Fair Value Measurement

9 Months Ended

Jul. 26, 2013

Fair Value Measurement [Abstract]

Fair Value Measurement

NOTE 7 – FAIR VALUE MEASUREMENT

We measure certain assets and liabilities at fair value or disclose the fair value of certain assets and liabilities recorded at cost in the Condensed Consolidated Financial Statements on both a recurring and nonrecurring basis. Fair value is defined as an exit price, or the amount that would be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value accounting rules establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs must be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the factors market participants would use in valuing the asset or liability based upon the best information available. Assets and liabilities measured at fair value are to be categorized into one of the three hierarchy levels based on the inputs used in the valuation. We classify assets and liabilities in their entirety based on the lowest level of input significant to the fair value measurement. There were no transfers between levels for all periods presented. The three levels are defined as follows:

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

• Level 2: Observable inputs based on quoted prices for similar assets and liabilities in active markets, or quoted prices for identical assets and liabilities in inactive markets.

• Level 3: Unobservable inputs that reflect an entity's own assumptions about what inputs a market participant would use in pricing the asset or liability based on the best information available in the circumstances.

Recurring Fair Value Measurements

The following tables provide information by level for assets and liabilities that are recorded at fair value on a recurring basis:

		Fair Value at	Fair Value Measurements Using Inputs Considered as
	July 26, 2013		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	90,023	$	90,023	$	—	$	—
Restricted cash 1		13,539		13,539		—		—
Foreign currency contracts 2		94		—		94		—
Total Assets	$	103,656	$	103,562	$	94	$	—

		Fair Value at	Fair Value Measurements Using Inputs Considered as
	October 26, 2012		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	122,273	$	122,273	$	—	$	—
Restricted cash 1		19,907		19,907		—		—
Foreign currency contracts 2		16		—		16		—
Total Assets	$	142,196	$	142,180	$	16	$	—

		Fair Value at	Fair Value Measurements Using Inputs Considered as
	July 27, 2012		Level 1		Level 2		Level 3
Assets
Cash equivalents	$	76,325	$	76,325	$	—	$	—
Restricted cash 1		19,828		19,828		—		—
Foreign currency contracts 2		42		—		42		—
Total Assets	$	96,195	$	96,153	$	42	$	—

¹ Restricted cash represents cash that is restricted from withdrawal and primarily serves as collateral for our liability insurance programs.

² Foreign currency contracts are included in prepaid expenses and other when in an asset position and other accrued liabilities when in a liability position in the Condensed Consolidated Balance Sheets. The fair value was estimated using observable market data for similar financial instruments. See Note 8 for additional information on derivative financial instruments.

The following tables provide information regarding the estimated fair value of our outstanding debt, which is recorded at carrying value in the Condensed Consolidated Balance Sheets:

		Fair Value at	Fair Value Measurements Using Inputs Considered as
	July 26, 2013		Level 1		Level 2		Level 3
Debt 3
Publicly traded debt	$	1,099,837	$	1,099,837	$	—	$	—
Non-publicly traded debt		428,093		—		428,093		—
Total Debt	$	1,527,930	$	1,099,837	$	428,093	$	—

		Fair Value at	Fair Value Measurements Using Inputs Considered as
	October 26, 2012		Level 1		Level 2		Level 3
Debt 3
Publicly traded debt	$	1,141,105	$	1,141,105	$	—	$	—
Non-publicly traded debt		150,575		—		150,575		—
Total Debt	$	1,291,680	$	1,141,105	$	150,575	$	—

		Fair Value at	Fair Value Measurements Using Inputs Considered as
	July 27, 2012		Level 1		Level 2		Level 3
Debt 3
Publicly traded debt	$	1,130,506	$	1,130,506	$	—	$	—
Non-publicly traded debt		172,044		—		172,044		—
Total Debt	$	1,302,550	$	1,130,506	$	172,044	$	—

³ Debt is recorded at carrying value of $1,428,605, $1,151,109 and $1,172,948 in the Condensed Consolidated Balance Sheets as of July 26, 2013, October 26, 2012 and July 27, 2012, respectively. The fair value of our publicly traded debt is based on quoted prices (unadjusted) in active markets. The fair value of our non-publicly traded debt was estimated using a discounted cash flow analysis based on our current borrowing costs for debt with similar maturities. In addition, the carrying values of our commercial paper included in non-publicly traded debt approximate the financial instrument's fair value as the maturities are less than three months. See Note 9 for additional information on debt.

Nonrecurring Fair Value Measurements

We measure certain assets at fair value on a nonrecurring basis. These assets primarily include assets acquired and liabilities assumed as part of an acquisition. See Note 2 for additional information on our acquisitions.