Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2018

Investments, All Other Investments [Abstract]

Cash Equivalents and Available-for-Sale Investments

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



	As of January 31, 2018									As of October 31, 2017
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Time deposits	$	1,287	$	—	$	—		$	1,287	$	1,159	$	—	$	—		$	1,159
Money market funds	4,181		—		—			4,181		5,592		—		—			5,592
Total cash equivalents	5,468		—		—			5,468		6,751		—		—			6,751
Available-for-Sale Investments:
Time deposits	3		—		—			3		—		—		—			—
Foreign bonds	196		40		—			236		183		40		—			223
Other debt securities	29		—		(2		)	27		37		—		(11		)	26
Total available-for-sale investments	228		40		(2		)	266		220		40		(11		)	249
Total cash equivalents and available-for-sale investments	$	5,696	$	40	$	(2	)	$	5,734	$	6,971	$	40	$	(11	)	$	7,000

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

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



	January 31, 2018
	Amortized Cost		Fair Value
	In millions
Due in one year	$	3	$	3
Due in more than five years	225		263
Total	$	228	$	266

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 January 31, 2018										As of October 31, 2017
			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	$	—	$	—	$	17	$	263	$	9,500	$	—	$	—	$	16	$	126
Cash flow hedges:
Foreign currency contracts	7,978		34		13		300		210		7,202		105		45		101		70
Net investment hedges:
Foreign currency contracts	2,228		21		5		83		60		1,944		35		10		36		41
Total derivatives designated as hedging instruments	19,706		55		18		400		533		18,646		140		55		153		237
Derivatives not designated as hedging instruments
Foreign currency contracts	8,617		42		4		114		12		9,552		61		3		79		8
Other derivatives	102		2		—		—		—		96		1		—		—		—
Total derivatives not designated as hedging instruments	8,719		44		4		114		12		9,648		62		3		79		8
Total derivatives	$	28,425	$	99	$	22	$	514	$	545	$	28,294	$	202	$	58	$	232	$	245

Offsetting Assets

As of January 31, 2018 and October 31, 2017, 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 January 31, 2018
	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	$	121	$	—	$	121	$	116	$	3	⁽¹⁾	$	2
Derivative liabilities	$	1,059	$	—	$	1,059	$	116	$	785	⁽²⁾	$	158



	As of October 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	$	260	$	—	$	260	$	209	$	34	⁽¹⁾	$	17
Derivative liabilities	$	477	$	—	$	477	$	209	$	242	⁽³⁾	$	26


(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 or through the 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. Of the $785 million of collateral posted, $782 million was in cash and, $3 million was through re-use of counterparty collateral.

(3)

Represents the collateral posted by the Company in cash or through the 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. Of the $242 million of collateral posted, $220 million was in cash and, $22 million was through re-use of counterparty collateral.

Offsetting Liabilities

As of January 31, 2018 and October 31, 2017, 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 January 31, 2018
	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	$	121	$	—	$	121	$	116	$	3	⁽¹⁾	$	2
Derivative liabilities	$	1,059	$	—	$	1,059	$	116	$	785	⁽²⁾	$	158



	As of October 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	$	260	$	—	$	260	$	209	$	34	⁽¹⁾	$	17
Derivative liabilities	$	477	$	—	$	477	$	209	$	242	⁽³⁾	$	26


(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)

(3)

Represents the collateral posted by the Company in cash or through the 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. Of the $242 million of collateral posted, $220 million was in cash and, $22 million was through re-use of counterparty collateral.

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 three months ended January 31, 2018 and 2017 were as follows:

Gains (Losses) Recognized in Earnings on Derivative and Related Hedged Item

Derivative Instrument

Location

Three months ended January 31, 2018

Hedged Item

Location

Three months ended January 31, 2018

In millions

Interest rate contracts

Interest and other, net

(138

)

Fixed-rate debt

Interest and other, net

138

Gains (Losses) Recognized in Earnings on Derivative and Related Hedged Item

Derivative Instrument

Location

Three months ended January 31, 2017

Hedged Item

Location

Three months ended January 31, 2017

In millions

Interest rate contracts

Interest and other, net

(262

)

Fixed-rate debt

Interest and other, net

262

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 months ended January 31, 2018 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 January 31, 2018			Location	Three months ended January 31, 2018
	In millions				In millions
Cash flow hedges:
Foreign currency contracts	$	(179	)	Net revenue	$	(46	)
Foreign currency contracts	(2		)	Interest and other, net	16
Total cash flow hedges	$	(181	)	Net earnings from continuing operations	$	(30	)
Net investment hedges:
Foreign currency contracts	$	(82	)	Interest and other, net	$	—

The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three months ended January 31, 2017 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 January 31, 2017			Location	Three months ended January 31, 2017
	In millions				In millions
Cash flow hedges:
Foreign currency contracts	$	52		Net revenue	$	54
Foreign currency contracts	76			Interest and other, net	83
Subtotal	128			Net earnings from continuing operations	137
Foreign currency contracts	8			Net (loss) earnings from discontinued operations	26
Total cash flow hedges	$	136		Net earnings	$	163
Net investment hedges:
Foreign currency contracts	$	(2	)	Interest and other, net	$	—

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 months ended January 31, 2018 and 2017 was as follows:



	Gains (Losses) Recognized in Earnings on Derivatives
	Location	Three months ended January 31, 2018			Three months ended January 31, 2017
		In millions
Foreign currency contracts	Interest and other, net	$	(390	)	$	(47	)
Other derivatives	Interest and other, net	1			3
Total		$	(389	)	$	(44	)