DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 31, 2015

DERIVATIVE INSTRUMENTS

Fair Value Hedge Interest Rate Contracts and Underlying Borrowings

The gains (losses) on these contracts and the underlying borrowings recorded in interest expense follow in millions of dollars:

	2015		2014
Interest rate contracts*	$	104	$	(13)
Borrowings**		(102)		11

*Includes changes in fair values of interest rate contracts excluding net accrued interest income of $173 million and $168 million during 2015 and 2014, respectively.

**Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $274 million and $267 million during 2015 and 2014, respectively.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the consolidated balance sheet at October 31 in millions of dollars follow:

	2015		2014
Other Assets
Designated as hedging instruments:
Interest rate contracts	$	299	$	266
Cross-currency interest rate contracts		14		13
Total designated		313		279
Not designated as hedging instruments:
Interest rate contracts		54		53
Foreign exchange contracts		50		18
Cross-currency interest rate contracts		11		3
Total not designated		115		74
Total derivative assets	$	428	$	353
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	8	$	35
Total designated		8		35
Not designated as hedging instruments:
Interest rate contracts		52		46
Foreign exchange contracts		18		29
Total not designated		70		75
Total derivative liabilities	$	78	$	110

Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income

The classification and gains (losses) including accrued interest expense related to derivative instruments on the statement of consolidated income consisted of the following in millions of dollars:

	2015		2014		2013
Fair Value Hedges
Interest rate contracts – Interest expense	$	277	$	155	$	(89)
Cash Flow Hedges
Recognized in OCI
(Effective Portion):
Interest rate contracts – OCI (pretax)*		(16)		(10)		(15)
Foreign exchange contracts – OCI (pretax)*		4		(4)		58
Reclassified from OCI
(Effective Portion):
Interest rate contracts – Interest expense*		(12)		(13)		(22)
Foreign exchange contracts – Other expense*		4		(6)		49
Recognized Directly in Income
(Ineffective Portion)		**		**		**
Not Designated as Hedges
Interest rate contracts – Interest expense*	$	(17)	$	3	$	(6)
Foreign exchange contracts – Cost of sales		97		25		35
Foreign exchange contracts – Other expense*		304		79		20
Total not designated	$	384	$	107	$	49

*Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.

**The amounts are not significant.

Impact on Derivative Assets and Liabilities Related to Netting Arrangements and Collateral

The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid at October 31 in millions of dollars follows:

	Gross Amounts		Netting		Collateral		Net
	Recognized		Arrangements		Received		Amount
2015
Assets	$	428	$	(62)			$	366
Liabilities		78		(62)				16
2014
Assets	$	353	$	(76)	$	(5)	$	272
Liabilities		110		(76)				34