Fair Value Measurements

12 Months Ended

Nov. 29, 2013

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

We measure certain financial assets and liabilities at fair value on a recurring basis. There have been no transfers between fair value measurement levels during the year ended November 29, 2013.

The fair value of our financial assets and liabilities at November 29, 2013 was determined using the following inputs (in thousands):



	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents:
Money market mutual funds	429,373		429,373		—		—
Time deposits	104,711		104,711		—		—
U.S. Treasury securities	14,251		—		14,251		—
Short-term investments:
Corporate bonds and commercial paper	1,267,860		—		1,267,860		—
Foreign government securities	11,269		—		11,269		—
Marketable equity securities	720		720		—		—
Municipal securities	186,624		—		186,624		—
U.S. agency securities	447,945		—		447,945		—
U.S. Treasury securities	424,778		—		424,778		—
Prepaid expenses and other current assets:
Foreign currency derivatives	11,891		—		11,891		—
Other assets:
Deferred compensation plan assets	19,816		894		18,922		—
Total assets	$	2,919,238	$	535,698	$	2,383,540	$	—



Liabilities:
Accrued expenses:
Foreign currency derivatives	$	1,067	$	—	$	1,067	$	—
Total liabilities	$	1,067	$	—	$	1,067	$	—

The fair value of our financial assets and liabilities at November 30, 2012 was determined using the following inputs (in thousands):



	Fair Value Measurements at Reporting Date Using
			Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Total		(Level 1)		(Level 2)		(Level 3)
Assets:
Cash equivalents:
Corporate bonds and commercial paper	$	3,998	$	—	$	3,998	$	—
Money market mutual funds and repurchase agreements	1,171,270		1,171,270		—		—
Municipal securities	3,895		—		3,895		—
Time deposits	45,118		45,118		—		—
Short-term investments:
Corporate bonds and commercial paper	1,070,440		—		1,070,440		—
Foreign government securities	6,952		—		6,952		—
Marketable equity securities	244		244		—		—
Municipal securities	180,525		—		180,525		—
Time deposits	20,113		—		20,113		—
U.S. agency securities	504,191		—		504,191		—
U.S. Treasury securities	330,836		—		330,836		—
Prepaid expenses and other current assets:
Foreign currency derivatives	13,513		—		13,513		—
Other assets:
Deferred compensation plan assets	15,094		436		14,658		—
Total assets	$	3,366,189	$	1,217,068	$	2,149,121	$	—



Liabilities:
Accrued expenses:
Foreign currency derivatives	$	998	$	—	$	998	$	—
Total liabilities	$	998	$	—	$	998	$	—

See Note 3 for further information regarding the fair value of our financial instruments.

Our fixed income available-for-sale securities consist of high quality, investment grade securities from diverse issuers with a minimum credit rating of BBB and a weighted average credit rating of AA-. We value these securities based on pricing from pricing vendors who may use quoted prices in active markets for identical assets (Level 1 inputs) or inputs other than quoted prices that are observable either directly or indirectly (Level 2 inputs) in determining fair value. However, we classify all of our fixed income available-for-sale securities as having Level 2 inputs. The valuation techniques used to measure the fair value of our financial instruments having Level 2 inputs were derived from non-binding market consensus prices that are corroborated by observable market data, quoted market prices for similar instruments, or pricing models such as discounted cash flow techniques. Our procedures include controls to ensure that appropriate fair values are recorded such as comparing prices obtained from multiple independent sources.

Our deferred compensation plan assets consist of prime money market funds and mutual funds.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We also have direct investments in privately held companies accounted for under the cost method, which are periodically assessed for other-than-temporary impairment. If we determine that an other-than-temporary impairment has occurred, we write down the investment to its fair value. We estimate fair value of our cost method investments considering available information such as pricing in recent rounds of financing, current cash positions, earnings and cash flow forecasts, recent operational performance and any other readily available market data. During fiscal 2013, we determined there were other-than-temporary impairments of $7.0 million on certain of our cost method investments and wrote down the investments to fair value. During fiscal 2012, we determined there were no material other-than-temporary impairments on our cost method investments.

As of November 29, 2013, the carrying value of our lease receivables approximated fair value, based on Level 2 valuation inputs which include Treasury rates, LIBOR rates and applicable credit spreads. See Note 15 for further details regarding our investment in lease receivables. The fair value of our long-term debt was approximately $1.6 billion as of November 29, 2013, based on Level 2 quoted prices in inactive markets. See Note 16 for further details regarding our debt.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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