Fair Value Measurements

12 Months Ended

Aug. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 14 – 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 August 31, 2024 and 2023, respectively:

	August 31, 2024
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	190,879	$	—		$	—	$	190,879
Marketable securities:
Corporate bonds		—		—			—		—
U.S. treasury securities		—		—			—		—
Derivative asset		—		603			—		603
Derivative liability		—		(777	)		—		(777	)
	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 asset		—		1,672			—		1,672
Derivative liability		—		(457	)		—		(457	)

The carrying value of long-term debt (including current portion) was $115.5 million and $115.7 million at August 31, 2024 and 2023, respectively. The fair value of this debt was estimated to be $105.5 million and $102.0 million as of August 31, 2024 and 2023, respectively, based on current market rates as of the respective year-ends.

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 consolidated balance sheets and the fair value of these contracts is recorded within other noncurrent assets and other noncurrent liabilities on the consolidated balance sheets. The fair value of these contracts as of August 31, 2024, is included in the table above as either derivative assets or derivative liabilities.

During fiscal 2024, the Company settled foreign currency forward contracts resulting in a net loss of $0.1 million which were recorded in the consolidated statements of earnings. At August 31, 2024 the Company had an outstanding foreign currency forward contract to sell a notional amount of 144.8 million South African rand at fixed prices to settle during the next fiscal quarter. The Company’s foreign currency forward contracts do not qualify as hedges of a net investment in foreign operations.