Financial Instruments, Risk Management Activities, And Fair Values

12 Months Ended

May 28, 2023

Financial Instruments, Risk Management Activities, And Fair Values [Abstract]

Financial Instruments, Risk Management Activities, And Fair Values

NOTE 8. FINANCIAL INSTRUMENTS, RISK MANAGEMENT ACTIVITIES, AND FAIR VALUES

FINANCIAL INSTRUMENTS

The carrying values of cash and cash equivalents, receivables, accounts payable, other current liabilities, and notes payable

approximate fair value. Marketable securities are carried at fair value. As of May 28, 2023, and May 29, 2022, a comparison of cost

and market values of our marketable debt and equity securities is as follows:

Cost

Fair Value

Gross Unrealized Gains

Gross Unrealized Losses

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

In Millions

2023

2022

2023

2022

2023

2022

2023

2022

Available for sale

 debt securities

$

2.3

$

2.3

$

2.3

$

2.3

$

-

$

-

$

-

$

-

Equity securities

117.5

250.1

122.7

255.3

5.2

5.2

10.0

15.1

Total

$

119.8

$

252.4

$

125.0

$

257.6

$

5.2

$

5.2

$

10.0

$

15.1

As of May 28, 2023, the fair value and carrying value of equity securities restricted for payment of active employee health and welfare

benefits were $

117.2

 million.

There were

no

 realized gains or losses from sales of marketable securities in fiscal 2023 and 2022. Gains and losses are determined by

specific identification.

Classification of marketable securities as current or noncurrent is dependent upon our intended holding period and the security’s

maturity date. The aggregate unrealized gains and losses on available for sale debt securities, net of tax effects, are classified in AOCI

within stockholders’ equity. 

Scheduled maturities of our marketable securities are as follows:

Marketable Securities

In Millions

Cost

Fair Value

Under 1 year (current)

$

2.3

$

2.3

Equity securities

117.5

122.7

Total

$

119.8

$

125.0

As of May 28, 2023, we had $

2.2

 million of marketable debt securities pledged as collateral for derivative contracts.

RISK MANAGEMENT ACTIVITIES

As a part of our ongoing operations, we are exposed to market risks such as changes in interest and foreign currency exchange rates

and commodity and equity prices. To manage these risks, we may enter into various derivative transactions (e.g., futures, options, and

swaps) pursuant to our established policies.

COMMODITY PRICE RISK

Many commodities we use in the production and distribution of our products are exposed to market price risks. We utilize derivatives

to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean),

dairy products, natural gas, and diesel fuel. Our primary objective when entering into these derivative contracts is to achieve certainty

with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a

combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options

and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as

close as possible to or below our planned cost.

We

use derivatives to manage our exposure to changes in commodity prices. We do not perform the assessments required to achieve

hedge accounting for commodity derivative positions. Accordingly, the changes in the values of these derivatives are recorded

currently in cost of sales in our Consolidated Statements of Earnings. 

Although we do not meet the criteria for cash flow hedge accounting, we believe that these instruments are effective in achieving our

objective of providing certainty in the future price of commodities purchased for use in our supply chain. Accordingly, for purposes of

measuring segment operating performance these gains and losses are reported in unallocated corporate items outside of segment

operating results until such time that the exposure we are managing affects earnings. At that time we reclassify the gain or loss from

unallocated corporate items to segment operating profit, allowing our operating segments to realize the economic effects of the

derivative without experiencing any resulting mark-to-market volatility, which remains in unallocated corporate items. 

Unallocated corporate items for fiscal 2023, 2022, and 2021 included:

Fiscal Year

In Millions

2023

2022

2021

Net (loss) gain on mark-to-market valuation of commodity positions

$

(154.4)

$

303.3

$

138.2

Net gain on commodity positions reclassified from unallocated corporate

 items to segment operating profit

(89.5)

(188.0)

(8.8)

Net mark-to-market revaluation of certain grain inventories

(48.0)

17.8

9.4

Net mark-to-market valuation of certain commodity positions recognized in

 unallocated corporate items

$

(291.9)

$

133.1

$

138.8

As of May 28, 2023, the net notional value of commodity derivatives was $

406.8

 million, of which $

257.9

 million related to

agricultural inputs and $

148.9

 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the

next

12

 months. 

