| Supplemental Equity and Accumulated Other Comprehensive Income (Loss) |
Note 7. Supplemental Equity and Accumulated Other Comprehensive Income (Loss):
Accumulated Other Comprehensive Income (Loss)
The components of Other comprehensive income (loss) consist of changes in foreign currency translation adjustments and changes in net unrealized gains (losses) on derivative instruments designated as cash flow hedges. The accumulated balances related to each component of Other comprehensive income (loss) are summarized as follows (in thousands):
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|
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Quarter ended September 30, 2026 (in thousands): |
|
|
|
|
|
|
|
|
Foreign |
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|
|
|
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Currency |
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|
|
|
|
Translation |
|
|
|
|
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Adjustments |
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Total |
Balance as of June 30, 2026, net of tax: |
|
$ |
(70,580) |
|
$ |
(70,580) |
Other comprehensive income (loss), before tax: |
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|
|
|
|
|
Amounts before reclassifications |
|
|
(1,171) |
|
|
(1,171) |
Amounts reclassified out |
|
|
726 |
|
|
726 |
Total other comprehensive income (loss), before tax |
|
|
(445) |
|
|
(445) |
Tax (expense)/benefit |
|
|
(172) |
|
|
(172) |
Total other comprehensive income (loss), net of tax |
|
|
(617) |
|
|
(617) |
Balance as of September 30, 2026, net of tax |
|
$ |
(71,197) |
|
$ |
(71,197) |
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|
|
|
|
|
|
|
|
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Quarter ended September 30, 2025 (in thousands): |
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Unrealized |
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|
|
|
|
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|
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Gains |
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Foreign |
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|
|
|
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(Losses) on |
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Currency |
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|
|
|
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Derivative |
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Translation |
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|
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Instruments |
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Adjustments |
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Total |
Balance as of June 30, 2025, net of tax: |
|
$ |
2,536 |
|
$ |
(62,416) |
|
$ |
(59,880) |
Other comprehensive income (loss), before tax: |
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|
|
|
|
|
|
|
|
Amounts before reclassifications |
|
|
(3,169) |
|
|
(3,318) |
|
|
(6,487) |
Amounts reclassified out |
|
|
1,921 |
|
|
613 |
|
|
2,534 |
Total other comprehensive income (loss), before tax |
|
|
(1,248) |
|
|
(2,705) |
|
|
(3,953) |
Tax (expense)/benefit |
|
|
(417) |
|
|
(145) |
|
|
(562) |
Total other comprehensive income (loss), net of tax |
|
|
(1,665) |
|
|
(2,850) |
|
|
(4,515) |
Balance as of September 30, 2025, net of tax(1) |
|
$ |
871 |
|
$ |
(65,266) |
|
$ |
(64,395) |
| (1) |
The Company had a net deferred tax liability for its cash flow hedge of $0.3 million as of September 30, 2025.
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Income taxes are not provided for foreign translation relating to permanent investments in international subsidiaries, but tax effects within foreign currency translation adjustments do include impacts from the net investment hedge.
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