
3,864

 
$
13,957

 
$
3,573

Gains reclassified from accumulated OCI into income (effective portion):
Revenues
$
1,933

 
$
(128
)
 
$
2,202

 
$
2,322

 
Costs of revenues
(475
)
 
150

 
(516
)
 
216

 
Interest expense
126

 

 
126

 

 
Net gains reclassified from accumulated OCI into income (effective portion)
$
1,584

 
$
22

 
$
1,812

 
$
2,538

Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Interest income and other, net
$
77

 
$
44

 
$
120

 
$
26

Derivatives Not Designated as Hedging Instruments
 
 
 
 
 
 
 
 
Gains recognized in income
Interest income and other, net
$
7,187

 
$
2,722

 
$
11,112

 
$
5,348

 
Loss on extinguishment of debt and other, net
$
1,180

 
$

 
$
1,180

 
$

Schedule of Notional Amounts of Derivatives Outstanding
The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum maturity of 13 months, as of the dates indicated below was as follows: 
(In thousands)
As of
December 31, 2014
 
As of
June 30, 2014
Cash flow hedge contracts
 
 
 
Purchase
$
24,672

 
$
6,066

Sell
$
50,058

 
$
33,999

Other foreign currency hedge contracts
 
 
 
Purchase
$
106,993

 
$
108,901

Sell
$
139,157

 
$
106,322

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
December 31, 2014
 
As of
June 30, 2014
 
Balance Sheet Location
 
As of
December 31, 2014
 
As of
June 30, 2014
(In thousands)
 
Fair Value
 
 
Fair Value
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
$
3,817

 
$
120

 
Other current liabilities
 
$
460

 
$
100

Total derivatives designated as hedging instruments
 
 
$
3,817

 
$
120

 
 
 
$
460

 
$
100

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
$
7,767

 
$
546

 
Other current liabilities
 
$
1,356

 
$
798

Total derivatives not designated as hedging instruments
 
 
$
7,767

 
$
546

 
 
 
$
1,356

 
$
798

Total derivatives
 
 
$
11,584

 
$
666

 
 
 
$
1,816

 
$
898

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
December 31,
 
Six months ended
December 31,
(In thousands)
2014
 
2013
 
2014
 
2013
Beginning balance
$
1,785

 
$
(323
)
 
$
(20
)
 
$
2,484

Amount reclassified to income
(1,584
)
 
(22
)
 
(1,812
)
 
(2,538
)
Net change
11,924

 
3,864

 
13,957

 
3,573

Ending balance
$
12,125

 
$
3,519

 
$
12,125

 
$
3,519

Offsetting of Assets and Liabilities
As of December 31, 2014 and June 30, 2014, information related to the offsetting arrangements was as follows (in thousands):
As of December 31, 2014
 
 
 
 
 
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
 
$
11,584

 
$

 
$
11,584

 
$
(1,816
)
 
$

 
$
9,768

Derivatives - Liabilities
 
$
(1,816
)
 
$

 
$
(1,816
)
 
$
1,816

 
$

 
$

As of June 30, 2014
 
 
 
 
 
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
 
$
666

 
$

 
$
666

 
$
(423
)
 
$

 
$
243

Derivatives - Liabilities
 
$
(898
)
 
$

 
$
(898
)
 
$
423

 
$

 
$
(475
)