DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

May 03, 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
May 3, 2020
Long-term borrowings due within one year*	$	214			$	(2)	$	(2)
Long-term borrowings		9,496	$	726		36		762
November 3, 2019
Long-term borrowings due within one year*	$	412	$	(1)	$	(4)	$	(5)
Long-term borrowings		8,532		295		(32)		263
April 28, 2019
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:

	May 3		November 3		April 28
Other Assets	2020		2019		2019
Designated as hedging instruments:
Interest rate contracts	$	758	$	332	$	105
Total designated		758		332		105
Not designated as hedging instruments:
Interest rate contracts		84		31		34
Foreign exchange contracts		92		20		99
Cross-currency interest rate contracts		17		1		2
Total not designated		193		52		135
Total derivative assets	$	951	$	384	$	240
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	30	$	28	$	125
Total designated		30		28		125
Not designated as hedging instruments:
Interest rate contracts		101		37		40
Foreign exchange contracts		68		71		48
Cross-currency interest rate contracts				3		2
Total not designated		169		111		90
Total derivative liabilities	$	199	$	139	$	215

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
	May 3		April 28		May 3		April 28
	2020		2019		2020		2019
Fair Value Hedges:
Interest rate contracts - Interest expense	$	415	$	141	$	511	$	274
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)		(15)		(6)		(17)		(14)
Reclassified from OCI
Interest rate contracts - Interest expense		(4)		3		(6)		5
Not Designated as Hedges:
Interest rate contracts - Net sales	$	(20)	$	(7)	$	(24)	$	(17)
Interest rate contracts - Interest expense *		1		(10)		3		(18)
Foreign exchange contracts - Cost of sales		81		12		92		7
Foreign exchange contracts - Other operating *		175		80		174		100
Total not designated	$	237	$	75	$	245	$	72

* 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
May 3, 2020	Recognized		Arrangements		Received		Net Amount
Assets	$	951	$	(125)	$	(319)	$	507
Liabilities		199		(125)				74

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