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FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended
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Nov. 03, 2019
FAIR VALUE MEASUREMENTS |
Fair Value of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values at November 3, 2019 and October 28, 2018 in millions of dollars follow: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 | ​
​ | ​ | Carrying | ​ | Fair | ​ | Carrying | ​ | Fair | ​
​ |  | Value |  | Value* |  | Value |  | Value* |
Financing receivables – net: |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Equipment operations | ​ | $ | 65 | ​ | $ | 61 | ​ | $ | 93 | ​ | $ | 91 | ​
Financial services | ​ | ​ | 29,130 | ​ | ​ | 29,106 | ​ | ​ | 26,961 | ​ | ​ | 26,722 | ​
Total | ​ | $ | 29,195 | ​ | $ | 29,167 | ​ | $ | 27,054 | ​ | $ | 26,813 | ​
Financing receivables securitized – net: |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Equipment operations | ​ | $ | 44 | ​ | $ | 43 | ​ | $ | 76 | ​ | $ | 73 | ​
Financial services | ​ | ​ | 4,339 | ​ | ​ | 4,362 | ​ | ​ | 3,946 | ​ | ​ | 3,895 | ​
Total | ​ | $ | 4,383 | ​ | $ | 4,405 | ​ | $ | 4,022 | ​ | $ | 3,968 | ​
Short-term securitization borrowings: |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ | ​
Equipment operations | ​ | $ | 44 | ​ | $ | 45 | ​ | $ | 75 | ​ | $ | 75 | ​
Financial services | ​ | ​ | 4,277 | ​ | ​ | 4,302 | ​ | ​ | 3,882 | ​ | ​ | 3,870 | ​
Total | ​ | $ | 4,321 | ​ | $ | 4,347 | ​ | $ | 3,957 | ​ | $ | 3,945 | ​
Long-term borrowings due within one year: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equipment operations |  | $ | 642 |  | $ | 645 |  | $ | 970 |  | $ | 979 | ​
Financial services | ​ |  | 6,786 | ​ |  | 6,788 | ​ |  | 5,427 | ​ |  | 5,411 | ​
Total |  | $ | 7,428 |  | $ | 7,433 |  | $ | 6,397 |  | $ | 6,390 | ​
Long-term borrowings: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equipment operations |  | $ | 5,415 |  | $ | 6,138 |  | $ | 4,714 |  | $ | 4,948 | ​
Financial services | ​ |  | 24,814 | ​ |  | 25,122 | ​ |  | 22,523 | ​ |  | 22,590 | ​
Total |  | $ | 30,229 |  | $ | 31,260 |  | $ | 27,237 |  | $ | 27,538 | ​
* Fair value measurements above were Level 3 for all financing receivables, Level 3 for equipment operations short-term securitization borrowings, and Level 2 for all other borrowings. ​
Assets and Liabilities Measured at Fair Value on a Recurring Basis | Assets and liabilities measured at November 3, 2019 and October 28, 2018 at fair value on a recurring basis in millions of dollars follow*: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018 |
Level 1: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Marketable securities | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equity fund |  | $ | 59 |  | $ | 46 | ​
U.S. government debt securities | ​ |  | 50 | ​ |  | 44 | ​
Total Level 1 marketable securities | ​ | ​ | 109 | ​ | ​ | 90 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Level 2: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Marketable securities | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government debt securities | ​ | ​ | 81 | ​ | ​ | 67 | ​
Municipal debt securities | ​ |  | 60 | ​ |  | 46 | ​
Corporate debt securities | ​ |  | 165 | ​ |  | 140 | ​
International debt securities | ​ | ​ | 5 | ​ | ​ | 2 | ​
Mortgage-backed securities** | ​ |  | 160 | ​ |  | 137 | ​
Total Level 2 marketable securities | ​ |  | 471 | ​ |  | 392 | ​
Other assets | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivatives: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts | ​ |  | 363 | ​ |  | 80 | ​
Foreign exchange contracts | ​ |  | 20 | ​ |  | 83 | ​
Cross-currency interest rate contracts | ​ |  | 1 | ​ |  | 5 | ​
Total Level 2 other assets | ​ | ​ | 384 | ​ | ​ | 168 | ​
Accounts payable and accrued expenses | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivatives: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts |  | ​ | 65 |  | ​ | 350 | ​
Foreign exchange contracts | ​ |  | 71 | ​ |  | 49 | ​
Cross-currency interest rate contracts | ​ | ​ | 3 | ​ |  | ​ | ​
Total Level 2 accounts payable and accrued expenses | ​ | ​ | 139 | ​ | ​ | 399 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Level 3: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Marketable securities | ​ | ​ | ​ | ​ | ​ | ​ | ​
International debt securities |  | ​ | 1 |  | ​ | 8 | ​
* Excluded from this table were the company’s cash equivalents, which were carried at cost that approximates fair value. The cash equivalents consist primarily of money market funds and time deposits. ** Primarily issued by U.S. government sponsored enterprises. ​
Fair Value, Recurring, Level 3 Measurements | Fair value, recurring Level 3 measurements from available-for-sale marketable securities at November 3, 2019, October 28, 2018, and October 29, 2017 in millions of dollars follow: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018 |  | 2017 | ​ | ​
Beginning of year balance | ​ | $ | 8 | ​ | $ | 17 |  | $ | 28 | ​ | ​
Principal payments | ​ | ​ | (8) | ​ | ​ | (9) | ​ | ​ | (13) | ​ | ​
Change in unrealized gain | ​ | ​ | ​ | ​ | ​ | 1 | ​ | ​ | 2 | ​ | ​
Other | ​ | ​ | 1 | ​ | ​ | (1) | ​ | ​ | ​ | ​ | ​
End of year balance | ​ | $ | 1 | ​ | $ | 8 | ​ | $ | 17 | ​ | ​
​
Fair Value, Nonrecurring Measurements From Impairments | Fair value, nonrecurring measurements from impairments at November 3, 2019 and October 28, 2018 in millions of dollars follow: ​ ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Fair Value* | ​ | Losses* | ​
​ |  | 2019 |  | 2018 |  | 2019 |  | 2018 |  | 2017 | ​
Equipment on operating leases – net |  | $ | 855 |  | ​ | ​ |  | $ | 59 |  | ​ | ​ | ​ | ​ | ​ | ​
Investments in unconsolidated affiliates | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | $ | 40 | ​
Other assets |  | $ | 142 | ​ | ​ | ​ |  | $ | 18 | ​ | ​ | ​ | ​ | ​ | ​ | ​
* Fair value losses at October 29, 2017 were a Level 1 measurement. See financing receivables with specific allowances in Note 13 that were not significant. See Note 5 for impairments. ​

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