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DERIVATIVE INSTRUMENTS | 6 Months Ended
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Apr. 27, 2025
DERIVATIVE INSTRUMENTS |
DERIVATIVE INSTRUMENTS | (18) Derivative Instruments Fair values of our derivative instruments and the associated notional amounts are presented below. Assets are recorded in “Other assets,” while liabilities are recorded in “Accounts payable and accrued expenses.”
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | April 27, 2025 | ​ | October 27, 2024 | ​ | April 28, 2024 |
​ | ​ | ​ | ​ | Fair Value | ​ | ​ | ​ | Fair Value | ​ | ​ | ​ | Fair Value |
​ | ​ | Notional | ​ | Assets | ​ | Liabilities | ​ | Notional | ​ | Assets | ​ | Liabilities | ​ | Notional | ​ | Assets | ​ | Liabilities |
Cash flow hedges: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | $ | 2,975 | ​ | ​ | ​ | ​ | $ | 29 |  | $ | 2,875 | ​ | $ | 3 | ​ | $ | 20 |  | $ | 2,700 | ​ | $ | 34 | ​ | $ | 1 | ​
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Fair value hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts | ​ | ​ | 13,608 | ​ | $ | 169 | ​ | ​ | 372 | ​ | ​ | 15,864 | ​ | ​ | 115 | ​ | ​ | 467 | ​ | ​ | 13,664 | ​ | ​ | 8 | ​ | ​ | 884 | ​
Cross-currency interest rate contracts | ​ | ​ | 975 | ​ | ​ | 103 | ​ | ​ | ​ | ​ | ​ | 975 | ​ | ​ | 31 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net investment hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cross-currency interest rate contracts | ​ | ​ | 1,131 | ​ | ​ | ​ | ​ | ​ | 4 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Not designated as hedging instruments: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts | ​ | ​ | 14,254 | ​ | ​ | 112 | ​ | ​ | 100 | ​ | ​ | 12,518 | ​ | ​ | 97 | ​ | ​ | 75 | ​ | ​ | 12,869 | ​ | ​ | 112 | ​ | ​ | 71 | ​
Foreign exchange contracts | ​ | ​ | 8,078 | ​ | ​ | 42 | ​ | ​ | 107 | ​ | ​ | 7,533 | ​ | ​ | 95 | ​ | ​ | 20 | ​ | ​ | 7,582 | ​ |  | 36 | ​ |  | 38 | ​
Cross-currency interest rate contracts | ​ | ​ | 141 | ​ | ​ | 8 | ​ | ​ | 2 | ​ | ​ | 158 | ​ | ​ | 16 | ​ | ​ | ​ | ​ | ​ | 211 | ​ |  | 1 | ​ |  | 11 | ​
​ The amounts recorded in the consolidated balance sheets related to borrowings designated in fair value hedging relationships are presented in the table below. Fair value hedging adjustments are included in the carrying amount of the hedged item. The carrying amount of the hedged item and formerly hedged item includes long-term borrowings of $399, $598, and $598 at April 27, 2025, October 27, 2024, and April 28, 2024, respectively, that are in active hedging relationships and also had discontinued hedging relationships.
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 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 27, 2025 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Short-term borrowings | ​ | $ | 107 | ​ | $ | (1) | ​ | $ | 1,212 | ​ | $ | (12) | ​
Long-term borrowings | ​ | ​ | 14,306 | ​ | ​ | (158) | ​ | ​ | 10,533 | ​ | ​ | (141) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
October 27, 2024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Short-term borrowings | ​ | $ | 287 | ​ | $ | (1) | ​ | $ | 1,782 | ​ | $ | 7 | ​
Long-term borrowings | ​ | ​ | 16,125 | ​ | ​ | (347) | ​ | ​ | 8,626 | ​ | ​ | (228) | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
April 28, 2024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Short-term borrowings | ​ | $ | 286 | ​ | $ | (7) | ​ | $ | 2,565 | ​ | $ | 16 | ​
Long-term borrowings | ​ | ​ | 12,434 | ​ | ​ | (879) | ​ | ​ | 7,616 | ​ | ​ | (264) | ​
​ 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 27 | ​ | April 28 | ​ | April 27 | ​ | April 28 |
​ | ​ | 2025 | ​ | 2024 | ​ | 2025 | ​ | 2024 |
Fair value hedges: |  |  |  |  |  |  |  |  |  |  |  |  |
Interest rate contracts – Interest expense |  | $ | 435 | ​ | $ | (448) |  | $ | 92 | ​ | $ | (104) | ​
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Cash flow hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Recognized in OCI: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts – OCI (pretax) | ​ | $ | (11) | ​ | $ | 26 | ​ | $ | (4) | ​ | $ | 18 | ​
Reclassified from OCI: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts – Interest expense | ​ | ​ | ​ | ​ |  | 16 | ​ | ​ | 8 | ​ |  | 27 | ​
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net investment hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts – Interest expense | ​ | $ | 1 | ​ | ​ | ​ | ​ | $ | 1 | ​ | ​ | ​ | ​
Recognized in OCI: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts – OCI (pretax) | ​ | ​ | (4) | ​ | ​ | ​ | ​ | ​ | (4) | ​ | ​ | ​ | ​
| ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Not designated as hedges: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Interest rate contracts – Interest expense |  | $ | (12) | ​ | $ | 7 |  | $ | (16) | ​ | $ | (2) | ​
Foreign exchange contracts – Net sales | ​ | ​ | 4 | ​ | ​ | (2) | ​ | ​ | (3) | ​ | ​ | 3 | ​
Foreign exchange contracts – Cost of sales | ​ | ​ | (7) | ​ |  | 9 | ​ | ​ | 28 | ​ | ​ | (21) | ​
Foreign exchange contracts – Other operating expenses | ​ | ​ | (118) | ​ |  | 46 | ​ | ​ | 90 | ​ |  | (135) | ​
Total not designated |  | $ | (133) | ​ | $ | 60 |  | $ | 99 | ​ | $ | (155) | ​
​ In April 2025, we entered into a cross-currency interest rate swap as a designated net investment hedge to reduce the foreign currency exposure from investments in foreign subsidiaries. Changes in fair value of the derivative attributable to changes in the spot rate are recorded in “Cumulative translation adjustment” within “Other comprehensive income” (OCI) to offset changes in the value of the net investments being hedged. Effectiveness is assessed using the spot method. The periodic cash settlement of the pay-fixed rate, receive-fixed rate cross-currency swap is recorded in “Interest expense.” 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 27, 2025, October 27, 2024, and April 28, 2024, was $507, $562, and $967, respectively. In accordance with the limits established in these agreements, we posted $221, $245, and $562 of cash collateral at April 27, 2025, October 27, 2024, and April 28, 2024, respectively. In addition, we paid $8 of collateral that was outstanding at April 27, 2025, October 27, 2024, and April 28, 2024 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 27, 2025 |  |  |  |  |  |  |  |  |  |  |  |  | ​
Assets |  | $ | 434 |  | $ | (166) |  | $ | (2) |  | $ | 266 | ​
Liabilities | ​ | ​ | 614 | ​ | ​ | (166) | ​ | ​ | (221) | ​ | ​ | 227 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
October 27, 2024 |  | ​ |  | ​ |  | ​ |  | ​ |
Assets | ​ | $ | 357 |  | $ | (142) |  | ​ | ​ |  | $ | 215 | ​
Liabilities | ​ | ​ | 582 | ​ |  | (142) | ​ | $ | (246) | ​ | ​ | 194 | ​
​ |  | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
April 28, 2024 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ |
Assets | ​ | $ | 191 |  | $ | (93) |  | ​ | ​ | ​ | $ | 98 | ​
Liabilities | ​ |  | 1,005 | ​ | ​ | (93) | ​ | $ | (562) | ​ |  | 350 | ​
​

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