Derivative Financial Instruments

6 Months Ended

Jul. 31, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

NOTE 10 – DERIVATIVE FINANCIAL INSTRUMENTS

As of July 31, 2020, the Company’s entire net forward contracts hedging portfolio consisted of 46.1 million Chinese Yuan equivalent, 4.0 million Swiss Francs equivalent, 9.7 million US dollars equivalent, 22.2 million Euros equivalent and 1.3 million British Pounds equivalent with various expiry dates ranging through September 10, 2020. These forward contracts are not designated as qualified hedges in accordance with ASC 815, Derivatives and Hedging, and, therefore, changes in the fair value of these derivatives are recognized in earnings in the period they arise. Net gains or losses related to these forward contracts are included in cost of sales and selling and general and administrative expenses in the Consolidated Statements of Operations. The cash flows related to these foreign currency contracts are classified in operating activities.

See Note 11 – Fair Value Measurements for fair value and presentation in the Consolidated Balance Sheets for derivatives.

For the quarter ended July 31, 2020, the Company did not have any cash flow hedges.