In the normal course of business, we use derivative financial instruments to manage foreign currency exchange rate risk. Our derivative financial instruments consist of deliverable and non-deliverable foreign currency forward contracts.

For a cash flow hedge, the effective portion of the change in estimated fair value of a hedging instrument is recorded in Accumulated other comprehensive loss as a separate component of Shareholders’ Equity and is reclassified into Cost of services in the Consolidated Income Statements during the period in which the hedged transaction is recognized. For information related to derivatives designated as cash flow hedges that were reclassified into Cost of services during the three and nine months ended May 31, 2024 and 2023, as well as those expected to be reclassified into Cost of services in the next twelve months, see Note 4 (Accumulated Other Comprehensive Loss) to these Consolidated Financial Statements.

Realized gains or losses and changes in the estimated fair value of foreign currency forward contracts that have not been designated as hedges were net losses of $57,232 and $103,568 for the three and nine months ended May 31, 2024, respectively, and net losses of $72,091 and $94,351 for the three and nine months ended May 31, 2023, respectively. Gains and losses on these contracts are recorded in Other income (expense), net in the Consolidated Income Statements and are offset by gains and losses on the related hedged items.


	May 31, 2024		August 31, 2023
Assets
Cash Flow Hedges
Other current assets	$	59,171	$	52,995
Other non-current assets	46,783		44,739
Other Derivatives
Other current assets	6,607		6,686
Total assets	$	112,561	$	104,420
Liabilities
Cash Flow Hedges
Other accrued liabilities	$	34,078	$	50,020
Other non-current liabilities	24,997		26,076
Other Derivatives
Other accrued liabilities	36,430		38,645
Total liabilities	$	95,505	$	114,741
Total fair value	$	17,056	$	(10,321)
Total notional value	$	14,140,492	$	13,390,031

We utilize standard counterparty master agreements containing provisions for the netting of certain foreign currency transaction obligations and for the set-off of certain obligations in the event of an insolvency of one of the parties to the transaction. In the Consolidated Balance Sheets, we record derivative assets and liabilities at gross fair value. The potential effect of netting derivative assets against liabilities under the counterparty master agreements is as follows:


	May 31, 2024		August 31, 2023
Net derivative assets	$	74,283	$	50,528
Net derivative liabilities	57,227		60,849
Total fair value	$	17,056	$	(10,321)