MARKETABLE SECURITIES

12 Months Ended

Oct. 31, 2012

MARKETABLE SECURITIES

MARKETABLE SECURITIES

11. MARKETABLE SECURITIES

All marketable securities are classified as available-for-sale, with unrealized gains and losses shown as a component of stockholders’ equity. Realized gains or losses from the sales of marketable securities are based on the specific identification method.

The amortized cost and fair value of marketable securities at October 31 in millions of dollars follow:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
2012
U.S. government debt securities	$	1,193	$	7			$	1,200
Municipal debt securities	35		3				38
Corporate debt securities	100		10				110
Mortgage-backed securities*	117		6		$	1	122
Marketable securities	$	1,445	$	26	$	1	$	1,470
2011
U.S. government debt securities	$	571	$	6	$	1	$	576
Municipal debt securities	34		2				36
Corporate debt securities	83		6				89
Mortgage-backed securities*	82		4				86
Marketable securities	$	770	$	18	$	1	$	787

* Primarily issued by U.S. government sponsored enterprises.

The contractual maturities of debt securities at October 31, 2012 in millions of dollars follow:

	Amortized		Fair
	Cost		Value
Due in one year or less	$	813	$	813
Due after one through five years	366		370
Due after five through 10 years	85		93
Due after 10 years	64		72
Mortgage-backed securities	117		122
Debt securities	$	1,445	$	1,470

Actual maturities may differ from contractual maturities because some securities may be called or prepaid. Because of the potential for prepayment on mortgage-backed securities, they are not categorized by contractual maturity. Proceeds from the sales of available-for-sale securities were $7 million in 2012, $2 million in 2011 and none in 2010. Realized gains, realized losses, the increase (decrease) in net unrealized gains or losses and unrealized losses that have been continuous for over twelve months were not significant in 2012, 2011 and 2010. Unrealized losses at October 31, 2012 and 2011 were primarily the result of an increase in interest rates and were not recognized in income due to the ability and intent to hold to maturity. There were no impairment write-downs in the periods reported.