Fair Value Measurements (Tables)

12 Months Ended

Aug. 31, 2019

Fair Value of Derivative Instruments Located on Consolidated Balance Sheets Utilized for Foreign Currency Risk Management Purposes

The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated:



(in thousands)	Fair Value Hierarchy		August 31, 2019		August 31, 2018
Assets:
Cash and cash equivalents:
Cash equivalents	Level 1	⁽¹⁾	$	27,804	$	21,412
Prepaid expenses and other current assets:
Short-term investments	Level 1		14,088		—
Deferred purchase price receivables(Note 2)	Level 3	⁽²⁾	—		533,113
Forward foreign exchange contracts:
Derivatives designated as hedging instruments (Note 13)	Level 2	⁽³⁾	904		225
Derivatives not designated as hedging instruments (Note 13)	Level 2	⁽³⁾	6,878		10,125
Other assets:
Senior Non-Convertible Preferred Stock	Level 3	⁽⁴⁾	33,102		47,300
Liabilities:
Accrued expenses:
Forward foreign exchange contracts:
Derivatives designated as hedging instruments (Note 13)	Level 2	⁽³⁾	$	15,999	$	13,364
Derivatives not designated as hedging instruments (Note 13)	Level 2	⁽³⁾	55,391		46,171
Interest rate swaps:
Derivatives designated as hedging instruments (Note 13)	Level 2	⁽⁵⁾	5,918		117
Other liabilities:
Forward interest rate swaps:
Derivatives designated as hedging instruments (Note 13)	Level 2	⁽⁵⁾	35,045		—


⁽¹⁾	Consist of investments that are readily convertible to cash with original maturities of 90 days or less.


⁽²⁾	Recorded initially at fair value using unobservable inputs, determined primarily using discounted cash flows, and due to its credit quality and short-term maturity, the fair value approximated book values. The unobservable inputs consist of estimated credit losses and estimated discount rates, which both have an immaterial impact on the fair value calculation.


⁽³⁾	The Company’s forward foreign exchange contracts are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers.

⁽⁴⁾

During the fourth quarter of fiscal year 2019, the Company exchanged its investment in the Senior Non-Convertible Preferred Stock of iQor Holdings, Inc. (“iQor”) in association with iQor’s previously announced sale of its international logistics and product service assets. Prior to the restructuring, the Senior Non-Convertible Preferred Stock had a face value of $50.0 million, accumulated dividends at an annual rate of 8 percent and was redeemable on March 31, 2023 or upon a change in control. The restructured Senior Non-Convertible Preferred Stock has a face value of $55.0 million and is redeemable at iQor’s option or upon change of control for $55.0 million until December 31, 2023, $65.0 million during calendar year 2024 and is mandatorily redeemable for $75.0 million on April 1, 2025.

As a result of the restructuring, the Company recognized a restructuring of securities loss of $29.6 million, which primarily consisted of a credit loss. The credit loss was estimated utilizing a probability-weighted discounted cash flow model incorporating the concessions and modifications made as part of the restructuring, discounted at the loan's effective interest rate. The Senior Non-Convertible Preferred Stock is valued each reporting period using unobservable inputs based on a discounted cash flow model and is classified as an available for sale debt security with any unrealized loss recorded to AOCI. As of August 31, 2019, the unobservable inputs have an immaterial impact on the fair value calculation. As of August 31, 2019, the amortized cost basis approximates fair value.


⁽⁵⁾	Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads.

Carrying Amounts and Fair Values of Notes Payable and Long-term Debt

The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated:



			August 31, 2019				August 31, 2018
(in thousands)	Fair Value Hierarchy		Carrying Amount		Fair Value		Carrying Amount		Fair Value
Notes payable and long-term debt: (Note 8)
5.625% Senior Notes	Level 2	⁽¹⁾	$	398,886	$	416,000	$	397,995	$	415,704
4.700% Senior Notes	Level 2	⁽¹⁾	498,004		525,890		497,350		503,545
4.900% Senior Notes	Level 3	⁽²⁾	299,057		318,704		298,814		306,535
3.950% Senior Notes	Level 2	⁽¹⁾	494,825		509,845		494,208		476,010


⁽¹⁾	The fair value estimates are based upon observable market data.


⁽²⁾	This fair value estimate is based on the Company’s indicative borrowing cost derived from discounted cash flows.