Fair Value (Tables)

6 Months Ended

May 02, 2015

Fair value of financial assets and liabilities

As of May 2, 2015 and November 1, 2014, the Company held $109.2 million and $121.3 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below.



	May 2, 2015
	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	$	188,633	$	—	$	—	$	188,633
Corporate obligations (1)	—		338,377		—		338,377
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,233,377		—		2,233,377
Floating rate notes, issued at par	—		40,073		—		40,073
Floating rate notes (1)	—		65,203		—		65,203
Securities with greater than one year to maturity:
Floating rate notes, issued at par	—		99,909		—		99,909
Other assets:
Deferred compensation investments	22,573		—		—		22,573
Total assets measured at fair value	$	211,206	$	2,776,939	$	—	$	2,988,145
Liabilities
Forward foreign currency exchange contracts (2)	—		10,415		—		10,415
Contingent consideration	—		—		4,741		4,741
Interest rate swap agreements	—		19,733		—		19,733
Total liabilities measured at fair value	$	—	$	30,148	$	4,741	$	34,889


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of May 2, 2015 was $2.4 billion.


(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 1, 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	$	178,067	$	—	$	—	$	178,067
Corporate obligations (1)	—		269,901		—		269,901
Short - term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,122,120		—		2,122,120
Floating rate notes, issued at par	—		85,061		—		85,061
Floating rate notes (1)	—		50,010		—		50,010
Securities with greater than one year to maturity:
Floating rate notes, issued at par	—		40,044		—		40,044
Other assets:
Deferred compensation investments	21,393		—		—		21,393
Interest rate swap agreements	—		1,723		—		1,723
Total assets measured at fair value	$	199,460	$	2,568,859	$	—	$	2,768,319
Liabilities
Contingent consideration	—		—		4,806		4,806
Forward foreign currency exchange contracts (2)	—		10,093		—		10,093
Total liabilities measured at fair value	$	—	$	10,093	$	4,806	$	14,899


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of November 1, 2014 was $2.3 billion.


(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	0% - 10%
Timing of cash flows	1 year
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) from November 1, 2014 to May 2, 2015:



	Contingent Consideration
Balance as of November 1, 2014	$	4,806
Fair value adjustment (1)	67
Effect of foreign currency	(132		)
Balance as of May 2, 2015	$	4,741

(1) 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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