FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Apr. 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.

	April 30, 2023				October 30, 2022				May 1, 2022
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	38,954	$	38,337	$	36,634	$	35,526	$	34,085	$	33,540
Financing receivables securitized – net		5,659		5,494		5,936		5,698		4,073		4,016
Short-term securitization borrowings		5,379		5,271		5,711		5,577		4,006		3,944
Long-term borrowings due within one year		7,618		7,461		7,466		7,322		8,434		8,398
Long-term borrowings		35,571		34,802		33,566		31,852		32,410		31,975

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, excluding the Company’s cash equivalents, which were carried at cost that approximates fair value and consisted of money market funds and time deposits.

	April 30		October 30		May 1
	2023		2022		2022
Level 1:
Marketable securities
International equity securities	$	2	$	3	$	2
International mutual funds		11
U.S. equity fund		92		70		65
U.S. fixed income fund		97
U.S. government debt securities		64		62		59
Total Level 1 marketable securities		266		135		126
Level 2:
Marketable securities
U.S. government debt securities		138		121		130
Municipal debt securities		70		63		67
Corporate debt securities		213		200		206
International debt securities		1		60		2
Mortgage-backed securities		168		155		151
Total Level 2 marketable securities		590		599		556
Other assets - Derivatives		367		373		407
Accounts payable and accrued expenses - Derivatives		758		1,231		780
Level 3:
Accounts payable and accrued expenses - Deferred consideration		214		236		262

Contractual Maturities of Debt Securities

The contractual maturities of debt securities at April 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	$	25
Due after one through five years		123		116
Due after five through 10 years		192		171
Due after 10 years		206		174
Mortgage-backed securities		193		168
Debt securities	$	739	$	654

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 May 1, 2022.

	Fair Value					Losses
						Three Months Ended			Six Months Ended
	April 30	October 30		May 1		April 30	May 1		April 30	May 1
	2023	2022		2022		2023	2022		2023	2022
Inventories		$	19	$	19		$	8		$	8
Property and equipment – net			15		15			41			41
Other intangible assets – net								28			28