Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 2014

Fair Value Disclosures [Abstract]

Financial instruments measured at fair value, recurring basis

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

	July 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	$	260	$	—	$	—	$	260	$	396	$	—	$	—	$	396
Other	358		—		—		358		434		—		—		434
Derivative financial instruments:
Foreign currency contracts	—		—		—		—		—		4		—		4
Interest rate caps	—		1		—		1		—		1		—		1
Total assets	$	618	$	1	$	—	$	619	$	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

The following table presents the changes for those financial instruments classified within Level 3 of the valuation hierarchy:

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

	Nine Months Ended July 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 July 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)	July 31, 2014			October 31, 2013
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	18		$	15
Specific loss reserve	(7		)	(6		)
Fair value	$	11		$	9

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(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

The following tables present the carrying values and estimated fair values of financial instruments:

	As of July 31, 2014
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	299	$	299	$	296
Notes receivable	—		—		8		8		9
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended, due 2017	—		—		699		699		693
8.25% Senior Notes, due 2021	1,246		—		—		1,246		1,179
3.00% Senior Subordinated Convertible Notes, due 2014(A)	168		—		—		168		165
4.50% Senior Subordinated Convertible Notes, due 2018(A)	—		—		206		206		180
4.75% Senior Subordinated Convertible Notes, due 2019(A)	—		—		436		436		370
Debt of majority-owned dealerships	—		—		34		34		34
Financing arrangements	—		—		23		23		49
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		236		—		236		225
Promissory Note	—		—		13		13		13
Financed lease obligations	—		—		195		195		195
Other	—		—		33		33		35
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		848		848		850
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020	—		—		1,063		1,063		1,091
Commercial paper, at variable rates, program matures in 2015	75		—		—		75		75
Borrowings secured by operating and finance leases, at various rates, due serially through 2018	—		—		47		47		47

	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
3.00% Senior Subordinated Convertible Notes, due 2014(A)	586		—		—		586		544
4.50% Senior Subordinated Convertible Notes, due 2018(A)	—		—		203		203		177
Debt of majority-owned dealerships	—		—		48		48		48
Financing arrangements	—		—		44		44		73
Loan Agreement related to 6.50% 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 Level 1 convertible notes which include the equity feature and internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature.