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Financial Instruments | 6 Months Ended
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Apr. 30, 2025
Investments, All Other Investments [Abstract] |
Financial Instruments | Financial Instruments Cash Equivalents and Available-for-Sale Debt Investments Cash equivalents and available-for-sale debt investments were as follows:
| As of April 30, 2025 |  | As of October 31, 2024
| Cost |  | Gross Unrealized Gains |  |  |  | Fair Value |  | Cost |  | Gross Unrealized Gains |  |  |  | Fair Value
| In millions
Cash Equivalents: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Time deposits | $ | 2,335 |  |  | $ | — |  |  |  |  | $ | 2,335 |  |  | $ | 601 |  |  | $ | — |  |  |  |  | $ | 601 |
Money market funds | 7,969 |  |  | — |  |  |  |  | 7,969 |  |  | 12,639 |  |  | — |  |  |  |  | 12,639 |
Total cash equivalents | 10,304 |  |  | — |  |  |  |  | 10,304 |  |  | 13,240 |  |  | — |  |  |  |  | 13,240 |
Available-for-sale Debt Investments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign bonds | 107 |  |  | — |  |  |  |  | 107 |  |  | 101 |  |  | 2 |  |  |  |  | 103 |
Other debt securities | 7 |  |  | 2 |  |  |  |  | 9 |  |  | 8 |  |  | 6 |  |  |  |  | 14 |
Total available-for-sale debt investments | 114 |  |  | 2 |  |  |  |  | 116 |  |  | 109 |  |  | 8 |  |  |  |  | 117 |
Total cash equivalents and available-for-sale debt investments | $ | 10,418 |  |  | $ | 2 |  |  |  |  | $ | 10,420 |  |  | $ | 13,349 |  |  | $ | 8 |  |  |  |  | $ | 13,357 |
As of April 30, 2025 and October 31, 2024, the carrying amount of cash equivalents approximated fair value due to the short period of time to maturity. Time deposits were primarily issued by institutions in the U.S. as of April 30, 2025 and outside the U.S. as of October 31, 2024. The estimated fair value of the available-for-sale debt investments may not be representative of values that will be realized in the future. Contractual maturities of investments in available-for-sale debt securities were as follows:
| As of April 30, 2025
| Amortized Cost |  | Fair Value |  |  |  |
| In millions |  |  |  |
Due in more than five years | $ | 114 |  |  | $ | 116 |  |  |  |  |
Equity Investments Non-marketable equity investments in privately held companies are included in Long-term financing receivables and other assets in the Condensed Consolidated Balance Sheets. These non-marketable equity investments are carried either at fair value or under measurement alternative. Measurement alternative equity investments are recorded at cost and measured at fair value when they are deemed to be impaired or when there is an adjustment from observable price changes. The carrying amount of those non-marketable equity investments accounted for under the fair value option was $54 million and $88 million as of April 30, 2025 and October 31, 2024, respectively. For the three months ended April 30, 2025, the Company recognized a realized gain of $1 million on these investments. For the six months ended April 30, 2025, the Company recognized a total gain of $5 million on these investments, of which $4 million was unrealized and $1 million was realized. For the six months ended April 30, 2024, the Company recognized an unrealized loss of $54 million on these investments. This amount is reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings. During the three and six months ended April 30, 2025, the Company sold $38 million of these investments. The carrying amount of those non-marketable equity investments accounted for under the measurement alternative was $197 million and $200 million as of April 30, 2025 and October 31, 2024, respectively. For the six months ended April 30, 2025 and 2024, the Company recognized a loss of $2 million resulting from an impairment and an unrealized net loss of $7 million, respectively, on these investments. These amounts are reflected in Interest and other, net in the Condensed Consolidated Statements of Earnings. Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets The gross notional and fair value of derivative instruments in the Condensed Consolidated Balance Sheets were as follows:
