Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 2015

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, 2015								October 31, 2014
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Marketable securities:
U.S. Treasury bills	$	188	$	—	$	—	$	188	$	256	$	—	$	—	$	256
Other	105		—		—		105		349		—		—		349
Derivative financial instruments:
Foreign currency contracts(A)	—		5		—		5		—		—		—		—
Interest rate caps(B)	—		—		—		—		—		1		—		1
Total assets	$	293	$	5	$	—	$	298	$	605	$	1	$	—	$	606
Liabilities
Derivative financial instruments:
Commodity forward contracts(C)	$	—	$	4	$	—	$	4	$	—	$	2	$	—	$	2
Guarantees	—		—		10		10		—		—		8		8
Total liabilities	$	—	$	4	$	10	$	14	$	—	$	2	$	8	$	10

Financial instruments classified within Level 3

	Nine Months Ended July 31,
(in millions)	2015			2014
Guarantees, at November 1	$	(8	)	$	(6	)
Transfers out of Level 3	—			—
Issuances	(4		)	—
Settlements	2			—
Guarantees, at July 31	$	(10	)	$	(6	)
Change in unrealized gains on assets and liabilities still held	$	—		$	—

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

	Three Months Ended July 31,
(in millions)	2015			2014
Guarantees, at May 1	$	(7	)	$	(6	)
Transfers out of Level 3	—			—
Issuances	(4		)	—
Settlements	1			—
Guarantees, at July 31	$	(10	)	$	(6	)
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, 2015			October 31, 2014
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	21		$	20
Specific loss reserve	(10		)	(6		)
Fair value	$	11		$	14

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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, 2015
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	195	$	195	$	188
Notes receivable	—		—		5		5		5
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended, due 2017	—		—		697		697		695
8.25% Senior Notes, due 2021	1,150		—		—		1,150		1,182
4.50% Senior Subordinated Convertible Notes, due 2018(A)	—		—		166		166		184
4.75% Senior Subordinated Convertible Notes, due 2019(A)	—		—		333		333		377
Debt of majority-owned dealerships	—		—		26		26		26
Financing arrangements	—		—		19		19		44
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		—		243		243		225
Promissory Note	—		—		3		3		3
Financed lease obligations	—		—		129		129		129
Other	—		—		20		20		19
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2018	—		—		1,129		1,129		1,135
Bank revolvers, at fixed and variable rates, due dates from 2015 through 2020	—		—		1,127		1,127		1,147
Commercial paper, at variable rates, program matures in 2017	90		—		—		90		90
Borrowings secured by operating and finance leases, at various rates, due serially through 2018	—		—		26		26		26

	As of October 31, 2014
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	279	$	279	$	275
Notes receivable	—		—		7		7		8
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended, due 2017	—		—		704		704		694
8.25% Senior Notes, due 2021	1,285		—		—		1,285		1,180
4.50% Senior Subordinated Convertible Notes, due 2018(A)	—		—		196		196		181
4.75% Senior Subordinated Convertible Notes, due 2019(A)	—		—		413		413		371
Debt of majority-owned dealerships	—		—		30		30		30
Financing arrangements	—		—		22		22		48
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		232		—		232		225
Promissory Note	—		—		10		10		10
Financed lease obligations	—		—		184		184		184
Other	—		—		28		28		29
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2019	—		—		911		911		914
Bank revolvers, at fixed and variable rates, due dates from 2014 through 2020	—		—		1,214		1,214		1,242
Commercial paper, at variable rates, program matures in 2015	74		—		—		74		74
Borrowings secured by operating and finance leases, at various rates, due serially through 2018	—		—		36		36		36

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(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 internally developed valuation techniques such as discounted cash flow modeling for Level 3 convertible notes which include the equity feature.