DERIVATIVE FINANCIAL INSTRUMENTS

9 Months Ended

May 31, 2013

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

The Company uses derivative financial instruments to manage foreign currency exchange rate risk. The Company’s derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts.

The activity related to the change in net unrealized (losses) gains on cash flow hedges in Accumulated other comprehensive loss was as follows:

	Nine Months Ended May 31,
	2013			2012
Net unrealized (losses) gains on cash flow hedges, beginning of period	$	(31,752	)	$	52,315
Change in fair value	(76,092		)	(194,458		)
Reclassification adjustments into Cost of services	20,272			34,790
Portion attributable to Noncontrolling interests	3,416			13,237
Net unrealized losses on cash flow hedges, end of period	$	(84,156	)	$	(94,116	)

As of May 31, 2013, $(49,242) of the amounts related to derivatives designated as cash flow hedges and recorded in Accumulated other comprehensive loss is expected to be reclassified into earnings in the next 12 months. The ineffective portion of the change in fair value of a cash flow hedge is recognized immediately in Other income, net in the Consolidated Income Statement and, for the three and nine months ended May 31, 2013, was not material. In addition, the Company did not discontinue any cash flow hedges during the three and nine months ended May 31, 2013.

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net loss of $(59,586) and $(38,662) for the three and nine months ended May 31, 2013, respectively. Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were a net loss of $(116,407) and $(201,267) for the three and nine months ended May 31, 2012, respectively. Gains and losses on these contracts are recorded in Other income, net in the Consolidated Income Statement and are offset by gains and losses on the related hedged items.

Fair Value of Derivative Instruments

The notional and fair values of all derivative instruments were as follows:

	May 31, 2013			August 31, 2012
Assets
Cash Flow Hedges
Other current assets	$	7,888		$	15,392
Other non-current assets	4,408			36,106
Other Derivatives
Other current assets	10,133			9,988
Total assets	$	22,429		$	61,486
Liabilities
Cash Flow Hedges
Other accrued liabilities	$	58,941		$	59,458
Other non-current liabilities	40,606			23,471
Other Derivatives
Other accrued liabilities	42,740			11,147
Total liabilities	$	142,287		$	94,076
Total fair value	$	(119,858	)	$	(32,590	)
Total notional value	$	5,205,934		$	4,853,191