Fair Value

9 Months Ended

Jul. 30, 2011

Fair Value [Abstract]

Fair Value

Note 8 — Fair Value

     The Company defines fair value as the price that would be received to sell an asset or be paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company applies the following fair value hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).

     Level 1 — Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

     Level 2 — Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability.

     Level 3 — Level 3 inputs are unobservable inputs for the asset or liability in which there is little, if any, market activity for the asset or liability at the measurement date. As of October 30, 2010 the Company held no assets or liabilities valued using level 3 inputs.

     The table below sets forth by level the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of July 30, 2011 and October 30, 2010. The table excludes cash on hand and assets and liabilities that are measured at historical cost or any basis other than fair value.

	July 30, 2011								October 30, 2010
	Fair Value measurement at								Fair Value measurement at
	Reporting Date using:								Reporting Date using:
	Quoted								Quoted
	Prices in								Prices in
	Active								Active
	Markets		Significant		Significant				Markets		Significant
	for		Other		Other				for		Other
	Identical		Observable		Unobservable				Identical		Observable
	Assets		Inputs		Inputs				Assets		Inputs
	(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		Total
Assets
Cash equivalents:
Available-for-sale:
Institutional money market funds	$	1,285,049	$	—	$	—	$	1,285,049	$	921,034	$	—	$	921,034
Corporate obligations		—		39,983		—		39,983		—		99,959		99,959
Short — term investments:
Available-for-sale:
Securities with one year or less to maturity:
Corporate obligations (1)		—		2,123,434		—		2,123,434		—		1,520,220		1,520,220
Floating rate notes, issued at par		—		—		—		—		—		50,000		50,000
Securities with greater than one year to maturity:
Floating rate notes (1)		—		17,664		—		17,664		—		17,548		17,548
Other assets:
Forward foreign currency exchange contracts (2)		—		4,957		—		4,957		—		7,256		7,256
Deferred compensation investments		26,930		—		—		26,930		8,690		—		8,690
Other investments		1,316		—		—		1,316		1,317		—		1,317
Interest rate swap agreements		—		22,619		—		22,619		—		26,801		26,801
Total assets measured at fair value	$	1,313,295	$	2,208,657	$	—	$	3,521,952	$	931,041	$	1,721,784	$	2,652,825
Liabilities
Long-term debt
$375 million aggregate principle 5.0% debt (3)	$	—	$	396,690	$	—	$	396,690	$	—	$	400,635	$	400,635
Contingent consideration (4)		—		—		13,790		13,790		—		—		—
Total liabilities measured at fair value	$	—	$	396,690	$	13,790	$	410,480	$	—	$	400,635	$	400,635

(1)	The amortized cost of the Company’s investments classified as available-for-sale as of July 30, 2011 and October 30, 2010 was $2,142.7 million and $1,639.1 million, respectively.
(2)	The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of July 30, 2011 and October 30, 2010, contracts in a liability position of $0.6 million and $0.8 million, respectively, were netted against contracts in an asset position in the condensed consolidated balance sheets.
(3)	Equal to the accreted notional value of the debt plus the mark-to-market of the interest rate component of the long-term debt to fair value. The fair value of the long-term debt as of July 30, 2011 and October 30, 2010 was $413.5 million and $416.3 million, respectively.
(4)	As of July 30, 2011 there was no significant change to the fair value of the contingent consideration related to the Lyric acquisition since the date the acquisition was completed.

     The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments:

     Cash equivalents and short-term investments — These investments are adjusted to fair value based on quoted market prices or are determined using a yield curve model based on current market rates.

     Deferred compensation plan investments and other investments — The fair value of these mutual fund, money market fund and equity investments are based on quoted market prices.

     Long-term debt — The fair value of long-term debt is based on quotes received from third-party banks.

     Interest rate swap agreements — The fair value of interest rate swap agreements is based on quotes received from third-party banks. These values represent the estimated amount the Company would receive or pay to terminate the agreements taking into consideration current interest rates as well as the creditworthiness of the counterparty.

     Forward foreign currency exchange contracts — The estimated fair value of forward foreign currency exchange contracts, which includes derivatives that are accounted for as cash flow hedges and those that are not designated as cash flow hedges, is based on the estimated amount the Company would receive if it sold these agreements at the reporting date taking into consideration current interest rates as well as the creditworthiness of the counterparty for assets and the Company’s creditworthiness for liabilities.

     Contingent consideration — The fair value of contingent consideration was estimated utilizing the income approach and is based upon significant inputs not observable in the market. Changes in the fair value of the contingent consideration subsequent to the acquisition date that are primarily driven by assumptions pertaining to the achievement of the defined milestones will be recognized in earnings in the period of the estimated fair value change.

Financial Instruments Not Recorded at Fair Value on a Recurring Basis

     The Company accounts for its equity investments in privately held companies under the cost method. These investments are subject to periodic impairment review and measured and recorded at fair value when they are deemed to be other-than-temporarily impaired. The aggregate carrying value of the Company’s investments in privately held companies was approximately $2.0 million and was classified in other investments on the Company’s condensed consolidated balance sheets as of July 30, 2011. The Company did not have any investments in privately held companies as of October 30, 2010.

     On April 4, 2011, the Company issued $375 million aggregate principal amount of 3.0% senior unsecured notes due April 15, 2016 (the 3.0% Notes) with semi-annual fixed interest payments due on April 15 and October 15 of each year, commencing October 15, 2011. The fair value of the 3.0% Notes as of July 30, 2011 was $390.8 million.