v3.22.4
DERIVATIVES AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments
As of December 31, 2022, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:

Interest Rate DerivativeNumber of InstrumentsNotional Amount
Interest Rate Swap8$630,000
As of December 31, 2022, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risks:

Foreign Currency DerivativeNumber of InstrumentsNotional SoldNotional Purchased
Foreign currency forward contract3£2,590€3,000
As of December 31, 2022, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations:

Foreign Currency DerivativeNumber of InstrumentsNotional SoldNotional Purchased
Cross-currency swap4€100,300$105,804
As of December 31, 2022, the Company had the following outstanding foreign currency derivatives that were used to hedge changes in fair value attributable to foreign exchange risk:

Foreign Currency DerivativeNumber of InstrumentsNotional SoldNotional Purchased
Cross-currency swap1€24,700$26,021

As of December 31, 2022 and June 30, 2022, the following amounts were recorded on the balance sheet related to cumulative basis adjustment for fair value hedges:

Carrying Amount of the Hedged Asset
Cumulative Amount of Fair Value Hedge Adjustment Included in the Carrying Amount of the Hedged Asset
December 31,
2022		June 30,
2022		December 31,
2022		June 30,
2022
Intercompany loan receivable$26,441 $25,899 $2,230 $122 
Derivative Financial Instruments and Classification on Consolidated Balance Sheets
Designated Hedges

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of December 31, 2022:

Asset Derivatives
Balance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate swapsPrepaid expenses and other current assets$7,240 
Interest rate swapsOther noncurrent assets5,250 
Cross-currency swapsPrepaid expenses and other current assets2,365 
Cross-currency swaps Other noncurrent assets246 
Total derivatives designated as hedging instruments$15,101 

The following table presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheet as of June 30, 2022:
Asset DerivativesLiability Derivatives
Balance Sheet LocationFair ValueBalance Sheet LocationFair Value
Derivatives designated as hedging instruments:
Interest rate swapsPrepaid expenses and other current assets$4,230 Accrued expenses and other current liabilities$— 
Interest rate swapsOther noncurrent assets— Other noncurrent liabilities3,184 
Cross-currency swapsPrepaid expenses and other current assets2,400 Accrued expenses and other current liabilities— 
Cross-currency swapsOther noncurrent assets846 Other noncurrent liabilities— 
Total derivatives designated as hedging instruments$7,476 $3,184 
Pre-Tax Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss
The following table presents the pre-tax effect of cash flow hedge accounting on AOCL and Consolidated Statements of Operations for the three months ended December 31, 2022 and 2021:

Derivatives in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCL on DerivativesLocation of Gain (Loss) Reclassified from AOCL into Income (Expense)Amount of Gain (Loss) Reclassified from AOCL into Income (Expense)
Three Months Ended December 31,Three Months Ended December 31,
2022202120222021
Interest rate swaps$(682)$772 Interest and other financing expense, net$1,988 $(105)
Cross-currency swaps— 593 Interest and other financing expense, net / Other expense (income), net(115)664 
Foreign currency forward contracts80 (98)Cost of sales— 26 
Total$(602)$1,267 $1,873 $585 

The following table presents the pre-tax effect of cash flow hedge accounting on AOCL and Consolidated Statements of Operations for the six months ended December 31, 2022 and 2021:

Derivatives in Cash Flow Hedging RelationshipsAmount of Gain (Loss) Recognized in AOCL on DerivativesLocation of Gain (Loss) Reclassified from AOCL into Income (Expense)Amount of Gain (Loss) Reclassified from AOCL into Income (Expense)
Six Months Ended December 31,
Six Months Ended December 31,
2022202120222021
Interest rate swaps$14,580 $655 Interest and other financing expense, net$3,135 $(209)
Cross-currency swaps— 1,369 Interest and other financing expense, net / Other expense (income), net(230)1,402 
Foreign currency forward contracts80 (79)Cost of sales— 26 
Total$14,660 $1,945 $2,905 $1,219 
The following table presents the pre-tax effect of fair value hedge accounting on AOCL and Consolidated Statements of Operations as of the three months ended December 31, 2022 and 2021:

Derivatives in Fair Value Hedging RelationshipsAmount of Loss Recognized in AOCL on DerivativesLocation of Gain Reclassified from AOCL into Income on Derivatives (Amount Excluded from Effectiveness Testing)Amount of Gain Reclassified from AOCL into Income on Derivatives (Amount Excluded from Effectiveness Testing)
Three Months Ended December 31,Three Months Ended December 31,
2022202120222021
Cross-currency swaps$(1,416)— Interest and other financing expense, net / Other expense (income), net$123 — 

