DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 29, 2023

DERIVATIVE INSTRUMENTS

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of our derivative instruments and the associated notional amounts at the end of 2023 and 2022 were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”


					Fair Value
		Notional			Assets			Liabilities
2023
Cash flow hedges:
Interest rate contracts		$	1,500		$	45

Fair value hedges:
Interest rate contracts			12,691					$	970

Not designated as hedging instruments:
Interest rate contracts			13,853			169			98
Foreign exchange contracts			8,117			75			54
Cross-currency interest rate contracts			176			3			8

2022
Cash flow hedges:
Interest rate contracts		$	1,950		$	87

Fair value hedges:
Interest rate contracts			10,112					$	1,004

Not designated as hedging instruments:
Interest rate contracts			10,568			212			107
Foreign exchange contracts			8,185			66			118
Cross-currency interest rate contracts			260			8			2

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

The amounts recorded, at October 29, 2023 and October 30, 2022, in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. 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
2023
Short-term borrowings								$	1,814		$	15
Long-term borrowings		$	11,660		$	(976)			7,144			(288)
2022
Short-term borrowings								$	2,515		$	15
Long-term borrowings		$	9,060		$	(1,006)			5,520			(19)

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:


		2023			2022			2021
Fair Value Hedges
Interest rate contracts – Interest expense		$	(542)		$	(1,144)		$	(236)

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)		$	25		$	89		$	8

Reclassified from OCI:
Interest rate contracts – Interest expense			62			9			(13)

Not Designated as Hedges
Interest rate contracts – Net sales		$	1		$	53		$	13
Interest rate contracts – Interest expense			40			81			14
Foreign exchange contracts – Net sales			(6)			(6)
Foreign exchange contracts – Cost of sales			8			(64)			(101)
Foreign exchange contracts – Other operating expenses			100			402			(262)
Total not designated		$	143		$	466		$	(336)

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 29, 2023 and October 30, 2022 follows:


		Gross Amounts			Netting						Net
		Recognized			Arrangements			Collateral			Amount
2023
Assets		$	292		$	(152)					$	140
Liabilities			1,130			(152)		$	(659)			319
2022
Assets		$	373		$	(179)		$	(54)		$	140
Liabilities			1,231			(179)			(701)			351