Derivative Instruments and Hedging Activities

12 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Risk Management Objective of Using Derivatives

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 the exposure of its investments in its European operations by denominating a portion of its debt in euros. At June 30, 2017, the Company had euro-denominated debt outstanding of $776.3 million that qualifies as a hedge of a net investment in foreign operations. For non-derivatives designated and qualifying as net investment hedges, the effective portion 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 fiscal year ended June 30, 2017 and June 30, 2016:

(Dollars in millions)	June 30,   2017			June 30,   2016
Unrealized foreign exchange gain/(loss) within other comprehensive income	$	(21.3	)	$	1.8
Unrealized foreign exchange gain/(loss) within statement of operations	$	(21.3	)	$	3.9

The net accumulated gain of this net investment as of June 30, 2017 within accumulated other comprehensive income/(loss) was approximately $60.1 million. Amounts are reclassified out of accumulated other comprehensive income/(loss) into earnings when the entity to which the gains and losses reside is either sold or substantially liquidated.