DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

Schedule of effect of derivative instruments on the balance sheets, statements of changes in shareholders' equity and statements of operations

Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity, and Condensed Consolidated Statements of Operations, net of tax, during the three months ended July 31, 2026 and 2025 (in thousands):

Location of Gain

Amount of Gain

Amount of Gain (Loss)

(Loss) Reclassified

Recognized in Other

from Other

Comprehensive

Derivatives

Income (Loss)

Three Months Ended

July 31,

 

2026

2025

2026

2025

Designated as Hedging Instruments:

(Effective portion)

Foreign exchange forward contracts
– Intercompany sales/purchases

$

(129)

$

544

Cost of sales and service

$

(34)

$

(304)

Foreign exchange forward contract
– Net investment

$

58

$

(5)

Derivative instruments had the following effects on our Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Changes in Shareholders’ Equity, and Condensed Consolidated Statements of Operations, net of tax, during the nine months ended July 31, 2026 and 2025 (in thousands):

Location of Gain

Amount of Gain

Amount of Gain (Loss)

(Loss) Reclassified

Recognized in Other

from Other

Comprehensive

Income (Loss)

Nine Months Ended

July 31,

Derivatives

 

2026

2025

2026

2025

 

Designated as Hedging Instruments:

(Effective Portion)

Foreign exchange forward contracts
– Intercompany sales/purchases

$

(1,049)

$

37

Cost of sales and service

$

(362)

$

(1,111)

Foreign exchange forward contract
– Net investment

$

37

$

(101)

Schedule of changes in the components of accumulated other comprehensive loss, net of tax

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended July 31, 2026 (in thousands):


	Foreign Currency		Cash Flow
	Translation		Hedges		Total
Balance, April 30, 2026	$	(8,781)	$	(1,550)	$	(10,331)
Other comprehensive income (loss) before reclassifications		(2,901)		(129)		(3,030)
Reclassifications		—		34		34
Deferred income tax valuation allowances		—		(24)		(24)
Balance, July 31, 2026	$	(11,682)	$	(1,669)	$	(13,351)

The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the nine months ended July 31, 2026 (in thousands):


	Foreign		Cash
	Currency		Flow
	Translation		Hedges		Total
Balance, October 31, 2025	$	(8,234)	$	(774)	$	(9,008)
Other comprehensive income (loss) before reclassifications		(3,448)		(1,049)		(4,497)
Reclassifications		—		362		362
Deferred income tax valuation allowances		—		(208)		(208)
Balance, July 31, 2026	$	(11,682)	$	(1,669)	$	(13,351)