Derivatives and Hedging

3 Months Ended

Oct. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

The fair value of our derivative instruments and the associated notional amounts, presented on a pre-tax basis, were as follows:


	October 31, 2020				July 31, 2020
			Fair Value in					Fair Value in
			Other Current					Other Current
Cash Flow Hedges	Notional		Liabilities			Notional		Liabilities

Interest rate swap agreements	$	631,800	$	20,469		$	673,400	$	24,840

Net Investment Hedges

The foreign currency transaction gains on the Euro-denominated portion of the term loan, which is designated and effective as a hedge of the Company’s net investment in its Euro-denominated functional currency subsidiaries, are included as a component of the foreign currency translation adjustment. Gains for the three months ended October 31, 2020, net of tax, were $5,482, and losses for the three months ended October 31, 2019, net of tax, were $1,254.

There were no amounts reclassified out of accumulated other comprehensive income ("AOCI") pertaining to the net investment hedge during the three-month periods ended October 31, 2020 and October 31, 2019, respectively.

Derivatives Not Designated as Hedging Instruments

The Company has certain other derivative instruments which have not been designated as hedges. These other derivative instruments had a notional amount totaling approximately $33,806 and a fair value of $1,854 which is included in Other current liabilities in the Condensed Consolidated Balance Sheet as of October 31, 2020. These other derivative instruments had a notional amount totaling approximately $34,862 and a fair value of $1,824, as of July 31, 2020. For these derivative instruments, changes in fair value are recognized in earnings.

The total amounts presented in the Condensed Consolidated Statements of Income and Comprehensive Income due to changes in the fair value of the following derivative instruments are as follows:


	Three Months Ended October 31,
	2020		2019
Gain (Loss) on Derivatives Designated as Cash Flow Hedges

Gain (Loss) recognized in Other Comprehensive Income, net of tax
Foreign currency forward contracts	$	—	$	(525)
Interest rate swap agreements	3,332		(3,197)
Total gain (loss)	$	3,332	$	(3,722)


	Three Months Ended October 31,
	2020				2019
			Interest					Interest
	Sales		Expense			Sales		Expense
(Loss) Reclassified from AOCI, Net of Tax
Foreign currency forward contracts	$	—	$	—		$	—	$	—
Interest rate swap agreements	—		(2,774)			—		(495)
(Loss) on Derivatives Not Designated as Hedging Instruments
Amount of loss recognized in income, net of tax

Interest rate swap agreements	—		(38)			—		(75)
Total (loss)	$	—	$	(2,812)		$	—	$	(570)