DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Oct. 27, 2024

DERIVATIVE INSTRUMENTS

Fair Values of Derivative Instruments in Consolidated Balance Sheets

Fair values of our derivative instruments and the associated notional amounts at the end of 2024 and 2023 were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”


					Fair Value
		Notional			Assets			Liabilities
2024
Cash flow hedges:
Interest rate contracts		$	2,875		$	3		$	20

Fair value hedges:
Interest rate contracts			15,864			115			467
Cross-currency interest rate contracts			975			31

Not designated as hedging instruments:
Interest rate contracts			12,518			97			75
Foreign exchange contracts			7,533			95			20
Cross-currency interest rate contracts			158			16

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

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

The amounts recorded, at October 27, 2024 and October 29, 2023, 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
2024
Short-term borrowings		$	287		$	(1)		$	1,782		$	7
Long-term borrowings			16,125			(347)			8,626			(228)
2023
Short-term borrowings								$	1,814		$	15
Long-term borrowings		$	11,660		$	(976)			7,144			(288)

Gains (Losses) Related to Derivative Instruments on Statements 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:


		2024			2023			2022
Fair Value Hedges
Interest rate contracts – Interest expense		$	226		$	(542)		$	(1,144)

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)		$	(10)		$	25		$	89
Reclassified from OCI:
Interest rate contracts – Interest expense			71			62			9

Not Designated as Hedges
Interest rate contracts – Net sales					$	1		$	53
Interest rate contracts – Interest expense		$	(4)			40			81
Foreign exchange contracts – Net sales			(2)			(6)			(6)
Foreign exchange contracts – Cost of sales			10			8			(64)
Foreign exchange contracts – Other operating expenses			(135)			100			402
Total not designated		$	(131)		$	143		$	466

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 27, 2024 and October 29, 2023 follows:


		Gross Amounts			Netting						Net
		Recognized			Arrangements			Collateral			Amount
2024
Assets		$	357		$	(142)					$	215
Liabilities			582			(142)		$	(246)			194
2023
Assets		$	292		$	(152)					$	140
Liabilities			1,130			(152)		$	(659)			319