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DERIVATIVE INSTRUMENTS (Tables)

6 Months Ended

Apr. 30, 2023

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. Fair value hedging adjustments are included in the carrying amount of the hedged item.


		Active Hedging Relationships						Discontinued Hedging Relationships
		Carrying Amount			Cumulative Fair Value			Carrying Amount of			Cumulative Fair Value
		of Hedged Item			Hedging Amount			Formerly Hedged Item			Hedging Amount
April 30, 2023
Short-term borrowings								$	1,213		$	14
Long-term borrowings		$	10,334		$	(562)			5,657			(132)

October 30, 2022
Short-term borrowings								$	2,515		$	15
Long-term borrowings		$	9,060		$	(1,006)			5,520			(19)

May 1, 2022
Short-term borrowings		$	178		$	1		$	2,607		$	7
Long-term borrowings			7,827			(613)			5,120			106

Fair Value of Derivative Instruments in Consolidated Balance Sheet

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


		April 30			October 30			May 1
Other Assets		2023			2022			2022
Designated as hedging instruments:
Interest rate contracts		$	104		$	87		$	63

Not designated as hedging instruments:
Interest rate contracts			171			212			180
Foreign exchange contracts			91			66			125
Cross-currency interest rate contracts			1			8			39
Total not designated			263			286			344

Total derivative assets		$	367		$	373		$	407

Accounts Payable and Accrued Expenses
Designated as hedging instruments:
Interest rate contracts		$	611		$	1,004		$	591

Not designated as hedging instruments:
Interest rate contracts			91			107			75
Foreign exchange contracts			42			118			114
Cross-currency interest rate contracts			14			2
Total not designated			147			227			189

Total derivative liabilities		$	758		$	1,231		$	780

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


		Three Months Ended						Six Months Ended
		April 30			May 1			April 30			May 1
		2023			2022			2023			2022
Fair Value Hedges:
Interest rate contracts - Interest expense		$	(10)		$	(514)		$	229		$	(656)

Cash Flow Hedges:
Recognized in OCI
Interest rate contracts - OCI (pretax)		$	(4)		$	35		$	(5)		$	50
Reclassified from OCI
Interest rate contracts - Interest expense			19			(1)			34			(3)

Not Designated as Hedges:
Interest rate contracts - Net sales		$	1		$	31		$	(6)		$	44
Interest rate contracts - Interest expense *			5			61			(3)			59
Foreign exchange contracts - Net sales			(2)			(1)			(1)			(1)
Foreign exchange contracts - Cost of sales			59			(79)			64			(80)
Foreign exchange contracts - Other operating expenses *			127			26			(15)			173
Total not designated		$	190		$	38		$	39		$	195

* 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 in millions of dollars follows:


		Gross Amounts			Netting
April 30, 2023		Recognized			Arrangements			Collateral			Net Amount
Assets		$	367		$	(168)		$	(29)		$	170
Liabilities			758			(168)			(308)			282


		Gross Amounts			Netting
October 30, 2022		Recognized			Arrangements			Collateral			Net Amount
Assets		$	373		$	(179)		$	(54)		$	140
Liabilities			1,231			(179)			(701)			351


		Gross Amounts			Netting
May 1, 2022		Recognized			Arrangements			Collateral			Net Amount
Assets		$	407		$	(110)					$	297
Liabilities			780			(110)		$	(254)			416