Fair Value

6 Months Ended

Aug. 26, 2011

Fair Value

Fair Value

5.  FAIR VALUE

The carrying amounts for many of our financial instruments, including cash and cash equivalents, accounts and notes receivable, accounts and notes payable, short-term borrowings and certain other liabilities, approximate their fair value due to their relatively short maturities. Our short-term investments, foreign exchange forward contracts and long-term investments are measured at fair value on the Condensed Consolidated Balance Sheets.

Our total debt is carried at cost and was $292.7 and $546.8 as of August 26, 2011 and February 25, 2011, respectively. The fair value of our total debt is measured using a discounted cash flow analysis based on current market interest rates for similar types of instruments and was approximately $285 and $555 as of August 26, 2011 and February 25, 2011, respectively.

We periodically use derivative financial instruments to manage exposures to movements in interest rates and foreign exchange rates. The use of these financial instruments modifies the exposure of these risks with the intention to reduce our risk of short-term volatility. We do not use derivatives for speculative or trading purposes.

	August 26, 2011
Fair Value of Financial Instruments	Level 1	Level 2	Level 3	Total
Assets
Cash and cash equivalents	$ 104.4	$ —	$ —	$ 104.4
Corporate debt securities	—	32.4	—	32.4
U.S. agency debt securities	—	16.2	—	16.2
Auction rate securities	—	—	13.4	13.4
U.S. government debt securities	1.5	—	—	1.5
Other investments	3.5	0.3	—	3.8
Canadian asset-backed commercial paper restructuring notes	—	—	4.1	4.1
Foreign exchange forward contracts	—	0.7	—	0.7
	$ 109.4	$ 49.6	$ 17.5	$ 176.5
Liabilities
Foreign exchange forward contracts	$ —	$ (4.8)	$ —	$ (4.8)
	$ —	$ (4.8)	$ —	$ (4.8)
	February 25, 2011
Fair Value of Financial Instruments	Level 1	Level 2	Level 3	Total
Assets
Cash and cash equivalents	$ 142.2	$ —	$ —	$ 142.2
Corporate debt securities	—	36.0	—	36.0
U.S. agency debt securities	—	254.9	—	254.9
Auction rate securities	—	—	13.8	13.8
U.S. government debt securities	58.9	—	—	58.9
Other investments	2.2	1.0	—	3.2
Canadian asset-backed commercial paper restructuring notes	—	—	4.2	4.2
Foreign exchange forward contracts	—	0.5	—	0.5
	$ 203.3	$      292.4	$ 18.0	$ 513.7
Liabilities
Foreign exchange forward contracts	$ —	$ (4.0)	$ —	$ (4.0)
	$ —	$ (4.0)	$ —	$ (4.0)

There were no transfers between Level 1 and Level 2 of the fair value hierarchy for any period presented. Below is a roll-forward of assets and liabilities measured at fair value using Level 3 inputs for the six months ended August 26, 2011:

		Canadian
		Asset-Backed
		Commercial
		Paper
	Auction Rate	Restructuring
Roll-Forward of Fair Value Using Level 3 Inputs	Securities	Notes
Balance as of February 25, 2011	$ 13.8	$ 4.2
Unrealized gain (loss) on investments	(0.2)	—
Other-than-temporary impairments	(0.2)	—
Currency translation adjustment	—	(0.1)
Balance as of August 26, 2011	$ 13.4	$ 4.1

The other-than-temporary impairments recognized on our auction rate securities during the six months ended August 26, 2011 were recognized in Investment income (loss) on the Condensed Consolidated Statement of Operations.