Foreign Currency Contracts

6 Months Ended

Jan. 31, 2015

Foreign Currency Contracts

(16) FOREIGN CURRENCY CONTRACTS

During the quarter ended October 31, 2014, the Company entered into foreign currency forward contracts to manage the foreign currency risk associated with anticipated foreign currency denominated transactions. As of January 31, 2015, the aggregate notional amount of the Company’s outstanding foreign currency forward contracts was $19.8 million as summarized below:

	January 31, 2015
	Foreign		Notional
	Currency		Contract
Currency Contracts	Amount		Value in USD
	(In thousands)
Buy CNH		89,774	$	14,477
Buy CZK		52,717		2,488
Buy EUR		2,145		2,785
			$	19,750

As of January 31, 2015, the fair value of the Company’s short-term foreign currency contracts was $1.1 million and is included in other current liabilities. These contracts are designed to hedge the Company’s exposure to transactions denominated in a non-functional currency and are not accounted for as hedges under the accounting standards. Accordingly, changes in the fair value of these instruments are recognized in earnings during the period of change as a component of Other gains (losses), net. The contracts were classified within Level 2 of the fair value hierarchy. During the three and six months ended January 31, 2015, the Company recognized $0.8 million and $1.1 million in net losses associated with these contracts, respectively.