Derivatives And Risk Management (Tables)

9 Months Ended

May 31, 2012

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Commodity contract commitments

The following table provides commodity contract commitments as of May 31, 2012:

Commodity	Long/Short	Total
Aluminum	Long	6,325	MT
Aluminum	Short	3,400	MT
Copper	Long	1,122	MT
Copper	Short	5,103	MT
Zinc	Long	15	MT
Natural Gas	Long	50,000	MMBtu

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• MT = Metric Ton

• MMBtu = One million British thermal units

Derivatives not designated as hedging instruments

The following tables summarize activities related to the Company’s derivative instruments and hedged (underlying) items recognized within the statements of operations (in thousands):

Derivatives Not Designated as Hedging Instruments		Three Months Ended May 31,						Nine Months Ended May 31,
	Location	2012			2011			2012			2011
Commodity	Cost of goods sold	$	5,737		$	4,296		$	5,978		$	(11,744	)
Foreign exchange	Net sales	(18		)	39			(199		)	35
Foreign exchange	Cost of goods sold	—			305			(537		)	1,174
Foreign exchange	SG&A expenses	1,173			(3,984		)	479			(4,823		)
Gain (loss) before taxes		$	6,892		$	656		$	5,721		$	(15,358	)

Derivatives designated as fair value hedging instruments

The Company’s fair value hedges are designated for accounting purposes with gains and losses on the hedged (underlying) items offsetting the gain or loss on the related derivative transaction. Hedged (underlying) items relate to firm commitments on commercial sales and purchases and capital expenditures.

Derivatives Designated as Fair Value Hedging Instruments		Three Months Ended May 31,						Nine Months Ended May 31,
	Location	2012			2011			2012		2011
Foreign exchange	SG&A expenses	$	5,805		$	(5,382	)	$	4,255	$	(14,157	)
Interest rate	Interest expense	(6,613		)	11,091			10,561		17,331
Gain (loss) before taxes		$	(808	)	$	5,709		$	14,816	$	3,174

Hedged (underlying) items designated as fair value hedging instruments

Hedged (Underlying) Items Designated as Fair Value Hedging Instruments		Three Months Ended May 31,						Nine Months Ended May 31,
	Location	2012			2011			2012			2011
Foreign exchange	Net sales	$	—		$	77		$	—		$	126
Foreign exchange	SG&A expenses	(5,805		)	5,299			(4,255		)	14,031
Interest rate	Interest expense	6,613			(11,090		)	(10,561		)	(17,331		)
Gain (loss) before taxes		$	808		$	(5,714	)	$	(14,816	)	$	(3,174	)

Effective portion of derivatives designated as cash flow hedging instruments recognized In accumulated other comprehensive income (loss)

Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss)	Three Months Ended May 31,						Nine Months Ended May 31,
	2012			2011			2012			2011
Commodity	$	(22	)	$	(266	)	$	(3	)	$	126
Foreign exchange	(1,001		)	125			(2,629		)	296
Gain (loss), net of taxes	$	(1,023	)	$	(141	)	$	(2,632	)	$	422

Effective portion of derivatives designated as cash flow hedging instruments reclassified from accumulated other comprehensive income (loss)

Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss)		Three Months Ended May 31,					Nine Months Ended May 31,
	Location	2012			2011		2012			2011
Commodity	Cost of  goods sold	$	3		$	133	$	18		$	103
Foreign exchange	Net sales	40			—		(1,153		)	—
Foreign exchange	SG&A expenses	(116		)	16		(277		)	82
Interest rate	Interest expense	102			115		305			344
Gain (loss), net of taxes		$	29		$	264	$	(1,107	)	$	529

Derivative assets

The Company’s derivative instruments were recorded at their respective fair values as follows on the consolidated balance sheets (in thousands):

Derivative Assets	May 31, 2012		August 31, 2011
Commodity — designated	$	15	$	17
Commodity — not designated	4,835		2,329
Foreign exchange — designated	2,391		893
Foreign exchange — not designated	1,415		970
Current interest rate — designated	—		19,134
Long-term interest rate — designated	—		29,515
Derivative assets (other current assets and other assets)*	$	8,656	$	52,858

Derivative liabilities

Derivative Liabilities	May 31, 2012		August 31, 2011
Commodity — designated	$	6	$	—
Commodity — not designated	2,977		2,625
Foreign exchange — designated	1,456		805
Foreign exchange — not designated	1,844		2,258
Derivative liabilities (accrued expenses, other payables and long-term liabilities)*	$	6,283	$	5,688

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* Derivative assets and liabilities do not include the hedged (underlying) items designated as fair value hedges.