FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the Company’s financial instruments that are carried at fair value:
 November 30, 2025December 1, 2024
  Fair Value 
Estimated Using
 Fair Value 
Estimated Using
 Fair Value
Level 1 Inputs(1)
Level 2 Inputs(2)
Fair Value
Level 1 Inputs(1)
Level 2 Inputs(2)
 (Dollars in millions)
Financial assets carried at fair value
Rabbi trust assets$107.7 $107.7 $— $95.4 $95.4 $— 
Short-term investments in marketable securities90.9 — 90.9 — — — 
Derivative instruments(3)
6.8 — 6.8 17.6 — 17.6 
Total$205.4 $107.7 $97.7 $113.0 $95.4 $17.6 
Financial liabilities carried at fair value
Derivative instruments(3)
13.4 — 13.4 9.5 — 9.5 
_____________
(1)Fair values estimated using Level 1 inputs are inputs which consist of quoted prices in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date. Rabbi trust assets consist of marketable equity securities. See Note 10 for more information on Rabbi trust assets.
(2)Fair values estimated using Level 2 inputs are inputs, other than quoted prices, that are observable for the asset or liability, either directly or indirectly and include among other things, quoted prices for similar assets or liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable. Short-term investments in marketable securities consist of fixed-income securities. For forward foreign exchange contracts, inputs include foreign currency exchange and interest rates and, where applicable, credit default swap prices.
(3)The Company’s cash flow hedges are subject to International Swaps and Derivatives Association, Inc. master agreements. These agreements permit the net settlement of these contracts on a per-institution basis. Refer to Note 6 for more information.
The following table presents the carrying value, including related accrued interest, and estimated fair value of the Company’s financial instruments that are carried at adjusted historical cost:
 November 30, 2025December 1, 2024
 Carrying
Value
Estimated
Fair Value
Carrying
Value
Estimated
Fair Value
 (Dollars in millions)
Financial liabilities carried at adjusted historical cost
4.000% senior notes due 2030(1)
$550.8 $559.7 $— $— 
3.375% senior notes due 2027(1)
— — 502.5 498.1 
3.50% senior notes due 2031(1)
500.3 467.8 499.6 440.8 
Short-term borrowings— — 5.5 5.5 
Total$1,051.1 $1,027.5 $1,007.6 $944.4 
_____________
(1)Fair values are estimated using Level 2 inputs and incorporate mid-market price quotes. Level 2 inputs are inputs other than quoted prices, that are observable for the liability, either directly or indirectly and include among other things, quoted prices for similar liabilities in markets that are active or inactive as well as inputs other than quoted prices that are observable.

Historical Timeline

Fiscal YearFiled
2025Jan 28, 2026Showing above
2024Jan 29, 2025
2023Jan 25, 2024
2022Jan 25, 2023
2021Jan 26, 2022
2020Jan 27, 2021
2019Jan 30, 2020
2018Feb 5, 2019
2017Feb 7, 2018
2016Feb 9, 2017
2015Feb 11, 2016

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.