Fair Value Measurements (Tables)

12 Months Ended

Aug. 31, 2020

Schedule of Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes

The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated:



(in thousands)	Fair Value Hierarchy		August 31, 2020		August 31, 2019
Assets:
Cash and cash equivalents:
Cash equivalents	Level 1	⁽¹⁾	$	33,869	$	27,804
Prepaid expenses and other current assets:
Short-term investments	Level 1		16,556		14,088
Forward foreign exchange contracts:
Derivatives designated as hedging instruments (Note 11)	Level 2	⁽²⁾	11,201		904
Derivatives not designated as hedging instruments (Note 11)	Level 2	⁽²⁾	58,893		6,878
Other assets:
Senior Non-Convertible Preferred Stock	Level 3	⁽³⁾	—		33,102
Liabilities:
Accrued expenses:
Forward foreign exchange contracts:
Derivatives designated as hedging instruments (Note 11)	Level 2	⁽²⁾	$	1,522	$	15,999
Derivatives not designated as hedging instruments (Note 11)	Level 2	⁽²⁾	9,100		55,391
Interest rate swaps:
Derivatives designated as hedging instruments (Note 11)	Level 2	⁽⁴⁾	—		5,918
Derivatives not designated as hedging instruments (Note 11)	Level 2	⁽⁴⁾	540		—
Extended interest rate swap not designated as a hedging instrument (Note 11)	Level 2	⁽⁵⁾	26,492		—
Other liabilities:
Interest rate swap:
Derivatives designated as hedging instruments (Note 11)	Level 2	⁽⁴⁾	—		35,045
Derivatives not designated as hedging instruments (Note 11)	Level 2	⁽⁴⁾	329		—
Extended interest rate swap not designated as a hedging instrument (Note 11)	Level 2	⁽⁵⁾	13,111		—


⁽¹⁾	Consist of investments that are readily convertible to cash with original maturities of 90 days or less.


⁽²⁾	The Company’s forward foreign exchange contracts are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers.


⁽³⁾	During the fourth quarter of fiscal year 2020, the Company recognized an impairment on its investment in the Senior Non-Convertible Preferred Stock of iQor Holdings, Inc. (“iQor”) in connection with iQor’s bankruptcy filing. The Company does not expect to recover any of the investment value and recognized the entire remaining investment of $36.4 million as a loss on securities.


⁽⁴⁾	Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads.

⁽⁵⁾

The 2020 Extended Interest Rate Swaps are considered a hybrid instrument and the Company elected the fair value option for reporting. Fair value measurements are based on the contractual terms of the contract and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows using observable inputs including interest rate curves and credit spreads.

Schedule of Carrying Amounts and Fair Values of Notes Payable and Long-term Debt

The following table presents the assets held for sale (in thousands):



	August 31, 2020		August 31, 2019
(in thousands)	Carrying Amount		Carrying Amount
Assets held for sale⁽¹⁾	$	67,380	$	—

⁽¹⁾

The fair value of assets held for sale exceeds the carrying value for $30.1 million of assets held for sale. For $37.3 million of assets held for sale, the carrying value approximates the fair value with the asset value measured using Level 2 inputs.The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated:



			August 31, 2020				August 31, 2019
(in thousands)	Fair Value Hierarchy		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Notes payable and long-term debt: (Note 7)
5.625% Senior Notes	Level 2	⁽¹⁾	$	—	$	—	$	398,886	$	416,000
4.700% Senior Notes	Level 2	⁽¹⁾	498,659		537,180		498,004		525,890
4.900% Senior Notes	Level 3	⁽²⁾	299,300		329,435		299,057		318,704
3.950% Senior Notes	Level 2	⁽¹⁾	495,440		551,930		494,825		509,845
3.600% Senior Notes	Level 2	⁽¹⁾	494,756		536,110		—		—
3.000% Senior Notes	Level 2	⁽¹⁾	590,162		611,616		—		—


⁽¹⁾	The fair value estimates are based upon observable market data.

⁽²⁾

This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows.