DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Feb. 02, 2020

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
	Hedged Item		Relationships		Relationships		Total
February 2, 2020
Long-term borrowings due within one year*	$	220	$	(1)	$	(5)	$	(6)
Long-term borrowings		9,521		379		(21)		358
November 3, 2019
Long-term borrowings due within one year*	$	412	$	(1)	$	(4)	$	(5)
Long-term borrowings		8,532		295		(32)		263
January 27, 2019
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:

	February 2		November 3		January 27
Other Assets	2020		2019		2019
Designated as hedging instruments:
Interest rate contracts	$	409	$	332	$	47
Total designated		409		332		47
Not designated as hedging instruments:
Interest rate contracts		34		31		29
Foreign exchange contracts		37		20		59
Cross-currency interest rate contracts		1		1		3
Total not designated		72		52		91
Total derivative assets	$	481	$	384	$	138
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	17	$	28	$	205
Total designated		17		28		205
Not designated as hedging instruments:
Interest rate contracts		40		37		27
Foreign exchange contracts		40		71		64
Cross-currency interest rate contracts		4		3		2
Total not designated		84		111		93
Total derivative liabilities	$	101	$	139	$	298

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
	February 2		January 27
	2020		2019
Fair Value Hedges:
Interest rate contracts - Interest expense	$	96	$	133
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)		(2)		(9)
Reclassified from OCI
Interest rate contracts - Interest expense		(2)		2
Not Designated as Hedges:
Interest rate contracts - Net sales	$	(4)	$	(10)
Interest rate contracts - Interest expense *		2		(8)
Foreign exchange contracts - Cost of sales		11		(5)
Foreign exchange contracts - Other operating *		(1)		20
Total not designated	$	8	$	(3)

* 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

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
February 2, 2020	Recognized		Arrangements		Received		Net Amount
Assets	$	481	$	(60)	$	(26)	$	395
Liabilities		101		(60)				41

	Gross Amounts		Netting		Collateral
November 3, 2019	Recognized		Arrangements		Received/Paid	Net Amount
Assets	$	384	$	(70)		$	314
Liabilities		139		(70)			69

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