DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Jan. 27, 2019

DERIVATIVE INSTRUMENTS

Amounts Recorded in the Balance Sheet Related to Borrowings Designated in Fair Value Hedging Relationships

The amounts recorded in the consolidated balance sheet related to borrowings designated in fair value hedging relationships in millions of dollars follow:

			Cumulative Increase (Decrease) of Fair
			Value Hedging Adjustments Included in
			the Carrying Amount
	Carrying		Active
	Amount of		Hedging		Discontinued
January 27, 2019	Hedged Item		Relationships		Relationships		Total
Long-term borrowings due within one year*	$	192	$	1	$	(4)	$	(3)
Long-term borrowings		8,177		(179)		(41)		(220)

* Presented in short-term borrowings

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:

	January 27		October 28		January 28
Other Assets	2019		2018		2018
Designated as hedging instruments:
Interest rate contracts	$	47	$	29	$	39
Cross-currency interest rate contracts						4
Total designated		47		29		43
Not designated as hedging instruments:
Interest rate contracts		29		51		55
Foreign exchange contracts		59		83		31
Cross-currency interest rate contracts		3		5		4
Total not designated		91		139		90
Total derivative assets	$	138	$	168	$	133
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	205	$	321	$	223
Total designated		205		321		223
Not designated as hedging instruments:
Interest rate contracts		27		29		25
Foreign exchange contracts		64		49		124
Cross-currency interest rate contracts		2				2
Total not designated		93		78		151
Total derivative liabilities	$	298	$	399	$	374

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:

	Three Months Ended
	January 27		January 28
	2019		2018
Fair Value Hedges:
Interest rate contracts - Interest expense	$	133	$	(136)
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax) *		(9)		8
Reclassified from OCI
Interest rate contracts - Interest expense *		2
Not Designated as Hedges:
Interest rate contracts - Net sales	$	(10)
Interest rate contracts - Interest expense *		(8)	$	5
Foreign exchange contracts - Cost of sales		(5)		(48)
Foreign exchange contracts - Other operating *		20		(216)
Total not designated	$	(3)	$	(259)

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

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 in millions of dollars follows:

	Gross Amounts		Netting		Collateral
January 27, 2019	Recognized		Arrangements		Paid		Net Amount
Assets	$	138	$	(75)			$	63
Liabilities		298		(75)	$	(8)		215

	Gross Amounts		Netting		Collateral
October 28, 2018	Recognized		Arrangements		Paid		Net Amount
Assets	$	168	$	(65)			$	103
Liabilities		399		(65)	$	(59)		275

	Gross Amounts		Netting		Collateral
January 28, 2018	Recognized		Arrangements		Paid	Net Amount
Assets	$	133	$	(70)		$	63
Liabilities		374		(70)			304