FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Oct. 31, 2014

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:

	2014				2013
	Carrying		Fair		Carrying		Fair
	Value		Value*		Value		Value*
Financing receivables – net	$	27,422	$	27,337	$	25,633	$	25,572
Financing receivables securitized – net	$	4,602	$	4,573	$	4,153	$	4,124
Short-term securitization borrowings	$	4,559	$	4,562	$	4,109	$	4,113
Long-term borrowings due within one year:
Equipment operations	$	243	$	233	$	821	$	837
Financial services	4,730		4,743		4,408		4,441
Total	$	4,973	$	4,976	$	5,229	$	5,278
Long-term borrowings:
Equipment operations	$	4,643	$	5,095	$	4,871	$	5,141
Financial services	19,738		19,886		16,707		16,887
Total	$	24,381	$	24,981	$	21,578	$	22,028

*   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:

	2014*		2013*
Marketable securities
Equity fund	$	45	$	20
Fixed income fund	10
U.S. government debt securities	808		1,312
Municipal debt securities	34		36
Corporate debt securities	172		138
Mortgage-backed securities**	146		119
Total marketable securities	1,215		1,625
Other assets Derivatives:
Interest rate contracts	319		347
Foreign exchange contracts	18		32
Cross-currency interest rate contracts	16		15
Total assets***	$	1,568	$	2,019
Accounts payable and accrued expenses Derivatives:
Interest rate contracts	$	81	$	120
Foreign exchange contracts	29		42
Cross-currency interest rate contracts			17
Total liabilities	$	110	$	179

*	All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $741 million and $1,247 million at October 31, 2014 and 2013, respectively, and the equity fund of $45 million and $20 million at October 31, 2014 and 2013, respectively, and the fixed income fund of $10 million at October 31, 2014. There were no transfers between Level 1 and Level 2 during 2014, 2013 and 2012.
**	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*
	2014		2013		2014		2013		2012
Property and equipment – net	$	53	$	36	$	44	$	48
Goodwill									$	33
Other intangible assets – net							$	9
Other assets	$	15			$	16
Assets held for sale – Water operations					$	36

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