Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2017

Investments, All Other Investments [Abstract]

Cash Equivalents and Available-for-Sale Investments

Cash equivalents and available-for-sale investments were as follows:



	As of July 31, 2017									As of October 31, 2016
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Time deposits	$	1,422	$	—	$	—		$	1,422	$	4,024	$	—	$	—		$	4,024
Money market funds	3,357		—		—			3,357		6,495		—		—			6,495
Total cash equivalents	4,779		—		—			4,779		10,519		—		—			10,519
Available-for-Sale Investments:
Debt securities:
Time deposits	11		—		—			11		11		—		—			11
Foreign bonds	199		42		—			241		131		49		—			180
Other debt securities	38		—		(12		)	26		40		—		(12		)	28
Total debt securities	248		42		(12		)	278		182		49		(12		)	219
Equity securities:
Equity securities in public companies	10		4		—			14		20		—		(4		)	16
Total equity securities	10		4		—			14		20		—		(4		)	16
Total available-for-sale investments	258		46		(12		)	292		202		49		(16		)	235
Total cash equivalents and available-for-sale investments	$	5,037	$	46	$	(12	)	$	5,071	$	10,721	$	49	$	(16	)	$	10,754

Contractual Maturities of Investments in Available-for-Sale Debt Securities

Contractual maturities of investments in available-for-sale debt securities were as follows:



	July 31, 2017
	Amortized Cost		Fair Value
	In millions
Due in more than five years	$	248	$	278

Gross Notional and Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets

The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:



	As of July 31, 2017										As of October 31, 2016
			Fair Value										Fair Value
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	9,500	$	—	$	—	$	—	$	99	$	9,500	$	—	$	109	$	—	$	6
Cash flow hedges:
Foreign currency contracts	7,464		80		45		236		112		6,450		247		172		31		15
Net investment hedges:
Foreign currency contracts	1,989		18		9		75		52		1,891		53		28		23		28
Total derivatives designated as hedging instruments	18,953		98		54		311		263		17,841		300		309		54		49
Derivatives not designated as hedging instruments
Foreign currency contracts	8,978		81		2		119		16		16,496		100		11		103		11
Other derivatives	102		3		—		—		—		135		—		—		2		—
Total derivatives not designated as hedging instruments	9,080		84		2		119		16		16,631		100		11		105		11
Total derivatives	$	28,033	$	182	$	56	$	430	$	279	$	34,472	$	400	$	320	$	159	$	60

Offsetting Assets

As of July 31, 2017 and October 31, 2016, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows:



	As of July 31, 2017
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	238	$	—	$	238	$	196	$	50	⁽¹⁾	$	(8	)
Derivative liabilities	$	709	$	—	$	709	$	196	$	374	⁽²⁾	$	139



	As of October 31, 2016
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	720	$	—	$	720	$	207	$	465	⁽¹⁾	$	48
Derivative liabilities	$	219	$	—	$	219	$	207	$	10	⁽³⁾	$	2


(1)	Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.


(2)	Represents the collateral posted by the Company in cash as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. Of the $374 million of cash collateral posted, $335 million was in cash and, $39 million was through re-use of counterparty collateral.


(3)	Represents the collateral posted by the Company through re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

Offsetting Liabilities

As of July 31, 2017 and October 31, 2016, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows:



	As of July 31, 2017
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	238	$	—	$	238	$	196	$	50	⁽¹⁾	$	(8	)
Derivative liabilities	$	709	$	—	$	709	$	196	$	374	⁽²⁾	$	139



	As of October 31, 2016
	In the Condensed Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	720	$	—	$	720	$	207	$	465	⁽¹⁾	$	48
Derivative liabilities	$	219	$	—	$	219	$	207	$	10	⁽³⁾	$	2


(1)	Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.


(2)	Represents the collateral posted by the Company in cash as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. Of the $374 million of cash collateral posted, $335 million was in cash and, $39 million was through re-use of counterparty collateral.


(3)	Represents the collateral posted by the Company through re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date.

