Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2013

Financial Instruments

Cash Equivalents and Available-for-Sale Investments

	July 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	$	2,605	$	—	$	—		$	2,605	$	3,633	$	—	$	—		$	3,633
Money market funds		7,818		—		—			7,818		4,630		—		—			4,630
Mutual funds		16		—		—			16		69		—		—			69
Total cash equivalents		10,439		—		—			10,439		8,332		—		—			8,332
Available-for-Sale Investments
Debt securities:
Time deposits		13		—		—			13		8		—		—			8
Foreign bonds		302		78		—			380		303		82		—			385
Other debt securities		55		—		(16	)		39		62		—		(17	)		45
Total debt securities		370		78		(16	)		432		373		82		(17	)		438
Equity securities:
Mutual funds		373		—		(7	)		366		400		—		—			400
Equity securities in public companies		6		4		(1	)		9		50		9		—			59
Total equity securities		379		4		(8	)		375		450		9		—			459
Total available-for-sale investments		749		82		(24	)		807		823		91		(17	)		897
Total cash equivalents and available-for-sale investments	$	11,188	$	82	$	(24	)	$	11,246	$	9,155	$	91	$	(17	)	$	9,229

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

	July 31, 2013
	Cost		Estimated Fair Value
	In millions
Due in one to five years	$	14	$	14
Due in more than five years		356		418
	$	370	$	432

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	As of July 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	$	12,200	$	47	$	115	$	—	$	144	$	7,900	$	43	$	276	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		20,286		175		89		259		47		19,409		160		24		277		79
Net investment hedges:
Foreign exchange contracts		1,885		35		50		12		8		1,683		14		15		36		24
Total derivatives designated as hedging instruments		34,371		257		254		271		199		28,992		217		315		313		103
Derivatives not designated as hedging instruments
Foreign exchange contracts		16,783		134		42		71		26		18,687		61		17		51		19
Interest rate contracts(2)		2,200		—		—		—		—		2,200		25		—		29		—
Other derivatives		335		9		1		—		—		383		1		—		3		—
Total derivatives not designated as hedging instruments		19,318		143		43		71		26		21,270		87		17		83		19
Total derivatives	$	53,689	$	400	$	297	$	342	$	225	$	50,262	$	304	$	332	$	396	$	122

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of July 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 Earnings on Derivative and Related Hedged Item
Derivative Instrument	Location	Three months ended July 31, 2013			Nine months ended July 31, 2013			Hedged Item	Location	Three months ended July 31, 2013		Nine months ended July 31, 2013
		In millions								In millions
Interest rate contracts	Interest and other, net	$	(229	)	$	(300	)	Fixed-rate debt	Interest and other, net	$	230	$	300

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

	Gain (Loss) Recognized in OCI on Derivatives (Effective Portion)						Gain (Loss) Reclassified from Accumulated OCI Into Earnings (Effective Portion)
	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
Cash flow hedges:
Foreign exchange contracts	$	418		$	716		Net revenue	$	283		$	369
Foreign exchange contracts		22			(39	)	Cost of products		(23	)		(5	)
Foreign exchange contracts		(5	)		(9	)	Other operating expenses		(2	)		(4	)
Foreign exchange contracts		17			—		Interest and other, net		21			6
Total cash flow hedges	$	452		$	668			$	279		$	366
Net investment hedges:
Foreign exchange contracts	$	33		$	71		Interest and other, net	$	—		$	—

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

	Gain (Loss) Recognized in Earnings on Derivatives
	Location	Three months ended July 31, 2013		Nine months ended July 31, 2013
		In millions
Foreign exchange contracts	Interest and other, net	$	288	$	233
Other derivatives	Interest and other, net		2		12
Interest rate contracts	Interest and other, net		—		3
Total		$	290	$	248

	Gain (Loss) Recognized in Earnings on Derivatives
	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