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Investments and Fair Value Measurements | 6 Months Ended
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Feb. 24, 2024
Fair Value Disclosures [Abstract] |
Investments and Fair Value Measurements | Investments and Fair Value Measurements In determining the fair value of financial assets and liabilities, we utilize market data or other assumptions that we believe market participants would use in pricing the asset or liability in the principal or most advantageous market and adjust for non-performance and/or other risks associated with us as well as counterparties, as appropriate. Assets and liabilities measured at fair value are classified using the following hierarchy, which is based upon the transparency of inputs to the valuation as of the measurement date: Level 1 — Unadjusted quoted prices which are available in active markets for identical assets or liabilities accessible at the measurement date. Level 2 — Inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. Level 3 — Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Assets and Liabilities that are Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured at fair value on a recurring basis are as follows:
| Fair Value at |  | Fair Value Hierarchy
(in millions) | February 24, 2024 |  | Level 1 |  | Level 2 |  | Level 3
Assets that fund deferred compensation |  |  |  |  |  |  |
Domestic equity funds | $ | 1.9 |  |  | $ | 1.9 |  |  | $ | — |  |  | $ | — |
International equity funds | 0.1 |  |  | 0.1 |  |  | — |  |  | — |
Total assets at fair value | $ | 2.0 |  |  | $ | 2.0 |  |  | $ | — |  |  | $ | — |
Contingent consideration |  |  |  |  |  |  |
Earnout liability | $ | 19.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 19.5 |
Total liabilities at fair value | $ | 19.5 |  |  | $ | — |  |  | $ | — |  |  | $ | 19.5 |
| Fair Value at |  | Fair Value Hierarchy
(in millions) | August 26, 2023 |  | Level 1 |  | Level 2 |  | Level 3
Assets that fund deferred compensation |  |  |  |  |  |  |
Domestic equity funds | $ | 1.7 |  |  | $ | 1.7 |  |  | $ | — |  |  | $ | — |
International equity funds | 0.1 |  |  | 0.1 |  |  | — |  |  | — |
Total assets at fair value | $ | 1.8 |  |  | $ | 1.8 |  |  | $ | — |  |  | $ | — |
Contingent consideration |  |  |  |  |  |  |
Earnout liability | $ | 18.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 18.4 |
Total liabilities at fair value | $ | 18.4 |  |  | $ | — |  |  | $ | — |  |  | $ | 18.4 |
Assets that Fund Deferred Compensation Our assets that fund deferred compensation are marketable equity securities measured at fair value using quoted market prices and primarily consist of equity-based mutual funds. These securities, used to fund the Executive Deferred Compensation Plan, are classified as Level 1 as they are traded in an active market for which closing stock prices are readily available. Refer to Note 11 in the Notes to Consolidated Financial Statements included in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended August 26, 2023 for additional information regarding these plans. The proportion of the assets that will fund the deferred compensation payments within a year are included in prepaid expenses and other current assets on the Consolidated Balance Sheets. The remaining assets are classified as non-current and are included in other assets on the Consolidated Balance Sheets. Contingent Consideration Contingent consideration represents the earnout liability related to the Barletta acquisition and is valued using a probability-weighted scenario analysis of projected gross profit results and discounted at a risk-free rate. The contingent consideration is classified as Level 3. Actual gross profit results may differ significantly from those used in the estimate above, which may affect future payments. Changes in future payments will be reflected in future operating results as they occur. As of February 24, 2024 and August 26, 2023, the entire earnout liability was included in other current liabilities on the Consolidated Balance Sheets. Refer to Note 2 in the Notes to Consolidated Financial Statements included in Item 8 of Part II of our Annual Report on Form 10-K for the fiscal year ended August 26, 2023 for additional information regarding the contingent consideration earnout provisions. The following table provides a reconciliation of the beginning and ending balances of the contingent consideration:
| Three Months Ended |  | Six Months Ended
(in millions) | February 24, 2024 |  | February 25, 2023 |  | February 24, 2024 |  | February 25, 2023
Beginning fair value - contingent consideration | $ | 19.2 |  |  | $ | 40.2 |  |  | $ | 18.4 |  |  | $ | 39.8 |
Fair value adjustments | 0.3 |  |  | 1.6 |  |  | 1.1 |  |  | 2.0 |
Ending fair value - contingent consideration | $ | 19.5 |  |  | $ | 41.8 |  |  | $ | 19.5 |  |  | $ | 41.8 |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis Certain financial instruments are measured at fair value on a nonrecurring basis. These assets primarily include goodwill, intangible assets, property, plant and equipment, and right-of-use lease assets. These assets were originally recognized at amounts equal to the fair value determined at date of acquisition or purchase. If certain triggering events occur, or if an annual impairment test is required, we will evaluate the non-financial asset for impairment. If an impairment has occurred, the asset will be written down to its current estimated fair value. No impairments were recorded for non-financial assets in the six months ended February 24, 2024 or February 25, 2023. Assets and Liabilities Not Measured at Fair Value Certain financial instruments are not measured at fair value but are recorded at carrying amounts approximating fair value based on their short-term nature. These financial instruments include cash and cash equivalents, receivables, accounts payable, and other payables. If these instruments were measured at fair value in the financial statements, they would be classified as Level 1 in the fair value hierarchy. Long-term debt is recorded at amortized cost but measured at fair value for disclosure purposes. The fair value of our long-term debt was determined using current quoted prices in active markets for our publicly traded debt obligations, which is classified as Level 1 in the fair value hierarchy. See Note 9 in the Notes to Consolidated Financial Statements included in Item 1 of Part I of this Quarterly Report on Form 10-Q for the fair value of our long-term debt.

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