Fair Value Measurements

12 Months Ended

Oct. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

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 for identical instruments in active markets, quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in inactive markets, and model-driven valuations in which all significant inputs and significant value drivers are observable in active markets; and

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

On a recurring basis, we measure the fair value of certain assets and liabilities, which include cash equivalents, short-term investments, non-qualified deferred compensation plan assets, and foreign currency derivative contracts.

Our 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.

Our 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.

Our 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.

Our borrowings under our 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 us for debt with similar terms and maturities. See Note 7. Financial Assets and Liabilities of the Notes to Consolidated Financial Statements 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, 2023:

			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	$	10,129	$	10,129	$	—	$	—
U.S. Treasury, agency & T-bills	2,994				2,994		—
Short-term investments:
U.S. Treasury, agency & T-bills	15,689		—		15,689		—
Municipal bonds	499		—		499		—
Corporate debt securities	102,375		—		102,375		—
Asset-backed securities	33,076		—		33,076		—
Prepaid and other current assets:
Foreign currency derivative contracts	13,453		—		13,453		—
Other long-term assets:
Deferred compensation plan assets	300,731		300,731		—		—
Total assets	$	478,946	$	310,860	$	168,086	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	15,761	$	—	$	15,761	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	300,731		300,731		—		—
Total liabilities	$	316,492	$	300,731	$	15,761	$	—

Assets and liabilities measured at fair value on a recurring basis are summarized below as of October 31, 2022:

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	$	77,683	$	77,683	$	—	$	—
Short-term investments:
U.S. Treasury, agency & T-bills	25,603		—		25,603		—
Municipal bonds	2,878		—		2,878		—
Corporate debt securities	94,024		—		94,024		—
Asset-backed securities	25,408		—		25,408		—
Prepaid and other current assets:
Foreign currency derivative contracts	2,538		—		2,538		—
Other long-term assets:
Deferred compensation plan assets	279,096		279,096		—		—
Total assets	$	507,230	$	356,779	$	150,451	$	—
Liabilities
Accounts payable and accrued liabilities:
Foreign currency derivative contracts	$	52,618	$	—	$	52,618	$	—
Other long-term liabilities:
Deferred compensation plan liabilities	279,096		279,096		—		—
Total liabilities	$	331,714	$	279,096	$	52,618	$	—

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 a combination of observable transaction price and unobservable inputs or data in an inactive market due to the absence of market price and inherent lack of liquidity.