Pension and Other Postretirement Benefits

12 Months Ended

Oct. 31, 2016

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Note 13. Pension and Other Postretirement Benefits

The Company is a participating employer in certain Deere & Company sponsored defined benefit pension plans for employees in the U.S. and certain defined benefit pension plans outside the U.S. These pension plans provide for benefits that are based primarily on years of service and employee compensation. Pension expense is actuarially determined based on the Company’s employees included in the plan. The Company’s pension expense amounted to $5.7 million in 2016, $9.7 million in 2015 and $6.4 million in 2014. The accumulated benefit obligation and plan net assets for the employees of the Company are not determined separately from Deere & Company. The Company generally provides defined benefit health care and life insurance plans for retired employees in the U.S. as a participating employer in Deere & Company’s sponsored plans. Health care and life insurance benefits expense is actuarially determined based on the Company’s employees included in the plans and amounted to $2.4 million in 2016, $3.7 million in 2015 and $8.4 million in 2014. Further disclosure for these plans is included in the notes to the Deere & Company 2016 Annual Report on Form 10-K.

The Company is a participating employer in certain Deere & Company sponsored defined contribution plans related to employee investment and savings plans primarily in the U.S. The Company’s contributions and costs under these plans were $12.2 million in 2016, $12.4 million in 2015 and $12.5 million in 2014. The contribution rate varies primarily based on Deere & Company’s performance in the prior year and employee participation in the plans.