Derivative Financial Instruments

6 Months Ended

Feb. 29, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Company previously entered into a series of foreign currency exchange forward contracts to sell U.S. dollars in order to hedge a portion of its exposure to fluctuating rates of exchange on anticipated U.S. dollar-denominated sales by its Canadian subsidiary with a functional currency of the Canadian dollar. The Company utilized intercompany foreign currency derivatives and offsetting derivatives with external counterparties in order to designate the intercompany derivatives as hedging instruments. Once the U.S. dollar-denominated sales have been recognized and the corresponding receivables collected, the Company utilized foreign currency exchange forward contracts to sell Canadian dollars, achieving a result similar to net settling the contracts to sell U.S. dollars. The foreign currency exchange forward contracts to sell Canadian dollars are not designated as hedging instruments.

The Company did not have any foreign currency exchange forward contracts as of February 29, 2016, and the results of contracts that expired during fiscal 2016 were immaterial. Accordingly, the results of foreign currency exchange forward contracts for fiscal 2016 are excluded from the tabular disclosures below.

The fair value of derivative instruments in the Unaudited Condensed Consolidated Balance Sheets is as follows (in thousands):

	Asset (Liability) Derivatives
	Balance Sheet Location	August 31, 2015
Foreign currency exchange forward contracts	Prepaid expenses and other current assets	$	—
Foreign currency exchange forward contracts	Other accrued liabilities	$	(751	)

The following table summarizes the results of foreign currency exchange derivatives (in thousands):

	Derivative Gain (Loss) Recognized
	Three Months Ended February 28, 2015
	Other Comprehensive Loss			Revenues - Effective Portion			Other Income (Expense), net
Foreign currency exchange forward contracts - designated as cash flow hedges	$	(3,424	)	$	(853	)	$	121
Foreign currency exchange forward contracts - not designated as cash flow hedges	$	—		$	—		$	(117	)

	Derivative Gain (Loss) Recognized
	Six Months Ended February 28, 2015
	Other Comprehensive Loss			Revenues - Effective Portion			Other Income (Expense), net
Foreign currency exchange forward contracts - designated as cash flow hedges	$	(5,136	)	$	(1,354	)	$	175
Foreign currency exchange forward contracts - not designated as cash flow hedges	$	—		$	—		$	(122	)

There was no hedge ineffectiveness with respect to the forward currency exchange cash flow hedges for the three and six months ended February 28, 2015.