Fair value measurements

3 Months Ended

Jan. 31, 2013

Fair value measurements

13. Fair value measurements

The inputs to the valuation techniques used to measure fair value are classified into the following categories:

Level 1: Quoted market prices in active markets for identical assets or liabilities.

Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.

Level 3: Unobservable inputs that are not corroborated by market data.

The following table presents the classification of our assets and liabilities measured at fair value on a recurring basis at January 31, 2013:

	Total		Level 1		Level 2		Level 3
Assets:
Rabbi trust (a)	$	13,440	$	—	$	13,440	$	—
Forward exchange contracts (b)		4,959		—		4,959		—
Total assets at fair value	$	18,399	$	—	$	18,399	$	—
Liabilities:
Deferred compensation plans (c)	$	6,994	$	6,994	$	—	$	—
Forward exchange contracts (b)		777		—		777		—
Total liabilities at fair value	$	7,771	$	6,994	$	777	$	—

(a) We maintain a rabbi trust that serves as an investment to shadow our deferred compensation plan liability. The investment assets of the trust consist of life insurance policies for which we recognize income or expense based upon changes in cash surrender value.

(b) We enter into foreign currency forward contracts to reduce the risk of foreign currency exposures resulting from receivables, payables, intercompany receivables, intercompany payables and loans denominated in foreign currencies. Foreign exchange contracts are valued using market exchange rates. Foreign exchange contracts are not designated as hedges.

(c) Executive officers and other highly compensated employees may defer up to 100% of their salary and incentive compensation into various non-qualified deferred compensation plans. Deferrals can be allocated to various market performance measurement funds. Changes in the value of compensation deferred under these plans are recognized each period based on the fair value of the underlying measurement funds.