DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 31, 2012

DERIVATIVE INSTRUMENTS

Fair Value Hedge Derivative Instruments and Related Borrowings

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

	2012			2011
Interest rate contracts*	$	180		$	16
Borrowings**	(182		)	(21		)

*Includes changes in fair values of interest rate contracts excluding net accrued interest income of $155 million and $172 million during 2012 and 2011, respectively.

**Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $282 million and $277 million during 2012 and 2011, 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:

	2012		2011
Other Assets
Designated as hedging instruments:
Interest rate contracts	$	536	$	404
Cross-currency interest rate contracts	10
Total designated	546		404
Not designated as hedging instruments:
Interest rate contracts	73		67
Foreign exchange contracts	17		12
Cross-currency interest rate contracts	1		2
Total not designated	91		81
Total derivatives	$	637	$	485
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	12	$	13
Cross-currency interest rate contracts	58		7
Total designated	70		20
Not designated as hedging instruments:
Interest rate contracts	60		48
Foreign exchange contracts	18		100
Cross-currency interest rate contracts	1
Total not designated	79		148
Total derivatives	$	149	$	168

Derivative Instruments Effect on 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:

	2012			2011			2010
Fair Value Hedges
Interest rate contracts — Interest expense	$	335		$	188		$	372
Cash Flow Hedges
Recognized in OCI
(Effective Portion):
Interest rate contracts — OCI (pretax)*	(28		)	(5		)	(14		)
Foreign exchange contracts — OCI (pretax)*	(33		)	36			(42		)
Reclassified from OCI
(Effective Portion):
Interest rate contracts — Interest expense*	(16		)	(20		)	(68		)
Foreign exchange contracts — Other expense*	(38		)	19			(11		)
Recognized Directly in Income
(Ineffective Portion)	**			**			**
Not Designated as Hedges
Interest rate contracts — Interest expense*	$	(13	)	$	(1	)	$	25
Foreign exchange contracts — Cost of sales	(12		)	(51		)	(19		)
Foreign exchange contracts — Other expense*	7			(127		)	(92		)
Total not designated	$	(18	)	$	(179	)	$	(86	)

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

**The amounts are not significant.