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FAIR VALUE (Tables) | 9 Months Ended
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May 31, 2023
Fair Value Disclosures [Abstract] |
Financial assets and financial liabilities measured at fair value on a recurring basis | The following table summarizes 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 May 31, 2023: |  |  |  |  |  |  |  |
Assets: |  |  |  |  |  |  |  |
Investment deposit accounts (1) |  | $ | 389,688 |  |  | $ | 389,688 |  |  | $ | — |  |  | $ | — |
Commodity derivative assets (2) |  | 285,148 |  |  | 4,863 |  |  | — |  |  | 280,285 |
Foreign exchange derivative assets (2) |  | 4,275 |  |  | — |  |  | 4,275 |  |  | — |
Liabilities: |  |  |  |  |  |  |  |
Commodity derivative liabilities (2) |  | 5,491 |  |  | 5,491 |  |  | — |  |  | — |
Foreign exchange derivative liabilities (2) |  | 6,730 |  |  | — |  |  | 6,730 |  |  | — |
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 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. 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 estimates of the Level 3 commodity derivatives are based on internally developed discounted cash flow models 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 (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 at May 31, 2023 and August 31, 2022, which are applied uniformly across each of our Level 3 commodity derivatives:
|  | Floating rate (PLN)
|  | Low |  | High |  | Average
May 31, 2023 |  | 479.70 |  |  | 1,298.53 |  |  | 770.93 |
August 31, 2022 |  | 460.11 |  |  | 1,298.53 |  |  | 717.22 |
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 condensed consolidated statements of comprehensive income. The fluctuation in energy rates over time causes volatility in the fair value estimates and is the primary reason for unrealized gains included in other comprehensive income ("OCI") in the three and nine months ended May 31, 2023 and 2022.
(in thousands) |  | Three Months Ended May 31, 2023
Balance, March 1, 2023 |  | $ | 280,842 |
Total gains, realized and unrealized: |  |
Unrealized holding gain before reclassification (1) |  | 1,526 |
Reclassification for gain included in net earnings (2) |  | (2,083) |
Balance, May 31, 2023 |  | $ | 280,285 |
(in thousands) |  | Nine Months Ended May 31, 2023
Balance, September 1, 2022 |  | $ | 143,500 |
Total gains, realized and unrealized: |  |
Unrealized holding gain before reclassification (1) |  | 145,808 |
Reclassification for gain included in net earnings (2) |  | (9,023) |
Balance, May 31, 2023 |  | $ | 280,285 |
(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 |
__________________________________ (1) Unrealized holding gains, net of foreign currency translation, less amounts reclassified are included in net unrealized gain (loss) on derivatives 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.

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- 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 https://asc.fasb.org/extlink&oid=126976982&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 https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
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