| Fair Value of Financial Instruments |
The fair values of financial instruments that do not approximate the carrying values in millions of dollars follow:
|
|
|
January 31, 2015 |
|
October 31, 2014 |
|
January 31, 2014 |
|
|
|
Carrying
Value |
|
Fair
Value * |
|
Carrying
Value |
|
Fair
Value * |
|
Carrying
Value |
|
Fair
Value * |
|
Financing receivables - net |
|
$ |
25,806 |
|
$ |
25,733 |
|
$ |
27,422 |
|
$ |
27,337 |
|
$ |
25,242 |
|
$ |
25,129 |
|
Financing receivables securitized - net |
|
3,893 |
|
3,868 |
|
4,602 |
|
4,573 |
|
3,491 |
|
3,463 |
|
Short-term securitization borrowings |
|
3,888 |
|
3,891 |
|
4,559 |
|
4,562 |
|
3,491 |
|
3,492 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings due within one year: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment operations |
|
$ |
216 |
|
$ |
207 |
|
$ |
243 |
|
$ |
233 |
|
$ |
815 |
|
$ |
821 |
|
Financial services |
|
4,660 |
|
4,669 |
|
4,730 |
|
4,743 |
|
4,501 |
|
4,511 |
|
Total |
|
$ |
4,876 |
|
$ |
4,876 |
|
$ |
4,973 |
|
$ |
4,976 |
|
$ |
5,316 |
|
$ |
5,332 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term borrowings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Equipment operations |
|
$ |
4,622 |
|
$ |
5,344 |
|
$ |
4,643 |
|
$ |
5,095 |
|
$ |
4,828 |
|
$ |
5,102 |
|
Financial services |
|
19,485 |
|
19,687 |
|
19,738 |
|
19,886 |
|
17,437 |
|
17,619 |
|
Total |
|
$ |
24,107 |
|
$ |
25,031 |
|
$ |
24,381 |
|
$ |
24,981 |
|
$ |
22,265 |
|
$ |
22,721 |
* 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:
|
|
|
January 31
2015 * |
|
October 31
2014 * |
|
January 31
2014 * |
|
|
|
|
|
|
|
|
|
|
|
Marketable securities |
|
|
|
|
|
|
|
|
Equity fund |
|
$ |
45 |
|
$ |
45 |
|
$ |
20 |
|
|
Fixed income fund |
|
|
|
10 |
|
|
|
|
U.S. government debt securities |
|
179 |
|
808 |
|
1,113 |
|
|
Municipal debt securities |
|
29 |
|
34 |
|
36 |
|
|
Corporate debt securities |
|
134 |
|
172 |
|
147 |
|
|
Mortgage-backed securities ** |
|
107 |
|
146 |
|
122 |
|
|
Total marketable securities |
|
494 |
|
1,215 |
|
1,438 |
|
|
Other assets |
|
|
|
|
|
|
|
|
Derivatives: |
|
|
|
|
|
|
|
|
Interest rate contracts |
|
478 |
|
319 |
|
329 |
|
|
Foreign exchange contracts |
|
125 |
|
18 |
|
70 |
|
|
Cross-currency interest rate contracts |
|
22 |
|
16 |
|
19 |
|
|
Total assets *** |
|
$ |
1,119 |
|
$ |
1,568 |
|
$ |
1,856 |
|
|
|
|
|
|
|
|
|
|
|
Accounts payable and accrued expenses |
|
|
|
|
|
|
|
|
Derivatives: |
|
|
|
|
|
|
|
|
Interest rate contracts |
|
$ |
80 |
|
$ |
81 |
|
$ |
144 |
|
|
Foreign exchange contracts |
|
49 |
|
29 |
|
24 |
|
|
Total liabilities |
|
$ |
129 |
|
$ |
110 |
|
$ |
168 |
|
|
* |
All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $129 million, $741 million and $1,046 million at January 31, 2015, October 31, 2014 and January 31, 2014, respectively, and the equity fund of $45 million, $45 million and $20 million at January 31, 2015, October 31, 2014 and January 31, 2014, respectively, and the fixed income fund of $10 million at October 31, 2014. There were no transfers between Level 1 and Level 2 during the first three months of 2015 or 2014. |
|
|
|
|
** |
Primarily issued by U.S. government sponsored enterprises. |
|
|
|
|
*** |
Excluded from this table are the Company’s 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. |
|