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DERIVATIVE INSTRUMENTS (Tables)

9 Months Ended

Aug. 01, 2021

DERIVATIVE INSTRUMENTS

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

The amounts recorded in the consolidated balance sheet related to borrowings designated in fair value hedging relationships were as follows in millions of dollars:


					Cumulative Increase (Decrease) of Fair
					Value Hedging Adjustments Included in
					the Carrying Amount
		Carrying			Active
		Amount of			Hedging			Discontinued
		Hedged Item			Relationships			Relationships			Total
August 1, 2021
Long-term borrowings due within one year		$	188		$	4		$	(1)		$	3
Long-term borrowings			8,888			263			190			453

November 1, 2020
Long-term borrowings due within one year		$	155		$	2		$	3		$	5
Long-term borrowings			7,725			543			122			665

August 2, 2020
Long-term borrowings due within one year		$	480		$	6		$	2		$	8
Long-term borrowings			9,140			754			40			794

Long-term borrowings due within one year are presented in short-term borrowings.

Fair Value of Derivative Instruments in Consolidated Balance Sheet

Fair values of derivative instruments in the condensed consolidated balance sheet were as follows in millions of dollars:


		August 1			November 1			August 2
Other Assets		2021			2020			2020
Designated as hedging instruments:
Interest rate contracts		$	332		$	586		$	806

Not designated as hedging instruments:
Interest rate contracts			57			83			89
Foreign exchange contracts			41			48			57
Cross-currency interest rate contracts			2			8			9
Total not designated			100			139			155

Total derivative assets		$	432		$	725		$	961

Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts		$	40		$	14		$	24

Not designated as hedging instruments:
Interest rate contracts			43			74			91
Foreign exchange contracts			67			26			55
Cross-currency interest rate contracts			2			1
Total not designated			112			101			146

Total derivative liabilities		$	152		$	115		$	170

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:


		Three Months Ended						Nine Months Ended
		August 1			August 2			August 1			August 2
		2021			2020			2021			2020
Fair Value Hedges:
Interest rate contracts - Interest expense		$	146		$	78		$	(79)		$	589

Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)			(1)			(1)			(1)			(18)

Reclassified from OCI
Interest rate contracts - Interest expense			(3)			(7)			(11)			(13)

Not Designated as Hedges:
Interest rate contracts - Net sales		$	(2)		$	(2)		$	3		$	(26)
Interest rate contracts - Interest expense *			(2)			(1)			(6)			2
Foreign exchange contracts - Cost of sales			(7)			(28)			(107)			64
Foreign exchange contracts - Other operating expenses *			(5)			(49)			(209)			125
Total not designated		$	(16)		$	(80)		$	(319)		$	165

* 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

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 was as follows in millions of dollars:


		Gross Amounts			Netting
August 1, 2021		Recognized			Arrangements			Collateral			Net Amount
Assets		$	432		$	(94)		$	(88)		$	250
Liabilities			152			(94)			(2)			56


		Gross Amounts			Netting
November 1, 2020		Recognized			Arrangements			Collateral			Net Amount
Assets		$	725		$	(93)		$	(274)		$	358
Liabilities			115			(93)						22


		Gross Amounts			Netting
August 2, 2020		Recognized			Arrangements			Collateral			Net Amount
Assets		$	961		$	(120)		$	(332)		$	509
Liabilities			170			(120)						50