Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v3.5.0.2
Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Sep. 30, 2016
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
2016
 
2015
Derivatives Designated as Hedging Instruments
 
 
 
 
Losses in accumulated OCI on derivatives (effective portion)
Accumulated OCI
$
(1,838
)
 
$
(1,861
)
Gains (losses) reclassified from accumulated OCI into income (effective portion):
Revenues
$
(1,481
)
 
$
685

 
Costs of revenues
(87
)
 
(472
)
 
Interest expense
189

 
189

 
Net gains (losses) reclassified from accumulated OCI into income (effective portion)
$
(1,379
)
 
$
402

Losses recognized in income on derivatives (ineffective portion and amount excluded from effectiveness testing)
Other expense (income), net
$
(11
)
 
$
(126
)
Derivatives Not Designated as Hedging Instruments
 
 
 
 
Losses recognized in income
Other expense (income), net
$
(164
)
 
$
(6,382
)
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 seven months as of September 30, 2016 and June 30, 2016 was as follows:
(In thousands)
As of
September 30, 2016
 
As of
June 30, 2016
Cash flow hedge contracts
 
 
 
Purchase
$
8,058

 
$
7,591

Sell
$
98,256

 
$
91,793

Other foreign currency hedge contracts
 
 
 
Purchase
$
113,793

 
$
122,275

Sell
$
114,506

 
$
115,087

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, 2016
 
As of
June 30, 2016
 
Balance Sheet Location
 
As of
September 30, 2016
 
As of
June 30, 2016
(In thousands)
 
Fair Value
 
 
Fair Value
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
$
571

 
$
342

 
Other current liabilities
 
$
3,104

 
$
4,736

Total derivatives designated as hedging instruments
 
 
$
571

 
$
342

 
 
 
$
3,104

 
$
4,736

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
$
121

 
$
753

 
Other current liabilities
 
$
4,533

 
$
6,911

Total derivatives not designated as hedging instruments
 
 
$
121

 
$
753

 
 
 
$
4,533

 
$
6,911

Total derivatives
 
 
$
692

 
$
1,095

 
 
 
$
7,637

 
$
11,647

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)
2016
 
2015
Beginning balance
$
1,210

 
$
7,110

Amount reclassified to income
1,379

 
(402
)
Net change in unrealized gains or losses
(1,838
)
 
(1,861
)
Ending balance
$
751

 
$
4,847

Offsetting of Assets and Liabilities
As of September 30, 2016 and June 30, 2016, information related to the offsetting arrangements was as follows (in thousands):
As of September 30, 2016
 
 
 
 
 
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
 
$
692

 
$

 
$
692

 
$
(172
)
 
$

 
$
520

Derivatives - Liabilities
 
$
(7,637
)
 
$

 
$
(7,637
)
 
$
172

 
$

 
$
(7,465
)
As of June 30, 2016
 
 
 
 
 
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
 
$
1,095

 
$

 
$
1,095

 
$
(843
)
 
$

 
$
252

Derivatives - Liabilities
 
$
(11,647
)
 
$

 
$
(11,647
)
 
$
843

 
$

 
$
(10,804
)