Derivative Instruments and Hedging Activities

6 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company is exposed to fluctuations in the applicable exchange rate on its investments in foreign operations. While the Company does not actively hedge against changes in foreign currency, the Company has mitigated its exposure from its investments in its European operations by denominating a portion of its debt in euros. At December 31, 2016, the Company had euro-denominated debt outstanding of $717.1 million that is designated and qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the effective portions of the translation gains or losses are reported in accumulated other comprehensive income/(loss) as part of the cumulative translation adjustment. The ineffective portions of the translation gains or losses are reported in the statement of operations. The following table includes net investment hedge activity during the three and six months ended December 31, 2016 and December 31, 2015.

	Three Months Ended    December 31,				Six Months Ended    December 31,
(Dollars in millions)	2016		2015		2016		2015
Unrealized foreign exchange gain/(loss) within other comprehensive income	$	13.6	$	2.5	$	10.0	$	2.5
Unrealized foreign exchange gain/(loss) within statement of operations	$	10.2	$	4.3	$	7.6	$	4.3

The net accumulated gain of the instrument designated as the hedge as of December 31, 2016 within other comprehensive income/(loss) was approximately $91.4 million. Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity to which the gains and losses relate is either sold or substantially liquidated.