v3.26.1
Fair Value Measurements
 9 Months Ended
May 31, 2026
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 May 31, 2026, May 31, 2025, and August 31, 2025. There were no transfers between any levels for the periods presented.

 

 

May 31, 2026

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

154,760

 

 

$

—

 

 

$

—

 

 

$

154,760

 

Derivative liabilities

 

 

—

 

 

 

(12,739

)

 

 

—

 

 

 

(12,739

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

May 31, 2025

 

($ in thousands)

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Cash and cash equivalents

 

$

196,117

 

 

$

—

 

 

$

—

 

 

$

196,117

 

Marketable securities

 

 

—

 

 

 

14,676

 

 

 

—

 

 

 

14,676

 

Derivative liabilities

 

 

—

 

 

 

(10,325

)

 

 

—

 

 

 

(10,325

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 first quarter of fiscal 2027 and the third quarter of fiscal 2028. Additionally, during the third quarter of fiscal 2026, the Company entered into a forward contract that matures during the fourth quarter of fiscal 2026. The swaps and forward have a total notional amount of $200.0 million, or €183.2 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 on the condensed consolidated balance sheets and the fair value of these contracts is recorded within other current assets, other current liabilities and other noncurrent liabilities on the condensed consolidated balance sheets. The fair value of these contracts as of May 31, 2026 is included in the table above as derivative liabilities. Translation gains and losses are recorded within other comprehensive income (loss) related to the Company's net investment hedges. For the three months ended May 31, 2026 and 2025, translation gains were $1.6 million and translation losses were $11.9 million, respectively. For the nine months ended May 31, 2026 and 2025, translation gains were $0.1 million and translation losses were $7.3 million, respectively.

At May 31, 2026, the Company had an outstanding foreign currency forward contract to sell a notional amount of 95.4 million South African rand at fixed prices to settle during the next fiscal quarter. This 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 or nine months ended May 31, 2026 or 2025.