Derivative Instruments and Hedging Activities

6 Months Ended

Feb. 29, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

6. Derivative Instruments and Hedging Activities

As of February 29, 2020, the Company had forward contracts with a notional value of approximately $7.1 million CAD outstanding and recorded the fair value of the contracts of $0.1 million in other long-term assets and $0.2 million in prepaid expenses and other current assets with a corresponding decrease in accumulated other comprehensive loss of $0.2 million, which was recorded net of tax. During the thirteen and twenty-six weeks ended February 29, 2020, the Company reclassified a nominal value and $0.1 million, respectively from accumulated other comprehensive income to revenue, related to the derivative financial instruments. The gain on these forward contracts that resulted in a decrease to accumulated other comprehensive loss as of February 29, 2020 is expected to be reclassified to revenues prior to its maturity on February 25, 2022.