Derivatives (Tables)
 3 Months Ended
Apr. 30, 2011
Derivatives [Abstract]  
Aggregated notional amounts by currency and designation
There were 115 foreign exchange forward contracts and 7 foreign exchange option contracts open as of April 30, 2011 and designated as cash flow hedges. There were 209 foreign exchange forward contracts open as of April 30, 2011 not designated as hedging instruments. The aggregated U.S. Dollar notional amounts by currency and designation as of April 30, 2011 were as follows:
 
 
 
Derivatives in Cash Flow
Hedging Relationships
  
Derivatives
Not
Designated
as Hedging
Instruments
 
 
 
Forward
Contracts
  
Option
Contracts
  
Forward
Contracts
 
Currency
 
Buy/(Sell)
  
Buy/(Sell)
  
Buy/(Sell)
 
 
 
(in millions)
 
Euro
 $(116) $-  $187 
British Pound
  (47)  -   137 
Canadian Dollar
  (42)  -   10 
Australian Dollars
  47   -   29 
Malaysian Ringgit
  123   -   45 
Japanese Yen
  (63)  (134)  19 
Other
  2   -   28 
 
 $(96) $(134) $455 
Gross fair values and balance sheet location of derivative instruments held in the condensed consolidated balance sheet
The gross fair values and balance sheet location of derivative instruments held in the condensed consolidated balance sheet as of April 30, 2011 and October 31, 2010 were as follows:
 
Fair Values of Derivative Instruments
Asset Derivatives
 
Liability Derivatives
 
 
Fair Value
 
 
 
Fair Value
Balance Sheet Location
 
April 30,
2011
  
October 31,
2010
 
Balance Sheet Location
 
April 30,
2011
  
October 31,
2010
(in millions)
Derivatives designated as hedging instruments:
 
 
  
 
 
 
 
 
  
 
Fair value hedges
 
 
  
 
 
 
 
 
  
 
Interest rate contracts
 
 
  
 
 
 
 
 
  
 
Other assets
 $26  $61 
Other long-term liabilities
 $9  $-
 
        
 
       
Cash flow hedges
        
 
       
Foreign exchange contracts
        
 
       
Other current assets
 $12  $13 
Other accrued liabilities
 $14  $15
 
 $38  $74 
 
 $23  $15
Derivatives not designated as hedging instruments:
        
 
       
Foreign exchange contracts
        
 
       
Other current assets
 $29  $11 
Other accrued liabilities
 $11  $7
 
 $29  $11 
 
 $11  $7
 
        
 
       
Total derivatives
 $67  $85 
 
 $34  $22
 
Effect of derivative instruments for foreign exchange contracts in the condensed consolidated statement of operations
The effect of derivative instruments for foreign exchange and interest rate swap contracts designated as hedging instruments and not designated as hedging instruments in our condensed consolidated statement of operations were as follows:
 
 
 
Three Months Ended
April 30,
  
Six Months Ended
April 30,
 
 
 
2011
  
2010
  
2011
  
2010
 
 
 
(in millions)
 
Derivatives designated as hedging instruments:
 
 
  
 
  
 
  
 
 
Fair Value Hedges
 
 
  
 
  
 
  
 
 
Interest Gain (loss) on interest rate swap contracts, including settlement, recognized in interest expense
 $16  $5  $(28) $16 
Gain (loss) on hedged item, recognized in interest expense
 $(8) $-  $44  $(7)
Cash Flow Hedges
                
Gain (loss) recognized in accumulated other comprehensive income
 $-  $9  $(2) $11 
Gain (loss) reclassified from accumulated other comprehensive income into cost of sales
 $(1) $3  $(2) $3 
Derivatives not designated as hedging instruments:
                
Gain (loss) recognized in other income (expense)
 $24  $(11) $28  $(23)