CAMPBELL'S CoCPB
CAMPBELL'S Co Fair Value Disclosure
Fair Value Measurements
We categorize financial assets and liabilities based on the following fair value hierarchy:
•Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.
•Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability through corroboration with observable market data.
•Level 3: Unobservable inputs, which are valued based on our estimates of assumptions that market participants would use in pricing the asset or liability.
Fair value is defined as the exit price, or the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. When available, we use unadjusted quoted market prices to measure the fair value and classify such items as Level 1. If quoted market prices are not available, we base fair value upon internally developed models that use current market-based or independently sourced market parameters such as
interest rates and currency rates. Included in the fair value of derivative instruments is an adjustment for credit and nonperformance risk.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following tables present our financial assets and liabilities that are measured at fair value on a recurring basis consistent with the fair value hierarchy:
| Fair Value as of August 3, 2025 | Fair Value Measurements at August 3, 2025 Using Fair Value Hierarchy | Fair Value as of July 28, 2024 | Fair Value Measurements at July 28, 2024 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||
| (Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(1) | $ | 2 | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | $ | 2 | $ | — | |||||||||||||||||||||||||||||||
Commodity derivative contracts(2) | 12 | 1 | 8 | 3 | 6 | — | 1 | 5 | |||||||||||||||||||||||||||||||||||||||
Deferred compensation derivative contracts(3) | 1 | — | 1 | — | 3 | — | 3 | — | |||||||||||||||||||||||||||||||||||||||
Deferred compensation investments(4) | 1 | 1 | — | — | 1 | 1 | — | — | |||||||||||||||||||||||||||||||||||||||
| Total assets at fair value | $ | 16 | $ | 2 | $ | 11 | $ | 3 | $ | 12 | $ | 1 | $ | 6 | $ | 5 | |||||||||||||||||||||||||||||||
| Fair Value as of August 3, 2025 | Fair Value Measurements at August 3, 2025 Using Fair Value Hierarchy | Fair Value as of July 28, 2024 | Fair Value Measurements at July 28, 2024 Using Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||||
| (Millions) | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts(1) | $ | 3 | $ | — | $ | 3 | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||
Commodity derivative contracts(2) | 11 | — | 7 | 4 | 16 | 1 | 15 | — | |||||||||||||||||||||||||||||||||||||||
Deferred compensation obligation(4) | 102 | 102 | — | — | 101 | 101 | — | — | |||||||||||||||||||||||||||||||||||||||
| Total liabilities at fair value | $ | 116 | $ | 102 | $ | 10 | $ | 4 | $ | 117 | $ | 102 | $ | 15 | $ | — | |||||||||||||||||||||||||||||||
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(1)Based on observable market transactions of spot currency rates and forward rates.
(2)Level 1 and 2 are based on quoted futures exchanges and on observable prices of futures and options transactions in the marketplace. Level 3 is based on unobservable inputs in which there is little or no market data, which requires management’s own assumptions within an internally developed model.
(3)Based on equity and fixed income index swap rates.
(4)Based on the fair value of the participants’ investments.
The following table summarizes the changes in fair value of Level 3 assets:
| (Millions) | 2025 | 2024 | ||||||||||||
| Fair value at beginning of year | $ | 5 | $ | 2 | ||||||||||
| (3) | 13 | |||||||||||||
| Settlements | (3) | (10) | ||||||||||||
| Fair value at end of year | $ | (1) | $ | 5 | ||||||||||
Items Measured at Fair Value on a Nonrecurring Basis
In addition to assets and liabilities that are measured at fair value on a recurring basis, we are also required to measure certain items at fair value on a nonrecurring basis.
In the fourth quarter of 2024, we recognized impairment charges on certain trademarks in our Snacks segment. In the second and third quarters of 2025, we performed interim impairment assessments on certain trademarks in our Snacks segment. See also Note 6 for additional information on the impairment charges.
Fair value was determined based on unobservable Level 3 inputs. The fair value of trademarks was determined based on discounted cash flow analysis that involves significant management assumptions such as expected revenue growth rates, assumed royalty rates and weighted-average costs of capital.
The following table presents fair value measurements of the trademarks:
| March 2025 | December 2024 | May 2024 | ||||||||||||||||||||||||||||||||||||
| (Millions) | Impairment Charge | Fair Value | Impairment Charges | Fair Value | Impairment Charges | Fair Value | ||||||||||||||||||||||||||||||||
| Snyder's of Hanover | $ | $ | 470 | |||||||||||||||||||||||||||||||||||
| Late July | $ | $ | 47 | |||||||||||||||||||||||||||||||||||
| Allied brands | $ | $ | 28 | $ | $ | 43 | ||||||||||||||||||||||||||||||||
| Pop Secret | $ | $ | 28 | |||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments
The carrying values of cash and cash equivalents, accounts receivable and accounts payable approximate fair value. Cash equivalents represent fair value as these highly liquid investments have an original maturity of three months or less. There were no cash equivalents with fair value based on Level 2 inputs at August 3, 2025. There were $25 million of cash equivalents with fair value based on Level 2 inputs at July 28, 2024.
The fair value of short- and long-term debt was $6.545 billion at August 3, 2025, and $6.866 billion at July 28, 2024. The carrying value was $6.857 billion at August 3, 2025, and $7.184 billion at July 28, 2024. The fair value of long-term debt is principally estimated using Level 2 inputs based on quoted market prices or pricing models using current market rates.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 18, 2025 | Showing above |
| 2024 | Sep 19, 2024 | |
| 2023 | Sep 21, 2023 | |
| 2022 | Sep 22, 2022 | |
| 2021 | Sep 23, 2021 | |
| 2020 | Sep 24, 2020 | |
| 2019 | Sep 26, 2019 | |
| 2018 | Sep 27, 2018 | |
| 2017 | Sep 27, 2017 | |
| 2016 | Sep 22, 2016 | |
| 2015 | Sep 29, 2015 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.