Fair Value Measurements

6 Months Ended

Feb. 28, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

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 February 28, 2025, February 29, 2024, and August 31, 2024. There were no transfers between any levels for the periods presented.

	February 28, 2025
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	172,044	$	—		$	—	$	172,044
Marketable securities:
Commercial paper		—		14,676			—	$	14,676
Derivative assets		—		5,195			—	$	5,195
	February 29, 2024
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents		133,415		—			—		133,415
Marketable securities:
Corporate bonds		—		10,084			—		10,084
U.S. treasury securities		—		7,135			—		7,135
Derivative assets		—		1,840			—		1,840
Derivative liabilities		—		(391	)		—		(391	)
	August 31, 2024
($ in thousands)	Level 1		Level 2			Level 3		Total
Cash and cash equivalents	$	190,879	$	—		$	—	$	190,879
Derivative assets		—		603			—		603
Derivative liabilities		—		(777	)		—		(777	)

The Company’s investments in marketable securities consist of investment grade corporate bonds and commercial paper. 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), net on the condensed consolidated statements of earnings. As of February 28, 2025, 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 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 February 28, 2025, is included in the table above as derivative assets. Translation gains and losses are recorded within other comprehensive income related to the Company's net investment hedges. Translation gains were $2.6 million and $0.8 million for the three months ended February 28, 2025 and February 29, 2024, respectively, and $4.6 million and $0.2 million for the six months ended February 28, 2025 and February 29, 2024, respectively.

At February 28, 2025, the Company had an outstanding foreign currency forward contract to sell a notional amount of 150.0 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 six months ended February 28, 2025 or February 29, 2024.