XML 54 R33.htm IDEA: XBRL DOCUMENT

Financial Instruments (Tables)

6 Months Ended

Apr. 30, 2011

Cash Equivalents and Available-for-Sale Investments

		April 30, 2011									October 31, 2010

		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value		Cost		Gross Unrealized Gain		Gross Unrealized Loss			Estimated Fair Value
		In millions
Cash Equivalents
	Time deposits	$	7,920	$	—	$	—		$	7,920	$	6,590	$	—	$	—		$	6,590
	Commercial paper		325		—		—			325		—		—		—			—
	Money market funds		807		—		—			807		971		—		—			971

Total cash equivalents			9,052		—		—			9,052		7,561		—		—			7,561

Available-for-Sale Investments
Debt securities:
	Time deposits		8		—		—			8		8		—		—			8
	Foreign bonds		336		60		—			396		315		58		—			373
	Corporate bonds and other debt securities		76		—		(22	)		54		89		—		(30	)		59

Total debt securities			420		60		(22	)		458		412		58		(30	)		440

Equity securities in public companies			3		2		—			5		5		4		—			9

Total cash equivalents and available-for-sale investments		$	9,475	$	62	$	(22	)	$	9,515	$	7,978	$	62	$	(30	)	$	8,010

Contractual maturities of short-term and long-term investments in available-for-sale securities

	Available-for-Sale Securities

	April 30, 2011
	Cost		Estimated Fair Value
	In millions
Due in 1-5 years	$	11	$	11
Due in more than five years		409		447

	$	420	$	458

Carrying values and balance sheet classification of short-term and long-term investments

		April 30, 2011		October 31, 2010

		In millions
Available-for-sale debt securities		$	—	$	5

	Included in Other current assets		—		5

Available-for-sale debt securities			458		435
Available-for-sale equity securities			5		9
Equity securities in privately-held companies			51		154
Other investments			9		9

	Included in long-term financing receivables and other assets		523		607

Total investments		$	523	$	612

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

		As of April 30, 2011										As of October 31, 2010

		Gross Notional⁽¹⁾		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities		Gross Notional⁽¹⁾		Other Current Assets		Long-term Financing Receivables and Other Assets		Other Accrued Liabilities		Other Liabilities
		In millions
Derivatives designated as hedging instruments
Fair value hedges:
	Interest rate contracts	$	8,575	$	—	$	453	$	—	$	—	$	8,575	$	—	$	656	$	—	$	—
Cash flow hedges:
	Foreign exchange contracts		17,689		62		3		898		199		16,862		98		20		503		83
Net investment hedges:
	Foreign exchange contracts		1,519		2		1		86		82		1,466		8		2		58		62

Total derivatives designated as hedging instruments			27,783		64		457		984		281		26,903		106		678		561		145

Derivatives not designated as hedging instruments
Foreign exchange contracts			11,679		37		3		283		51		13,701		51		3		129		55
Interest rate contracts⁽²⁾			2,200		—		54		—		63		2,200		—		79		—		89
Other derivatives			427		8		13		—		—		397		5		6		—		—

Total derivatives not designated as hedging instruments			14,306		45		70		283		114		16,298		56		88		129		144

Total derivatives		$	42,089	$	109	$	527	$	1,267	$	395	$	43,201	$	162	$	766	$	690	$	289

⁽¹⁾: Represents the face amounts of contracts that were outstanding as of April 30, 2011 and October 31, 2010, respectively.
⁽²⁾: Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments.

Gain (Loss) Recognized in Income on Derivative and Related Hedged Item, Fair Value Hedges

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item

Derivative Instrument	Location	Three months ended April 30, 2011			Six months ended April 30, 2011			Hedged Item		Location	Three months ended April 30, 2011		Six months ended April 30, 2011
		In millions									In millions
Interest rate contracts	Interest and other, net	$	(25	)	$	(203	)		Fixed-rate debt	Interest and other, net	$	27	$	201

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item

Derivative Instrument	Location	Three months ended April 30, 2010		Six months ended April 30, 2010		Hedged Item		Location	Three months ended April 30, 2010			Six months ended April 30, 2010
		In millions							In millions
Interest rate contracts	Interest and other, net	$	18	$	27		Fixed-rate debt	Interest and other, net	$	(15	)	$	(24	)

