Financial Instruments (Tables)

6 Months Ended

Apr. 30, 2013

Financial Instruments

Cash Equivalents and Available-for-Sale Investments

	April 30, 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	$	2,873	$	—	$	—		$	2,873	$	3,633	$	—	$	—		$	3,633
Money market funds		7,169		—		—			7,169		4,630		—		—			4,630
Mutual funds		39		—		—			39		69		—		—			69
Total cash equivalents		10,081		—		—			10,081		8,332		—		—			8,332
Available-for-Sale Investments
Debt securities:
Time deposits		13		—		—			13		8		—		—			8
Foreign bonds		300		92		—			392		303		82		—			385
Other debt securities		58		—		(18	)		40		62		—		(17	)		45
Total debt securities		371		92		(18	)		445		373		82		(17	)		438
Equity securities:
Mutual funds		332		—		—			332		400		—		—			400
Equity securities in public companies		50		24		(2	)		72		50		9		—			59
Total equity securities		382		24		(2	)		404		450		9		—			459
Total available-for-sale investments		753		116		(20	)		849		823		91		(17	)		897
Total cash equivalents and available-for-sale investments	$	10,834	$	116	$	(20	)	$	10,930	$	9,155	$	91	$	(17	)	$	9,229

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

	April 30, 2013
	Cost		Estimated Fair Value
	In millions
Due in one to five years	$	14	$	14
Due in more than five years		357		431
	$	371	$	445

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	As of April 30, 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	$	8,900	$	38	$	210	$	—	$	—	$	7,900	$	43	$	276	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		17,230		123		49		332		70		19,409		160		24		277		79
Net investment hedges:
Foreign exchange contracts		1,901		12		22		29		25		1,683		14		15		36		24
Total derivatives designated as hedging instruments		28,031		173		281		361		95		28,992		217		315		313		103
Derivatives not designated as hedging instruments
Foreign exchange contracts		16,246		90		14		85		15		18,687		61		17		51		19
Interest rate contracts(2)		2,200		9		—		10		—		2,200		25		—		29		—
Other derivatives		350		7		1		—		—		383		1		—		3		—
Total derivatives not designated as hedging instruments		18,796		106		15		95		15		21,270		87		17		83		19
Total derivatives	$	46,827	$	279	$	296	$	456	$	110	$	50,262	$	304	$	332	$	396	$	122

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of April 30, 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 Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2013		Six months ended April 30, 2013			Hedged Item	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions							In millions
Interest rate contracts	Interest and other, net	$	28	$	(71	)	Fixed-rate debt	Interest and other, net	$	(28	)	$	70

	Gain (Loss) Recognized in Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended April 30, 2012			Six months ended April 30, 2012			Hedged Item	Location	Three months ended April 30, 2012		Six months ended April 30, 2012
		In millions								In millions
Interest rate contracts	Interest and other, net	$	(80	)	$	(76	)	Fixed-rate debt	Interest and other, net	$	80	$	80

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 Earnings (Effective Portion)
	Three months ended April 30, 2013			Six months ended April 30, 2013			Location	Three months ended April 30, 2013			Six months ended April 30, 2013
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	206		$	7		Net revenue		$46			$(11	)
Foreign exchange contracts		(44	)		(169	)	Cost of products		(27	)		(30	)
Foreign exchange contracts		3			11		Other operating expenses		4			5
Foreign exchange contracts		(11	)		(9	)	Interest and other, net		1			(4	)
Total cash flow hedges	$	154		$	(160	)			$24			$(40	)
Net investment hedges:
Foreign exchange contracts	$	(2	)	$	(17	)	Interest and other, net		$ —			$ —

        The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for the three and six months ended April 30, 2012 was as follows:

	Gain (Loss) Recognized in OCI on Derivative (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	Three months ended April 30, 2012			Six months ended April 30, 2012			Location	Three months ended April 30, 2012			Six months ended April 30, 2012
	In millions							In millions
Cash flow hedges:
Foreign exchange contracts	$	(120	)	$	298		Net revenue	$	3		$	86
Foreign exchange contracts		(53	)		(61	)	Cost of products		2			18
Foreign exchange contracts		(1	)		(4	)	Other operating expenses		(1	)		(2	)
Foreign exchange contracts		(17	)		(17	)	Interest and other, net		(15	)		(15	)
Total cash flow hedges	$	(191	)	$	216			$	(11	)	$	87
Net investment hedges:
Foreign exchange contracts	$	13		$	38		Interest and other, net	$	—		$	—

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

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2013			Six months ended April 30, 2013
		In millions
Foreign exchange contracts	Interest and other, net	$	(15	)	$	(55	)
Other derivatives	Interest and other, net		3			10
Interest rate contracts	Interest and other, net		1			3
Total		$	(11	)	$	(42	)

	Gain (Loss) Recognized in Earnings on Derivative
	Location	Three months ended April 30, 2012			Six months ended April 30, 2012
		In millions
Foreign exchange contracts	Interest and other, net	$	74		$	156
Other derivatives	Interest and other, net		(6	)		(16	)
Interest rate contracts	Interest and other, net		1			11
Total		$	69		$	151