Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2012

Financial Instruments

Cash Equivalents and Available-for-Sale Investments

	July 31, 2012									October 31, 2011
	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	$	2,985	$	—	$	—		$	2,985	$	5,112	$	—	$	—		$	5,112
Money market funds		3,632		—		—			3,632		236		—		—			236
Mutual funds		41		—		—			41		—		—		—			—
Total cash equivalents		6,658		—		—			6,658		5,348		—		—			5,348
Available-for-Sale Investments
Debt securities:
Time deposits		8		—		—			8		8		—		—			8
Foreign bonds		287		72		—			359		317		66		—			383
Mutual funds		355		—		—			355		—		—		—			—
Corporate bonds and other debt securities		69		—		(18	)		51		74		—		(21	)		53
Total debt securities		719		72		(18	)		773		399		66		(21	)		444
Equity securities in public companies		50		2		(18	)		34		114		4		—			118
Total cash equivalents and available-for-sale investments	$	7,427	$	74	$	(36	)	$	7,465	$	5,861	$	70	$	(21	)	$	5,910

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

	July 31, 2012
	Cost		Estimated Fair Value
	In millions
Due in less than one year	$	355	$	355
Due in one to five years		13		13
Due in more than five years		351		405
	$	719	$	773

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	As of July 31, 2012										As of October 31, 2011
	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	$	7,900	$	23	$	340	$	—	$	—	$	10,075	$	30	$	508	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		19,620		496		84		220		53		21,666		192		30		324		126
Net investment hedges:
Foreign exchange contracts		1,665		22		26		29		22		1,556		7		4		44		56
Total derivatives designated as hedging instruments		29,185		541		450		249		75		33,297		229		542		368		182
Derivatives not designated as hedging instruments
Foreign exchange contracts		12,487		42		36		106		23		13,994		66		5		244		38
Interest rate contracts(2)		2,200		—		32		—		37		2,200		—		55		—		71
Other derivatives		401		2		22		1		—		410		25		6		—		1
Total derivatives not designated as hedging instruments		15,088		44		90		107		60		16,604		91		66		244		110
Total derivatives	$	44,273	$	585	$	540	$	356	$	135	$	49,901	$	320	$	608	$	612	$	292

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of July 31, 2012 and October 31, 2011, respectively.

⁽²⁾

Represents offsetting swaps acquired through previous business combinations that were not designated as hedging instruments.

Effect of Derivative Instruments on the Consolidated Condensed Statements of Earnings

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2012			Nine months ended July 31, 2012			Hedged Item	Location	Three months ended July 31, 2012		Nine months ended July 31, 2012
		In millions								In millions
Interest rate contracts	Interest and other, net	$	(10	)	$	(86	)	Fixed-rate debt	Interest and other, net	$	13	$	93

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2011		Nine months ended July 31, 2011			Hedged Item	Location	Three months ended July 31, 2011			Nine months ended July 31, 2011
		In millions							In millions
Interest rate contracts	Interest and other, net	$	68	$	(135	)	Fixed-rate debt	Interest and other, net	$	(63	)	$	138

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 (Ineffective portion and Amount Excluded from Effectiveness Testing)
	Three months ended July 31, 2012			Nine months ended July 31, 2012			Location	Three months ended July 31, 2012			Nine months ended July 31, 2012			Location	Three months ended July 31, 2012		Nine months ended July 31, 2012
	In millions							In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	412		$	729		Net revenue	$	274		$	360		Net revenue	$	—	$	—
Foreign exchange contracts		22			(39	)	Cost of products		(23	)		(5	)	Cost of products		—		—
Foreign exchange contracts		(5	)		(9	)	Other operating expenses		(2	)		(4	)	Other operating expenses		—		—
Foreign exchange contracts		17			—		Interest and other, net		21			6		Interest and other, net		—		—
Foreign exchange contracts		6			(13	)	Net revenue		9			9		Interest and other, net		—		—
Total cash flow hedges	$	452		$	668			$	279		$	366			$	—	$	—
Net investment hedges:
Foreign exchange contracts	$	33		$	71		Interest and other, net	$	—		$	—		Interest and other, net	$	—	$	—

	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 (Ineffective portion and Amount Excluded from Effectiveness Testing)
	Three months ended July 31, 2011			Nine months ended July 31, 2011			Location	Three months ended July 31, 2011			Nine months ended July 31, 2011			Location	Three months ended July 31, 2011		Nine months ended July 31, 2011
	In millions							In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	115		$	(565	)	Net revenue	$	(333	)	$	(653	)	Net revenue	$	—	$	—
Foreign exchange contracts		10			28		Cost of products		9			31		Cost of products		—		—
Foreign exchange contracts		—			5		Other operating expenses		2			4		Other operating expenses		—		—
Foreign exchange contracts		(37	)		(57	)	Interest and other, net		(20	)		(52	)	Interest and other, net		—		—
Foreign exchange contracts		7			5		Net revenue		3			9		Interest and other, net		1		4
Total cash flow hedges	$	95		$	(584	)		$	(339	)	$	(661	)		$	1	$	4
Net investment hedges:
Foreign exchange contracts	$	(21	)	$	(118	)	Interest and other, net	$	—		$	—		Interest and other, net	$	—	$	—

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

	Gain (Loss) Recognized in Income on Derivative
	Location	Three months ended July 31, 2012		Nine months ended July 31, 2012
		In millions
Foreign exchange contracts	Interest and other, net	$	172	$	328
Other derivatives	Interest and other, net		9		(7	)
Interest rate contracts	Interest and other, net		—		11
Total		$	181	$	332

	Gain (Loss) Recognized in Income on Derivative
	Location	Three months ended July 31, 2011			Nine months ended July 31, 2011
		In millions
Foreign exchange contracts	Interest and other, net	$	(49	)	$	(747	)
Other derivatives	Interest and other, net		(22	)		(12	)
Interest rate contracts	Interest and other, net		—			3
Total		$	(71	)	$	(756	)