XML 65 R32.htm IDEA: XBRL DOCUMENT
v3.21.4

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 |  |  | — |
_________________ (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) |
________________ (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 |
_________________ (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.

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=121572278&loc=d3e13467-108611 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of financial instrument classified as a derivative asset (liability) after deduction of derivative liability (asset) using recurring unobservable inputs that reflect the entity's own assumption about the assumptions market participants would use in pricing. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueNetDerivativeAssetLiabilityMeasuredOnRecurringBasisUnobservableInputReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration