DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Jan. 31, 2015

Fair Value Hedge Interest Rate Contracts and Underlying Borrowings

The gains (losses) on these contracts and the underlying borrowings recorded in interest expense were as follows in millions of dollars:

	Three Months Ended January 31
	2015		2014
Interest rate contracts *	$	176	$	(69)
Borrowings **	(173)		67

* Includes changes in fair values of interest rate contracts excluding net accrued interest income of $45 million and $36 million during the first three months of 2015 and 2014, respectively.

** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $70 million and $59 million during the first three months of 2015 and 2014, respectively.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the condensed consolidated balance sheet in millions of dollars follow:

Other Assets	January 31 2015		October 31 2014		January 31 2014
Designated as hedging instruments:
Interest rate contracts	$	410	$	266	$	283
Cross-currency interest rate contracts	12		13		15
Total designated	422		279		298

Not designated as hedging instruments:
Interest rate contracts	68		53		46
Foreign exchange contracts	125		18		70
Cross-currency interest rate contracts	10		3		4
Total not designated	203		74		120

Total derivatives	$	625	$	353	$	418

Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	7	$	35	$	95
Total designated	7		35		95

Not designated as hedging instruments:
Interest rate contracts	73		46		49
Foreign exchange contracts	49		29		24
Total not designated	122		75		73

Total derivatives	$	129	$	110	$	168

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

	Expense or OCI	Three Months Ended January 31
	Classification	2015			2014
Fair Value Hedges:
Interest rate contracts	Interest		$	221	$	(33)

Cash Flow Hedges:
Recognized in OCI
(Effective Portion):
Interest rate contracts	OCI (pretax) *		(5)		(2)
Foreign exchange contracts	OCI (pretax) *		1		(3)

Reclassified from OCI
(Effective Portion):
Interest rate contracts	Interest *		(3)		(4)
Foreign exchange contracts	Other operating*		1		(5)

Recognized Directly in Income
(Ineffective Portion)			**		**

Not Designated as Hedges:
Interest rate contracts	Interest *		$	(13)	$	2
Foreign exchange contracts	Cost of sales		45		56
Foreign exchange contracts	Other operating*		234		87
Total not designated			$	266	$	145

* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.

** The amount is not significant.

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 follows:

January 31, 2015	Gross Amounts Recognized		Netting Arrangements		Collateral Received		Net Amount
Derivatives:
Assets	$	625	$	(82)	$	(1)	$	542
Liabilities	129		(82)				47

October 31, 2014	Gross Amounts Recognized		Netting Arrangements		Collateral Received		Net Amount
Derivatives:
Assets	$	353	$	(76)	$	(5)	$	272
Liabilities	110		(76)				34

January 31, 2014	Gross Amounts Recognized		Netting Arrangements		Collateral Received		Net Amount
Derivatives:
Assets	$	418	$	(113)	$	(9)	$	296
Liabilities	168		(113)				55