FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Oct. 31, 2013

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values at October 31 in millions of dollars follow:

	2013				2012
	Carrying		Fair		Carrying		Fair
	Value		Value*		Value		Value*
Financing receivables – net	$	25,633	$	25,572	$	22,159	$	22,244
Financing receivables securitized – net	$	4,153	$	4,124	$	3,618	$	3,615
Short-term securitization borrowings	$	4,109	$	4,113	$	3,575	$	3,584
Long-term borrowings due within one year:
Equipment operations	$	821	$	837	$	195	$	194
Financial services	4,408		4,441		4,790		4,871
Total	$	5,229	$	5,278	$	4,985	$	5,065
Long-term borrowings:
Equipment operations	$	4,871	$	5,141	$	5,445	$	6,237
Financial services	16,707		16,887		17,008		17,438
Total	$	21,578	$	22,028	$	22,453	$	23,675

*   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 October 31 at fair value on a recurring basis in millions of dollars follow:

	2013*		2012*
Marketable securities
Equity fund	$	20
U.S. government debt securities	1,312		$	1,200
Municipal debt securities	36		38
Corporate debt securities	138		110
Mortgage-backed securities**	119		122
Total marketable securities	1,625		1,470
Other assets
Derivatives:
Interest rate contracts	347		609
Foreign exchange contracts	32		17
Cross-currency interest rate contracts	15		11
Total assets***	$	2,019	$	2,107
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts	$	120	$	72
Foreign exchange contracts	42		18
Cross-currency interest rate contracts	17		59
Total liabilities	$	179	$	149

*       All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $1,247 million and $1,139 million at October 31, 2013 and 2012, respectively, and the equity fund of $20 million at October 31, 2013. There were no transfers between Level 1 and Level 2 during 2013, 2012 and 2011.

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

***    Excluded from this table were 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.

Fair Value, Nonrecurring, Level 3 Measurements

Fair value, nonrecurring, Level 3 measurements from impairments at October 31 in millions of dollars follow:

	Fair Value*			Losses*
	2013		2012	2013		2012		2011
Property and equipment – net	$	36		$	48
Goodwill						$	33
Other intangible assets – net				$	9

*       See financing receivables with specific allowances in Note 12 that were not significant. See Note 5 for impairments.