Fair Value Measurement

3 Months Ended

Nov. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurement

Note 7. Fair Value Measurements

The Company assesses the inputs used to measure the fair value of financial assets and liabilities using a three-tier hierarchy. Level 1 inputs include unadjusted quoted prices for identical instruments and are the most observable. Level 2 inputs include quoted prices for similar assets and observable inputs such as interest rates, foreign currency exchange rates, commodity rates and yield curves. Level 3 inputs are not observable in the market and include management’s own judgments about the assumptions market participants would use in pricing an asset or liability.

The fair value of the Company’s cash and cash equivalents, accounts receivable, accounts payable and variable rate long-term debt approximated book value at both November 30, 2025 and August 31, 2025 due to their short-term nature and the fact that the interest rates approximated market rates. Foreign currency exchange contracts and interest rate swaps are recorded at fair value. The fair value of the Company's foreign currency exchange contracts was a net liability of less than $0.1 million and a net asset of less than $0.1 million at November 30, 2025 and August 31, 2025, respectively.

The fair value of the Company's interest rate swap and net investment hedge was a liability of $0.3 million and $4.6 million at November 30, 2025, respectively, and an asset of less than $0.1 million and a liability of $4.7 million at August 31, 2025, respectively, (see Note 8, “Derivatives”, for further information on the Company's interest rate swap and net investment hedge.) The fair value of all derivative contracts were based on quoted inactive market prices and therefore classified as Level 2 within the valuation hierarchy.