JABIL INCJBL

JABIL INC Fair Value Disclosure

10-KFiled Oct 17, 20253 min read
Fair Value Measurements
Fair Value Measurements on a Recurring Basis
The following table presents the fair value of the Company's financial assets and liabilities measured at fair value by hierarchy level on a recurring basis as of the periods indicated (in millions):
Fair Value HierarchyAugust 31, 2025August 31, 2024
Assets:
Cash and cash equivalents:
Cash equivalentsLevel 1
(1)
$392 $303 
Prepaid expenses and other current assets:
Short-term investmentsLevel 127 27 
Forward foreign exchange contracts:
Derivatives designated as hedging instruments (Note 11)
Level 2
(2)
19 11 
Derivatives not designated as hedging instruments (Note 11)
Level 2
(2)
26 25 
Net investment hedges:
Derivatives designated as hedging instruments (Note 11)
Level 2
(2)
1 — 
Liabilities:
Accrued expenses:
Forward foreign exchange contracts:
Derivatives designated as hedging instruments (Note 11)
Level 2
(2)
$— $28 
Derivatives not designated as hedging instruments (Note 11)
Level 2
(2)
9 22 
Net investment hedges:
Derivatives designated as hedging instruments (Note 11)
Level 2
(2)
13 6 
Forward interest rate swaps:
Derivatives designated as hedging instruments (Note 11)
Level 2
(3)
1 — 
Other liabilities:
Net investment hedges:
Derivatives designated as hedging instruments (Note 11)
Level 2
(2)
— 5 
(1)Consist of investments that are readily convertible to cash with original maturities of 90 days or less.
(2)The Company’s forward foreign exchange contracts, including cash flow hedges and net investment hedges are measured on a recurring basis at fair value, based on foreign currency spot rates and forward rates quoted by banks or foreign currency dealers.
(3)Fair value measurements are based on the contractual terms of the derivatives and use observable market-based inputs. The interest rate swaps are valued using a discounted cash flow analysis on the expected cash flows of each derivative using observable inputs including interest rate curves and credit spreads.
Fair Value of Financial Instruments
The carrying amounts of cash and cash equivalents, trade accounts receivable, prepaid expenses and other current assets, accounts payable and accrued expenses approximate fair value because of the short-term nature of these financial instruments. The carrying amounts of borrowings under credit facilities and under loans approximates fair value as interest rates on these instruments approximates current market rates.
Notes payable and long-term debt is carried at amortized cost; however, the Company estimates the fair value of notes payable and long-term debt for disclosure purposes. The following table presents the carrying amounts and fair values of the Company's notes payable and long-term debt, by hierarchy level as of the periods indicated (in millions):
August 31, 2025August 31, 2024
Fair Value HierarchyCarrying AmountFair ValueCarrying AmountFair Value
Notes payable and long-term debt: (Note 7)
3.950% Senior Notes
Level 2
(1)
$499 $496 $498 $487 
3.600% Senior Notes
Level 2
(1)
$498 $480 $497 $468 
3.000% Senior Notes
Level 2
(1)
$595 $551 $594 $529 
1.700% Senior Notes
Level 2
(1)
$499 $492 $499 $476 
4.250% Senior Notes
Level 2
(1)
$497 $500 $496 $495 
5.450% Senior Notes
Level 2
(1)
$297 $308 $296 $306 
(1)The fair value estimates are based upon observable market data.
Refer to Note 10 – “Postretirement and Other Employee Benefits” for disclosure surrounding the fair value of the Company’s pension plan assets.

Historical Timeline

Fiscal YearFiled
2025Oct 17, 2025Showing above
2024Oct 28, 2024
2023Oct 20, 2023
2022Oct 25, 2022
2021Oct 22, 2021
2020Oct 22, 2020
2019Oct 22, 2019

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.

Other Available Disclosures

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