Schedule of fair values of derivative instruments |
The following table summarizes the fair values of our derivative instruments as of the end of the periods shown: | | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | August 31, 2020 | | | | | | | Derivatives designated as hedging instruments | Hedge Type | Final Settlement Date | Notional Amount | Prepaid Expenses and Other Current Assets | Other Assets | Accrued Expenses and Other Current Liabilities | Other Liabilities, Non- current | Zero-cost collar - Euro | Cash flow | 02/2021 | € | 4,000 | | $ | — | | $ | — | | $ | 63 | | $ | — | | Foreign currency contracts - sell Euro | Cash flow | 02/2022 | € | 47,975 | | — | | — | | 1,802 | | 845 | | Foreign currency contracts - sell Canadian Dollar | Cash flow | 02/2022 | $ | 28,750 | | — | | — | | 708 | | 165 | | Zero-cost collar - Pound | Cash flow | 02/2021 | £ | 4,000 | | — | | — | | 266 | | — | | Foreign currency contracts - sell Pound | Cash flow | 02/2022 | £ | 26,635 | | — | | — | | 621 | | 526 | | Foreign currency contracts - sell Mexican Peso | Cash flow | 11/2020 | $ | 15,000 | | — | | — | | — | | — | | Foreign currency contracts - Sell Australian Dollar | Cash flow | 11/2020 | $ | 2,000 | | — | | — | | 110 | | — | | Interest rate swaps | Cash flow | 01/2024 | $ | 225,000 | | — | | — | | 5,114 | | 8,052 | | Subtotal | | | | — | | — | | 8,684 | | 9,588 | | | | | | | | | | Derivatives not designated under hedge accounting | | | | | | | | Foreign currency contracts - cross-currency debt swaps - Euro | (1) | 04/2022 | € | 6,000 | | — | | — | | — | | 726 | | Foreign currency contracts - cross-currency debt swaps - Pound | (1) | 04/2022 | £ | 4,500 | | — | | — | | — | | 512 | | Subtotal | | | | — | | — | | — | | 1,238 | | Total fair value | | | | $ | — | | $ | — | | $ | 8,684 | | $ | 10,826 | |
| | | | | | | | | | | | | | | | | | | | | | | | (in thousands) | February 29, 2020 | | | | | | | Derivatives designated as hedging instruments | Hedge Type | Final Settlement Date | Notional Amount | Prepaid Expenses and Other Current Assets | Other Assets | Accrued Expenses and Other Current Liabilities | Other Liabilities, Non- current | Zero-cost collar - Euro | Cash flow | 02/2021 | € | 8,000 | | $ | 74 | | $ | — | | $ | — | | $ | — | | Foreign currency contracts - sell Euro | Cash flow | 05/2021 | € | 25,875 | | 837 | | — | | — | | 15 | | Foreign currency contracts - sell Canadian Dollar | Cash flow | 02/2021 | $ | 14,000 | | 202 | | — | | — | | — | | Zero-cost collar - Pound | Cash flow | 02/2021 | £ | 6,500 | | — | | — | | 144 | | — | | Foreign currency contracts - sell Pound | Cash flow | 05/2021 | £ | 13,000 | | 435 | | 23 | | — | | — | | Foreign currency contracts - sell Mexican Peso | Cash flow | 05/2020 | $ | 10,000 | | 12 | | — | | — | | — | | Interest rate swaps | Cash flow | 01/2024 | $ | 225,000 | | — | | — | | 3,489 | | 7,228 | | Subtotal | | | | 1,560 | | 23 | | 3,633 | | 7,243 | | | | | | | | | | Derivatives not designated under hedge accounting | | | | | | | | Foreign currency contracts - cross-currency debt swaps - Euro | (1) | 04/2020 | € | 4,400 | | 473 | | — | | — | | — | | Foreign currency contracts - cross-currency debt swaps - Pound | (1) | 04/2020 | £ | 5,000 | | 27 | | — | | — | | — | | Subtotal | | | | 500 | | — | | — | | — | | Total fair value | | | | $ | 2,060 | | $ | 23 | | $ | 3,633 | | $ | 7,243 | | (1)These are foreign currency contracts for which we have not elected hedge accounting. We refer to them as “cross-currency debt swaps”. They, in effect, adjust the currency denomination of a portion of our outstanding debt to the Euro and British Pound, as applicable, for the notional amounts reported, creating an economic hedge against currency movements.
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Schedule of pre-tax effect of derivative instruments |
The following table summarizes the pre-tax effect of derivative instruments for the periods shown: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended August 31, | | | | | | | | | | | | | | | | Gain (Loss) Recognized in OCI (effective portion) | | | | Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | | | | | | Gain (Loss) Recognized As Income | | | | | (in thousands) | 2020 | | 2019 | | Location | | 2020 | | 2019 | | Location | | 2020 | | 2019 | Currency contracts - cash flow hedges | $ | (7,277) | | | $ | (482) | | | SG&A | | $ | 92 | | | $ | (992) | | | | | $ | — | | | $ | — | | Interest rate swaps - cash flow hedges | 957 | | | (4,126) | | | Interest expense | | — | | | — | | | Interest expense | | (1,207) | | | 77 | | Cross-currency debt swaps - principal | — | | | — | | | | | — | | | — | | | SG&A | | (949) | | | 344 | | Cross-currency debt swaps - interest | — | | | — | | | | | — | | | — | | | Interest Expense | | — | | | — | | Total | $ | (6,320) | | | $ | (4,608) | | | | | $ | 92 | | | $ | (992) | | | | | $ | (2,156) | | | $ | 421 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six Months Ended August 31, | | | | | | | | | | | | | | | | Gain (Loss) Recognized in OCI (effective portion) | | | | Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | | | | | | Gain (Loss) Recognized As Income | | | | | (in thousands) | 2020 | | 2019 | | Location | | 2020 | | 2019 | | Location | | 2020 | | 2019 | Currency contracts - cash flow hedges | $ | (7,203) | | | $ | (668) | | | SG&A | | $ | (673) | | | $ | (2,210) | | | | | $ | — | | | $ | — | | Interest rate swaps - cash flow hedges | (2,449) | | | (9,326) | | | Interest expense | | — | | | — | | | Interest expense | | (1,933) | | | 231 | | Cross-currency debt swaps - principal | — | | | — | | | | | — | | | — | | | SG&A | | (1,098) | | | 808 | | Cross-currency debt swaps - interest | — | | | — | | | | | — | | | — | | | Interest expense | | 74 | | | 74 | | Total | $ | (9,652) | | | $ | (9,994) | | | | | $ | (673) | | | $ | (2,210) | | | | | $ | (2,957) | | | $ | 1,113 | |
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