FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Apr. 30, 2013

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

           The fair values of financial instruments that do not approximate the carrying values in millions of dollars follow:

	April 30, 2013				October 31, 2012				April 30, 2012
	Carrying Value		Fair Value *		Carrying Value		Fair Value *		Carrying Value		Fair Value *
Financing receivables - net	$	22,745	$	22,796	$	22,159	$	22,244	$	19,453	$	19,496
Financing receivables securitized - net	3,788		3,785		3,618		3,615		3,116		3,124
Short-term securitization borrowings	3,788		3,794		3,575		3,584		3,033		3,041
Long-term borrowings due within one year:
Equipment operations	$	911	$	939	$	195	$	194	$	223	$	218
Financial services	5,008		5,065		4,790		4,871		5,321		5,388
Total	$	5,919	$	6,004	$	4,985	$	5,065	$	5,544	$	5,606
Long-term borrowings:
Equipment operations	$	4,925	$	5,626	$	5,445	$	6,237	$	3,175	$	3,962
Financial services	16,828		17,029		17,008		17,438		15,544		15,885
Total	$	21,753	$	22,655	$	22,453	$	23,675	$	18,719	$	19,847

* Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at fair value on a recurring basis in millions of dollars follow:

	April 30			October 31		April 30
	2013*			2012*		2012*
Marketable securities
Equity fund	$		3
U.S. government debt securities	1,102			$	1,200	$	1,086
Municipal debt securities	38			38		38
Corporate debt securities	130			110		101
Mortgage-backed securities **	126			122		114
Total marketable securities	1,399			1,470		1,339
Other assets
Derivatives:
Interest rate contracts	589			609		518
Foreign exchange contracts	25			17		7
Cross-currency interest rate contracts	5			11		9
Total assets ***	$	2,018		$	2,107	$	1,873
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts	$		66	$	72	$	53
Foreign exchange contracts	36			18		41
Cross-currency interest rate contracts	54			59		43
Total liabilities	$		156	$	149	$	137

* All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $1,041 million, $1,139 million and $1,041 million at April 30, 2013, October 31, 2012 and April 30, 2012, respectively, and the equity fund of $3 million at April 30, 2013.  There were no transfers between Level 1 and Level 2 during the first six months of 2013 or 2012.

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

*** Excluded from this table are the Company’s cash equivalents, which were carried at cost that approximates fair value.  The cash equivalents consist primarily of money market funds that were Level 1 measurements.

Contractual Maturities of Debt Securities

The contractual maturities of debt securities at April 30, 2013 in millions of dollars are shown below.  Actual maturities may differ from those scheduled as a result of prepayments by the issuers.  Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity.

	Amortized Cost		Fair Value
Due in one year or less	$	712	$	712
Due after one through five years	372		379
Due after five through 10 years	100		106
Due after 10 years	66		73
Mortgage-backed securities	121		126
Debt securities	$	1,371	$	1,396