DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Jul. 31, 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. Fair value hedging adjustments are included in the carrying amount of the hedged item.

	Active Hedging Relationships				Discontinued Hedging Relationships
	Carrying Amount		Cumulative Fair Value		Carrying Amount of		Cumulative Fair Value
	of Hedged Item		Hedging Amount		Formerly Hedged Item		Hedging Amount
July 31, 2022
Short-term borrowings					$	2,605	$	5
Long-term borrowings	$	7,835	$	(430)		5,728		39
October 31, 2021
Short-term borrowings	$	191	$	3	$	1,997	$	(2)
Long-term borrowings		7,847		29		6,287		223
August 1, 2021
Short-term borrowings	$	189	$	4	$	1,898	$	(1)
Long-term borrowings		8,698		263		5,831		190

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:

	July 31		October 31		August 1
Other Assets	2022		2021		2021
Designated as hedging instruments:
Interest rate contracts	$	82	$	166	$	332
Not designated as hedging instruments:
Interest rate contracts		163		73		57
Foreign exchange contracts		30		31		41
Cross-currency interest rate contracts		5		5		2
Total not designated		198		109		100
Total derivative assets	$	280	$	275	$	432
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	434	$	99	$	40
Not designated as hedging instruments:
Interest rate contracts		79		33		43
Foreign exchange contracts		149		94		67
Cross-currency interest rate contracts		5		2		2
Total not designated		233		129		112
Total derivative liabilities	$	667	$	228	$	152

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				Nine Months Ended
	July 31		August 1		July 31		August 1
	2022		2021		2022		2021
Fair Value Hedges:
Interest rate contracts - Interest expense	$	149	$	146	$	(507)	$	(79)
Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)	$	1	$	(1)	$	52	$	(1)
Reclassified from OCI
Interest rate contracts - Interest expense		3		(3)				(11)
Not Designated as Hedges:
Interest rate contracts - Net sales			$	(2)	$	44	$	3
Interest rate contracts - Interest expense *	$	(18)		(2)		41		(6)
Foreign exchange contracts - Net sales		(1)				(2)
Foreign exchange contracts - Cost of sales		(29)		(7)		(109)		(107)
Foreign exchange contracts - Other operating expenses *		(20)		(5)		153		(209)
Total not designated	$	(68)	$	(16)	$	127	$	(319)

* 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
July 31, 2022	Recognized		Arrangements		Collateral		Net Amount
Assets	$	280	$	(125)	$	(40)	$	115
Liabilities		667		(125)		(238)		304

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

	Gross Amounts		Netting
August 1, 2021	Recognized		Arrangements		Collateral		Net Amount
Assets	$	432	$	(94)	$	(88)	$	250
Liabilities		152		(94)		(2)		56