Fair Value Measurements

9 Months Ended

May 31, 2024

Note 8 – Fair Value Measurements

The following table presents the Company’s financial assets and liabilities measured at fair value, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of May 31, 2024, May 31, 2023, and August 31, 2023. There were no transfers between any levels for the periods presented.


	May 31, 2024
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	140,221	$	—		$	—	$	140,221
Marketable securities:
Corporate bonds		—		10,086			—		10,086
U.S. treasury securities		—		2,411			—		2,411
Derivative assets		—		1,380			—		1,380
Derivative liabilities		—		(460	)		—		(460	)

	May 31, 2023
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents		131,577		—			—		131,577
Marketable securities:
Corporate bonds		—		11,360			—		11,360
U.S. treasury securities		—		1,446			—		1,446
Derivative assets		—		2,817			—		2,817

	August 31, 2023
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	160,755	$	—		$	—	$	160,755
Marketable securities:
Corporate bonds		—		4,095			—		4,095
U.S. treasury securities		—		1,461			—		1,461
Derivative assets		—		1,672			—		1,672
Derivative liabilities		—		(457	)		—		(457	)

The Company’s investment in marketable securities consists of corporate bonds and United States treasury bonds. The marketable securities are classified as available-for-sale and are carried at fair value with the change in unrealized gains and losses reported as a separate component on the condensed consolidated statements of comprehensive income until realized. The Company determines fair value using data points that are observable, such as quoted prices and interest rates. The amortized cost of the investments approximates fair value. Investment income is recorded within other income (expense) on the condensed consolidated statements of earnings. As of May 31, 2024, all of the Company’s marketable securities investments mature within one year.

The Company enters into derivative instrument agreements to manage risk in connection with changes in foreign currency. The Company only enters into derivative instrument agreements with counterparties who have highly rated credit and does not enter into derivative instrument agreements for trading or speculative purposes. The fair values are based on inputs other than quoted prices that are observable for the asset or liability and are determined by standard calculations and models that use readily observable market parameters. These inputs include foreign currency exchange rates and interest rates. Industry standard data providers are the primary source for forward and spot rate information for both interest rates and foreign currency exchange rates.

The Company has entered into various cross currency swaps that mature between the second quarter of fiscal 2026 and the third quarter of fiscal 2027 with a total notional amount of $100.0 million, or €91.7 million. The Company elected the spot method for designating these swaps as net investment hedges. Changes in the fair value of these contracts are reported in accumulated other comprehensive loss on the condensed consolidated balance sheets and the fair value of these contracts is recorded within other noncurrent assets and other noncurrent liabilities on the condensed consolidated balance sheets. The fair value of these contracts as of May 31, 2024 is included in the table above as either derivative assets or liabilities.

At May 31, 2024 the Company had an outstanding foreign currency forward contract to sell a notional amount of 190.9 million South African rand at fixed prices to settle during the Company's next fiscal quarter ending August 31, 2024. The Company’s foreign currency forward contract does not qualify as a hedge of a net investment in foreign operations. The fair value of this contract as of May 31, 2024 is recorded within other current assets on the condensed consolidated balance sheets.

There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the nine months ended May 31, 2024 or 2023.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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