FAIR VALUE (Tables)

12 Months Ended

Aug. 31, 2023

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)	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
As of August 31, 2023:
Assets:
Investment deposit accounts (1)	$	508,227	$	508,227	$	—	$	—
Commodity derivative assets (2)	195,689		1,264		—		194,425
Foreign exchange derivative assets (2)	1,898		—		1,898		—
Liabilities:
Commodity derivative liabilities (2)	4,068		4,068		—		—
Foreign exchange derivative liabilities (2)	2,566		—		2,566		—
As of August 31, 2022:
Assets:
Investment deposit accounts (1)	$	572,384	$	572,384	$	—	$	—
Commodity derivative assets (2)	160,847		17,347		—		143,500
Foreign exchange derivative assets (2)	1,296		—		1,296		—
Liabilities:
Commodity derivative liabilities (2)	1,260		1,260		—		—
Foreign exchange derivative liabilities (2)	3,126		—		3,126		—

__________________________________

(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 the 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.

As of August 31, 2022, the Company had one Level 3 commodity derivative. The Company entered into its second and third Level 3 commodity derivatives in September 2022 and January 2023, respectively, with the same counterparty as the first Level 3 commodity derivative. Both the second and third Level 3 commodity derivatives will begin to settle in January 2025.

The fair value estimate of the Level 3 commodity derivatives are based on internally developed discounted cash flow models 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 (the "floating rate"). The floating rate is the only significant unobservable input used in the Company's discounted cash flow models. Significantly higher or lower floating rates could have resulted in a material difference in our fair value measurement. The following table summarizes the floating rates used to measure the fair value of the Level 3 commodity derivatives during 2023 and 2022, which are applied uniformly across each of our Level 3 commodity derivatives:

	Floating Rate (PLN)
Year Ended August 31,	Low	High	Average
2023	480	855	630
2022	460	1,299	717

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 derivatives recognized in the consolidated statements of comprehensive income. Amounts presented are before income taxes. The fluctuation in energy rates over time may cause volatility in the fair value estimate and is the primary reason for the unrealized gains in other comprehensive income in 2023, 2022 and 2021.

(in thousands)	Level 3 Commodity Derivatives
Balance at September 1, 2020	$	(15,007)
Unrealized holding gain(1)	43,798
Reclassification for gain included in net earnings(2)	(2,378)
Balance at August 31, 2021	26,413
Unrealized holding gain(1)	138,760
Reclassification for gain included in net earnings(2)	(21,673)
Balance at August 31, 2022	143,500
Unrealized holding gain(1)	62,706
Reclassification for gain included in net earnings(2)	(11,781)
Balance at August 31, 2023	$	194,425

__________________________________

(1) Unrealized holding gains, net of foreign currency translation, less amounts reclassified are included in net unrealized holding gain (reclassification for realized gain) on derivatives in the consolidated statements of comprehensive income.

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