Auction Rate Securities

9 Months Ended

Jul. 31, 2018

Investments, Debt and Equity Securities [Abstract]

AUCTION RATE SECURITIES

At October 31, 2017, we held investments in auction rate securities from two different issuers that had an aggregate original principal amount of $10.0 million and an amortized cost and fair value of $8.0 million. During the third quarter of 2018, we sold one of our auction rate securities with an original par value of $5.0 million and an amortized cost basis of $3.0 million for proceeds of $2.9 million. The resulting loss is included in “Selling, general and administrative expenses” on the accompanying unaudited consolidated statements of comprehensive income (loss). The total amount of other-than-temporary impairment credit loss previously recognized on this security investment and included in our retained earnings was $2.0 million.

At July 31, 2018, the remaining auction rate security had an aggregate original principal amount, amortized cost, and fair value of $5.0 million. This auction rate security is a debt instrument with a stated maturity in 2050. The interest rate for this security is designed to be reset through Dutch auctions approximately every thirty days; however, auctions for this security have not occurred since August 2007.

At July 31, 2018 and October 31, 2017, there were no unrealized gains or losses on our auction rate securities included in accumulated other comprehensive income (loss), net of taxes (“AOCI”).

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



Assumption	July 31, 2018	October 31, 2017
Discount rates	L + 0.41%	L + 0.42% and L + 0.79%
Yields	L + 2.00%	2.15%, L + 2.00%
Average expected lives	4 years	4 - 10 years

L – One Month LIBOR