Derivative financial instruments

9 Months Ended

Jul. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Foreign Currency Forward Contracts

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. The settlement of these contracts is recorded in operating activities on the Consolidated Statement of Cash Flows.

For the three months ended July 31, 2024, we recognized a net gain of $2,954 on foreign currency forward contracts and a net loss of $3,418 from the change in fair value of balance sheet positions. For the three months ended July 31, 2023, we recognized a net loss of $93 on foreign currency forward contracts and a net loss of $855 from the change in fair value of balance sheet positions. For the nine months ended July 31, 2024, we recognized a net gain of $8,624 on foreign currency forward contracts and a realized net loss of $11,035 from the change in fair value of balance sheet positions. For the nine months ended July 31, 2023, we recognized a net gain of $12,086 on foreign currency forward contracts and a net loss of $19,710 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, 2024 and 2023:


July 31, 2024 contract amounts:	Notional Sell Amounts		Notional Buy Amounts
Euro	$	124,144	$	144,557
British pound	17,187		138,240
Japanese yen	18,113		26,580
Mexican Peso	50		32,714
Hong Kong dollar	—		1,942
Singapore dollar	2,391		22,735
Australian dollar	—		9,630
Taiwan Dollar	—		8,000
Others	3,425		71,755
Total	$	165,310	$	456,153

July 31, 2023 contract amounts:	Notional Sell Amounts		Notional Buy Amounts
Euro	$	95,064	$	194,850
British pound	20,489		132,956
Mexican Peso	3,227		28,158
Japanese yen	23,195		17,908
Hong Kong dollar	2,080		7,265
Singapore dollar	60		19,817
Australian dollar	—		9,236
Taiwan Dollar	—		8,000
Others	2,602		71,830
Total	$	146,717	$	490,020

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, 2024 and 2023, there were no significant concentrations of credit risk.

Net Investment Hedges

Net assets of our foreign subsidiaries are exposed to volatility in foreign currency exchange rates. We may utilize net investment hedges to offset the translation adjustment arising from re-measuring our investment in foreign subsidiaries.

As of July 31, 2024, the Company was party to various cross currency swaps between the U.S. Dollar and Euro, Japanese Yen, Taiwan Dollar, Singapore Dollar and Chinese Yuan, which were designated as hedges of our net investments in certain foreign subsidiaries to mitigate the foreign exchange risk associated with certain investments in these subsidiaries. Any increases or decreases related to the remeasurement of the hedges are recorded in the currency translation component of Accumulated other comprehensive income (loss) within Shareholders' Equity in the Consolidated Balance Sheet until the sale or substantial liquidation of the underlying investments. A loss of $6,968 and a loss of $11,475, net of tax, was recorded for the three and nine months ended July 31, 2024, respectively, compared to a $1,205 loss, net of tax, for both the three and nine months ended July 31, 2023, respectively.

The following table summarizes the fair values of our net investment contracts designated as net investment hedges in the Company's Consolidated Balance Sheets as of July 31, 2024:


	Prepaid expenses and other current assets		Other assets		Accrued liabilities		Other long-term liabilities
Net investment contracts	$	5,579	$	255	$	7,827	$	9,273