FAIR VALUE OF FINANCIAL INSTRUMENTS

9 Months Ended

Jul. 31, 2011

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

(7)	The fair values of financial instruments that do not approximate the carrying values were as follows (in millions of dollars):
		July 31, 2011		October 31, 2010		July 31, 2010
		Carrying Value	Fair Value	Carrying Value	Fair Value	Carrying Value	Fair Value
Receivables financed – net		$ 19,331	$ 19,330	$ 17,474	$ 17,509	$ 16,637	$ 16,673
Retail notes securitized – net		2,481	2,486	2,238	2,257	2,632	2,650
Securitization borrowings		2,381	2,394	2,209	2,229	2,577	2,600
Long-term borrowings due within one year		4,319	4,371	2,889	2,922	3,257	3,284
Long-term borrowings		10,274	10,641	11,452	11,952	11,267	11,733
	Fair values of the long-term Receivables were based on the discounted values of their related cash flows at current market interest rates. The fair values of the remaining Receivables approximated the carrying amounts.
	Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates. Certain long-term borrowings have been swapped to current variable interest rates. The carrying values of these long-term borrowings included adjustments related to fair value hedges.