DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 31, 2021

DERIVATIVE INSTRUMENTS

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

The amounts recorded, at October 31, 2021 and November 1, 2020, 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
	Carrying		Included in the Carrying Amount
	Amount of		Active
	Hedged		Hedging		Discontinued
	Item		Relationships		Relationships		Total
2021
Long-term borrowings due within one year*	$	189	$	3	$	(2)	$	1
Long-term borrowings		8,070		29		223		252
2020
Long-term borrowings due within one year*	$	155	$	2	$	3	$	5
Long-term borrowings		7,725		543		122		665

*    Presented in short-term borrowings.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the consolidated balance sheet at October 31, 2021 and November 1, 2020 in millions of dollars follow:

	2021		2020
Other Assets
Designated as hedging instruments:
Interest rate contracts	$	166	$	586
Not designated as hedging instruments:
Interest rate contracts		73		83
Foreign exchange contracts		31		48
Cross-currency interest rate contracts		5		8
Total not designated		109		139
Total derivative assets	$	275	$	725
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	99	$	14
Not designated as hedging instruments:
Interest rate contracts		33		74
Foreign exchange contracts		94		26
Cross-currency interest rate contracts		2		1
Total not designated		129		101
Total derivative liabilities	$	228	$	115

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:

	2021		2020		2019
Fair Value Hedges
Interest rate contracts – Interest expense	$	(236)	$	496	$	589
Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)		8		(18)		(92)
Reclassified from OCI:
Interest rate contracts – Interest expense		(13)		(21)		5
Not Designated as Hedges
Interest rate contracts – Net sales	$	13	$	(23)	$	(23)
Interest rate contracts – Interest expense*		14		(2)		(32)
Foreign exchange contracts – Cost of sales		(101)		93		(18)
Foreign exchange contracts – Other operating expenses*		(262)		122		97
Total not designated	$	(336)	$	190	$	24

*    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 collateral at October 31, 2021 and November 1, 2020 in millions of dollars follows:

	Gross Amounts		Netting				Net
	Recognized		Arrangements		Collateral		Amount
2021
Assets	$	275	$	(105)			$	170
Liabilities		228		(105)	$	(5)		118
2020
Assets	$	725	$	(93)	$	(274)	$	358
Liabilities		115		(93)				22