v3.26.1
Derivative Instruments and Hedging Activities
 9 Months Ended
Jul. 31, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Derivatives and Hedging
The Company is exposed to interest rate risk associated with its variable-rate borrowings. During the third quarter of 2026, the Company entered into a pay-fixed, receive-floating interest rate swap agreement, based on one-month Term SOFR, to manage the variability in cash flows associated with interest payments on $175.0 million of our outstanding variable-rate borrowings. The interest rate swap matures on August 1, 2029.
The interest rate swap has been designated as a cash flow hedge under ASC 815, Derivatives and Hedging (“ASC 815”). Changes in the fair value of the swap are recorded in other comprehensive income (“OCI”) and are reclassified into interest expense in the same period in which the hedged interest payments affect earnings and cash settlements occur. Refer to Note 10 – Fair Value Measurements of Assets and Liabilities for additional information on determining the fair value of the interest rate swap.
The following table presents the effect of the Company’s cash flow hedge on OCI:

Three Months EndedNine Months Ended
July 31, 2026July 31, 2026
Beginning OCI balance related to cash flow hedge$— $— 
Gain recognized in OCI, net of tax 615 615 
Amount reclassified from OCI into interest expense, net of tax — — 
Ending OCI balance related to cash flow hedge$615 $615 
The Company had no derivative instruments designated as hedging instruments as of October 31, 2025.
As of July 31, 2026, the Company estimates an immaterial gain amount related to the interest rate swap will be reclassified to interest expense from OCI during the next 12 months.