Investments and Fair Value Measurements | 6 Months Ended |
Feb. 28, 2015 |
Fair Value Disclosures [Abstract] | |
Investments and Fair Value Measurements | Investments and Fair Value Measurements |
Assets and Liabilities that are Measured at Fair Value on a Recurring Basis |
We account for fair value measurements in accordance with ASC 820, Fair Value Measurements and Disclosures, which defines fair value, establishes a framework for measurement and expands disclosure about fair value measurement. The fair value hierarchy requires the use of observable market data when available. In instances in which the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. |
|
Cash Equivalents |
The carrying value of cash equivalents approximates fair value as original maturities are less than three months. Our cash equivalents are comprised of money market funds traded in an active market with no restrictions. |
|
The following tables set forth by level within the fair value hierarchy our financial assets that were accounted for at fair value on a recurring basis at February 28, 2015 and August 30, 2014 according to the valuation techniques we used to determine their fair values: |
|
| | | | | | | | | | | | | | | | |
| | | | Fair Value Measurements |
Using Inputs Considered As |
(In thousands) | | Fair Value at | | Level 1 Quoted Prices in Active Markets for Identical Assets | | Level 2 Significant Other | | Level 3 Significant |
February 28, | Observable Inputs | Unobservable Inputs |
2015 | | |
Assets that fund deferred compensation: | | | | | | | | |
Domestic equity funds | | $ | 5,117 | | | $ | 5,117 | | | $ | — | | | $ | — | |
|
International equity funds | | 514 | | | 514 | | | — | | | — | |
|
Fixed income funds | | 247 | | | 247 | | | — | | | — | |
|
Total assets at fair value | | $ | 5,878 | | | $ | 5,878 | | | $ | — | | | $ | — | |
|
|
|
| | | | | | | | | | | | | | | | |
| | | | Fair Value Measurements |
Using Inputs Considered As |
(In thousands) | | Fair Value at | | Level 1 Quoted Prices in Active Markets for Identical Assets | | Level 2 Significant Other | | Level 3 Significant |
August 30, | Observable Inputs | Unobservable Inputs |
2014 | | |
Assets that fund deferred compensation: | | | | | | | | |
Domestic equity funds | | $ | 5,465 | | | $ | 5,465 | | | $ | — | | | $ | — | |
|
International equity funds | | 716 | | | 716 | | | — | | | — | |
|
Fixed income funds | | 242 | | | 242 | | | — | | | — | |
|
Total assets at fair value | | $ | 6,423 | | | $ | 6,423 | | | $ | — | | | $ | — | |
|
|
The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis in the table above that used significant unobservable inputs (Level 3): |
|
| | | | | | | | | | | | | | | | |
| | Three Months Ended | | Six Months Ended |
(In thousands) | | February 28, | | March 1, | | February 28, | | March 1, |
2015 | 2014 | 2015 | 2014 |
Balance at beginning of period | | $ | — | | | $ | — | | | $ | — | | | $ | 2,108 | |
|
Net change included in other comprehensive income | | — | | | — | | | — | | | 242 | |
|
Sales | | — | | | — | | | — | | | (2,350 | ) |
|
Balance at end of period | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
|
The following methods and assumptions were used to estimate the fair value of each class of financial instrument: |
Assets that Fund Deferred Compensation |
Our assets that fund deferred compensation are marketable equity securities measured at fair value using quoted market prices and primarily consist of equity-based mutual funds. They are classified as Level 1 as they are traded in an active market for which closing stock prices are readily available. These securities fund the Executive Share Option Plan (see Note 9), a deferred compensation program, and are presented as other assets in the accompanying balance sheets. |
|
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis |
Our non-financial assets, which include goodwill and property, plant and equipment, are not required to be measured at fair value on a recurring basis. However, if certain triggering events occur, or if an annual impairment test is required, we must evaluate the non-financial asset for impairment. If an impairment did occur, the asset is required to be recorded at the estimated fair value. During the first six months of Fiscal 2015, no impairments were recorded for non-financial assets. |