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DERIVATIVES
 6 Months Ended
Feb. 29, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivatives
NOTE 8. DERIVATIVES

At February 29, 2024 and August 31, 2023, the notional values of the Company's commodity contract commitments were $478.9 million and $456.4 million, respectively. At February 29, 2024 and August 31, 2023, the notional values of the Company's foreign currency contract commitments were $233.6 million and $221.4 million, respectively.

The following table provides information regarding the Company's commodity contract commitments at February 29, 2024:
CommodityPosition   Total
AluminumLong2,750  MT
AluminumShort1,550  MT
CopperLong442  MT
CopperShort10,455  MT
ElectricityLong3,204,000 MW(h)
Natural GasLong4,830,600 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 LocationFebruary 29, 2024August 31, 2023
Derivative assets:
CommodityPrepaid and other current assets$7,410 $11,427 
CommodityOther noncurrent assets79,859 184,261 
Foreign exchangePrepaid and other current assets951 1,898 
Derivative liabilities:
CommodityAccrued expenses and other payables$5,124 $2,983 
CommodityOther noncurrent liabilities1,055 1,085 
Foreign exchangeAccrued expenses and other payables2,199 2,566 

The decrease in fair value of the Company's commodity derivatives reported within other noncurrent assets is primarily due to the decrease in the value of a significant input used to measure the fair value of the Company's Level 3 commodity derivatives at February 29, 2024 as compared to August 31, 2023. See Note 9, Fair Value, for further discussion of the measurement of the fair value of the Company's Level 3 commodity derivatives.

The following table summarizes activities related to the Company's derivatives not designated as hedging instruments recognized in the condensed consolidated statements of earnings. All other activity related to the Company's derivatives not designated as hedging instruments was immaterial for the periods presented.
Three Months EndedSix Months Ended
Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands)Primary LocationFebruary 29, 2024February 28, 2023February 29, 2024February 28, 2023
CommodityCost of goods sold$782 $(5,995)$710 $(9,080)
Foreign exchangeSG&A expenses443 2,947 3,982 6,409 

The following tables summarize 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. Amounts presented do not include the effects of foreign currency translation adjustments.
Three Months EndedSix Months Ended
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Recognized in OCI, Net of Income Taxes (in thousands)February 29, 2024February 28, 2023February 29, 2024February 28, 2023
Commodity$(47,932)$23,950 $(90,884)$91,989 
Foreign exchange8 7 15 13 


Three Months EndedSix Months Ended
Gain on Derivatives Designated as Cash Flow Hedging Instruments Reclassified from AOCI into Net Earnings (in thousands)Primary LocationFebruary 29, 2024February 28, 2023February 29, 2024February 28, 2023
CommodityCost of goods sold$136 $1,011 $1,901 $9,616 
Foreign exchangeSG&A expenses61 59 122 120 
The Company's natural gas commodity derivatives accounted for as cash flow hedging instruments have maturities extending to February 2027. 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 February 29, 2024 was an estimated net gain of $2.7 million from cash flow hedging instruments that is expected to be reclassified into net earnings within the twelve months following February 29, 2024. 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.