Fair Value Measurements (Tables)

9 Months Ended

Jul. 31, 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 July 31, 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)	$	—	$	12	$	—	$	12	$	—	$	1	$	—	$	1
Total assets	$	—	$	12	$	—	$	12	$	—	$	1	$	—	$	1
Liabilities
Derivative financial instruments:
Commodity forward contracts(B)	$	—	$	4	$	—	$	4	$	—	$	1	$	—	$	1
Foreign currency contracts(C)	—		2		—		2		—		2		—		2
Guarantees	—		—		29		29		—		—		27		27
Total liabilities	$	—	$	6	$	29	$	35	$	—	$	3	$	27	$	30

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(A) The asset value of foreign currency contracts is primarily included in Other current assets and an immaterial portion is included in Other noncurrent assets in the accompanying Consolidated Balance Sheets.

(B)

The liability values of commodity forward contracts are 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 July 31,						Nine Months Ended July 31,
(in millions)	2020			2019			2020			2019
Guarantees, at beginning of period	$	(28	)	$	(22	)	$	(27	)	$	(24	)
Net issuances	(2		)	(4		)	(7		)	(3		)
Settlements	1			—			5			1
Guarantees, at end of period	$	(29	)	$	(26	)	$	(29	)	$	(26	)

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 July 31, 2020
	Estimated Fair Value								Carrying Value
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Retail notes	$	—	$	—	$	209	$	209	$	207
Liabilities
Debt:
Manufacturing operations
Senior Secured Term Loan Credit Agreement, due 2025	—		—		1,517		1,517		1,547
9.5% Senior Secured Notes, due 2025	—		685		—		685		589
6.625% Senior Notes, due 2026	—		1,125		—		1,125		1,087
Loan Agreement related to 6.75% Tax Exempt Bonds, due 2040	—		226		—		226		220
Financed lease obligations	—		—		48		48		48
Other(A)	—		—		40		40		40
Financial Services operations
Asset-backed debt issued by consolidated SPEs, due serially through 2022	—		—		1,011		1,011		1,008
Bank credit facilities, due dates from 2020 through 2025	—		—		881		881		914
Borrowings secured by operating and finance leases, due serially through 2024	—		—		105		105		105

	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 2022	—		—		995		995		991
Bank credit facilities, due dates from 2020 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 July 31, 2020 and October 31, 2019, respectively.