Marketable Debt Securities

12 Months Ended

Aug. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Marketable Debt Securities

Note F – Marketable Debt Securities

The Company’s basis for determining the cost of a security sold is the “Specific Identification Model.” Unrealized gains (losses) on marketable debt securities are recorded in Accumulated Other Comprehensive Loss. The Company’s available-for-sale marketable debt securities consisted of the following:

	August 31, 2019
(in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities	$	36,998	$	29	$	(19	)	$	37,008
Government bonds		45,741		763		—			46,504
Mortgage-backed securities		2,089		2		(15	)		2,076
Asset-backed securities and other		53,345		—		(7	)		53,338
	$	138,173	$	794	$	(41	)	$	138,926

	August 25, 2018
(in thousands)	Amortized Cost Basis		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Corporate debt securities	$	50,306	$	—	$	(684	)	$	49,622
Government bonds		28,777		—		(173	)		28,604
Mortgage-backed securities		3,248		—		(90	)		3,158
Asset-backed securities and other		53,445		—		(153	)		53,292
	$	135,776	$	—	$	(1,100	)	$	134,676

The marketable debt securities held at August 31, 2019, had effective maturities ranging from less than one year to approximately three years. The Company did not realize any material gains or losses on its marketable debt securities during fiscal 2019, 2018 or 2017.

The Company holds 48 securities that are in an unrealized loss position of approximately $41 thousand at August 31, 2019. The Company has the intent and ability to hold these investments until recovery of fair value or maturity, and does not deem the investments to be impaired on an other than temporary basis. In evaluating whether the securities are deemed to be impaired on an other than temporary basis, the Company considers factors such as the duration and severity of the loss position, the credit worthiness of the investee, the term to maturity and its intent and ability to hold the investments until maturity or until recovery of fair value.

Included above in total marketable debt securities are $89.2 million and $85.6 million of marketable debt securities transferred by the Company’s insurance captive to a trust account to secure its obligations to an insurance company related to future workers’ compensation and casualty losses as of August 31, 2019 and August 25, 2018, respectively.