Derivatives and Hedging Activities (Tables)

6 Months Ended

Dec. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

As of December 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 December 31, 2024, the Company had the following outstanding foreign currency derivatives that were used to hedge its foreign exchange risks:


Foreign Currency Derivative	Number of Instruments	Notional Sold		Notional Purchased
Foreign currency forward contract	12	£	26,805	€	31,850

As of December 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 December 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 December 31, 2024 and June 30, 2024, 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
	December 31, 2024		June 30, 2024		December 31, 2024			June 30, 2024
Intercompany loan receivable	$	25,572	$	26,465	$	(893	)	$	(480	)

Schedule of Derivative Financial Instruments and Classification on Consolidated Balance Sheets

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, 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	$	4,263	Accrued expenses and other current liabilities	$	—
Interest rate swaps	Other noncurrent assets		3,317	Other noncurrent liabilities		—
Cross-currency swaps	Prepaid expenses and other current assets		2,388	Accrued expenses and other current liabilities		—
Cross-currency swaps	Other noncurrent assets		—	Other noncurrent liabilities		472
Foreign currency forward contracts	Prepaid expenses and other current assets		—	Accrued expenses and other current liabilities		456
Total derivatives designated as hedging instruments		$	9,968		$	928

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, 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	$	7,455	Accrued expenses and other current liabilities	$	—
Interest rate swaps	Other noncurrent assets		5,151	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		3,333
Total derivatives designated as hedging instruments		$	14,982		$	3,333

Schedule of Hedges Included Cash Flow Hedges, Net Investment Hedges and Fair Value Hedges on Accumulated Other Comprehensive Income Loss

The following table presents the pre-tax effect of the Company’s cash flow hedges, net investment hedges, and fair value hedges on AOCL for the three and six months ended December 31, 2024 and 2023:


	Amount of Gain (Loss) Recognized in AOCL on Derivatives
	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	6,389		$	(7,725	)	$	(978	)	$	(2,247	)
Foreign currency forward contracts		(456	)		10			(456	)		51
Derivatives in net investment hedging relationships:
Cross-currency swaps		6,579			(3,979	)		3,297			(1,663	)
Derivatives in fair value hedging relationships:
Cross-currency swaps		1,620			(981	)		811			(409	)
	$	14,132		$	(4,960	)	$	4,108		$	(2,072	)

Schedule of Pre-tax Effect of Cash Flow Hedges, Net Investment Hedges and Fair Value Hedges on the Consolidated Statements of Operations, Recorded in Interest and Other Financing Expense, Net

The following table presents the pre-tax effect of the Company’s cash flow hedges, net investment hedges, and fair value hedges on the consolidated statements of operations, recorded in interest and other financing expense, net, for the three and six months ended December 31, 2024 and 2023:


	Amount of Gain Reclassified from AOCL into Income (Expense)
	Three Months Ended December 31,					Six Months Ended December 31,
	2024		2023			2024		2023
Derivatives in cash flow hedging relationships:
Interest rate swaps	$	1,840	$	2,393		$	4,176	$	4,675
Derivatives in net investment hedging relationships:
Cross-currency swaps		495		495			989		990
Derivatives in fair value hedging relationships:
Cross-currency swaps(1)		2,099		(1,028	)		1,140		(75	)
	$	4,434	$	1,860		$	6,305	$	5,590

(1)

Net of amount that is excluded from effectiveness testing. Amount of gain, excluded from effectiveness testing, reclassified from AOCL into income for the three months ended December 31, 2024 and 2023 was $123. Amount of gain, excluded from effectiveness testing, reclassified from AOCL into income for the six months ended December 31, 2024 and 2023 was $247.

- 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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