Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2019

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, 2019									As of October 31, 2018
	Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Fair Value
	In millions
Cash Equivalents:
Time deposits	$	521	$	—	$	—		$	521	$	781	$	—	$	—		$	781
Money market funds	1,722		—		—			1,722		2,340		—		—			2,340
Total cash equivalents	2,243		—		—			2,243		3,121		—		—			3,121
Available-for-Sale Investments:
Foreign bonds	114		17		—			131		113		18		—			131
Other debt securities	25		—		(1		)	24		26		—		(1		)	25
Total available-for-sale investments	139		17		(1		)	155		139		18		(1		)	156
Total cash equivalents and available-for-sale debt investments	$	2,382	$	17	$	(1	)	$	2,398	$	3,260	$	18	$	(1	)	$	3,277

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

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



	January 31, 2019
	Amortized Cost		Fair Value
	In millions
Due in more than five years	$	139	$	155

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, 2019										As of October 31, 2018
			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	$	6,850	$	—	$	—	$	—	$	195	$	6,850	$	—	$	—	$	—	$	353
Cash flow hedges:
Foreign currency contracts	8,492		126		76		54		34		8,423		270		107		11		15
Net investment hedges:
Foreign currency contracts	1,776		16		25		24		21		1,737		32		41		13		11
Total derivatives designated as hedging instruments	17,118		142		101		78		250		17,010		302		148		24		379
Derivatives not designated as hedging instruments
Foreign currency contracts	7,107		30		1		65		8		6,780		41		5		55		12
Other derivatives	106		5		—		—		—		104		—		—		6		—
Total derivatives not designated as hedging instruments	7,213		35		1		65		8		6,884		41		5		61		12
Total derivatives	$	24,331	$	177	$	102	$	143	$	258	$	23,894	$	343	$	153	$	85	$	391

Offsetting Assets

As of January 31, 2019 and October 31, 2018, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:



	As of January 31, 2019
	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	$	279	$	—	$	279	$	142	$	110	⁽¹⁾	$	27
Derivative liabilities	$	401	$	—	$	401	$	142	$	171	⁽²⁾	$	88



	As of October 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	$	496	$	—	$	496	$	179	$	205	⁽¹⁾	$	112
Derivative liabilities	$	476	$	—	$	476	$	179	$	302	⁽²⁾	$	(5	)


(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. As of January 31, 2019, of the $171 million of collateral posted, $162 million was in cash and, $9 million was through re-use of counterparty collateral. As of October 31, 2018, $302 million of collateral posted was entirely cash.

Offsetting Liabilities

As of January 31, 2019 and October 31, 2018, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:



	As of January 31, 2019
	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	$	279	$	—	$	279	$	142	$	110	⁽¹⁾	$	27
Derivative liabilities	$	401	$	—	$	401	$	142	$	171	⁽²⁾	$	88



	As of October 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	$	496	$	—	$	496	$	179	$	205	⁽¹⁾	$	112
Derivative liabilities	$	476	$	—	$	476	$	179	$	302	⁽²⁾	$	(5	)


(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)

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, 2019 and 2018 were as follows:

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

Derivative Instrument

Location

Three months ended January 31, 2019

Hedged Item

Location

Three months ended January 31, 2019

In millions

Interest rate contracts

Interest and other, net

158

Fixed-rate debt

Interest and other, net

(158

)

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

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, 2019 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, 2019			Location	Three months ended January 31, 2019
	In millions				In millions
Cash flow hedges:
Foreign currency contracts	$	(37	)	Net revenue	$	80
Foreign currency contracts	71			Interest and other, net	53
Total cash flow hedges	$	34		Net earnings from continuing operations	$	133
Net investment hedges:
Foreign currency contracts	$	(43	)	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, 2018 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, 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	$	—

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, 2019 and 2018 was as follows:



		Gains (Losses) Recognized in Earnings on Derivatives
	Location	Three months ended January 31, 2019			Three months ended January 31, 2018
		In millions
Foreign currency contracts	Interest and other, net	$	(231	)	$	(390	)
Other derivatives	Interest and other, net	10			1
Total		$	(221	)	$	(389	)