FAIR VALUE (Tables)

6 Months Ended

Feb. 28, 2021

Fair Value Disclosures [Abstract]

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 28, 2021		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)	$	345,240	$	345,240	$	—	$	—
Commodity derivative assets (2)	1,091		1,091		—		—
Foreign exchange derivative assets (2)	1,301		—		1,301		—
Liabilities:
Commodity derivative liabilities (2)	11,349		7,064		—		4,285
Foreign exchange derivative liabilities (2)	635		—		635		—

			Fair Value Measurements at Reporting Date Using
(in thousands)	August 31, 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)	$	449,824	$	449,824	$	—	$	—
Commodity derivative assets (2)	202		202		—		—
Foreign exchange derivative assets (2)	1,484		—		1,484		—
Liabilities:
Commodity derivative liabilities (2)	19,000		3,993		—		15,007
Foreign exchange derivative liabilities (2)	459		—		459		—

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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. Derivatives classified as Level 3 are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives.

The fair value estimate of the Level 3 commodity derivative is based on an internally developed discounted cash flow model primarily utilizing unobservable inputs in which there is little or no market data. The Company forecasts future energy rates using a range of historical prices ("floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow model.

	February 28, 2021
Unobservable Inputs	Low	High	Average
Floating rate (PLN)	151.74	264.53	221.74

Fair value, net derivative asset (liability) measured on recurring basis, unobservable input reconciliation

Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivative recognized in the condensed consolidated statements of comprehensive income. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for the unrealized gain in other comprehensive income ("OCI") in the three and six months ended February 28, 2021.

(in thousands)	Three Months Ended February 28, 2021
Balance, December 1, 2020	$	(13,614)
Total gains, realized and unrealized
Recognized in net earnings(1)	253
Recognized in OCI(2)	9,076
Balance, February 28, 2021	$	(4,285)
(in thousands)	Six Months Ended February 28, 2021
Balance, September 1, 2020	$	(15,007)
Total gains, realized and unrealized
Recognized in net earnings(1)	253
Recognized in OCI(2)	10,469
Balance, February 28, 2021	$	(4,285)

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(1)    Gains recognized in net earnings are included in cost of goods sold in the condensed consolidated statements of earnings.

(2)    Gains recognized in OCI are included in the unrealized holding gain in the condensed consolidated statements of comprehensive income (loss).

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 28, 2021				August 31, 2020
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
2031 Notes (1)	Level 2	$	300,000	$	301,674	$	—	$	—
2027 Notes (1)	Level 2	300,000		319,428		300,000		319,377
2026 Notes (1)	Level 2	—		—		350,000		367,374
2023 Notes (1)	Level 2	330,000		349,104		330,000		345,335
Poland Term Loan(2)	Level 2	40,068		40,068		40,713		40,713

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

(2) The Poland Term Loan contains variable interest rates, and as a result, the carrying value approximates fair value.