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FAIR VALUE (Tables)
 12 Months Ended
Aug. 31, 2020
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)August 31, 2020Quoted 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 — 
 
  Fair Value Measurements at Reporting Date Using
(in thousands)August 31, 2019Quoted 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)
$66,240 $66,240 $— $— 
Commodity derivative assets (2)
1,269 1,269 — — 
Foreign exchange derivative assets (2)
569 — 569 — 
Liabilities:
Commodity derivative liabilities (2)
99 99 — — 
Foreign exchange derivative liabilities (2)
899 — 899 — 
_________________ 
(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. Derivative liabilities classified as Level 3, and the methodology used to determine their fair value, are described below. Further discussion regarding the Company's use of derivative instruments is included in Note 12, 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.
August 31, 2020
Unobservable InputsLowHighAverage
Floating rate (PLN)151.66 243.88 200.70 
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 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 loss in other comprehensive income ("OCI") in 2020.
(in thousands)August 31, 2020
Beginning balance$— 
New commodity contract1,083 
Total gains (losses), realized and unrealized
Recognized in earnings(1)
— 
Recognized in OCI(2)
(16,090)
Ending balance$(15,007)
__________________________________
(1) Gains (losses) recognized in earnings are included in cost of goods sold on the consolidated statements of earnings. As the derivative will not begin to settle until 2021, no gains or losses were recorded in earnings in 2020.
(2) Gains (losses) recognized in OCI are included in the unrealized holding gain (loss) on the consolidated statements of comprehensive income.
Financial assets and liabilities that are 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 consolidated balance sheets were as follows:
 August 31, 2020August 31, 2019
(in thousands)Fair Value HierarchyCarrying ValueFair ValueCarrying ValueFair Value
2027 Notes (1)
Level 2$300,000 $319,377 $300,000 $303,810 
2026 Notes (1)
Level 2350,000 367,374 350,000 363,444 
2023 Notes (1)
Level 2330,000 345,335 330,000 342,098 
Poland Term Loan (2)
Level 240,713 40,713 — — 
Term Loan (2)
Level 2— — 210,125 210,125 
Short-term borrowings (2)
Level 2— — 3,929 3,929 
__________________________________
(1) The fair value of the notes was determined based on indicated market values.
(2) The Poland Term Loan, Term Loan and short-term borrowings contain variable interest rates and carrying value approximates fair value.