Company: TEAM
Filing Date: 2025-08-15
Form Type: 10-K
Source: 0001650372-25-000036
Chunk: 137

Company: Atlassian Corp
Filing Date: 2025-08-15
Form: 10-K
Item: Item 8
Chunk 137
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% in the form of ordinary units in VFT and has significant influence in VFT. The Company’s interest in VFT is accounted for using the equity method in the consolidated financial statements. Under the equity method, the Company records its proportionate share of VFT’s earnings or losses.The following table sets forth the carrying amounts of the equity method investment and the movements during fiscal years 2024 and 2025 (in thousands):

83

Equity Method InvestmentBalance as of June 30, 2023$85,436 Share of losses(11,262)Effect of change in exchange rates336 Balance as of June 30, 2024$74,510 Share of losses(20,433)Effect of change in exchange rates(958)Balance as of June 30, 2025$53,119 The carrying amount of the Company’s investment in VFT was reported within strategic investments in the Company’s Consolidated Balance Sheets.

5. Derivative ContractsThe Company has derivative instruments that are used for hedging activities as discussed below.The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2025 (in thousands):Notional Amounts of Derivative InstrumentsNotional Amount by Term to MaturityClassification by Notional AmountUnder 12 monthsOver 12 monthsTotalCash Flow HedgeNon HedgeTotalForward contracts$1,064,280 $79,858$1,144,138$765,613$378,525 $1,144,138The following table sets forth the notional amounts of the Company’s hedging derivative instruments as of June 30, 2024 (in thousands):Notional Amounts of Derivative InstrumentsNotional Amount by Term to MaturityClassification by Notional AmountUnder 12 monthsOver 12 monthsTotalCash Flow HedgeNon HedgeTotalForward contracts$837,182 $71,701$908,883$651,303$257,580 $908,883 During fiscal year 2024, the Company settled its then existing interest rate swap contracts prior to their stated termination dates as a result of the repayment of the Term Loan (defined in Note 10, “Debt.”) and received cash proceeds of $37.7 million from the counterparties. The cash proceeds are reported within net cash provided by operating activities in the Company’s Consolidated Statements of Cash Flows in fiscal year 2024. Gains resulting from the early termination of interest rate swap