DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Jan. 31, 2014

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:

	Three Months Ended January 31
	2014		2013
Interest rate contracts *	$	(69)	$	(73)
Borrowings **	67		75

* Includes changes in fair values of interest rate contracts excluding net accrued interest income of $36 million and $38 million during the first three months of 2014 and 2013, respectively.

** Includes adjustment for fair values of hedged borrowings excluding accrued interest expense of $59 million and $67 million during the first three months of 2014 and 2013, respectively.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the condensed consolidated balance sheet in millions of dollars follow:

Other Assets	January 31 2014		October 31 2013		January 31 2013
Designated as hedging instruments:
Interest rate contracts	$	283	$	295	$	493
Cross-currency interest rate contracts	15		14		7
Total designated	298		309		500

Not designated as hedging instruments:
Interest rate contracts	46		52		64
Foreign exchange contracts	70		32		35
Cross-currency interest rate contracts	4		1		1
Total not designated	120		85		100

Total derivatives	$	418	$	394	$	600

Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	95	$	71	$	18
Cross-currency interest rate contracts			16		31
Total designated	95		87		49
Not designated as hedging instruments:
Interest rate contracts	49		49		57
Foreign exchange contracts	24		42		35
Cross-currency interest rate contracts			1		2
Total not designated	73		92		94
Total derivatives	$	168	$	179	$	143

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:

	Expense or	Three Months Ended
	OCI	January 31
	Classification	2014			2013
Fair Value Hedges:
Interest rate contracts	Interest		$	(33)	$	(35)

Cash Flow Hedges:
Recognized in OCI
(Effective Portion):
Interest rate contracts	OCI (pretax) *		(2)		(2)
Foreign exchange contracts	OCI (pretax) *		(3)		22

Reclassified from OCI
(Effective Portion):
Interest rate contracts	Interest *		(4)		(5)
Foreign exchange contracts	Other *		(5)		19

Recognized Directly in Income
(Ineffective Portion)			**		**

Not Designated as Hedges:
Interest rate contracts	Interest *		$	2	$	1
Foreign exchange contracts	Cost of sales		56
Foreign exchange contracts	Other *		87		(51)
Total not designated			$	145	$	(50)

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

** The amount is not significant.

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

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and any collateral received or paid follows:

	Gross Amounts		Netting		Collateral
January 31, 2014	Recognized		Arrangements		Received		Net Amount
Derivatives:
Assets	$	418	$	(113)	$	(9)	$	296
Liabilities	168		(113)				55

	Gross Amounts		Netting		Collateral
October 31, 2013	Recognized		Arrangements		Received		Net Amount
Derivatives:
Assets	$	394	$	(120)	$	(8)	$	266
Liabilities	179		(120)				59

	Gross Amounts		Netting		Collateral
January 31, 2013	Recognized		Arrangements		Received		Net Amount
Derivatives:
Assets	$	600	$	(91)	$	(95)	$	414
Liabilities	143		(91)				52