FAIR VALUE MEASUREMENTS

12 Months Ended

May 31, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

19. 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 and cross-currency swaps.

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, 2020:

	Level 1		Level 2		Level 3		Total
Assets:
Derivative assets	$	2.8	$	5.2	$	—	$	8.0
Marketable securities		8.1		—		—		8.1
Deferred compensation assets		8.6		—		—		8.6
Total assets	$	19.5	$	5.2	$	—	$	24.7
Liabilities:
Derivative liabilities	$	—	$	0.4	$	—	$	0.4
Deferred compensation liabilities		68.0		—		—		68.0
Total liabilities	$	68.0	$	0.4	$	—	$	68.4

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 26, 2019:

	Level 1		Level 2		Level 3		Total
Assets:
Derivative assets	$	3.0	$	2.9	$	—	$	5.9
Marketable securities		15.7		—		—		15.7
Deferred compensation assets		10.7		—		—		10.7
Total assets	$	29.4	$	2.9	$	—	$	32.3
Liabilities:
Derivative liabilities	$	—	$	1.4	$	—	$	1.4
Deferred compensation liabilities		70.4		—		—		70.4
Total liabilities	$	70.4	$	1.4	$	—	$	71.8

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.

We recognized charges for the impairment of certain indefinite-lived brands. The fair values of these brands were estimated using the "relief from royalty" method (See Note 8). Impairments in our Grocery & Snacks segment totaled $46.4 million, $76.5 million, and $4.0 million for fiscal 2020, 2019, and 2018, respectively. Impairments in our Refrigerated & Frozen segment totaled $110.8 million for fiscal 2020. Impairments in our International segment totaled $8.3 million, $13.1 million, and $0.8 million for fiscal 2020, 2019, and 2018, respectively.

During fiscal 2020, we recognized impairment charges totaling $54.4 million in the Grocery & Snacks segment and $27.6 million in the Refrigerated & Frozen segment. The impairments were measured based upon the estimated sales price of the disposal group (See Note 6).

We recognized charges totaling $3.8 million in the Refrigerated & Frozen segment in fiscal 2020, and charges totaling $2.7 million and $4.7 million within general corporate expenses in fiscal 2019 and 2018, respectively, for the impairment of certain long-lived assets. The impairments were measured based upon the estimated sales price of the assets.

During fiscal 2020, we recognized charges of $2.9 million in general corporate expenses related to the impairments of ROU assets. The impairments were measured based upon a discounted cash flow approach.

The carrying amount of long-term debt (including current installments) was $9.75 billion as of May 31, 2020 and $10.68 billion as of May 26, 2019. Based on current market rates, the fair value of this debt (level 2 liabilities) at May 31, 2020 and May 26, 2019 was estimated at $11.35 billion and $11.24 billion, respectively.