DERIVATIVES AND RISK MANAGEMENT (Tables)

3 Months Ended

Nov. 30, 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 November 30, 2014:

Commodity	Long/Short	Total
Aluminum	Long	2,366	MT
Aluminum	Short	100	MT
Copper	Long	1,531	MT
Copper	Short	5,012	MT
Zinc	Long	7	MT
Natural Gas	Long	540,000	MMBTUs

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 items recognized in the consolidated statements of earnings:

		Three Months Ended November 30,
Derivatives Not Designated as Hedging Instruments (in thousands)	Location	2014		2013
Commodity	Cost of goods sold	$	3,435	$	510
Foreign exchange	Net sales	2,436		(159		)
Foreign exchange	Cost of goods sold	1,871		(121		)
Foreign exchange	SG&A expenses	12,200		(4,693		)
Gain (loss) before income taxes		$	19,942	$	(4,463	)

Derivatives designated as fair value hedging instruments

Hedged items relate to firm commitments on commercial sales and purchases.

Derivatives Designated as Fair Value Hedging Instruments (in thousands)		Three Months Ended November 30,
	Location	2014			2013
Foreign exchange	Net sales	$	(175	)	$	(113	)
Foreign exchange	Cost of goods sold	1,154			(127		)
Gain (loss) before income taxes		$	979		$	(240	)

Hedged items designated as fair value hedging instruments

Hedged Items Designated as Fair Value Hedging Instruments (in thousands)		Three Months Ended November 30,
	Location	2014			2013
Foreign exchange	Net sales	$	179		$	93
Foreign exchange	Cost of goods sold	(1,154		)	125
Gain (loss) before income taxes		$	(975	)	$	218

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 November 30,
	2014			2013
Commodity	$	(68	)	$	(89	)
Foreign exchange	(457		)	(1,528		)
Gain (loss), net of income taxes	$	(525	)	$	(1,617	)

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 November 30,
	Location	2014			2013
Commodity	Cost of goods sold	$	(13	)	$	(89	)
Foreign exchange	Net sales	—			(231		)
Foreign exchange	Cost of goods sold	(130		)	(758		)
Foreign exchange	SG&A expenses	17			12
Interest rate	Interest expense	87			86
Gain (loss), net of income taxes		$	(39	)	$	(980	)

Derivative assets

The fair value of the Company's derivative instruments on the consolidated balance sheets was as follows:

Derivative Assets (in thousands)	November 30, 2014		August 31, 2014
Commodity — designated for hedge accounting	$	5	$	42
Commodity — not designated for hedge accounting	2,132		869
Foreign exchange — designated for hedge accounting	1,111		136
Foreign exchange — not designated for hedge accounting	3,529		1,853
Derivative assets (other current assets)*	$	6,777	$	2,900

Derivative liabilities

Derivative Liabilities (in thousands)	November 30, 2014		August 31, 2014
Commodity — designated for hedge accounting	$	97	$	6
Commodity — not designated for hedge accounting	467		162
Foreign exchange — designated for hedge accounting	774		325
Foreign exchange — not designated for hedge accounting	1,271		1,010
Derivative liabilities (accrued expenses and other payables)*	$	2,609	$	1,503

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