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Derivatives and Hedging Activities | 12 Months Ended
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Jul. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate at a future date, with maturities of less than 18 months, which qualify as cash flow hedges or net investment hedges under the accounting guidance for derivative instruments and hedging activities. The primary objective of the Company’s foreign currency exchange risk management program is to minimize the impact of currency movements due to transactions in other than the respective subsidiaries’ functional currency and to minimize the impact of currency movements on the Company’s net investment denominated in a currency other than the U.S. dollar. To achieve this objective, the Company hedges a portion of known exposures using forward foreign exchange contracts. Main foreign currency exposures are related to transactions denominated in the British Pound, Euro, Canadian dollar, Australian dollar, Mexican Peso, Chinese Yuan, Malaysian Ringgit and Singapore dollar. Generally, these risk management transactions will involve the use of foreign currency derivatives to minimize the impact of currency movements on non-functional currency transactions. The U.S. dollar equivalent notional amounts of outstanding forward exchange contracts were as follows as of July 31, 2021 and 2020:
| July 31, 2021 |  | July 31, 2020
Designated as cash flow hedges | $ | 30,724 |  |  | $ | 24,600 |
Non-designated hedges | 3,580 |  |  | 3,107 |
Total foreign exchange contracts | $ | 34,304 |  |  | $ | 27,707 |
Cash Flow Hedges The Company has designated a portion of its forward foreign exchange contracts as cash flow hedges and recorded these contracts at fair value on the accompanying Consolidated Balance Sheets. For these instruments, the gain or loss on the derivative is reported as a component of other comprehensive income (“OCI”) and reclassified into income in the same period or periods during which the hedged transaction affects income. At July 31, 2021 and 2020, unrealized gains of $770 and losses of $385 have been included in AOCI, respectively. The following table summarizes the amount of pre-tax gains and losses related to derivatives designated as cash flow hedging instruments:
|  | July 31, 2021 |  | July 31, 2020 |  | July 31, 2019
Gains (losses) recognized in OCI |  | $ | 1,451 |  |  | $ | (576) |  |  | $ | 837 |
Gains reclassified from OCI into cost of goods sold |  | 399 |  |  | 614 |  |  | 1,048 |
Fair values of derivative and hedging instruments in the accompanying Consolidated Balance Sheets were as follows:
| July 31, 2021 |  | July 31, 2020
| Prepaid expenses and other current assets |  | Other current liabilities |  | Prepaid expenses and other current assets |  | Other current liabilities
Derivatives designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange contracts (cash flow hedges) | $ | 150 |  |  | $ | 51 |  |  | $ | 588 |  |  | $ | 761 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |
Foreign exchange contracts (non-designated hedges) | — |  |  | 0 |  |  | 6 |  |  | 16 |
Total derivative instruments | $ | 150 |  |  | $ | 51 |  |  | $ | 594 |  |  | $ | 777 |

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
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