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Derivatives and Hedging | 6 Months Ended
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Jan. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging | Derivatives and Hedging 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:
| January 31, 2023 |  | July 31, 2022
|  |  | Fair Value in |  | Fair Value in |  |  |  | Fair Value in |  | Fair Value in
|  |  | Other Current |  | Other Current |  |  |  | Other Current |  | Other Current
Cash Flow Hedges | Notional |  | Assets |  | Liabilities |  | Notional |  | Assets |  | Liabilities
Foreign currency forward contracts | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 33,997 |  |  | $ | — |  |  | $ | 80 |
Interest rate swap agreements | 165,263 |  |  | 961 |  |  | — |  |  | 273,325 |  |  | 850 |  |  | — |
Total derivative financial instruments | $ | 165,263 |  |  | $ | 961 |  |  | $ | — |  |  | $ | 307,322 |  |  | $ | 850 |  |  | $ | 80 |
The Company previously entered into 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. The notional amounts hedged will decrease on a quarterly basis to zero by August 1, 2023. Effective August 1, 2022, the Company's foreign currency forward contracts used to exchange British Pounds Sterling ("GBP") for Euro were no longer designated as cash flow hedges and therefore excluded from the table above as of January 31, 2023. Net Investment Hedges 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. Losses, net of tax, included in the foreign currency translation adjustments were $30,297 for the three months ended January 31, 2023 and $20,912 for the six months ended January 31, 2023. Gains, net of tax, included in the foreign currency translation adjustments were $18,388 for the three months ended January 31, 2022 and $27,628 for the six months ended January 31, 2022. There were no amounts reclassified out of accumulated other comprehensive income (“AOCI”) pertaining to the net investment hedge during the three and six-month periods ended January 31, 2023 and January 31, 2022, respectively. 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 $49,396 and a fair value asset value of $118, net, as of January 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 Condensed Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the derivative instruments are as follows:
|  | Three Months Ended January 31,
|  | 2023 |  | 2022
Gain (Loss) on Derivatives Designated as Cash Flow Hedges |  |  |  |
Gain (Loss) recognized in Other Comprehensive Income, net of tax |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | (479) |
Interest rate swap agreements (1) |  | (661) |  |  | 2,608 |
Total gain (loss) |  | $ | (661) |  |  | $ | 2,129 |
(1) Other comprehensive income (loss), net of tax, before reclassification from AOCI was $(136) and $795 for the three months ended January 31, 2023 and 2022, respectively.
|  | Six Months Ended January 31,
|  | 2023 |  | 2022
Gain (Loss) on Derivatives Designated as Cash Flow Hedges |  |  |  |
Gain (Loss) recognized in Other Comprehensive Income, net of tax |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  | $ | (620) |
Interest rate swap agreements (2) |  | 85 |  |  | 5,104 |
Total gain (loss) |  | $ | 85 |  |  | $ | 4,484 |
(2) Other comprehensive income (loss), net of tax, before reclassification from AOCI was $718 and $1,402 for the six months ended January 31, 2023 and 2022, respectively.
|  | Three Months Ended January 31,
|  | 2023 |  | 2022
|  |  |  |  | Interest |  |  |  |  | Interest
|  | Sales |  |  | Expense |  | Sales |  |  | Expense
Gain (Loss) Reclassified from AOCI, Net of Tax |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | — |  |  |  | $ | — |  |  | $ | (271) |  |  |  | $ | — |
Interest rate swap agreements |  | — |  |  |  | 525 |  |  | — |  |  |  | (1,813) |
Gain (Loss) on Derivatives Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |
Gain (loss) recognized in income, net of tax |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | 1,118 |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | — |
Commodities swap agreements |  | (1,567) |  |  |  | — |  |  | — |  |  |  | — |
Interest rate swap agreements |  | — |  |  |  | (83) |  |  | — |  |  |  | 2 |
Total gain (loss) |  | $ | (449) |  |  |  | $ | 442 |  |  | $ | (271) |  |  |  | $ | (1,811) |
|  | Six Months Ended January 31,
|  | 2023 |  | 2022
|  |  |  |  | Interest |  |  |  |  | Interest
|  | Sales |  |  | Expense |  | Sales |  |  | Expense
Gain (Loss) Reclassified from AOCI, Net of Tax |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | (58) |  |  |  | $ | — |  |  | $ | (284) |  |  |  | $ | — |
Interest rate swap agreements |  | — |  |  |  | 633 |  |  | — |  |  |  | (3,702) |
Gain (Loss) on Derivatives Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |
Gain (loss) recognized in income, net of tax |  |  |  |  |  |  |  |  |  |
Foreign currency forward contracts |  | $ | 1,946 |  |  |  | $ | — |  |  | $ | — |  |  |  | $ | — |
Commodities swap agreements |  | (2,229) |  |  |  | — |  |  | — |  |  |  | — |
Interest rate swap agreements |  | — |  |  |  | 171 |  |  | — |  |  |  | 89 |
Total gain (loss) |  | $ | (341) |  |  |  | $ | 804 |  |  | $ | (284) |  |  |  | $ | (3,613) |

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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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