Fair Value of Financial Instruments (Tables)

12 Months Ended

Oct. 31, 2016

Fair Value Hierarchy of Our Financial Instruments



		As of October 31,
(in millions)	Fair Value Hierarchy	2016		2015
Financial assets measured at fair value on a recurring basis
Assets held in funded deferred compensation plan⁽¹⁾	1	$	4.9	$	5.3
Investments in auction rate securities⁽²⁾	3	8.0		13.0
Interest rate swaps⁽³⁾	2	0.2		—
Other select financial assets
Cash and cash equivalents⁽⁴⁾	1	56.0		55.5
Insurance deposits⁽⁵⁾	1	11.2		11.4

Financial liabilities measured at fair value on a recurring basis
Interest rate swaps⁽³⁾	2	—		0.1
Contingent consideration liability⁽⁶⁾	3	3.8		5.2
Other select financial liability
Line of credit⁽⁷⁾	2	268.3		158.0

⁽¹⁾ Represents investments held in a Rabbi trust associated with one of our deferred compensation plans, which we include in “Other noncurrent assets” on the accompanying consolidated balance sheets. The fair value of the assets held in the funded deferred compensation plan is based on quoted market prices. See Note 15, “Employee Benefit Plans,” for further information.

⁽²⁾For investments in auction rate securities, the fair value was based on discounted cash flow valuation models, primarily utilizing unobservable inputs, including assumptions about the underlying collateral, credit risks associated with the issuer, credit enhancements associated with financial insurance guarantees, and the possibility of the security being re-financed by the issuer or having a successful auction. These securities are included in “Other investments” on the accompanying consolidated balance sheets. See Note 10, “Auction Rate Securities,” for further information.

⁽³⁾Represents interest rate swap derivatives designated as cash flow hedges. The fair values of the interest rate swaps are 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 LIBOR forward rates at the end of the period. For 2016 and 2015, the interest rate swaps were included in “Other noncurrent assets” and “Other accrued liabilities,” respectively, on the accompanying consolidated balance sheets. See Note 14, “Line of Credit,” for further information.

⁽⁴⁾Cash and cash equivalents are stated at nominal value, which equals fair value.

⁽⁵⁾ Represents restricted insurance deposits that are used to collateralize our insurance obligations and are stated at nominal value, which equals fair value. These insurance deposits are included in “Other noncurrent assets” on the accompanying consolidated balance sheets. See Note 13, “Insurance,” for further information.

⁽⁶⁾ Certain of our acquisitions involve the payment of contingent consideration. For 2015, we had contingent consideration liabilities associated with two acquisitions which were recorded at fair value based on either the expected achievement of certain pre-established revenue goals or pre-defined forecasted adjusted income from operations using a probability weighted income approach. At October 31, 2015, these liabilities were included in “Other accrued liabilities” and “Other noncurrent liabilities” on the accompanying consolidated balance sheets. During 2016, the income-related target was achieved, resulting in the payment of $1.5 million to the seller. At October 31, 2016, the remaining contingent consideration liability is included in “Other accrued liabilities.”

⁽⁷⁾Represents outstanding borrowings under our syndicated line of credit. Due to variable interest rates, the carrying value of outstanding borrowings under our line of credit approximates the fair value. See Note 14, “Line of Credit,” for further information.