Derivative Financial Instruments and Hedging Activities (Tables)

9 Months Ended

May 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Net Gains from Forward Contracts Recorded in Consolidated Statements of Operations

The following table presents the losses and 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 (Loss) Gain on Derivatives Recognized in Net Income	Amount of (Loss) Gain Recognized in Net Income on Derivatives
		Three months ended						Nine months ended
		May 31, 2020			May 31, 2019			May 31, 2020			May 31, 2019
Forward foreign exchange contracts⁽¹⁾	Cost of revenue	$	(36,955	)	$	(33,476	)	$	(3,436	)	$	9,332

⁽¹⁾

For the three months and nine months ended May 31, 2020, the Company recognized $36.9 million and $0.4 million, respectively, of foreign currency gains in cost of revenue, which are offset by the losses from the forward foreign exchange contracts. During the three months ended May 31, 2019, the Company recognized $28.3 million of foreign currency gains in cost of revenue, which are offset by the losses from the forward foreign exchange contracts. During the nine months ended May 31, 2019, the Company recognized $24.3 million of foreign currency losses in cost of revenue, which are offset by the gains from the forward foreign exchange contracts.

Schedule of Notional Amounts of Outstanding Derivative Positions

The following table presents the interest rate swaps outstanding as of May 31, 2020, which have been designated as hedging instruments and accounted for as cash flow hedges:



Interest Rate Swap Summary	Hedged Interest Rate Payments	Aggregate Notional Amount (in millions)		Effective Date	Expiration Date ⁽¹⁾
Forward Interest Rate Swap
Anticipated Debt Issuance	Fixed	$	200.0	Oct 22, 2018	Dec 15, 2020	⁽²⁾
Interest Rate Swaps
Debt obligations	Variable	$	550.0	Aug 24, 2018 and Oct 11, 2018	Aug 24, 2020 and Aug 31, 2020	⁽³⁾


⁽¹⁾	The contracts will be settled with the respective counterparties on a net basis at the expiration date for the forward interest rate swap and at each settlement date for the interest rate swaps.


⁽²⁾	If the anticipated debt issuance occurs before December 15, 2020, the contracts will be terminated simultaneously with the debt issuance.

⁽³⁾

The Company pays interest based upon a fixed rate as agreed upon with the respective counterparties and receives variable rate interest payments based on the one-month and three-month LIBOR for borrowings under the Credit Facility and certain other debt obligations. Of the amount hedged, $350.0 million expires on August 24, 2020 and $200.0 million expires on August 31, 2020.