INTEREST RATE RISK

We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of

floating-rate debt. Primary exposures include U.S. Treasury rates, SOFR, Euribor, and commercial paper rates in the United States and

Europe. We use interest rate swaps, forward-starting interest rate swaps, and treasury locks to hedge our exposure to interest rate

changes, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed-rate versus floating-rate debt,

based on current and projected market conditions. Generally under these swaps, we agree with a counterparty to exchange the

difference between fixed-rate and floating-rate interest amounts based on an agreed upon notional principal amount.

Floating Interest Rate Exposures — Floating-to-fixed interest rate swaps are accounted for as cash flow hedges, as are all hedges of

forecasted issuances of debt. Effectiveness is assessed based on either the perfectly effective hypothetical derivative method or

changes in the present value of interest payments on the underlying debt. Effective gains and losses deferred to AOCI are reclassified

into earnings over the life of the associated debt. 

Fixed Interest Rate Exposures — Fixed-to-floating interest rate swaps are accounted for as fair value hedges with effectiveness

assessed based on changes in the fair value of the underlying debt and derivatives, using incremental borrowing rates currently

available on loans with similar terms and maturities. 

During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into €

750.0

 million of forward-starting

swaps. The forward-starting swap agreements were terminated during the fourth quarter of fiscal 2023, in conjunction with the

Company’s issuance of a €

750.0

 million

6

-year fixed-rate note. Upon termination, a loss of $

5.0

 million was recognized in AOCI and

will be amortized through interest expense over the respective term of the debt. 

During the fourth quarter of fiscal 2023, in advance of planned debt financing, we entered into $

500.0

 million of treasury locks. The

treasury locks were terminated during the fourth quarter of fiscal 2023, in conjunction with the Company’s issuance of a $

1,000.0

million

10

-year fixed-rate note. Upon termination, a loss of $

1.4

 million was recognized in AOCI and will be amortized through

interest expense over the respective term of the debt. 

During the second quarter of fiscal 2023, we entered into a $

500.0

 million notional amount interest swap to convert our $

500.0

 million

fixed rate notes due

November 18, 2025

, to a floating rate. 

As of May 28, 2023, the pre-tax amount of cash-settled interest rate hedge gain or loss remaining in AOCI, which will be reclassified

to earnings over the remaining term of the related underlying debt, follows:

In Millions

Gain/(Loss)

3.65

% notes due

February 15, 2024

$

1.3

4.0

% notes due

April 17, 2025

(1.1)

3.2

% notes due

February 10, 2027

6.3

1.5

% notes due

April 27, 2027

(1.3)

4.2

% notes due

April 17, 2028

(5.0)

3.907

% notes due

April 13, 2029

(4.9)

2.25

% notes due

October 14, 2031

16.5

4.95

% notes due

March 29, 2033

(1.4)

4.55

% notes due

April 17, 2038

(8.1)

5.4

% notes due

June 15, 2040

(9.5)

4.15

% notes due

February 15, 2043

7.8

4.7

% notes due

April 17, 2048

(11.8)

Net pre-tax hedge loss in AOCI

$

(11.2)

The following table summarizes the notional amounts and weighted-average interest rates of our interest rate derivatives. Average

floating rates are based on rates as of the end of the reporting period.

In Millions

May 28, 2023

May 29, 2022

Pay-floating swaps - notional amount

$

1,143.4

$

644.1

Average receive rate

2.6

%

0.4

%

Average pay rate

2.5

%

0.1

%

The floating-rate swap contracts outstanding as of May 28, 2023, mature in fiscal

2026

. 

FOREIGN EXCHANGE RISK

Foreign currency fluctuations affect our net investments in foreign subsidiaries and foreign currency cash flows related to third party

purchases, intercompany loans, product shipments, and foreign-denominated debt. We are also exposed to the translation of foreign

currency earnings to the U.S. dollar. Our principal exposures are to the Australian dollar, Brazilian real, British pound sterling,

Canadian dollar, Chinese renminbi, euro, Japanese yen, Mexican peso, and Swiss franc. We primarily use foreign currency forward

contracts to selectively hedge our foreign currency cash flow exposures. We also generally swap our foreign-denominated commercial

paper borrowings and nonfunctional currency intercompany loans back to U.S. dollars or the functional currency of the entity with

foreign exchange exposure. The gains or losses on these derivatives offset the foreign currency revaluation gains or losses recorded in

earnings on the associated borrowings. We generally do not hedge more than 18 months in advance.

