XML 168 R64.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2

FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

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.

​

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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (bbb)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ 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 measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

Name:	us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=118260190&loc=d3e13467-108611

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

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

X

- References

No definition available.

+ Details

Name:	us-gaap_FairValueDisclosuresAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
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/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258

+ Details

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