Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 326

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 8
Chunk 326
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 Financial Instruments
    
   Interest Rate Swaps
    
   The fair value of the swaps recognized in accrued liabilities and in other comprehensive income (loss) is as follows (in thousands):

     Effective Date   Notional    Fixed   Maturity   Fair Value at June 30,  
   Amount    Interest Rate     2025    2024  
 February 23, 2023   100,000   0.86%   March 23, 2025  $-  $3,045 
 May 25, 2023   25,000   0.81%   April 24, 2025   -   863 
 February 24, 2023   25,000   0.86%   March 24, 2025   -   765 
          $-  $4,673 

   The Company reported no losses for the years ended  June 30, 2025, 2024, and 2023, as a result of hedge ineffectiveness. Future changes in these swap arrangements, including termination of the agreements,  may result in a reclassification of any gain or loss reported in accumulated other comprehensive income (loss) into earnings as an adjustment to interest expense.  Accumulated other comprehensive income (loss) related to these instruments is being amortized into interest expense concurrent with the hedged exposure.
    
   Foreign Exchange Contracts
    
   Forward foreign currency exchange contracts are used to limit the impact of currency fluctuations on certain anticipated foreign cash flows, such as sales to foreign customers and loan payments between 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. At  June 30, 2025 and 2024, the Company had outstanding forward contracts related to hedges of intercompany loans that had an immaterial amount of net unrealized loss.  The contracts have maturity dates in fiscal year 2025, which correspond to the related intercompany loans.  The notional amounts of these instruments, by currency in thousands, are as follows:

     Currency   2025