FAIR VALUE MEASUREMENTS

3 Months Ended

Aug. 30, 2015

Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [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 contacts, interest rate swaps, 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 August 30, 2015:

	Level 1		Level 2		Level 3		Net Value
Assets:
Derivative assets	$	9.7	$	22.6	$	—	$	32.3
Available-for-sale securities	2.8		—		—		2.8
Deferred compensation assets	2.6		—		—		2.6
Total assets	$	15.1	$	22.6	$	—	$	37.7
Liabilities:
Derivative liabilities	$	—	$	14.5	$	—	$	14.5
Deferred compensation liabilities	46.6		—		—		46.6
Total liabilities	$	46.6	$	14.5	$	—	$	61.1

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, 2015:

	Level 1		Level 2		Level 3		Net Value
Assets:
Derivative assets	$	13.6	$	18.6	$	—	$	32.2
Available-for-sale securities	2.8		—		—		2.8
Deferred compensation assets	2.6		—		—		2.6
Total assets	$	19.0	$	18.6	$	—	$	37.6
Liabilities:
Derivative liabilities	$	—	$	14.2	$	—	$	14.2
Deferred compensation liabilities	44.6		—		—		44.6
Total liabilities	$	44.6	$	14.2	$	—	$	58.8

Certain assets and liabilities, including long-lived assets, goodwill, asset retirement obligations, and cost and equity investments are measured at fair value on a nonrecurring basis. There were no significant fair value measurement losses recognized for such assets and liabilities in the periods reported.

The carrying amount of long-term debt (including current installments) was $7.9 billion as of August 30, 2015 and May 31, 2015. Based on current market rates, the fair value of this debt (level 2 liabilities) at August 30, 2015 and May 31, 2015, was estimated at $8.1 billion.