Financial Instruments (Tables)

3 Months Ended

Jan. 31, 2013

Financial Instruments

Cash Equivalents and Available-for-Sale Investments

	January 31, 2013									October 31, 2012
	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	$	2,826	$	—	$	—		$	2,826	$	3,633	$	—	$	—		$	3,633
Money market funds		6,859		—		—			6,859		4,630		—		—			4,630
Mutual funds		92		—		—			92		69		—		—			69
Total cash equivalents		9,777		—		—			9,777		8,332		—		—			8,332
Available-for-Sale Investments
Debt securities:
Time deposits		13		—		—			13		8		—		—			8
Foreign bonds		309		99		—			408		303		82		—			385
Mutual funds		425		—		—			425		400		—		—			400
Corporate bonds and other debt securities		62		—		(20	)		42		62		—		(17	)		45
Total debt securities		809		99		(20	)		888		773		82		(17	)		838
Equity securities in public companies		51		2		(4	)		49		50		9		—			59
Total cash equivalents and available-for-sale investments	$	10,637	$	101	$	(24	)	$	10,714	$	9,155	$	91	$	(17	)	$	9,229

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

	January 31, 2013
	Cost		Estimated Fair Value
	In millions
Due in less than one year	$	423	$	423
Due in one to five years		18		18
Due in more than five years		368		447
	$	809	$	888

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	As of January 31, 2013										As of October 31, 2012
	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	$	7,650	$	23	$	197	$	—	$	—	$	7,900	$	43	$	276	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		18,612		129		29		529		96		19,409		160		24		277		79
Net investment hedges:
Foreign exchange contracts		1,714		12		18		34		23		1,683		14		15		36		24
Total derivatives designated as hedging instruments		27,976		164		244		563		119		28,992		217		315		313		103
Derivatives not designated as hedging instruments
Foreign exchange contracts		16,010		95		13		101		17		18,687		61		17		51		19
Interest rate contracts(2)		2,200		17		—		19		—		2,200		25		—		29		—
Other derivatives		329		5		—		—		—		383		1		—		3		—
Total derivatives not designated as hedging instruments		18,539		117		13		120		17		21,270		87		17		83		19
Total derivatives	$	46,515	$	281	$	257	$	683	$	136	$	50,262	$	304	$	332	$	396	$	122

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of January 31, 2013 and October 31, 2012, 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 January 31, 2013			Hedged Item	Location	Three months ended January 31, 2013
		In millions					In millions
Interest rate contracts	Interest and other, net	$	(99	)	Fixed-rate debt	Interest and other, net	$	98

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended January 31, 2012		Hedged Item	Location	Three months ended January 31, 2012
		In millions				In millions
Interest rate contracts	Interest and other, net	$	4	Fixed-rate debt	Interest and other, net	$	—

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 January 31, 2013			Location	Three months ended January 31, 2013			Location	Three months ended January 31, 2013
	In millions				In millions				In millions
Cash flow hedges:
Foreign exchange contracts	$	(213	)	Net revenue	$	(61	)	Net revenue	$	—
Foreign exchange contracts		(125	)	Cost of products		(3	)	Cost of products		—
Foreign exchange contracts		8		Other operating expenses		1		Other operating expenses		—
Foreign exchange contracts		2		Interest and other, net		(5	)	Interest and other, net		—
Foreign exchange contracts		14		Net revenue		4		Interest and other, net		—
Total cash flow hedges	$	(314	)		$	(64	)		$	—
Net investment hedges:
Foreign exchange contracts	$	(15	)	Interest and other, net	$	—		Interest and other, net	$	—

	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 (Ineffective portion and Amount Excluded from Effectiveness Testing)
	Three months ended January 31, 2012			Location	Three months ended January 31, 2012			Location	Three months ended January 31, 2012
	In millions				In millions				In millions
Cash flow hedges:
Foreign exchange contracts	$	427		Net revenue	$	88		Net revenue	$	—
Foreign exchange contracts		(8	)	Cost of products		16		Cost of products		—
Foreign exchange contracts		(3	)	Other operating expenses		(1	)	Other operating expenses		—
Foreign exchange contracts		(9	)	Net revenue		(5	)	Interest and other, net		—
Total cash flow hedges	$	407			$	98			$	—
Net investment hedges:
Foreign exchange contracts	$	25		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 January 31, 2013
		In millions
Foreign exchange contracts	Interest and other, net	$	(40	)
Other derivatives	Interest and other, net		7
Interest rate contracts	Interest and other, net		2
Total		$	(31	)

	Gain (Loss) Recognized in Income on Derivative
	Location	Three months ended January 31, 2012
		In millions
Foreign exchange contracts	Interest and other, net	$	82
Other derivatives	Interest and other, net		(10	)
Interest rate contracts	Interest and other, net		10
Total		$	82