Fair Value Measurements

3 Months Ended

Nov. 30, 2024

Fair Value Disclosures [Abstract]

Fair Value Measurements

Note 7 – 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 November 30, 2024, November 30, 2023, and August 31, 2024. There were no transfers between any levels for the periods presented.

	November 30, 2024
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	194,066	$	—		$	—	$	194,066
Marketable securities:
Corporate bonds		—		—			—		—
U.S. treasury securities		—		—			—		—
Derivative assets		—		1,897			—		1,897
Derivative liabilities		—		(156	)		—		(156	)
	November 30, 2023
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents		159,381		—			—		159,381
Marketable securities:
Corporate bonds		—		11,271			—		11,271
U.S. treasury securities		—		5,007			—		5,007
Derivative assets		—		1,001			—		1,001
Derivative liabilities		—		(588	)		—		(588	)
	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 assets		—		603			—		603
Derivative liabilities		—		(777	)		—		(777	)

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 first quarter of fiscal 2027 and the first quarter of fiscal 2028 with a total notional amount of $150.0 million, or €140.1 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 November 30, 2024, is included in the table above as either derivative assets or derivative liabilities. During the three months ended November 30, 2024 and 2023, the Company recognized translation gains of $1.9 million and losses of $0.6 million, respectively, within other comprehensive income related to its net investment hedges.

At November 30, 2024, the Company had an outstanding foreign currency forward contract to sell a notional amount of 139.3 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.

There were no required fair value adjustments for assets and liabilities measured at fair value on a non-recurring basis for the three months ended November 30, 2024 or 2023.