Fair Value of Financial Instruments

The following disclosure of the estimated fair value of financial instruments presents amounts that have been determined using available market information and appropriate valuation methodologies. The estimated fair values of the Company's financial instruments as of October 30, 2011 and April 30, 2011 were as follows (in thousands):



	October 30, 2011				April 30, 2011
	Carrying				Carrying
	Amount		Fair Value		Amount		Fair Value
Financial assets:
Cash and cash equivalents	$	228,040	$	228,040	$	314,765	$	314,765
Equity method investment	—		—		31,142		38,671
Total	$	228,040	$	228,040	$	345,907	$	353,436

Financial liabilities:
Convertible debt	$	40,015	$	87,105	$	40,015	$	113,023
Short-term debt	4,281		4,281		—		—
Contingent consideration	14,340		14,340		—		—
Total	$	58,636	$	105,726	$	40,015	$	113,023

Cash and cash equivalents - The fair value of cash and cash equivalents approximates its carrying value.

Convertible debt -The fair value of the 5% Convertible Notes is based on the market price in the open market as of or close to the respective dates. The difference between the carrying value and the fair value is primarily due to the spread between the conversion price and the market value of the shares underlying the conversion.

Short-term debt - The fair value of the short-term debt is determined by discounting the contractual cash flows at the current rates charged for similar debt instruments.

Equity method investment - The fair value of the equity method investment is based on the quoted market price of the equity security listed on a foreign stock exchange.

Contingent consideration - The fair value of the contingent consideration is estimated using a probability-weighted discounted cash flow model. (See "Note 3. Acquisition of Ignis ASA").

The Company has not estimated the fair value of its minority investments in three privately held companies as it is not practicable to estimate the fair value of these investments because of the lack of a quoted market price and the inability to estimate fair value without incurring excessive costs. As of October 30, 2011, the carrying value of the Company's minority investments in these three privately held companies was $12.3 million, which management believes is not impaired.

The following table presents a reconciliation of the beginning and ending balances of the Company's liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the three months ended October 31, 2011 (in thousands), consisting of contingent consideration recorded in connection with the acquisition of Ignis:



	Three Months Ended
	October 30, 2011
Balance at July 31, 2011	$	13,598
Accretion	742
Balance at October 30, 2011	$	14,340