
	As of October 31, 2021				As of October 31, 2020
	Cost		Gross Unrealized Gains		Fair Value		Cost		Gross Unrealized Gains		Fair Value
	In millions
Cash Equivalents:
Time deposits	$	806	$	—	$	806	$	939	$	—	$	939
Money market funds	1,495		—		1,495		1,167		—		1,167
Total cash equivalents	2,301		—		2,301		2,106		—		2,106
Available-for-Sale Investments:
Foreign bonds	108		14		122		108		17		125
Other debt securities	41		1		42		20		1		21
Total available-for-sale investments	149		15		164		128		18		146
Total cash equivalents and available-for-sale investments	$	2,450	$	15	$	2,465	$	2,234	$	18	$	2,252

All highly liquid investments with original maturities of three months or less at the date of acquisition are considered cash equivalents. As of October 31, 2021 and 2020, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Interest income related to cash, cash equivalents and debt securities was approximately $18 million

in fiscal 2021, $44 million in fiscal 2020 and $64 million in fiscal 2019. Time deposits were primarily issued by institutions outside the U.S. as of October 31, 2021 and October 31, 2020. The estimated fair value of the available-for-sale investments may not be representative of values that will be realized in the future.

Equity investments with readily determinable fair values are included in Long-term financing receivables and other assets in the Consolidated Balance Sheets. The carrying amount of such equity investments amounted to $57 million as of October 31, 2021. During the twelve months ended October 31, 2021, the Company recorded an unrealized gain of $25 million on these investments.

The Company is a global company exposed to foreign currency exchange rate fluctuations and interest rate changes in the normal course of its business. As part of its risk management strategy, the Company uses derivative instruments, primarily forward contracts, interest rate swaps and total return swaps to hedge certain foreign currency, interest rate and, to a lesser extent, equity exposures. The Company's objective is to offset gains and losses resulting from these exposures with losses and gains on the derivative contracts used to hedge them, thereby reducing volatility of earnings or protecting the fair value of assets and liabilities. The Company does not have any leveraged derivatives and does not use derivative contracts for speculative purposes. The Company may designate its derivative contracts as fair value hedges, cash flow hedges or hedges of the foreign currency exposure of a net investment in a foreign operation ("net investment hedges"). Additionally, for derivatives not designated as hedging instruments, the Company categorizes those economic hedges as other derivatives. Derivative instruments are recognized at fair value in the Consolidated Balance Sheets. The change in fair value of the derivative instruments is recognized in the Consolidated Statements of Earnings or Consolidated Statements of Comprehensive Income depending upon the type of hedge as further discussed below. The Company classifies cash flows from its derivative programs with the activities that correspond to the underlying hedged items in the Consolidated Statements of Cash Flows.

As a result of its use of derivative instruments, the Company is exposed to the risk that its counterparties will fail to meet their contractual obligations. To mitigate counterparty credit risk, the Company has a policy of only entering into derivative contracts with carefully selected major financial institutions based on their credit ratings and other factors, and the Company maintains dollar risk limits that correspond to each financial institution's credit rating and other factors. The Company's established policies and procedures for mitigating credit risk include reviewing and establishing limits for credit exposure and periodically reassessing the creditworthiness of its counterparties. Master netting agreements also mitigate credit exposure to counterparties by permitting the Company to net amounts due from the Company to a counterparty against amounts due to the Company from the same counterparty under certain conditions.

To further mitigate credit exposure to counterparties, the Company has collateral security agreements, which allows the Company to hold collateral from, or require the Company to post collateral to counterparties when aggregate derivative fair values exceed contractually established thresholds which are generally based on the credit ratings of the Company and its counterparties. If the Company's credit rating falls below a specified credit rating, the counterparty has the right to request full collateralization of the derivatives' net liability position. Conversely, if the counterparty's credit rating falls below a specified credit rating, the Company has the right to request full collateralization of the derivatives' net liability position. Collateral is generally posted within two business days. The fair value of the Company's derivatives with credit contingent features in a net liability position was $3 million and $45 million at October 31, 2021 and 2020, respectively, all of which were fully collateralized within two business days.

Under the Company's derivative contracts, the counterparty can terminate all outstanding trades following a covered change of control event affecting the Company that results in the surviving entity being rated below a specified credit rating. This credit contingent provision did not affect the Company's financial position or cash flows as of October 31, 2021 and 2020.

The Company issues long-term debt in U.S. dollars based on market conditions at the time of financing. The Company may enter into fair value hedges, such as interest rate swaps, to reduce the exposure of its debt portfolio to changes in fair value resulting from changes in interest rates by achieving a primarily U.S. dollar LIBOR-based floating interest rate. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts. Alternatively, the Company may choose not to swap fixed for floating interest payments or may terminate a previously executed swap if it believes a larger proportion of fixed-rate debt would be beneficial. When investing in fixed-rate instruments, the Company may enter into interest rate swaps that convert the fixed interest payments into variable interest payments and may designate these swaps as fair value hedges.

For derivative instruments that are designated and qualify as fair value hedges, the Company recognizes the change in fair value of the derivative instrument, as well as the offsetting change in the fair value of the hedged item, in Interest and other, net in the Consolidated Statements of Earnings in the period of change.

The Company uses forward contracts designated as cash flow hedges to protect against the foreign currency exchange rate risks inherent in its forecasted net revenue and, to a lesser extent, cost of sales, operating expenses, and intercompany loans denominated in currencies other than the U.S. dollar. The Company's foreign currency cash flow hedges mature generally within twelve months; however, forward contracts associated with sales-type and direct-financing leases and intercompany loans extend for the duration of the lease or loan term, which can extend up to five years.

