FAIR VALUE MEASURES (Tables)

12 Months Ended

Aug. 31, 2023

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 August 31, 2023 and 2022. We did not have any transfers between levels of fair value measurements during fiscal 2023 and 2022.


(in thousands)	Fair Value Measurements at August 31, 2023
	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	137,125	$	—	$	—	$	137,125
Mutual funds(2)	—		32,210		—		32,210

Derivative instruments(3)	—		4,383		—		4,383
Total assets measured at fair value	$	137,125	$	36,593	$	—	$	173,718

Liabilities
Derivative instruments(3)	$	—	$	608	$	—	$	608
Contingent liability(4)	—		—		8,008		8,008
Total liabilities measured at fair value	$	—	$	608	$	8,008	$	8,616


(in thousands)	Fair Value Measurements at August 31, 2022
	Level 1		Level 2		Level 3		Total
Assets
Money market funds(1)	$	179,330	$	—	$	—	$	179,330
Mutual funds(2)	—		33,219		—		33,219

Derivative instruments(3)	—		12,412		—		12,412
Total assets measured at fair value	$	179,330	$	45,631	$	—	$	224,961

Liabilities
Derivative instruments(3)	$	—	$	8,307	$	—	$	8,307
Total liabilities measured at fair value	$	—	$	8,307	$	—	$	8,307

(1) Our money market funds are readily convertible into cash and the net asset value of each fund on the last day of the reporting period is used to determine its fair value. Our money market funds are included in Cash and cash equivalents within the Consolidated Balance Sheets.

(2) Our mutual funds' fair value is 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 included in Investments 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. 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 observable inputs such as interest rate yield curves. Refer to Note 5, Derivative Instruments for more information on our derivative instruments and their classification within the Consolidated Balance Sheets.

(4) The contingent liability resulted from the acquisition of a business during fiscal 2023. This liability reflects the present value of potential future payments that are contingent upon the achievement of certain specified milestones. The acquisition date fair value of the contingent liability was $7.9 million and was valued using a scenario-based method. This method incorporates unobservable inputs and assumptions made by management, including the probability of achieving specified milestones, expected time until payment and the discount rate. The fair value of the contingent liability is remeasured each reporting period until the contingency is resolved, with any changes in fair value recorded in SG&A in the Consolidated Statements of Income. The change in the fair value of the contingent liability from the acquisition date through August 31, 2023 was driven by the passage of time, with no changes made to key assumptions used in our fair value estimates.

Schedule of Assets and Liabilities Measured at Carrying Values and Fair Value

The following table summarizes information on our outstanding debt as of August 31, 2023 and 2022:


		August 31, 2023				August 31, 2022
(in thousands)	Fair Value Hierarchy	Principal Amount		Estimated Fair Value		Principal Amount		Estimated Fair Value
2027 Notes	Level 1	$	500,000	$	460,890	$	500,000	$	470,525
2032 Notes	Level 1	500,000		423,700		500,000		438,205
2022 Term Facility	Level 3	375,000		376,406		750,000		750,975
2022 Revolving Facility	Level 3	250,000		246,875		250,000		249,075
Total principal amount		$	1,625,000	$	1,507,871	$	2,000,000	$	1,908,780
Total unamortized discounts and debt issuance costs		(12,300)				(17,576)
Total net carrying value of debt		$	1,612,700			$	1,982,424