FAIR VALUE MEASUREMENTS

3 Months Ended

Jan. 28, 2024

(17) Fair Value Measurements

The fair values of financial instruments that do not approximate the carrying values were as follows. Long-term borrowings exclude finance lease liabilities.


	January 28, 2024				October 29, 2023				January 29, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	43,708	$	43,236	$	43,673	$	42,777	$	36,882	$	35,894
Financing receivables securitized – net		6,400		6,225		7,335		7,056		5,089		4,869
Short-term securitization borrowings		6,116		6,104		6,995		6,921		4,864		4,785
Long-term borrowings due within one year		8,402		8,283		8,331		8,156		7,378		7,220
Long-term borrowings		39,878		39,321		38,428		36,873		35,035		34,149

Fair value measurements above were Level 3 for all financing receivables and Level 2 for all borrowings.

Fair values of the financing receivables that were issued long-term were based on the discounted values of their related cash flows at interest rates currently being offered by us for similar financing receivables. The fair values of the remaining financing receivables approximated the carrying amounts.

Fair values of long-term borrowings and short-term securitization borrowings were based on current market quotes for identical or similar borrowings and credit risk, or on the discounted values of their related cash flows at current market interest rates.

Assets and liabilities measured at fair value on a recurring basis follow, excluding our cash equivalents, which were carried at a cost that approximates fair value and consisted of money market funds and time deposits.


	January 28		October 29		January 29
	2024		2023		2023
Level 1:
Marketable securities
International equity securities	$	5	$	3	$	2
International mutual funds securities		57		101
U.S. equity fund		105		86		86
U.S. fixed income fund		34		32		118
U.S. government debt securities		274		78		64
Total Level 1 marketable securities		475		300		270

Level 2:
Marketable securities
Corporate debt securities		220		244		209
International debt securities		87		1		18
Mortgage-backed securities		161		185		157
Municipal debt securities		69		75		71
U.S. government debt securities		124		141		127
Total Level 2 marketable securities		661		646		582
Other assets – Derivatives		253		292		360
Accounts payable and accrued expenses – Derivatives		744		1,130		891

Level 3:
Accounts payable and accrued expenses – Deferred consideration		176		186		225

The mortgage-backed securities are primarily issued by U.S. government sponsored enterprises.

The contractual maturities of debt securities at January 28, 2024 follow:


	Amortized		Fair
	Cost		Value
Due in one year or less	$	22	$	21
Due after one through five years		242		194
Due after five through 10 years		421		398
Due after 10 years		192		161
Mortgage-backed securities		189		161
Debt securities	$	1,066	$	935

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Mortgage-backed securities contain prepayment provisions and are not categorized by contractual maturity.

The following is a description of the valuation methodologies we use to measure certain financial instruments on the balance sheets at fair value:

Marketable securities – The portfolio of investments is valued on a market approach (matrix pricing model) in which all significant inputs are observable or can be derived from or corroborated by observable market data such as interest rates, yield curves, volatilities, credit risk, and prepayment speeds. Funds are valued using the fund’s net asset value, based on the fair value of the underlying securities. International debt securities are valued using quoted prices for identical assets in inactive markets.

Derivatives – Our derivative financial instruments consist of interest rate contracts (swaps), foreign currency exchange contracts (futures, forwards, and swaps), and cross-currency interest rate contracts (swaps). The portfolio is valued based on an income approach (discounted cash flow) using market observable inputs, including swap curves and both forward and spot exchange rates for currencies.

Financing receivables – Specific reserve impairments are based on the fair value of the collateral, which is measured using a market approach (appraisal values or realizable values).

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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