Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

May 01, 2026

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value of Derivatives and Consolidated Balance Sheet Location

The following table presents the fair value and location of the company’s derivative instruments on the Condensed Consolidated Balance Sheets:


(Dollars in millions)	May 1, 2026		May 2, 2025		October 31, 2025
Derivative assets:
Derivatives designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	$	6.1	$	0.1	$	3.6
Derivatives not designated as cash flow hedging instruments:
Prepaid expenses and other current assets
Forward currency contracts	0.7		0.2		0.5
Total derivative assets	$	6.8	$	0.3	$	4.1

Derivative liabilities:
Derivatives designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	$	7.1	$	6.7	$	4.3
Derivatives not designated as cash flow hedging instruments:
Accrued liabilities
Forward currency contracts	4.0		1.7		1.3
Total derivative liabilities	$	11.1	$	8.4	$	5.6

Schedule of Effects of Master Netting Arrangements on Fair Value of Derivative Contracts Recorded in Consolidated Balance Sheets

The following table presents the effects of the master netting arrangements on the fair value of the company’s derivative instruments that are recorded on the Condensed Consolidated Balance Sheets:


(Dollars in millions)	May 1, 2026		May 2, 2025		October 31, 2025
Derivative assets:
Forward currency contracts:
Gross amount of derivative assets	$	6.8	$	0.3	$	4.2
Derivative liabilities offsetting derivative assets	—		—		0.1
Net amount of derivative assets	$	6.8	$	0.3	$	4.1

Derivative liabilities:
Forward currency contracts:
Gross amount of derivative liabilities	$	11.3	$	9.9	$	6.2
Derivative assets offsetting derivative liabilities	0.2		1.5		0.6
Net amount of derivative liabilities	$	11.1	$	8.4	$	5.6

Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings for Derivatives Designated as Cash Flow Hedging Instruments

The following table presents the impact and location of the amounts reclassified from AOCL into net earnings on the Condensed Consolidated Statements of Earnings and the impact of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the company's derivatives designated as cash flow hedging instruments for the three and six months ended May 1, 2026 and May 2, 2025:


	Three Months Ended
	Loss Reclassified from AOCL into Earnings				Gain (Loss) Recognized in OCI on Derivatives
(Dollars in millions)	May 1, 2026		May 2, 2025		May 1, 2026		May 2, 2025
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	(3.1)	$	1.3	$	5.4	$	(13.6)
Cost of sales	0.5		(1.6)		(1.6)		4.0
Total derivatives designated as cash flow hedging instruments	$	(2.6)	$	(0.3)	$	3.8	$	(9.6)


	Six Months Ended
	Loss Reclassified from AOCL into Earnings				Loss Recognized in OCI on Derivatives
(Dollars in millions)	May 1, 2026		May 2, 2025		May 1, 2026		May 2, 2025
Derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Net sales	$	(5.4)	$	1.5	$	(3.5)	$	(5.2)
Cost of sales	0.5		(3.2)		3.1		4.3
Total derivatives designated as cash flow hedging instruments	$	(4.9)	$	(1.7)	$	(0.4)	$	(0.9)

The following tables present the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives designated as cash flow hedging instruments and the related components excluded from effectiveness testing:


	(Loss) Gain Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in millions)	May 1, 2026				May 2, 2025
Three Months Ended	Net Sales		Cost of Sales		Net Sales		Cost of Sales
Condensed Consolidated Statements of Earnings (Loss) income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	1,424.7	$	(942.0)	$	1,317.9	$	(881.2)
(Loss) gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of (loss) gain reclassified from AOCL into earnings	(3.1)		0.5		1.3		(1.6)
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	1.3	$	0.8	$	0.5	$	0.7


	(Loss) Gain Recognized in Earnings on Cash Flow Hedging Instruments
(Dollars in millions)	May 1, 2026				May 2, 2025
Six Months Ended	Net Sales		Cost of Sales		Net Sales		Cost of Sales
Condensed Consolidated Statements of Earnings income (expense) amounts in which the effects of cash flow hedging instruments are recorded	$	2,461.0	$	(1,641.8)	$	2,312.9	$	(1,540.6)
(Loss) gain on derivatives designated as cash flow hedging instruments:
Forward currency contracts:
Amount of (loss) gain reclassified from AOCL into earnings	(5.4)		0.5		1.5		(3.2)
Gain on components excluded from effectiveness testing recognized in earnings based on changes in fair value	$	2.5	$	1.1	$	0.7	$	1.6

Schedule of Impact of Derivative Instruments on Consolidated Statements of Earnings (Loss) for Derivatives Not Designated as Hedging Instruments

The following table presents the impact and location of derivative instruments on the Condensed Consolidated Statements of Earnings for the company’s derivatives not designated as cash flow hedging instruments:


	Three Months Ended				Six Months Ended
(Dollars in millions)	May 1, 2026		May 2, 2025		May 1, 2026		May 2, 2025
Loss on derivatives not designated as cash flow hedging instruments
Forward currency contracts:
Other loss, net	$	(1.0)	$	(4.7)	$	(5.6)	$	(3.7)
Total loss on derivatives not designated as cash flow hedging instruments	$	(1.0)	$	(4.7)	$	(5.6)	$	(3.7)

TORO CO 10-Q