FAIR VALUE (Tables)

9 Months Ended

May 31, 2022

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)	May 31, 2022		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)	$	318,095	$	318,095	$	—	$	—
Commodity derivative assets (2)	109,225		15,905		—		93,320
Foreign exchange derivative assets (2)	5,998		—		5,998		—
Liabilities:
Commodity derivative liabilities (2)	1,305		1,305		—		—
Foreign exchange derivative liabilities (2)	3,568		—		3,568		—

			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 10, 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 for 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 May 31, 2022 and 2021:

	Floating rate (PLN)
May 31,	Low	High	Average
2022	343.25	815.64	539.32
2021	217.38	296.36	251.10

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 causes volatility in the

fair value estimate and is the primary reason for unrealized gains included in other comprehensive income ("OCI") in the three and nine months ended May 31, 2022 and 2021.                                     

(in thousands)	Three Months Ended May 31, 2022
Balance, March 1, 2022	$	78,879
Total gains, realized and unrealized:
Unrealized holding gain before reclassification (1)	19,201
Reclassification for gain included in net earnings (2)	(4,760)
Balance, May 31, 2022	$	93,320
(in thousands)	Nine Months Ended May 31, 2022
Balance, September 1, 2021	$	26,413
Total gains, realized and unrealized:
Unrealized holding gain before reclassification (1)	81,039
Reclassification for gain included in net earnings (2)	(14,132)
Balance, May 31, 2022	$	93,320
(in thousands)	Three Months Ended May 31, 2021
Balance, March 1, 2021	$	(4,285)
Total gains, realized and unrealized:
Unrealized holding gain before reclassification (1)	15,459
Reclassification for gain included in net earnings (2)	(693)
Balance, May 31, 2021	$	10,481
(in thousands)	Nine Months Ended May 31, 2021
Balance, September 1, 2020	$	(15,007)
Total gains, realized and unrealized:
Unrealized holding gain before reclassification (1)	26,434
Reclassification for gain included in net earnings (2)	(946)
Balance, May 31, 2021	$	10,481

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(1)    Unrealized holding gains, less amounts reclassified, 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 in the condensed consolidated balance sheets were as follows:

		May 31, 2022				August 31, 2021
(in thousands)	Fair Value Hierarchy	Carrying Value		Fair Value		Carrying Value		Fair Value
2032 Notes (1)	Level 2	$	300,000	$	264,993	$	—	$	—
2031 Notes (1)	Level 2	300,000		261,390		300,000		306,279
2030 Notes (1)	Level 2	300,000		271,815		—		—
2027 Notes (1)	Level 2	—		—		300,000		316,839
2023 Notes (1)	Level 2	330,000		333,736		330,000		348,071
Series 2022 Bonds, due 2047 (1)	Level 2	145,060		126,778		—		—
Poland Term Loan (2)	Level 2	37,923		37,923		49,726		49,726
Short-term borrowings (2)	Level 2	62,627		62,627		26,560		26,560

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(1) The fair values of the notes and the Series 2022 Bonds 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.