XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.22.2.2

DERIVATIVES | 12 Months Ended
--- | ---
Aug. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | NOTE 11. 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 net earnings 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) natural gas and electricity commodity derivatives to mitigate the risk related to price volatility of these commodities. The Company considers the total notional value of its futures and forward contracts as the best measure of the volume of derivative transactions. At August 31, 2022, the notional values of the Company's foreign currency and commodity contract commitments were $253.5 million and $205.1 million, respectively. At August 31, 2021, the notional values of the Company's foreign currency contract commitments and its commodity contract commitments were $389.5 million and $213.4 million, respectively. The following table provides information regarding the Company's commodity contract commitments as of August 31, 2022:
Commodity |  | Long/Short |  | Total
Aluminum |  | Long |  | 3,700 |  |  | MT
Aluminum |  | Short |  | 1,700 |  |  | MT
Copper |  | Long |  | 635 |  |  | MT
Copper |  | Short |  | 9,310 |  |  | MT
Electricity |  | Long |  | 1,676,000 |  |  | MW(h)
Natural Gas |  | Long |  | 4,850,300 |  |  | MMBtu
__________________________________ MT = Metric Ton MW(h) = Megawatt hour MMBtu = Metric Million British thermal unit 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 tables summarize activities related to the Company's derivative instruments and hedged items recognized in the consolidated statements of earnings. All other activity related to the Company's derivative instruments and hedged items was immaterial for the periods presented.
|  |  |  | Year Ended August 31,
Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands) |  | Primary Location |  | 2022 |  | 2021 |  | 2020
Commodity |  | Cost of goods sold |  | $ | 15,862 |  |  | $ | (18,035) |  |  | $ | (5,963) |
Foreign exchange |  | SG&A expenses |  | (6,547) |  |  | (3,674) |  |  | 220 |
|  | Year Ended August 31,
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in Accumulated Other Comprehensive Loss (in thousands) |  | 2022 |  | 2021 |  | 2020
Commodity |  | $ | 138,534 |  |  | $ | 35,392 |  |  | $ | (12,136) |
The Company's natural gas and electricity commodity derivatives accounted for as cash flow hedging instruments have maturities extending to August 2025 and December 2030, respectively. Included in the AOCI balance as of August 31, 2022 was an estimated net gain of $21.7 million from cash flow hedging instruments that is expected to be reclassified into earnings within the next twelve months. See Note 12, Fair Value, for the fair value of the Company's derivative instruments recorded in the consolidated balance sheets.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration