Fair Value (Tables)

9 Months Ended

Jul. 30, 2016

Fair value of financial assets and liabilities

As of July 30, 2016 and October 31, 2015, the Company held $58.8 million and $76.4 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below.



	July 30, 2016
	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	$	224,363	$	—	$	—	$	224,363
Corporate obligations (1)	—		820,481		—		820,481
Short-term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		2,192,194		—		2,192,194
Floating rate notes, issued at par	—		30,003		—		30,003
Floating rate notes (1)	—		477,567		—		477,567
Other assets:
Deferred compensation investments	26,892		—		—		26,892
Forward foreign currency exchange contracts (2)	—		633		—		633
Total assets measured at fair value	$	251,255	$	3,520,878	$	—	$	3,772,133
Liabilities
Contingent consideration	—		—		4,093		4,093
Total liabilities measured at fair value	$	—	$	—	$	4,093	$	4,093


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of July 30, 2016 was $3.3 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.



	October 31, 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	$	198,853	$	—	$	—	$	198,853
Corporate obligations (1)	—		609,082		—		609,082
Short-term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)	—		1,899,374		—		1,899,374
Floating rate notes, issued at par	—		99,648		—		99,648
Floating rate notes (1)	—		145,553		—		145,553
Other assets:
Deferred compensation investments	24,124		—		—		24,124
Total assets measured at fair value	$	222,977	$	2,753,657	$	—	$	2,976,634
Liabilities
Contingent consideration	—		—		2,843		2,843
Forward foreign currency exchange contracts (2)	—		3,083		—		3,083
Interest rate swap agreements	—		32,737		—		32,737
Total liabilities measured at fair value	$	—	$	35,820	$	2,843	$	38,663


(1)	The amortized cost of the Company’s investments classified as available-for-sale as of October 31, 2015 was $2.6 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	$4,500
Discount rate	0% - 10%
Timing of cash flows	1 - 3 years
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 October 31, 2015 to July 30, 2016:



	Contingent Consideration
Balance as of October 31, 2015	$	2,843
Contingent consideration liability recorded (1)	1,500
Fair value adjustment (2)	(46		)
Effect of foreign currency	(204		)
Balance as of July 30, 2016	$	4,093

(1) Represents contingent consideration related to acquisitions that were not material to the Company on either an individual or aggregate basis.

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