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FAIR VALUE (Tables)

9 Months Ended

May 31, 2024

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, 2024:
Assets:
Investment deposit accounts(1)						$	561,442					$	561,442					$	—					$	—
Commodity derivative assets(2)						51,098						1,986						—						49,112
Foreign exchange derivative assets(2)						1,720						—						1,720						—
Liabilities:
Commodity derivative liabilities(2)						10,688						10,688						—						—
Foreign exchange derivative liabilities(2)						794						—						794						—
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						—

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(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 8, Derivatives.

The fair value estimate 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"), which 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 the fair value measurement. The following table summarizes the range of floating rates used to measure the fair value of the Level 3 commodity derivatives at May 31, 2024 and August 31, 2023, which are applied uniformly across each of our Level 3 commodity derivatives:

						Floating rate (PLN)
						Low						High						Average
May 31, 2024						324						532						419
August 31, 2023						480						855						630

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 and losses included in OCI in the three and nine months ended May 31, 2024 and 2023.                                     

(in thousands)						Three Months Ended May 31, 2024
Balance, March 1, 2024						$	86,317
Total activity, realized and unrealized:
Unrealized holding loss before reclassification(1)						(35,907)
Reclassification for gain included in net earnings(2)						(1,298)
Balance, May 31, 2024						$	49,112
(in thousands)						Nine Months Ended May 31, 2024
Balance, September 1, 2023						$	194,425
Total activity, realized and unrealized:
Unrealized holding loss before reclassification(1)						(139,665)
Reclassification for gain included in net earnings(2)						(5,648)
Balance, May 31, 2024						$	49,112
(in thousands)						Three Months Ended May 31, 2023
Balance, March 1, 2023						$	280,842
Total activity, 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 activity, 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

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(1) Unrealized holding gain (loss), 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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- References

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- 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

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-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-SubTopic 10
-Topic 820
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Name Accounting Standards Codification
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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
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 820
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482106/820-10-50-2

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