Fair Value

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date.

Fair Value Hierarchy

The Company uses valuation techniques that are based upon observable and unobservable inputs. Observable inputs are developed using market data such as publicly available information and reflect the assumptions market participants would use, while unobservable inputs are developed using the best information available about the assumptions market participants would use.

Assets and liabilities are classified in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement:

Level 1—Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2—Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability and market-corroborated inputs.

Level 3—Unobservable inputs for the asset or liability.

The fair value hierarchy gives the highest priority to observable inputs and lowest priority to unobservable inputs.

The following table presents the Company's assets and liabilities that are measured at fair value on a recurring basis:



	As of April 30, 2018								As of October 31, 2017
	Fair Value Measured Using								Fair Value Measured Using
	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
	In millions
Assets
Cash Equivalents and Investments:
Time deposits	$	—	$	1,656	$	—	$	1,656	$	—	$	1,159	$	—	$	1,159
Money market funds	3,391		—		—		3,391		5,592		—		—		5,592
Foreign bonds	9		135		—		144		9		214		—		223
Other debt securities	—		—		26		26		—		—		26		26
Derivative Instruments:
Foreign exchange contracts	—		238		—		238		—		259		—		259
Other derivatives	—		1		—		1		—		1		—		1
Total assets	$	3,400	$	2,030	$	26	$	5,456	$	5,601	$	1,633	$	26	$	7,260
Liabilities
Derivative Instruments:
Interest rate contracts	$	—	$	352	$	—	$	352	$	—	$	142	$	—	$	142
Foreign exchange contracts	—		326		—		326		—		335		—		335
Total liabilities	$	—	$	678	$	—	$	678	$	—	$	477	$	—	$	477

During the six months ended April 30, 2018, there were no transfers between levels within the fair value hierarchy.

Other Fair Value Disclosures

Short- and Long-Term Debt: At April 30, 2018 and October 31, 2017, the estimated fair value of the Company's short-term and long-term debt was $14.0 billion and $14.6 billion, respectively.