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DERIVATIVES AND RISK MANAGEMENT (Tables) | 6 Months Ended
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Feb. 29, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Commodity contract commitments | The following table provides information regarding the Company's commodity contract commitments as of February 29, 2016:
Commodity |  | Long/Short |  | Total
Aluminum |  | Long |  | 5,141 |  | MT
Aluminum |  | Short |  | 250 |  | MT
Copper |  | Long |  | 294 |  | MT
Copper |  | Short |  | 4,423 |  | MT
Zinc |  | Long |  | 7 |  | MT
MT = Metric Ton
Derivatives not designated as hedging instruments | The following tables summarize activities related to the Company's derivative instruments and hedged items recognized in the condensed consolidated statements of earnings:
|  |  |  | Three Months Ended |  | Six Months Ended
Derivatives Not Designated as Hedging Instruments (in thousands) |  | Location |  | February 29, 2016 |  | February 28, 2015 |  | February 29, 2016 |  | February 28, 2015
Commodity |  | Cost of goods sold |  | $ | (224 | ) |  | $ | 1,866 |  |  | $ | 1,948 |  |  | $ | 5,301 |
Foreign exchange |  | Net sales |  | (4 | ) |  | 569 |  |  | (4 | ) |  | 3,005 |
Foreign exchange |  | Cost of goods sold |  | 31 |  |  | 2,480 |  |  | 81 |  |  | 4,351 |
Foreign exchange |  | SG&A expenses |  | 10,495 |  |  | 7,874 |  |  | 15,714 |  |  | 20,074 |
Gain before income taxes |  |  |  | $ | 10,298 |  |  | $ | 12,789 |  |  | $ | 17,739 |  |  | $ | 32,731 |
Derivatives designated as fair value hedging instruments | Hedged items relate to firm commitments on commercial sales and purchases.
Derivatives Designated as Fair Value Hedging Instruments (in thousands) |  |  |  | Three Months Ended |  | Six Months Ended
| Location |  | February 29, 2016 |  | February 28, 2015 |  | February 29, 2016 |  | February 28, 2015
Foreign exchange |  | Net sales |  | $ | (61 | ) |  | $ | 534 |  |  | $ | 83 |  |  | $ | 359 |
Foreign exchange |  | Cost of goods sold |  | 183 |  |  | (229 | ) |  | (811 | ) |  | 925 |
Gain (loss) before income taxes |  |  |  | $ | 122 |  |  | $ | 305 |  |  | $ | (728 | ) |  | $ | 1,284 |
Hedged items designated as fair value hedging instruments |
Hedged Items Designated as Fair Value Hedging Instruments (in thousands) |  |  |  | Three Months Ended |  | Six Months Ended
| Location |  | February 29, 2016 |  | February 28, 2015 |  | February 29, 2016 |  | February 28, 2015
Foreign exchange |  | Net sales |  | $ | 62 |  |  | $ | (537 | ) |  | $ | (83 | ) |  | $ | (358 | )
Foreign exchange |  | Cost of goods sold |  | (183 | ) |  | 229 |  |  | 811 |  |  | (925 | )
Gain (loss) before income taxes |  |  |  | $ | (121 | ) |  | $ | (308 | ) |  | $ | 728 |  |  | $ | (1,283 | )
Effective portion of derivatives designated as cash flow hedging instruments recognized In accumulated other comprehensive income (loss) |
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Income (Loss) (in thousands) |  | Three Months Ended |  | Six Months Ended
| February 29, 2016 |  | February 28, 2015 |  | February 29, 2016 |  | February 28, 2015
Commodity |  | $ | 253 |  |  | $ | (348 | ) |  | $ | (224 | ) |  | $ | (416 | )
Foreign exchange |  | 241 |  |  | (1,552 | ) |  | 709 |  |  | (2,009 | )
Gain (loss), net of income taxes |  | $ | 494 |  |  | $ | (1,900 | ) |  | $ | 485 |  |  | $ | (2,425 | )
Effective portion of derivatives designated as cash flow hedging instruments reclassified from accumulated other comprehensive income (loss) |
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Reclassified from Accumulated Other Comprehensive Income (Loss) (in thousands) |  |  |  | Three Months Ended |  | Six Months Ended
| Location |  | February 29, 2016 |  | February 28, 2015 |  | February 29, 2016 |  | February 28, 2015
Commodity |  | Cost of goods sold |  | $ | (59 | ) |  | $ | (140 | ) |  | $ | (110 | ) |  | $ | (160 | )
Foreign exchange |  | Net sales |  | (450 | ) |  | 74 |  |  | (393 | ) |  | 74 |
Foreign exchange |  | Cost of goods sold |  | 426 |  |  | (1,203 | ) |  | 418 |  |  | (1,403 | )
Foreign exchange |  | SG&A expenses |  | 35 |  |  | 19 |  |  | 70 |  |  | 40 |
Interest rate |  | Interest expense |  | 132 |  |  | 132 |  |  | 266 |  |  | 266 |
Gain (loss) before income taxes |  |  |  | 84 |  |  | (1,118 | ) |  | 251 |  |  | (1,183 | )
Income tax (expense) benefit |  |  |  | (28 | ) |  | 391 |  |  | (77 | ) |  | 417 |
Gain (loss), net of income taxes |  |  |  | $ | 56 |  |  | $ | (727 | ) |  | $ | 174 |  |  | $ | (766 | )
Derivative assets | The fair value of the Company's derivative instruments on the condensed consolidated balance sheets was as follows:
Derivative Assets (in thousands) |  | February 29, 2016 |  | August 31, 2015
Commodity — designated for hedge accounting |  | $ | 24 |  |  | $ | 19 |
Commodity — not designated for hedge accounting |  | 96 |  |  | 846 |
Foreign exchange — designated for hedge accounting |  | 1,273 |  |  | 1,500 |
Foreign exchange — not designated for hedge accounting |  | 2,992 |  |  | 3,088 |
Derivative assets (other current assets)* |  | $ | 4,385 |  |  | $ | 5,453 |
Derivative liabilities |
Derivative Liabilities (in thousands) |  | February 29, 2016 |  | August 31, 2015
Commodity — designated for hedge accounting |  | $ | 122 |  |  | $ | 129 |
Commodity — not designated for hedge accounting |  | 688 |  |  | 537 |
Foreign exchange — designated for hedge accounting |  | 719 |  |  | 874 |
Foreign exchange — not designated for hedge accounting |  | 645 |  |  | 1,263 |
Derivative liabilities (accrued expenses and other payables)* |  | $ | 2,174 |  |  | $ | 2,803 |
_______________________________________ * Derivative assets and liabilities do not include the hedged items designated as fair value hedges.

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