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Derivative Financial Instruments and Hedging Activities (Tables)
 6 Months Ended
Feb. 28, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair value of derivative instruments located on consolidated balance sheets
The following table presents the fair values of the Company’s derivative instruments recorded in the Condensed Consolidated Balance Sheets utilized for foreign currency risk management purposes as of February 28, 2019 and August 31, 2018 (in thousands):
 
Fair Values of Derivative Instruments
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet
Location
 
Fair Value as of
February 28, 2019(1)
 
Fair Value as of
August 31, 2018(1)
 
Balance Sheet
Location
 
Fair Value as of
February 28, 2019(1)
 
Fair Value as of
August 31, 2018(1)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Forward foreign exchange contracts
Prepaid expenses
and other current
assets
 
$
6,560

 
$
225

 
Accrued
expenses
 
$
1,104

 
$
13,364

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
 
 
 
 
 
Forward foreign exchange contracts
Prepaid expenses
and other current
assets
 
$
24,422

 
$
10,125

 
Accrued
expenses
 
$
3,602

 
$
46,171


 
(1) Classified as Level 2 in the fair-value hierarchy.
Net gains from forward contracts recorded in consolidated statements of operations
The following table presents the net gains from forward contracts recorded in the Condensed Consolidated Statements of Operations for the periods indicated (in thousands):
Derivatives Not Designated as Hedging Instruments Under ASC 815
 
Location of Gain on Derivatives Recognized in Net Income
 
Amount of Gain Recognized in Net Income on Derivatives
 
 
 
 
Three months ended
 
Six months ended
 
 
 
 
February 28, 2019
 
February 28, 2018
 
February 28, 2019
 
February 28, 2018
Forward foreign exchange contracts(1)
 
Cost of revenue
 
$
49,794

 
$
48,933

 
$
42,808

 
$
45,744

 
(1) 
For the three months and six months ended February 28, 2019, the Company recognized $57.1 million and $52.6 million, respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts. During the three months and six months ended February 28, 2018, the Company recognized $41.7 million and $35.5 million, respectively, of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts.