PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

Apr. 30, 2023

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS

(6)  Pension and Other Postretirement Employee Benefits

The Company has several defined benefit pension plans and other postretirement employee benefit (OPEB) plans, primarily health care and life insurance plans, covering its U.S. employees and employees in certain foreign countries. The components of net periodic pension and OPEB (benefit) cost 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
Pension
Service cost	$	64	$	94	$	124	$	179
Interest cost		134		80		267		157
Expected return on plan assets		(220)		(180)		(432)		(362)
Amortization of actuarial (gain) loss		(6)		37		(11)		76
Amortization of prior service cost		10		9		20		16
Settlements		36		7		36		8
Net cost	$	18	$	47	$	4	$	74
OPEB
Service cost	$	6	$	11	$	13	$	23
Interest cost		45		23		88		49
Expected return on plan assets		(29)		(27)		(58)		(55)
Amortization of actuarial gain		(14)		(10)		(30)		(9)
Amortization of prior service credit				(1)		(1)		(2)
Net (benefit) cost	$	8	$	(4)	$	12	$	6

The reduction in the 2023 pension net cost is due to increases in the expected long-term return rates on plan assets and increases in discount rates. The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses” in the statements of consolidated income.

During the second quarter of 2023, an international pension plan paid a premium to an insurance company to irrevocably transfer the benefit obligations and administration for the majority of its retired participants. The transaction did not impact the benefits to be received by the retired participants. In connection with the transaction, the Company recognized a one-time, non-cash, pre-tax pension settlement charge of $36 million in the second quarter of 2023 related to the accelerated recognition of actuarial losses included within “Accumulated other comprehensive income (loss)” in the statements of changes in consolidated stockholders’ equity.