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DERIVATIVES | 9 Months Ended
--- | ---
May 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives | NOTE 8. DERIVATIVES At May 31, 2024 and August 31, 2023, the notional values of the Company's commodity contract commitments were $510.4 million and $456.4 million, respectively. At May 31, 2024 and August 31, 2023, the notional values of the Company's foreign currency contract commitments were $195.2 million and $221.4 million, respectively. The following table provides information regarding the Company's commodity contract commitments at May 31, 2024:
Commodity |  | Position |  | Total
Aluminum |  | Long |  | 3,350 |  | MT
Aluminum |  | Short |  | 1,525 |  | MT
Copper |  | Long |  | 771 |  | MT
Copper |  | Short |  | 11,385 |  | MT
Electricity |  | Long |  | 3,153,000 |  | MW(h)
Natural Gas |  | Long |  | 5,210,650 |  | MMBtu
__________________________________ 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 |  | May 31, 2024 |  | August 31, 2023
Derivative assets: |  |  |  |  |  |
Commodity |  | Prepaid and other current assets |  | $ | 10,054 |  |  | $ | 11,427 |
Commodity |  | Other noncurrent assets |  | 41,044 |  |  | 184,261 |
Foreign exchange |  | Prepaid and other current assets |  | 1,720 |  |  | 1,898 |
Derivative liabilities: |  |  |  |  |  |
Commodity |  | Accrued expenses and other payables |  | $ | 10,160 |  |  | $ | 2,983 |
Commodity |  | Other noncurrent liabilities |  | 528 |  |  | 1,085 |
Foreign exchange |  | Accrued expenses and other payables |  | 794 |  |  | 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 May 31, 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.
Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands) |  |  |  | Three Months Ended May 31, |  | Nine Months Ended May 31,
| Primary Location |  | 2024 |  | 2023 |  | 2024 |  | 2023
Commodity |  | Cost of goods sold |  | $ | (19,667) |  |  | $ | 7,540 |  |  | $ | (18,957) |  |  | $ | (1,540) |
Foreign exchange |  | SG&A expenses |  | 2,141 |  |  | 3,686 |  |  | 6,123 |  |  | 10,095 |
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.
Effective Portion of Derivatives Designated as Cash Flow Hedging Instruments Gain (Loss) Recognized in OCI, Net of Income Taxes (in thousands) |  | Three Months Ended May 31, |  | Nine Months Ended May 31,
| 2024 |  | 2023 |  | 2024 |  | 2023
Commodity |  | $ | (29,567) |  |  | $ | (11,855) |  |  | $ | (120,451) |  |  | $ | 80,134 |
Foreign exchange |  | 8 |  |  | 7 |  |  | 23 |  |  | 20 |
Gain (Loss) on Derivatives Designated as Cash Flow Hedging Instruments Reclassified from AOCI into Net Earnings (in thousands) |  |  |  | Three Months Ended May 31, |  | Nine Months Ended May 31,
| Primary Location |  | 2024 |  | 2023 |  | 2024 |  | 2023
Commodity |  | Cost of goods sold |  | $ | (797) |  |  | $ | 256 |  |  | $ | 1,104 |  |  | $ | 9,872 |
Foreign exchange |  | SG&A expenses |  | 63 |  |  | 63 |  |  | 185 |  |  | 183 |
The Company's natural gas commodity derivatives accounted for as cash flow hedging instruments have maturities extending to May 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 May 31, 2024 was an estimated net gain of $6.3 million from cash flow hedging instruments that is expected to be reclassified into net earnings within the twelve months following May 31, 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.

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