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DERIVATIVES | 12 Months Ended
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Aug. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
DERIVATIVES | NOTE 10. DERIVATIVES The Company's global operations and product lines expose it to risks from fluctuations in metal 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) copper futures and forward contracts to mitigate the risk of unanticipated changes in net earnings due to price volatility, (ii) foreign currency forward contracts that align with 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 in those markets. The Company designates only those contracts that 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 these contracts are essential economic hedges. The Company considers the total notional value of its futures and forward contracts to be the best measure of the volume of derivative transactions. At August 31, 2025 and 2024, the notional values of the Company's commodity contract commitments were $453.4 million and $480.1 million, respectively. At August 31, 2025 and 2024, the notional values of the Company's foreign currency contract commitments were $279.3 million and $225.1 million, respectively. The following table provides information regarding the Company's commodity contract commitments as of August 31, 2025:
Commodity |  | Position |  | Total
Copper |  | Long |  | 261 |  |  | MT
Copper |  | Short |  | 6,169 |  |  | MT
Electricity |  | Long |  | 2,859,000 |  |  | MW(h)
Natural Gas |  | Long |  | 4,832,000 |  |  | MMBtu
__________________________________ MT = Metric ton MW(h) = Megawatt hour MMBtu = Million British thermal unit The following table summarizes the location and fair value amounts of the Company's derivative instruments as reported in the consolidated balance sheets:
(in thousands) |  | Primary Location |  | August 31, 2025 |  | August 31, 2024
Derivative assets: |  |  |  |  |  |
Commodity |  | Prepaid and other current assets |  | $ | 14,957 |  |  | $ | 9,823 |
Commodity |  | Other noncurrent assets |  | 43,944 |  |  | 30,402 |
Foreign exchange |  | Prepaid and other current assets |  | 4,809 |  |  | 419 |
Derivative liabilities: |  |  |  |  |  |
Commodity |  | Other accrued expenses and payables |  | $ | 282 |  |  | $ | 3,445 |
Commodity |  | Other noncurrent liabilities |  | — |  |  | 157 |
Foreign exchange |  | Other accrued expenses and payables |  | 809 |  |  | 1,885 |
Foreign exchange |  | Other noncurrent liabilities |  | 12 |  |  | — |
The following table summarizes the effects of derivatives not designated as hedging instruments on the consolidated statements of earnings. All other activity related to these derivatives was immaterial for the periods presented.
|  |  |  | Year Ended August 31,
Gain (Loss) on Derivatives Not Designated as Hedging Instruments (in thousands) |  | Primary Location |  | 2025 |  | 2024 |  | 2023
Commodity |  | Cost of goods sold |  | $ | 1,928 |  |  | $ | (10,195) |  |  | $ | (3,028) |
Foreign exchange |  | SG&A expenses |  | 11,865 |  |  | 6,974 |  |  | 12,265 |
The following table summarizes the effects of derivatives designated as cash flow hedging instruments on the consolidated statements of comprehensive income and consolidated statements of earnings. The amounts presented exclude 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) |  | Year Ended August 31,
| 2025 |  | 2024 |  | 2023
Commodity |  | $ | 16,926 |  |  | $ | (129,709) |  |  | $ | 6,367 |
Foreign exchange |  | 18 |  |  | 31 |  |  | 28 |
Gain on Derivatives Designated as Cash Flow Hedging Instruments Reclassified from AOCL into Net Earnings (in thousands) |  |  |  | Year Ended August 31,
| Primary Location |  | 2025 |  | 2024 |  | 2023
Commodity |  | Cost of goods sold |  | $ | 6,661 |  |  | $ | 2,031 |  |  | $ | 11,325 |
Foreign exchange |  | SG&A expenses |  | 143 |  |  | 250 |  |  | 244 |
The Company's natural gas and electricity derivatives accounted for as cash flow hedging instruments have maturities extending to August 2028 and December 2034, respectively. As of August 31, 2025, the AOCL balance included an estimated net gain of $10.1 million from cash flow hedging instruments which is expected to be reclassified into net earnings within the twelve months following August 31, 2025. Cash flows associated with these instruments are recorded as operating activities in the consolidated statements of cash flows. See Note 11, Fair Value, for the fair value of derivative instruments recorded in the consolidated balance sheets.

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