DERIVATIVES

3 Months Ended

Nov. 30, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

NOTE 8. DERIVATIVES

At November 30, 2023 and August 31, 2023, the notional values of the Company's commodity contract commitments were $481.0 million and $456.4 million, respectively. At November 30, 2023 and August 31, 2023, the notional values of the Company's foreign currency contract commitments were $284.9 million and $221.4 million, respectively.

The following table provides information regarding the Company's commodity contract commitments at November 30, 2023:

Commodity	Position	Total
Aluminum	Long	2,525	MT
Aluminum	Short	1,150	MT
Copper	Long	612	MT
Copper	Short	10,433	MT
Electricity	Long	3,257,000	MW(h)
Natural Gas	Long	5,150,550	MMBtu

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MT = Metric ton

MW(h) = Megawatt hour

MMBtu = Metric Million British thermal unit

The following table summarizes the location and amounts of the fair value of the Company's derivative instruments reported in the condensed consolidated balance sheets:

(in thousands)	Primary Location	November 30, 2023		August 31, 2023
Derivative assets:
Commodity	Prepaid and other current assets	$	9,025	$	11,427
Commodity	Other noncurrent assets	135,939		184,261
Foreign exchange	Prepaid and other current assets	9,916		1,898
Derivative liabilities:
Commodity	Accrued expenses and other payables	$	6,066	$	2,983
Commodity	Other noncurrent liabilities	1,003		1,085
Foreign exchange	Accrued expenses and other payables	5,868		2,566

The following table summarizes activities related to the Company's derivatives not designated as cash flow hedging instruments recognized in the condensed consolidated statements of earnings. All other activity related to the Company's derivatives not designated as cash flow hedging instruments was immaterial for the periods presented.

		Three Months Ended November 30,
Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands)	Primary Location	2023		2022
Commodity	Cost of goods sold	$	(72)	$	(3,085)
Foreign exchange	SG&A expenses	3,539		3,462

The following table summarizes activities related to the Company's derivatives designated as cash flow hedging instruments recognized in the condensed consolidated statements of comprehensive income and condensed consolidated statements of earnings, respectively. Amounts presented do not include the effects of foreign currency translation adjustments.

	Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Other Comprehensive Income (Loss), Net of Income Taxes (in thousands)					Amount of Gain Reclassified from AOCI into Earnings on Derivatives (in thousands)
	Three Months Ended November 30,					Three Months Ended November 30,
	2023		2022		Primary Location	2023		2022
Commodity	$	(42,952)	$	68,039	Cost of goods sold	$	1,765	$	8,605
Foreign exchange	7		6		SG&A expenses	61		61

The Company's natural gas commodity derivatives accounted for as cash flow hedging instruments have maturities extending to November 2026. The Company's electricity commodity derivatives accounted for as cash flow hedging instruments have maturities extending to December 2034. Included in the AOCI balance as of November 30, 2023 was an estimated net gain of $5.4 million from cash flow hedging instruments that is expected to be reclassified into net earnings within the twelve months following November 30, 2023. Cash flows associated with the cash flow hedging instruments are recorded as a component of cash flows from operating activities in the condensed consolidated statements of cash flows. See Note 9, Fair Value, for the fair value of the Company's derivative instruments recorded in the condensed consolidated balance sheets.