Gain (Loss) Recognized on Cash Flow and Net Investment Hedges

			Gain (Loss) Recognized in Other Comprehensive Income ("OCI") on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion)							Gain Recognized in Income on Derivative⁽¹⁾ (Ineffective portion and Amount Excluded from Effectiveness Testing)

			Three months ended April 30, 2011			Six months ended April 30, 2011			Location	Three months ended April 30, 2011			Six months ended April 30, 2011			Location	Three months ended April 30, 2011		Six months ended April 30, 2011
			In millions							In millions							In millions
Cash flow hedges:
	Foreign exchange contracts		$	(780	)	$	(680	)	Net revenue	$	(296	)	$	(320	)	Net revenue	$	—	$	—
	Foreign exchange contracts			27			18		Cost of products		(4	)		22		Cost of products		—		—
	Foreign exchange contracts			7			5		Other operating expenses		1			2		Other operating expenses		—		—
	Foreign exchange contracts			(36	)		(20	)	Interest and other, net		(39	)		(32	)	Interest and other, net		—		—
	Foreign exchange contracts			11			(2	)	Net revenue		2			6		Interest and other, net		1		3

		Total cash flow hedges	$	(771	)	$	(679	)		$	(336	)	$	(322	)		$	1	$	3

Net investment hedges:
	Foreign exchange contracts		$	(92	)	$	(97	)	Interest and other, net	$	—		$	—		Interest and other, net	$	—	$	—

⁽¹⁾: Amount of gain recognized in income on derivative represents a $1 million gain and $3 million gain related to the amount excluded from the assessment of hedge effectiveness in the three and six months ended April 30, 2011, respectively.

			Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Income (Effective Portion)						Gain Recognized in Income on Derivative⁽¹⁾ (Ineffective portion and Amount Excluded from Effectiveness Testing)

			Three months ended April 30, 2010			Six months ended April 30, 2010			Location	Three months ended April 30, 2010			Six months ended April 30, 2010		Location	Three months ended April 30, 2010		Six months ended April 30, 2010
			In millions							In millions						In millions
Cash flow hedges:
	Foreign exchange contracts		$	230		$	655		Net revenue	$	188		$	58	Net revenue	$	—	$	—
	Foreign exchange contracts			(12	)		(7	)	Cost of products		12			27	Cost of products		—		—
	Foreign exchange contracts			—			—		Other operating expenses		—			1	Other operating expenses		—		—
	Foreign exchange contracts			(5	)		1		Interest and other, net		(4	)		—	Interest and other, net		—		—
	Foreign exchange contracts			25			36		Net revenue		7			15	Interest and other, net		2		6

		Total cash flow hedges	$	238		$	685			$	203		$	101		$	2	$	6

Net investment hedges:
	Foreign exchange contracts		$	(47	)	$	(44	)	Interest and other, net	$	—		$	—	Interest and other, net	$	—	$	—

⁽¹⁾: Amount of gain recognized in income on derivative represents a $2 million gain and $6 million gain related to the amount excluded from the assessment of hedge effectiveness in the three and six months ended April 30, 2010, respectively.

Gain (Loss) Recognized in Income on Derivatives Not Designated as Hedges

	Gain (Loss) Recognized in Income on Derivative

	Location	Three months ended April 30, 2011			Six months ended April 30, 2011
		In millions
Foreign exchange contracts	Interest and other, net	$	(621	)	$	(698	)
Other derivatives	Interest and other, net		12			10
Interest rate contracts	Interest and other, net		1			3

Total		$	(608	)	$	(685	)

	Gain (Loss) Recognized in Income on Derivative

	Location	Three months ended April 30, 2010			Six months ended April 30, 2010
		In millions
Foreign exchange contracts	Interest and other, net	$	(129	)	$	(63	)
Other derivatives	Interest and other, net		13			2
Interest rate contracts	Interest and other, net		6			5

Total		$	(110	)	$	(56	)

- Definition

This item represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References+ Details