Derivative instruments

6 Months Ended

Jan. 31, 2018

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative instruments

7. Derivative instruments

Certain of our foreign operations have revenue and expenses transacted in currencies other than the U.S. dollar. In order to mitigate foreign currency exchange risk, we use forward contracts to lock in exchange rates associated with a portion of our forecasted international expenses.

As of January 31, 2018, we have forward contracts outstanding with notional amounts totaling $11.7 million. These contracts are designated as cash flow hedges, and the unrealized gain of $0.4 million, net of tax, on these contracts are reported in Accumulated other comprehensive income as of January 31, 2018. Assets and liability derivatives designated as hedging instruments are presented in other current assets and other current liabilities, respectively, on our Consolidated Balance Sheets. At January 31, 2018 we had a derivative asset of $0.5 million included in other current assets on our Consolidated Balance Sheet.

As of July 31, 2017, we had forward contracts outstanding with notional amounts totaling $10.9 million. These contracts are designated as cash flow hedges, and the unrealized gain of $0.5 million, net of tax, on these contracts are reported in Accumulated other comprehensive income as of July 31, 2017. At July 31, 2017 we had a derivative asset of $0.6 million included in other current assets on our Consolidated Balance Sheet.

Realized gains and (losses) on the cash flow hedges are recognized in income in the period when the payment of expenses is recognized. During the three and six months ended January 31, 2018, we recorded approximately $0.1 million and $0.2 million of realized gain, respectively, included in our Consolidated Statements of Operations. During the three and six months ended January 31, 2017 we recorded ($0.2) million and ($0.3) million of realized loss, respectively.