Fair Value (Tables)

9 Months Ended

Aug. 04, 2012

Fair value of financial assets and liabilities

As of August 4, 2012 and October 29, 2011, the Company held $154.5 million and $31.6 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below.



	August 4, 2012
	Fair Value measurement at Reporting Date using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets
Cash equivalents:
Available-for-sale:
Institutional money market funds	$	110,313	$	—	$	—	$	110,313
Corporate obligations (1)	—		310,329		—		310,329
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,745,579		—		2,745,579
Floating rate notes, issued at par	—		210,068		—		210,068
Floating rate notes (1)	—		167,773		—		167,773
Securities with greater than one year to maturity:
Floating rate notes, issued at par			50,002				50,002
Floating rate notes (1)	—		16,522		—		16,522
Other assets:
Deferred compensation investments	27,850		—		—		27,850
Total assets measured at fair value	$	138,163	$	3,500,273	$	—	$	3,638,436
Liabilities
Forward foreign currency exchange contracts (2)	$	—	$	4,031	$	—	$	4,031
Contingent consideration	—		—		12,316		12,316
Total liabilities measured at fair value	$	—	$	4,031	$	12,316	$	16,347


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of August 4, 2012 was $3,242.5 million.


(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of August 4, 2012, contracts in an asset position of $1.1 million were netted against contracts in a liability position in the condensed consolidated balance sheet.



	October 29, 2011
	Fair Value measurement at Reporting Date using:
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Other Unobservable Inputs (Level 3)		Total
Assets
Cash equivalents:
Available-for-sale:
Institutional money market funds	$	1,278,121	$	—	$	—	$	1,278,121
Corporate obligations (1)	—		95,948		—		95,948
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,169,078		—		2,169,078
Floating rate notes (1)	—		17,704		—		17,704
Other assets:
Forward foreign currency exchange contracts (2)	—		2,472		—		2,472
Deferred compensation investments	26,410		—		—		26,410
Other investments	1,135		—		—		1,135
Interest rate swap agreements	—		22,187		—		22,187
Total assets measured at fair value	$	1,305,666	$	2,307,389	$	—	$	3,613,055
Liabilities
$375 million aggregate principal 5.0% debt (3)	$	—	$	396,337	$	—	$	396,337
Contingent consideration	—		—		13,973		13,973
Total liabilities measured at fair value	$	—	$	396,337	$	13,973	$	410,310


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2011 was $2,284.9 million.


(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of October 29, 2011, contracts in a liability position of $0.8 million were netted against contracts in an asset position in the condensed consolidated balance sheet.


(3)	Equal to the accreted notional value of the debt plus the fair value of the interest rate component of the long-term debt. The fair value of the long-term debt as of October 29, 2011 was $413.4 million, which is classified as a level 1 measurement according to the fair value hierarchy.

The fair value measurement of the contingent consideration encompasses the following significant unobservable inputs

The fair value measurement of the contingent consideration encompasses the following significant unobservable inputs:




Unobservable Inputs	Range
Estimated contingent consideration payments	$13,000
Discount rate	7% - 10%
Timing of cash flows	1 - 16 months
Probability of achievement	100%

Change in fair value of contingent consideration measured with significant unobservable inputs

The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) as of October 29, 2011 and August 4, 2012:



	Contingent Consideration
Balance as of October 30, 2010	$	—
Contingent consideration liability recorded	13,790
Fair value adjustment (1)	183
Balance as of October 29, 2011	$	13,973
Payment made (2)	(2,000		)
Fair value adjustment (1)	343
Balance as of August 4, 2012	$	12,316


(1)	Recorded in research and development expense in the condensed consolidated statements of income.


(2)	The payment is reflected in the statements of cash flows as cash used in financing activities related to the liability recognized at fair value as of the acquisition date and as cash provided by operating activities related to the fair value adjustments previously recognized in earnings.

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issuances, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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