FAIR VALUE (Tables)

3 Months Ended

Nov. 30, 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)	November 30, 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)	$	361,387	$	361,387	$	—	$	—
Commodity derivative assets (2)	50,253		2,361		—		47,892
Foreign exchange derivative assets (2)	1,207		—		1,207		—
Liabilities:
Commodity derivative liabilities (2)	375		375		—		—
Foreign exchange derivative liabilities (2)	4,072		—		4,072		—

			Fair Value Measurements at Reporting Date Using
(in thousands)	August 31, 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)	$	441,297	$	441,297	$	—	$	—
Commodity derivative assets (2)	27,323		910		—		26,413
Foreign exchange derivative assets (2)	2,537		—		2,537		—
Liabilities:
Commodity derivative liabilities (2)	1,352		1,352		—		—
Foreign exchange derivative liabilities (2)	1,880		—		1,880		—

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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. The following table summarizes the floating rate used to measure the fair value of the commodity derivative at November 30, 2021 and 2020:

	Floating rate (PLN)
November 30,	Low	High	Average
2021	252.79	540.39	348.99
2020	151.66	247.56	203.96

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 unrealized gains and losses included in other comprehensive income ("OCI") in the three months ended November 30, 2021 and 2020.

(in thousands)	Three Months Ended November 30, 2021
Balance, September 1, 2021	$	26,413
Total gains, realized and unrealized
Unrealized holding gain(1)	25,208
Reclassification for gain included in net earnings(2)	(3,729)
Balance, November 30, 2021	$	47,892
(in thousands)	Three Months Ended November 30, 2020
Balance, September 1, 2020	$	(15,007)
Total gains, realized and unrealized
Unrealized holding gain(1)	1,393
Balance, November 30, 2020	$	(13,614)

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(1)    Unrealized holding gains are included in OCI in the condensed consolidated statements of comprehensive income.

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

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:

		November 30, 2021				August 31, 2021
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
2031 Notes (1)	Level 2	$	300,000	$	297,378	$	300,000	$	306,279
2027 Notes (1)	Level 2	300,000		309,978		300,000		316,839
2023 Notes (1)	Level 2	330,000		341,058		330,000		348,071
Poland Term Loan(2)	Level 2	44,055		44,055		49,726		49,726
Short-term borrowings (2)	Level 2	29,992		29,992		26,560		26,560

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(1) The fair values of the Notes were determined based on indicated market values.

(2) The Poland Term Loan and short-term borrowings contain variable interest rates, and as a result, the carrying values approximate fair value.