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Fair Value Measurements (Tables)
 12 Months Ended
Oct. 31, 2019
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, 2019
 
As of October 31, 2018
(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
$
—

 
$
—

 
$
—

 
$
—

 
$
101

 
$
—

 
$
—

 
$
101

Derivative financial instruments:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity forward contracts(A)
—

 
—

 
—

 
—

 
—

 
2

 
—

 
2

Foreign currency contracts(A)
—

 
1

 
—

 
1

 
—

 
—

 
—

 
—

Interest rate caps(B)
—

 
—

 
—

 
—

 
—

 
2

 
—

 
2

Total assets
$
—

 
$
1

 
$
—

 
$
1

 
$
101

 
$
4

 
$
—

 
$
105

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

 
$
1

 
$
—

 
$
1

 
$
—

 
$
—

 
$
—

 
$
—

Foreign currency contracts(C)
—

 
2

 
—

 
2

 
—

 
—

 
—

 
—

Guarantees
—

 
—

 
27

 
27

 
—

 
—

 
24

 
24

Total liabilities
$
—

 
$
3

 
$
27

 
$
30

 
$
—

 
$
—

 
$
24

 
$
24

_________________________
(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:
(in millions)
October 31, 2019
 
October 31, 2018
Guarantees, at beginning of period
(24
)
 
(21
)
Issuances
(6
)
 
(7
)
Settlements
3

 
4

Guarantees, at end of period
$
(27
)
 
$
(24
)
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, 2019

October 31, 2018
Level 2 financial instruments
 
 
 
Impaired finance receivables (A)
$
23

 
$
20

Specific loss reserve
(11
)
 
(9
)
Fair value
$
12

 
$
11

_________________________
(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, 2019
 
Estimated Fair Value
 
Carrying Value
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
Retail notes
$
—

 
$
—

 
$
205

 
$
205

 
$
208

Liabilities
 
 
 
 
 
 
 
 
 
Debt:
 
 
 
 
 
 
 
 
 
Manufacturing operations
 
 
 
 
 
 
 
 
 
Senior Secured Term Loan Credit Agreement, due 2025
—

 
—

 
1,552

 
1,552

 
1,556

6.625% Senior Notes, due 2026
—

 
1,122

 
—

 
1,122

 
1,085

Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040
—

 
234

 
—

 
234

 
220

Financed lease obligations
—

 
—

 
60

 
60

 
60

Other(A)
—

 
—

 
9

 
9

 
9

Financial Services operations
 
 
 
 
 
 
 
 
 
Asset-backed debt issued by consolidated SPEs, due serially through 2023
—

 
—

 
995

 
995

 
991

Bank credit facilities, due dates from 2019 through 2025
—

 
—

 
1,038

 
1,038

 
1,059

Commercial paper, program matures in 2022
84

 
—

 
—

 
84

 
84

Borrowings secured by operating and finance leases, due serially through 2024
—

 
—

 
122

 
122

 
122

 
As of October 31, 2018
 
Estimated Fair Value
 
Carrying Value
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
Retail notes
$
—

 
$
—

 
$
180

 
$
180

 
$
183

Liabilities
 
 
 
 
 
 
 
 
 
Debt:
 
 
 
 
 
 
 
 
 
Manufacturing operations
 
 
 
 
 
 
 
 
 
Senior Secured Term Loan Credit Agreement, due 2025
—

 
—

 
1,597

 
1,597

 
1,570

6.625% Senior Notes, due 2026
—

 
1,122

 
—

 
1,122

 
1,083

4.75% Senior Subordinated Convertible Notes, due 2019(B)
412

 
—

 
—

 
412

 
405

Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040
—

 
235

 
—

 
235

 
220

Financed lease obligations
—

 
—

 
122

 
122

 
122

Other
—

 
—

 
25

 
25

 
26

Financial Services operations
 
 
 
 
 
 
 
 
 
Asset-backed debt issued by consolidated SPEs, due serially through 2023
—

 
—

 
949

 
949

 
948

Senior secured NFC Term Loan, due 2025
—

 
—

 
400

 
400

 
394

Bank credit facilities, due dates from 2019 through 2025
—

 
—

 
511

 
511

 
519

Commercial paper, program matures in 2022
75

 
—

 
—

 
75

 
75

Borrowings secured by operating and finance leases, due serially through 2024
—

 
—

 
104

 
104

 
105

_________________________
(A)
Excludes capital lease obligation debt of $2 million.
(B)
The carrying value represents the consolidated financial statement amount of the debt which excludes the allocation of the conversion feature to equity