As of May 28, 2023, the net notional value of foreign exchange derivatives was $

933.0

 million.

We also have net investments in foreign subsidiaries that are denominated in euros. We hedged a portion of these net investments by

issuing euro-denominated commercial paper and foreign exchange forward contracts. As of May 28, 2023, we hedged a portion of

these net investments with €

2,949.9

 million of euro denominated bonds. As of May 28, 2023, we had deferred net foreign currency

transaction gains of $

71.9

 million in AOCI associated with net investment hedging activity.

EQUITY INSTRUMENTS

Equity price movements affect our compensation expense as certain investments made by our employees in our deferred

compensation plan are revalued. We use equity swaps to manage this risk. As of May 28, 2023, the net notional amount of our equity

swaps was $

177.5

 million. In fiscal 2024, $

165.4

 million of swap contracts will mature, and $

12.1

 million of swap contracts mature in

fiscal 2025.

FAIR VALUE MEASUREMENTS AND FINANCIAL STATEMENT PRESENTATION

The fair values of our assets, liabilities, and derivative positions recorded at fair value and their respective levels in the fair value

hierarchy as of May 28, 2023, and May 29, 2022, were as follows:

May 28, 2023

May 28, 2023

Fair Values of Assets

Fair Values of Liabilities

In Millions

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

Derivatives designated as hedging instruments:

Interest rate contracts (a) (b)

$

-

$

-

$

-

$

-

$

-

$

(62.2)

$

-

$

(62.2)

Foreign exchange contracts (a) (c)

-

10.3

-

10.3

-

(2.5)

-

(2.5)

Total

-

10.3

-

10.3

-

(64.7)

-

(64.7)

Derivatives not designated as hedging

 instruments:

Foreign exchange contracts (a) (c)

-

0.2

-

0.2

-

(5.6)

-

(5.6)

Commodity contracts (a) (d)

-

0.5

-

0.5

-

(29.3)

-

(29.3)

Grain contracts (a) (d)

-

2.3

-

2.3

-

(11.8)

-

(11.8)

Total

-

3.0

-

3.0

-

(46.7)

-

(46.7)

Other assets and liabilities reported at fair value:

Marketable investments (a) (e) (f)

122.7

2.3

34.8

159.8

-

-

-

-

Long-lived assets (g)

-

1.0

-

1.0

-

-

-

-

Total

122.7

3.3

34.8

160.8

-

-

-

-

Total assets, liabilities, and derivative positions

 recorded at fair value

$

122.7

$

16.6

$

34.8

$

174.1

$

-

$

(111.4)

$

-

$

(111.4)

May 29, 2022

May 29, 2022

Fair Values of Assets

Fair Values of Liabilities

In Millions

Level 1

Level 2

Level 3

Total

Level 1

Level 2

Level 3

Total

Derivatives designated as hedging instruments:

Interest rate contracts (a) (b)

$

-

$

-

$

-

$

-

$

-

$

(29.8)

$

-

$

(29.8)

Foreign exchange contracts (a) (c)

-

26.9

-

26.9

-

(4.7)

-

(4.7)

Total

-

26.9

-

26.9

-

(34.5)

-

(34.5)

Derivatives not designated as hedging

 instruments:

Foreign exchange contracts (a) (c)

-

8.4

-

8.4

-

(15.1)

-

(15.1)

Commodity contracts (a) (d)

10.7

96.9

-

107.6

-

(0.2)

-

(0.2)

Grain contracts (a) (d)

-

28.7

-

28.7

-

(3.0)

-

(3.0)

Total

10.7

134.0

-

144.7

-

(18.3)

-

(18.3)

Other assets and liabilities reported at fair value:

Marketable investments (a) (e) (f)

255.3

2.3

67.2

324.8

-

-

-

-

Total

255.3

2.3

67.2

324.8

-

-

-

-

Total assets, liabilities, and derivative positions

 recorded at fair value

$

266.0

$

163.2

$

67.2

$

496.4

$

-

$

(52.8)

$

-

$

(52.8)

a) These contracts and investments are recorded as prepaid expenses and other current assets, other assets, other current liabilities or

other liabilities, as appropriate, based on whether in a gain or loss position. Certain marketable investments are recorded as cash

and cash equivalents. 

