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FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended
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May 01, 2022
FAIR VALUE MEASUREMENTS |
Fair Value of Financial Instruments | The fair values of financial instruments that do not approximate the carrying values were as follows in millions of dollars. Long-term borrowings exclude finance lease liabilities.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | May 1, 2022 | ​ | October 31, 2021 | ​ | May 2, 2021 |
​ | ​ | Carrying Value | ​ | Fair Value | ​ | Carrying Value | ​ | Fair Value | ​ | Carrying Value | ​ | Fair Value |
Financing receivables – net | ​ | $ | 34,085 | ​ | $ | 33,540 | ​ | $ | 33,799 | ​ | $ | 33,718 | ​ | $ | 30,994 | ​ | $ | 31,165 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Financing receivables securitized – net | ​ | $ | 4,073 | ​ | $ | 4,016 | ​ | $ | 4,659 | ​ | $ | 4,704 | ​ | $ | 4,107 | ​ | $ | 4,188 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Short-term securitization borrowings: | ​ | ​ | ​ | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equipment operations | ​ | $ | 5 | ​ | $ | 6 | ​ | $ | 10 | ​ | $ | 10 | ​ | $ | 14 | ​ | $ | 15 | ​
Financial services | ​ | ​ | 4,001 | ​ | ​ | 3,938 | ​ | ​ | 4,595 | ​ | ​ | 4,600 | ​ | ​ | 4,092 | ​ | ​ | 4,117 | ​
Total | ​ | $ | 4,006 | ​ | $ | 3,944 | ​ | $ | 4,605 | ​ | $ | 4,610 | ​ | $ | 4,106 | ​ | $ | 4,132 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Long-term borrowings due within one year: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equipment operations | ​ | $ | 1,126 | ​ | $ | 1,128 | ​ | $ | 1,213 |  | $ | 1,222 | ​ | $ | 206 | ​ | $ | 211 | ​
Financial services | ​ | ​ | 7,308 | ​ | ​ | 7,270 | ​ |  | 7,117 | ​ |  | 7,142 | ​ |  | 7,211 | ​ | ​ | 7,293 | ​
Total | ​ | $ | 8,434 | ​ | $ | 8,398 | ​ | $ | 8,330 | ​ | $ | 8,364 | ​ | $ | 7,417 | ​ | $ | 7,504 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Long-term borrowings: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Equipment operations | ​ | $ | 8,519 | ​ | $ | 8,546 | ​ | $ | 8,877 |  | $ | 10,244 | ​ | $ | 10,079 | ​ | $ | 11,391 | ​
Financial services | ​ | ​ | 23,891 | ​ | ​ | 23,429 | ​ |  | 23,973 | ​ |  | 24,262 | ​ |  | 23,222 | ​ | ​ | 23,701 | ​
Total | ​ | $ | 32,410 | ​ | $ | 31,975 | ​ | $ | 32,850 | ​ | $ | 34,506 | ​ | $ | 33,301 | ​ | $ | 35,092 | ​
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 fair value on a recurring basis in millions of dollars follow, excluding the Company’s cash equivalents, which were carried at cost that approximates fair value and consisted primarily of money market funds and time deposits.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | May 1 |  | October 31 |  | May 2 |
​ | ​ | 2022 | ​ | 2021 | ​ | 2021 |
Level 1: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Marketable securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
International equity securities | ​ | $ | 2 | ​ | $ | 2 | ​ | $ | 2 | ​
U.S. equity fund | ​ | ​ | 65 | ​ | ​ | 75 | ​ | ​ | 71 | ​
U.S. government debt securities | ​ | ​ | 59 | ​ |  | 59 | ​ |  | 59 | ​
Total Level 1 marketable securities | ​ | ​ | 126 | ​ | ​ | 136 | ​ | ​ | 132 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Level 2: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Marketable securities | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S. government debt securities | ​ | ​ | 130 | ​ | ​ | 139 | ​ | ​ | 121 | ​
Municipal debt securities | ​ | ​ | 67 | ​ |  | 73 | ​ |  | 69 | ​
Corporate debt securities | ​ | ​ | 206 | ​ |  | 224 | ​ |  | 202 | ​
International debt securities | ​ | ​ | 2 | ​ | ​ | 2 | ​ | ​ | 4 | ​
Mortgage-backed securities | ​ | ​ | 151 | ​ |  | 154 | ​ |  | 140 | ​
Total Level 2 marketable securities | ​ | ​ | 556 | ​ |  | 592 | ​ |  | 536 | ​
Other assets | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivatives | ​ | ​ | 407 | ​ | ​ | 275 | ​ | ​ | 402 | ​
Accounts payable and accrued expenses | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Derivatives | ​ | ​ | 780 | ​ | ​ | 228 | ​ | ​ | 223 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Level 3: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Accounts payable and accrued expenses – Deferred consideration | ​ | ​ | 262 | ​ | ​ | ​ | ​ | ​ | ​ | ​
Contractual Maturities of Debt Securities | The contractual maturities of debt securities at May 1, 2022 in millions of dollars are shown below. 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. Mortgage-backed securities were primarily issued by U.S. government sponsored enterprises. Unrealized losses of debt securities at May 1, 2022 were not recognized in income due to the ability and intent to hold to maturity.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Amortized | ​ | Fair | ​
​ | ​ | Cost | ​ | Value | ​
Due in one year or less |  | $ | 27 | ​ | $ | 27 | ​
Due after one through five years | ​ | ​ | 92 | ​ | ​ | 90 | ​
Due after five through 10 years | ​ | ​ | 171 | ​ | ​ | 155 | ​
Due after 10 years | ​ | ​ | 221 | ​ | ​ | 192 | ​
Mortgage-backed securities | ​ | ​ | 167 | ​ | ​ | 151 | ​
Debt securities |  | $ | 678 |  | $ | 615 | ​
​
Fair Value, Nonrecurring Level 3 Measurements from Impairments | Fair value, nonrecurring Level 3 measurements from impairments, excluding financing receivables with specific allowances which were not significant, were as follows in millions of dollars. Property and equipment – net and Other assets fair value for October 31, 2021 represents the fair value assessment at January 31, 2021.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Fair Value | ​ | Losses | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | Three Months Ended | ​ | Six Months Ended | ​
​ | ​ | May 1 | ​ | October 31 | ​ | May 2 | ​ | May 1 | ​ | May 2 | ​ | May 1 | ​ | May 2 | ​
​ |  | 2022 |  | 2021 |  | 2021 |  | 2022 |  | 2021 |  | 2022 |  | 2021 |
Inventories | ​ | $ | 19 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 8 | ​ | ​ | ​ | ​ | $ | 8 | ​ | ​ | ​ | ​
Property and equipment – net | ​ | $ | 15 | ​ | $ | 41 | ​ | ​ | ​ | ​ | $ | 41 | ​ | ​ | ​ | ​ | $ | 41 | ​ | $ | 44 | ​
Other intangible assets – net | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 28 | ​ | ​ | ​ | ​ | $ | 28 | ​ | ​ | ​ | ​
Other assets | ​ | ​ | ​ | ​ | $ | 1 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | $ | 6 | ​

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- 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=123874694&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=123874694&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=123874694&loc=d3e19207-110258 + Details
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- 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=123874694&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=123874694&loc=d3e19207-110258 + Details
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