Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 415

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 3
Chunk 415
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 currency transactions are included in results of operations and were not material for any period presented.  

   Derivative Instruments and Hedging Activities   The Company recognizes all derivatives on its balance sheet at fair value.   Forward foreign currency exchange contracts are periodically used to limit the impact of currency fluctuations on certain anticipated foreign cash flows, such as foreign purchases of materials and loan payments from subsidiaries. The Company enters into such contracts for hedging purposes only. The Company has designated certain of these currency contracts as hedges, and changes in the fair value of these contracts are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with these contracts will be reported in net income.    The Company also uses interest rate swaps to manage exposure to interest rates on the Company’s variable rate indebtedness. The Company values the swaps based on contract prices in the derivatives market for similar instruments. The Company has designated its interest rate swap agreements, including any that  may be forward-dated, as cash flow hedges, and changes in the fair value of the swaps are recognized in other comprehensive income until the hedged items are recognized in earnings. Hedge ineffectiveness, if any, associated with the swaps will be reported by the Company in interest expense.   The Company does not hold or issue derivative instruments for trading purposes.  

   Income Taxes   The income tax provision from continuing operations for the fiscal year ended  June 30, 2025 was $11.1 million, or an effective rate of 16.1%, compared to $21.5 million, or an effective rate of 22.6%, for the year ended  June 30, 2024, and $24.8 million, or an effective rate of 15.1%, for the year ended  June 30, 2023. Changes in the effective tax rates from period to period  may be significant as they depend on many factors including, but not limited to, the amount of our income or loss, the mix of income earned in the U.S. versus outside the U.S., the effective tax rate in each of the countries in which we earn income, and any one-time tax issues which occur during the period.   The income tax provision from continuing operations for the fiscal year ended  June 30, 2025 was impacted by the following items: (i) a tax provision of $5.7 million due to the mix of income in various jurisdictions,