FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Jul. 30, 2023

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 30, 2023				October 30, 2022				July 31, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	41,302	$	40,675	$	36,634	$	35,526	$	35,056	$	34,158
Financing receivables securitized – net		7,001		6,818		5,936		5,698		5,141		4,990
Short-term securitization borrowings		6,608		6,538		5,711		5,577		4,920		4,862
Long-term borrowings due within one year		7,765		7,568		7,466		7,322		7,693		7,608
Long-term borrowings		38,064		37,121		33,566		31,852		32,101		31,741

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. The Company’s cash equivalents, which consisted of money market funds and time deposits, are excluded as these assets were carried at cost that approximates fair value.

	July 30		October 30		July 31
	2023		2022		2022
Level 1:
Marketable securities
International equity securities	$	3	$	3	$	2
U.S. equity fund		101		70		75
U.S. fixed income fund		85
U.S. government debt securities		63		62		63
Total Level 1 marketable securities		252		135		140
Level 2:
Marketable securities
U.S. government debt securities		134		121		134
Municipal debt securities		69		63		70
Corporate debt securities		221		200		213
International debt securities		2		60		1
Mortgage-backed securities		163		155		161
Total Level 2 marketable securities		589		599		579
Other assets - Derivatives		324		373		280
Accounts payable and accrued expenses - Derivatives		948		1,231		667
Level 3:
Accounts payable and accrued expenses - Deferred consideration		202		236		252

Contractual Maturities of Debt Securities

The contractual maturities of debt securities at July 30, 2023 in millions of dollars are shown below. Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Unrealized losses were not recognized in income due to the ability and intent to hold to maturity. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity.

	Amortized		Fair
	Cost		Value
Due in one year or less	$	25	$	24
Due after one through five years		130		121
Due after five through 10 years		193		170
Due after 10 years		211		174
Mortgage-backed securities		194		163
Debt securities	$	753	$	652

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. Inventories and property and equipment – net fair values for October 30, 2022 represent the fair value assessment at July 31, 2022.

	Fair Value					Losses
						Three Months Ended			Nine Months Ended
	July 30	October 30		July 31		July 30	July 31		July 30	July 31
	2023	2022		2022		2023	2022		2023	2022
Inventories		$	19	$	13		$	4		$	12
Property and equipment – net			15								41
Other intangible assets – net											28