Fair Value Measurements Level 1 (Notes) | 3 Months Ended |
31-May-13 |
Fair Value Measurements [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements and Derivatives |
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The Company applies the authoritative guidance on “Fair Value Measurements," which among other things, requires enhanced disclosures about investments that are measured and reported at fair value. This guidance establishes a hierarchal disclosure framework that prioritizes and ranks the level of market price observability used in measuring investments at fair value. Market price observability is impacted by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices, or for which fair value can be measured from actively quoted prices, generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value. |
Investments measured and reported at fair value are classified and disclosed in one of the following categories: |
Level 1 - Quoted market prices in active markets for identical assets or liabilities. |
Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable. |
Level 3 - Unobservable inputs developed using the Company's estimates and assumptions, which reflect those that market participants would use. |
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The following table presents assets measured at fair value on a recurring basis at August 31, 2013: |
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| | | Fair Value Measurements at Reporting Date Using | | | | | | | | | | | | |
| Total | | Level 1 | | Level 2 | | | | | | | | | | | | |
Derivatives | | | | | | | | | | | | | | | | | | | | |
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Designated for hedging | $ | 203 | | | $ | — | | | $ | 203 | | | | | | | | | | | | | |
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Not designated | — | | | — | | | — | | | | | | | | | | | | | |
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Total derivatives | $ | 203 | | | $ | — | | | $ | 203 | | | | | | | | | | | | | |
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Long-term investment securities: | | | | | | | | | | | | | | | | | | | | |
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Trading securities | $ | 3,809 | | | $ | 3,809 | | | $ | — | | | | | | | | | | | | | |
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Available-for-sale securities | 3 | | | 3 | | | — | | | | | | | | | | | | | |
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Other investments at amortized cost (a) | 9,905 | | | — | | | — | | | | | | | | | | | | | |
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Total long-term investment securities | $ | 13,717 | | | $ | 3,812 | | | $ | — | | | | | | | | | | | | | |
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The following table presents assets measured at fair value on a recurring basis at February 28, 2013: |
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| | | Fair Value Measurements at Reporting Date Using | | | | | | | | | | | | |
| Total | | Level 1 | | Level 2 | | | | | | | | | | | | |
Derivatives | | | | | | | | | | | | | | | | | | | | |
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Designated for hedging | $ | (10 | ) | | $ | — | | | $ | (10 | ) | | | | | | | | | | | | |
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Not designated | (21 | ) | | — | | | (21 | ) | | | | | | | | | | | | |
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Total derivatives | $ | (31 | ) | | $ | — | | | $ | (31 | ) | | | | | | | | | | | | |
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Long-term investment securities: | | | | | | | | | | | | | | | | | | | | |
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Trading securities | $ | 3,657 | | | $ | 3,657 | | | $ | — | | | | | | | | | | | | | |
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Available-for-sale securities | 3 | | | 3 | | | — | | | | | | | | | | | | | |
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Other investments at amortized cost (a) | 9,910 | | | — | | | — | | | | | | | | | | | | | |
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Total long-term investment securities | $ | 13,570 | | | $ | 3,660 | | | $ | — | | | | | | | | | | | | | |
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(a) | There were no events or changes in circumstances that occurred to indicate a significant adverse effect on the cost of these investments. | | | | | | | | | | | | | | | | | | | | | | |
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The carrying amount of the Company's accounts receivable, short-term debt, accounts payable, accrued expenses, bank obligations and long-term debt approximates fair value because of (i) the short-term nature of the financial instrument; (ii) the interest rate on the financial instrument being reset every quarter to reflect current market rates, and (iii) the stated or implicit interest rate approximates the current market rates or are not materially different than market rates. |
Derivative Instruments |
The Company's derivative instruments include forward foreign currency contracts utilized to hedge a portion of its foreign currency inventory purchases as well as its general economic exposure to foreign currency fluctuations created in the normal course of business. During April 2013, the Company entered into two interest rate swap agreements to hedge interest rate exposure related to the forecasted outstanding borrowings on a portion of its amended credit facility ("Amended Facility") maturing on February 28, 2017. In June 2013, the Company entered into a third interest rate swap agreement to hedge interest rate exposure related to the forecasted outstanding balance of one of its mortgage notes, with monthly payments due through May 2023. The two swap agreements related to the Amended Facility lock the Company's LIBOR rates at 0.515% and 0.518% (exclusive of credit spread) for the respective agreements through the swaps' maturities. The swap agreement related to the Company's mortgage locks the interest rate on the debt at 3.92% (inclusive of credit spread) through the end of the mortgage. The forward foreign currency derivatives qualifying for hedge accounting are designated as cash flow hedges and valued using observable forward rates for the same or similar instruments (Level 2). Forward foreign currency contracts not designated under hedged transactions were valued at spot rates for the same or similar instruments (Level 2). The duration of open forward foreign currency contracts range from 1 - 6 months and are classified in the balance sheet according to their terms. Interest rate swap agreements qualifying for hedge accounting are designated as cash flow hedges and valued based on a comparison of the change in fair value of the actual swap contracts designated as the hedging instruments and the change in fair value of a hypothetical swap contract (Level 2). We calculate the fair value of interest rate swap agreements quarterly based on the quoted market price for the same or similar financial instruments. Interest rate swaps are classified in the balance sheet as either non-current assets or non-current liabilities based on the fair value of the instruments at the end of the period. |
