XML 33 R22.htm IDEA: XBRL DOCUMENT
v3.25.1

Derivative financial instruments | 6 Months Ended
--- | ---
Apr. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative financial instruments | Derivative financial instruments The Company uses derivative instruments to manage foreign currency and interest rate risk as detailed below. Foreign Currency Forward Contracts We operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Condensed Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. The settlement of these contracts is recorded in operating activities on the Condensed Consolidated Statement of Cash Flows. For the three months ended April 30, 2025, we recognized a net gain of $22,315 on foreign currency forward contracts and a net loss of $25,513 from the change in fair value of balance sheet positions. For the three months ended April 30, 2024, we recognized a net loss of $6,423 on foreign currency forward contracts and a net gain of $5,298 from the change in fair value of balance sheet positions. For the six months ended April 30, 2025, we recognized a net gain of $17,951 on foreign currency forward contracts and a realized net loss of $20,819 from the change in fair value of balance sheet positions. For the six months ended April 30, 2024, we recognized a net gain of $5,671 on foreign currency forward contracts and a net loss of $7,618 from the change in fair value of balance sheet positions. The fair values of our foreign currency f orward contract assets and liabilities are included in Receivable-net and Accrued liabilities, respectively, in our Consolidated Balance Sheets. The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2025 and 2024:
April 30, 2025 contract amounts: |  | Notional Sell Amounts |  | Notional Buy Amounts
Euro |  | $ | 152,965 |  |  | $ | 216,275 |
British pound |  | 20,659 |  |  | 171,023 |
Japanese yen |  | 27,285 |  |  | 33,238 |
Mexican Peso |  | 3,413 |  |  | 25,522 |
Hong Kong dollar |  | 1,296 |  |  | 5,691 |
Singapore dollar |  | 1,667 |  |  | 26,579 |
Australian dollar |  | 1,085 |  |  | 9,568 |
Taiwan Dollar |  | — |  |  | 8,000 |
Others |  | 11,019 |  |  | 71,142 |
Total |  | $ | 219,389 |  |  | $ | 567,038 |
April 30, 2024 contract amounts: |  | Notional Sell Amounts |  | Notional Buy Amounts
Euro |  | $ | 137,867 |  |  | $ | 145,019 |
British pound |  | 17,490 |  |  | 181,427 |
Mexican Peso |  | 927 |  |  | 32,979 |
Japanese yen |  | 18,665 |  |  | 27,588 |
Hong Kong dollar |  | 3,739 |  |  | 7,438 |
Singapore dollar |  | 109 |  |  | 19,867 |
Australian dollar |  | 331 |  |  | 9,441 |
Taiwan Dollar |  | — |  |  | 8,000 |
Others |  | 4,886 |  |  | 86,152 |
Total |  | $ | 184,014 |  |  | $ | 517,911 |
We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the three and six months ended April 30, 2025 and 2024, there were no significant concentrations of credit risk. Treasury Locks During the fourth quarter of 2024, the Company entered into treasury locks to fix the interest rate related to $250,000 of the $600,000 aggregate principal amount of 2029 Notes issued on September 4, 2024. The derivative positions were closed when the debt was priced on September 4, 2024 with a cash settlement net payment of $2,306 that offset changes in the benchmark treasury rate between execution of the treasury rate locks and the debt pricing date. These derivatives were designed as cash flow hedges and the deferred amount reported in AOCI is being reclassed to interest expense as payments are made on the notes through the maturity date. Net Investment Hedges Net assets of our foreign subsidiaries are exposed to volatility in foreign currency exchange rates. We may utilize net investment hedges to offset the translation adjustment arising from re-measuring our investment in foreign subsidiaries. As of April 30, 2025, the Company was party to various cross currency swaps between the U.S. Dollar and Euro, Japanese Yen, Taiwan Dollar, Singapore Dollar and Chinese Yuan, which were designated as hedges of our net investments in certain foreign subsidiaries to mitigate the foreign exchange risk associated with certain investments in these subsidiaries. Any increases or decreases related to the remeasurement of the hedges are recorded in the currency translation component of Accumulated other comprehensive income (loss) within Shareholders' Equity in the Consolidated Balance Sheet until the sale or substantial liquidation of the underlying investments. A loss of $49,122 and a loss of $20,602, net of tax, was recorded for the three and six months ended April 30, 2025, respectively, compared to a gain of $7,348 and a loss of $4,507, net of tax, for the three and six months ended April 30, 2024, respectively. The following table summarizes the fair values of our net investment contracts designated as net investment hedges in the Company's Condensed Consolidated Balance Sheets as of April 30, 2025:
|  | Prepaid expenses and other current assets |  | Other assets |  | Accrued liabilities |  | Other long-term liabilities
Net investment contracts |  | $ | 5,132 |  |  | $ | — |  |  | $ | 3,865 |  |  | $ | 51,916 |
Fair Value Hedges of Interest Rate Risk The Company is exposed to changes in the fair value of certain of its fixed-rate liabilities due to changes in benchmark interest rates. The Company uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate, SOFR, with the objective of minimizing the cost of borrowed funds. The Company's interest rate swaps involve the receipt of fixed-rate amounts from a counterparty in exchange for the Company making variable-rate payments without the exchange of the underlying notional amount. The Company's interest rate swaps are designated and qualify as fair value hedges. As a result, the interest rate swaps are measured at fair value and the carrying value of the hedged debt is adjusted for the change in value related to the exposure being hedged, with both adjustments offset to earnings. Accordingly, the earnings effect of an increase in the fair value of the interest rate swaps will be substantially offset by the earnings effect of the increase in the carrying value of the hedged debt. The net impact of fair value hedge accounting for interest rate swaps is recognized in Interest expense. A loss of $28 and a loss of $72, net of tax, was recorded for the three and six months ended April 30, 2025, respectively. The fair values of our interest rate swap assets are included in Prepaid expenses and other current assets and Other assets in our Consolidated Balance Sheets. The following table provides information regarding the Company's outstanding interest rate derivatives that were used to hedge changes in fair value attributable to interest rate risk:
|  | Interest rate swaps - notional amount |  | Cumulative adjustment to long-term debt from application of hedge accounting |  | Carrying value of hedged debt |  |
Interest rate swaps |  | $ | 300,000 |  |  | $ | 12,567 |  |  | $ | 312,567 |  |  |

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 825 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/825/tableOfContent + Details
Name: | us-gaap_FinancialInstrumentsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration