DERIVATIVE INSTRUMENTS

9 Months Ended

Jul. 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.”


	July 28, 2024						October 29, 2023						July 30, 2023
			Fair Value						Fair Value						Fair Value
	Notional		Assets		Liabilities		Notional		Assets		Liabilities		Notional		Assets		Liabilities
Cash flow hedges:
Interest rate contracts	$	3,475	$	14	$	18	$	1,500	$	45			$	1,500	$	48	$	3

Fair value hedges:
Interest rate contracts		15,165		119		486		12,691			$	970		12,160		4		729
Cross-currency interest rate contracts		975		16

Not designated as hedging instruments:
Interest rate contracts		13,656		103		59		13,853		169		98		13,233		221		109
Foreign exchange contracts		7,529		99		16		8,117		75		54		8,630		51		82
Cross-currency interest rate contracts		190		10		3		176		3		8		155				25

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
July 28, 2024
Short-term borrowings	$	286	$	(4)	$	1,458	$	9
Long-term borrowings		15,386		(394)		8,414		(264)

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

July 30, 2023
Short-term borrowings					$	2,324	$	25
Long-term borrowings	$	11,379	$	(728)		6,319		(265)

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				Nine Months Ended
	July 28		July 30		July 28		July 30
	2024		2023		2024		2023
Fair Value Hedges
Interest rate contracts – Interest expense*	$	373	$	(375)	$	269	$	(146)

Cash Flow Hedges
Recognized in OCI:
Interest rate contracts – OCI (pretax)	$	(15)	$	24	$	3	$	19
Reclassified from OCI:
Interest rate contracts – Interest expense		22		18		49		52

Not Designated as Hedges
Interest rate contracts – Net sales			$	6
Interest rate contracts – Interest expense*	$	4		48	$	2	$	45
Foreign exchange contracts – Net sales		(3)		3				2
Foreign exchange contracts – Cost of sales		36		(78)		15		(14)
Foreign exchange contracts – Other operating expenses*		17		(142)		(118)		(157)
Total not designated	$	54	$	(163)	$	(101)	$	(124)

* Includes interest and foreign exchange gains (losses) from cross-currency interest rate contracts.

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 July 28, 2024, October 29, 2023, and July 30, 2023, was $566, $1,076, and $865, respectively. In accordance with the limits established in these agreements, we posted $269, $659, and $435 of cash collateral at July 28, 2024, October 29, 2023, and July 30, 2023, respectively. In addition, we paid $8 of collateral that was outstanding at July 28, 2024, October 29, 2023, and July 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
July 28, 2024
Assets	$	361	$	(154)			$	207
Liabilities		582		(154)	$	(269)		159

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

July 30, 2023
Assets	$	324	$	(160)	$	(28)	$	136
Liabilities		948		(160)		(435)		353