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Derivative Instruments | 3 Months Ended
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Oct. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Note 4—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 (USD) to Norwegian Kroner (NOK) and USD to Euro (EUR) exchange rates. The Company is party to 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 11). The Company does not apply hedge accounting to these contracts, and therefore the changes in fair value are recorded in unaudited condensed consolidated statements of operations and comprehensive income. 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 October 31, 2022, were as follows:
Settlement Date |  | U.S. Dollar Amount |  |  | NOK Amount |
Nov-22 |  |  | 225,000 |  |  |  | 2,000,925 |
Dec-22 |  |  | 225,000 |  |  |  | 2,297,948 |
Jan-23 |  |  | 225,000 |  |  |  | 2,296,103 |
Feb-23 |  |  | 225,000 |  |  |  | 2,294,685 |
Mar-23 |  |  | 225,000 |  |  |  | 2,293,065 |
Apr-23 |  |  | 225,000 |  |  |  | 2,291,355 |
May-23 |  |  | 225,000 |  |  |  | 2,317,545 |
Total |  | $ | 1,575,000 |  |  |  | 15,791,626 |
Settlement Date |  | U.S. Dollar Amount |  |  | EUR Amount |
Nov-22 |  |  | 225,000 |  |  |  | 201,848 |
Dec-22 |  |  | 225,000 |  |  |  | 222,332 |
Jan-23 |  |  | 225,000 |  |  |  | 221,653 |
Feb-23 |  |  | 225,000 |  |  |  | 221,195 |
Mar-23 |  |  | 225,000 |  |  |  | 220,826 |
Apr-23 |  |  | 225,000 |  |  |  | 220,459 |
May-23 |  |  | 225,000 |  |  |  | 220,070 |
Total |  | $ | 1,575,000 |  |  |  | 1,528,383 |
The fair value of outstanding derivative instruments recorded in the accompanying unaudited condensed consolidated balance sheets were as follows:
Assets and Liabilities Derivatives: |  | Balance Sheet Location |  | October 31, 2022 |  |  | July 31, 2022 |
Derivatives not designated or not qualifying as hedging instruments |  |  |  | (in thousands) |
Foreign exchange forward contracts |  | Accrued expenses and other current liabilities |  | $ | 101 |  |  | $ | 141 |
The effects of derivative instruments on the condensed consolidated statements of operations and comprehensive (loss) income were as follows:
|  |  |  | Three Months Ended October 31, |
Amount of (Loss) Gain Recognized on Derivatives |  | 2022 |  |  | 2021 |
Derivatives not designated or not qualifying as hedging instruments |  | Location of Loss Recognized on Derivatives |  | (in thousands) |
Foreign exchange forward contracts |  | Net loss resulting from foreign exchange transactions |  | $ | (121 | ) |  | $ | 10 |

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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 https://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 https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
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