Fair Value Measurements (Tables)

6 Months Ended

Apr. 30, 2020

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, 2020								As of October 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets
Derivative financial instruments:
Foreign currency contracts(A)	$	—	$	19	$	—	$	19	$	—	$	1	$	—	$	1
Total assets	$	—	$	19	$	—	$	19	$	—	$	1	$	—	$	1
Liabilities
Derivative financial instruments:
Commodity forward contracts(B)	$	—	$	8	$	—	$	8	$	—	$	1	$	—	$	1
Foreign currency contracts(C)	—		4		—		4		—		2		—		2
Guarantees	—		—		28		28		—		—		27		27
Total liabilities	$	—	$	12	$	28	$	40	$	—	$	3	$	27	$	30

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

(B)

The liability value of commodity forward 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)	2020			2019			2020			2019
Guarantees, at beginning of period	$	(24	)	$	(21	)	$	(27	)	$	(24	)
Net issuances	(7		)	(1		)	(5		)	1
Settlements	3			—			4			1
Guarantees, at end of period	$	(28	)	$	(22	)	$	(28	)	$	(22	)

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, 2020
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	167	$	167	$	169
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Agreement, due 2025	—		—		1,415		1,415		1,550
9.5% Senior Secured Notes, due 2025	—		629		—		629		588
6.625% Senior Notes, due 2026	—		941		—		941		1,086
Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040	—		218		—		218		220
Financed lease obligations	—		—		51		51		51
Other(A)	—		—		36		36		39
Financial Services operations
Asset-backed debt issued by consolidated SPEs, due serially through 2023	—		—		788		788		788
Bank credit facilities, due dates from 2020 through 2025	—		—		954		954		991
Commercial paper, program matures in 2022	—		—		—		—		—
Borrowings secured by operating and finance leases, due serially through 2024	—		—		115		115		115

	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, at various rates, due serially through 2023	—		—		995		995		991
Bank credit facilities, due dates from 2019 through 2025	—		—		1,038		1,038		1,059
Commercial paper, at variable rates, program matures in 2022	84		—		—		84		84
Borrowings secured by operating and finance leases, due serially through 2024	—		—		122		122		122

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(A)

Excludes non-financial instrument debt of $1 million and $2 million as of April 30, 2020 and October 31, 2019, respectively.