Company: SXI
Filing Date: 2025-08-04
Form Type: 10-K
Source: 0001437749-25-024450
Chunk: 655

Company: STANDEX INTERNATIONAL CORP/DE/
Filing Date: 2025-08-04
Form: 10-K
Item: Item 7
Chunk 655
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 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    2024  
 USD   -   4,159 
 CAD   -   6,079 
 JPY   3,250,000   - 

   The table below presents the fair value of derivative financial instruments as well as their classification on the balance sheet at  June 30, (in thousands):

      Asset Derivatives  
  2025   2024  
 Derivative designated as hedging instruments  Balance Sheet Line Item   Fair Value  Balance Sheet Line Item   Fair Value 
 Interest rate swaps  Prepaid expenses and other current assets  $-  Prepaid expenses and other current assets  $4,673 
  $-   $4,673 

   The table below presents the amount of gain (loss) recognized in comprehensive income on our derivative financial instruments (effective portion) designated as hedging instruments and their classification within comprehensive income for the periods ended (in thousands):

       2025    2024    2023  
 Interest rate swaps  $149  $1,154  $6,567 
 Foreign exchange contracts   -   315   (437)
  $149  $1,469  $6,130 

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   The table below presents the