FAIR VALUE (Tables)

6 Months Ended

Feb. 29, 2020

Financial assets and financial liabilities measured at fair value on a recurring basis

The following tables summarize information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis:


			Fair Value Measurements at Reporting Date Using
(in thousands)	February 29, 2020		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Investment deposit accounts ⁽¹⁾	$	191,424	$	191,424	$	—	$	—
Commodity derivative assets ⁽²⁾	1,631		1,631		—		—
Foreign exchange derivative assets ⁽²⁾	374		—		374		—
Liabilities:
Commodity derivative liabilities ⁽²⁾	3,663		77		—		3,586
Foreign exchange derivative liabilities ⁽²⁾	696		—		696		—


			Fair Value Measurements at Reporting Date Using
(in thousands)	August 31, 2019		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Investment deposit accounts ⁽¹⁾	$	66,240	$	66,240	$	—	$	—
Commodity derivative assets ⁽²⁾	1,269		1,269		—		—
Foreign exchange derivative assets ⁽²⁾	569		—		569		—
Liabilities:
Commodity derivative liabilities ⁽²⁾	99		99		—		—
Foreign exchange derivative liabilities ⁽²⁾	899		—		899		—

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(1) Investment deposit accounts are short-term in nature, and the value is determined by principal plus interest. The investment portfolio mix can change each period based on the Company's assessment of investment options.

(2) Derivative assets and liabilities classified as Level 1 are commodity futures contracts valued based on quoted market prices in the London Metal Exchange or New York Mercantile Exchange. Amounts in Level 2 are based on broker quotes in the over-the-counter market. Fair value of Level 3 derivative liabilities is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed cash flow model. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives.

Financial assets and liabilities not required to be measured at fair value

The carrying values and estimated fair values of the Company's financial assets and liabilities that are not required to be measured at fair value on the condensed consolidated balance sheets were as follows:


		February 29, 2020						August 31, 2019
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
2027 Notes ⁽¹⁾	Level 2	$	300,000	$	308,151	$	300,000	$	303,810
2026 Notes ⁽¹⁾	Level 2	350,000		365,215		350,000		363,444
2023 Notes ⁽¹⁾	Level 2	330,000		344,177		330,000		342,098
Term Loan ⁽²⁾	Level 2	110,125		110,125		210,125		210,125
Poland credit facilities ⁽²⁾	Level 2	11,290		11,290		—		—
Short-term borrowings ⁽²⁾	Level 2	8,272		8,272		3,929		3,929

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(1) The fair value of the notes was determined based on indicated market values.

(2) The Term Loan, Poland credit facilities and short-term borrowings contain variable interest rates and carrying value approximates fair value.