Fair Value Measurements (Tables)

3 Months Ended

Jan. 31, 2017

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:

	As of January 31, 2017								As of October 31, 2016
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Marketable securities:
U.S. Treasury bills	$	15	$	—	$	—	$	15	$	6	$	—	$	—	$	6
Other	183		—		—		183		40		—		—		40
Derivative financial instruments:
Commodity forward contracts(A)	—		1		—		1		—		2		—		2
Foreign currency contracts(A)	—		2		—		2		—		—		—		—
Interest rate caps(B)	—		1		—		1		—		1		—		1
Total assets	$	198	$	4	$	—	$	202	$	46	$	3	$	—	$	49
Liabilities
Derivative financial instruments:
Foreign currency contracts(C)	$	—	$	4	$	—	$	4	$	—	$	—	$	—	$	—
Guarantees	—		—		23		23		—		—		23		23
Total liabilities	$	—	$	4	$	23	$	27	$	—	$	—	$	23	$	23

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(A) The asset value of commodity forward contracts and foreign currency contracts is included in Other current assets in the accompanying Consolidated Balance Sheets.

(B) The asset value of interest rate caps is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets.

(C) The liability value of commodity forward contracts and foreign currency contracts is included in Other current liabilities in the accompanying Consolidated Balance Sheets.

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 January 31,
(in millions)	2017			2016
Guarantees, at beginning of period	$	(23	)	$	(10	)
Transfers out of Level 3	—			—
Issuances	(1		)	(1		)
Settlements	1			1
Guarantees, at end of period	$	(23	)	$	(10	)
Change in unrealized gains on assets (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, 2017			October 31, 2016
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	12		$	15
Specific loss reserve	(9		)	(8		)
Fair value	$	3		$	7

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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 January 31, 2017
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	137	$	137	$	140
Notes receivable	—		—		—		—		—
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended, due 2020	—		—		1,040		1,040		1,007
8.25% Senior Notes, due 2022	1,465		—		—		1,465		1,420
4.50% Senior Subordinated Convertible Notes, due 2018(A)	—		—		198		198		190
4.75% Senior Subordinated Convertible Notes, due 2019(A)	—		—		405		405		386
Financing arrangements	—		—		16		16		35
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		229		—		229		220
Financed lease obligations	—		—		107		107		107
Other	—		—		24		24		24
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2022	—		—		645		645		646
Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2021	—		—		643		643		655
Commercial paper, at variable rates, program matures in 2022	73		—		—		73		73
Borrowings secured by operating and finance leases, at various rates, due serially through 2021	—		—		98		98		97

	As of October 31, 2016
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	153	$	153	$	151
Notes receivable	—		—		1		1		1
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended, due 2020	—		—		1,037		1,037		1,009
8.25% Senior Notes, due 2022	1,180		—		—		1,180		1,173
4.50% Senior Subordinated Convertible Notes, due 2018(A)	—		—		189		189		189
4.75% Senior Subordinated Convertible Notes, due 2019(A)	—		—		382		382		383
Financing arrangements	—		—		17		17		37
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		233		—		233		220
Financed lease obligations	—		—		52		52		52
Other	—		—		26		26		28
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2017	—		—		754		754		753
Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2021	—		—		851		851		861
Commercial paper, at variable rates, program matures in 2022	96		—		—		96		96
Borrowings secured by operating and finance leases, at various rates, due serially through 2021	—		—		98		98		98

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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.