DERIVATIVE INSTRUMENTS

6 Months Ended

Apr. 28, 2024

(18) Derivative Instruments

Fair values of our derivative instruments and the associated notional amounts were as follows. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”


	April 28, 2024						October 29, 2023						April 30, 2023
			Fair Value						Fair Value						Fair Value
	Notional		Assets		Liabilities		Notional		Assets		Liabilities		Notional		Assets		Liabilities
Cash flow hedges:
Interest rate contracts	$	2,700	$	34	$	1	$	1,500	$	45			$	2,250	$	55	$	6

Fair value hedges:
Interest rate contracts		13,664		8		884		12,691			$	970		10,943		49		605

Not designated as hedging instruments:
Interest rate contracts		12,869		112		71		13,853		169		98		11,956		171		91
Foreign exchange contracts		7,582		36		38		8,117		75		54		9,163		91		42
Cross-currency interest rate contracts		211		1		11		176		3		8		163		1		14

The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships were as follows. 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 28, 2024
Short-term borrowings	$	286	$	(7)	$	2,565	$	16
Long-term borrowings		12,434		(879)		7,616		(264)

October 29, 2023
Short-term borrowings					$	1,814	$	15
Long-term borrowings	$	11,660	$	(976)		7,144		(288)

April 30, 2023
Short-term borrowings					$	1,213	$	14
Long-term borrowings	$	10,334	$	(562)		5,657		(132)

The classification and gains (losses), including accrued interest expense, related to derivative instruments on the statements of consolidated income consisted of the following:


	Three Months Ended				Six Months Ended
	April 28		April 30		April 28		April 30
	2024		2023		2024		2023
Fair Value Hedges
Interest rate contracts - Interest expense	$	(448)	$	(10)	$	(104)	$	229

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts - OCI (pretax)	$	26	$	(4)	$	18	$	(5)
Reclassified from OCI:
Interest rate contracts - Interest expense		16		19		27		34

Not Designated as Hedges
Interest rate contracts - Net sales			$	1			$	(6)
Interest rate contracts - Interest expense	$	7		5	$	(2)		(3)
Foreign exchange contracts - Net sales		(2)		(2)		3		(1)
Foreign exchange contracts - Cost of sales		9		59		(21)		64
Foreign exchange contracts - Other operating expenses		46		127		(135)		(15)
Total not designated	$	60	$	190	$	(155)	$	39

Certain of our derivative agreements contain credit support provisions that may require us to post collateral based on the size of the net liability positions and credit ratings. The aggregate fair value of all derivatives with credit-risk-related contingent

features that were in a net liability position at April 28, 2024, October 29, 2023, and April 30, 2023, was $967, $1,076, and $716, respectively. In accordance with the limits established in these agreements, we posted $562, $659, and $308 of cash collateral at April 28, 2024, October 29, 2023, and April 30, 2023, respectively. In addition, we paid $8 of collateral that was outstanding at April 28, 2024, October 29, 2023, and April 30, 2023 to participate in an international futures market to hedge currency exposure, not included in the table below.

Derivatives are recorded without offsetting for netting arrangements or collateral. The impact on the derivative assets and liabilities related to netting arrangements and collateral follows:


	Gross Amounts		Netting
	Recognized		Arrangements		Collateral		Net Amount
April 28, 2024
Assets	$	191	$	(93)			$	98
Liabilities		1,005		(93)	$	(562)		350

October 29, 2023
Assets	$	292	$	(152)			$	140
Liabilities		1,130		(152)	$	(659)		319

April 30, 2023
Assets	$	367	$	(168)	$	(29)	$	170
Liabilities		758		(168)		(308)		282