Fair Value Measurements
The estimated fair values and carrying values of our outstanding debt instruments were as follows:
As of August 28, 2025As of August 29, 2024
Fair
Value
Carrying
Value
Fair
Value
Carrying
Value
Notes payable and term loans
$11,570 $11,533 $11,316 $11,343 

The fair values of our debt instruments were estimated based on Level 2 inputs, including the trading price of our notes when available, discounted cash flows, and interest rates based on similar debt issued by parties with credit ratings similar to ours.

Historical Timeline

Fiscal YearFiled
2025Oct 3, 2025Showing above
2024Oct 4, 2024
2023Oct 6, 2023
2022Oct 7, 2022
2021Oct 8, 2021
2020Oct 19, 2020
2019Oct 17, 2019
2018Oct 15, 2018
2017Oct 26, 2017
2016Oct 28, 2016
2015Oct 27, 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.