DERIVATIVES AND HEDGING ACTIVITIES (Tables)

9 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of March 31, 2024, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk:


Interest Rate Derivative	Number of Instruments	Notional Amount
Interest Rate Swap	4	$400,000

As of March 31, 2024, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risk.


Foreign Currency Derivative	Number of Instruments	Notional Sold	Notional Purchased

Foreign currency forward contract	1	£444	€520

As of March 31, 2024, the Company had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations:


Foreign Currency Derivative	Number of Instruments	Notional Sold	Notional Purchased
Cross-currency swap	4	€100,300	$105,804

As of March 31, 2024, 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 Derivative	Number of Instruments	Notional Sold	Notional Purchased
Cross-currency swap	1	€24,700	$26,021

As of March 31, 2024 and June 30, 2023, the following amounts were recorded on the Consolidated Balance Sheets 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

	March 31, 2024		June 30, 2023		March 31, 2024		June 30, 2023
Intercompany loan receivable	$	26,648	$	26,945	$	(297)	$	924

Schedule of 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 March 31, 2024:


	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps	Prepaid expenses and other current assets	$	7,470	Accrued expenses and other current liabilities	$	—
Interest rate swaps	Other noncurrent assets	5,194		Other noncurrent liabilities	—
Cross-currency swaps	Prepaid expenses and other current assets	2,376		Accrued expenses and other current liabilities	—
Cross-currency swaps	Other noncurrent assets	—		Other noncurrent liabilities	4,196
Foreign currency forward contracts	Prepaid expenses and other current assets	—		Other noncurrent liabilities	1
Total derivatives designated as hedging instruments		$	15,040		$	4,197

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, 2023:


	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Interest rate swaps	Prepaid expenses and other current assets	$	8,649	Accrued expenses and other current liabilities	$	—
Interest rate swaps	Other noncurrent assets	5,974		Other noncurrent liabilities	—
Cross-currency swaps	Prepaid expenses and other current assets	2,365		Accrued expenses and other current liabilities	—
Cross-currency swaps	Other noncurrent assets	—		Other noncurrent liabilities	3,160

Total derivatives designated as hedging instruments		$	16,988		$	3,160

Schedule of Pre-Tax Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Loss

The following table presents the pretax effect of cash flow hedge accounting on AOCL and Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:


Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in AOCL on Derivatives				Location of Gain (Loss) Reclassified from AOCL into Income (Expense)	Amount of Gain (Loss) Reclassified from AOCL into Income (Expense)
	Three Months Ended March 31,					Three Months Ended March 31,
	2024		2023			2024		2023
Interest rate swaps	$	7,274	$	(4,285)	Interest and other financing expense, net	$	2,363	$	1,792
Cross-currency swaps	—		—		Interest and other financing expense, net / Other expense (income), net	—		(46)
Foreign currency forward contracts	(1)		—		Cost of sales	(10)		—
Total	$	7,273	$	(4,285)		$	2,353	$	1,746

The following table presents the pretax effect of cash flow hedge accounting on AOCL and Consolidated Statements of Operations for the nine months ended March 31, 2024 and 2023:


Derivatives in Cash Flow Hedging Relationships	Amount of Gain Recognized in AOCL on Derivatives				Location of Gain (Loss) Reclassified from AOCL into Income (Expense)	Amount of Gain (Loss) Reclassified from AOCL into Income (Expense)
	Nine Months Ended March 31,					Nine Months Ended March 31,
	2023		2022			2023		2022
Interest rate swaps	$	5,028	$	10,295	Interest and other financing expense, net	$	7,037	$	4,927
Cross-currency swaps	—		—		Interest and other financing expense, net / Other expense (income), net	—		(276)
Foreign currency forward contracts	50		80		Cost of sales	(10)		—
Total	$	5,078	$	10,375		$	7,027	$	4,651

The following table presents the pretax effect of fair value hedge accounting on AOCL and Consolidated Statements of Operations as of the three months ended March 31, 2024 and 2023:


Derivatives in Fair Value Hedging Relationships	Amount of Gain (Loss) Recognized in AOCL on Derivatives				Location 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 March 31,					Three Months Ended March 31,
	2024		2023			2024		2023

