Fair Value Measurements (Tables)

12 Months Ended

Oct. 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 October 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. government and federal agency securities(A)	$	370	$	—	$	—	$	370	$	39	$	—	$	—	$	39
Other(A)	—		—		—		—		7		—		—		7
Derivative financial instruments:
Commodity forward contracts(B)	—		3		—		3		—		2		—		2
Foreign currency contracts(B)	—		3		—		3		—		—		—		—
Interest rate caps(C)	—		1		—		1		—		1		—		1
Total assets	$	370	$	7	$	—	$	377	$	46	$	3	$	—	$	49
Liabilities
Derivative financial instruments:
Commodity forward contracts(D)	$	—	$	1	$	—	$	1	$	—	$	—	$	—	$	—
Foreign currency contracts(D)	—		1		—		1		—		—		—		—
Guarantees	—		—		21		21		—		—		23		23
Total liabilities	$	—	$	2	$	21	$	23	$	—	$	—	$	23	$	23

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(A) Adjustments have been made to reclassify amounts within Other and U.S. government and federal agency securities in order to conform to the 2017 presentation. The reclassification did not impact our Consolidated Balance Sheets.

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

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

(D) 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:

(in millions)	October 31, 2017			October 31, 2016
Guarantees, at beginning of period	$	(23	)	$	(10	)
Transfers out of Level 3	—			—
Issuances	(2		)	(17		)
Settlements	4			4
Guarantees, at end of period	$	(21	)	$	(23	)
Change in unrealized gains on assets (liabilities) still held	$	—		$	—

Financial instruments measured at fair value, nonrecurring basis

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

(in millions)	October 31, 2017			October 31, 2016
Level 2 financial instruments
Carrying value of impaired finance receivables (A)	$	16		$	15
Specific loss reserve	(7		)	(8		)
Fair value	$	9		$	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 October 31, 2017
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	153	$	153	$	161
Notes receivable	—		—		—		—		—
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Facility, as Amended, due 2020	—		—		1,019		1,019		1,003
8.25% Senior Notes, due 2022	1,450		—		—		1,450		1,423
4.50% Senior Subordinated Convertible Notes, due 2018(A)	208		—		—		208		194
4.75% Senior Subordinated Convertible Notes, due 2019(A)	446		—		—		446		394
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		243		—		243		220
Financed lease obligations	—		—		130		130		130
Other	—		—		23		23		39
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2023	—		—		851		851		849
Bank credit facilities, at fixed and variable rates, due dates from 2018 through 2023	—		—		592		592		616
Commercial paper, at variable rates, program matures in 2022	92		—		—		92		92
Borrowings secured by operating and finance leases, at various rates, due serially through 2022	—		—		94		94		94

	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		3
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)	190		—		—		190		189
4.75% Senior Subordinated Convertible Notes, due 2019(A)	381		—		—		381		383
Loan Agreement related to 6.50% Tax Exempt Bonds, due 2040	—		233		—		233		220
Financed lease obligations	—		—		52		52		52
Other	—		—		43		43		65
Financial Services operations
Asset-backed debt issued by consolidated SPEs, at various rates, due serially through 2023	—		—		754		754		753
Bank credit facilities, at fixed and variable rates, due dates from 2018 through 2023	—		—		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 2022	—		—		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. As of October 31, 2017 and 2016, the estimated fair value is derived from quoted prices in active markets which include the equity feature.