DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Apr. 28, 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
April 28, 2019	Hedged Item		Relationships		Relationships		Total
Long-term borrowings due within one year*	$	190	$	1	$	(4)	$	(3)
Long-term borrowings		9,169		(31)		(38)		(69)

* 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:

	April 28		October 28		April 29
Other Assets	2019		2018		2018
Designated as hedging instruments:
Interest rate contracts	$	105	$	29	$	34
Cross-currency interest rate contracts						3
Total designated		105		29		37
Not designated as hedging instruments:
Interest rate contracts		34		51		53
Foreign exchange contracts		99		83		101
Cross-currency interest rate contracts		2		5		3
Total not designated		135		139		157
Total derivative assets	$	240	$	168	$	194
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	125	$	321	$	316
Total designated		125		321		316
Not designated as hedging instruments:
Interest rate contracts		40		29		25
Foreign exchange contracts		48		49		28
Cross-currency interest rate contracts		2				2
Total not designated		90		78		55
Total derivative liabilities	$	215	$	399	$	371

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				Six Months Ended
	April 28		April 29		April 28		April 29
	2019		2018		2019		2018
Fair Value Hedges:
Interest rate contracts - Interest expense	$	141	$	(118)	$	274	$	(254)
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax) *		(6)		6		(14)		14
Foreign exchange contracts - OCI (pretax) *				1				1
Reclassified from OCI
Interest rate contracts - Interest expense *		3		1		5		1
Not Designated as Hedges:
Interest rate contracts - Net sales	$	(7)			$	(17)
Interest rate contracts - Interest expense *		(10)	$	(5)		(18)
Foreign exchange contracts - Cost of sales		12		36		7	$	(12)
Foreign exchange contracts - Other operating *		80		164		100		(52)
Total not designated	$	75	$	195	$	72	$	(64)

* 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
April 28, 2019	Recognized		Arrangements		Received		Net Amount
Assets	$	240	$	(99)	$	(1)	$	140
Liabilities		215		(99)				116

	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
April 29, 2018	Recognized		Arrangements		Paid		Net Amount
Assets	$	194	$	(74)			$	120
Liabilities		371		(74)	$	(32)		265