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within stockholders’ equity. Scheduled maturities of our market- able securities are as follows: 

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Marketable securities with a market value of $2.3 million as of May 30, 2010, were pledged as collateral for certain derivative contracts. 

The fair values and carrying amounts of long-term debt, includ- ing the current portion, were $5,958.8 million and $5,375.8 million as of May 30, 2010.The fair value of long-term debt was estimated using market quotations and discounted cash flows based on our current incremental borrowing rates for similar types of instruments. 

Risk Management Activities As a part of our ongoing operations, we are exposed to market risks such as changes in interest rates, foreign currency exchange rates, and commodity prices. To man- age these risks, we may enter into various derivative transactions (e.g., futures, options, and swaps) pursuant to our established policies. 

Commodity Price Risk Many commodities we use in the produc- tion and distribution of our products are exposed to market price risks. We utilize derivatives to manage price risk for our principal ingredients and energy costs, including grains (oats, wheat, and corn), oils (principally soybean), nonfat dry milk, natural gas, and diesel fuel. Our primary objective when entering into these deriv- ative contracts is to achieve certainty with regard to the future price of commodities purchased for use in our supply chain. We manage our exposures through a combination of purchase orders, long-term contracts with suppliers, exchange-traded futures and options, and over-the-counter options and swaps. We offset our exposures based on current and projected market conditions and generally seek to acquire the inputs at as close to our planned cost as possible. 

As discussed in Note 2, we do not perform the assessments required to achieve hedge accounting for commodity derivative positions. Pursuant to this policy, unallocated corporate items for fiscal 2010 and fiscal 2009 included: 

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As of May 30, 2010, the net notional value of commodity derivatives was $464.2 million, of which $295.2 million related to agricultural inputs and $169.0 million related to energy inputs. These contracts relate to inputs that generally will be utilized within the next 12 months. 

Interest Rate Risk We are exposed to interest rate volatility with regard to future issuances of fixed-rate debt, and existing and future issuances of floating-rate debt. Primary exposures include U.S. Treasury rates, LIBOR, and commercial paper rates in the United States and Europe. We use interest rate swaps and for- ward-starting interest rate swaps to hedge our exposure to interest rate changes, to reduce the volatility of our financing costs, and to achieve a desired proportion of fixed-rate versus floating-rate debt, based on current and projected market con- ditions. Generally under these swaps, we agree with a counter- party to exchange the difference between fixed-rate and floating- rate interest amounts based on an agreed upon notional principal amount. 

Floating Interest Rate Exposures – Except as discussed below, floating-to-fixed interest rate swaps are accounted for as cash flow hedges, as are all hedges of forecasted issuances of debt. Effectiveness is assessed based on either the perfectly effective hypothetical derivative method or changes in the present value of interest payments on the underlying debt. Effective gains and losses deferred to AOCI are reclassified into earnings over the life 

