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Fair Value Measurements
3 Months Ended
Feb. 29, 2020
Fair Value Disclosures [Abstract]  
Fair Value Measurements

NOTE 6—FAIR VALUE MEASUREMENTS:  

The Company’s fair value measurements are classified and disclosed in one of the following three categories:  

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2: Quoted prices in markets that are not active, or inputs which are observable, either directly or indirectly, for substantially the full term of the asset or liability; and

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

The following table summarizes the valuation of the Company’s investments and financial instruments that are measured at fair value on a recurring basis:  

 

 

 

As of February 29, 2020

 

 

As of November 30, 2019

 

 

 

 

 

 

 

Fair value measurement category

 

 

 

 

 

 

Fair value measurement category

 

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents

 

$

31,882

 

 

$

31,882

 

 

$

 

 

$

 

 

$

37,760

 

 

$

37,760

 

 

$

 

 

$

 

Marketable equity securities

 

 

2,439

 

 

 

2,439

 

 

 

 

 

 

 

 

 

2,834

 

 

 

2,834

 

 

 

 

 

 

 

Foreign government bond

 

 

1,226

 

 

 

1,226

 

 

 

 

 

 

 

 

 

1,228

 

 

 

1,228

 

 

 

 

 

 

 

Forward foreign currency exchange contracts

 

 

19,829

 

 

 

 

 

 

19,829

 

 

 

 

 

 

26,280

 

 

 

 

 

 

26,280

 

 

 

 

Interest rate swaps

 

 

 

 

 

 

 

 

 

 

 

 

 

 

515

 

 

 

 

 

 

515

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forward foreign currency exchange contracts

 

 

10,441

 

 

 

 

 

 

10,441

 

 

 

 

 

 

4,270

 

 

 

 

 

 

4,270

 

 

 

 

Interest rate swaps

 

 

111,057

 

 

 

 

 

 

111,057

 

 

 

 

 

 

83,428

 

 

 

 

 

 

83,428

 

 

 

 

 

The Company’s cash equivalents consist primarily of highly liquid investments in money market funds and term deposits with maturity periods of three months or less. The carrying values of cash equivalents approximate fair value since they are near their maturity. Investments in marketable equity securities, primarily comprising investments in other companies’ equity securities as per local customary business practice, are recorded at fair value based on quoted market prices. Investment in foreign government bond classified as available-for-sale debt security is recorded at fair value based on quoted market prices. The fair values of forward exchange contracts are measured based on the foreign currency spot and forward rates quoted by the banks or foreign currency dealers. Fair values of long-term foreign currency exchange contracts are measured using valuations based upon quoted prices for similar assets and liabilities in active markets and are valued by reference to similar financial instruments, adjusted for terms specific to the contracts. Fair values of interest rate swaps are measured using standard valuation models using inputs that are readily available in public markets, or can be derived from observable market transactions, including LIBOR spot and forward rates. The effect of nonperformance risk on the fair value of derivative instruments was not material as of February 29, 2020 and November 30, 2019.      

The carrying values of accounts receivable, accounts payable and short-term debt approximate fair value due to their short maturities and interest rates which are variable in nature. The carrying value of the Company’s term loans approximate their fair value since they bear interest rates that are similar to existing market rates.

During the three months ended February 29, 2020, there were no transfers between the fair value measurement category levels.