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Fair Value Measurements (Tables)
 12 Months Ended
Oct. 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 October 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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity forward contracts(A)
$
—

 
$
4

 
$
—

 
$
4

 
$
—

 
$
—

 
$
—

 
$
—

Foreign currency contracts(A)
—

 
5

 
—

 
5

 
—

 
1

 
—

 
1

Total assets
$
—

 
$
9

 
$
—

 
$
9

 
$
—

 
$
1

 
$
—

 
$
1

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

 
$
2

 
$
—

 
$
2

 
$
—

 
$
1

 
$
—

 
$
1

Foreign currency contracts(B)
—

 
3

 
—

 
3

 
—

 
2

 
—

 
2

Guarantees
—

 
—

 
29

 
29

 
—

 
—

 
27

 
27

Total liabilities
$
—

 
$
5

 
$
29

 
$
34

 
$
—

 
$
3

 
$
27

 
$
30

_________________________
(A)
The asset values of commodity forward contracts and foreign currency contracts are included in Other current assets and Other noncurrent assets in the accompanying Consolidated Balance Sheets.
(B)
The liability values of commodity forward contracts and foreign currency contracts are included in Other current liabilities and Other noncurrent 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, 2020
 
October 31, 2019
Guarantees at beginning of period
$
(27
)
 
$
(24
)
Net issuances
(8
)
 
(6
)
Settlements
6

 
3

Guarantees at end of period
$
(29
)
 
$
(27
)
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, 2020

October 31, 2019
Level 2 financial instruments
 
 
 
Impaired finance receivables (A)
$
31

 
$
23

Specific loss reserve
(12
)
 
(11
)
Fair value
$
19

 
$
12

_________________________
(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, 2020
 
Estimated Fair Value
 
Carrying Value
(in millions)
Level 1
 
Level 2
 
Level 3
 
Total
 
Assets
 
 
 
 
 
 
 
 
 
Retail notes
$
—

 
$
—

 
$
223

 
$
223

 
$
222

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

 
—

 
1,538

 
1,538

 
1,543

9.5% Senior Secured Notes, due 2025
—

 
665

 
—

 
665

 
589

6.625% Senior Notes, due 2026
—

 
1,137

 
—

 
1,137

 
1,087

Loan Agreement related to 4.75% Tax-Exempt Bonds, due 2040
—

 
227

 
—

 
227

 
223

Financed lease obligations
—

 
—

 
46

 
46

 
45

Other(A)
—

 
—

 
7

 
7

 
7

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

 
—

 
726

 
726

 
724

Bank credit facilities, due dates from 2021 through 2025
—

 
—

 
914

 
914

 
940

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

 
—

 
171

 
171

 
170

 
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 2022
—

 
—

 
995

 
995

 
991

Bank credit facilities, due dates from 2021 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

_________________________
(A)
Excludes non-financial instrument debt of $2 million as of both October 31, 2020 and 2019.