DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

May 01, 2022

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 were as follows in millions of dollars:

			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 1, 2022
Long-term borrowings due within one year	$	185	$	1	$	7	$	8
Long-term borrowings		7,933		(613)		106		(507)
October 31, 2021
Long-term borrowings due within one year	$	189	$	3	$	(2)	$	1
Long-term borrowings		8,070		29		223		252
May 2, 2021
Long-term borrowings due within one year	$	163	$	1	$	(1)
Long-term borrowings		8,502		190		171	$	361

Long-term borrowings due within one year are presented in short-term borrowings.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the condensed consolidated balance sheets were as follows in millions of dollars:

	May 1		October 31		May 2
Other Assets	2022		2021		2021
Designated as hedging instruments:
Interest rate contracts	$	63	$	166	$	301
Not designated as hedging instruments:
Interest rate contracts		180		73		67
Foreign exchange contracts		125		31		30
Cross-currency interest rate contracts		39		5		4
Total not designated		344		109		101
Total derivative assets	$	407	$	275	$	402
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	591	$	99	$	80
Not designated as hedging instruments:
Interest rate contracts		75		33		52
Foreign exchange contracts		114		94		89
Cross-currency interest rate contracts				2		2
Total not designated		189		129		143
Total derivative liabilities	$	780	$	228	$	223

Gains (Losses) Related to Derivative Instruments on Statement of Consolidated Income

The classification and gains (losses) including accrued interest expense related to derivative instruments consisted of the following in millions of dollars:

	Three Months Ended				Six Months Ended
	May 1		May 2		May 1		May 2
	2022		2021		2022		2021
Fair Value Hedges:
Interest rate contracts - Interest expense	$	(514)	$	(170)	$	(656)	$	(225)
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)		35				50
Reclassified from OCI
Interest rate contracts - Interest expense		(1)		(4)		(3)		(9)
Not Designated as Hedges:
Interest rate contracts - Net sales	$	31	$	5	$	44	$	5
Interest rate contracts - Interest expense *		61				59		(4)
Foreign exchange contracts - Net sales		(1)				(1)
Foreign exchange contracts - Cost of sales		(79)		(48)		(80)		(100)
Foreign exchange contracts - Other operating expenses *		26		(78)		173		(204)
Total not designated	$	38	$	(121)	$	195	$	(303)

* 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 was as follows in millions of dollars:

	Gross Amounts		Netting
May 1, 2022	Recognized		Arrangements		Collateral		Net Amount
Assets	$	407	$	(110)			$	297
Liabilities		780		(110)	$	(254)		416

	Gross Amounts		Netting
October 31, 2021	Recognized		Arrangements		Collateral		Net Amount
Assets	$	275	$	(105)			$	170
Liabilities		228		(105)	$	(5)		118

	Gross Amounts		Netting
May 2, 2021	Recognized		Arrangements		Collateral		Net Amount
Assets	$	402	$	(125)	$	(21)	$	256
Liabilities		223		(125)		(1)		97