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DERIVATIVES
 6 Months Ended
Apr. 30, 2025
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
9.    DERIVATIVES
We are exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of our business. As part of our risk management strategy, we use derivative instruments, primarily forward contracts, to hedge economic and/or accounting exposures resulting from changes in foreign currency exchange rates.
Cash Flow Hedges
We enter into foreign exchange contracts to hedge our forecasted operational cash flow exposures resulting from changes in foreign currency exchange rates. These foreign exchange contracts, carried at fair value, have maturities based on a rolling period of up to twelve months. These derivative instruments are designated and qualify as cash flow hedges under the criteria prescribed in the authoritative guidance.
In 2020, we entered into forward-starting interest rate swaps with an aggregate notional amount of $600 million in connection with future interest payments on the issuance of $600 million in unsecured senior notes (“2034 Senior Notes”). In 2023, we terminated the interest rate swap agreements, resulting in a deferred gain of $107 million recognized in “accumulated other comprehensive income (loss)” that is being amortized to interest expense over the term of the 2034 Senior Notes. The remaining gain to be amortized related to the interest rate swap agreements was $101 million as of April 30, 2025.
Non-designated Hedges
Additionally, we periodically enter into foreign exchange contracts to hedge monetary assets and liabilities that are denominated in currencies other than the functional currency of our subsidiaries.
In 2024, we entered into foreign exchange forward contracts with an aggregate notional amount of 1.2 billion pounds sterling to mitigate the currency exchange risk associated with a planned acquisition. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. During the three and six months ended April 30, 2025, the settlement of these contracts provided $60 million in cash. In April 2025, we entered into new foreign exchange contracts with the same aggregate notional amount. For the three and six months ended April 30, 2025, the aggregate net gain on all these foreign exchange contracts was $115 million and $47 million, respectively, recorded in “other income (expense), net” in the condensed consolidated statement of operations. As of April 30, 2025, the net unrealized gain on outstanding contracts was $10 million, recorded in “other current assets” in the condensed consolidated balance sheet.
In connection with the acquisition of ESI Group, we entered into foreign exchange forward contracts to mitigate the currency exchange risk associated with the payment of the purchase price in euros. The aggregate notional amount of the currencies hedged was 930 million euros as of October 31, 2023. These foreign exchange contracts did not qualify for hedge accounting treatment and were not designated as hedging instruments. For the six months ended April 30, 2024, these foreign exchange forward contracts were settled using existing cash of $63 million, resulting in a loss of $18 million recorded in “other income (expense), net” in the condensed consolidated statement of operations.
The number of open foreign exchange forward contracts designated as “cash flow hedges” and “not designated as hedging instruments” was 190 and 83, respectively, as of April 30, 2025. The aggregated notional amounts by currency and designation as of April 30, 2025 were as follows:
 Derivatives in Cash Flow Hedging RelationshipsDerivatives Not Designated as Hedging Instruments
 Forward
Contracts		Forward
Contracts
CurrencyBuy/(Sell)Buy/(Sell)
 (in millions)
Euro$10 $130 
Pounds Sterling10 1,651 
Singapore Dollar30 16 
Malaysian Ringgit118 11 
Japanese Yen(122)(125)
Other currencies(35)53 
Total$11 $1,736 
Derivative instruments are subject to master netting arrangements and are disclosed at their gross fair value in the condensed consolidated balance sheet. The gross fair values and balance sheet presentation of derivative instruments held as of April 30, 2025 and October 31, 2024 were as follows:
Fair Values of Derivative Instruments
Assets DerivativesLiabilities Derivatives
Fair Value Fair Value
Balance Sheet LocationApril 30, 2025October 31, 2024Balance Sheet LocationApril 30, 2025October 31, 2024
(in millions)
Derivatives designated as hedging instruments:     
Cash flow hedges
Foreign exchange contracts     
Other current assets$6 $8 Other accrued liabilities$7 $2 
Derivatives not designated as hedging instruments:     
Foreign exchange contracts     
Other current assets27 30 Other accrued liabilities8 4 
Total derivatives$33 $38  $15 $6 
The effect of derivative instruments for foreign exchange contracts designated as hedging instruments and not designated as hedging instruments in the condensed consolidated statement of operations was as follows:
Three Months EndedSix Months Ended
April 30,April 30,
2025202420252024
 (in millions)
Derivatives designated as hedging instruments:  
Cash flow hedges
Foreign exchange contracts:
Gain (loss) recognized in accumulated other comprehensive income (loss)$(2)$4 $(3)$1 
Gain (loss) reclassified from accumulated other comprehensive income (loss) into earnings:
Cost of products$2 $3 $4 $6 
Selling, general and administrative$— $— $— $(1)
Interest expense$2 $— $5 $— 
Gain (loss) excluded from effectiveness testing recognized in earnings based on amortization approach:
Cost of products$1 $2 $2 $3 
Derivatives not designated as hedging instruments:
Gain (loss) recognized in:
Other income (expense), net$127 $(3)$55 $(20)
The estimated amount as of April 30, 2025 expected to be reclassified from accumulated other comprehensive income (loss) to earnings within the next twelve months is a net gain of $9 million.