XML 23 R9.htm IDEA: XBRL DOCUMENT v3.8.0.1

Derivative Instruments

12 Months Ended

Jul. 31, 2017

Derivative Instruments [Abstract]

Derivative Instruments

Note 3—Derivative Instruments

The primary risk managed by the Company using derivative instruments is foreign exchange risk. Foreign exchange forward contracts are entered into as hedges against unfavorable fluctuations in the U.S. Dollar - NOK exchange rate. Subsequent to the Spin-Off and until November 2016, IDT provided hedging services to the Company pursuant to the Transition Services Agreement (see Note 11). As of November 16, 2016, the Company entered into a Foreign Exchange Agreement with Western Alliance Bank allowing the Company to enter into foreign exchange contracts under its revolving credit facility with the bank (see Note 13). The Company does not apply hedge accounting to these contracts; therefore the changes in fair value are recorded in earnings. By using derivative instruments to mitigate exposures to changes in foreign exchange rates, the Company is exposed to credit risk from the failure of the counterparty to perform under the terms of the contract. The credit or repayment risk is minimized by entering into transactions with high-quality counterparties.

The outstanding contracts at July 31, 2017 were as follows:

Settlement Date		U.S. Dollar Amount				NOK Amount
August 2017			1,000,000				8,408,640
September 2017			1,000,000				8,404,640

The fair value of outstanding derivative instruments recorded in the accompanying consolidated balance sheets were as follows:

July 31, (in thousands)				2017				2016
Assets Derivatives:		Balance Sheet Location
Derivatives not designated or not qualifying as hedging instruments
Foreign exchange forward contracts		Other current assets		$	137			$	21
Liabilities Derivatives:
Derivatives not designated or not qualifying as hedging instruments
Foreign exchange forward contracts		Accrued expenses		$	—			$	15

The effects of derivative instruments on the consolidated statements of comprehensive (loss) income were as follows:

Amount of Gain (Loss) Recognized on Derivatives Year ended July 31, (in thousands)				2017				2016
Derivatives not designated or not qualifying as hedging instruments		Location of Gain (Loss) Recognized on Derivatives
Foreign exchange forward contracts		Net gain (loss) resulting from foreign exchange transactions		$	105			$	(142	)

X

- References

No definition available.

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- 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/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-URI http://asc.fasb.org/topic&trid=2229140

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration