Fair Value Measurements

12 Months Ended

Nov. 30, 2020

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

FAIR VALUE MEASUREMENTS

Fair value can be measured using valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

•Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3: Unobservable inputs that reflect management’s own assumptions.

Our population of assets and liabilities subject to fair value measurements on a recurring basis are as follows:


			Fair value measurements using fair value hierarchy as of November 30, 2020
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	423.6	$	423.6	$	—
Insurance contracts	126.0		—		126.0
Bonds and other long-term investments	3.9		3.9		—
Interest rate derivatives	43.1		—		43.1
Foreign currency derivatives	1.4		—		1.4

Total	$	598.0	$	427.5	$	170.5
Liabilities:

Foreign currency derivatives	8.2		—		8.2
Cross currency contracts	18.8		—		18.8
Total	$	27.0	$	—	$	27.0


			Fair value measurements using fair value hierarchy as of November 30, 2019
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	155.4	$	155.4	$	—
Insurance contracts	121.7		—		121.7
Bonds and other long-term investments	2.7		2.7		—
Interest rate derivatives	20.9		—		20.9
Foreign currency derivatives	3.3		—		3.3
Cross currency contracts	3.2		—		3.2
Total	$	307.2	$	158.1	$	149.1
Liabilities:

Foreign currency derivatives	3.6		—		3.6

Total	$	3.6	$	—	$	3.6

The fair values of insurance contracts are based upon the underlying values of the securities in which they are invested and are from quoted market prices from various stock and bond exchanges for similar type assets. The fair values of bonds and other long-term investments are based on quoted market prices from various stock and bond exchanges. The fair values for interest rate and foreign currency derivatives are based on values for similar instruments using models with market-based inputs.

At November 30, 2020 and 2019, we had no financial assets or liabilities that were subject to a level 3 fair value measurement.