| 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.
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| 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 | |
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| 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 | |
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| 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 | |
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