Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2014

Financial instruments measured at fair value, recurring basis

The following table presents the financial instruments measured at fair value on a recurring basis:



	January 31, 2014								October 31, 2013
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Marketable securities:
U.S. Treasury bills	$	281	$	—	$	—	$	281	$	396	$	—	$	—	$	396
Other	349		—		—		349		434		—		—		434
Derivative financial instruments:
Foreign currency contracts	—		—		—		—		—		4		—		4
Interest rate caps	—		3		—		3		—		1		—		1
Total assets	$	630	$	3	$	—	$	633	$	830	$	5	$	—	$	835
Liabilities
Derivative financial instruments:
Foreign currency contracts	$	—	$	1	$	—	$	1	$	—	$	—	$	—	$	—
Guarantees	—		—		6		6		—		—		6		6
Total liabilities	$	—	$	1	$	6	$	7	$	—	$	—	$	6	$	6

Financial instruments classified within Level 3



	Three Months Ended January 31,
	2014					2013
(in millions)	Guarantees			Commodity contracts		Guarantees			Commodity contracts
Balance at November 1	$	(6	)	$	—	$	(7	)	$	—
Transfers out of Level 3	—			—		—			—
Issuances	—			—		—			—
Settlements	—			—		—			—
Balance at January 31	$	(6	)	$	—	$	(7	)	$	—
Change in unrealized gains on assets and liabilities still held	$	—		$	—	$	—		$	—

Financial instruments measured at fair value, nonrecurring basis

The following table presents the financial instruments measured at fair value on a nonrecurring basis:



(in millions)	January 31, 2014			October 31, 2013
Level 2 financial instruments
Carrying value of impaired finance receivables ^(A)	$	14		$	15
Specific loss reserve	(5		)	(6		)
Fair value	$	9		$	9

_________________________

(A)

Certain impaired finance receivables are measured at fair value on a nonrecurring basis. An impairment charge is recorded for the amount by which the carrying value of the receivables exceeds the fair value of the underlying collateral, net of remarketing costs. Fair values of the underlying collateral are determined by reference to dealer vehicle value publications adjusted for certain market factors.

Carrying values and estimated fair values of financial instruments

he carrying values and estimated fair values of financial instruments:



	As of January 31, 2014
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	339	$	339	$	335
Notes receivable	—		—		12		12		70
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		723		723		693
8.25% Senior Notes, due 2021	1,264		—		—		1,264		1,178
3.0% Senior Subordinated Convertible Notes, due 2014^(A)	577		—		—		577		551
4.50% Senior Subordinated Convertible Notes, due 2018	—		—		199		199		178
Debt of majority-owned dealerships	—		—		46		46		46
Financing arrangements	—		—		39		39		67
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		224		—		224		225
Promissory Note	—		—		18		18		18
Financed lease obligations	—		—		219		219		219
Other	—		—		31		31		34
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		746		746		752
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019	—		—		798		798		820
Commercial paper, at variable rates, program matures in 2015	22		—		—		22		22
Borrowings secured by operating and finance leases, at various rates, due serially through 2018	—		—		58		58		58



	As of October 31, 2013
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	390	$	390	$	390
Notes receivable	—		—		13		13		14
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended due 2017	—		—		720		720		693
8.25% Senior Notes, due 2021	1,274		—		—		1,274		1,178
3.0% Senior Subordinated Convertible Notes, due 2014^(A)	586		—		—		586		544
4.50% Senior Subordinated Convertible Notes, due 2018	—		—		203		203		177
Debt of majority-owned dealerships	—		—		48		48		48
Financing arrangements	—		—		44		44		73
Loan Agreement related to 6.5% Tax Exempt Bonds, due 2040	—		229		—		229		225
Promissory Note	—		—		20		20		20
Financed Lease Obligations	—		—		218		218		218
Other	—		—		36		36		39
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		775		775		778
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2019	—		—		990		990		1,018
Commercial paper, at variable rates, program matures in 2015	21		—		—		21		21
Borrowings secured by operating and finance leases, at various rates, due serially through 2017	—		—		49		49		49

_________________________


(A)	The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity, while the fair value is based on quoted market prices for the convertible note which includes the equity feature.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References+ Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References+ Details