Fair Value (Tables)

9 Months Ended

Aug. 03, 2013

Fair value of financial assets and liabilities

As of August 3, 2013 and November 3, 2012, the Company held $57.7 million and $38.9 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below.



	August 3, 2013
	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	$	113,010	$	—	$	—	$	113,010
Corporate obligations (1)	—		289,356		—		289,356
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		3,478,510		—		3,478,510
Floating rate notes, issued at par	—		177,336		—		177,336
Floating rate notes (1)	—		39,325		—		39,325
Securities with greater than one year to maturity:
Floating rate notes, issued at par	—		255,050		—		255,050
Floating rate notes (1)	—		40,004		—		40,004
Other assets:
Deferred compensation investments	16,302		—		—		16,302
Total assets measured at fair value	$	129,312	$	4,279,581	$	—	$	4,408,893
Liabilities
Contingent consideration	$	—	$	—	$	8,305	$	8,305
Forward foreign currency exchange contracts (2)	—		774		—		774
Total liabilities measured at fair value	$	—	$	774	$	8,305	$	9,079


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of August 3, 2013 was $3,789.4 million.


(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of August 3, 2013, contracts in an asset position of $3.0 million were netted against contracts in a liability position in the Company's condensed consolidated balance sheet.



	November 3, 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	$	143,876	$	—	$	—	$	143,876
Corporate obligations (1)	—		347,028		—		347,028
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,818,798		—		2,818,798
Floating rate notes, issued at par	—		280,065		—		280,065
Floating rate notes (1)	—		234,280		—		234,280
Securities with greater than one year to maturity:
Floating rate notes, issued at par	—		37,408		—		37,408
Other assets:
Forward foreign currency exchange contracts (2)	—		1,061		—		1,061
Deferred compensation investments	28,480		—		—		28,480
Total assets measured at fair value	$	172,356	$	3,718,640	$	—	$	3,890,996
Liabilities
Contingent consideration	—		—		12,219		12,219
Total liabilities measured at fair value	$	—	$	—	$	12,219	$	12,219


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of November 3, 2012 was $3,327.5 million.


(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of November 3, 2012, contracts in a liability position of $1.9 million were netted against contracts in an asset position in the Company's condensed consolidated balance sheet.

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	$9,000
Discount rate	8% - 10%
Timing of cash flows	1 - 26 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 November 3, 2012 and August 3, 2013:



	Contingent Consideration
Balance as of November 3, 2012	$	12,219
Payment made (1)	(4,000		)
Fair value adjustment (2)	86
Balance as of August 3, 2013	$	8,305


(1)	The payment is reflected in the Company's condensed consolidated 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.


(2)	Recorded in research and development expense in the Company's condensed consolidated statements of income.

- 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 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 (loss) 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, issues, 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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