v3.26.3
Note 12 - Fair Value Measurements
 9 Months Ended
Aug. 29, 2026
Notes to Financial Statements  
Fair Value Disclosures [Text Block]

Note 12: Fair Value Measurements

 

Overview

 

Estimates of fair value for financial assets and liabilities are based on the framework established in the accounting guidance for fair value measurements. The framework defines fair value, provides guidance for measuring fair value and requires certain disclosures. The framework discusses valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). The framework utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

 

 

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Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

 

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Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

 

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Level 3: Unobservable inputs that reflect management’s assumptions, and include situations where there is little, if any, market activity for the asset or liability.

 

Balances Measured at Fair Value on a Recurring Basis

 

The following table presents information about our financial assets and liabilities that are measured at fair value on a recurring basis as of August 29, 2026 and November 29, 2025, and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value.

 

  

August 29,

  

Fair Value Measurements Using:

 

Description

 

2026

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Marketable securities

 $6,948  $6,948  $-  $- 

Foreign exchange contract assets

  159   -   159   - 

Interest rate swaps, cash flow hedge assets

  4,140   -   4,140   - 

Forward exchange contract related to a pending acquisition

  19,713   -   19,713   - 
                 

Liabilities:

                

Foreign exchange contract liabilities

 $14  $-  $14  $- 

Interest rate swaps, fair value hedge liabilities

  20,932   -   20,932   - 

Net investment hedge liabilities

  112,180   -   112,180   - 

Contingent consideration and holdback liabilities

  25,725   -   -   25,725 

 

  

  

November 29,

  

Fair Value Measurements Using:

 

Description

 

2025

  

Level 1

  

Level 2

  

Level 3

 

Assets:

                

Marketable securities

 $4,352  $4,352  $-  $- 

Foreign exchange contract assets

  4,841   -   4,841   - 
                 

Liabilities:

                

Foreign exchange contract liabilities

 $635  $-  $635  $- 

Interest rate swaps, cash flow hedge liabilities

  8,498   -   8,498   - 

Interest rate swaps, fair value hedge liabilities

  20,481   -   20,481   - 

Net investment hedge liabilities

  113,144   -   113,144   - 

Holdback liability

  33,578   -   -   33,578 

 

As of August 29, 2026, the fair value of our Level 3 liabilities includes a holdback liability of $22,521, based on a discounted cash flow model, related to the acquisition of GEM and Medifill. It also includes a $1,271 holdback liability and a $1,933 contingent consideration liability both related to the acquisition of Dongguan Nako. Adjustments to the fair value of these liabilities are recorded to interest expense in the Statement of Income. See Note 2 for further discussion regarding our acquisitions. The following table provides details of this Level 3 liability.

 

  

Amounts

 

Balance at November 29, 2025

 $33,578 

Payment of holdback liability

  (11,596)

Additions

  3,207 

Interest

  485 

Foreign currency translation adjustment

  51 

Balance at August 29, 2026

 $25,725 

 

Balances Measured at Fair Value on a Nonrecurring Basis

 

We measure certain assets and liabilities at fair value on a nonrecurring basis. These assets include intangible assets acquired in an acquisition. The identified intangible assets of customer relationships, technology and tradenames acquired in connection with our acquisitions were measured using unobservable (Level 3) inputs. The fair value of the intangible assets was calculated using either the income or cost approach. Significant inputs include estimated revenue growth rates, gross margins, operating expenses, attrition rate, royalty rate and discount rate.  

 

See Note 2 for further discussion regarding our acquisitions.

 

Balances Disclosed at Fair Value

 

Long-term debt had an estimated fair value of $2,076,102 and $2,041,062 as of August 29, 2026 and November 29, 2025, respectively. The fair value of long-term debt is based on quoted market prices for the same or similar issues or on the current rates offered for debt of similar maturities. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange.