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Fair Value of Financial Instruments
 12 Months Ended
May 28, 2016
Fair Value Disclosures [Abstract]  
Fair Value Disclosures
Fair Value of Financial Instruments
The company's financial instruments consist of cash equivalents, marketable securities, accounts and notes receivable, deferred compensation plan, accounts payable, debt, redeemable noncontrolling interests, and foreign currency exchange contracts. The company's financial instruments, other than long-term debt, are recorded at fair value. The carrying value and fair value of the company's long-term debt, including current maturities, is as follows for the periods indicated:
(In millions)
 
May 28, 2016
 
May 30, 2015
Carrying value
 
$
221.9

 
$
289.8

Fair value
 
$
241.7

 
$
315.1



The following describes the methods the company uses to estimate the fair value of financial assets and liabilities, of which there have been no significant changes in the current period:

Available-for-sale securities — The company's available-for-sale marketable securities primarily include exchange traded and fixed income mutual funds, mortgage-backed debt securities, government obligations and corporate debt securities and are recorded at fair value using quoted prices for similar securities. During the third quarter of fiscal 2016, the company adjusted the investment portfolio from individual investments to mutual funds to more broadly diversify the asset base.

Foreign currency exchange contracts — The company's foreign currency exchange contracts are valued using an approach based on foreign currency exchange rates obtained from active markets. The estimated fair value of forward currency exchange contracts is based on month-end spot rates as adjusted by current market-based activity.

Deferred compensation plan assets — The company's deferred compensation plan assets primarily include domestic equity large cap and lifestyle mutual funds and are valued using quoted prices for similar securities.

The following tables set forth financial assets and liabilities measured at fair value in the Consolidated Balance Sheets and the respective pricing levels to which the fair value measurements are classified within the fair value hierarchy as of May 28, 2016 and May 30, 2015:
(In millions)
Fair Value Measurements
 
May 28, 2016
 
May 30, 2015
Financial Assets
Quoted Prices With Other Observable Inputs (Level 2)
Management Estimates (Level 3)
 
Quoted Prices With Other Observable Inputs (Level 2)
Management Estimates (Level 3)
Available-for-sale securities:
 
 
 
 
 
Mutual funds - fixed income
$
6.4

$
—

 
$
—

$
—

Mutual funds - equity
0.7

—

 
—

—

Government obligations
0.4

—

 
4.4

—

Corporate debt securities
—

—

 
0.6

—

Asset-backed securities
—

—

 
0.2

—

Mortgage-backed securities
—

—

 
0.5

—

Foreign currency forward contracts
0.5

—

 
0.7

—

Deferred compensation plan
7.9

—

 
7.9

—

Total
$
15.9

$
—

 
$
14.3

$
—

 
 
 
 
 
 
Financial Liabilities
 
 
 
 
 
Foreign currency forward contracts
$
0.8

$
—

 
$
0.2

$
—

Contingent consideration
—

2.7

 
—

2.6

Total
$
0.8

$
2.7

 
$
0.2

$
2.6



The table below presents a reconciliation for liabilities measured at fair value using significant unobservable inputs (Level 3) (in millions):
(In millions)
 
 
 
 
Contingent Consideration
 
May 28, 2016
 
May 30, 2015
Beginning balance
 
$
2.6

 
$
3.7

Net realized losses
 
—

 
1.1

Foreign currency translation adjustments
 
(0.1
)
 
(0.4
)
Settlements
 
(2.5
)
 
(1.8
)
Purchases or additions
 
2.7

 
—

Ending balance
 
$
2.7

 
$
2.6



The contingent consideration liabilities represent future payment obligations that relate to business and product line acquisitions. These payments are based on the future performance of the acquired businesses. The contingent consideration liabilities are valued using estimates based on discount rates that reflect the risk involved and the projected sales and earnings of the acquired businesses. The estimates are updated and the liabilities are adjusted to fair value on a quarterly basis.

The following is a summary of the carrying and market values of the company's marketable securities as of the dates indicated:
 
 
May 28, 2016
(In millions)
 
Cost
 
Unrealized Gain
 
Unrealized Loss
 
Market Value
Mutual funds - fixed income
 
$
6.4

 
$
—

 
$
—

 
$
6.4

Mutual funds - equity
 
0.7

 
—

 
—

 
0.7

Government obligations
 
0.4

 
—

 
—

 
0.4

Total
 
$
7.5

 
$
—

 
$
—

 
$
7.5

 
 
 
 
 
 
 
 
 
 
 
May 30, 2015
(In millions)
 
Cost
 
Unrealized Gain
 
Unrealized Loss
 
Market Value

Asset-backed securities
 
$
0.2

 
$
—

 
$
—

 
$
0.2

Corporate debt securities
 
0.6

 
—

 
—

 
0.6

Government obligations
 
4.4

 
—

 
—

 
4.4

Mortgage-backed securities
 
0.5

 
—

 
—

 
0.5

Total
 
$
5.7

 
$
—

 
$
—

 
$
5.7



Maturities of debt securities included in marketable securities as of May 28, 2016, are as follows:
(In millions)
 
Cost
 
Market
Value
Due within one year
 
$
0.4

 
$
0.4

Total
 
$
0.4

 
$
0.4