Pre-tax Effect of Derivative Instruments and Related Hedged Items in a Fair Value Hedging Relationship

The pre-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for the nine months ended July 31, 2017 and 2016 were as follows:



	Gains (Losses) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2017		Nine months ended July 31, 2017			Hedged Item	Location	Three months ended July 31, 2017			Nine months ended July 31, 2017
		In millions							In millions
Interest rate contracts	Interest and other, net	$	23	$	(202	)	Fixed-rate debt	Interest and other, net	$	(23	)	$	202



	Gains (Losses) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2016		Nine months ended July 31, 2016		Hedged Item	Location	Three months ended July 31, 2016			Nine months ended July 31, 2016
		In millions						In millions
Interest rate contracts	Interest and other, net	$	127	$	294	Fixed-rate debt	Interest and other, net	$	(127	)	$	(294	)

Pre-tax Effect of Derivative Instruments in Cash Flow and Net Investment Hedging Relationships

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and nine months ended July 31, 2017 were as follows:



	Gains (Losses) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)						Gains (Losses) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended July 31, 2017			Nine months ended July 31, 2017			Location	Three months ended July 31, 2017			Nine months ended July 31, 2017
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	(161	)	$	(162	)	Net revenue	$	(45	)	$	13
Foreign currency contracts	—			(1		)	Cost of products	—			—
Foreign currency contracts	—			1			Other operating expenses	1			1
Foreign currency contracts	28			170			Interest and other, net	29			178
Subtotal	(133		)	8			Net earnings (loss) from continuing operations	(15		)	192
Foreign currency contracts	—			(1		)	Net loss from discontinued operations	—			39
Total cash flow hedges	$	(133	)	$	7		Total	$	(15	)	$	231
Net investment hedges:
Foreign currency contracts	$	(97	)	$	(107	)	Interest and other, net	$	—		$	—
Subtotal	(97		)	(107		)	Net earnings (loss) from continuing operations	—			—
Foreign currency contracts	—			—			Net loss from discontinued operations	—			—
Total	$	(97	)	$	(107	)	Total	$	—		$	—

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and nine months ended July 31, 2016 was as follows:



	Gains (Losses) Recognized in Other Comprehensive Income ("OCI") on Derivatives (Effective Portion)						Gains (Losses) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended July 31, 2016			Nine months ended July 31, 2016			Location	Three months ended July 31, 2016			Nine months ended July 31, 2016
	In millions							In millions
Cash flow hedges:
Foreign currency contracts	$	50		$	(103	)	Net revenue	$	(52	)	$	(24	)
Foreign currency contracts	(2		)	—			Other operating expenses	—			—
Foreign currency contracts	58			177			Interest and other, net	62			187
Subtotal	106			74			Net earnings (loss) from continuing operations	10			163
Foreign currency contracts	66			34			Net loss from discontinued operations	9			47
Total cash flow hedges	$	172		$	108		Total	$	19		$	210
Net investment hedges:
Foreign currency contracts	$	12		$	(68	)	Interest and other, net	$	—		$	—
Subtotal	12			(68		)	Net earnings (loss) from continuing operations	—			—
Foreign currency contracts	—			—			Net loss from discontinued operations	—			—
Total	$	12		$	(68	)	Total	$	—		$	—

Pre-tax Effect of Derivative Instruments Not Designated as Hedging Instruments on the Condensed Consolidated and Combined Statements of Earnings

The pre-tax effect of derivative instruments not designated as hedging instruments on the Condensed Consolidated Statements of Earnings for the three and nine months ended July 31, 2017 and 2016 was as follows:



	Gains (Losses) Recognized in Earnings on Derivatives
	Location	Three months ended July 31, 2017			Nine months ended July 31, 2017
		In millions
Foreign currency contracts	Interest and other, net	$	(279	)	$	(525	)
Other derivatives	Interest and other, net	—			4
Total		$	(279	)	$	(521	)



	Gains (Losses) Recognized in Earnings on Derivatives
	Location	Three months ended July 31, 2016			Nine months ended July 31, 2016
		In millions
Foreign currency contracts	Interest and other, net	$	(85	)	$	(409	)
Other derivatives	Interest and other, net	2			2
Total		$	(83	)	$	(407	)