FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Oct. 31, 2021

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values at October 31, 2021 and November 1, 2020 in millions of dollars follow:

	2021				2020
	Carrying		Fair		Carrying		Fair
	Value		Value*		Value		Value*
Financing receivables – net:
Equipment operations	$	73	$	68	$	105	$	103
Financial services		33,726		33,650		29,645		29,838
Total	$	33,799	$	33,718	$	29,750	$	29,941
Financing receivables securitized – net:
Equipment operations	$	10	$	10	$	26	$	26
Financial services		4,649		4,694		4,677		4,773
Total	$	4,659	$	4,704	$	4,703	$	4,799
Short-term securitization borrowings:
Equipment operations	$	10	$	10	$	26	$	26
Financial services		4,595		4,600		4,656		4,698
Total	$	4,605	$	4,610	$	4,682	$	4,724
Long-term borrowings due within one year:**
Equipment operations	$	1,213	$	1,222	$	79	$	78
Financial services		7,117		7,142		6,870		6,936
Total	$	8,330	$	8,364	$	6,949	$	7,014
Long-term borrowings:**
Equipment operations	$	8,877	$	10,244	$	10,085	$	11,837
Financial services		23,973		24,262		22,610		23,170
Total	$	32,850	$	34,506	$	32,695	$	35,007

*    Fair value measurements above were Level 3 for all financing receivables, Level 3 for equipment operations short-term securitization borrowings, and Level 2 for all other borrowings.

** Values exclude finance lease liabilities that are presented as borrowings (see Note 25).

Assets and Liabilities Measured at Fair Value on a Recurring Basis

Assets and liabilities measured at October 31, 2021 and November 1, 2020 at fair value on a recurring basis in millions of dollars follow, excluding the company’s cash equivalents, which were carried at cost that approximates fair value and consisted primarily of money market funds and time deposits. Level 3 marketable securities were transferred to Level 2 in 2021.

	2021		2020
Level 1:
Marketable securities
U.S. equity fund	$	75	$	62
International equity securities		2		2
U.S. government debt securities		59		55
Total Level 1 marketable securities		136		119
Level 2:
Marketable securities
U.S. government debt securities		139		113
Municipal debt securities		73		68
Corporate debt securities		224		188
International debt securities		2		2
Mortgage-backed securities*		154		147
Total Level 2 marketable securities		592		518
Other assets
Derivatives:
Interest rate contracts		239		669
Foreign exchange contracts		31		48
Cross-currency interest rate contracts		5		8
Total Level 2 other assets		275		725
Accounts payable and accrued expenses
Derivatives:
Interest rate contracts		132		88
Foreign exchange contracts		94		26
Cross-currency interest rate contracts		2		1
Total Level 2 accounts payable and accrued expenses		228		115
Level 3:
Marketable securities
International debt securities				4

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

Fair Value, Nonrecurring Level 3 Measurements from Impairments

Fair value, nonrecurring measurements from impairments at October 31, 2021 and November 1, 2020 in millions of dollars follow:

	Fair Value				Losses
	2021		2020		2021		2020		2019
Other receivables 1			$	1			$	2
Equipment on operating leases – net 2			$	371			$	22	$	59
Property and equipment – net 3	$	41	$	135	$	44	$	102
Investments in unconsolidated affiliates 4			$	19			$	50
Other intangible assets – net							$	2
Other assets 5	$	1	$	59	$	6	$	16	$	18

¹ Fair value as of August 2, 2020.

² Fair value as of May 3, 2020.

³ 2021 fair value of $41 million at January 31, 2021. 2020 fair value of $70 million at May 3, 2020, $8 million at August 2, 2020, and $57 million at November 1, 2020.

⁴ Fair value as of November 1, 2020.

⁵ 2021 fair value as of January 31, 2021. 2020 fair value as of May 3, 2020.