Fair Value (Tables)
 3 Months Ended
May 24, 2019
Fair Value Disclosures [Abstract]  
Fair Value
6.
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 foreign exchange forward contracts and long-term investments are measured at fair value in the Condensed Consolidated Balance Sheets.
Our total debt is carried at cost and was $486.6 and $487.0 as of May 24, 2019 and February 22, 2019, 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 $511 and $492 as of May 24, 2019 and February 22, 2019, respectively. The estimation of the fair value of our total debt is based on Level 2 fair value measurements.
We periodically use derivative financial instruments to manage exposures to movements in foreign exchange rates and interest 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.
Assets and liabilities measured at fair value in the Consolidated Balance Sheets as of May 24, 2019 and February 22, 2019 are summarized below:
 
May 24, 2019
Fair Value of Financial Instruments
Level 1
Level 2
Level 3
Total
Assets:
 

 
 

 
 

 
 

 
Cash and cash equivalents
$
152.7

 
$
—

 
$
—

 
$
152.7

 
Restricted cash
4.9

 
—

 
—

 
4.9

 
Foreign exchange forward contracts
—

 
2.7

 
—

 
2.7

 
Auction rate securities
—

 
—

 
4.0

 
4.0

 
 
$
157.6

 
$
2.7

 
$
4.0

 
$
164.3

 
Liabilities:
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
$
—

 
$
(0.3
)
 
$
—

 
$
(0.3
)
 
 
$
—

 
$
(0.3
)
 
$
—

 
$
(0.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
February 22, 2019
Fair Value of Financial Instruments
Level 1
Level 2
Level 3
Total
Assets:
 

 
 

 
 

 
 

 
Cash and cash equivalents
$
261.3

 
$
—

 
$
—

 
$
261.3

 
Restricted cash
3.5

 
—

 
—

 
3.5

 
Foreign exchange forward contracts
—

 
3.9

 
—

 
3.9

 
Auction rate securities
—

 
—

 
3.9

 
3.9

 
 
$
264.8

 
$
3.9

 
$
3.9

 
$
272.6

 
Liabilities:
 

 
 

 
 

 
 

 
Foreign exchange forward contracts
$
—

 
$
(0.5
)
 
$
—

 
$
(0.5
)
 
 
$
—

 
$
(0.5
)
 
$
—

 
$
(0.5
)
 


Below is a roll-forward of assets and liabilities measured at fair value using Level 3 inputs for the three months ended May 24, 2019:
Roll-Forward of Fair Value Using Level 3 Inputs
Auction Rate Securities
Balance as of February 22, 2019
$
3.9

 
Unrealized gain on investments
0.1

 
Balance as of May 24, 2019
$
4.0

 
Schedule of Fair Value of Assets and Liabilities Measured on a Recurring Basis
Assets and liabilities measured at fair value in the Consolidated Balance Sheets as of May 24, 2019 and February 22, 2019 are summarized below:
 
May 24, 2019
Fair Value of Financial Instruments
Level 1
Level 2
Level 3
Total
Assets:
 

 
 

 
 

 
 

 
Cash and cash equivalents
$
152.7

 
$
—

 
$
—

 
$
152.7

 
Restricted cash
4.9

 
—

 
—

 
4.9

 
Foreign exchange forward contracts
—

 
2.7

 
—

 
2.7

 
Auction rate securities
—

 
—

 
4.0

 
4.0

 
 
$
157.6

 
$
2.7

 
$
4.0

 
$
164.3

 
Liabilities:
 
 
 
 
 
 
 
 
Foreign exchange forward contracts
$
—

 
$
(0.3
)
 
$
—

 
$
(0.3
)
 
 
$
—

 
$
(0.3
)
 
$
—

 
$
(0.3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
February 22, 2019
Fair Value of Financial Instruments
Level 1
Level 2
Level 3
Total
Assets:
 

 
 

 
 

 
 

 
Cash and cash equivalents
$
261.3

 
$
—

 
$
—

 
$
261.3

 
Restricted cash
3.5

 
—

 
—

 
3.5

 
Foreign exchange forward contracts
—

 
3.9

 
—

 
3.9

 
Auction rate securities
—

 
—

 
3.9

 
3.9

 
 
$
264.8

 
$
3.9

 
$
3.9

 
$
272.6

 
Liabilities:
 

 
 

 
 

 
 

 
Foreign exchange forward contracts
$
—

 
$
(0.5
)
 
$
—

 
$
(0.5
)
 
 
$
—

 
$
(0.5
)
 
$
—

 
$
(0.5
)
 
Rollforward of Assets with Unobservable Inputs Measured at Fair Value on Recurring Basis
Below is a roll-forward of assets and liabilities measured at fair value using Level 3 inputs for the three months ended May 24, 2019:
Roll-Forward of Fair Value Using Level 3 Inputs
Auction Rate Securities
Balance as of February 22, 2019
$
3.9

 
Unrealized gain on investments
0.1

 
Balance as of May 24, 2019
$
4.0