DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 30, 2022

DERIVATIVE INSTRUMENTS

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

The amounts recorded, at October 30, 2022 and October 31, 2021, in the consolidated balance sheets 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						Discontinued Hedging
		Relationships						Relationships
		Carrying			Cumulative			Carrying			Cumulative
		Amount of			Fair Value			Amount of			Fair Value
		Hedged			Hedging			Formerly			Hedging
		Item			Amount			Hedged Item			Amount
2022
Short-term borrowings								$	2,515		$	15
Long-term borrowings		$	9,060		$	(1,006)			5,520			(19)
2021
Short-term borrowings		$	191		$	3		$	1,997		$	(2)
Long-term borrowings			7,847			29			6,287			223

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the consolidated balance sheets at October 30, 2022 and October 31, 2021 in millions of dollars follow:


		2022			2021
Other Assets
Designated as hedging instruments:
Interest rate contracts		$	87		$	166
Not designated as hedging instruments:
Interest rate contracts			212			73
Foreign exchange contracts			66			31
Cross-currency interest rate contracts			8			5
Total not designated			286			109
Total derivative assets		$	373		$	275
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts		$	1,004		$	99
Not designated as hedging instruments:
Interest rate contracts			107			33
Foreign exchange contracts			118			94
Cross-currency interest rate contracts			2			2
Total not designated			227			129
Total derivative liabilities		$	1,231		$	228

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 statements of consolidated income consisted of the following in millions of dollars:


		2022			2021			2020
Fair Value Hedges
Interest rate contracts – Interest expense		$	(1,144)		$	(236)		$	496

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)			89			8			(18)

Reclassified from OCI:
Interest rate contracts – Interest expense			9			(13)			(21)

Not Designated as Hedges
Interest rate contracts – Net sales		$	53		$	13		$	(23)
Interest rate contracts – Interest expense*			81			14			(2)
Foreign exchange contracts – Net sales			(6)
Foreign exchange contracts – Cost of sales			(64)			(101)			93
Foreign exchange contracts – Other operating expenses*			402			(262)			122
Total not designated		$	466		$	(336)		$	190

* 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 30, 2022 and October 31, 2021 in millions of dollars follows:


		Gross Amounts			Netting						Net
		Recognized			Arrangements			Collateral			Amount
2022
Assets		$	373		$	(179)		$	(54)		$	140
Liabilities			1,231			(179)			(701)			351
2021
Assets		$	275		$	(105)					$	170
Liabilities			228			(105)		$	(5)			118