Financial Instruments and Risk Management (Tables)

3 Months Ended

May 31, 2018

Financial Instruments and Risk Management

Schedule of fair values of derivative instruments

	May 31, 2018
					Prepaid				Accrued
					Expenses				Expenses
		Final			and Other				and Other		Other
(in thousands)	Hedge	Settlement	Notional		Current		Other		Current		Liabilities,
Derivatives designated as hedging instruments	Type	Date	Amount		Assets		Assets		Liabilities		Non-current
Foreign currency contracts - sell Euro	Cash flow	07/2019	€	29,500	$	1,181	$	128	$	-	$	-
Foreign currency contracts - sell Canadian Dollars	Cash flow	06/2019	$	21,250		579		18		-		-
Foreign currency contracts - sell Pounds	Cash flow	07/2019	£	17,500		591		102		-		-
Foreign currency contracts - sell Mexican Pesos	Cash flow	09/2018	$	20,000		99		-		-		-
Interest rate swap	Cash flow	12/2021	$	100,000		415		2,005		-		-
Subtotal						2,865		2,253		-		-
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swaps - Euro	(1)	4/2020	$	5,280		-		11		-		-
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	4/2020	$	6,395		-		-		-		361
Subtotal						-		11		-		361
Total fair value					$	2,865	$	2,264	$	-	$	361

	February 28, 2018
					Prepaid				Accrued
					Expenses				Expenses
		Final			and Other				and Other		Other
	Hedge	Settlement	Notional		Current		Other		Current		Liabilities,
Derivatives designated as hedging instruments	Type	Date	Amount		Assets		Assets		Liabilities		Non-current
Foreign currency contracts - sell Euro	Cash flow	07/2019	€	38,000	$	-	$	102	$	1,320	$	-
Foreign currency contracts - sell Canadian Dollars	Cash flow	06/2019	$	27,750		378		101		-		-
Foreign currency contracts - sell Pounds	Cash flow	04/2019	£	19,500		-		56		513		-
Foreign currency contracts - sell Mexican Pesos	Cash flow	05/2018	$	20,000		5		-		-		-
Interest rate swap	Cash flow	12/2021	$	100,000		539		1,942		-		-
Subtotal						922		2,201		1,833		-
Derivatives not designated under hedge accounting
Foreign currency contracts - cross-currency debt swap - Euro	(1)	4/2020	$	5,280		-		-		-		208
Foreign currency contracts - cross-currency debt swaps - Pound	(1)	4/2020	$	6,395		-		-		-		565
Subtotal						-		-		-		773
Total fair value					$	922	$	2,201	$	1,833	$	773

_____________________

⁽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. 

Schedule of pre-tax effect of derivative instruments

	Three Months Ended May 31,
	Gain (Loss)				Gain (Loss) Reclassified from
	Recognized in OCI				Accumulated Other Comprehensive					Gain (Loss) Recognized
	(effective portion)				Income (Loss) into Income					As Income
(in thousands)	2018		2017		Location	2018		2017		Location	2018		2017
Currency contracts - cash flow hedges	$	4,576	$	(2,245)	SG&A	$	687	$	302		$	-	$	-
Interest rate swaps - cash flow hedges		(61)		-	Interest expense		-		-	Interest expense		75		-
Cross-currency debt swaps - principal		-		-			-		-	SG&A		423		(549)
Cross-currency debt swaps - interest		-		-			-		-	Interest Expense		74		-
Total	$	4,515	$	(2,245)		$	687	$	302		$	572	$	(549)