v3.25.4
Fair Value Measurements
 3 Months Ended
Nov. 30, 2025
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, 2025, November 30, 2024, and August 31, 2025. There were no transfers between any levels for the periods presented.

 

 

November 30, 2025

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

199,622

 

 

$

—

 

 

$

—

 

 

$

199,622

 

Derivative liabilities

 

 

—

 

 

 

(12,994

)

 

 

—

 

 

 

(12,994

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

November 30, 2024

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

194,066

 

 

$

—

 

 

$

—

 

 

$

194,066

 

Derivative assets

 

 

—

 

 

 

1,897

 

 

 

—

 

 

 

1,897

 

Derivative liabilities

 

 

—

 

 

 

(156

)

 

 

—

 

 

 

(156

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

August 31, 2025

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

250,575

 

 

$

—

 

 

$

—

 

 

$

250,575

 

Derivative liabilities

 

 

—

 

 

 

(14,622

)

 

 

—

 

 

 

(14,622

)

 

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 third quarter of fiscal 2026 and the first quarter of fiscal 2028 with a total notional amount of $175.0 million, or €163.2 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, net on the condensed consolidated balance sheets and the fair value of these contracts is recorded within other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. The fair value of these contracts as of November 30, 2025, is included in the table above as derivative liabilities. During the three months ended November 30, 2025 and 2024, the Company recognized translation gains of $1.2 million and $1.9 million, respectively, within other comprehensive income related to its net investment hedges.

At November 30, 2025, the Company had an outstanding foreign currency forward contract to sell a notional amount of 95.5 million South African rand at fixed prices to settle during the next fiscal quarter. This foreign currency forward contract does not qualify as a hedge 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, 2025 or 2024.