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Fair Value Measurements
9 Months Ended
Aug. 30, 2013
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS
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 nine months ended August 30, 2013.
The fair value of our financial assets and liabilities at August 30, 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:
 
 
 
 
 
 
 
Corporate bonds and commercial paper
$
2,500

 
$

 
$
2,500

 
$

Money market mutual funds
506,638

 
506,638

 

 

Time deposits
117,707

 
117,707

 

 

U.S. agency securities
15,000

 

 
15,000

 

U.S. Treasury securities
4,000

 

 
4,000

 

Short-term investments:
 
 
 
 
 
 
 
Corporate bonds and commercial paper
1,283,397

 

 
1,283,397

 

Foreign government securities
11,238

 

 
11,238

 

Marketable equity securities
810

 
810

 

 

Municipal securities
188,645

 

 
188,645

 

U.S. agency securities
468,593

 

 
468,593

 

U.S. Treasury securities
392,169

 

 
392,169

 

Prepaid expenses and other current assets:
 
 
 

 
 

 
 

Foreign currency derivatives
12,186

 

 
12,186

 

Other assets:
 
 
 

 
 

 
 

Deferred compensation plan assets
18,723

 
390

 
18,333

 

Total assets
$
3,021,606

 
$
625,545

 
$
2,396,061

 
$

Liabilities:
 

 
 

 
 

 
 

Accrued expenses:
 

 
 

 
 

 
 

Foreign currency derivatives
$
1,420

 
$

 
$
1,420

 
$

Total liabilities
$
1,420

 
$

 
$
1,420

 
$


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. For the three and nine months ended August 30, 2013, we determined there were other-than-temporary impairments of $2.0 million and $7.0 million, respectively, on certain of our cost method investments which were written down to fair value.
In May 2013, management approved a plan to sell land, building and other assets located in Waltham, Massachusetts (the “Waltham property assets”). The Company classified the Waltham property assets with a total carrying amount of $47.4 million as assets held for sale and recorded these assets on the Condensed Consolidated Balance Sheets as of May 31, 2013 at $23.6 million representing their fair value less estimated costs to sell. The fair value, net of estimated costs to sell was measured with the assistance of third-party valuation models which used inputs such as market comparable data for similar properties to be purchased by other operating and investing entities and discounted cash flow techniques as part of the analysis. The fair value measurement was categorized as Level 3 as significant unobservable inputs were used in the valuation analysis. As a result, we recorded a write-down of $23.8 million during the second quarter of fiscal 2013. These charges are included in restructuring and other charges in our Condensed Consolidated Statements of Income for the nine months ended August 30, 2013. In September 2013, we finalized the sale of the Waltham property assets for net proceeds of $24.3 million. The sale price, net of costs to sell, approximated the carrying value of the assets as of August 30, 2013. See Note 6 for further details regarding our assets held for sale.
As of August 30, 2013, the carrying value of our lease receivables approximated fair value, based on Level 2 observable inputs which include Treasury rates, LIBOR rates and applicable credit spreads. See Note 13 for further details regarding our investment in lease receivables. The fair value of our long-term debt was approximately $1.6 billion as of August 30, 2013, based on Level 2 quoted prices in inactive markets. See Note 14 for further details regarding our debt.