FAIR VALUE MEASUREMENTS

9 Months Ended

Feb. 24, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

FASB 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 interest rate curves and 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 February 24, 2019:

	Level 1		Level 2		Level 3		Net Value
Assets:
Derivative assets	$	3.1	$	2.5	$	—	$	5.6
Equity securities	5.3		—		—		5.3
Deferred compensation assets	11.1		—		—		11.1
Total assets	$	19.5	$	2.5	$	—	$	22.0
Liabilities:
Derivative liabilities	$	—	$	2.7	$	—	$	2.7
Deferred compensation liabilities	68.9		—		—		68.9
Total liabilities	$	68.9	$	2.7	$	—	$	71.6

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 27, 2018:

	Level 1		Level 2		Level 3		Net Value
Assets:
Derivative assets	$	1.7	$	2.7	$	—	$	4.4
Equity securities	4.8		—		—		4.8
Total assets	$	6.5	$	2.7	$	—	$	9.2
Liabilities:
Derivative liabilities	$	—	$	0.1	$	—	$	0.1
Deferred compensation liabilities	51.6		—		—		51.6
Total liabilities	$	51.6	$	0.1	$	—	$	51.7

Certain assets and liabilities, including long-lived assets, goodwill, and equity investments, are measured at fair value on a nonrecurring basis.

We recognized charges of $0.3 million and $1.6 million in the third quarter and first three quarters of fiscal 2019, respectively, and $4.7 million for the first three quarters of fiscal 2018, for the impairments of certain long-lived assets. The impairments were measured based upon the estimated sales prices of the assets.

The carrying amount of long-term debt (including current installments) was $11.13 billion and $3.54 billion as of February 24, 2019 and May 27, 2018, respectively. Based on current market rates, the fair value of this debt (level 2 liabilities) at February 24, 2019 and May 27, 2018, was estimated at $11.24 billion and $3.76 billion, respectively.