XML 167 R20.htm IDEA: XBRL DOCUMENT v3.25.3
FAIR VALUE
 12 Months Ended
Aug. 31, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE
NOTE 11. FAIR VALUE

The Company has established a fair value hierarchy that prioritizes the inputs to the valuation techniques used to measure fair value into three levels. These levels are determined based on the lowest-level input that is significant to the fair value measurement. See Note 1, Nature of Operations and Summary of Significant Accounting Policies, for definitions of the three levels within the hierarchy.

The Company presents the fair value of its derivative contracts on a net-by-counterparty basis when a legal right to offset exists under an enforceable netting agreement. The following table summarizes the Company's financial assets and financial liabilities measured at fair value on a recurring basis:
  Fair Value Measurements at Reporting Date Using
(in thousands)TotalLevel 1Level 2Level 3
As of August 31, 2025:
Assets:
Investment deposit accounts(1)
$902,106 $902,106 $— $— 
Commodity derivative assets58,901 5,458 — 53,443 
Foreign exchange derivative assets4,809 — 4,809 — 
Liabilities:
Commodity derivative liabilities282 282 — — 
Foreign exchange derivative liabilities821 — 821 — 
As of August 31, 2024:
Assets:
Investment deposit accounts(1)
$718,110 $718,110 $— $— 
Commodity derivative assets40,225 2,196 — 38,029 
Foreign exchange derivative assets419 — 419 — 
Liabilities:
Commodity derivative liabilities3,602 3,602 — — 
Foreign exchange derivative liabilities1,885 — 1,885 — 
__________________________________
(1) Investment deposit accounts are short-term in nature, and the value is based on principal plus interest.
As of August 31, 2025, the Company had three Level 3 commodity derivatives with the same counterparty. The fair value of the Level 3 commodity derivatives is estimated using internally developed discounted cash flow models that rely on significant unobservable inputs. The Company forecasts future energy rates using a range of historical prices (the "floating rate"), which is the only significant unobservable input used in the Company's discounted cash flow models. Significant variations in the floating rate could materially impact the fair value measurement. The following table summarizes the range of floating rates used to measure the fair value of the Level 3 commodity derivatives at August 31, 2025 and 2024, which are applied uniformly across each of the Company's Level 3 commodity derivatives:
Floating Rate (PLN)
LowHighAverage
August 31, 2025346 563 436 
August 31, 2024324 510 405 

Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivatives recognized in the consolidated statements of comprehensive income. Amounts are shown before income taxes. The fluctuation in energy rates over time may cause volatility in the fair value estimate and was the primary reason for unrealized gains and losses in OCI in 2025, 2024 and 2023.
(in thousands)Level 3 Commodity Derivatives
Balance, September 1, 2022$143,500 
Unrealized holding gain before reclassification(1)
62,706 
Reclassification for gain included in net earnings(2)
(11,781)
Balance at August 31, 2023194,425 
Unrealized holding loss before reclassification(1)
(148,533)
Reclassification for gain included in net earnings(2)
(7,863)
Balance at August 31, 202438,029 
Unrealized holding gain before reclassification(1)
24,721 
Reclassification for gain included in net earnings(2)
(9,307)
Balance at August 31, 2025$53,443 
__________________________________
(1) Unrealized holding gains (losses), net of foreign currency translation, less amounts reclassified, are included in net unrealized holding gain (loss) on derivatives in the consolidated statements of comprehensive income.
(2) Realized gains included in net earnings are recorded in cost of goods sold in the consolidated statements of earnings.

During the fourth quarter of 2024, the Company committed to a plan to sell a rebar fabrication facility within the North America Steel Group segment and determined that the disposal group met the criteria to be classified as held for sale. Accordingly, the Company classified $17.5 million of assets and $4.1 million of liabilities as held for sale within the Company's consolidated balance sheet as of August 31, 2024. The liabilities held for sale were included in other accrued expenses and payables. Upon concluding that the disposal group met the held for sale criteria, the Company recorded an impairment charge of $6.6 million to record the disposal group at the lower of its carrying value or fair value less costs to sell. The Company determined the fair value of the disposal group using a Level 2 input, based on a quoted price in an inactive market. There were no other material nonrecurring fair value remeasurements in 2025 or 2024.

The carrying values of the Company's short-term items, including documentary letters of credit and notes payable, approximate fair value.

The carrying value and fair value of the Company's long-term debt, including current maturities, excluding other borrowings and finance leases, was $1.2 billion and $1.1 billion, respectively, at August 31, 2025, and $1.0 billion and $962.8 million, respectively, at August 31, 2024. The fair values were estimated based on Level 2 of the fair value hierarchy using indicated market values. The Company's other borrowings contain variable interest rates, so their carrying values approximate fair values.