It is the Company's policy to enter into derivative instrument contracts with terms that coincide with the underlying exposure being hedged. As such, the Company's derivative instruments are expected to be highly effective. Hedge ineffectiveness, if any, is recognized as incurred through other income (expense) in the Company's Consolidated Statements of Operations and Comprehensive Income (Loss) and amounted to $(33) and $(30) for the three and six months ended August 31, 2013, respectively, and $(27) and $152 for the three and six months ended August 31, 2012, respectively. |
Financial Statement Classification |
The Company holds derivative instruments that are designated as hedging instruments and has held certain instruments not so designated. The following table discloses the fair value as of August 31, 2013 and February 28, 2013 for both types of derivative instruments: |
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| | Derivative Assets and Liabilities | | | | | | | | | | | | | |
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| | Account | | August 31, 2013 | | February 28, 2013 | | | | | | | | | | | | | |
Designated derivative instruments | | | | | | | | | | | | | | | | | | | |
Foreign currency contracts | | Accrued expenses and other current liabilities | | $ | (161 | ) | | $ | (87 | ) | | | | | | | | | | | | | |
| | Prepaid expenses and other current assets | | — | | | 77 | | | | | | | | | | | | | | |
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Interest rate swap agreements | | Other assets | | 364 | | | — | | | | | | | | | | | | | | |
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Derivatives not designated | | | | | | | | | | | | | | | | | | | |
Foreign currency contracts | | Accrued expenses and other current liabilities | | — | | | (21 | ) | | | | | | | | | | | | | |
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Total derivatives | | | | $ | 203 | | | $ | (31 | ) | | | | | | | | | | | | | |
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In connection with the acquisition of Hirschmann on March 14, 2012, the Company acquired foreign currency contracts which were unable to qualify for hedge accounting for the quarter ended August 31, 2012. None of these contracts are still outstanding at August 31, 2013. One and four of these contracts settled during the three and six months ended August 31, 2013, respectively, for a gain of $2 and $32 for the three and six months ended August 31, 2013, respectively. |
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Cash flow hedges |
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During Fiscal 2013, the Company entered into forward foreign currency contracts, which have a current outstanding notional value of $17,100 and are designated as cash flow hedges. No forward foreign currency contracts were entered into during the first or second quarter of Fiscal 2014. The current outstanding notional value of the Company's three interest rate swaps at August 31, 2013 are $52,500, $25,000 and $7,670. For cash flow hedges, the effective portion of the gain or loss is reported as a component of other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. |
Activity related to cash flow hedges recorded during the three and six months ended August 31, 2013 and 2012 was as follows: |
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| For the three months ended | | For the six months ended |
| August 31, 2013 | | August 31, 2013 |
| Pretax Gain (Loss) Recognized in Other Comprehensive Income | | Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (a) | | Gain (Loss) for Ineffectiveness in Other Income | | Pretax Gain (Loss) Recognized in Other Comprehensive Income | | Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | | Gain (Loss) for Ineffectiveness in Other Income |
Cash flow hedges | | | | | | | | | | | |
Foreign currency contracts | $ | (410 | ) | | $ | 84 | | | $ | (33 | ) | | $ | (15 | ) | | $ | 62 | | | $ | (30 | ) |
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Interest rate swaps | $ | 349 | | | $ | — | | | $ | — | | | $ | 364 | | | $ | — | | | $ | — | |
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| For the three months ended | | For the six months ended |
| August 31, 2012 | | August 31, 2012 |
| Pretax Gain (Loss) Recognized in Other Comprehensive Income | | Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (a) | | Gain (Loss) for Ineffectiveness in Other Income | | Pretax Gain (Loss) Recognized in Other Comprehensive Income | | Pretax Gain (Loss) Reclassified from Accumulated Other Comprehensive Income | | Gain (Loss) for Ineffectiveness in Other Income |
Cash flow hedges | | | | | | | | | | | |
Foreign currency contracts | $ | (46 | ) | | $ | 157 | | | $ | (27 | ) | | $ | 429 | | | $ | 328 | | | $ | 152 | |
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Interest rate swaps | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
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(a) Gains and losses related to foreign currency contracts are reclassified to cost of sales. Gains and losses related to interest rate swaps are reclassified to interest expense. |
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The net loss recognized in other comprehensive income for foreign currency contracts is expected to be recognized in cost of sales within the next nine months. No amounts were excluded from the assessment of hedge effectiveness during the respective periods. As of August 31, 2013, no contracts originally designated for hedge accounting were de-designated or terminat |