v2.4.0.6
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Oct. 31, 2012
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:

 

 

 

2012

 

2011

 

 

 

Carrying

 

Fair

 

Carrying

 

Fair

 

 

 

Value

 

Value*

 

Value

 

Value

 

Financing receivables — net

 

$

22,159

 

$

22,244

 

$

19,924

 

$

19,919

 

Financing receivables securitized — net

 

$

3,618

 

$

3,615

 

$

2,905

 

$

2,907

 

Short-term securitization borrowings

 

$

3,575

 

$

3,584

 

$

2,777

 

$

2,789

 

Long-term borrowings due within one year:

 

 

 

 

 

 

 

 

 

Equipment operations

 

$

195

 

$

194

 

$

244

 

$

233

 

Financial services

 

4,790

 

4,871

 

5,249

 

5,331

 

Total

 

$

4,985

 

$

5,065

 

$

5,493

 

$

5,564

 

Long-term borrowings:

 

 

 

 

 

 

 

 

 

Equipment operations

 

$

5,445

 

$

6,237

 

$

3,167

 

$

3,771

 

Financial services

 

17,008

 

17,438

 

13,793

 

14,154

 

Total

 

$

22,453

 

$

23,675

 

$

16,960

 

$

17,925

 

 

 

*                 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:

 

 

 

2012*

 

2011*

 

Marketable securities

 

 

 

 

 

U.S. government debt securities

 

$

1,200

 

$

576

 

Municipal debt securities

 

38

 

36

 

Corporate debt securities

 

110

 

89

 

Mortgage-backed securities**

 

122

 

86

 

Total marketable securities

 

1,470

 

787

 

Other assets

 

 

 

 

 

Derivatives:

 

 

 

 

 

Interest rate contracts

 

609

 

471

 

Foreign exchange contracts

 

17

 

12

 

Cross-currency interest rate contracts

 

11

 

2

 

Total assets***

 

$

2,107

 

$

1,272

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

 

 

 

 

Derivatives:

 

 

 

 

 

Interest rate contracts

 

$

72

 

$

61

 

Foreign exchange contracts

 

18

 

100

 

Cross-currency interest rate contracts

 

59

 

7

 

Total liabilities

 

$

149

 

$

168

 

 

 

*                 All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $1,139 million and $540 million at October 31, 2012 and 2011, respectively.

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

***   Excluded from this table are cash equivalents, which are carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds.
Assets Measured at Fair Value on a Nonrecurring Basis

Fair value, nonrecurring, Level 3 measurements at October 31 in millions of dollars follow:

 

 

 

Fair Value*

 

Losses

 

 

 

2012

 

2011

 

2012

 

2011

 

2010

 

Financing receivables**

 

 

 

$

5

 

$

1

 

 

 

$

5

 

Goodwill

 

 

 

 

 

$

33

 

 

 

$

27

 

Property and equipment held for sale***

 

 

 

 

 

 

 

 

 

$

35

 

 

 

*                 Does not include cost to sell.

**          Primarily wholesale notes and operating loans.

***   See Note 4.