v3.26.3
FAIR VALUE MEASUREMENTS
 3 Months Ended
Aug. 30, 2026
FAIR VALUE MEASUREMENTS  
FAIR VALUE MEASUREMENTS

15. FAIR VALUE MEASUREMENTS

Financial Accounting Standards Board guidance establishes a three-level fair value hierarchy based upon the assumptions (inputs) used to price assets or liabilities. The three levels of inputs used to measure fair value are as follows:

Level 1 — Unadjusted quoted prices in active markets for identical assets or liabilities,

Level 2 — Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets, and

Level 3 — Unobservable inputs reflecting our own assumptions and best estimate of what inputs market participants would use in pricing the asset or liability.

The fair values of our Level 2 derivative instruments were determined using valuation models that use market observable inputs including both forward and spot prices for currencies and commodities. Derivative assets and liabilities included in Level 2 primarily represent commodity and foreign currency option and forward contracts.

The following table presents our financial assets and liabilities measured at fair value on a recurring basis, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of August 30, 2026:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Net Value

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Derivative assets

​

$

5.4

​

$

3.2

​

$

—

​

$

8.6

Deferred compensation assets

​

​

6.4

​

​

—

​

​

—

​

​

6.4

Total assets

​

$

11.8

​

$

3.2

​

$

—

​

$

15.0

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Derivative liabilities

​

$

—

​

$

1.3

​

$

—

​

$

1.3

Deferred compensation liabilities

​

​

84.2

​

​

—

​

​

—

​

​

84.2

Total liabilities

​

$

84.2

​

$

1.3

​

$

—

​

$

85.5

​

The following table presents our financial assets and liabilities measured at fair value on a recurring basis, based upon the level within the fair value hierarchy in which the fair value measurements fall, as of May 31, 2026:

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​

​

​

​

​

​

​

​

​

​

​

​

​

  ​ ​ ​

Level 1

  ​ ​ ​

Level 2

  ​ ​ ​

Level 3

  ​ ​ ​

Net Value

Assets:

​

​

​

​

​

​

​

​

​

​

​

​

Derivative assets

​

$

3.1

​

$

1.6

​

$

—

​

$

4.7

Deferred compensation assets

​

​

6.6

​

​

—

​

​

—

​

​

6.6

Available-for-sale debt securities

​

​

—

​

​

—

​

​

2.0

​

​

2.0

Total assets

​

$

9.7

​

$

1.6

​

$

2.0

​

$

13.3

Liabilities:

​

​

​

​

​

​

​

​

​

​

​

​

Derivative liabilities

​

$

—

​

$

1.6

​

$

—

​

$

1.6

Deferred compensation liabilities

​

​

81.4

​

​

—

​

​

—

​

​

81.4

Total liabilities

​

$

81.4

​

$

1.6

​

$

—

​

$

83.0

​

Nonrecurring Fair Value Measurements

​

Certain assets and liabilities, including long-lived assets, goodwill, asset retirement obligations, and equity investments are measured at fair value on a nonrecurring basis using Level 3 inputs.

Long-Term Debt Fair Value

The carrying amount of long-term debt (including current installments) was $7.73 billion and $7.23 billion as of August 30, 2026 and May 31, 2026, respectively. Based on current market rates, the fair value of this debt (Level 2 liabilities) at August 30, 2026 and May 31, 2026 was estimated at $7.48 billion and $7.05 billion, respectively.