Derivative Financial Instruments

9 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Note 6. Derivative Financial Instruments

The Company utilizes foreign currency forward contracts with reputable financial institutions to manage its exposure of fluctuations in foreign currency exchange rates on certain intercompany balances and foreign currency denominated cash, customer

receivables and liabilities. The Company does not use derivative financial instruments for speculative or trading purposes. These forward contracts are not designated as hedging instruments for accounting purposes. Principal hedged currencies primarily include the Japanese Yen, Swiss Franc, and Euro. The periods of these forward contracts range up to approximately three months and the notional amounts are intended to be consistent with changes in the underlying exposures.

The notional amount of the Company's outstanding forward currency exchange contracts consisted of the following (in thousands):


	March 31, 2024		June 30, 2023
Swiss Franc	$	38,637	$	26,867
Chinese Yuan		5,310		249
Euro		15,613		17,885
British Pound		1,307		516
Indian Rupee		8,215		3,539
Korean Won		900		—
Canadian Dollar		1,400		—
Japanese Yen		9,151		12,492
Total outstanding forward currency exchange contracts	$	80,533	$	61,548

Gains and losses on the Company's foreign currency forward contracts are recorded in Other expense, net, on the Company's unaudited condensed consolidated statements of operations. The following table provides information about the gain or loss associated with the Company’s derivative financial instruments not designated as hedging instruments (in thousands):


	Three Months Ended March 31,					Nine Months Ended March 31,
	2024			2023		2024			2023
Foreign currency exchange gain (loss) on forward contracts	$	(1,577	)	$	127	$	(1,436	)	$	888