XML 32 R29.htm IDEA: XBRL DOCUMENT v2.4.0.8
Derivatives And Risk Management (Tables)
 6 Months Ended
Feb. 28, 2014
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Commodity contract commitments
The following table provides information regarding the Company's commodity contract commitments as of February 28, 2014:
Commodity
 
Long/Short
 
Total
Aluminum
 
Long
 
1,322

 MT
Copper
 
Long
 
634

 MT
Copper
 
Short
 
5,749

 MT
Zinc
 
Long
 
22

 MT
                                      
MT = Metric Ton
Derivatives not designated as hedging instruments
The following tables summarize activities related to the Company's derivative instruments and hedged items recognized in the consolidated statements of operations: 
 
 
 
 
Three Months Ended February 28,
 
Six Months Ended February 28,
Derivatives Not Designated as Hedging Instruments (in thousands)
 
Location
 
2014
 
2013
 
2014
 
2013
Commodity
 
Cost of goods sold
 
$
129

 
$
717

 
$
639

 
$
306

Commodity
 
SG&A expenses
 
—

 
588

 
—

 
—

Foreign exchange
 
Net sales
 
(226
)
 
—

 
(385
)
 
(11
)
Foreign exchange
 
Cost of goods sold
 
(250
)
 
—

 
(371
)
 
—

Foreign exchange
 
SG&A expenses
 
(2,122
)
 
2,916

 
(6,815
)
 
2,880

Other
 
Cost of goods sold
 
—

 
(10
)
 
—

 
5

Gain (loss) before income taxes
 
 
 
$
(2,469
)
 
$
4,211

 
$
(6,932
)
 
$
3,180
Derivatives designated as fair value hedging instruments
Hedged items relate to firm commitments on commercial sales and purchases and capital expenditures.
Derivatives Designated as Fair Value Hedging Instruments (in thousands)
 
 
 
Three Months Ended February 28,
 
Six Months Ended February 28,
 
Location
 
2014
 
2013
 
2014
 
2013
Foreign exchange
 
Net sales
 
$
140

 
$
(228
)
 
$
27

 
$
(228
)
Foreign exchange
 
Cost of goods sold
 
(953
)
 
777

 
(1,080
)
 
548

Gain (loss) before income taxes
 
 
 
$
(813
)
 
$
549

 
$
(1,053
)
 
$
320
Hedged items designated as fair value hedging instruments
Hedged Items Designated as Fair Value Hedging Instruments (in thousands)
 
 
 
Three Months Ended February 28,
 
Six Months Ended February 28,
 
Location
 
2014
 
2013
 
2014
 
2013
Foreign exchange
 
Net sales
 
$
(130
)
 
$
274

 
$
(37
)
 
$
251

Foreign exchange
 
Cost of goods sold
 
955

 
(705
)
 
1,080

 
(548
)
Gain (loss) before income taxes
 
 
 
$
825

 
$
(431
)
 
$
1,043

 
$
(297
)
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) (in thousands)
 
Three Months Ended February 28,
 
Six Months Ended February 28,
 
2014
 
2013
 
2014
 
2013
Commodity
 
$
(24
)
 
$
(13
)
 
$
(113
)
 
$
1

Foreign exchange
 
(402
)
 
70

 
(1,930
)
 
373

Gain (loss), net of income taxes
 
$
(426
)
 
$
57

 
$
(2,043
)
 
$
374
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) (in thousands)
 
 
 
Three Months Ended February 28,
 
Six Months Ended February 28,
 
Location
 
2014
 
2013
 
2014
 
2013
Commodity
 
Cost of goods sold
 
$
(64
)
 
$
6

 
$
(153
)
 
$
6

Foreign exchange
 
Net sales
 
(2
)
 
10

 
(233
)
 
61

Foreign exchange
 
Cost of goods sold
 
(416
)
 
91

 
(1,174
)
 
50

Foreign exchange
 
SG&A expenses
 
13

 
66

 
25

 
76

Interest rate
 
Interest expense
 
87

 
101

 
173

 
203

Gain (loss), net of income taxes
 
 
 
$
(382
)
 
$
274

 
$
(1,362
)
 
$
396
Derivative assets
The fair value of the Company's derivative instruments on the consolidated balance sheets was as follows: 
Derivative Assets (in thousands)
 
February 28, 2014
 
August 31, 2013
Commodity — designated for hedge accounting
 
$
4

 
$
—

Commodity — not designated for hedge accounting
 
926

 
1,066

Foreign exchange — designated for hedge accounting
 
529

 
1,626

Foreign exchange — not designated for hedge accounting
 
574

 
1,238

Derivative assets (other current assets and other assets)*
 
$
2,033

 
$
3,930
Derivative liabilities
Derivative Liabilities (in thousands)
 
February 28, 2014
 
August 31, 2013
Commodity — designated for hedge accounting
 
$
10

 
$
129

Commodity — not designated for hedge accounting
 
74

 
1,268

Foreign exchange — designated for hedge accounting
 
525

 
432

Foreign exchange — not designated for hedge accounting
 
2,941

 
1,738

Derivative liabilities (accrued expenses, other payables and long-term liabilities)*
 
$
3,550

 
$
3,567

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