Auction Rate Securities

6 Months Ended

Apr. 30, 2015

Investments, Debt and Equity Securities [Abstract]

At each of April 30, 2015 and October 31, 2014, we held investments in auction rate securities from three different issuers having an aggregate original principal amount of $15.0 million and an amortized cost basis of $13.0 million. Our auction rate securities are debt instruments with stated maturities ranging from 2033 to 2050, for which the interest rate is designed to be reset through Dutch auctions approximately every thirty days. Auctions for these securities have not occurred since August 2007. We have classified all our auction rate security investments as noncurrent, as we do not reasonably expect to liquidate the securities for cash within the next twelve months.

At April 30, 2015 and October 31, 2014, the fair values of these securities were $12.9 million and $13.0 million, respectively. At April 30, 2015, one of our auction rate securities, with a fair value of $2.9 million, had an unrealized loss position of $0.1 million for less than twelve months, which was included in accumulated other comprehensive loss (“AOCL”). At October 31, 2014, there were no unrealized gains or losses included in AOCL. The total amount of other-than-temporary impairment credit loss on our auction rate security investments included in our retained earnings as of April 30, 2015 and October 31, 2014 was $2.0 million.

Significant Assumptions Used to Determine the Fair Values of Our Auction Rate Securities



Assumption	April 30, 2015	October 31, 2014
Discount rates	L + 0.31% – L + 6.22%	L + 0.28% – L + 4.06%
Yields	2.15%, L + 2.00%	2.15%, L + 2.00%
Average expected lives	4 – 10 years	4 – 10 years

L – One Month LIBOR

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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