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Postretirement Benefits
 6 Months Ended
Apr. 30, 2021
Retirement Benefits [Abstract]  
Postretirement Benefits Postretirement Benefits
Defined Benefit Plans
We provide postretirement benefits to a substantial portion of our employees and retirees. Costs associated with postretirement benefits include pension and postretirement health care expenses for employees, retirees, surviving spouses and dependents.
Generally, the pension plans are non-contributory. Our policy is to fund the pension plans in accordance with applicable U.S. and Canadian government regulations and to make additional contributions from time to time. For the six months ended April 30, 2021 and 2020, we contributed $191 million and $30 million, respectively, to our pension plans to meet regulatory funding requirements. The 2021 contributions include the $157 million of contributions we deferred in 2020 under the provisions of the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"). We expect to contribute approximately $2 million to our pension plans during the remainder of 2021, as our previously expected remaining 2021 contributions of $129 million have been reduced under funding relief provisions in the American Rescue Plan Act ("ARPA"), enacted March 11, 2021.
We primarily fund other post-employment benefits ("OPEB") obligations, such as retiree medical, in accordance with the 1993 Settlement Agreement (the "1993 Settlement Agreement"), which requires us to fund a portion of the plans' annual service cost to a retiree benefit trust (the "Base Trust"). The 1993 Settlement Agreement resolved a class action lawsuit originally filed in 1992 regarding the restructuring of our then applicable retiree health care and life insurance benefits. Contributions for the six months ended April 30, 2021, as well as anticipated contributions for the remainder of 2021, are not material.
Components of Net Periodic Benefit Expense
Net periodic benefit expense included in our Consolidated Statements of Operations for the three and six months ended April 30, 2021 and 2020 are comprised of the following:
Three Months Ended April 30,Six Months Ended April 30,
 Pension BenefitsHealth and Life
Insurance Benefits		Pension BenefitsHealth and Life
Insurance Benefits
(in millions)20212020202120202021202020212020
Service cost for benefits earned during the period$2 $2 $1 $1 $4 $4 $1 $2 
Interest on obligation13 21 2 7 27 42 5 14 
Amortization of cumulative loss (gain)27 24 (10)— 54 49 (20)— 
Contractual termination benefits— — — — 9 — 3 — 
Premiums on pension insurance2 3 — — 5 6 — — 
Expected return on assets(33)(36)(4)(5)(66)(72)(8)(10)
Net periodic benefit expense (income)$11 $14 $(11)$3 $33 $29 $(19)$6 
Contractual termination benefits are recorded in our Truck segment within Restructuring charges in our Consolidated Statements of Operations. All other components of net periodic benefit cost other than service cost are included in Other expense, net in our Consolidated Statements of Operations.
In the first quarter of 2021, we committed to a plan to cease all operations at the Melrose Park Facility by November 2021. As a result, for the six months ended April 30, 2021, we recognized $9 million of pension and $3 million of OPEB contractual termination benefits charges. These charges were recorded in our Truck segment within Restructuring charges in our Consolidated Statements of Operations. See Note 3, Restructuring, Impairments and Divestitures for further discussion. A pension curtailment gain of $2 million, an OPEB curtailment loss of $7 million and net actuarial gains of $43 million resulting from pension and OPEB remeasurements in connection with our Melrose Park Facility announcement were recognized as a component of Accumulated other comprehensive loss for the six months ended April 30, 2021.
Defined Contribution Plans and Other Contractual Arrangements
Our defined contribution plans cover a substantial portion of domestic salaried employees and certain domestic represented employees. The defined contribution plans contain a 401(k) feature and provide most participants with a matching contribution from the Company. In fiscal 2020, we implemented cash conservation initiatives, including a delay in certain 401(k) Company matching contributions until 2021. Prior to this, the matching contributions for non-represented employees were deposited monthly. Effective January 2021, the matching contributions went back to being deposited on a monthly basis. Many participants covered by the plans receive annual Company contributions to their retirement accounts based on an age-weighted percentage of the participant's eligible compensation for the calendar year. Defined contribution expense pursuant to these plans was $9 million and $16 million for the three and six months ended April 30, 2021, respectively, and $11 million and $19 million for the three and six months ended April 30, 2020, respectively.
In accordance with the 1993 Settlement Agreement, an independent Retiree Supplemental Benefit Trust (the "Supplemental Trust") was established. The Supplemental Trust, and the benefits it provides to certain retirees pursuant to a certain Retiree Supplemental Benefit Program ("Supplemental Benefit Program") under the 1993 Settlement Agreement, is not part of our consolidated financial statements.
Our contingent profit sharing obligations under a certain Supplemental Benefit Trust Profit Sharing Plan will continue until certain funding targets defined by the 1993 Settlement Agreement are met. As noted within the Profit Sharing Disputes section of Note 12, Commitments and Contingencies, the Company requested the Court reform the 1993 Settlement Agreement to provide clarity regarding certain “Profit Sharing Cessation Date” provisions, which relate to the timing and impact of the cessation of the Company’s Profit Sharing Plan contributions. We are currently unable to determine whether we have achieved the specific funding targets that may result in profit sharing cessation. Upon profit sharing cessation, the Company may have ongoing responsibilities related to amortized actuarial and investment losses. For the three and six months ended April 30, 2021, we recorded $31 million in profit sharing accruals based on the operating performance of the entities that are included in the determination of qualifying profits. For the three and six months ended April 30, 2020, we did not record any profit sharing accruals. For more information on an arbitration regarding the Supplemental Benefit Trust Profit Sharing Plan, which was concluded on February 5, 2021, see Note 12, Commitments and Contingencies.