DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Jul. 30, 2023

DERIVATIVE INSTRUMENTS

Fair Value of Derivative Instruments in Consolidated Balance Sheet

The fair value of the Company’s derivative instruments and the associated notional amounts were as follows in millions of dollars. Assets are recorded in “Other assets” on the consolidated balance sheets, while liabilities are recorded in “Accounts payable and accrued expenses.”


		July 30, 2023									October 30, 2022									July 31, 2022
					Fair Value									Fair Value									Fair Value
		Notional			Assets			Liabilities			Notional			Assets			Liabilities			Notional			Assets			Liabilities
Cash flow hedges:
Interest rate contracts		$	1,500		$	48		$	3		$	1,950		$	87					$	2,350		$	59		$	1

Fair value hedges:
Interest rate contracts			12,160			4			729			10,112					$	1,004			8,303			23			433

Not designated as hedging instruments:
Interest rate contracts			13,233			221			109			10,568			212			107			9,880			163			79
Foreign exchange contracts			8,630			51			82			8,185			66			118			7,457			30			149
Cross-currency interest rate contracts			155						25			260			8			2			276			5			5

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 30, 2023
Short-term borrowings								$	2,324		$	25
Long-term borrowings		$	11,379		$	(728)			6,319			(265)

October 30, 2022
Short-term borrowings								$	2,515		$	15
Long-term borrowings		$	9,060		$	(1,006)			5,520			(19)

July 31, 2022
Short-term borrowings								$	2,605		$	5
Long-term borrowings		$	7,835		$	(430)			5,728			39

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:


		Three Months Ended						Nine Months Ended
		July 30			July 31			July 30			July 31
		2023			2022			2023			2022
Fair Value Hedges:
Interest rate contracts - Interest expense		$	(375)		$	149		$	(146)		$	(507)

Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)		$	24		$	1		$	19		$	52
Reclassified from OCI
Interest rate contracts - Interest expense			18			3			52

Not Designated as Hedges:
Interest rate contracts - Net sales		$	6								$	44
Interest rate contracts - Interest expense *			48		$	(18)		$	45			41
Foreign exchange contracts - Net sales			3			(1)			2			(2)
Foreign exchange contracts - Cost of sales			(78)			(29)			(14)			(109)
Foreign exchange contracts - Other operating expenses *			(142)			(20)			(157)			153
Total not designated		$	(163)		$	(68)		$	(124)		$	127

* 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
July 30, 2023		Recognized			Arrangements			Collateral			Net Amount
Assets		$	324		$	(160)		$	(28)		$	136
Liabilities			948			(160)			(435)			353


		Gross Amounts			Netting
October 30, 2022		Recognized			Arrangements			Collateral			Net Amount
Assets		$	373		$	(179)		$	(54)		$	140
Liabilities			1,231			(179)			(701)			351


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