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Derivative Instruments and Hedging Activities | 9 Months Ended
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Jan. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments and Hedging Activities | 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. 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, 2024, we had total debt outstanding of $906.8 million, net of unamortized issuance costs of $0.6 million of which $907.4 million are variable rate loans outstanding under the Amended and Restated CA, which approximated fair value. The following table summarizes our interest rate swaps designated as cash flow hedges:
|  |  | Notional Amount |  |
Hedged Item (1) | Date entered into | Nature of Swap | January 31, 2024 | April 30, 2023 | Fixed Interest Rate | Variable Interest Rate
Amended and Restated CA | January 31, 2024 | Pay fixed/receive variable | $ | 50,000 |  | $ | — |  | 3.700 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2027
Amended and Restated CA | January 24, 2024 | Pay fixed/receive variable | 50,000 |  | — |  | 3.774 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2027
Amended and Restated CA | January 05, 2024 | Pay fixed/receive variable | 50,000 |  | — |  | 3.689 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2027
Forward starting contracts (2) | 150,000 |  | — |  |  |
Amended and Restated CA | December 19, 2023 | Pay fixed/receive variable | 50,000 |  | — |  | 3.850 | % | 1-month SOFR reset every month for a 3-year period ending January 15, 2027
Amended and Restated CA | March 15, 2023 | Pay fixed/receive variable | 50,000 |  | 50,000 |  | 3.565 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2026
Amended and Restated CA | March 14, 2023 | Pay fixed/receive variable | 50,000 |  | 50,000 |  | 4.053 | % | 1-month SOFR reset every month for a 3-year period ending March 15, 2026
Amended and Restated CA | March 13, 2023 | Pay fixed/receive variable | 50,000 |  | 50,000 |  | 3.720 | % | 1-month SOFR reset every month for a 3-year period ending March 15, 2026
Amended and Restated CA | December 13, 2022 | Pay fixed/receive variable | 50,000 |  | 50,000 |  | 3.772 | % | 1-month SOFR reset every month for a 3-year period ending December 15, 2025
Amended and Restated CA | June 16, 2022 | Pay fixed/receive variable | 100,000 |  | 100,000 |  | 3.467 | % | 1-month SOFR reset every month for a 2-year period ending May 15, 2024
Amended and Restated CA | April 6, 2022 | Pay fixed/receive variable | 100,000 |  | 100,000 |  | 2.588 | % | 1-month SOFR reset every month for a 2-year period ending April 15, 2024
Amended and Restated CA | April 12, 2021 | Pay fixed/receive variable | 100,000 |  | 100,000 |  | 0.465 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2024
Existing contracts | $ | 550,000 |  | $ | 500,000 |  |  |
(1) | On November 30, 2022, we entered into the Second Amendment to our Amended and Restated CA. Refer to Note 15, "Debt and Available Credit Facilities" for more information related to our Amended and Restated CA.
(2) | During the third quarter of fiscal 2024, we entered into $150.0 million notional amount of forward starting interest rate swap agreements to hedge the cash flow risk of variability in interest payments on our variable rate borrowings. The effective date of these forward starting interest rate swap agreements is April 15, 2024. As of January 31, 2024, these contracts met the criteria of a cash flow hedge.
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, 2024 was a deferred loss of $(0.6) million and a deferred gain of $3.5 million. Based on the maturity dates of the contracts, the entire deferred loss as of January 31, 2024 was recorded within Other long-term liabilities, $2.5 million of the deferred gain was recorded within Prepaid expenses and other current assets, and $1.0 million of the deferred gain was recorded within Other non-current assets. The fair value of the interest rate swaps as of April 30, 2023 was a deferred loss of $(0.6) million and a deferred gain of $7.8 million. Based on the maturity dates of the contracts, the entire deferred loss as of April 30, 2023 was recorded within Other long-term liabilities, $6.4 million of the deferred gain was recorded within Prepaid expenses and other current assets, and $1.4 million was recorded within Other non-current assets. The pretax gains that were reclassified from Accumulated other comprehensive loss into Interest expense for the three and nine months ended January 31, 2024 were $3.3 million and $9.3 million, respectively. The pretax gains that were reclassified from Accumulated other comprehensive loss into Interest expense for the three and nine months ended January 31, 2023 were $2.2 million and $2.5 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 gains (losses) on our Unaudited Condensed Consolidated Statements of Net Loss 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 gains (losses) on our Unaudited Condensed Consolidated Statements of Net Loss. As of January 31, 2024, and April 30, 2023, 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, 2024 and 2023.

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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://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 40 -Name Accounting Standards Codification -Section 50 -Paragraph 5 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480237/815-40-50-5 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 815 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 5C -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480434/815-10-50-5C Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 815 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//815/tableOfContent + Details
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