Derivative Instruments

3 Months Ended

May. 31, 2015

Derivative Instruments

NOTE 7—Derivative Instruments

The Company transacts business in various foreign countries and is, therefore, subject to risk of foreign currency exchange rate fluctuations. The Company from time to time enters into forward contracts to economically hedge transactional exposure associated with commitments arising from trade accounts receivable, trade accounts payable and fixed purchase obligations denominated in a currency other than the functional currency of the respective operating entity. All derivative instruments are recorded on the Consolidated Balance Sheets at their respective fair market values. The Company has elected not to prepare and maintain the documentation required to qualify for hedge accounting treatment and, therefore, changes in fair value are recorded in the Consolidated Statements of Operations.

The effects of derivative instruments on the Company’s Consolidated Financial Statements are as follows as of May 31, 2015 and for the three months then ended (in thousands):

	As of May 31, 2015								Three Months Ended May 31, 2015
	Balance Sheet Location		Fair Value			Notional Value		Location of Gain (Loss)  Recognized in Income on Derivatives	Amount of Gain (Loss)  Recognized in Income on Derivatives
Assets—foreign currency forward contracts not designated as hedges		Other current assets	$	86		$	2,765	Other income (expense), net	$	680
Liabilities—foreign currency forward contracts not designated as hedges		Accounts payable and accrued expenses		(293	)		29,919	Other income (expense), net		(809	)
TOTAL			$	(207	)	$	32,684		$	(129	)

The effects of derivative instruments on the Company’s Consolidated Financial Statements are as follows as of May 31, 2014 and for the three months then ended (in thousands):

	As of May 31, 2014								Three Months Ended May 31, 2014
	Balance Sheet Location		Fair Value			Notional Value		Location of Gain (Loss)  Recognized in Income on Derivatives	Amount of  Gain (Loss) Recognized in Income on Derivatives
Assets—foreign currency forward contracts not designated as hedges		Other current assets	$	39		$	17,325	Other income (expense), net	$	174
Liabilities—foreign currency forward contracts not designated as hedges		Accounts payable and accrued expenses		(83	)		12,108	Other income (expense), net		(257	)
TOTAL			$	(44	)	$	29,433		$	(83	)