FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Jan. 31, 2015

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.

- 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.

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