Fair Value Measurement

9 Months Ended

May 06, 2012

Fair Value Measurement

Note 3—Fair Value Measurement

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present information as of May 6, 2012, and August 28, 2011, respectively, regarding the Company’s financial assets and financial liabilities that are measured at fair value on a recurring basis, and indicate the level within the fair value hierarchy reflecting the valuation techniques utilized to determine such fair value. As of these dates, the Company’s holdings of level 3 financial assets and liabilities were immaterial.

May 6, 2012:	Level 1		Level 2
Money market mutual funds(1)	$	113	$	0
Investment in U.S. government and agency securities(2)		0		940
Investment in corporate notes and bonds(3)		0		69
Investment in FDIC-insured corporate bonds		0		101
Investment in asset and mortgage-backed securities		0		9
Forward foreign exchange contracts, in asset position(4)		0		0
Forward foreign exchange contracts, in (liability) position(4)		0		(3	)
Total	$	113	$	1,116

August 28, 2011:	Level 1		Level 2
Money market mutual funds(1)	$	200	$	0
Investment in U.S. government and agency securities(5)		0		1,177
Investment in corporate notes and bonds		0		7
Investment in FDIC-insured corporate bonds		0		209
Investment in asset and mortgage-backed securities		0		12
Forward foreign exchange contracts, in asset position(4)		0		1
Forward foreign exchange contracts, in (liability) position(4)		0		(2	)
Total	$	200	$	1,404

⁽¹⁾ Included in cash and cash equivalents in the accompanying condensed consolidated balance sheets.

⁽²⁾  $28 and $912 included in cash and cash equivalents and short-term investments, respectively, in the accompanying condensed consolidated balance sheets.

⁽³⁾  $10 and $59 included in cash and cash equivalents and short-term investments, respectively, in the accompanying condensed consolidated balance sheets.

⁽⁴⁾  The asset and the liability values are included in deferred income taxes and other current assets and other current liabilities, respectively, in the accompanying condensed consolidated balance sheets. See Note 1 for additional information on derivative instruments.

⁽⁵⁾  $73 and $1,104 included in cash and cash equivalents and short-term investments, respectively, in the accompanying condensed consolidated balance sheets.

Changes in fair value, including net transfers, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the third quarter and first thirty-six weeks of 2012 and 2011 were immaterial. The Company reports transfers in and out of Levels 1, 2, and 3, as applicable, using the fair value of the individual securities as of the beginning of the reporting period in which the transfer(s) occurred. There were no transfers in or out of Level 1, 2, or 3 during the third quarter and first thirty-six weeks of 2012 and 2011.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

Financial assets measured at fair value on a nonrecurring basis include held-to-maturity investments that are carried at amortized cost and are not remeasured to fair value on a recurring basis. There were no fair value adjustments to these financial assets measured during the third quarter and first thirty-six weeks of 2012 and 2011.

Nonfinancial assets measured at fair value on a nonrecurring basis include items such as long-lived assets that are measured at fair value resulting from an impairment, if deemed necessary. Fair value adjustments to these nonfinancial assets and liabilities during the third quarter and first thirty-six weeks of 2012 and 2011 were immaterial.