Derivative Instruments and Hedging Activities

6 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities [Abstract]

Derivative Instruments and Hedging Activities

16. Derivative Instruments and Hedging Activities

In the normal course of business, the Company is exposed to fluctuations in interest rates and the exchange rates associated with foreign currencies. During the three and six months ended December 31, 2016, the Company used derivative instruments to reduce the volatility of earnings associated with changes in foreign currency exchange rates. The Company used foreign exchange forward contracts to mitigate the gains and losses generated from the re-measurement of certain foreign monetary assets and liabilities, primarily including cash balances, third party accounts receivable and intercompany transactions recorded on the balance sheet. These derivatives are not designated and do not qualify as hedge instruments. Accordingly, changes in the fair value of these instruments are recognized in other income and expenses during the period of change. These derivatives have maturities of approximately one month. The foreign exchange forward contracts outstanding as of December 31, 2016 were entered into by the Company on the last business day of the period. Given the relatively short duration such contracts are outstanding in relation to changes in potential market rates; the change in the fair value is not material and is not reflected either as an asset or a liability.

The following table presents the gross notional value of all of the Company’s foreign exchange forward contracts outstanding as of December 31, 2016 and June 30, 2016 (in thousands):

	December 31, 2016
	Local Currency Amount		Notional Contract Amount (USD)
Australian dollar	$	830	$	590
British pound	£	1,390		1,698
Canadian dollar	$	1,980		1,457
Euro	€	1,230		1,282
Total			$	5,027

	June 30, 2016
	Local Currency Amount		Notional Contract Amount (USD)
Australian dollar	$	1,800	$	1,316
British pound	£	830		1,088
Canadian dollar	$	940		718
Euro	€	1,500		1,650
Total			$	4,772