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65
period in which the hedged forecasted transaction affects earnings. We recognize the ineffective portion of the
change in fair value of the derivatives directly in earnings. Assuming our currency forward contracts continue to
qualify for hedge accounting, as of June 30, 2013, we estimate that $133 will be reclassified from accumulated
other comprehensive loss to expense during the twelve months ending June 30, 2014.
As of June 30, 2013, we had the following outstanding currency forward contracts that were used to hedge
fluctuations in the US Dollar value of forecasted transactions denominated in Canadian Dollar, Danish Krone, Great
British Pound, Swedish Krona, and Swiss Franc:
Notional Amount Effective Date Maturity Date Number of Instruments Index
$22,412 May 15, 2013 Various through
September 30, 2013 15 Various
Financial Instrument Presentation
The table below presents the fair value of our derivative financial instruments as well as their classification
on the balance sheet as of June 30, 2013 and 2012:
Asset Derivatives Liability Derivatives
June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
Derivative designated as
hedging instrument
Balance
Sheet Line
Item Fair Value
Balance
Sheet Line
Item Fair Value
Balance
Sheet Line
Item Fair Value
Balance
Sheet Line
Item Fair Value
Interest rate swaps. . .
Other
current
assets $ 344
Other
current
assets $ —
Other
current
liabilities/
other
liabilities $ (70)
Other
current
liabilities/
other
liabilities $ —
Currency forward
contracts. . . . . . . . . . .
Other
current
assets 70
Other
current
assets —
Other
current
liabilities (203)
Other
current
liabilities —
Total derivatives
designated as
hedging instruments. . $ 414 $ — $ (273) $ —
As of June 30, 2013 there is no material impact on our balance sheet presentation for the netting of
derivative financial instruments.
The following table presents the effect of our derivative financial instruments designated as hedging
instruments and their classification within comprehensive income for the fiscal years ended June 30, 2013 and
2012:
Derivatives in Hedging Relationships Amount of Gain (Loss) Recognized in Comprehensive
Income on Derivatives (Effective Portion)
Year Ended June 30,
In thousands 2013 2012
Interest Rate Swaps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 387 $ —
Currency contracts that hedge revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 280 —
Currency contracts that hedge cost of revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (263) —
Currency contracts that hedge technology and development expense . . . . . . . . . . . . . 80 —
Currency contracts that hedge general and administrative expense . . . . . . . . . . . . . . . (1) —
$ 483 $ —
Form 10-K