Foreign Currency Contracts

9 Months Ended

Apr. 30, 2015

Foreign Currency Contracts

(16) FOREIGN CURRENCY CONTRACTS

During the quarter ended October 31, 2014, the Company entered into foreign currency forward contracts to manage the foreign currency risk associated with anticipated foreign currency denominated transactions. As of April 30, 2015, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts was $9.8 million as summarized below:

	April 30, 2015
Currency Contracts	Foreign Currency Amount		Notional Contract Value in USD
	(In thousands)
Buy CNH		44,893	$	7,227
Buy CZK		26,352		1,245
Buy EUR		1,072		1,393
			$	9,865

As of April 30, 2015, the fair value of the Company’s short-term foreign currency contracts was $0.4 million and is included in other current liabilities. These contracts are designed to hedge the Company’s exposure to transactions denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of Other gains (losses), net. The contracts were classified within Level 2 of the fair value hierarchy. During the three and nine months ended April 30, 2015, the Company recognized $0.5 million and $(0.6) million in net gains and (losses) associated with these contracts, respectively.