Industrial & Other Manufacturing: Fair value: Level 3 measurements

(In millions)	Total	Quoted prices in active markets for identical assets (Level 1)	Other observable inputs (Level 2)	Unobservable inputs (Level 3) 1
2025
Common collective trusts
Non-United States equity and global equities	211	—	211	—
Fixed income	32	—	32	—
Fixed income securities	1,647	—	1,647	—
United States treasuries	258	255	3	—
Real estate	248	100	32	116
Cash equivalents	49	25	24	—
Exchange traded funds	105	105	—	—
Other	419	—	50	369
Common collective and other trusts measured at net asset value	1,287
Money market funds measured at net asset value	2
Pending purchases and sales of plan assets, and interest receivable	( 67 )
Total pension plan assets	4,191	485	1,999	485

1 These pension plan assets include private equity, private credit and private real estate funds that generally have redemption notice periods of six months or longer and are often not eligible for redemption until the underlying assets are liquidated or distributed. The Company has unfunded commitments to these funds of approximately $ 158 million at December 31, 2025, which will be satisfied by a reallocation of pension plan assets.

Level 3 — applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities.

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2025 and 2024 were as follows:

October 31,
2025	2024
Total	Level 1	Level 2	Level 3	Other	Total	Level 1	Level 2	Level 3	Other
(in millions)
Assets:
Short-term
Cash equivalents
Money market funds	1,349	1,349	—	—	—	1,141	1,141	—	—	—
Derivative instruments (foreign exchange contracts)	14	—	14	—	—	38	—	38	—	—
Long-term
Equity investments	169	169	—	—	—	80	80	—	—	—
Investments - other	42	—	—	—	42	29	—	—	—	29
Total assets measured at fair value	1,574	1,518	14	—	42	1,288	1,221	38	—	29
Liabilities:	—
Short-term
Derivative instruments (foreign exchange contracts)	8	—	8	—	—	6	—	6	—	—
Long-term
Deferred compensation liability	40	—	40	—	—	34	—	34	—	—
Total liabilities measured at fair value	48	—	48	—	—	40	—	40	—	—

Our money market funds and equity investments with readily determinable fair values are measured at fair value using quoted market prices and, therefore, are classified within Level 1 of the fair value hierarchy. Equity and fixed income investments, or convertible notes without readily determinable fair values that are either measured at cost, adjusted for observable changes in price or impairments, or accounted for under a measurement alternative, and company-owned life insurance contracts measured at cash surrender value are not categorized in the fair value hierarchy and are presented as “investments - other” in the table above. Our deferred compensation liability is classified as Level 2 because the inputs used in the calculations are observable, although the values are not directly based on quoted market prices. Our derivative financial instruments are classified within Level 2 as there is not an active market for each hedge contract, but the inputs used to calculate the value of the instruments are tied to active markets.