Derivative financial instruments

3 Months Ended

Jan. 31, 2023

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 January 31, 2023, we recognized a net gain of $16,139 on foreign currency forward contracts and a net loss of $20,710 from the change in fair value of balance sheet positions. For the three months ended January 31, 2022, we recognized a net loss of $3,598 on foreign currency forward contracts and a net gain of $3,962 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 January 31, 2023 and 2022:


January 31, 2023 contract amounts:	Notional Sell Amounts		Notional Buy Amounts
Euro	$	93,142	$	398,560
British pound	27,965		112,945
Mexican Peso	11,658		31,315
Japanese yen	11,644		35,772
Hong Kong dollar	4,180		148,653
Australian dollar	375		8,821
Singapore dollar	245		18,862
Taiwan Dollar	—		35,047
Others	3,395		65,175
Total	$	152,604	$	855,150

January 31, 2022 contract amounts:	Notional Sell Amounts		Notional Buy Amounts
Euro	$	102,132	$	338,128
British pound	34,657		70,869
Japanese yen	12,315		40,384
Singapore dollar	1,079		18,214
Australian dollar	325		10,026
Hong Kong dollar	—		49,595
Others	15,792		87,704
Total	$	166,300	$	614,920

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 months ended January 31, 2023 and 2022, there were no significant concentrations of credit risk.