v3.26.3
Fair Value Measurements
 3 Months Ended
Aug. 29, 2026
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The Company's financial instruments consist of cash equivalents, accounts and notes receivable, deferred compensation plans, accounts payable, debt, interest rate swaps, and foreign currency exchange contracts. The Company's financial instruments, other than long-term debt, are recorded at fair value.
The carrying value and fair value of the Company's total debt is as follows for the periods indicated:
(In millions)
August 29, 2026
May 30, 2026
Carrying value
$
1,307.4 
$
1,294.6 
Fair value
$
1,317.5 
$
1,294.7 
The following describes the methods the Company uses to estimate the fair value of financial assets and liabilities recorded in net earnings, which have not significantly changed in the current period:
Cash and cash equivalents — The Company invests excess cash in short term investments in the form of money market funds, which are valued using net asset value ("NAV").
Deferred compensation plan — The Company's deferred compensation plan primarily includes various domestic and international equity and fixed income mutual funds that are recorded at fair value using quoted prices for similar securities.
Foreign currency exchange contracts — The Company's foreign currency exchange contracts are valued using an approach based on foreign currency exchange rates obtained from active markets. The estimated fair value of forward currency exchange contracts is based on month-end spot rates as adjusted by market-based current activity. These forward contracts are not designated as hedging instruments.
The following table sets forth financial assets and liabilities measured at fair value through net income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of August 29, 2026, and May 30, 2026.
(In millions)
August 29, 2026
May 30, 2026
Financial Assets
NAV
Quoted prices with other observable inputs (Level 2)
NAV
Quoted prices with other observable inputs (Level 2)
Cash equivalents:
Money market funds
$
5.5 
$
— 
$
8.4 
$
— 
Other current assets:
Foreign currency forward contracts
— 
0.4 
— 
0.5 
Other noncurrent assets:
Deferred compensation plan
— 
29.0 
— 
27.3 
Total
$
5.5 
$
29.4 
$
8.4 
$
27.8 
Financial Liabilities
Other accrued liabilities:
Foreign currency forward contracts
$
— 
$
0.5 
$
— 
$
0.7 
Total
$
— 
$
0.5 
$
— 
$
0.7 
The following describes the methods the Company uses to estimate the fair value of financial assets and liabilities recorded in other comprehensive income, which have not significantly changed in the current period:
Interest rate swap agreements — The value of the Company's interest rate swap agreements are determined using a market approach based on rates obtained from active markets. The interest rate swap agreements are designated as cash flow hedging instruments.
The following table sets forth financial assets and liabilities measured at fair value through other comprehensive income and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of August 29, 2026, and May 30, 2026.
(In millions)
August 29, 2026
May 30, 2026
Financial Assets
Balance Sheet Location
Quoted Prices with Other Observable Inputs (Level 2)
Quoted Prices with Other Observable Inputs (Level 2)
Interest rate swap agreement
Other noncurrent assets
$
16.8 
$
16.7 
Total
$
16.8 
$
16.7 
Financial Liabilities
Interest rate swap agreement
Other liabilities
$
— 
$
0.5 
Total
$
— 
$
0.5 
The cost of securities sold is based on the specific identification method; realized gains and losses resulting from such sales are included in the Condensed Consolidated Statements of Comprehensive Income within Other expense (income), net. The Company views its equity and fixed income mutual funds as available for use in its current operations. Accordingly, the investments are recorded within Current Assets within the Condensed Consolidated Balance Sheets.
Derivative Instruments and Hedging Activities
Foreign Currency Forward Contracts
The Company transacts business in various foreign currencies and has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. Under this program, the Company's strategy is to have increases or decreases in our foreign currency exposures offset by gains or losses on the foreign currency forward contracts to mitigate the risks and volatility associated with foreign currency transaction gains or losses. These foreign currency exposures typically arise from net liability or asset exposures in non-functional currencies on the balance sheets of our foreign subsidiaries. These foreign currency forward contracts generally settle within 30 days and are not used for trading purposes.
These forward contracts are not designated as hedging instruments. Accordingly, we record the fair value of these contracts as of the end of the reporting period in the Condensed Consolidated Balance Sheets with changes in fair value recorded within the Condensed Consolidated Statements of Comprehensive Income. The balance sheet classification for the fair values of these forward contracts is Other current assets for unrealized gains and Other accrued liabilities for unrealized losses. The Condensed Consolidated Statements of Comprehensive Income classification for the fair values of these forward contracts is to Other (income) expense, net, for both realized and unrealized gains and losses.
Interest Rate Swaps
The Company uses interest rate swap agreements designated as cash flow hedges to manage its exposure to variability in cash flows associated with variable-rate debt. The Company's interest rate swaps continue to qualify for cash flow hedge accounting as of August 29, 2026.
As of August 29, 2026, the Company had interest rate swap agreements with an aggregate notional amount outstanding of $1.15 billion, including a $200.0 million forward-starting swap that becomes effective on January 29, 2027.
(In millions)
Notional Amount
Forward Start Date
Termination Date
Effective Fixed Interest Rate
September 2016 Interest Rate Swap
$
150.0 
January 3, 2018
January 3, 2028
1.910 
%
June 2017 Interest Rate Swap
$
75.0 
January 3, 2018
January 3, 2028
2.348 
%
January 2022 Interest Rate Swap
$
575.0 
January 31, 2022
January 29, 2027
1.650 
%
March 2023 Interest Rate Swap
$
150.0 
March 3, 2023
January 3, 2029
3.950 
%
February 2026 Interest Rate Swap
$
200.0 
January 29, 2027
January 31, 2030
3.380 
%
As of August 29, 2026, the swaps above have effectively converted, or are expected to convert upon their respective effective dates, indebtedness up to the notional amounts from a SOFR-based floating interest rate plus applicable margin to an effective fixed interest rate plus applicable margin under the terms of the Credit Agreement.
The following table summarizes the effects of the interest rate swap agreements for the three months ended:
Three Months Ended
(In millions)
August 29, 2026
August 30, 2025
Gain (loss) recognized in Other comprehensive income (loss) (effective portion)
$
0.2 
$
(5.8)
Gain reclassified from Accumulated other comprehensive loss into earnings
$
3.8 
$
5.4 
No amounts were recognized in earnings as a result of hedge ineffectiveness during the three month periods ended August 29, 2026, and August 30, 2025. The amount of gain expected to be reclassified from Accumulated other comprehensive income into earnings during the next twelve months is approximately $11.2 million, net of tax the amount is $8.4 million.
Changes in the Company's redeemable noncontrolling interest in HAY for the three months ended August 29, 2026, and August 30, 2025, are as follows:
(In millions)
August 29, 2026
August 30, 2025
Beginning Balance
$
63.3 
$
59.3 
Net income attributable to redeemable noncontrolling interests
1.0 
0.9 
Cumulative translation adjustments attributable to redeemable noncontrolling interests
(0.1)
1.0 
Foreign currency translation adjustments
(0.4)
1.7 
Ending Balance
$
63.8 
$
62.9