Quarterly report pursuant to Section 13 or 15(d)

Derivative Instruments and Hedging Activities (Tables)

v3.19.3
Derivative Instruments and Hedging Activities (Tables)
3 Months Ended
Sep. 30, 2019
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 hedging relationships recognized in OCI for the indicated periods were as follows:
 
Three Months Ended
 
September 30,
(In thousands)
2019
 
2018
Derivatives Designated as Hedging Instruments:
 
 
 
Foreign exchange contracts:
 
 
 
Amounts included in the assessment of effectiveness
$
(740
)
 
$
13,794

Amounts excluded from the assessment of effectiveness
$
(2
)
 
$

The locations and amounts of designated and non-designated derivative’s 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,
 
2019
 
2018
(In thousands)
Revenue
 
Cost of Revenues and Operating Expenses
 
Interest Expense
 
Other Expense (Income), Net
 
Revenue
 
Cost of Revenues
 
Interest Expense
 
Other Expense (Income), Net
Total amounts presented in the Condensed Consolidated Statement of Operations in which the effects of cash flow hedges are recorded
$
1,413,414

 
$
1,003,166

 
$
40,350

 
$
(1,618
)
 
$
1,093,260

 
$
381,387

 
$
26,362

 
$
(10,025
)
Gains (losses) on Derivatives Designated as Hedging Instruments:
Rate lock agreements:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of gains (losses) reclassified from accumulated OCI to earnings
$

 
$

 
$
(99
)
 
$

 
$

 
$

 
$

 
$

Foreign exchange contracts:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Amount of gains (losses) reclassified from accumulated OCI to earnings
$
475

 
$
(1,801
)
 
$

 
$

 
$
983

 
$
(134
)
 
$
188

 
$

Amount excluded from the assessment of effectiveness recognized in earnings based on an amortization approach
$
(102
)
 
$

 
$

 
$

 
$

 
$

 
$

 
$

Amount excluded from the assessment of effectiveness
$

 
$

 
$

 
$

 
$

 
$

 
$

 
$
229

Gains (losses) on Derivatives Not Designated as Hedging Instruments:
Amount of gains (losses) recognized in earnings
$

 
$

 
$

 
$
2,325

 
$

 
$

 
$

 
$
3,763

Schedule of Notional Amounts of Derivatives Outstanding
The U.S. dollar equivalent of all outstanding notional amounts of foreign currency hedge contracts, with maximum remaining maturities of approximately ten months as of the dates indicated below were as follows:
(In thousands)
As of
September 30, 2019
 
As of
June 30, 2019
Cash flow hedge contracts - foreign currency
 
 
 
Purchase
$
26,488

 
$
31,108

Sell
$
117,761

 
$
113,226

Other foreign currency hedge contracts
 
 
 
Purchase
$
228,271

 
$
257,614

Sell
$
280,226

 
$
273,061


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 
Location
 
As of
September 30, 2019
 
As of
June 30, 2019
 
Balance Sheet 
Location
 
As of
September 30, 2019
 
As of
June 30, 2019
(In thousands)
 
Fair Value
 
 
Fair Value
Derivatives designated as hedging instruments
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange contracts
Other current assets
 
608

 
397

 
Other current liabilities
 
824

 
2,097

Total derivatives designated as hedging instruments
 
 
608

 
397

 
 
 
824

 
2,097

Derivatives not designated as hedging instruments
 
 
 
 
 
 
 
 
 
 

Foreign exchange contracts
Other current assets
 
3,000

 
2,160

 
Other current liabilities
 
1,845

 
1,237

Total derivatives not designated as hedging instruments
 
 
3,000

 
2,160

 
 
 
1,845

 
1,237

Total derivatives
 
 
$
3,608

 
$
2,557

 
 
 
$
2,669

 
$
3,334


Balances and Changes in Accumulated Other Comprehensive Income Related to Derivative Instruments
The changes in OCI, before taxes, related to derivatives for the indicated periods were as follows:
 
Three Months Ended
September 30,
(In thousands)
2019
 
2018
Beginning balance
$
(10,791
)
 
$
2,346

Amount reclassified to earnings
1,527

 
(1,037
)
Net change in unrealized gains or losses
(742
)
 
13,794

Ending balance
$
(10,006
)
 
$
15,103


Offsetting of Assets and Liabilities The information related to the offsetting arrangements for the periods indicated was as follows (in thousands):
As of September 30, 2019
 
 
 
 
 
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
 
$
3,608

 
$

 
$
3,608

 
$
(2,027
)
 
$

 
$
1,581

Derivatives - Liabilities
 
$
(2,669
)
 
$

 
$
(2,669
)
 
$
2,027

 
$

 
$
(642
)
As of June 30, 2019
 
 
 
 
 
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
 
$
2,557

 
$

 
$
2,557

 
$
(1,397
)
 
$

 
$
1,160

Derivatives - Liabilities
 
$
(3,334
)
 
$

 
$
(3,334
)
 
$
1,397

 
$

 
$
(1,937
)