Fair Value Measurement of Assets and Liabilities |
6 Months Ended |
|---|---|
Apr. 30, 2025 | |
| Fair Value Disclosures [Abstract] | |
| Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value hierarchy distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market data developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to Level 1 and the lowest priority to Level 3. The three levels of the fair value hierarchy are described below: •Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. •Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly or indirectly including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates) and inputs that are derived principally from or corroborated by observable market data by correlation or other means. •Level 3 - Inputs that are both significant to the fair value measurement and unobservable. Carrying amounts reported on the balance sheet for cash, cash equivalents, accounts receivable and accounts payable approximate fair value due to the short-term maturity of these instruments. Our outstanding debt is variable rate debt that re-prices frequently, thereby limiting our exposure to significant change in interest rate risk. As a result, the fair value of our debt instrument approximates carrying value at April 30, 2025, and October 31, 2024 (Level 2 measurement). As of April 30, 2025, we have outstanding forward foreign exchange contracts to hedge our foreign currency exposures against the U.S. Dollar (“USD”) to Great British Pound (“GBP”), with a notional principal amount of $1.0 million, and foreign currency exposures against the Mexican Peso (“MXN”) to USD, with a notional principal amount of $10.0 million. Hedge accounting is not applied to our forward exchange contracts. These contracts have a range of maturities up to June 17, 2025. Our forward foreign exchange contracts are adjusted to fair value by recording gains and losses to “Other, net,” and we record the related asset or liability to “Other Assets” or “Current Liabilities” in the accompanying condensed consolidated statement of income and condensed consolidated balance sheets, respectively. During the six months ended April 30, 2025 and 2024, we recognized a net gain of $0.8 million and zero, respectively, related to our forward foreign exchange contracts. The value of our forward foreign exchange contracts fluctuate based on exchange rate fluctuations against USD to GBP, and MXN to USD (Level 2 measurements). As of April 30, 2025, we have $2.9 million outstanding Bonds for the Reconstruction for a Free Argentina (“BOPREAL”) issued by the Argentine Central Bank, which we record under the caption “Prepaid and other current assets” in the accompanying condensed consolidated balance sheets. The BOPREAL bond subscription in Argentine Pesos (“ARS”) will settle in USD and the proceeds will be used to repay intercompany payables. These bonds have a range of maturities up to June 30, 2025. We estimate total proceeds of the BOPREAL bonds to be approximately $2.7 million after $0.3 million deduction of taxes and transaction fees. The value of the BOPREAL bonds fluctuates based on exchange rate fluctuations against ARS to USD (Level 2 measurements).
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