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DERIVATIVES | 3 Months Ended
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Nov. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | NOTE 9. DERIVATIVES The Company's global operations and product lines expose it to risks from fluctuations in metal commodity prices, foreign currency exchange rates, interest rates and natural gas, electricity and other energy prices. One objective of the Company's risk management program is to mitigate these risks using derivative instruments. The Company enters into (i) metal commodity futures and forward contracts to mitigate the risk of unanticipated changes in gross margin due to price volatility in these commodities, (ii) foreign currency forward contracts that match the expected settlements for purchases and sales denominated in foreign currencies and (iii) energy derivatives to mitigate the risk related to price volatility of electricity and natural gas. At November 30, 2019, the notional values of the Company's foreign currency and commodity commitments were $79.2 million and $53.1 million, respectively. At August 31, 2019, the notional values of the Company's foreign currency and commodity contract commitments were $94.1 million and $42.6 million, respectively. The following table provides information regarding the Company's commodity contract commitments at November 30, 2019:
Commodity |  | Long/Short |  | Total
Aluminum |  | Long |  | 1,975 |  | MT
Copper |  | Long |  | 987 |  | MT
Copper |  | Short |  | 7,178 |  | MT
Electricity |  | Long |  | 2,000,000 |  | MW(h)
_________________ MT = Metric Ton MW(h) = Megawatt hour The Company designates only those contracts which closely match the terms of the underlying transaction as hedges for accounting purposes. Certain foreign currency and commodity contracts were not designated as hedges for accounting purposes, although management believes they are essential economic hedges. The following table summarizes activity related to the Company's derivative instruments not designated as hedging instruments recognized in the condensed consolidated statements of earnings. All other activity related to the Company's derivative instruments and hedged items was immaterial for the periods presented.
|  |  |  | Three Months Ended November 30,
Derivatives Not Designated as Hedging Instruments (in thousands) |  | Location |  | 2019 |  | 2018
Commodity |  | Cost of goods sold |  | $ | (1,315 | ) |  | $ | (840 | )
Foreign exchange |  | SG&A expenses |  | 41 |  |  | 126 |
Loss before income taxes |  |  |  | $ | (1,274 | ) |  | $ | (714 | )

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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