Fair Value (Tables)

6 Months Ended

May 03, 2014

Fair value of financial assets and liabilities

As of May 3, 2014 and November 2, 2013, the Company held $33.7 million and $45.6 million, respectively, of cash that was excluded from the tables below.



	May 3, 2014
	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	$	151,005	$	—	$	—	$	151,005
Corporate obligations (1)	—		218,049		—		218,049
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		3,879,027		—		3,879,027
Floating rate notes, issued at par	—		395,391		—		395,391
Floating rate notes (1)	—		89,997		—		89,997
Securities with greater than one year to maturity:
Floating rate notes, issued at par	—		40,020		—		40,020
Other assets:
Deferred compensation investments	19,235		—		—		19,235
Forward foreign currency exchange contracts (2)	—		2,955		—		2,955
Total assets measured at fair value	$	170,240	$	4,625,439	$	—	$	4,795,679
Liabilities
Contingent consideration	$	—	$	—	$	4,833	$	4,833
Total liabilities measured at fair value	$	—	$	—	$	4,833	$	4,833


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of May 3, 2014 was $3,796.9 million.


(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. See Note 10, Derivatives, for more information related to the Company's master netting arrangements.



	November 2, 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	$	186,896	$	—	$	—	$	186,896
Corporate obligations (1)	—		159,556		—		159,556
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		3,764,213		—		3,764,213
Floating rate notes, issued at par	—		207,521		—		207,521
Floating rate notes (1)	—		113,886		—		113,886
Securities with greater than one year to maturity:
Floating rate notes, issued at par	—		205,203		—		205,203
Other assets:
Forward foreign currency exchange contracts (2)	—		2,267		—		2,267
Deferred compensation investments	17,431		—		—		17,431
Total assets measured at fair value	$	204,327	$	4,452,646	$	—	$	4,656,973
Liabilities
Contingent consideration	—		—		6,479		6,479
Total liabilities measured at fair value	$	—	$	—	$	6,479	$	6,479


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of November 2, 2013 was $3,824.0 million.


(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. See Note 10, Derivatives, for more information related to the Company's master netting arrangements.

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	$5,000
Discount rate	7% - 10%
Timing of cash flows	1 - 17 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) for the six months ended May 3, 2014:



	Contingent Consideration
Balance as of November 2, 2013	$	6,479
Payment made (1)	(2,000		)
Fair value adjustment (2)	354
Balance as of May 3, 2014	$	4,833


(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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