The Company uses interest rate contracts designated as cash flow hedges to hedge the variability of cash flows in the interest payments associated with its variable-rate debt due to changes in the U.S. dollar LIBOR-based floating interest rate. The swap transactions generally involve principal and interest obligations for U.S. dollar-denominated amounts.

For derivative instruments that are designated and qualify as cash flow hedges, and as long as they remain highly effective, the Company records the changes in fair value of the derivative instrument in Accumulated other comprehensive loss as a separate component of equity in the Consolidated Balance Sheets and subsequently reclassifies these amounts into earnings in the same financial statement line item when the hedged transaction is recognized.

The Company uses forward contracts designated as net investment hedges to hedge net investments in certain foreign subsidiaries whose functional currency is the local currency. The Company records the changes in the fair value of the hedged items in cumulative translation adjustment as a separate component of Equity in the Consolidated Balance Sheets.

For interest rate swaps designated as fair value hedges, the Company measures hedge effectiveness by offsetting the change in fair value of the hedged items with the change in fair value of the derivative. For forward contracts designated as cash flow or net investment hedges, the Company measures hedge effectiveness by comparing the cumulative change in fair value of the hedge contract with the cumulative change in fair value of the hedged item, both of which are based on forward rates.


	As of October 31, 2021										As of October 31, 2020
			Fair Value										Fair Value
	Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities		Outstanding Gross Notional		Other Current Assets		Long-Term Financing Receivables and Other Assets		Other Accrued Liabilities		Long-Term Other Liabilities
	In millions
Derivatives designated as hedging instruments
Fair value hedges:
Interest rate contracts	$	3,850	$	15	$	80	$	—	$	—	$	3,850	$	—	$	220			$	—
Cash flow hedges:
Foreign currency contracts	7,664		125		68		49		32		7,652		75		85		95		38
Interest rate contracts	—		—		—		—		—		500		—		—		2		—
Net investment hedges:
Foreign currency contracts	1,860		33		40		12		18		1,804		34		44		11		9
Total derivatives designated as hedging instruments	13,374		173		188		61		50		13,806		109		349		108		47
Derivatives not designated as hedging instruments
Foreign currency contracts	6,994		25		17		16		—		6,157		43		9		35		1
Other derivatives	113		4		—		—		—		105		—		—		3		—
Total derivatives not designated as hedging instruments	7,107		29		17		16		—		6,262		43		9		38		1
Total derivatives	$	20,481	$	202	$	205	$	77	$	50	$	20,068	$	152	$	358	$	146	$	48

The Company recognizes all derivative instruments on a gross basis in the Consolidated Balance Sheets. The Company's derivative instruments are subject to master netting arrangements and collateral security arrangements. The Company does not offset the fair value of its derivative instruments against the fair value of cash collateral posted under collateral security agreements. As of October 31, 2021 and 2020, information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements was as follows:


	As of October 31, 2021
	In the Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	407	$	—	$	407	$	123	$	173	(1)	$	111
Derivative liabilities	$	127	$	—	$	127	$	123	$	5	(2)	$	(1)


	As of October 31, 2020
	In the Consolidated Balance Sheets
	(i)		(ii)		(iii) = (i)–(ii)		(iv)		(v)			(vi) = (iii)–(iv)–(v)
							Gross Amounts Not Offset
	Gross Amount Recognized		Gross Amount Offset		Net Amount Presented		Derivatives		Financial Collateral			Net Amount
	In millions
Derivative assets	$	510	$	—	$	510	$	137	$	321	(1)	$	52
Derivative liabilities	$	194	$	—	$	194	$	137	$	55	(2)	$	2

(2)Represents the collateral posted by the Company in cash or through re-use of counterparty cash collateral as of the respective reporting date for the Company's liability position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. As of October 31, 2021 and 2020 the entire amount of the collateral posted of $5 million and $55 million, respectively, was through re-use of counterparty collateral.


	Carrying amount of the hedged assets/ (liabilities)				Cumulative amount of fair value hedging adjustment included in the carrying amount of the hedged assets/ (liabilities)
	As of				As of
Balance Sheet Line Item of Hedged Item	October 31, 2021		October 31, 2020		October 31, 2021		October 31, 2020
	In millions				In millions
Notes payable and short-term borrowings	$	(1,365)	$	—	$	(15)	$	—
Long-term debt	$	(2,573)	$	(4,059)	$	(80)	$	(220)


	Gains (Losses) Recognized in Income
	2021				2020				2019
	Net revenue		Interest and other, net		Net revenue		Interest and other, net		Net revenue		Interest and other, net
	In millions
Total amounts of income and expense line items presented in the Consolidated Statements of Earnings in which the effects of fair value hedges, cash flow hedges and derivatives not designated as hedging instruments are recorded	$	27,784	$	(211)	$	26,982	$	(215)	$	29,135	$	(177)
Gains (losses) on derivatives in fair value hedging relationships
Interest rate contracts
Hedged items	$	—	$	125	$	—	$	(159)	$	—	$	(414)
Derivatives designated as hedging instruments	—		(125)		—		159		—		414
Gains (losses) on derivatives in cash flow hedging relationships
Foreign exchange contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	(81)		(73)		38		(14)		233		138
Interest rate contracts
Amount of gains (losses) reclassified from accumulated other comprehensive income into income	—		(2)		—		(3)		—		—
Gains (losses) on derivatives not designated as hedging instruments
Foreign exchange contracts	—		(68)		—		44		—		(134)
Other derivatives	—		6		—		(5)		—		8
Total gains (losses)	$	(81)	$	(137)	$	38	$	22	$	233	$	12