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FAIR VALUE MEASUREMENTS

9 Months Ended

Jul. 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.


	July 28, 2024				October 29, 2023				July 30, 2023
	Carrying Value		Fair Value		Carrying Value		Fair Value		Carrying Value		Fair Value
Financing receivables – net	$	43,896	$	43,713	$	43,673	$	42,777	$	41,302	$	40,675
Financing receivables securitized – net		8,274		8,139		7,335		7,056		7,001		6,818
Short-term securitization borrowings		7,869		7,872		6,995		6,921		6,608		6,538
Long-term borrowings due within one year		9,273		9,190		8,331		8,156		7,765		7,568
Long-term borrowings		42,617		42,076		38,428		36,873		38,064		37,121

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. In May 2024, we acquired a held-to-maturity marketable security that matures in less than one year. The carrying value of the held-to-maturity marketable security was $12 as of July 28, 2024, which approximated its fair value.

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.


	July 28		October 29		July 30
	2024		2023		2023
Level 1
Marketable securities:
International equity securities			$	3	$	3
International mutual funds securities				101
U.S. equity fund				86		101
U.S. fixed income fund				32		85
U.S. government debt securities	$	413		78		63
Total Level 1 marketable securities		413		300		252

Level 2
Marketable securities:
Corporate debt securities		220		244		221
International debt securities		145		1		2
Mortgage-backed securities		154		185		163
Municipal debt securities		69		75		69
U.S. government debt securities		127		141		134
Total Level 2 marketable securities		715		646		589
Other assets – Derivatives		361		292		324
Accounts payable and accrued expenses – Derivatives		582		1,130		948

Level 3
Accounts payable and accrued expenses – Deferred consideration		153		186		202

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

The contractual maturities of available-for-sale debt securities at July 28, 2024 follow:


	Amortized		Fair
	Cost		Value
Due in one year or less	$	21	$	21
Due after one through five years		299		258
Due after five through 10 years		557		540
Due after 10 years		185		155
Mortgage-backed securities		182		154
Debt securities	$	1,244	$	1,128

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.

Fair value, nonrecurring Level 3 measurements from impairments were as follows:


	Fair Value				Losses
					Three Months Ended			Nine Months Ended
	July 28		October 29	July 30	July 28		July 30	July 28		July 30
	2024		2023	2023	2024		2023	2024		2023
Assets held for sale	$	2,965			$	53		$	53

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.

Assets held for sale – The impairment was measured at the lower of the carrying amount or fair value less cost to sell. Fair value was based on the probable sale price. The inputs included estimates of the final sale price (see Note 21).

- 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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