The following table presents the pre-tax effect of fair value hedge accounting on AOCL and Consolidated Statements of Operations as of the six months ended December 31, 2022 and 2021:

Derivatives in Fair Value Hedging RelationshipsAmount of Gain Recognized in AOCL on DerivativesLocation of Gain Reclassified from AOCL into Income on Derivatives (Amount Excluded from Effectiveness Testing)Amount of Gain Reclassified from AOCL into Income on Derivatives (Amount Excluded from Effectiveness Testing)
Six Months Ended December 31,
Six Months Ended December 31,
2022202120222021
Cross-currency swaps$122 — Interest and other financing expense, net / Other expense (income), net$246 — 
Pre-Tax Effect of Derivative Financial Instruments Electing Cash Flow Hedge Accounting on Consolidated Statements of Operations
The following table presents the pre-tax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations for the three months ended of December 31, 2022 and 2021:

Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships
Three Months Ended December 31, 2022Three Months Ended December 31, 2021
Cost of salesInterest and other financing expense, netOther expense/income, netCost of salesInterest and other financing expense, netOther expense/income, net
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Interest rate swaps
Amount of gain (loss) reclassified from AOCL into income$— $1,988 $— $— $(105)$— 
Cross-currency swaps
Amount of (loss) gain reclassified from AOCL into income$— $(115)$— $— $44 $620 
Foreign currency forward contracts
Amount of gain reclassified from AOCL into income$— $— $— $26 $— $— 

The following table presents the pre-tax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations for the six months ended of December 31, 2022 and 2021:

Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships
Six Months Ended December 31, 2022
Six Months Ended December 31, 2021
Cost of salesInterest and other financing expense, netOther expense (income), netCost of salesInterest and other financing expense, netOther expense (income), net
The effects of cash flow hedging:
Gain (loss) on cash flow hedging relationships
Interest rate swaps
Amount of gain (loss) reclassified from AOCL into income$— $3,135 $— $— $(209)$— 
Cross-currency swaps
Amount of (loss) gain reclassified from AOCL into income$— $(230)$— $— $85 $1,317 
Foreign currency forward contracts
Amount of gain reclassified from AOCL into income$— $— $— $26 $— $— 
The following table presents the pre-tax effect of the Company’s derivative financial instruments electing fair value hedge accounting on the Consolidated Statements of Operations for the three months ended of December 31, 2022 and 2021:

Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Fair Value Hedging Relationships
Three Months Ended December 31, 2022Three Months Ended December 31, 2021
Cost of salesInterest and other financing expense, netOther expense/income, netCost of salesInterest and other financing expense, netOther expense/income, net
The effects of fair value hedging:
Gain (loss) on fair value hedging relationships
Cross-currency swaps
Amount of loss reclassified from AOCL into income$— $(2,107)$— $— $— 
The following table presents the pre-tax effect of the Company’s derivative financial instruments electing fair value hedge accounting on the Consolidated Statements of Operations for the six months ended of December 31, 2022 and 2021:

Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Fair Value Hedging Relationships
Six Months Ended December 31, 2022
Six Months Ended December 31, 2021
Cost of salesInterest and other financing expense, netOther expense (income), netCost of salesInterest and other financing expense, netOther expense (income), net
The effects of fair value hedging:
Gain (loss) on fair value hedging relationships
Cross-currency swaps
Amount of loss reclassified from AOCL into income$— $(296)$— $— $— $— 
Pre-Tax Effect of Net Investment Hedges on Accumulated Other Comprehensive Loss and the Consolidated Statements of Operations
The following table presents the pre-tax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations for the three months ended December 31, 2022 and 2021:

Derivatives in Net Investment Hedging RelationshipsAmount of (Loss) Gain Recognized in AOCL on DerivativesLocation of (Loss) Gain Recognized in (Expense) Income on DerivativesAmount of Gain (Loss) Recognized in Income (Expense) on Derivatives
Three Months Ended December 31,Three Months Ended December 31,
2022202120222021
Cross-currency swaps$(5,790)$1,849 Interest and other financing expense, net$495 $140 

The following table presents the pre-tax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations for the six months ended December 31, 2022 and 2021:

Derivatives in Net Investment Hedging RelationshipsAmount of Gain Recognized in AOCL on DerivativesLocation of (Loss) Gain Recognized in (Expense) Income on DerivativesAmount of (Loss) Gain Recognized in (Expense) Income on Derivatives
Six Months Ended December 31,Six Months Ended December 31,
2022202120222021
Cross-currency swaps$479 $4,267 Interest and other financing expense, net$990 $270 
Pre-Tax Effect of Derivative Financial Instruments Not Designated as Hedging Instruments on the Consolidated Statements of Operations