(b) Based on EURIBOR and swap rates. As of May 29, 2022, the carrying amount of hedged debt designated as the hedged item in a

fair value hedge was $

615.7

 million and was classified on the Consolidated Balance Sheet within long-term debt. As of May 29,

2022, the cumulative amount of fair value hedging basis adjustments was $

28.4

 million.

(c) Based on observable market transactions of spot currency rates and forward currency prices.

(d) Based on prices of futures exchanges and recently reported transactions in the marketplace.

(e) Based on prices of common stock, mutual fund net asset values, and bond matrix pricing.

(f) The level 3 marketable investment represents an equity security without a readily determinable fair value. During fiscal 2022, we

recorded an impairment charge of $

34.0

 million resulting from the determination of fair value utilizing level 3 inputs including

revised projections of future operating results and observable transaction data for similar instruments.

We did not significantly change our valuation techniques from prior periods. 

The fair value of our long-term debt is estimated using Level 2 inputs based on quoted prices for those instruments. Where quoted

prices are not available, fair value is estimated using discounted cash flows and market-based expectations for interest rates, credit risk

and the contractual terms of the debt instruments. As of May 28, 2023, the fair value and carrying amount of our long-term debt,

including the current portion, were $

10,929.6

 million and $

11,674.2

 million, respectively. As of May 29, 2022, the carrying amount

and fair value of our long-term debt, including the current portion, were $

10,508.8

 million and $

10,809.0

 million, respectively.

Information related to our cash flow hedges, fair value hedges, and other derivatives not designated as hedging instruments for the

fiscal years ended May 28, 2023, and May 29, 2022, follows:

Interest Rate

Contracts

Foreign

Exchange

Contracts

Equity

Contracts

Commodity

Contracts

Total

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

Fiscal Year

In Millions

2023

2022

2023

2022

2023

2022

2023

2022

2023

2022

Derivatives in Cash Flow Hedging

Relationships:

Amount of (loss) gain recognized in

other comprehensive income (OCI)

$

(6.4)

$

(5.4)

$

9.4

$

13.2

$

-

$

-

$

-

$

-

$

3.0

$

7.8

Amount of net gain (loss) reclassified

from AOCI into earnings (a)

2.2

(4.7)

22.0

(19.5)

-

-

-

-

24.2

(24.2)

Derivatives in Fair Value Hedging

Relationships:

Amount of net loss recognized

 in earnings (b)

(4.9)

(2.1)

-

-

-

-

-

-

(4.9)

(2.1)

Derivatives Not Designated as

 Hedging Instruments:

Amount of net (loss) gain recognized

 in earnings (c)

-

-

(46.2)

(32.8)

(3.4)

(8.0)

(152.6)

257.2

(202.2)

216.4

(a) (Loss) gain reclassified from AOCI into earnings is reported in interest, net for interest rate swaps and in cost of sales and SG&A

expenses for foreign exchange contracts. For the fiscal year ended May 28, 2023, the amount of gain reclassified from AOCI into

cost of sales was $

21.1

 million and the amount of gain reclassified from AOCI into SG&A was $

0.9

 million. For the fiscal year

ended May 29, 2022, the amount of loss reclassified from AOCI into cost of sales was $

11.1

 million and the amount of loss

reclassified from AOCI into SG&A was $

8.4

 million.

(b) Loss recognized in earnings is reported in interest, net for interest rate contracts, in cost of sales for commodity contracts, and in

SG&A expenses for equity contracts and foreign exchange contracts.

(c) (Loss) gain recognized in earnings is related to the ineffective portion of the hedging relationship, reported in SG&A expenses for

foreign exchange contracts and interest, net for interest rate contracts.

No

 amounts were reported as a result of being excluded

from the assessment of hedge effectiveness.

