Fair Value Measures (Tables)

6 Months Ended

Feb. 28, 2021

Fair Value Disclosures [Abstract]

Schedule of assets and liabilities measured at fair value on a recurring basis

The following tables show, by level within the fair value hierarchy, the Company’s assets and liabilities that are measured at fair value on a recurring basis at February 28, 2021 and August 31, 2020. The Company did not have any transfers between levels of fair value measurements during the periods presented. 

	Fair Value Measurements at February 28, 2021
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Corporate money market funds (1)	$	251,858	$	—	$	—	$	251,858
Mutual funds (2)	—		17,768		—		17,768
Derivative instruments (4)	—		3,169		—		3,169
Total assets measured at fair value	$	251,858	$	20,937	$	—	$	272,795
Liabilities
Derivative instruments (4)	$	—	$	3,711	$	—	$	3,711
Total liabilities measured at fair value	$	—	$	3,711	$	—	$	3,711

	Fair Value Measurements at August 31, 2020
(in thousands)	Level 1		Level 2		Level 3		Total
Assets
Corporate money market funds (1)	$	276,852	$	—	$	—	$	276,852
Mutual funds (2)	—		17,257		—		17,257
Certificates of deposit (3)	—		2,315		—		2,315
Derivative instruments (4)	—		3,644		—		3,644
Total assets measured at fair value	$	276,852	$	23,216	$	—	$	300,068
Liabilities
Derivative instruments (4)	$	—	$	5,773	$	—	$	5,773
Total liabilities measured at fair value	$	—	$	5,773	$	—	$	5,773

1.The Company’s corporate money market funds are readily convertible into cash and the net asset value of each fund on the last day of the quarter is used to determine its fair value. As such, the Company’s corporate money market funds are classified as Level 1 assets and included in Cash and cash equivalents within the Consolidated Balance Sheets.

2.The Company’s mutual funds have a fair value based on the fair value of the underlying investments held by the mutual funds, allocated to each share of the mutual fund using a net asset value approach. The fair value of the underlying investments is based on

observable inputs. As such, the Company’s mutual funds are classified as Level 2 and are classified as Investments (short-term) on the Consolidated Balance Sheets.

3.The Company’s certificates of deposit held for investment are not debt securities and are classified as Level 2 assets. These certificates of deposit have original maturities greater than three months but less than one year and, as such, are classified as Investments (short-term) within the Consolidated Balance Sheets.

4.The Company utilizes the income approach to measure fair value for its foreign exchange forward contracts. The income approach uses pricing models that rely on market observable inputs such as spot, forward and interest rates, as well as credit default swap spreads, and are classified as Level 2 assets. To estimate fair value for the interest rate swap agreement, the Company utilizes a present value of future cash flows, leveraging a model-derived valuation that uses Level 2 observable inputs such as interest rate yield curves. Refer to Note 6, Derivative Instruments, for more information on the Company's derivative instruments designed as cash flow hedges.