Financial Instruments (Notes)

6 Months Ended

Dec. 31, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Measurements And Financial Instruments Disclosure [Text Block]

Financial instruments

The Company’s financial instruments consist primarily of cash and cash equivalents, marketable securities and other short-term investments, long-term investments, and accounts receivable as well as obligations under accounts payable, trade, notes payable and long-term debt. Due to their short-term nature, the carrying values for cash and cash equivalents, marketable securities and other short-term investments, accounts receivable, accounts payable, trade and notes payable approximate fair value. The carrying value of long-term debt (excluding capital leases) and estimated fair value of long-term debt (excluding capital leases) are as follows:

	December 31, 2014		June 30, 2014
Carrying value of long-term debt (excluding capital leases)	$	2,967,468	$	1,508,420
Estimated fair value of long-term debt (excluding capital leases)	3,242,988		1,708,723

The fair value of long-term debt was determined based on observable market prices in the active market in which the security is traded and is classified within level 2 of the fair value hierarchy.

The Company utilizes derivative and non-derivative financial instruments, including forward exchange contracts, costless collar contracts, cross-currency swap contracts and certain foreign denominated debt designated as net investment hedges, to manage foreign currency transaction and translation risk. The derivative financial instrument contracts are with major investment grade financial institutions and the Company does not anticipate any material non-performance by any of the counterparties. The Company does not hold or issue derivative financial instruments for trading purposes.

The Company’s Euro bonds and Japanese Yen credit facility have each been designated as a hedge of the Company’s net investment in certain foreign subsidiaries. The translation of the Euro bonds and Japanese Yen credit facility into U.S. dollars is recorded in accumulated other comprehensive (loss) and remains there until the underlying net investment is sold or substantially liquidated.

Derivative financial instruments are recognized on the Consolidated Balance Sheet as either assets or liabilities and are measured at fair value.

The following summarizes the location and fair value of derivative financial instruments reported in the Consolidated Balance Sheet as of December 31, 2014 and June 30, 2014:

	Balance Sheet Caption	December 31, 2014		June 30, 2014
Net investment hedges
Cross-currency swap contracts	Other liabilities	$	9,971	$	45,790
Cash flow hedges
Costless collar contracts	Non-trade and notes receivable	4,408		3,508
Forward exchange contracts	Non-trade and notes receivable	432		(41		)
Costless collar contracts	Other accrued liabilities	4,772		378

The cross-currency swap and costless collar contracts are reflected on a gross basis in the Consolidated Balance Sheet. The presentation of forward exchange contracts is on a net basis, the effect of which is immaterial to the Consolidated Balance Sheet. The Company has not entered into any master netting arrangements.

Gains or losses on derivatives that are not hedges are adjusted to fair value through the cost of sales caption in the Consolidated Statement of Income. Gains or losses on derivatives that are hedges are adjusted to fair value through accumulated other comprehensive (loss) in the Consolidated Balance Sheet until the hedged item is recognized in earnings.

The cross-currency swap contracts have been designated as hedging instruments. The costless collar contracts and forward exchange contracts have not been designated as hedging instruments and are considered to be economic hedges of forecasted transactions.

15. Financial instruments, cont'd

Gains (losses) on derivative financial instruments that were recorded in the Consolidated Statement of Income are as follows:

	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2014			2013			2014			2013
Forward exchange contracts	$	462		$	(595	)	$	479		$	(624	)
Costless collar contracts	(24		)	3,729			(1,364		)	6,720

Gains (losses) on derivative and non-derivative financial instruments that were recorded in accumulated other comprehensive (loss) in the Consolidated Balance Sheet are as follows:

	Three Months Ended					Six Months Ended
	December 31,					December 31,
	2014		2013			2014		2013
Cross-currency swap contracts	$	10,233	$	(4,852	)	$	22,128	$	(11,488	)
Foreign denominated debt	9,255		(296		)	25,145		(6,882		)

There was no ineffectiveness of the cross-currency swap contracts or foreign denominated debt, nor was any portion of these financial instruments excluded from the effectiveness testing, during the six months ended December 31, 2014 and 2013.

A summary of financial assets and liabilities that were measured at fair value on a recurring basis at December 31, 2014 and June 30, 2014 are as follows:

			Quoted Prices		Significant Other		Significant
	Total		In Active		Observable		Unobservable
	Value at		Markets		Inputs		Inputs
	December 31, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Fixed income mutual funds	$	118,417	$	62,378	$	56,039	$	—
Derivatives	4,840		—		4,840		—
Liabilities:
Derivatives	14,743		—		14,743		—

			Quoted Prices		Significant Other		Significant
	Total		In Active		Observable		Unobservable
	Value at		Markets		Inputs		Inputs
	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
Derivatives	$	3,508	$	—	$	3,508	$	—
Liabilities:
Derivatives	46,209		—		46,209		—

15. Financial instruments, cont'd

Fixed income mutual funds consist of investments in mutual funds with variable net asset values. The fixed income mutual funds' fair values are determined using both the closing market price reported in the active market in which the fund is traded and the market price for similar assets that are traded in an active market.

Derivatives consist of forward exchange, costless collar and cross-currency swap contracts, the fair values of which are calculated using market observable inputs including both spot and forward prices for the same underlying currencies. The calculation of fair value of the cross-currency swap contracts also utilizes a present value cash flow model that has been adjusted to reflect the credit risk of either the Company or the counterparty.

There are no other financial assets or financial liabilities that are marked to market on a recurring basis. Fair values are transferred between levels of the fair value hierarchy when facts and circumstances indicate that a change in the method of estimating the fair value of a financial asset or financial liability is warranted.