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Fair Value Measurements (Tables)
6 Months Ended
Apr. 30, 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 April 30, 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
$
64

 
$
—

 
$
—

 
$
64

 
$
6

 
$
—

 
$
—

 
$
6

Other
114

 
—

 
—

 
114

 
40

 
—

 
—

 
40

Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity forward contracts(A)
—

 
1

 
—

 
1

 
—

 
2

 
—

 
2

Foreign currency contracts(A)
—

 
4

 
—

 
4

 
—

 
—

 
—

 
—

Interest rate caps(B)
—

 
1

 
—

 
1

 
—

 
1

 
—

 
1

Total assets
$
178

 
$
6

 
$
—

 
$
184

 
$
46

 
$
3

 
$
—

 
$
49

Liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity forward contracts(C)
$
—

 
$
1

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

Foreign currency contracts(C)
—

 
9

 
—

 
9

 
—

 
—

 
—

 
—

Guarantees
—

 
—

 
19

 
19

 
—

 
—

 
23

 
23

Total liabilities
$
—

 
$
10

 
$
19

 
$
29

 
$
—

 
$
—

 
$
23

 
$
23

_________________________
(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 April 30,
 
Six Months Ended April 30,
(in millions)
2017
 
2016
 
2017
 
2016
Guarantees, at beginning of period
$
(23
)
 
$
(10
)
 
$
(23
)
 
$
(10
)
Transfers out of Level 3
—

 
—

 
—

 
—

Net terminations (issuances)
2

 
(10
)
 
1

 
(11
)
Settlements
2

 
1

 
3

 
2

Guarantees, at end of period
$
(19
)
 
$
(19
)
 
$
(19
)
 
$
(19
)
Financial instruments measured at fair value, nonrecurring basis
 
Three Months Ended April 30,
 
Six Months Ended April 30,
(in millions)
2017
 
2016
 
2017
 
2016
Guarantees, at beginning of period
$
(23
)
 
$
(10
)
 
$
(23
)
 
$
(10
)
Transfers out of Level 3
—

 
—

 
—

 
—

Net terminations (issuances)
2

 
(10
)
 
1

 
(11
)
Settlements
2

 
1

 
3

 
2

Guarantees, at end of period
$
(19
)
 
$
(19
)
 
$
(19
)
 
$
(19
)
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 April 30, 2017
 
Estimated Fair Value
 
Carrying Value
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
Retail notes
$
—

 
$
—

 
$
151

 
$
151

 
$
155

Notes receivable
—

 
—

 
—

 
—

 
—

Liabilities
 
 
 
 
 
 
 
 
 
Debt:
 
 
 
 
 
 
 
 
 
Manufacturing operations
 
 
 
 
 
 
 
 
 
Senior Secured Term Loan Credit Facility, as Amended, due 2020
—

 
—

 
1,041

 
1,041

 
1,002

8.25% Senior Notes, due 2022
1,470

 
—

 
—

 
1,470

 
1,421

4.50% Senior Subordinated Convertible Notes, due 2018(A)
—

 
—

 
197

 
197

 
192

4.75% Senior Subordinated Convertible Notes, due 2019(A)
—

 
—

 
401

 
401

 
388

Financing arrangements
—

 
—

 
16

 
16

 
34

Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040
—

 
229

 
—

 
229

 
220

Financed lease obligations
—

 
—

 
102

 
102

 
102

Other
—

 
—

 
20

 
20

 
20

Financial Services operations
 
 
 
 
 
 
 
 
 
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2022
—

 
—

 
737

 
737

 
735

Bank credit facilities, at fixed and variable rates, due dates from 2017 through 2021
—

 
—

 
752

 
752

 
766

Commercial paper, at variable rates, program matures in 2022
93

 
—

 
—

 
93

 
93

Borrowings secured by operating and finance leases, at various rates, due serially through 2021
—

 
—

 
89

 
89

 
88

 
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

_________________________
(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.