Note 4. Derivative Instruments The notional amounts of our outstanding foreign currency forward contracts were as follows (in thousands):
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|
|
|
|
|
|
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|
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July 31, |
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|
January 31, |
|
|
|
|
|
2026 |
|
|
2026 |
|
Forward contracts designated as cash flow hedges |
|
|
|
$ |
329,397 |
|
|
$ |
219,196 |
|
Forward contracts not designated as cash flow hedges |
|
|
|
|
62,051 |
|
|
|
63,404 |
|
Total |
|
|
|
$ |
391,448 |
|
|
$ |
282,600 |
|
Pre-tax gains (losses) associated with foreign currency forward contracts were as follows (in thousands):
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Three Months Ended |
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Six Months Ended |
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|
July 31, |
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|
July 31, |
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|
|
2026 |
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|
2025 |
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|
2026 |
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|
2025 |
|
Forward contracts designated as cash flow hedges: |
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|
|
|
|
|
|
|
|
|
|
|
(Loss) gain recognized in other comprehensive (loss) income, net |
|
$ |
(1,900 |
) |
|
$ |
6,259 |
|
|
$ |
(1,603 |
) |
|
$ |
1,771 |
|
Gain (loss) reclassified from accumulated other comprehensive loss into net income |
|
|
2,586 |
|
|
|
(365 |
) |
|
|
5,410 |
|
|
|
(330 |
) |
Total gain |
|
$ |
686 |
|
|
$ |
5,894 |
|
|
$ |
3,807 |
|
|
$ |
1,441 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forward contracts not designated as cash flow hedges: |
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) recognized in net income |
|
$ |
505 |
|
|
$ |
491 |
|
|
$ |
860 |
|
|
$ |
(4,549 |
) |
Net gain (loss) |
|
$ |
1,191 |
|
|
$ |
6,385 |
|
|
$ |
4,667 |
|
|
$ |
(3,108 |
) |
As of July 31, 2026, we expect to reclassify $5.2 million of pre-tax gains out of accumulated other comprehensive loss into earnings within the next twelve months.
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