Cross-currency swaps	$	572	$	(38)	Interest and other financing expense, net / Other expense (income), net	$	122	$	121

The following table presents the pretax effect of fair value hedge accounting on AOCL and Consolidated Statements of Operations as of the nine months ended March 31, 2024 and 2023:


Derivatives in Fair Value Hedging Relationships	Amount of Gain Recognized in AOCL on Derivatives				Location 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)
	Nine Months Ended March 31,					Nine Months Ended March 31,
	2023		2022			2023		2022

Cross-currency swaps	$	163	$	85	Interest and other financing expense, net / Other expense (income), net	$	369	$	367

Schedule of Pre-Tax Effect of Derivative Financial Instruments Electing Cash Flow Hedge Accounting on Consolidated Statements of Operations

The following table presents the pretax effect of the Company’s derivative financial instruments electing cash flow hedge accounting on the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:


				Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships
				Three Months Ended March 31, 2024				Three Months Ended March 31, 2023
				Cost of sales		Interest and other financing expense, net			Cost of sales		Interest and other financing expense, net
The effects of cash flow hedging:
	Gain (loss) on cash flow hedging relationships
		Interest rate swaps
			Amount of gain reclassified from AOCL into income	$	—	$	2,343		$	—	$	1,792

		Cross-currency swaps
			Amount of loss reclassified from AOCL into income	$	—	$	—		$	—	$	(46)

		Foreign currency forward contracts
			Amount of gain reclassified from AOCL into income	$	10	$	—		$	—	$	—


				Location and Amount of Gain (Loss) Recognized in the Consolidated Statement of Operations on Cash Flow Hedging Relationships
				Nine Months Ended March 31, 2024				Nine Months Ended March 31, 2023
				Cost of sales		Interest and other financing expense, net			Cost of sales		Interest and other financing expense, net
The effects of cash flow hedging:
	Gain (loss) on cash flow hedging relationships
		Interest rate swaps
			Amount of gain reclassified from AOCL into income	$	—	$	7,017		$	—	$	4,088

		Cross-currency swaps
			Amount of loss reclassified from AOCL into income	$	10	$	—		$	—	$	(276)

The following table presents the pretax effect of the Company’s derivative financial instruments electing fair value hedge accounting on the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:

Location and Amount of Loss (Gain) Recognized in the Consolidated Statement of Operations on Fair Value Hedging Relationships

Three Months Ended March 31, 2024

Three Months Ended March 31, 2023

Interest and other financing expense, net

The effects of fair value hedging:

Loss on fair value hedging relationships

Cross-currency swaps

Amount of loss (gain) reclassified from AOCL into income

740

(210)

Location and Amount of Loss (Gain) Recognized in the Consolidated Statement of Operations on Fair Value Hedging Relationships

Nine Months Ended March 31, 2024

Nine Months Ended March 31, 2023

Interest and other financing expense, net

The effects of fair value hedging:

Loss on fair value hedging relationships

Cross-currency swaps

Amount of loss (gain) reclassified from AOCL into income

666

(506)

Schedule of Pre-Tax Effect of Net Investment Hedges on Accumulated Other Comprehensive Loss and the Consolidated Statements of Operations

The following table presents the pretax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023:


Derivatives in Net Investment Hedging Relationships	Amount of Gain (Loss) Recognized in AOCL on Derivatives				Location of Gain Recognized in Income on Derivatives	Amount of Gain Recognized in Income on Derivatives
	Three Months Ended March 31,					Three Months Ended March 31,
	2024		2023			2024		2023
Cross-currency swaps	$	2,322	$	(144)	Interest and other financing expense, net	$	489	$	484

The following table presents the pretax effect of the Company’s net investment hedges on AOCL and the Consolidated Statements of Operations for the nine months ended March 31, 2024 and 2023:


Derivatives in Net Investment Hedging Relationships	Amount of Gain Recognized in AOCL on Derivatives				Location of Gain Recognized in Income on Derivatives	Amount of Gain Recognized in Income on Derivatives
	Nine Months Ended March 31,					Nine Months Ended March 31,
	2024		2023			2024		2023
Cross-currency swaps	$	659	$	335	Interest and other financing expense, net	$	1,479	$	1,474

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

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