XML 28 R15.htm IDEA: XBRL DOCUMENT v3.25.3
Financial Instruments
 3 Months Ended
Nov. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Financial Instruments Financial Instruments
Derivatives
In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts.
Cash Flow Hedges
For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three months ended November 30, 2025 and 2024, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.
Other Derivatives
Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $24,730 and $4,256 for the three months ended November 30, 2025 and 2024, respectively, Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.
Fair Value of Derivative Instruments
The notional and fair values of all derivative instruments are as follows:
November 30, 2025August 31, 2025
Assets
Cash Flow Hedges
Other current assets$1,471 $13,208 
Other non-current assets983 5,506 
Other Derivatives
Other current assets4,819 18,133 
Total assets$7,273 $36,847 
Liabilities
Cash Flow Hedges
Other accrued liabilities$142,323 $128,285 
Other non-current liabilities119,692 126,793 
Other Derivatives
Other accrued liabilities35,549 26,311 
Total liabilities$297,564 $281,389 
Total fair value$(290,291)$(244,542)
Total notional value$15,539,769 $17,201,447 
We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, we record derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:
November 30, 2025August 31, 2025
Net derivative assets$1,832 $767 
Net derivative liabilities292,123 245,309 
Total fair value$(290,291)$(244,542)