FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Jul. 31, 2022

FAIR VALUE MEASUREMENTS

Fair Value of Financial Instruments

The fair values of financial instruments that do not approximate the carrying values were as follows in millions of dollars. Long-term borrowings exclude finance lease liabilities.

	July 31, 2022				October 31, 2021				August 1, 2021
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	35,056	$	34,158	$	33,799	$	33,718	$	31,449	$	31,515
Financing receivables securitized – net		5,141		4,990		4,659		4,704		5,401		5,467
Short-term securitization borrowings		4,920		4,862		4,605		4,610		5,277		5,302
Long-term borrowings due within one year		7,693		7,608		8,330		8,364		8,366		8,440
Long-term borrowings		32,101		31,741		32,850		34,506		32,238		34,345

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, 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.

	July 31		October 31		August 1
	2022		2021		2021
Level 1:
Marketable securities
International equity securities	$	2	$	2	$	3
U.S. equity fund		75		75		74
U.S. government debt securities		63		59		60
Total Level 1 marketable securities		140		136		137
Level 2:
Marketable securities
U.S. government debt securities		134		139		124
Municipal debt securities		70		73		71
Corporate debt securities		213		224		217
International debt securities		1		2		3
Mortgage-backed securities		161		154		136
Total Level 2 marketable securities		579		592		551
Other assets
Derivatives		280		275		432
Accounts payable and accrued expenses
Derivatives		667		228		152
Level 3:
Accounts payable and accrued expenses – Deferred consideration		252

Contractual Maturities of Debt Securities

The contractual maturities of debt securities at July 31, 2022 in millions of dollars are shown below. 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. Mortgage-backed securities were primarily issued by U.S. government-sponsored enterprises. Unrealized losses of debt securities at July 31, 2022 were not recognized in income due to the ability and intent to hold to maturity.

	Amortized		Fair
	Cost		Value
Due in one year or less	$	23	$	23
Due after one through five years		98		95
Due after five through 10 years		189		175
Due after 10 years		211		188
Mortgage-backed securities		176		161
Debt securities	$	697	$	642

Fair Value, Nonrecurring Level 3 Measurements from Impairments

Fair value, nonrecurring Level 3 measurements from impairments, excluding financing receivables with specific allowances which were not significant, were as follows in millions of dollars. Property and equipment – net and Other assets fair values for October 31, 2021 represent the fair value assessments at January 31, 2021.

	Fair Value					Losses
						Three Months Ended			Nine Months Ended
	July 31		October 31		August 1	July 31		August 1	July 31		August 1
	2022		2021		2021	2022		2021	2022		2021
Inventories	$	13				$	4		$	12
Property and equipment – net			$	41					$	41	$	44
Other intangible assets – net									$	28
Other assets			$	1							$	6