Fair Value Measures (Tables)

9 Months Ended

May 31, 2022

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

The following tables show, by level within the fair value hierarchy, our assets and liabilities that are measured at fair value on a recurring basis as of May 31, 2022 and August 31, 2021. We did not have any transfers between levels of fair value measurements during the periods presented. We held no Level 3 assets or liabilities measured at fair value on a recurring basis as of May 31, 2022 or August 31, 2021.


	Fair Value Measurements as of May 31, 2022
(in thousands)	Level 1		Level 2		Total
Assets
Corporate money market funds (1)	$	237,803	$	—	$	237,803
Mutual funds (2)	—		33,580		33,580

Derivative instruments (3)	—		8,605		8,605
Total assets measured at fair value	$	237,803	$	42,185	$	279,988

Liabilities
Derivative instruments (3)	$	—	$	3,963	$	3,963
Total liabilities measured at fair value	$	—	$	3,963	$	3,963


	Fair Value Measurements as of August 31, 2021
(in thousands)	Level 1		Level 2		Total
Assets
Corporate money market funds (1)	$	232,519	$	—	$	232,519
Mutual funds (2)	—		35,984		35,984

Derivative instruments (3)	—		1,384		1,384
Total assets measured at fair value	$	232,519	$	37,368	$	269,887

Liabilities
Derivative instruments (3)	$	—	$	4,181	$	4,181
Total liabilities measured at fair value	$	—	$	4,181	$	4,181

1.Our 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. Our corporate money market funds are classified as Level 1 assets and are included in Cash and cash equivalents within the Consolidated Balance Sheets.

2.Our 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. Our mutual funds are classified as Level 2 and are included in Investments (short-term) within the Consolidated Balance Sheets.

3.Our derivative instruments include our foreign exchange forward contracts and interest rate swap agreements. We utilize the income approach to measure fair value for our 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 our interest rate swap agreements, we utilize 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 our derivative instruments designed as cash flow hedges and their classification within the Consolidated Balance Sheets.

Schedule of assets and liabilities measured at carrying value and fair value

The following table summarizes the outstanding principal amount, estimated fair value and related hierarchy level, unamortized discounts and debt issuance costs and net carrying value of our debt as of May 31, 2022:


		May 31, 2022				August 31, 2021
(in thousands)	Fair Value Hierarchy	Principal Amount		Estimated Fair Value		Principal Amount		Estimated Fair Value
2027 Notes	Level 1	$	500,000	$	475,275	$	—	$	—
2032 Notes	Level 1	500,000		451,730		—		—
2022 Term Facility	Level 3	875,000		872,813		—		—
2022 Revolving Facility	Level 3	250,000		248,125		—		—
2019 Revolving Credit Facility	Level 2	—		—		575,000		575,000
Total principal amount		$	2,125,000	$	2,047,943	$	575,000	$	575,000
Total unamortized discounts and debt issuance costs		(19,858)				(465)
Total net carrying value of debt		$	2,105,142			$	574,535