Derivative Financial Instruments and Hedging Activities (Tables)

3 Months Ended

Nov. 30, 2012

Fair Value of Assets and Liabilities Related to Foreign Forward Exchange Contracts Measured on Recurring Basis

The following table presents the Company’s assets and liabilities related to forward foreign exchange contracts measured at fair value on a recurring basis as of November 30, 2012, aggregated by the level in the fair-value hierarchy in which those measurements are classified (in thousands):

	Level 1		Level 2			Level 3		Total
Assets:
Forward foreign exchange contracts	$	—	$	9,192		$	—	$	9,192
Liabilities:
Forward foreign exchange contracts		—		(8,384	)		—		(8,384	)
Total	$	—	$	808		$	—	$	808

Fair Value of Derivative Instruments Located on Consolidated Balance Sheets

The following tables present the fair value of the Company’s derivative instruments located on the Condensed Consolidated Balance Sheets utilized for foreign currency risk management purposes at November 30, 2012 and August 31, 2012 (in thousands):

	Fair Values of Derivative Instruments At November 30, 2012
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Forward foreign exchange contracts	Prepaid expenses and other current assets	$	2,086	Other accrued expense	$	408
Derivatives not designated as hedging instruments:
Forward foreign exchange contracts	Prepaid expenses and other current assets	$	7,106	Other accrued expense	$	7,976

	Fair Values of Derivative Instruments At August 31, 2012
	Asset Derivatives			Liability Derivatives
	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives designated as hedging instruments:
Forward foreign exchange contracts	Prepaid expenses and other current assets	$	1,335	Other accrued expense	$	1,190
Derivatives not designated as hedging instruments:
Forward foreign exchange contracts	Prepaid expenses and other current assets	$	4,445	Other accrued expense	$	2,976

Impact of Derivatives for Foreign Currency Risk and Not Designated as Hedging Instruments on Earnings

The following tables present the impact that changes in fair value of derivatives utilized for foreign currency risk management purposes and not designated as hedging instruments had on earnings during the three months ended November 30, 2012 and 2011 (in thousands):

Derivatives not designated as hedging instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative  during the Three Months Ended November 30, 2012
Forward foreign exchange contracts	Cost of revenue	$	2,907

Derivatives not designated as hedging instruments	Location of Gain (Loss) Recognized in Income on Derivative	Amount of Gain (Loss) Recognized in Income on Derivative  during the Three Months Ended November 30, 2011
Forward foreign exchange contracts	Cost of revenue	$	2,972

Changes Related to Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) Net of Tax

The changes related to cash flow hedges (both forward foreign exchange contracts and interest rate swaps) included in AOCI net of tax are as follows (in thousands):

	Three months ended November 30, 2012
Accumulated comprehensive loss, August 31, 2012	$	(7,153	)
Change in fair value of derivative instruments		2,747
Reclassification of net losses realized and included in net income related to derivative instruments		(1,041	)
Accumulated comprehensive loss, November 30, 2012	$	(5,447	)

	Three months ended November 30, 2011
Accumulated comprehensive loss, August 31, 2011	$	(11,172	)
Change in fair value of derivative instruments		(3,144	)
Reclassification of net losses realized and included in net income related to derivative instruments		3,145
Accumulated comprehensive loss, November 30, 2011	$	(11,171	)

Forward foreign exchange contracts

Impact of Derivatives for Foreign Currency Risk (Interest Rate Risk) and Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) and Earnings

The following tables present the impact that changes in fair value of derivatives utilized for foreign currency risk management purposes and designated as hedging instruments had on AOCI and earnings during the three months ended November 30, 2012 and 2011 (in thousands):

Derivatives in Cash Flow Hedging Relationship during the Three Months Ended November 30, 2012	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)			Location of Gain (Loss) Reclassified from AOCI into Income (Effective  Portion)	Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Forward foreign exchange contracts	$	(929	)	Revenue	$	(1,620	)	Revenue	$	65
Forward foreign exchange contracts	$	3,489		Cost of revenue	$	3,371		Cost of revenue	$	1,516
Forward foreign exchange contracts	$	187		Selling, general and administrative	$	278		Selling, general and administrative	$	67

Derivatives in Cash Flow Hedging Relationship during the Three Months Ended November 30, 2011	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)			Location of Gain (Loss) Reclassified from AOCI into Income (Effective  Portion)	Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)			Location of Gain (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)	Amount of Gain (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Forward foreign exchange contracts	$	1,769		Revenue	$	1,165		Revenue	$	(53	)
Forward foreign exchange contracts	$	(2,598	)	Cost of revenue	$	(1,175	)	Cost of revenue	$	(1,395	)
Forward foreign exchange contracts	$	(2,315	)	Selling, general and administrative	$	(2,147	)	Selling, general and administrative	$	83

Interest rate swap

Impact of Derivatives for Foreign Currency Risk (Interest Rate Risk) and Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) and Earnings

The following tables present the impact that changes in the fair value of the derivative utilized for interest rate risk management and designated as a hedging instrument had on AOCI and earnings during the three months ended November 30, 2012 and 2011 (in thousands):

Derivatives in Cash Flow Hedging Relationship during the Three Months Ended November 30, 2012	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)		Location of Gain  (Loss) Reclassified from Accumulated  OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain  or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain or (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Interest rate swap	$	—	Interest expense	$	(988	)		Interest expense	$	—

Derivatives in Cash Flow Hedging Relationship during the Three Months Ended November 30, 2011	Amount of Gain (Loss) Recognized in OCI on Derivative (Effective Portion)		Location of Gain  (Loss) Reclassified from Accumulated  OCI into Income (Effective Portion)	Amount of Gain or (Loss) Reclassified from Accumulated OCI into Income (Effective Portion)			Location of Gain  or (Loss) Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)		Amount of Gain or (Loss) Recognized in Income on  Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing)
Interest rate swap	$	—	Interest expense	$	(988	)		Interest expense	$	—