Derivative Financial Instruments

6 Months Ended

Apr. 30, 2021

Investments, All Other Investments [Abstract]

Derivative financial instruments

We operate internationally and enter into intercompany transactions denominated in foreign currencies. Consequently, we are subject to market risk arising from exchange rate movements between the dates foreign currency transactions occur and the dates they are settled. We regularly use foreign currency forward contracts to reduce our risks related to most of these transactions. These contracts usually have maturities of 90 days or less and generally require us to exchange foreign currencies for U.S. dollars at maturity, at rates stated in the contracts. These contracts are not designated as hedging instruments under U.S. GAAP. Accordingly, the changes in the fair value of the foreign currency forward contracts are recognized in each accounting period in “Other – net” on the Condensed Consolidated Statements of Income together with the transaction gain or loss from the related balance sheet position. For the three months ended April 30, 2021, we recognized a net loss of $8,133 on foreign currency forward contracts and a realized net gain of $7,357 from the change in fair value of balance sheet positions. For the three months ended April 30, 2020, we recognized a net loss of $3,728 on foreign currency forward contracts and a net gain of $6,720 from the change in fair value of balance sheet positions. For the six months ended April 30, 2021, we recognized a net gain of $1,209 on foreign currency forward contracts and a realized net loss of $4,746 from the change in fair value of balance sheet positions. For the six months ended April 30, 2020, we recognized a net loss of $4,159 on foreign currency forward contracts and a net gain of $7,151 from the change in fair value of balance sheet positions.

The following table summarizes, by currency, the foreign currency forward contracts outstanding at April 30, 2021 and 2020:


	Notional Amounts
April 30, 2021 contract amounts:	Sell		Buy
Euro	$	127,660	$	309,020
British pound	21,228		79,446
Japanese yen	12,228		38,648
Australian dollar	194		10,240
Hong Kong dollar	978		33,024
Singapore dollar	15		18,071
Others	11,886		92,869
Total	$	174,189	$	581,318

	Notional Amounts
April 30, 2020 contract amounts:	Sell		Buy
Euro	$	110,114	$	182,146
British pound	18,987		58,543
Japanese yen	16,301		31,934
Australian dollar	327		7,647
Hong Kong dollar	53,935		60,737
Singapore dollar	1,082		15,620
Others	3,995		61,286
Total	$	204,741	$	417,913

We are exposed to credit-related losses in the event of nonperformance by counterparties to financial instruments. These financial instruments include cash deposits and foreign currency forward contracts. We periodically monitor the credit ratings of these counterparties in order to minimize our exposure. Our customers represent a wide variety of industries and geographic regions. For the three and six months ended April 30, 2021 and 2020, there were no significant concentrations of credit risk.