DERIVATIVE INSTRUMENTS (Tables)

3 Months Ended

Jan. 29, 2017

Fair Value Hedge Interest Rate Contracts and Underlying Borrowings

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


	Three Months Ended
	January 29		January 31
	2017		2016
Interest rate contracts *	$	(234)	$	75
Borrowings **		236		(75)

* Includes changes in fair values of interest rate contracts excluding net accrued interest income of $26 million and $39 million during the first quarter of 2017 and 2016, respectively.

** Includes adjustments for fair values of hedged borrowings excluding accrued interest expense of $65 million and $67 million during the first quarter of 2017 and 2016, 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:


	January 29		October 30		January 31
Other Assets	2017		2016		2016
Designated as hedging instruments:
Interest rate contracts	$	116	$	268	$	382
Cross-currency interest rate contracts		10		11		15
Total designated		126		279		397

Not designated as hedging instruments:
Interest rate contracts		28		26		55
Foreign exchange contracts		21		60		92
Cross-currency interest rate contracts		14		10		14
Total not designated		63		96		161

Total derivative assets	$	189	$	375	$	558

Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts	$	85	$	10	$	7
Total designated		85		10		7

Not designated as hedging instruments:
Interest rate contracts		17		19		55
Foreign exchange contracts		68		43		24
Total not designated		85		62		79

Total derivative liabilities	$	170	$	72	$	86

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	Three Months Ended
	OCI	January 29		January 31
	Classification	2017		2016
Fair Value Hedges:
Interest rate contracts	Interest	$	(208)	$	114

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

Reclassified from OCI
(Effective Portion):
Interest rate contracts	Interest *				(3)
Foreign exchange contracts	Other operating *		1		2

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

Not Designated as Hedges:
Interest rate contracts	Interest *	$	4	$	(2)
Foreign exchange contracts	Cost of sales		(40)		33
Foreign exchange contracts	Other operating *		(28)		125
Total not designated		$	(64)	$	156

* 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 in millions of dollars follows:


	Gross Amounts		Netting		Collateral
January 29, 2017	Recognized		Arrangements		Received	Net Amount
Assets	$	189	$	(46)		$	143
Liabilities		170		(46)			124


	Gross Amounts		Netting		Collateral
October 30, 2016	Recognized		Arrangements		Received		Net Amount
Assets	$	375	$	(32)	$	(6)	$	337
Liabilities		72		(32)				40


	Gross Amounts		Netting		Collateral
January 31, 2016	Recognized		Arrangements		Received		Net Amount
Assets	$	558	$	(72)	$	(24)	$	462
Liabilities		86		(72)				14