Fair Value Measurements

6 Months Ended

Apr. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

3. Fair Value Measurements

A fair value measurement is determined based on the assumptions that a market participant would use in pricing an asset or liability. A three-tiered hierarchy draws distinctions between market participant assumptions based on (i) observable inputs, such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2), and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3).

The following tables present information about assets and liabilities required to be carried at fair value on a recurring basis as of April 30, 2011 and October 31, 2010:

			Fair Value Measurements
	Fair Value at		Using Inputs Considered as
(in thousands)	April 30, 2011		Level 1		Level 2		Level 3
Assets
Assets held in funded deferred compensation plan	$	5,131	$	5,131	$	—	$	—
Investments in auction rate securities		15,503		—		—		15,503
Interest rate swap		151		—		151		—
Total assets	$	20,785	$	5,131	$	151	$	15,503

			Fair Value Measurements
	Fair Value at		Using Inputs Considered as
(in thousands)	October 31, 2010		Level 1		Level 2		Level 3
Assets
Assets held in funded deferred compensation plan	$	5,717	$	5,717	$	—	$	—
Investments in auction rate securities		20,171		—		—		20,171
Total assets	$	25,888	$	5,717	$	—	$	20,171
Liabilities
Interest rate swaps	$	445	$	—	$	445	$	—
Total liabilities	$	445	$	—	$	445	$	—

The fair value of the assets held in the funded deferred compensation plan is based on quoted market prices.

For investments in auction rate securities that were not redeemed or had no market activity indicative of fair market value, the fair value is based on discounted cash flow valuation models, primarily utilizing unobservable inputs. During the six months ended April 30, 2011, the Company had no transfers of assets or liabilities between any of the above hierarchy levels. See Note 4, “Auction Rate Securities,” for the roll-forwards of assets measured at fair value using significant unobservable Level 3 inputs.

The fair value of the interest rate swaps is estimated based on the present value of the difference between expected cash flows calculated at the contracted interest rates and the expected cash flows at current market interest rates using observable benchmarks for London Interbank Offered Rate forward rates at the end of the period. See Note 7, “Line of Credit Facility.”

Other Financial Assets and Liabilities

Due to the short-term maturities of the Company’s cash, cash equivalents, receivables, payables, and current assets and liabilities of discontinued operations, the carrying value of these financial instruments is estimated to approximate their fair market values. Due to the variable interest rates, the fair value of outstanding borrowings under the Company’s $650.0 million line of credit approximates its carrying value of $396.0 million. The carrying value of the receivables included in non-current assets of discontinued operations of $0.5 million and the insurance deposits related to self-insurance claims of $35.9 million approximates fair market value.