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DERIVATIVES AND RISK MANAGEMENT (Tables)
 6 Months Ended
Feb. 28, 2017
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 28, 2017:
Commodity
 
Long/Short
 
Total
Aluminum
 
Long
 
2,630

 MT
Aluminum
 
Short
 
325

 MT
Copper
 
Long
 
419

 MT
Copper
 
Short
 
4,808

 MT
Zinc
 
Long
 
15

 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 unaudited condensed consolidated statements of earnings: 
 
 
 
 
Three Months Ended
 
Six Months Ended
Derivatives Not Designated as Hedging Instruments (in thousands)
 
Location
 
February 28, 2017
 
February 29, 2016
 
February 28, 2017
 
February 29, 2016
Commodity
 
Cost of goods sold
 
$
(146
)
 
$
(224
)
 
$
(4,775
)
 
$
1,948

Foreign exchange
 
Net sales
 
—

 
(4
)
 
—

 
(4
)
Foreign exchange
 
Cost of goods sold
 
(25
)
 
31

 
(33
)
 
81

Foreign exchange
 
SG&A expenses
 
(678
)
 
10,495

 
3,371

 
15,714

Gain (loss) before income taxes
 
 
 
$
(849
)
 
$
10,298

 
$
(1,437
)
 
$
17,739
Derivatives designated as fair value hedging instruments
Hedged items relate to firm commitments on commercial sales and purchases and capital expenditures.
Derivatives Designated as Fair Value Hedging Instruments (in thousands)
 
 
 
Three Months Ended
 
Six Months Ended
 
Location
 
February 28, 2017
 
February 29, 2016
 
February 28, 2017
 
February 29, 2016
Foreign exchange
 
Net sales
 
$
66

 
$
(61
)
 
$
44

 
$
83

Foreign exchange
 
Cost of goods sold
 
(1,693
)
 
183

 
(607
)
 
(811
)
Gain (loss) before income taxes
 
 
 
$
(1,627
)
 
$
122

 
$
(563
)
 
$
(728
)
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 28, 2017
 
February 29, 2016
 
February 28, 2017
 
February 29, 2016
Foreign exchange
 
Net sales
 
$
(66
)
 
$
62

 
$
(44
)
 
$
(83
)
Foreign exchange
 
Cost of goods sold
 
1,693

 
(183
)
 
607

 
811

Gain (loss) before income taxes
 
 
 
$
1,627

 
$
(121
)
 
$
563

 
$
728
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 28, 2017
 
February 29, 2016
 
February 28, 2017
 
February 29, 2016
Commodity
 
$
118

 
$
253

 
$
217

 
$
(224
)
Foreign exchange
 
192

 
241

 
225

 
709

Gain, net of income taxes
 
$
310

 
$
494

 
$
442

 
$
485
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 28, 2017
 
February 29, 2016
 
February 28, 2017
 
February 29, 2016
Commodity
 
Cost of goods sold
 
$
(33
)
 
$
(59
)
 
$
(125
)
 
$
(110
)
Foreign exchange
 
Net sales
 
329

 
(450
)
 
244

 
(393
)
Foreign exchange
 
Cost of goods sold
 
(172
)
 
426

 
(44
)
 
418

Foreign exchange
 
SG&A expenses
 
138

 
35

 
290

 
70

Interest rate
 
Interest expense
 
132

 
132

 
266

 
266

Gain before income taxes
 
 
 
394

 
84

 
631

 
251

Income taxes
 
Income taxes
 
(64
)
 
(28
)
 
(111
)
 
(77
)
Gain, net of income taxes
 
 
 
$
330

 
$
56

 
$
520

 
$
174
Derivative assets
The fair value of the Company's derivative instruments on the unaudited condensed consolidated balance sheets was as follows: 
Derivative Assets (in thousands)
 
February 28, 2017
 
August 31, 2016
Commodity — designated for hedge accounting
 
$
170

 
$
4

Commodity — not designated for hedge accounting
 
277

 
584

Foreign exchange — designated for hedge accounting
 
631

 
1,398

Foreign exchange — not designated for hedge accounting
 
1,169

 
750

Derivative assets (other current assets)*
 
$
2,247

 
$
2,736
Derivative liabilities
Derivative Liabilities (in thousands)
 
February 28, 2017
 
August 31, 2016
Commodity — designated for hedge accounting
 
$
—

 
$
5

Commodity — not designated for hedge accounting
 
595

 
117

Foreign exchange — designated for hedge accounting
 
718

 
902

Foreign exchange — not designated for hedge accounting
 
777

 
1,161

Derivative liabilities (accrued expenses and other payables)*
 
$
2,090

 
$
2,185

 _________________ 
* Derivative assets and liabilities do not include the hedged items designated as fair value hedges.