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DERIVATIVE INSTRUMENTS (Tables)

12 Months Ended

Nov. 01, 2020

DERIVATIVE INSTRUMENTS

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

The amounts recorded, at November 1, 2020 and November 3, 2019, in the consolidated balance sheet related to borrowings designated in fair value hedging relationships in millions of dollars follow:


					Cumulative Increase (Decrease) of
					Fair Value Hedging Adjustments
		Carrying			Included in the Carrying Amount
		Amount of			Active
		Hedged			Hedging			Discontinued
		Item			Relationships			Relationships			Total
2020
Long-term borrowings due within one year*		$	155		$	2		$	3		$	5
Long-term borrowings			7,725			543			122			665
2019
Long-term borrowings due within one year*		$	412		$	(1)		$	(4)		$	(5)
Long-term borrowings			8,532			295			(32)			263

* Presented in short-term borrowings.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the consolidated balance sheet at November 1, 2020 and November 3, 2019 in millions of dollars follow:


		2020			2019
Other Assets
Designated as hedging instruments:
Interest rate contracts		$	586		$	332
Total designated			586			332
Not designated as hedging instruments:
Interest rate contracts			83			31
Foreign exchange contracts			48			20
Cross-currency interest rate contracts			8			1
Total not designated			139			52
Total derivative assets		$	725		$	384
Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts		$	14		$	28
Total designated			14			28
Not designated as hedging instruments:
Interest rate contracts			74			37
Foreign exchange contracts			26			71
Cross-currency interest rate contracts			1			3
Total not designated			101			111
Total derivative liabilities		$	115		$	139

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:


		2020			2019			2018
Fair Value Hedges
Interest rate contracts – Interest expense		$	496		$	589		$	(283)

Cash Flow Hedges
Recognized in OCI
Interest rate contracts – OCI (pretax)*			(18)			(92)			17
Foreign exchange contracts – OCI (pretax)*									2

Reclassified from OCI
Interest rate contracts – Interest expense*			(21)			5			5
Foreign exchange contracts – Other expense*									1

Not Designated as Hedges
Interest rate contracts – Net sales		$	(23)		$	(23)		$	3
Interest rate contracts – Interest expense*			(2)			(32)			(4)
Foreign exchange contracts – Cost of sales			93			(18)			(24)
Foreign exchange contracts – Other expense*			122			97			195
Total not designated		$	190		$	24		$	170

* 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

The impact on the derivative assets and liabilities related to netting arrangements and collateral at November 1, 2020 and November 3, 2019 in millions of dollars follows:


		Gross Amounts			Netting						Net
		Recognized			Arrangements			Collateral			Amount
2020
Assets		$	725		$	(93)		$	(274)		$	358
Liabilities			115			(93)						22
2019
Assets		$	384		$	(70)					$	314
Liabilities			139			(70)						69