The Company utilizes forward foreign exchange currency contracts to reduce the exchange rate risk of specific foreign currency denominated transactions. These contracts typically require the exchange of a foreign currency for U.S. dollars at a fixed rate on a future date, with maturities of less than 18 months, which qualify as cash flow hedges or net investment hedges under the accounting guidance for derivative instruments and hedging activities. The primary objective of the Company’s foreign currency exchange risk management program is to minimize the impact of currency movements due to transactions in other than the respective subsidiaries’ functional currency and to minimize the impact of currency movements on the Company’s net investment denominated in a currency other than the U.S. dollar. To achieve this objective, the Company hedges a portion of known exposures using forward foreign exchange currency contracts.

Main foreign currency exposures are related to transactions denominated in the British Pound, Euro, Canadian dollar, Australian dollar, Mexican Peso, Chinese Yuan, Malaysian Ringgit and Singapore dollar. Generally, these risk management transactions will involve the use of foreign currency derivatives to minimize the impact of currency movements on non-functional currency transactions.

The Company has designated a portion of its forward foreign exchange contracts as cash flow hedges and recorded these contracts at fair value on the condensed consolidated balance sheets. For these instruments, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income ("OCI") and reclassified into income in the same period or periods during which the hedged transaction affects income. As of April 30, 2024 and July 31, 2023, unrealized gains of $1,104 and $1,580 have been included in OCI, respectively.

The Company has designated certain third party foreign currency denominated debt borrowed under its credit agreement as net investment hedges. These debt obligations, denominated in Euros and British Pounds, were designated as net investment hedges to hedge portions of the Company's net investment in its European operations. The Company’s foreign currency denominated debt obligations are valued under a market approach using publicized spot prices, and the net gains or losses attributable to the changes in spot prices are recorded as cumulative translation within AOCI and are included in the foreign currency translation adjustments section of the condensed consolidated statements of comprehensive income. As of April 30, 2024 and July 31, 2023, the cumulative balances recognized in accumulated other comprehensive income were losses of $799 and $1,746, respectively, on any outstanding foreign currency denominated debt obligations.


	Three months ended April 30,				Nine months ended April 30,
	2024		2023		2024		2023
Gains (losses) recognized in OCI:
Forward exchange contracts (cash flow hedges)	$	447	$	496	$	1,236	$	2,165
Foreign currency denominated debt (net investment hedges)	408		(661)		947		(1,502)
Gains reclassified from OCI into cost of goods sold
Forward exchange contracts (cash flow hedges)	173		463		1,712		1,261


	April 30, 2024						July 31, 2023
	Prepaid expenses and other current assets		Other current liabilities		Long-term obligations		Prepaid expenses and other current assets		Other current liabilities		Long-term obligations
Derivatives designated as hedging instruments:
Foreign exchange contracts (cash flow hedges)	$	595	$	—	$	—	$	485	$	189	$	—
Foreign currency denominated debt (net investment hedges)	—		—		35,774		—		—		36,716
Derivatives not designated as hedging instruments:
Foreign exchange contracts (non-designated hedges)	7		—		—		7		—		—
Total derivative instruments	$	602	$	—	$	35,774	$	492	$	189	$	36,716