DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)
 6 Months Ended
Apr. 30, 2019
Schedule of Fair Value of Derivative Instruments
We recognize the fair value of derivative instruments as assets and liabilities on a gross basis on our Condensed Consolidated Balance Sheets. As of April 30, 2019 and October 31, 2018, all derivative instruments were recorded at fair value on our Consolidated Balance Sheets as follows (in thousands):
 
 
 
April 30, 2019
 
 
October 31, 2018
 
Derivatives
 
Balance Sheet
Location
 
Fair
Value
 
 
Balance Sheet
Location
 
Fair
Value
 
Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Derivative assets
 
$
1,074
 
 
Derivative assets
 
$
2,654
 
Foreign exchange forward contracts
 
Derivative liabilities
 
$
729
 
 
Derivative liabilities
 
$
1,616
 
Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Derivative assets
 
$
440
 
 
Derivative assets
 
$
431
 
Foreign exchange forward contracts
 
Derivative liabilities
 
$
232
 
 
Derivative liabilities
 
$
404
 
Period One [Member]  
Schedule of Changes in Components of Accumulated Other Comprehensive Loss
The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the three months ended April 30, 2019 (in thousands):
 
 
 
Foreign
Currency
Translation
 
 
Cash Flow
Hedges
 
 
Total
 
Balance, January 31, 2019
 
$
(9,283
)
 
$
471
 
 
$
(8,812
)
Other comprehensive income (loss) before reclassifications
 
 
(1,386
)
 
 
289
 
 
 
(1,097
)
Reclassifications
 
 
—
 
 
 
(48
)
 
 
(48
)
Balance, April 30, 2019
 
$
(10,669
)
 
$
712
 
 
$
(9,957
)
 
The following table presents the changes in the components of Accumulated other comprehensive loss, net of tax, for the six months ended April 30, 2019 (in thousands:)
 
 
 
Foreign
Currency
Translation
 
 
Cash Flow
Hedges
 
 
Total
 
Balance, October 31, 2018
 
$
(10,592
)
 
$
729
 
 
$
(9,863
)
Other comprehensive income (loss) before reclassifications
 
 
(77
)
 
 
19
 
 
 
(58
)
Reclassifications
 
 
—
 
 
 
(36
)
 
 
(36
)
Balance, April 30, 2019
 
$
(10,669
)
 
$
712
 
 
$
(9,957
)
Period One [Member] | Designated as Hedging Instrument [Member]  
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 Income, net of tax, during the three months ended April 30, 2019 and 2018 (in thousands):
 
Derivatives
 
Amount of Gain
(Loss) Recognized in
Other Comprehensive
Income (Loss)
 
 
Location of
Gain (Loss)
Reclassified
from Other
Comprehensive
Income (Loss)
 
Amount of Gain (Loss)
Reclassified from Other
Comprehensive
Income (Loss)
 
 
 
Three Months Ended
April 30,
 
 
 
 
Three Months Ended
April 30,
 
 
 
2019
 
 
2018
 
 
 
 
2019
 
 
2018
 
Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts – Intercompany sales/purchases
 
$
289
 
 
$
316
 
 
Cost of sales and service
 
$
48
 
 
$
(415
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contract – Net investment
 
$
74
 
 
$
89
 
 
 
 
 
 
 
 
 
 
 
 
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 Income, net of tax, during the six months ended April 30, 2019 and 2018 (in thousands):
 
Derivatives
 
Amount of Gain
(Loss) Recognized in
Other Comprehensive
Income (Loss)
 
 
Location of
Gain (Loss)
Reclassified
from Other
Comprehensive
Income (Loss)
 
Amount of Gain
(Loss) Reclassified
from Other
Comprehensive
Income (Loss)
 
 
 
Six Months Ended
April 30,
 
 
 
 
Six Months Ended
April 30,
 
 
 
2019
 
 
2018
 
 
 
 
2019
 
 
2018
 
Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(Effective portion)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts – Intercompany sales/purchases
 
$
19
 
 
$
(826
)
 
Cost of sales and service
 
$
36
 
 
$
(193
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contract – Net investment
 
$
72
 
 
$
(77
)
 
 
 
 
 
 
 
 
 
 
Period One [Member] | Not Designated as Hedging Instrument [Member]  
Schedule of Derivatives Not Designated as Hedging Instruments
We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the three months ended April 30, 2019 and 2018 on derivative instruments not designated as hedging instruments (in thousands):
 
Derivatives
 
Location of Gain
(Loss) Recognized
in Operations
 
Amount of Gain (Loss)
Recognized in Operations
 
 
 
 
 
Three Months Ended
April 30,
 
 
 
 
 
2019
 
 
2018
 
Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Other income (expense), net
 
$
345
 
 
$
(12
)
 
We recognized the following gains and losses in our Condensed Consolidated Statements of Income during the six months ended April 30, 2019 and 2018 on derivative instruments not designated as hedging instruments (in thousands):
 
Derivatives
 
Location of Gain
(Loss) Recognized
in Operations
 
Amount of Gain (Loss)
Recognized in Operations
 
 
 
 
 
Six Months Ended
April 30,
 
 
 
 
 
2019
 
 
2018
 
Not Designated as Hedging Instruments:
 
 
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
 
Other income (expense), net
 
$
111
 
 
$
(1,268
)