| As of April 30, 2025 |  | As of October 31, 2024
|  |  | 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 | $ | 2,500 |  |  | $ | — |  |  | $ | — |  |  | $ | 28 |  |  | $ | — |  |  | $ | 2,500 |  |  | $ | — |  |  | $ | — |  |  | $ | 58 |  |  | $ | — |
Cash Flow Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | 7,801 |  |  | 41 |  |  | 18 |  |  | 205 |  |  | 87 |  |  | 7,809 |  |  | 107 |  |  | 59 |  |  | 31 |  |  | 25 |
Net Investment Hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | 1,994 |  |  | 30 |  |  | 22 |  |  | 21 |  |  | 15 |  |  | 1,986 |  |  | 38 |  |  | 44 |  |  | 12 |  |  | 13 |
Total derivatives designated as hedging instruments | 12,295 |  |  | 71 |  |  | 40 |  |  | 254 |  |  | 102 |  |  | 12,295 |  |  | 145 |  |  | 103 |  |  | 101 |  |  | 38 |
Derivatives Not Designated as Hedging Instruments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Foreign currency contracts | 5,762 |  |  | 37 |  |  | 4 |  |  | 60 |  |  | 1 |  |  | 5,528 |  |  | 46 |  |  | 5 |  |  | 18 |  |  | 4 |
Other derivatives | 133 |  |  | 3 |  |  | — |  |  | — |  |  | — |  |  | 147 |  |  | — |  |  | — |  |  | 2 |  |  | — |
Total derivatives not designated as hedging instruments | 5,895 |  |  | 40 |  |  | 4 |  |  | 60 |  |  | 1 |  |  | 5,675 |  |  | 46 |  |  | 5 |  |  | 20 |  |  | 4 |
Total derivatives | $ | 18,190 |  |  | $ | 111 |  |  | $ | 44 |  |  | $ | 314 |  |  | $ | 103 |  |  | $ | 17,970 |  |  | $ | 191 |  |  | $ | 108 |  |  | $ | 121 |  |  | $ | 42 |
Offsetting of Derivative Instruments The Company recognizes all derivative instruments on a gross basis in the Condensed 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. The information related to the potential effect of the Company's use of the master netting agreements and collateral security agreements were as follows:
| As of April 30, 2025
| In the Condensed 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 | $ | 155 |  |  | $ | — |  |  | $ | 155 |  |  | $ | 140 |  |  | $ | 4 |  | (1) |  | $ | 11 |
Derivative liabilities | $ | 417 |  |  | $ | — |  |  | $ | 417 |  |  | $ | 140 |  |  | $ | 292 |  | (2) |  | N/A
| As of October 31, 2024
| In the Condensed 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 | $ | 299 |  |  | $ | — |  |  | $ | 299 |  |  | $ | 138 |  |  | $ | 90 |  | (1) |  | $ | 71 |
Derivative liabilities | $ | 163 |  |  | $ | — |  |  | $ | 163 |  |  | $ | 138 |  |  | $ | 27 |  | (2) |  | N/A
(1)Represents the cash collateral posted by counterparties as of the respective reporting date for the Company's asset position, net of derivative amounts that could be offset, as of, generally, two business days prior to the respective reporting date. (2)Represents the collateral posted by the Company in cash or through the 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 April 30, 2025, of the $292 million of collateral posted, $288 million was in cash and $4 million was through the re-use of counterparty collateral. As of October 31, 2024, $27 million of collateral posted was entirely through the re-use of counterparty collateral. The amounts recorded on the Condensed Consolidated Balance Sheets related to cumulative basis adjustments for fair value hedges were as follows:
| Carrying Amount of the Hedged Liabilities |  | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets
| As of |  | As of
| April 30, 2025 |  | October 31, 2024 |  | April 30, 2025 |  | October 31, 2024
| In millions
Notes payable and short-term borrowings | $ | (2,471) |  |  | $ | (2,440) |  |  | $ | 28 |  |  | $ | 58 |
The pre-tax effect of derivative instruments in cash flow and net investment hedging relationships recognized in Other Comprehensive Income (“OCI”) were as follows:
| Gains (Losses) Recognized in OCI on Derivatives
| For the three months ended April 30, |  | For the six months ended April 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| In millions
Derivatives in Cash Flow Hedging Relationship: |  |  |  |  |  |  |
Foreign exchange contracts | $ | (465) |  |  | $ | 169 |  |  | $ | (195) |  |  | $ | (35) |
Derivatives in Net Investment Hedging Relationship: |  |  |  |  |  |  |
Foreign exchange contracts | (64) |  |  | 20 |  |  | (21) |  |  | (19) |
Total | $ | (529) |  |  | $ | 189 |  |  | $ | (216) |  |  | $ | (54) |
As of April 30, 2025, the Company expects to reclassify an estimated net accumulated other comprehensive loss of approximately $113 million, net of taxes, to earnings in the next twelve months along with the earnings effects of the related forecasted transactions associated with cash flow hedges. Effect of Derivative Instruments on the Condensed Consolidated Statements of Earnings The following table represents the pre-tax effect of derivative instruments on total amounts of income and expense line items presented in the Condensed Consolidated Statements of Earnings in which the effects of fair value hedges and derivatives not designated as hedging instruments are recorded:
| Gains (Losses) Recognized in Income
| For the three months ended April 30, |  | For the six months ended April 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
| Net Revenue |  | Interest and Other, net |  | Net Revenue |  | Interest and Other, net |  | Net Revenue |  | Interest and Other, net |  | Net Revenue |  | Interest and Other, net
| In millions
Total net revenue and interest and other, net | $ | 7,627 |  |  | $ | 39 |  |  | $ | 7,204 |  |  | $ | (22) |  |  | $ | 15,481 |  |  | $ | 78 |  |  | $ | 13,959 |  |  | $ | (110) |
Gains (Losses) on Derivatives in Fair Value Hedging Relationships:
Interest Rate Contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hedged items | $ | — |  |  | $ | (15) |  |  | $ | — |  |  | $ | 15 |  |  | $ | — |  |  | $ | (30) |  |  | $ | — |  |  | $ | (32) |
Derivatives designated as hedging instruments | — |  |  | 15 |  |  | — |  |  | (15) |  |  | — |  |  | 30 |  |  | — |  |  | 32 |
Gains (Losses) on Derivatives in Cash Flow Hedging Relationships:
Foreign Exchange Contracts |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of gains (losses) reclassified from accumulated other comprehensive income into income | 39 |  |  | (283) |  |  | 22 |  |  | 93 |  |  | 83 |  |  | (113) |  |  | 46 |  |  | (45) |
Interest Rate Locks |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Amount of losses reclassified from accumulated other comprehensive income into income | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1) |  |  | — |  |  | — |
Gains (Losses) on Derivatives not Designated as Hedging Instruments:
Foreign exchange contracts | — |  |  | (130) |  |  | — |  |  | 62 |  |  | — |  |  | (76) |  |  | — |  |  | 18 |
Other derivatives | — |  |  | — |  |  | — |  |  | (5) |  |  | — |  |  | 4 |  |  | — |  |  | (1) |
Total gains (losses) | $ | 39 |  |  | $ | (413) |  |  | $ | 22 |  |  | $ | 150 |  |  | $ | 83 |  |  | $ | (186) |  |  | $ | 46 |  |  | $ | (28) |

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- Definition The entire disclosure for financial instruments. This disclosure includes, but is not limited to, fair value measurements of short and long term marketable securities, international currencies forward contracts, and auction rate securities. Financial instruments may include hedging and non-hedging currency exchange instruments, derivatives, securitizations and securities available for sale at fair value. Also included are investment results, realized and unrealized gains and losses as well as impairments and risk management disclosures. + References No definition available. + Details
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