Fair Value Measurements
 9 Months Ended
Feb. 28, 2014
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
Fair value measurements are principally applied to (1) financial assets and liabilities such as marketable equity securities and debt securities, (2) investments in equity and other securities and (3) derivative instruments consisting of interest rate swaps. These items are marked-to-market at each reporting period to fair value. The information in the following paragraphs and tables primarily addresses matters relative to these financial assets and liabilities.
•
Level 1 – Inputs are quoted prices in active markets for identical assets or liabilities. The Company’s Level 1 assets include money market investments and marketable equity securities.
•
Level 2 – Inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. The Company’s Level 2 assets and liabilities primarily include Greek bonds, time deposits, interest rate swaps, pension plan assets (equity securities, debt securities and other) and foreign currency exchange contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data.
•
Level 3 – Inputs are unobservable for the asset or liability. The Company’s Level 3 assets include other equity investments. See the section below titled Level 3 Valuation Techniques for further discussion of how the Company determines fair value for investments classified as Level 3.
The following table provides information by level for assets and liabilities that are measured at fair value on a recurring basis at February 28, 2014 and May 31, 2013:
 
 
 
Fair Value Measurements
 
Fair Value at
February 28, 2014
 
Using Inputs Considered as
(in millions)
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Money market funds
$
110.8

 
$
110.8

 
$
—

 
$
—

Time deposits
17.0

 
—

 
17.0

 
—

Greek bonds
7.7

 
—

 
7.7

 
—

Pension plan assets
147.6

 
—

 
147.6

 
—

Foreign currency exchange contracts
0.9

 
—

 
0.9

 
—

Equity securities
2.3

 
2.2

 
—

 
0.1

Total assets
$
286.3

 
$
113.0

 
$
173.2

 
$
0.1

Liabilities:
 
 
 
 
 
 
 
Interest rate swaps
$
22.4

 
$
—

 
$
22.4

 
$
—

Foreign currency exchange contracts
0.1

 
—

 
0.1

 
—

Total liabilities
$
22.5

 
$
—

 
$
22.5

 
$
—

 
 
 
 
 
 
 
 
 
 
 
Fair Value Measurements
 
Fair Value at
May 31, 2013
 
Using Inputs Considered as
(in millions)
 
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Money market funds
$
93.1

 
$
93.1

 
$
—

 
$
—

Time deposits
31.5

 
—

 
31.5

 
—

Greek bonds
5.6

 
—

 
5.6

 
—

Pension plan assets
137.6

 
—

 
137.6

 
—

Foreign currency exchange contracts
0.5

 
—

 
0.5

 
—

Equity securities
1.4

 
1.3

 
—

 
0.1

Total assets
$
269.7

 
$
94.4

 
$
175.2

 
$
0.1

Liabilities:
 
 
 
 
 
 
 
Interest rate swaps
$
54.1

 
$
—

 
$
54.1

 
$
—

Foreign currency exchange contracts
0.6

 
—

 
0.6

 
—

Total liabilities
$
54.7

 
$
—

 
$
54.7

 
$
—


Level 3 Valuation Techniques
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. Level 3 financial assets also include certain investment securities for which there is limited market activity where the determination of fair value requires significant judgment or estimation. Level 3 investment securities primarily include other equity investments for which there was a decrease in the observation of market pricing. As of February 28, 2014 and May 31, 2013, these securities were valued primarily using internal cash flow valuation that incorporates transaction details such as contractual terms, maturity, timing and amount of future cash flows, as well as assumptions about liquidity and credit valuation adjustments of marketplace participants.
The estimated fair value of the Company’s long-term debt, including the current portion, at February 28, 2014 and May 31, 2013 was $6,017.9 million and $6,090.4 million, respectively, compared to carrying values of $5,831.7 million and $5,966.4 million, respectively. The fair value of the Company’s traded debt is considered Level 3 and was estimated using quoted market prices for the same or similar instruments, among other inputs. The fair value of the Company’s variable rate term debt was estimated using Bloomberg composite quotes. In determining the fair values and carrying values, the Company considers the terms of the related debt and excludes the impacts of debt discounts and interest rate swaps.
Assets and Liabilities that are Measured at Fair Value on a Nonrecurring Basis
During the three and nine months ended February 28, 2013, the Company measured nonfinancial long-lived assets and liabilities at fair value in conjunction with the impairment of the dental reporting unit. The Company used the income approach to measure the fair value of the reporting unit and related intangible assets. See Note 6 for a full description of key assumptions. The inputs used in the impairment fair value analysis fall within Level 3 due to the significant unobservable inputs used to determine fair value. During the three and nine months ended February 28, 2014, the Company had no significant measurements of assets or liabilities at fair value on a nonrecurring basis subsequent to their initial recognition.