Derivative Financial Instruments (Notes)

6 Months Ended

Feb. 28, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

Derivative Financial Instruments

In the second quarter of fiscal 2014, the Company entered into a series of foreign currency exchange forward contracts to sell U.S. Dollars in order to hedge a portion of its exposure to fluctuating rates of exchange on anticipated U.S. Dollar-denominated sales by its Canadian subsidiary with a functional currency of the Canadian Dollar. The Company utilized intercompany foreign currency derivatives and offsetting derivatives with external counterparties in order to designate the intercompany derivatives as hedging instruments. As of February 28, 2014, the Company had six individual foreign currency exchange forward contracts with external counterparties for a total notional amount of $41 million, which have various settlement dates through September 30, 2014. The contracts with external counterparties are reported at fair value in the Condensed Consolidated Balance Sheets measured using quoted foreign currency exchange rates. See Note 11 - Fair Value Measurements for further detail.

The fair value of derivative instruments in the Condensed Consolidated Balance Sheets are as follows (in thousands):

	Asset (Liability) Derivatives
		Fair Value
	Balance Sheet Location	February 28, 2014			August 31, 2013
Foreign currency exchange forward contracts	Other accrued liabilities	$	(316	)	$	—

The following table summarizes the results of cash flow hedging relationships for the three and six months ended February 28 (in thousands):

	Derivative Gain (Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax
	Three Months Ended February 28,					Six Months Ended February 28,
	2014			2013		2014			2013
Foreign currency exchange forward contracts	$	(229	)	$	—	$	(229	)	$	—