Fair Value (Tables)
 9 Months Ended
Aug. 04, 2012
Fair Value Disclosures [Abstract]  
Fair value of financial assets and liabilities
As of August 4, 2012 and October 29, 2011, the Company held $154.5 million and $31.6 million, respectively, of cash and held-to-maturity investments that were excluded from the tables below.
 
August 4, 2012
 
Fair Value measurement at
Reporting Date using:
 
 
 
Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Institutional money market funds
$
110,313

 
$
—

 
$
—

 
$
110,313

Corporate obligations (1)
—

 
310,329

 
—

 
310,329

Short - term investments:
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Securities with one year or less to maturity:
 
 
 
 
 
 
 
Corporate obligations (1)
—

 
2,745,579

 
—

 
2,745,579

Floating rate notes, issued at par
—

 
210,068

 
—

 
210,068

Floating rate notes (1)
—

 
167,773

 
—

 
167,773

Securities with greater than one year to maturity:
 
 
 
 
 
 
 
Floating rate notes, issued at par
 
 
50,002

 
 
 
50,002

Floating rate notes (1)
—

 
16,522

 
—

 
16,522

Other assets:
 
 
 
 
 
 
 
Deferred compensation investments
27,850

 
—

 
—

 
27,850

Total assets measured at fair value
$
138,163

 
$
3,500,273

 
$
—

 
$
3,638,436

Liabilities
 
 
 
 
 
 
 
Forward foreign currency exchange contracts (2)
$
—

 
$
4,031

 
$
—

 
$
4,031

Contingent consideration
—

 
—

 
12,316

 
12,316

Total liabilities measured at fair value
$
—

 
$
4,031

 
$
12,316

 
$
16,347

 
(1)
The amortized cost of the Company’s investments classified as available-for-sale as of August 4, 2012 was $3,242.5 million.
(2)
The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of August 4, 2012, contracts in an asset position of $1.1 million were netted against contracts in a liability position in the condensed consolidated balance sheet.
 
October 29, 2011
 
Fair Value measurement at
Reporting Date using:
 
 
 
Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)
 
Significant
Other
Observable
Inputs
(Level 2)
 
Significant
Other
Unobservable
Inputs
(Level 3)
 
Total
Assets
 
 
 
 
 
 
 
Cash equivalents:
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Institutional money market funds
$
1,278,121

 
$
—

 
$
—

 
$
1,278,121

Corporate obligations (1)
—

 
95,948

 
—

 
95,948

Short - term investments:
 
 
 
 
 
 
 
Available-for-sale:
 
 
 
 
 
 
 
Securities with one year or less to maturity:
 
 
 
 
 
 
 
Corporate obligations (1)
—

 
2,169,078

 
—

 
2,169,078

Floating rate notes (1)
—

 
17,704

 
—

 
17,704

Other assets:
 
 
 
 
 
 
 
Forward foreign currency exchange contracts (2)
—

 
2,472

 
—

 
2,472

Deferred compensation investments
26,410

 
—

 
—

 
26,410

Other investments
1,135

 
—

 
—

 
1,135

Interest rate swap agreements
—

 
22,187

 
—

 
22,187

Total assets measured at fair value
$
1,305,666

 
$
2,307,389

 
$
—

 
$
3,613,055

Liabilities
 
 
 
 
 
 
 
$375 million aggregate principal 5.0% debt (3)
$
—

 
$
396,337

 
$
—

 
$
396,337

Contingent consideration
—

 
—

 
13,973

 
13,973

Total liabilities measured at fair value
$
—

 
$
396,337

 
$
13,973

 
$
410,310

 
(1)
The amortized cost of the Company’s investments classified as available-for-sale as of October 29, 2011 was $2,284.9 million.
(2)
The Company has a master netting arrangement by counterparty with respect to derivative contracts. As of October 29, 2011, contracts in a liability position of $0.8 million were netted against contracts in an asset position in the condensed consolidated balance sheet.
(3)
Equal to the accreted notional value of the debt plus the fair value of the interest rate component of the long-term debt. The fair value of the long-term debt as of October 29, 2011 was $413.4 million, which is classified as a level 1 measurement according to the fair value hierarchy.
The fair value measurement of the contingent consideration encompasses the following significant unobservable inputs
The fair value measurement of the contingent consideration encompasses the following significant unobservable inputs:
 
 
 
Unobservable Inputs
Range
Estimated contingent consideration payments
$13,000
Discount rate
7% - 10%
Timing of cash flows
1 - 16 months
Probability of achievement
100%
Change in fair value of contingent consideration measured with significant unobservable inputs
The following table summarizes the change in the fair value of the contingent consideration measured using significant unobservable inputs (Level 3) as of October 29, 2011 and August 4, 2012:
 
 
Contingent
Consideration
Balance as of October 30, 2010
$
—

Contingent consideration liability recorded
13,790

Fair value adjustment (1)
183

Balance as of October 29, 2011
$
13,973

Payment made (2)
(2,000
)
Fair value adjustment (1)
343

Balance as of August 4, 2012
$
12,316

 
(1)
Recorded in research and development expense in the condensed consolidated statements of income.
(2)
The payment is reflected in the statements of cash flows as cash used in financing activities related to the liability recognized at fair value as of the acquisition date and as cash provided by operating activities related to the fair value adjustments previously recognized in earnings.