Fair Value Measurements
 6 Months Ended
May 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements

Recurring Fair Value Measurements

The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at May 31, 2016 (in thousands):
 
 
 
 
Fair Value Measurements Using
 
Total Fair
Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Money market funds
$
5,535

 
$
5,535

 
$
—

 
$
—

State and municipal bond obligations
39,587

 
—

 
39,587

 
—

U.S. treasury bonds
4,652

 
—

 
4,652

 
—

U.S. government agency bonds
1,633

 
—

 
1,633

 
—

Corporate bonds
3,504

 
—

 
3,504

 
—

Liabilities
 
 
 
 
 
 
 
Foreign exchange derivatives
$
(3,649
)
 
$
—

 
$
(3,649
)
 
$
—


The following table details the fair value measurements within the fair value hierarchy of our financial assets and liabilities at November 30, 2015 (in thousands):
 
 
 
 
Fair Value Measurements Using
 
Total Fair
Value
 
Level 1
 
Level 2
 
Level 3
Assets
 
 
 
 
 
 
 
Money market funds
$
26,138

 
$
26,138

 
$
—

 
$
—

State and municipal bond obligations
20,417

 
—

 
20,417

 
—

U.S. treasury bonds
3,094

 
—

 
3,094

 
—

U.S. government agency bonds
1,641

 
—

 
1,641

 
—

Corporate bonds
3,748

 
—

 
3,748

 
—

Liabilities
 
 
 
 
 
 
 
Foreign exchange derivatives
$
(4,021
)
 
$
—

 
$
(4,021
)
 
$
—



When developing fair value estimates, we maximize the use of observable inputs and minimize the use of unobservable inputs. When available, we use quoted market prices to measure fair value. The valuation technique used to measure fair value for our Level 1 and Level 2 assets is a market approach, using prices and other relevant information generated by market transactions involving identical or comparable assets. If market prices are not available, the fair value measurement is based on models that use primarily market based parameters including yield curves, volatilities, credit ratings and currency rates. In certain cases where market rate assumptions are not available, we are required to make judgments about assumptions market participants would use to estimate the fair value of a financial instrument.

The following table reflects the activity for our liabilities measured at fair value using Level 3 inputs, which relate to a contingent consideration obligation in connection with a prior acquisition, for each period presented (in thousands):

 
Three Months Ended
 
Six Months Ended
 
May 31,
2016
 
May 31,
2015
 
May 31,
2016
 
May 31,
2015
Balance, beginning of period
$
—

 
$
1,615

 
$
—

 
$
1,717

Changes in fair value of contingent consideration obligation
—

 
(1,111
)
 
—

 
(1,213
)
Transfer to Level 2 fair value measurement
—

 
(209
)
 
—

 
(209
)
Balance, end of period
$
—

 
$
295

 
$
—

 
$
295



We recorded credits of approximately $1.1 million and $1.2 million during the three and six months ended May 31, 2015, respectively, due to the change in fair value of a contingent consideration obligation in connection with a prior acquisition, which is included in acquisition-related expenses in our condensed consolidated statement of operations. The contingent consideration obligation was reduced to $0 during the fiscal year ended November 30, 2015.

We did not have any nonrecurring fair value measurements during the six months ended May 31, 2016.