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FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended
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Oct. 31, 2014
FAIR VALUE MEASUREMENTS |
Fair Value of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values at October 31 in millions of dollars follow:
|  | 2014 |  | 2013
|  | Carrying |  | Fair |  | Carrying |  | Fair
|  | Value |  | Value* |  | Value |  | Value*
Financing receivables – net |  | $ | 27,422 |  | $ | 27,337 |  | $ | 25,633 |  | $ | 25,572
Financing receivables securitized – net |  | $ | 4,602 |  | $ | 4,573 |  | $ | 4,153 |  | $ | 4,124
Short-term securitization borrowings |  | $ | 4,559 |  | $ | 4,562 |  | $ | 4,109 |  | $ | 4,113
Long-term borrowings due within one year: |  |  |  |  |  |  |  |
Equipment operations |  | $ | 243 |  | $ | 233 |  | $ | 821 |  | $ | 837
Financial services |  | 4,730 |  | 4,743 |  | 4,408 |  | 4,441
Total |  | $ | 4,973 |  | $ | 4,976 |  | $ | 5,229 |  | $ | 5,278
Long-term borrowings: |  |  |  |  |  |  |  |
Equipment operations |  | $ | 4,643 |  | $ | 5,095 |  | $ | 4,871 |  | $ | 5,141
Financial services |  | 19,738 |  | 19,886 |  | 16,707 |  | 16,887
Total |  | $ | 24,381 |  | $ | 24,981 |  | $ | 21,578 |  | $ | 22,028
* Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at October 31 at fair value on a recurring basis in millions of dollars follow:
|  | 2014* |  | 2013*
Marketable securities |  |  |  |
Equity fund |  | $ | 45 |  | $ | 20
Fixed income fund |  | 10 |  |
U.S. government debt securities |  | 808 |  | 1,312
Municipal debt securities |  | 34 |  | 36
Corporate debt securities |  | 172 |  | 138
Mortgage-backed securities** |  | 146 |  | 119
Total marketable securities |  | 1,215 |  | 1,625
Other assets Derivatives: |  |  |  |
Interest rate contracts |  | 319 |  | 347
Foreign exchange contracts |  | 18 |  | 32
Cross-currency interest rate contracts |  | 16 |  | 15
Total assets*** |  | $ | 1,568 |  | $ | 2,019
Accounts payable and accrued expenses Derivatives: |  |  |  |
Interest rate contracts |  | $ | 81 |  | $ | 120
Foreign exchange contracts |  | 29 |  | 42
Cross-currency interest rate contracts |  |  |  | 17
Total liabilities |  | $ | 110 |  | $ | 179
* | All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $741 million and $1,247 million at October 31, 2014 and 2013, respectively, and the equity fund of $45 million and $20 million at October 31, 2014 and 2013, respectively, and the fixed income fund of $10 million at October 31, 2014. There were no transfers between Level 1 and Level 2 during 2014, 2013 and 2012.
** | Primarily issued by U.S. government sponsored enterprises.
*** | Excluded from this table were cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds that were Level 1 measurements.
Fair Value, Nonrecurring, Level 3 Measurements | Fair value, nonrecurring, Level 3 measurements from impairments at October 31 in millions of dollars follow:
|  | Fair Value* |  | Losses*
|  | 2014 |  | 2013 |  | 2014 |  | 2013 |  | 2012
Property and equipment – net |  | $ | 53 |  | $ | 36 |  | $ | 44 |  | $ | 48 |  |
Goodwill |  |  |  |  |  |  |  |  |  | $ | 33
Other intangible assets – net |  |  |  |  |  |  |  | $ | 9 |  |
Other assets |  | $ | 15 |  |  |  | $ | 16 |  |  |  |
Assets held for sale – Water operations |  |  |  |  |  | $ | 36 |  |  |  |
* See financing receivables with specific allowances in Note 12 that were not significant. See Note 5 for impairments.

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19296-110258 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 10 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13433-108611 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13467-108611 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=35750535&loc=d3e13476-108611 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 30 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6447952&loc=d3e13220-108610 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=36462937&loc=d3e19190-110258 + Details
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