Financial Instruments (Tables)

12 Months Ended

Oct. 31, 2012

Financial Instruments

Cash Equivalents and Available-for-Sale Investments

	October 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	$	3,633	$	—	$	—		$	3,633	$	5,112	$	—	$	—		$	5,112
Money market funds		4,630		—		—			4,630		236		—		—			236
Mutual funds		69		—		—			69		—		—		—			—
Total cash equivalents		8,332		—		—			8,332		5,348		—		—			5,348
Available-for-Sale Investments
Debt securities:
Time deposits		8		—		—			8		8		—		—			8
Foreign bonds		303		82		—			385		317		66		—			383
Mutual funds		400		—		—			400		—		—		—			—
Corporate bonds and other debt securities		62		—		(17	)		45		74		—		(21	)		53
Total debt securities		773		82		(17	)		838		399		66		(21	)		444
Equity securities in public companies		50		9		—			59		114		4		—			118
Total cash equivalents and available-for-sale investments	$	9,155	$	91	$	(17	)	$	9,229	$	5,861	$	70	$	(21	)	$	5,910

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

	October 31, 2012
	Cost		Estimated Fair Value
	In millions
Due in less than one year	$	406	$	406
Due in one to five years		3		3
Due in more than five years		364		429
	$	773	$	838

Fair Value of Derivative Instruments in the Consolidated Condensed Balance Sheets

	As of October 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	$	43	$	276	$	—	$	—	$	10,075	$	30	$	508	$	—	$	—
Cash flow hedges:
Foreign exchange contracts		19,409		160		24		277		79		21,666		192		30		324		126
Net investment hedges:
Foreign exchange contracts		1,683		14		15		36		24		1,556		7		4		44		56
Total derivatives designated as hedging instruments		28,992		217		315		313		103		33,297		229		542		368		182
Derivatives not designated as hedging instruments
Foreign exchange contracts		18,687		61		17		51		19		13,994		66		5		244		38
Interest rate contracts(2)		2,200		25		—		29		—		2,200		—		55		—		71
Other derivatives		383		1		—		3		—		410		25		6		—		1
Total derivatives not designated as hedging instruments		21,270		87		17		83		19		16,604		91		66		244		110
Total derivatives	$	50,262	$	304	$	332	$	396	$	122	$	49,901	$	320	$	608	$	612	$	292

⁽¹⁾

Represents the face amounts of contracts that were outstanding as of October 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

The before-tax effect of derivative instruments and related hedged items in a fair value hedging relationship for fiscal years ended October 31, 2012 and October 31, 2011 were as follows:

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item
Derivative Instrument	Location	2012			Hedged Item	Location	2012
		In millions					In millions
Interest rate contracts	Interest and other, net	$	(130	)	Fixed-rate debt	Interest and other, net	$	134

	Gain (Loss) Recognized in Income on Derivative and Related Hedged Item
Derivative Instrument	Location	2011			Hedged Item		Location		2011
		In millions							In millions
Interest rate contracts	Interest and other, net	$	(119	)		Fixed-rate debt		Interest and other, net	$	128

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

The before-tax effect of derivative instruments in cash flow and net investment hedging relationships for fiscal years 2012 and 2011 were as follows:

	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)
	2012			Location	2012			Location	2012
	In millions				In millions				In millions
Cash flow hedges:
Foreign exchange contracts	$	402		Net revenue	$	408		Net revenue	$	—
Foreign exchange contracts		(65	)	Cost of products		(15	)	Cost of products		—
Foreign exchange contracts		(7	)	Other operating expenses		(6	)	Other operating expenses		—
Foreign exchange contracts		(8	)	Interest and other, net		(3	)	Interest and other, net		—
Foreign exchange contracts		13		Net revenue		15		Interest and other, net		—
Total cash flow hedges	$	335			$	399			$	—
Net investment hedges:
Foreign exchange contracts	$	37		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)
	2011			Location	2011			Location	2011
	In millions				In millions				In millions
Cash flow hedges:
Foreign exchange contracts	$	(278	)	Net revenue	$	(616	)	Net revenue	$	—
Foreign exchange contracts		41		Cost of products		38		Cost of products		—
Foreign exchange contracts		2		Other operating expenses		4		Other operating expenses		—
Foreign exchange contracts		(116	)	Interest and other, net		(91	)	Interest and other, net		—
Foreign exchange contracts		(23	)	Net revenue		7		Interest and other, net		4
Total cash flow hedges	$	(374	)		$	(658	)		$	4
Net investment hedges:
Foreign exchange contracts	$	(52	)	Interest and other, net	$	—		Interest and other, net	$	—

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

The before-tax effect of derivative instruments not designated as hedging instruments on the Consolidated Statements of Earnings for fiscal years 2012 and 2011 were as follows:

	Gain (Loss) Recognized in Income on Derivative
	Location	2012
		In millions
Foreign exchange contracts	Interest and other, net		$171
Other derivatives	Interest and other, net		(32	)
Interest rate contracts	Interest and other, net		13
Total			$152

	Gain (Loss) Recognized in Income on Derivative
	Location	2011
		In millions
Foreign exchange contracts	Interest and other, net		$(117	)
Other derivatives	Interest and other, net		19
Interest rate contracts	Interest and other, net		(6	)
Total			$(104	)