MARKETABLE SECURITIES

12 Months Ended

Oct. 31, 2016

MARKETABLE SECURITIES

MARKETABLE SECURITIES

11. MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale, with unrealized gains and losses shown as a component of stockholders’ equity. Realized gains or losses from the sales of marketable securities are based on the specific identification method.

The amortized cost and fair value of marketable securities at October 31 in millions of dollars follow:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
2016
Equity fund	$	40	$	5			$	45
Fixed income fund		15						15
U.S. government debt securities		85		3				88
Municipal debt securities		41		2				43
Corporate debt securities		113		5				118
International debt securities		39			$	5		34
Mortgage-backed securities*		109		2				111
Marketable securities	$	442	$	17	$	5	$	454
2015
Equity fund	$	38	$	5			$	43
U.S. government debt securities		79		3				82
Municipal debt securities		29		2				31
Corporate debt securities		121		4	$	1		124
International debt securities		48				1		47
Mortgage-backed securities*		108		3		1		110
Marketable securities	$	423	$	17	$	3	$	437

*       Primarily issued by U.S. government sponsored enterprises.

The contractual maturities of debt securities at October 31, 2016 in millions of dollars follow:

	Amortized		Fair
	Cost		Value
Due in one year or less	$	35	$	34
Due after one through five years		104		103
Due after five through 10 years		87		91
Due after 10 years		52		55
Mortgage-backed securities		109		111
Debt securities	$	387	$	394

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Proceeds from the sales of available-for-sale securities were $62 million in 2016, $120 million in 2015 and $6 million in 2014. Realized gains, realized losses, the increase (decrease) in net unrealized gains or losses and unrealized losses that have been continuous for over twelve months were not significant in 2016, 2015 and 2014. Unrealized losses at October 31, 2016 and 2015 were primarily the result of an increase in interest rates and were not recognized in income due to the ability and intent to hold to maturity. There were no significant impairment write-downs in the periods reported.