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Derivative Instruments and Hedging Activities | 9 Months Ended
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Jan. 31, 2021
Derivative Instruments and Hedging Activities [Abstract] |
Derivative Instruments and Hedging Activities | Note 16 — Derivative Instruments and Hedging Activities From time-to-time, we enter into forward exchange and interest rate swap contracts as a hedge against foreign currency asset and liability commitments, changes in interest rates and anticipated transaction exposures, including intercompany sales and purchases. All derivatives are recognized as assets or liabilities and measured at fair value on our Unaudited Condensed Consolidated Statements of Financial Position. Derivatives that are not determined to be effective hedges are adjusted to fair value with a corresponding adjustment to earnings. We do not use financial instruments for trading or speculative purposes. Interest Rate Contracts As of January 31, 2021, we had total debt outstanding of $960.7 million, net of unamortized issuance costs of $0.6 million of which $961.3 million are variable rate loans outstanding under the Amended and Restated RCA, which approximated fair value. We had outstanding interest rate swap agreements with combined notional amounts of $300.0 million as of January 31, 2021 and April 30, 2020. These agreements were accounted for as cash flow hedges which fixed a portion of the variable interest due on our Amended and Restated RCA. We record the fair value of our interest rate swaps on a recurring basis using Level 2 inputs of quoted prices for similar assets or liabilities in active markets. The fair value of the interest rate swaps as of January 31, 2021 and April 30, 2020 was a deferred loss of $6.5 million and $8.3 million, respectively. Based on the maturity dates of the contracts, the entire deferred loss as of January 31, 2021 and April 30, 2020 was recorded within Other Long-Term Liabilities. The pre-tax losses that were reclassified from Accumulated Other Comprehensive Loss into Interest Expense for the three and nine months ended January 31, 2021 were $1.0 million and $2.8 million, respectively. The pre-tax gains that were reclassified from Accumulated Other Compensation Loss into Interest Expense for the three and nine months ended January 31, 2020 were $0.1 million and $0.6 million, respectively. Foreign Currency Contracts We may enter into forward exchange contracts to manage our exposure on certain foreign currency denominated assets and liabilities. The forward exchange contracts are marked to market through Foreign Exchange Transaction Losses on our Unaudited Condensed Consolidated Statements of Income and carried at fair value on our Unaudited Condensed Consolidated Statements of Financial Position. Foreign currency denominated assets and liabilities are remeasured at spot rates in effect on the balance sheet date, with the effects of changes in spot rates reported in Foreign Exchange Transaction Losses on our Unaudited Condensed Consolidated Statements of Income. As of January 31, 2021, there was an open forward exchange contract to sell €32.0 million and buy $38.8 million to manage foreign currency exposures on intercompany loans. This forward contract expires on April 15, 2021. We did not designate this forward exchange contract as a hedge under the applicable sections of ASC Topic 815, “Derivatives and Hedging” as the benefits of doing so were not material due to the short-term nature of the contract. The fair value changes in the forward exchange contract substantially mitigated the changes in the value of the applicable foreign currency denominated liability. As of January 31, 2021, the fair value of the open forward exchange contracts was an immaterial gain and recorded within Prepaid Expenses and Other Current Assets. The fair value of the open forward exchange contract was measured on a recurring basis using Level 2 inputs of quoted prices for similar assets or liabilities in active markets. For the three and nine months ended January 31, 2021, the gain recognized on this forward contract was immaterial and included in Foreign Exchange Transaction Losses on our Unaudited Condensed Consolidated Statement of Income. As of April 30, 2020, we did not maintain any open forward exchange contracts. In addition, we did not maintain any open forward contracts during the nine months ended January 31, 2020.

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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 + Details
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