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MARKETABLE SECURITIES

12 Months Ended

Nov. 01, 2020

MARKETABLE SECURITIES

MARKETABLE SECURITIES

12. MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale. Prior to 2019, all unrealized gains and losses on marketable securities were shown as a component of stockholders’ equity. Beginning in 2019 with the adoption of ASU No. 2016-01, unrealized gains and losses on equity securities are shown as a component of net income. Realized gains or losses from the sales of marketable securities are based on the specific identification method.

The amortized cost and fair value of marketable securities at November 1, 2020 and November 3, 2019 in millions of dollars follow:


					Gross			Gross
		Amortized			Unrealized			Unrealized			Fair
		Cost			Gains			Losses			Value
2020
U.S. equity fund											$	62
International equity securities												2
Total equity securities												64
U.S. government debt securities		$	159		$	10		$	1			168
Municipal debt securities			63			5						68
Corporate debt securities			173			15						188
International debt securities			9						3			6
Mortgage-backed securities*			140			7						147
Total debt securities		$	544		$	37		$	4			577
Marketable securities											$	641
2019
Equity fund											$	59
Total equity securities												59
U.S. government debt securities		$	128		$	4		$	1			131
Municipal debt securities			57			3						60
Corporate debt securities			157			8						165
International debt securities			9						3			6
Mortgage-backed securities*			155			5						160
Total debt securities		$	506		$	20		$	4			522
Marketable securities											$	581

* Primarily issued by U.S. government sponsored enterprises.

Equity Securities

Proceeds and realized gains on equity securities sold during 2020, 2019, and 2018 were not material. Unrealized gains on equity securities during 2020 and 2019 in millions of dollars follow:


		2020			2019
Net gain recognized on equity securities		$	8		$	7
Less: Net gain on equity securities sold			1
Unrealized gains on equity securities		$	7		$	7

Debt Securities

The contractual maturities of debt securities at November 1, 2020 in millions of dollars follow:


		Amortized			Fair
		Cost			Value
Due in one year or less		$	18		$	18
Due after one through five years			90			94
Due after five through 10 years			113			121
Due after 10 years			183			197
Mortgage-backed securities			140			147
Debt securities		$	544		$	577

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Proceeds from the sales of debt securities were $28 million in 2020, $31 million in 2019, and $40 million in 2018. Realized gains, realized losses, the increase (decrease) in net unrealized gains or losses, and unrealized losses that have been continuous for over twelve months were not significant in 2020, 2019, and 2018. Unrealized losses at November 1, 2020 and November 3, 2019 were not recognized in income due to the ability and intent to hold to maturity. There were no significant impairment write-downs in the periods reported.