XML 93 R38.htm IDEA: XBRL DOCUMENT
v2.4.1.9

FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended
--- | ---
Jan. 31, 2015
FAIR VALUE MEASUREMENTS |
Fair Value of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values in millions of dollars follow:
|  | January 31, 2015 |  | October 31, 2014 |  | January 31, 2014
|  | Carrying Value |  | Fair Value * |  | Carrying Value |  | Fair Value * |  | Carrying Value |  | Fair Value *
Financing receivables - net |  | $ | 25,806 |  | $ | 25,733 |  | $ | 27,422 |  | $ | 27,337 |  | $ | 25,242 |  | $ | 25,129
Financing receivables securitized - net |  | 3,893 |  | 3,868 |  | 4,602 |  | 4,573 |  | 3,491 |  | 3,463
Short-term securitization borrowings |  | 3,888 |  | 3,891 |  | 4,559 |  | 4,562 |  | 3,491 |  | 3,492
Long-term borrowings due within one year: |  |  |  |  |  |  |  |  |  |  |  |
Equipment operations |  | $ | 216 |  | $ | 207 |  | $ | 243 |  | $ | 233 |  | $ | 815 |  | $ | 821
Financial services |  | 4,660 |  | 4,669 |  | 4,730 |  | 4,743 |  | 4,501 |  | 4,511
Total |  | $ | 4,876 |  | $ | 4,876 |  | $ | 4,973 |  | $ | 4,976 |  | $ | 5,316 |  | $ | 5,332
Long-term borrowings: |  |  |  |  |  |  |  |  |  |  |  |
Equipment operations |  | $ | 4,622 |  | $ | 5,344 |  | $ | 4,643 |  | $ | 5,095 |  | $ | 4,828 |  | $ | 5,102
Financial services |  | 19,485 |  | 19,687 |  | 19,738 |  | 19,886 |  | 17,437 |  | 17,619
Total |  | $ | 24,107 |  | $ | 25,031 |  | $ | 24,381 |  | $ | 24,981 |  | $ | 22,265 |  | $ | 22,721
* 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 fair value on a recurring basis in millions of dollars follow:
|  | January 31 2015 * |  | October 31 2014 * |  | January 31 2014 * |
Marketable securities |  |  |  |  |  |  |
Equity fund |  | $ | 45 |  | $ | 45 |  | $ | 20 |
Fixed income fund |  |  |  | 10 |  |  |
U.S. government debt securities |  | 179 |  | 808 |  | 1,113 |
Municipal debt securities |  | 29 |  | 34 |  | 36 |
Corporate debt securities |  | 134 |  | 172 |  | 147 |
Mortgage-backed securities ** |  | 107 |  | 146 |  | 122 |
Total marketable securities |  | 494 |  | 1,215 |  | 1,438 |
Other assets |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |
Interest rate contracts |  | 478 |  | 319 |  | 329 |
Foreign exchange contracts |  | 125 |  | 18 |  | 70 |
Cross-currency interest rate contracts |  | 22 |  | 16 |  | 19 |
Total assets *** |  | $ | 1,119 |  | $ | 1,568 |  | $ | 1,856 |
Accounts payable and accrued expenses |  |  |  |  |  |  |
Derivatives: |  |  |  |  |  |  |
Interest rate contracts |  | $ | 80 |  | $ | 81 |  | $ | 144 |
Foreign exchange contracts |  | 49 |  | 29 |  | 24 |
Total liabilities |  | $ | 129 |  | $ | 110 |  | $ | 168 |
* | All measurements above were Level 2 measurements except for Level 1 measurements of U.S. government debt securities of $129 million, $741 million and $1,046 million at January 31, 2015, October 31, 2014 and January 31, 2014, respectively, and the equity fund of $45 million, $45 million and $20 million at January 31, 2015, October 31, 2014 and January 31, 2014, respectively, and the fixed income fund of $10 million at October 31, 2014. There were no transfers between Level 1 and Level 2 during the first three months of 2015 or 2014.
** | Primarily issued by U.S. government sponsored enterprises.
*** | Excluded from this table are the Company’s 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.
Contractual Maturities of Debt Securities | The contractual maturities of debt securities at January 31, 2015 in millions of dollars are shown below. Actual maturities may differ from those scheduled as a result of prepayments by the issuers. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity.
|  | Amortized Cost |  | Fair Value |
Due in one year or less |  | $ | 113 |  | $ | 113 |
Due after one through five years |  | 70 |  | 73 |
Due after five through 10 years |  | 110 |  | 117 |
Due after 10 years |  | 34 |  | 39 |
Mortgage-backed securities |  | 103 |  | 107 |
Debt securities |  | $ | 430 |  | $ | 449 |
Fair Value, Nonrecurring, Level 3 Measurements | Fair value, nonrecurring, Level 3 measurements from impairments in millions of dollars follow:
|  | Fair Value * |  | Losses |
|  |  |  |  |  |  |  | Three Months Ended |
|  | January 31 |  | October 31 |  | January 31 |  | January 31 |
|  | 2015 |  | 2014 |  | 2014 |  | 2015 |  | 2014 |
Property and equipment - net |  |  |  | $ | 53 |  |  |  |  |  | $ | 26 |
Other assets |  |  |  | $ | 15 |  |  |  |  |  |  |
* See financing receivables with specific allowances in Note 10 that were not significant.

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of maturities of an entity's investments as well as any other information pertinent to the investments. + References No definition available. + Details
Name: | us-gaap_InvestmentsClassifiedByContractualMaturityDateTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration