Derivative Financial Instruments and Risk Management

12 Months Ended

Jan. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments and Risk Management

Note 10—Derivative Financial Instruments and Risk Management

In 2017, we entered into a cross-currency interest rate swap and an interest rate swap to manage the interest rate risk.

On July 30, 2020, we terminated these two swaps. The terms of the Amended and Restated Credit Agreement dated as of July 30, 2020, caused those swaps to cease to be effective hedges of the underlying exposures. The termination of the swaps was contracted immediately prior to the end of the second quarter of fiscal 2021 at a cash cost of approximately $0.7 million which was settled in the third quarter of fiscal 2021. Upon termination, the remaining balance of $58,000 in accumulated other comprehensive loss related to the cross-currency interest rate swap was reclassified into earnings as the forecasted foreign currency interest payments will not occur.

The $0.2 million remaining balance in accumulated other comprehensive loss related to the interest rate swap was amortized into earnings through the original term of the hedge relationship as the underlying floating interest rate debt still exists.

At January 31, 2023, we have fully reclassified all of the net losses on the frozen other comprehensive income balance from accumulated other comprehensive loss to earnings associated with the terminated interest rate swap due to the payment of variable interest associated with the floating interest rate debt.

The following tables present the impact of the derivative instruments in our consolidated financial statements for the years ended January 31, 2023 and 2022:

	Years Ended
Cash Flow Hedge (In thousands)	Amount of Gain(Loss) Recognized in OCI on Derivative				Location of Gain (Loss) Reclassified from Accumulated OCI into Income		Amount of Gain (Loss) Reclassified from Accumulated OCI into Income
	January 31, 2023		January 31, 2022				January 31, 2023			January 31, 2022
Swap contracts	$	—	$	—		Other Income	$	(59	)	$	(79	)