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Derivative Instruments and Hedging Activities | 3 Months Ended
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Jul. 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 foreign exchange forward 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 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 July 31, 2024, we had total debt outstanding of $918.6 million, net of unamortized issuance costs of $0.5 million. The $919.1 million of debt outstanding are variable rate loans under the Amended and Restated CA. The carrying value of the debt approximates fair value. As of July 31, 2024 and April 30, 2024, the interest rate swap agreements we maintained were designated as fully effective cash flow hedges as defined under ASC Topic 815, “Derivatives and Hedging.” As a result, the impact on our Unaudited Condensed Consolidated Statements of Net Loss from changes in the fair value of the interest rate swaps was fully offset by changes in the interest expense on the underlying variable rate debt instruments. It is management’s intention that the notional amount of interest rate swaps be less than the variable rate loans outstanding during the life of the derivatives. The following table summarizes our interest rate swaps designated as cash flow hedges:
|  |  | Notional Amount |  |
Hedged Item | Date entered into | Nature of Swap | July 31, 2024 | April 30, 2024 | Fixed Interest Rate | Variable Interest Rate
Amended and Restated CA | May 15, 2024 | Pay fixed/receive variable | $ | 50,000 |  | $ | — |  | 4.288 | % | 1-month SOFR reset every month for a 3-year period ending July 15, 2027
Amended and Restated CA (1) | April 09, 2024 | Pay fixed/receive variable | 50,000 |  | 50,000 |  | 4.243 | % | 1-month SOFR reset every month for a 3-year period ending July 15, 2027
Amended and Restated CA | January 31, 2024 | Pay fixed/receive variable | 50,000 |  | 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 |  | 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 |  | 50,000 |  | 3.689 | % | 1-month SOFR reset every month for a 3-year period ending April 15, 2027
Amended and Restated CA | December 19, 2023 | Pay fixed/receive variable | 50,000 |  | 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 |  | 3.467 | % | 1-month SOFR reset every month for a 2-year period ending May 15, 2024
| $ | 500,000 |  | $ | 550,000 |  |  |
(1) | As of April 30, 2024, this interest rate swap agreement was considered a forward starting contract as the effective date was July 15, 2024.
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. T he fair value of our interest rate swaps designated as cash flow hedges are reflected on our Unaudited Condensed Consolidated Statements of Financial Position as follows:
Assets (Liabilities) |  | Balance Sheet Location | July 31, 2024 |  | April 30, 2024
Current asset portion |  | Prepaid expenses and other current assets | $ | — |  |  | $ | 154 |
Non-current asset portion |  | Other non-current assets | 2,768 |  |  | 9,686 |
Non-current liability portion |  | Other long-term liabilities | (1,016) |  |  | — |
Total cash flow hedges |  |  | $ | 1,752 |  |  | $ | 9,840 |
The effect of our interest rate swaps on our Unaudited Condensed Consolidated Statements of Other Comprehensive Income (Loss) and Unaudited Condensed Consolidated Statements of Net Loss are as follows:
|  | Three Months Ended July 31,
|  | 2024 |  | 2023
Amount of pretax (losses) gains recognized in Other comprehensive income (loss) |  | $ | (6,360) |  |  | $ | 6,291 |
Amount of pretax gains reclassified from Accumulated other comprehensive loss into Interest expense |  | $ | 1,715 |  |  | $ | 2,885 |
Foreign Currency Contracts We may enter into foreign currency forward contracts to manage our exposure on certain foreign currency denominated assets and liabilities. The foreign currency 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 July 31, 2024, and April 30, 2024, we did not maintain any open foreign currency forward contracts. In addition, we did not maintain any open foreign currency forward contracts during the three months ended July 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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