Note 4. Fair Value Measurements

9 Months Ended

May 25, 2013

Fair Value, Measurement Inputs, Disclosure [Abstract]

Fair Value, Measurement Inputs, Disclosure [Text Block]

4. Fair Value Measurements

US GAAP establishes a framework for measuring fair value and establishes disclosure requirements about fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

The fair value hierarchy prescribed under US GAAP contains three levels as follows:

  Level 1 –   Quoted prices in active markets for identical assets or liabilities.

  Level 2 –   Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

  Level 3 –   Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar techniques that use significant unobservable inputs.

All financial assets or liabilities that are measured at fair value on a recurring basis (at least annually) have been segregated into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.  The assets or liabilities measured at fair value on a recurring basis are summarized in the tables below (in thousands):

	As of May 25, 2013
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	33,957	$	—	$	—	$	33,957
Total	$	33,957	$	—	$	—	$	33,957

	As of August 25, 2012
	Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents	$	34,978	$	—	$	—	$	34,978
Total	$	34,978	$	—	$	—	$	34,978

The Company’s cash equivalents listed above represents money market securities and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. The Company does not adjust the quoted market price for such financial instruments.