Fair Value (Tables)

9 Months Ended

Aug. 01, 2015

Fair value of financial assets and liabilities

As of August 1, 2015 and November 1, 2014, the Company held $81.9 million and $121.3 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below.



	August 1, 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	$	166,364	$	—	$	—	$	166,364
Corporate obligations (1)	—		309,185		—		309,185
Short-term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,281,780		—		2,281,780
Floating rate notes, issued at par	—		149,861		—		149,861
Floating rate notes (1)	—		110,823		—		110,823
Other assets:
Deferred compensation investments	24,465		—		—		24,465
Total assets measured at fair value	$	190,829	$	2,851,649	$	—	$	3,042,478
Liabilities
Forward foreign currency exchange contracts (2)	—		7,024		—		7,024
Contingent consideration	—		—		2,880		2,880
Interest rate swap agreements	—		19,753		—		19,753
Total liabilities measured at fair value	$	—	$	26,777	$	2,880	$	29,657


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of August 1, 2015 was $2.7 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	$3,000
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 August 1, 2015:



	Contingent Consideration
Balance as of November 1, 2014	$	4,806
Payment made (1)	(2,000		)
Fair value adjustment (2)	(146		)
Effect of foreign currency	220
Balance as of August 1, 2015	$	2,880

(1)The payment is reflected in the statements of cash flows as cash used for 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.