The following tables reconcile the net fair values of assets and liabilities subject to offsetting arrangements that are recorded in our

Consolidated Balance Sheets to the net fair values that could be reported in our Consolidated Balance Sheets:

May 28, 2023

Assets

Liabilities

Gross Amounts Not Offset

in the

Balance Sheet (e)

Gross Amounts Not Offset

in the

Balance Sheet (e)

In Millions

Gross

Amounts of

Recognized

Assets

Gross

Liabilities

Offset in the

Balance Sheet

(a)

Net Amounts

of Assets (b)

Financial

Instruments

Cash

Collateral

Received

Net Amount

(c)

Gross

Amounts of

Recognized

Liabilities

Gross Assets

Offset in the

Balance Sheet

(a)

Net Amounts

of Liabilities

(b)

Financial

Instruments

Cash

Collateral

Pledged

Net Amount

(d)

Commodity contracts

$

0.5

$

-

$

0.5

$

(0.5)

$

-

$

-

$

(29.3)

$

-

$

(29.3)

$

0.5

$

16.2

$

(12.6)

Interest rate contracts

-

-

-

-

-

-

(69.2)

-

(69.2)

-

44.3

(24.9)

Foreign exchange contracts

10.4

-

10.4

(4.2)

-

6.2

(8.2)

-

(8.2)

4.2

-

(4.0)

Equity contracts

2.8

-

2.8

(1.0)

-

1.8

(1.5)

-

(1.5)

1.0

-

(0.5)

Total

$

13.7

$

-

$

13.7

$

(5.7)

$

-

$

8.0

$

(108.2)

$

-

$

(108.2)

$

5.7

$

60.5

$

(42.0)

May 29, 2022

Assets

Liabilities

Gross Amounts Not Offset

in the Balance Sheet (e)

Gross Amounts Not Offset

in the Balance Sheet (e)

In Millions

Gross

Amounts of

Recognized

Assets

Gross

Liabilities

Offset in the

Balance

Sheet (a)

Net

Amounts of

Assets (b)

Financial

Instruments

Cash

Collateral

Received

Net Amount

(c)

Gross

Amounts of

Recognized

Liabilities

Gross

Assets

Offset in the

Balance

Sheet (a)

Net

Amounts of

Liabilities

(b)

Financial

Instruments

Cash

Collateral

Pledged

Net Amount

(d)

Commodity contracts

$

107.5

$

-

$

107.5

$

(0.2)

$

(62.8)

$

44.5

$

(0.2)

$

-

$

(0.2)

$

0.2

$

-

$

-

Interest rate contracts

-

-

-

-

-

-

(30.7)

-

(30.7)

-

10.6

(20.1)

Foreign exchange contracts

35.3

-

35.3

(6.4)

-

28.9

(19.7)

-

(19.7)

6.4

-

(13.3)

Equity contracts

0.4

-

0.4

(0.3)

-

0.1

(4.0)

-

(4.0)

0.3

-

(3.7)

Total

$

143.2

$

-

$

143.2

$

(6.9)

$

(62.8)

$

73.5

$

(54.6)

$

-

$

(54.6)

$

6.9

$

10.6

$

(37.1)

(a) Includes related collateral offset in our Consolidated Balance Sheets. 

(b) Net fair value as recorded in our Consolidated Balance Sheets. 

(c) Fair value of assets that could be reported net in our Consolidated Balance Sheets. 

(d) Fair value of liabilities that could be reported net in our Consolidated Balance Sheets.

(e) Fair value of assets and liabilities reported on a gross basis in our Consolidated Balance Sheets.

AMOUNTS RECORDED IN ACCUMULATED OTHER COMPREHENSIVE LOSS 

As of May 28, 2023, the after-tax amounts of unrealized gains in AOCI related to hedge derivatives follows:

In Millions

After-Tax Gain/(Loss)

Unrealized losses from interest rate cash flow hedges

$

(7.8)

Unrealized gains from foreign currency cash flow hedges

13.7

After-tax gains in AOCI related to hedge derivatives

$

5.9

The net amount of pre-tax gains and losses in AOCI as of May 28, 2023, that we expect to be reclassified into net earnings within the

next 12 months is a $

19.8

 million net gain.

