Fair Value Measurements

3 Months Ended

Feb. 25, 2012

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

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.

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 25, 2012 and August 27, 2011 according to the valuation techniques we used to determine their fair values:

			Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at February 25, 2012		Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable  Inputs		Level 3 Significant Unobservable Inputs
Long-term investments
Student loan ARS	$	9,903	$	—	$	—	$	9,903
Assets that fund deferred compensation
Domestic equity funds	9,384		9,384		—		—
International equity funds	1,283		1,283		—		—
Fixed income	607		607		—		—
Total assets at fair value	$	21,177	$	11,274	$	—	$	9,903

			Fair Value Measurements Using Inputs Considered As
(In thousands)	Fair Value at August 27, 2011		Level 1 Quoted Prices in Active Markets for Identical Assets		Level 2 Significant Other Observable  Inputs		Level 3 Significant Unobservable Inputs
Long-term investments
Student loan ARS	$	10,627	$	—	$	—	$	10,627
Assets that fund deferred compensation
Domestic equity funds	9,362		9,362		—		—
International equity funds	1,441		1,441		—		—
Fixed income	649		649		—		—
Total assets at fair value	$	22,079	$	11,452	$	—	$	10,627

The following table provides a reconciliation between the beginning and ending balances of items measured at fair value on a recurring basis, in the previous table, that used significant unobservable inputs (Level 3):

	Quarter Ended					Six Months Ended
(In thousands)	February 25, 2012		February 26, 2011			February 25, 2012			February 26, 2011
Balance at beginning of period	$	9,753	$	11,146		$	10,627		$	17,785
Transfer to Level 2	—		—			(250		)	(5,250		)
Net change included in other comprehensive income	150		(255		)	26			(444		)
Sales	—		—			(500		)	(1,200		)
Balance at end of period	$	9,903	$	10,891		$	9,903		$	10,891

The following methods and assumptions were used to estimate the fair value of each class of financial instrument:

Cash Equivalents

The carrying value of cash equivalents approximates fair value as maturities are less than three months. Our cash equivalents are comprised of money market funds traded in an active market with no restrictions.

Long-Term and Short-Term Investments

Our debt securities are comprised of ARS. Our long-term ARS related investments (as described in Note 5) are classified as Level 3 as quoted prices were unavailable due to events described in Note 5. Due to limited market information, we utilized a DCF model to derive an estimate of fair value at February 25, 2012. The assumptions used in preparing the DCF model included estimates with respect to the amount and timing of future interest and principal payments, forward projections of the interest rate benchmarks, the probability of full repayment of the principal considering the credit quality and guarantees in place and the rate of return required by investors to own such securities given the current liquidity risk associated with ARS.

Assets that Fund Deferred Compensation

Our assets that fund deferred compensation are marketable equity securities and are 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, a deferred compensation program. The short-term and long-term portions are presented in the accompanying balance sheets as prepaid and other expenses and other assets, respectively.

Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis

Our non-financial assets, which include goodwill, intangible assets, and property 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 second quarter of Fiscal 2012, no impairments were recorded for non-financial assets.