DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Jul. 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
July 28, 2019	Hedged Item		Relationships		Relationships		Total
Long-term borrowings due within one year*	$	187	$	1	$	(5)	$	(4)
Long-term borrowings		9,154		184		(50)		134

* 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:

	July 28		October 28		July 29
Other Assets	2019		2018		2018
Designated as hedging instruments:
Interest rate contracts	$	232	$	29	$	24
Cross-currency interest rate contracts						3
Total designated		232		29		27
Not designated as hedging instruments:
Interest rate contracts		33		51		44
Foreign exchange contracts		53		83		50
Cross-currency interest rate contracts		2		5		3
Total not designated		88		139		97
Total derivative assets	$	320	$	168	$	124
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	55	$	321	$	305
Total designated		55		321		305
Not designated as hedging instruments:
Interest rate contracts		44		29		25
Foreign exchange contracts		45		49		52
Cross-currency interest rate contracts		2				2
Total not designated		91		78		79
Total derivative liabilities	$	146	$	399	$	384

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				Nine Months Ended
	July 28		July 29		July 28		July 29
	2019		2018		2019		2018
Fair Value Hedges:
Interest rate contracts - Interest expense	$	193	$	(10)	$	468	$	(264)
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax) *		(27)		1		(42)		15
Foreign exchange contracts - OCI (pretax) *								1
Reclassified from OCI
Interest rate contracts - Interest expense *		1		2		6		3
Not Designated as Hedges:
Interest rate contracts - Net sales	$	(6)			$	(23)
Interest rate contracts - Interest expense *		(7)	$	(3)		(25)	$	(3)
Foreign exchange contracts - Cost of sales		(8)		(10)		(1)		(22)
Foreign exchange contracts - Other operating *		(12)		144		88		92
Total not designated	$	(33)	$	131	$	39	$	67

* 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
July 28, 2019	Recognized		Arrangements		Paid	Net Amount
Assets	$	320	$	(70)		$	250
Liabilities		146		(70)			76

	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
July 29, 2018	Recognized		Arrangements		Paid		Net Amount
Assets	$	124	$	(67)			$	57
Liabilities		384		(67)	$	(34)		283