Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v3.8.0.1
Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Sep. 30, 2017
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
2017
 
2016
Derivatives Designated as Hedging Instruments
 
 
 
 
Gains (losses) in accumulated OCI on derivatives (effective portion)
Accumulated OCI
$
444

 
$
(1,838
)
Gains (losses) reclassified from accumulated OCI into income (effective portion):
Revenues
$
968

 
$
(1,481
)
 
Costs of revenues
961

 
(87
)
 
Interest expense
189

 
189

 
Net gains (losses) reclassified from accumulated OCI into income (effective portion)
$
2,118

 
$
(1,379
)
Gains (losses) recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Other expense (income), net
$
(71
)
 
$
(11
)
Derivatives Not Designated as Hedging Instruments
 
 
 
 
Gains (losses) recognized in income
Other expense (income), net
$
439

 
$
(164
)
Schedule of Notional Amounts of Derivatives Outstanding
The U.S. dollar equivalent of all outstanding notional amounts of hedge contracts, with maximum remaining maturities of approximately ten months as of September 30, 2017 and June 30, 2017, respectively was as follows:
(In thousands)
As of
September 30, 2017
 
As of
June 30, 2017
Cash flow hedge contracts
 
 
 
Purchase
$
17,552

 
$
19,305

Sell
$
96,790

 
$
128,672

Other foreign currency hedge contracts
 
 
 
Purchase
$
146,392

 
$
165,563

Sell
$
134,258

 
$
118,504

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, 2017
 
As of
June 30, 2017
 
Balance Sheet 
Location
 
As of
September 30, 2017
 
As of
June 30, 2017
(In thousands)
 
Fair Value
 
 
Fair Value
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
$
1,728

 
$
2,198

 
Other current liabilities
 
$

 
$
72

Total derivatives designated as hedging instruments
 
 
$
1,728

 
$
2,198

 
 
 
$

 
$
72

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
$
2,315

 
$
3,733

 
Other current liabilities
 
$
1,235

 
$
1,203

Total derivatives not designated as hedging instruments
 
 
$
2,315

 
$
3,733

 
 
 
$
1,235

 
$
1,203

Total derivatives
 
 
$
4,043

 
$
5,931

 
 
 
$
1,235

 
$
1,275

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)
2017
 
2016
Beginning balance
$
8,126

 
$
1,210

Amount reclassified to income
(2,118
)
 
1,379

Net change in unrealized gains or losses
444

 
(1,838
)
Ending balance
$
6,452

 
$
751

Offsetting of Assets and Liabilities
As of September 30, 2017 and June 30, 2017, information related to the offsetting arrangements was as follows (in thousands):
As of September 30, 2017
 
 
 
 
 
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
 
$
4,043

 
$

 
$
4,043

 
$
(1,017
)
 
$

 
$
3,026

Derivatives - Liabilities
 
$
(1,235
)
 
$

 
$
(1,235
)
 
$
1,017

 
$

 
$
(218
)
As of June 30, 2017
 
 
 
 
 
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
 
$
5,931

 
$

 
$
5,931

 
$
(1,275
)
 
$

 
$
4,656

Derivatives - Liabilities
 
$
(1,275
)
 
$

 
$
(1,275
)
 
$
1,275

 
$

 
$