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52 2015 Annual Report
Financial Statement Presentation
Although subject to master netting arrangements, the Company does not offset derivative assets and derivative liabilities in its Consolidated Balance
Sheets. Derivative instruments with an unrealized gain are recorded in the Company’s Consolidated Balance Sheets as either current or non-current
assets, based on maturity date, and those hedging instruments with an unrealized loss are recorded as either current or non-current liabilities, based
on maturity date.
The Company’s derivative instruments, as well as its nonderivative debt instruments designated and qualifying as net investment hedges, were classified
as follows in the Company’s Consolidated Balance Sheets:
January 31, 2015 January 31, 2014
Fair Value Net Investment Cash Flow Fair Value Net Investment Cash Flow
(Amounts in millions) Instruments Instruments Instruments Instruments Instruments Instruments
Derivative instruments
Prepaid expenses and other $— $ — $ — $ 5 $ — $ —
Other assets and deferred charges 12 207 293 — 97 619
Derivative asset subtotals $12 $ 207 $293 $ 5 $ 97 $619
Accrued liabilities $— $ — $ 1 $— $ — $ 1
Deferred income taxes and other — — 610 — — 1
Derivative liability subtotals $— $ — $611 $— $ — $ 2
Nonderivative hedging instruments
Long-term debt due within one year $— $ 766 $ — $— $ 973 $ —
Long-term debt — 3,850 — — 5,095 —
Nonderivative hedge
liability subtotals $— $4,616 $ — $— $6,068 $ —
Gains and losses related to the Company’s derivatives primarily relate to interest rate hedges, which are recorded in interest, net, in the
Company’s Consolidated Statements of Income. Amounts related to the Company’s derivatives expected to be reclassified from accumulated
other comprehensive income (loss) to net income during the next 12 months are not significant.
9 Taxes
Income from Continuing Operations
The components of income from continuing operations before income
taxes are as follows:
Fiscal Years Ended January 31,
(Amounts in millions) 2015 2014 2013
U.S. $18,610 $19,412 $19,352
Non-U.S. 6,189 5,244 6,310
Total income from continuing
operations before income taxes $24,799 $24,656 $25,662
A summary of the provision for income taxes is as follows:
Fiscal Years Ended January 31,
(Amounts in millions) 2015 2014 2013
Current:
U.S. federal $6,165 $6,377 $5,611
U.S. state and local 810 719 622
International 1,529 1,523 1,743
Total current tax provision 8,504 8,619 7,976
Deferred:
U.S. federal (387) (72) 38
U.S. state and local (55) 37 (8)
International (77) (479) (48)
Total deferred tax expense (benefit) (519) (514) (18)
Total provision for income taxes $7,985 $8,105 $7,958
Notes to Consolidated Financial Statements