MARKETABLE SECURITIES

12 Months Ended

Oct. 31, 2014

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:

	Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses			Fair Value
2014
Equity fund		$	39		$	6					$	45
Fixed income fund		10									10
U.S. government debt securities		806			3			$	1		808
Municipal debt securities		31			3						34
Corporate debt securities		167			7			2			172
Mortgage-backed securities*		145			3			2			146
Marketable securities		$	1,198		$	22		$	5		$	1,215
2013
Equity fund		$	18		$	2					$	20
U.S. government debt securities		1,309			5			$	2		1,312
Municipal debt securities		34			2						36
Corporate debt securities		135			6			3			138
Mortgage-backed securities*		121			2			4			119
Marketable securities		$	1,617		$	17		$	9		$	1,625

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

The contractual maturities of debt securities at October 31, 2014 in millions of dollars follow:

	Amortized Cost			Fair Value
Due in one year or less		$	722		$	723
Due after one through five years		90			93
Due after five through 10 years		140			143
Due after 10 years		52			55
Mortgage-backed securities		145			146
Debt securities		$	1,149		$	1,160

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 $6 million in 2014, $7 million in 2013 and $7 million in 2012. 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 2014, 2013 and 2012. Unrealized losses at October 31, 2014 and 2013 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 impairment write-downs in the periods reported.