Pension and Other Postretirement Benefits

12 Months Ended

Oct. 30, 2022

Pension and Other Postretirement Benefits

Pension and Other Postretirement Benefits

Note 12. 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 was not significant in 2022, 2021, or 2020. The accumulated benefit obligation and plan net assets for the employees of the Company are not determined separately from Deere & Company. The Company’s U.S. salaried pension plan will be closed to new entrants effective January 1, 2023. Certain participants will have the opportunity to make a one-time election in 2023 to freeze their defined benefit pension plan benefit for an enhanced defined contribution benefit.

The Company provides defined benefit health care and life insurance plans for certain 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 $6.0 million in 2022, $6.1 million in 2021, and $12.3 million in 2020. The decrease in 2021 from 2020 was primarily due to curtailment losses of $5.5 million in 2020 related to voluntary employee-separation programs (see Note 21). Further disclosure for these plans is included in the notes to the Deere & Company Annual Report on Form 10-K for the year ended October 30, 2022 (the “Deere & Company 2022 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 $13.8 million in 2022, $11.8 million in 2021, and $10.7 million in 2020. The contribution rate varies primarily based on Deere & Company’s performance in the prior year and employee participation in the plans.