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Derivative Financial Instruments and Hedging Activities (Tables)
 12 Months Ended
Aug. 31, 2013
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 August 31, 2013, 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

    $ —        $ 11,504      $ —        $ 11,504   

Liabilities:

           

Forward foreign exchange contracts

      —          (9,509 )      —          (9,509 ) 
  

 

 

     

 

 

    

 

 

     

 

 

  

Total

    $ —        $ 1,995      $ —        $ 1,995   
  

 

 

     

 

 

    

 

 

     

 

 

  

 
Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes

The following tables present the fair value of the Company’s derivative instruments located on the Consolidated Balance Sheets utilized for foreign currency risk management purposes at August 31, 2013 and 2012 (in thousands):

 

    

Fair Values of Derivative Instruments

At August 31, 2013

  
    

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    $ 4,357       Other accrued expense    $ 4,550   

Derivatives not designated as hedging instruments:

            

Forward foreign exchange contracts

    Prepaid expenses and other current assets    $ 7,147       Other accrued expense    $ 4,959   
    

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 fiscal years 2013 and 2012 (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 for the Fiscal Year
ended August 31, 2013

Forward foreign exchange contracts

 Cost of revenue $ (4,620 )

Derivatives not designated as hedging instruments

 Location of Gain (Loss) Recognized in
Income on Derivative		 Amount of Gain (Loss) Recognized in
Income on Derivative for the Fiscal Year
ended August 31, 2012

Forward foreign exchange contracts

 Cost of revenue $ 5,912

 
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):

 

Accumulated comprehensive loss August 31, 2011

    $ (11,172 ) 

Changes in fair value of derivative instruments

      2,637   

Reclassification of net losses realized and included in net income related to derivative instruments

      1,382   
  

 

 

  

Accumulated comprehensive loss, August 31, 2012

    $ (7,153 ) 

Changes in fair value of derivative instruments

      (182 ) 

Reclassification of net losses realized and included in net income related to derivative instruments

      2,285   
  

 

 

  

Accumulated comprehensive loss, August 31, 2013

    $ (5,050 ) 
  

 

 

  

 
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 fiscal years 2013 and 2012 (in thousands):

 

Derivatives in Cash

Flow Hedging

Relationship for

the Fiscal Year

Ended August 31,

2013

    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

    $ (2,392 )    Revenue    $ (1,919 )    Revenue    $ 225   

Forward foreign exchange contracts

    $ 2,721      Cost of
revenue		    $ 3,717      Cost of
revenue		    $ 8,996   

Forward foreign exchange contracts

    $ (511 )    Selling,
general and
administrative		    $ (133 )    Selling,
general and
administrative		    $ 263   

Derivatives in Cash

Flow Hedging

Relationship for the

Fiscal Year Ended

August 31, 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

    $ 2,858      Revenue    $ 2,642      Revenue    $ —     

Forward foreign exchange contracts

    $ 1,644      Cost of
revenue		    $ 2,717      Cost of
revenue		    $ (1,345 ) 

Forward foreign exchange contracts

    $ (1,864 )    Selling,
general and
administrative		    $ (2,790 )    Selling,
general and
administrative		    $ 194   
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 fiscal years 2013 and 2012 (in thousands):

Derivatives in Cash Flow

Hedging Relationship for the

Fiscal Year Ended August 31,

2013

 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 $ (3,950 ) Interest expense $ —

Derivatives in Cash Flow

Hedging Relationship for the Fiscal
Year Ended August 31,

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 $ (3,950 ) Interest expense $ —