v3.26.3
Fair Value Measurements
 12 Months Ended
Aug. 02, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
We categorize financial assets and liabilities based on the following fair value hierarchy:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.
•Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability.
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. When available, we use unadjusted quoted market prices to measure the fair value and classify such items as Level 1. If quoted market prices are not available, we base fair value upon internally developed models that use current market-based or independently sourced market parameters such as interest rates and currency rates. Included in the fair value of derivative instruments is an adjustment for credit and nonperformance risk.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy:
Fair Value
as of
August 2, 2026		Fair Value Measurements at
August 2, 2026 Using
Fair Value Hierarchy		Fair Value
as of
August 3, 2025		Fair Value Measurements at
August 3, 2025 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Foreign exchange contracts(1)
$6 $— $6 $— $2 $— $2 $— 
Commodity derivative contracts(2)
13 — 10 3 12 1 8 3 
Deferred compensation derivative contracts(3)
1 — 1 — 1 — 1 — 
Deferred compensation investments(4)
1 1 — — 1 1 — — 
Total assets at fair value$21 $1 $17 $3 $16 $2 $11 $3 
Fair Value
as of
August 2, 2026		Fair Value Measurements at
August 2, 2026 Using
Fair Value Hierarchy		Fair Value
as of
August 3, 2025		Fair Value Measurements at
August 3, 2025 Using
Fair Value Hierarchy
(Millions)Level 1Level 2Level 3Level 1Level 2Level 3
Liabilities
Foreign exchange contracts(1)
$— $— $— $— $3 $— $3 $— 
Commodity derivative contracts(2)
7 — 5 2 11 — 7 4 
Deferred compensation obligation(4)
103 103 — — 102 102 — — 
Fixed-to-floating interest rate swaps(5)
26 — 26 — — — — — 
Acquisition-related contingent consideration(6)
20 — — 20 — — — — 
Total liabilities at fair value$156 $103 $31 $22 $116 $102 $10 $4 
______________________________________
(1)Based on observable market transactions of spot currency rates and forward rates.
(2)Level 1 and 2 are based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. Level 3 is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed model.
(3)Based on observable equity and fixed income index swap rates.
(4)Based on the fair value of the participants’ investments.
(5)Based on observable SOFR swap rates.
(6)Determined using a probability-weighted discounted cash flow analysis, based on the estimated timing of cash flows, probability of the amount of contingent consideration and using an appropriate discount rate. See Note 3 for additional information on the acquisition of La Regina.
The following table summarizes the changes in fair value of Level 3 assets and liabilities related to commodity derivative contracts:
(Millions)20262025
Fair value at beginning of year$(1)$5 
Gains (losses)(4)(3)
Settlements6 (3)
Fair value at end of year$1 $(1)
Items Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are measured at fair value on a recurring basis, we are also required to measure certain items at fair value on a nonrecurring basis.
In the fourth quarter of 2026, we recognized an impairment charge of $23 million on plant assets associated with the cost savings initiatives to optimize our supply chain and manufacturing network described in Note 9. The carrying value was reduced to estimated fair value based on expected proceeds. The carrying value was not material.
In the second and third quarters of 2025, we performed interim impairment assessments on certain trademarks in our Snacks segment. In the fourth quarter of 2026, as part of our annual impairment assessment, we recognized impairment charges on the Kettle Brand and Cape Cod trademarks in our Snacks segment. See also Note 7 for additional information on the impairment charges.
Fair value was determined based on unobservable Level 3 inputs. The fair value of trademarks was determined based on discounted cash flow analysis that involves significant management assumptions such as expected revenue growth rates, assumed royalty rates and weighted-average costs of capital.
The following table presents fair value measurements of the trademarks:
May 2026March 2025December 2024
(Millions)Impairment ChargeFair ValueImpairment ChargeFair ValueImpairment ChargeFair Value
Kettle Brand$60 $258 
Cape Cod$57 $130 
Snyder's of Hanover$150 $470 
Late July$11 $47 
Allied brands$15 $28 
Fair Value of Financial Instruments
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. Cash equivalents represent fair value as these highly liquid investments have an original maturity of three months or less. There were $10 million of cash equivalents with fair value based on Level 2 inputs at August 2, 2026. There were no cash equivalents with fair value based on Level 2 inputs at August 3, 2025.
The fair value of short- and long-term debt was $6.566 billion at August 2, 2026, and $6.545 billion at August 3, 2025. The carrying value was $7.137 billion at August 2, 2026, and $6.857 billion at August 3, 2025. The fair value of long-term debt is principally estimated using Level 2 inputs based on quoted market prices or pricing models using current market rates.