Financial Derivatives and Hedging

9 Months Ended

Jul. 31, 2025

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Financial Derivatives and Hedging

Note 12. Financial Derivatives and Hedging

As of July 31, 2025, the notional amount of outstanding foreign currency forward contracts was $26.8 million. The resulting impact on our Consolidated Financial Statements from currency hedging activities was not significant for the three and nine months ended July 31, 2025 and July 31, 2024.

As of July 31, 2025, the Company has eight interest rate swap contracts that have a total notional amount of $1.6 billion and remaining maturities of less than three years.

The following table summarizes the amounts recognized with respect to our derivative instruments within the accompanying Consolidated Condensed Statements of Income and Comprehensive Income:

Periods Ended July 31,		Three Months				Nine Months
(In millions)		2025		2024		2025		2024
Derivatives designated as cash flow hedges	Location of (Gain)/Loss Recognized on Derivatives
Interest rate swap contracts	Interest expense (income)	$	(8.1)	$	(14.1)	$	(28.2)	$	(41.3)

The cumulative pre-tax impact of the gain on derivatives designated for hedge accounting is recognized in "Accumulated other comprehensive loss". The following table details the changes in the cumulative pre-tax impact of the gain on derivatives designated for hedge accounting:

Periods Ended July 31,	Three Months				Nine Months
(In millions)	2025		2024		2025		2024
Beginning balance gain	$	31.0	$	106.4	$	59.2	$	115.1
Amount recognized in accumulated other comprehensive income on interest rate swap contracts, gross	12.9		(21.6)		4.8		(3.1)
Amount reclassified from accumulated other comprehensive income into earnings, gross	(8.1)		(14.1)		(28.2)		(41.3)
Ending balance gain	$	35.8	$	70.7	$	35.8	$	70.7

The amount recognized in other comprehensive income on interest rate swap contracts was $9.9 million and $3.6 million, net of tax effect, for the three and nine months ended July 31, 2025, respectively, and $(16.5) million and $(2.7) million, net of tax, for the three and nine ended July 31, 2024, respectively.

The amount reclassified from other comprehensive income into earnings was $(6.0) million and $(21.3) million, net of tax, for the three and nine months ended July 31, 2025, respectively, and $(10.7) million and $(31.1) million, net of tax, for the three and nine ended July 31, 2024, respectively.

Refer to Note 9. Stockholders' Equity for amounts presented net of the related tax impact in "Accumulated other comprehensive loss."

The Company expects that $(26.5) million recorded as a component of "Accumulated other comprehensive loss" will be realized in the Consolidated Condensed Statements of Income over the next twelve months and the amount will vary depending on prevailing interest rates.