Derivative Instruments and Hedging Activities

3 Months Ended

Nov. 28, 2020

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

6. Derivative Instruments and Hedging Activities

As of November 28, 2020, the Company had forward contracts with a notional value of approximately $4.0 million CAD outstanding and recorded the fair value of the contracts of a nominal amount in other long-term assets and  prepaid expenses and other current assets with a corresponding nominal gain in accumulated other comprehensive loss, which was recorded net of tax. During the thirteen weeks ended November 28, 2020, the Company reclassified a nominal amount 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 November 28, 2020 is expected to be reclassified to revenues prior to its maturity on February 25, 2022.