CREDIT-RISK-RELATED CONTINGENT FEATURES

Certain of our derivative instruments contain provisions that require us to maintain an investment grade credit rating on our debt from

each of the major credit rating agencies. If our debt were to fall below investment grade, the counterparties to the derivative

instruments could request full collateralization on derivative instruments in net liability positions. The aggregate fair value of all

derivative instruments with credit-risk-related contingent features that were in a liability position on May 28, 2023, was $

100.1

million. We have posted $

60.5

 million of collateral under these contracts. 

CONCENTRATIONS OF CREDIT AND COUNTERPARTY CREDIT RISK

During fiscal 2023, customer concentration was as follows:

Percent of total

Consolidated

North America

Retail

North America

Foodservice

International

Pet

Walmart (a):

Net sales

21

%

28

%

8

%

2

%

16

%

Accounts receivable

22

%

8

%

3

%

15

%

Five largest customers:

Net sales

51

%

48

%

12

%

67

%

(a) Includes Walmart Inc. and its affiliates.

No customer other than Walmart accounted for

10

 percent or more of our consolidated net sales.

We enter into interest rate, foreign exchange, and certain commodity and equity derivatives, primarily with a diversified group of

highly rated counterparties. We continually monitor our positions and the credit ratings of the counterparties involved and, by policy,

limit the amount of credit exposure to any one party. These transactions may expose us to potential losses due to the risk of

nonperformance by these counterparties; however, we have not incurred a material loss. We also enter into commodity futures

transactions through various regulated exchanges.

The amount of loss due to the credit risk of the counterparties, should the counterparties fail to perform according to the terms of the

contracts, is $

4.5

 million. We have

no

 collateral held against these contracts. Under the terms of our swap agreements, some of our

transactions require collateral or other security to support financial instruments subject to threshold levels of exposure and

counterparty credit risk. Collateral assets are either cash or U.S. Treasury instruments and are held in a trust account that we may

access if the counterparty defaults.

We offer certain suppliers access to third-party services that allow them to view our scheduled payments online. The third-party

services also allow suppliers to finance advances on our scheduled payments at the sole discretion of the supplier and the third party.

We have no economic interest in these financing arrangements and no direct relationship with the suppliers, the third parties, or any

financial institutions concerning this service. All of our accounts payable remain as obligations to our suppliers as stated in our

supplier agreements. As of May 28, 2023, $

1,430.1

 million of our accounts payable was payable to suppliers who utilize these third-

party services. As of May 29, 2022, $

1,429.6

 million of our accounts payable was payable to suppliers who utilize these third-party

services.

(a) Includes related collateral offset in our Consolidated Balance Sheets. 

(b) Net fair value as recorded in our Consolidated Balance Sheets. 

(c) Fair value of assets that could be reported net in our Consolidated Balance Sheets. 

(d) Fair value of liabilities that could be reported net in our Consolidated Balance Sheets.

(e) Fair value of assets and liabilities reported on a gross basis in our Consolidated Balance Sheets.

(a) These contracts and investments are recorded as prepaid expenses and other current assets, other assets, other current liabilities or

other liabilities, as appropriate, based on whether in a gain or loss position. Certain marketable investments are recorded as cash

and cash equivalents. 

(b) Based on EURIBOR and swap rates. As of May 28, 2023, the carrying amount of hedged debt designated as the hedged item in a

fair value hedge was $

589.7

 million and was classified on the Consolidated Balance Sheet within long-term debt. As of May 28,

2023, the cumulative amount of fair value hedging basis adjustments was $

53.7

 million.

(c) Based on observable market transactions of spot currency rates and forward currency prices.

(d) Based on prices of futures exchanges and recently reported transactions in the marketplace.

(e) Based on prices of common stock, mutual fund net asset values, and bond matrix pricing.

(f) The level 3 marketable investment represents an equity security without a readily determinable fair value. During fiscal 2023, we

recorded an impairment charge of $

32.4

 million resulting from the determination of fair value utilizing level 3 inputs including

revised projections of future operating results and observable transaction data for similar instruments.

(g) We recorded $

8.6

 million in non-cash impairment charges in fiscal 2023 to write down certain long-lived assets to their fair value.

Fair value was based on recently reported transactions for similar assets in the marketplace. These assets had a carrying value of

$

9.6

 million and were associated with the restructuring actions described in Note 4.