TD SYNNEX CORP 10-Q

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk Foreign Currency Risk We are exposed to foreign currency risk in the ordinary course of business in our continuing operations. We manage cash flow exposures for our major countries and the foreign currency impact of assets and liabilities denominated in non-functional currencies using a combination of forward contracts. Principal currencies hedged are the Canadian Dollar, the Indian Rupee, the Brazilian Real, the Colombian Peso, the Euro, the Mexican Peso, the Chinese Yuan, and the Chilean Peso . We do not hold or issue derivative financial instruments for trading purposes. The following table presents the hypothetical changes in fair values of our outstanding foreign currency derivative instruments related to our continuing operations as of August 31, 2021 and November 30, 2020, arising from an instantaneous strengthening or weakening of the U.S. dollar by 5%, 10% and 15% (in thousands): Loss on Derivative Instruments Given a Weakening of U.S. dollar by X Percent Gain (Loss) Assuming No Change in Exchange Rate Gain on Derivative Instruments Given a Strengthening of U.S. dollar by X Percent 15% 10% 5% 5% 10% 15% Forward contracts at August 31, 2021 $ (47,621 ) $ (30,303 ) $ (14,808 ) $ (863 ) $ 11,755 $ 23,225 $ 33,698 Forward contracts at November 30, 2020 (48,022 ) (31,306 ) (16,349 ) (2,888 ) 9,291 20,363 32,037 Our foreign exchange contracts have typical maturities of twelve months or less and are executed to protect us against foreign currency exposure pertaining to receivables, payables and intercompany transactions that are denominated in currencies different from the functional currencies of the respective entities. These contracts are marked-to-market and any material gains and losses on our hedge contracts resulting from a hypothetical, instantaneous change in the strength of the U.S. dollar would be significantly offset by mark-to-market gains and losses on the corresponding assets and liabilities being hedged. Interest Rate and Equity Price Risk 40 Table of Contents On August 9, 2021, SYNNEX completed its offering of $2.5 billion aggregate principal amount of senior unsecured notes, consisting of $700.0 million of 1.25% senior notes due 2024, $700.0 million of 1.75% senior notes due 2026, $600.0 million of 2.375% senior notes due 2028, and $500.0 million of 2.65% senior notes due 2031. SYNNEX will pay interest semi-annually on the notes on each of February 9 and August 9, beginning February 9, 2022. See Note 9 – Borrowings to the Consolidated Financial Statements for further discussion. There have been no other material changes in interest rate risk and equity price risk related to our continuing operations during the nine months ended August 31, 2021 from our Annual Report on Form 10-K for the fiscal year ended November 30, 2020. For a discussion of the Company's exposure to interest rate and equity risk, reference is made to disclosures set forth in Part II, Item 7A of our above-mentioned Annual Report on Form 10-K.