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Derivative Instruments | 12 Months Ended
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Aug. 31, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Instruments | Note 12 — Derivative Instruments Foreign operations give rise to market risks from changes in foreign currency exchange rates. Foreign exchange contracts with established financial institutions are utilized to hedge a portion of that risk. Interest rate swap agreements are used to reduce the impact of changes in interest rates on certain debt. The Company’s foreign exchange contracts and interest rate swap agreements are designated as cash flow hedges, and therefore the effective portion of unrealized gains and losses is recorded in AOCL. At August 31, 2025 exchange rates, notional amounts of foreign exchange contracts for the purchase of Polish Zlotys and the sale of Euros; and the purchase of Mexican Pesos and the sale of U.S. Dollars aggregated to $412.0 million. The fair value of the contracts is included on the Consolidated Balance Sheets as Accounts payable and accrued liabilities when in a loss position, or as Accounts receivable, net when in a gain position. As the contracts mature at various dates through March 2027, any such gain or loss remaining will be recognized in manufacturing revenue or cost of revenue along with the related transactions. In the event that the underlying transaction does not occur or does not occur in the period designated at the inception of the hedge, the amount classified in AOCL would be reclassified to the results of operations in Interest and foreign exchange at the time of occurrence. At August 31, 2025 exchange rates, approximately $0.2 million would be credited to revenue in the next year. At August 31, 2025, interest rate swap agreements maturing from August 2027 through March 2032 ha d notional amounts that aggregated to $687.8 million. The fair value of the contracts are included on the Consolidated Balance Sheets in Accounts payable and accrued liabilities when in a loss position, or in Accounts receivable, net when in a gain position. As interest expense on the underlying debt is recognized, amounts corresponding to the interest rate swap are reclassified from AOCL and charged or credited to interest expense. At August 31, 2025 interest rates, approximately $6.9 million would be credited to interest expense in the next year. Fair Values of Derivative Instruments
|  | Asset Derivatives |  |  | Liability Derivatives |
|  |  |  | August 31, |  |  |  |  | August 31, |
|  |  |  | 2025 |  |  | 2024 |  |  |  |  | 2025 |  |  | 2024 |
(In millions) |  | Balance sheet caption |  | Fair Value |  |  | Fair Value |  |  | Balance sheet caption |  | Fair Value |  |  | Fair Value |
Derivatives designated as hedging instruments |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Accounts receivable, net |  | $ | 5.4 |  |  | $ | 4.3 |  |  | Accounts payable and accrued liabilities |  | $ | 2.9 |  |  | $ | 0.1 |
Interest rate swap contracts |  | Accounts receivable, net |  |  | 13.6 |  |  |  | 19.7 |  |  | Accounts payable and accrued liabilities |  |  | 0.7 |  |  |  | 1.3 |
|  |  |  | $ | 19.0 |  |  | $ | 24.0 |  |  |  |  | $ | 3.6 |  |  | $ | 1.4 |
The Effect of Derivative Instruments on Accumulated Other Comprehensive Loss
Derivatives in cash flow hedging relationships |  | Gain (loss) recognized in Other comprehensive income (loss) Year ended August 31, |  |  | Location of gain (loss) reclassified from AOCL into income |  | Gain (loss) reclassified from AOCL into income Year ended August 31, |
(In millions) |  | 2025 |  |  | 2024 |  |  | 2023 |  |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Foreign exchange contracts |  | $ | 1.5 |  |  | $ | 3.4 |  |  | $ | 5.6 |  |  | Revenue |  | $ | 3.9 |  |  | $ | 2.5 |  |  | $ | (0.2 | )
Foreign exchange contracts |  |  | 0.1 |  |  |  | (0.6 | ) |  |  | 2.0 |  |  | Cost of revenue |  |  | 0.1 |  |  |  | (0.5 | ) |  |  | 2.2 |
Interest rate swap contracts |  |  | 6.9 |  |  |  | 0.4 |  |  |  | 24.8 |  |  | Interest and foreign exchange |  |  | 12.8 |  |  |  | 16.7 |  |  |  | 10.8 |
|  | $ | 8.5 |  |  | $ | 3.2 |  |  | $ | 32.4 |  |  |  |  | $ | 16.8 |  |  | $ | 18.7 |  |  | $ | 12.8 |
The Effect of Derivative Instruments on the Consolidated Statements of Income
Derivatives in cash flow hedging relationships |  | Location of gain (loss) |  | Gain (loss) recognized in income on derivatives Year ended August 31, |
(In millions) |  |  |  | 2025 |  |  | 2024 |  |  | 2023 |
Foreign exchange contracts |  | Interest and foreign exchange |  | $ | (0.3 | ) |  | $ | 0.1 |  |  | $ | — |
The following table presents the location and amounts in the Consolidated Statements of Income in which the effects of derivatives in cash flow hedging relationships were recorded:
|  | For the Year Ended August 31, |
(In millions) |  | 2025 |  |  | 2024 |  |  | 2023 |
Total Revenue |  | $ | 3,240.2 |  |  | $ | 3,544.7 |  |  | $ | 3,944.0 |
Gain (loss) on cash flow hedges in Revenue |  |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |
Gain (loss) reclassified from AOCL |  | $ | 3.9 |  |  | $ | 2.5 |  |  | $ | (0.2 | )
Amount excluded from effectiveness testing |  | $ | 3.1 |  |  | $ | 2.5 |  |  | $ | 2.0 |
Total Cost of revenue |  | $ | 2,632.7 |  |  | $ | 2,986.2 |  |  | $ | 3,502.9 |
Gain (loss) on cash flow hedges in Cost of revenue |  |  |  |  |  |  |  |  |
Foreign exchange contracts: |  |  |  |  |  |  |  |  |
Gain (loss) reclassified from AOCL |  | $ | 0.1 |  |  | $ | (0.5 | ) |  | $ | 2.2 |
Amount excluded from effectiveness testing |  | $ | — |  |  | $ | 0.9 |  |  | $ | 0.6 |
Total Interest and foreign exchange |  | $ | 75.7 |  |  | $ | 100.8 |  |  | $ | 85.4 |
Gain (loss) on cash flow hedges in Interest and foreign exchange |  |  |  |  |  |  |  |  |
Interest rate swap contracts: |  |  |  |  |  |  |  |  |
Gain reclassified from AOCL |  | $ | 12.8 |  |  | $ | 16.7 |  |  | $ | 10.8 |

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