Fair Value Measurements

9 Months Ended

Aug. 28, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

We measure certain financial assets and liabilities at fair value on a recurring basis. There have been no transfers between fair value measurement levels during the nine months ended August 28, 2020.

The fair value of our financial assets and liabilities at August 28, 2020 was determined using the following inputs:

(in millions)	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents:
Corporate debt securities	$	5	$	—	$	5	$	—
Money market mutual funds	2,937		2,937		—		—
Time deposits	85		85		—		—
Short-term investments:
Asset-backed securities	89		—		89		—
Corporate debt securities	1,395		—		1,395		—
Municipal securities	13		—		13		—
Prepaid expenses and other current assets:
Foreign currency derivatives	29		—		29		—
Other assets:
Deferred compensation plan assets	110		7		103		—
Total assets	$	4,663	$	3,029	$	1,634	$	—

Liabilities:
Accrued expenses:
Foreign currency derivatives	$	5	$	—	$	5	$	—

The fair value of our financial assets and liabilities at November 29, 2019 was determined using the following inputs:

(in millions)	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents:
Corporate debt securities	$	46	$	—	$	46	$	—
Money market mutual funds	2,049		2,049		—		—
Time deposits	88		88		—		—
Short-term investments:
Asset-backed securities	89		—		89		—
Corporate debt securities	1,412		—		1,412		—
Municipal securities	18		—		18		—
U.S. Treasury securities	8		—		8		—
Prepaid expenses and other current assets:
Foreign currency derivatives	29		—		29		—
Other assets:
Deferred compensation plan assets	94		5		89		—
Total assets	$	3,833	$	2,142	$	1,691	$	—

Liabilities:
Accrued expenses:
Treasury lock derivatives	$	30	$	—	$	30	$	—
Foreign currency derivatives	3		—		3		—
Total liabilities	$	33	$	—	$	33	$	—

Our fixed income available-for-sale debt securities consist of high quality, investment grade securities from diverse issuers with a weighted average credit rating of AA. We value these securities based on pricing from independent pricing vendors who use matrix pricing valuation techniques including market approach methodologies that model information generated by market transactions involving identical or comparable assets, as well as discounted cash flow methodologies. Inputs include quoted prices in active markets for identical assets or inputs other than quoted prices that are observable either directly or indirectly in determining fair value, including benchmark yields, issuer spreads off benchmark yields, interest rates and U.S. Treasury or swap curves. We therefore classify all of our fixed income available-for-sale securities as Level 2. We perform routine procedures such as comparing prices obtained from multiple independent sources to ensure that appropriate fair values are recorded.

The fair values of our money market mutual funds and time deposits are based on the closing price of these assets as of the reporting date. We classify our money market mutual funds and time deposits as Level 1.

Our Level 2 over-the-counter foreign currency derivatives are valued using pricing models and discounted cash flow methodologies based on observable foreign exchange and interest rate data at the measurement date.

Our deferred compensation plan assets consist of money market and other mutual funds.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The fair value of our debt was $4.47 billion as of August 28, 2020, based on observable market prices in less active markets and categorized as Level 2. See Note 15 for further details regarding our debt.