Fair Value Measures

12 Months Ended

Oct. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Measures

Fair Value Measurements

Accounting Standards Codification (ASC) 820-10, Fair Value Measurements and Disclosures, defines fair value, establishes guidelines and enhances disclosure requirements for fair value measurements. The accounting guidance requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The accounting guidance also establishes a fair value hierarchy based on the independence of the source and objective evidence of the inputs used. There are three fair value hierarchies based upon the level of inputs that are significant to fair value measurement:

Level 1—Observable inputs that reflect quoted prices (unadjusted) for identical instruments in active markets;

Level 2—Observable inputs other than quoted prices included in Level 1 for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and

Level 3—Unobservable inputs to the valuation derived from fair valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

On a recurring basis, the Company measures the fair value of certain of its assets and liabilities, which include cash equivalents, non-qualified deferred compensation plan assets, and foreign currency derivative contracts.

The Company’s cash equivalents and short-term investments are classified within Level 1 or Level 2 because they are valued using quoted market prices in an active market or alternative independent pricing sources and models utilizing market observable inputs.

The Company’s non-qualified deferred compensation plan assets consist of money market and mutual funds invested in domestic and international marketable securities that are directly observable in active markets and are therefore classified within Level 1.

The Company’s foreign currency derivative contracts are classified within Level 2 because these contracts are not actively traded and the valuation inputs are based on quoted prices and market observable data of similar instruments.

The Company’s borrowings under its credit and term loan facilities are classified within Level 2 because these borrowings are not actively traded and have a variable interest rate structure based upon market rates currently available to the Company for debt with similar terms and maturities. See Note 6. Financial Assets and Liabilities for more information on these borrowings.

Assets/Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2021:

			Fair Value Measurement Using
Description	Total		Quoted Prices in  Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	172,934	$	172,934	$	—	$	—
Short-term investments:
U.S. government agency & T-bills	6,442				6,442		—
Municipal bonds	4,576		—		4,576		—
Corporate debt securities	103,452		—		103,452		—
Asset-backed securities	33,479		—		33,479		—
Prepaid and other current assets:
Foreign currency derivative contracts	15,472		—		15,472		—
Other long-term assets:
Deferred compensation plan assets	343,820		343,820		—		—
Total assets	$	680,175	$	516,754	$	163,421	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	2,068	$	—	$	2,068	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	343,820		343,820		—		—
Total liabilities	$	345,888	$	343,820	$	2,068	$	—

Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2020:

Description	Total		Fair Value Measurement Using
			Quoted Prices in  Active Markets  for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets
Cash equivalents:
Money market funds	$	304,127	$	304,127	$	—	$	—
Prepaid and other current assets:
Foreign currency derivative contracts	9,320		—		9,320		—
Other long-term assets:
Deferred compensation plan assets	269,737		269,737		—		—
Total assets	$	583,184	$	573,864	$	9,320	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	2,380	$	—	$	2,380	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	269,737		269,737		—		—
Total liabilities	$	272,117	$	269,737	$	2,380	$	—

Assets/Liabilities Measured at Fair Value on a Non-Recurring Basis

Non-Marketable Equity Securities

Non-marketable equity securities are classified within Level 3 as they are valued using significant unobservable inputs or data in an inactive market due to the absence of market price and inherent lack of liquidity.