v3.26.1
FAIR VALUE
 6 Months Ended
Feb. 28, 2026
Fair Value Disclosures [Abstract]  
Fair value
NOTE 10. FAIR VALUE

The Company has a fair value hierarchy that prioritizes inputs for valuation techniques into three levels, based on the lowest level input that is significant to the fair value measurement. Levels within the hierarchy are defined within Note 1, Nature of Operations and Summary of Significant Accounting Policies, to the consolidated financial statements in the 2025 Form 10-K. Further discussion regarding the Company's use of derivative instruments is included in Note 9, Derivatives.
The Company presents the fair value of its derivative contracts on a net-by-counterparty basis when a legal right to offset exists under an enforceable netting agreement. The following table summarizes information regarding the Company's financial assets and financial liabilities that were measured at fair value on a recurring basis:
  Fair Value Measurements at Reporting Date Using
(in thousands)TotalLevel 1Level 2Level 3
As of February 28, 2026:
Assets:
Investment deposit accounts(1)
$355,109 $355,109 $— $— 
Commodity derivative assets57,182 1,001 — 56,181 
Foreign exchange derivative assets3,936 — 3,936 — 
Liabilities:
Commodity derivative liabilities6,180 6,180 — — 
Foreign exchange derivative liabilities873 — 873 — 
As of August 31, 2025:
Assets:
Investment deposit accounts(1)
$902,106 $902,106 $— $— 
Commodity derivative assets58,901 5,458 — 53,443 
Foreign exchange derivative assets4,809 — 4,809 — 
Liabilities:
Commodity derivative liabilities282 282 — — 
Foreign exchange derivative liabilities821 — 821 — 
__________________________________
(1) Investment deposit accounts are short-term in nature, and their value is based on principal plus interest.

The fair value of the Level 3 commodity derivatives is estimated using internally developed discounted cash flow models that rely on significant unobservable inputs. The Company forecasts future energy rates using a range of historical prices (the "floating rate"), which is the only significant unobservable input used in the Company's discounted cash flow models. Significant variations in the floating rate could materially impact the fair value measurement. The following table summarizes the range of floating rates used to measure the fair value of the Level 3 commodity derivatives as of February 28, 2026 and August 31, 2025, which are applied uniformly across each of the Company's Level 3 commodity derivatives:
Floating rate (PLN)
LowHighAverage
February 28, 2026346 628 450 
August 31, 2025346 563 436 
Below is a reconciliation of the beginning and ending balances of the Level 3 commodity derivatives recognized in the condensed consolidated statements of comprehensive income (loss). Amounts presented are before income taxes. The fluctuation in energy rates over time may cause volatility in the fair value estimate and was the primary reason for unrealized gains and losses in OCI for the three and six months ended February 28, 2026 and 2025.                                     
(in thousands)Three Months Ended February 28, 2026
Balance, December 1, 2025$52,375 
Unrealized holding gain before reclassification(1)
8,537 
Reclassification for gain included in net earnings(2)
(4,731)
Balance, February 28, 2026$56,181 
(in thousands)Six Months Ended February 28, 2026
Balance, September 1, 2025$53,443 
Unrealized holding gain before reclassification(1)
10,988 
Reclassification for gain included in net earnings(2)
(8,250)
Balance, February 28, 2026$56,181 
(in thousands)Three Months Ended February 28, 2025
Balance, December 1, 2024$33,303 
Unrealized holding gain before reclassification(1)
25,482 
Reclassification for gain included in net earnings(2)
(3,427)
Balance, February 28, 2025$55,358 
(in thousands)Six Months Ended February 28, 2025
Balance, September 1, 2024$38,029 
Unrealized holding gain before reclassification(1)
23,791 
Reclassification for gain included in net loss(2)
(6,462)
Balance, February 28, 2025$55,358 
__________________________________
(1) Unrealized holding gain, net of foreign currency translation, less amounts reclassified, are included in net unrealized holding gain (loss) on derivatives in the condensed consolidated statements of comprehensive income (loss).
(2) Realized gains included in net earnings (loss) are recorded in cost of goods sold in the condensed consolidated statements of earnings (loss).

There were no material non-recurring fair value remeasurements during the three or six months ended February 28, 2026 or 2025.

The carrying values of the Company's short-term items, including documentary letters of credit and notes payable, approximate fair value.

The carrying value and fair value of the Company's long-term debt, including current maturities, excluding other borrowings and finance leases, was $3.2 billion as of February 28, 2026, and $1.2 billion and $1.1 billion, respectively, as of August 31, 2025. The fair values were estimated based on Level 2 of the fair value hierarchy using indicated market values. The Company's other borrowings contain variable interest rates, so their carrying values approximate fair values.