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DERIVATIVES AND HEDGING | 12 Months Ended
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Jul. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES AND HEDGING | DERIVATIVES AND HEDGING At times, the Company uses interest rate swap agreements, foreign currency forward contracts and certain non-derivative financial instruments to help manage its risks associated with foreign currency exchange rates and interest rates. The Company records derivatives as assets and liabilities on the balance sheet at fair value. Changes in the fair value of derivative instruments are recognized in earnings unless the derivative qualifies and is designated as a hedge. Cash flows from derivatives are classified in the Consolidated Statements of Cash Flows in the same category as the cash flows from the items subject to designated hedge or undesignated (economic) hedge relationships. The Company evaluates hedge effectiveness at inception and on an ongoing basis. If a derivative is no longer expected to be effective, hedge accounting is discontinued. Certain of the Company’s derivative transactions were subject to master netting arrangements that allow the Company to net settle contracts with the same counterparties. These arrangements generally do not call for collateral and as of the applicable dates presented below, no cash collateral had been received or pledged related to the underlying derivatives. As of July 31, 2023 there were not any derivative instruments designated as cash flow hedges. As of July 31, 2022, the fair value of our derivative instruments designated as cash flow hedges, and the associated notional amounts, presented on a pre-tax basis, were as follows:
|  |  |  | July 31, 2022 |  |  |
Cash Flow Hedges |  |  |  |  |  |  |  | Notional |  | Fair Value in Other Current Assets |  | Fair Value in Other Current Liabilities |  |  |
Foreign currency forward contracts |  |  |  |  |  |  |  | $ | 33,997 |  |  | $ | — |  |  | $ | 80 |  |  |  |
Interest rate swap agreements |  |  |  |  |  |  |  | 273,325 |  |  | 850 |  |  | — |  |  |  |
Total derivative financial instruments |  |  |  |  |  |  |  | $ | 307,322 |  |  | $ | 850 |  |  | $ | 80 |  |  |  |
The Company previously held interest rate swaps to convert a portion of the Company’s long-term debt from floating rate to fixed rate debt to partially hedge the interest rate risk related to the Company’s U.S. dollar term loan tranche that matures in February 2026. Foreign currency forward contracts outstanding at July 31, 2022 were used to exchange British Pounds Sterling for Euro. Effective August 1, 2022, the Company's foreign currency forward contracts were no longer designated as cash flow hedges. Net Investment Hedges The Company designates a portion of its outstanding Euro-denominated term loan tranche as a hedge of foreign currency exposures related to investments the Company has in certain Euro-denominated functional currency subsidiaries. The foreign currency transaction gains and losses on the Euro-denominated portion of the term loan, which is designated and effective as a hedge of the Company’s net investment in its Euro-denominated functional currency subsidiaries, are included as a component of the foreign currency translation adjustment. Gains (losses), net of tax, included in the foreign currency translation adjustment were $(27,211), $62,244, and $(1,943) for the fiscal years ended July 31, 2023, July 31, 2022 and July 31, 2021, respectively. There were no amounts reclassified out of accumulated other comprehensive income (“AOCI”) pertaining to the net investment hedge during the fiscal years ended July 31, 2023, 2022 and 2021. Derivatives Not Designated as Hedging Instruments The Company has certain other derivative instruments which have not been designated as hedges. These other derivative instruments had a notional amount totaling approximately $25,248 and a fair value liability of $932 as of July 31, 2023. These other derivative instruments had a notional amount totaling approximately $25,628 and a fair value liability of $1,077 as of July 31, 2022. For these derivative instruments, changes in fair value are recognized in earnings. The total amounts presented in the Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the following derivative instruments for the fiscal years ended July 31, 2023, 2022 and 2021 are as follows:
|  | 2023 |  | 2022 |  | 2021
Gain (Loss) on Derivatives Designated as Cash Flow Hedges |  |  |  |  |  |
Gain (loss) recognized in Other comprehensive income (loss), net of tax |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | 6 |  |  | $ | (63) |
Interest rate swap agreements (1) |  | (675) |  |  | 9,324 |  |  | 10,231 |
Total gain (loss) |  | $ | (675) |  |  | $ | 9,330 |  |  | $ | 10,168 |
(1)Other comprehensive income (loss), net of tax, before reclassification from AOCI was $702, $3,626 and $340 for fiscal years 2023, 2022 and 2021, respectively.
|  | 2023
|  | Sales |  |  |  | Interest Expense
Gain (Loss) Reclassified from AOCI, Net of Tax |  |  |  |  |  |
Foreign currency forward contracts |  | $ | (58) |  |  |  |  | $ | — |
Interest rate swap agreements |  | — |  |  |  |  | 1,377 |
Gain (Loss) on Derivatives Not Designated as Hedging Instruments |  |  |  |  |  |
Amount of gain (loss) recognized in income, net of tax |  |  |  |  |  |
Foreign currency forward contracts |  | 2,742 |  |  |  |  | — |
Commodities swap agreements |  | (2,229) |  |  |  |  | — |
Interest rate swap agreements |  | — |  |  |  |  | 167 |
Total gain (loss) |  | $ | 455 |  |  |  |  | $ | 1,544 |
|  | 2022
|  | Sales |  |  |  | Interest Expense
Gain (Loss) Reclassified from AOCI, Net of Tax |  |  |  |  |  |
Foreign currency forward contracts |  | $ | (723) |  |  |  |  | $ | — |
Interest rate swap agreements |  | — |  |  |  |  | (5,698) |
Gain (Loss) on Derivatives Not Designated as Hedging Instruments |  |  |  |  |  |
Amount of gain (loss) recognized in income, net of tax |  |  |  |  |  |
Interest rate swap agreements |  | — |  |  |  |  | 428 |
Total gain (loss) |  | $ | (723) |  |  |  |  | $ | (5,270) |
|  | 2021
|  | Sales |  |  |  | Interest Expense
Gain (Loss) Reclassified from AOCI, Net of Tax |  |  |  |  |  |
Foreign currency forward contracts |  | $ | (1,050) |  |  |  |  | $ | — |
Interest rate swap agreements |  | — |  |  |  |  | (9,891) |
Gain (Loss) on Derivatives Not Designated as Hedging Instruments |  |  |  |  |  |
Amount of gain (loss) recognized in income, net of tax |  |  |  |  |  |
Interest rate swap agreements |  | — |  |  |  |  | (85) |
Total gain (loss) |  | $ | (1,050) |  |  |  |  | $ | (9,976) |

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- 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 No definition available. + Details
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