FAIR VALUE MEASUREMENTS

Fair value can be measured using valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:


•	Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.


•	Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.


•	Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions.

At May 31, 2018, May 31, 2017 and November 30, 2017, we had no financial assets or liabilities that were subject to a level 3 fair value measurement. Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions):



			May 31, 2018
	Fair Value		Level 1		Level 2
Assets
Cash and cash equivalents	$	202.6	$	202.6	$	—
Insurance contracts	120.3		—		120.3
Bonds and other long-term investments	4.3		4.3		—
Foreign currency derivatives	5.8		—		5.8
Total	$	333.0	$	206.9	$	126.1
Liabilities
Foreign currency derivatives	$	5.2	$	—	$	5.2
Interest rate derivatives	5.8		—		5.8
Total	$	11.0	$	—	$	11.0



			May 31, 2017
	Fair Value		Level 1		Level 2
Assets
Cash and cash equivalents	$	130.0	$	130.0	$	—
Insurance contracts	113.0		—		113.0
Bonds and other long-term investments	9.2		9.2		—
Foreign currency derivatives	3.2		—		3.2
Total	$	255.4	$	139.2	$	116.2
Liabilities
Foreign currency derivatives	$	3.2	$	—	$	3.2
Interest rate derivatives	2.4		—		2.4
Total	$	5.6	$	—	$	5.6



			November 30, 2017
	Fair Value		Level 1		Level 2
Assets
Cash and cash equivalents	$	186.8	$	186.8	$	—
Insurance contracts	119.5		—		119.5
Bonds and other long-term investments	7.5		7.5		—
Foreign currency derivatives	12.7		—		12.7
Total	$	326.5	$	194.3	$	132.2
Liabilities
Foreign currency derivatives	$	4.7	$	—	$	4.7
Interest rate derivatives	2.5		—		2.5
Total	$	7.2	$	—	$	7.2

Because of their short-term nature, the amounts reported in the balance sheet for cash and cash equivalents, receivables, short-term borrowings and trade accounts payable approximate fair value. The fair values of insurance contracts are based upon the underlying values of the securities in which they are invested and are from quoted market prices from various stock and bond exchanges for similar type assets. The fair values of bonds and other long-term investments are based on quoted market prices from various stock and bond exchanges. The fair values for interest rate and foreign currency derivatives are based on values for similar instruments using models with market based inputs.

The following table sets forth the carrying amounts and fair values of our long-term debt (including the current portion thereof) at May 31, 2018, May 31, 2017 and November 30, 2017 (in millions):



	May 31, 2018		May 31, 2017		November 30, 2017
Carrying amount	$	4,531.7	$	1,054.9	$	4,769.5
Fair value	4,470.9		1,116.3		4,858.5

At May 31, 2018, the fair value of long-term debt includes $3,207.0 million and $1,263.9 million determined using Level 1 and Level 2 valuation techniques, respectively. At November 30, 2017, the fair value of long-term debt includes $3,615.2 million and $1,243.3 million determined using Level 1 and Level 2 valuation techniques, respectively. The fair value for Level 2 long-term debt is determined by using quoted prices for similar debt instruments. At May 31, 2017, the fair value of long-term debt was determined using Level 1 valuation techniques.