XML 17 R17.htm IDEA: XBRL DOCUMENT  v2.3.0.11
FAIR VALUE MEASUREMENTS
 9 Months Ended
Jul. 31, 2011
FAIR VALUE MEASUREMENTS [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 12 - FAIR VALUE MEASUREMENTS

The accounting framework for determining fair value includes a hierarchy for ranking the quality and reliability of the information used to measure fair value, which enables the reader of the financial statements to assess the inputs used to develop those measurements. The fair value hierarchy consists of three tiers as follows: Level 1, defined as quoted market prices in active markets for identical securities; Level 2, defined as inputs other than Level 1 that are observable, either directly or indirectly; and Level 3, defined as unobservable inputs that are not corroborated by market data.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The tables below present assets and liabilities as of July 31, 2011 and October 31, 2010 that are measured at fair value on a recurring basis.

   
July 31, 2011
 
   
Quoted Prices in Active Markets for Identical Instruments
(Level 1)
  
 
Significant Other Observable Inputs
(Level 2)
  
 
 
Significant Unobservable Inputs
(Level 3)
  
 
 
 
 
 
Total
 
 
            
Common stock warrants
 $-  $1,322  $-  $1,322 
Total liabilities
 $-  $1,322  $-  $1,322 

   
October 31, 2010
 
   
Quoted Prices in Active Markets for Identical Instruments
(Level 1)
  
 
Significant Other Observable Inputs
(Level 2)
  
 
 
Significant Unobservable Inputs
(Level 3)
  
 
 
 
 
 
Total
 
 
            
Common stock warrants
 $-  $1,881  $-  $1,881 
Total liabilities
 $-  $1,881  $-  $1,881 

The fair value of the common stock warrants liability was determined using the Black-Scholes option pricing model. A significant observable input into the model included the market price of the Company's common stock at the measurement date. Gains or losses related to fair value adjustments to the common stock warrants liability are included in other income (expense), net.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The Company did not have any nonfinancial assets or liabilities measured at fair value on a nonrecurring basis as of July 31, 2011 and October 31, 2010.

Fair Value of Other Financial Instruments

The fair values of the Company's cash and cash equivalents, accounts receivable, accounts payable, and certain other current assets and current liabilities approximate their carrying value due to their short-term maturities. The fair value of the Company's variable rate long-term debt approximates its carrying value due to the variable nature of the underlying interest rate. The estimated fair values of the Company's 3.25% and 5.5% convertible senior notes were $119.5 million and $37.1 million, respectively, as of July 31, 2011, and the estimated fair value of the Company's 5.5% senior convertible notes was $83.2 million, as of October 31, 2010.  The Company acquired $35.4 million face amount of its 5.5% senior convertible notes during the nine month period ended July 31, 2011.