Derivative financial instruments

9 Months Ended

Jul. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 July 31, 2022, we recognized a net gain of $15,181 on foreign currency forward contracts and a net loss of $14,436 from the change in fair value of balance sheet positions. For the three months ended July 31, 2021, we recognized a net loss of $1,714 on foreign currency forward contracts and a net gain of $1,202 from the change in fair value of balance sheet positions. For the nine months ended July 31, 2022, we recognized a net gain of $2,503 on foreign currency forward contracts and a net loss of $394 from the change in fair value of balance sheet positions. For the nine months ended July 31, 2021, we recognized a net loss of $505 on foreign currency forward contracts and a net loss of $3,544 from the change in fair value of balance sheet positions. The fair values of our foreign currency forward contract assets and liabilities are included in Receivable-net and Accrued liabilities, respectively, in our Consolidated Balance Sheets.

The following table summarizes, by currency, the foreign currency forward contracts outstanding at July 31, 2022 and 2021:


	Notional Amounts
July 31, 2022 contract amounts:	Sell		Buy
Euro	$	88,275	$	333,285
British pound	36,779		78,942
Japanese yen	16,688		37,163
Australian dollar	278		9,426
Hong Kong dollar	—		67,341
Singapore dollar	378		18,025
Others	26,012		98,113
Total	$	168,410	$	642,295

	Notional Amounts
July 31, 2021 contract amounts:	Sell		Buy
Euro	$	118,988	$	337,817
British pound	27,861		86,778
Japanese yen	15,939		43,281
Australian dollar	934		10,462
Hong Kong dollar	283		37,556
Singapore dollar	458		18,448
Others	22,374		93,079
Total	$	186,837	$	627,421

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 nine months ended July 31, 2022 and 2021, there were no significant concentrations of credit risk.