PENSION AND OTHER POSTRETIREMENT BENEFITS

9 Months Ended

Jul. 28, 2019

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS

(8)  Pension and Other Postretirement Benefits

The Company has several defined benefit pension plans and postretirement benefit (OPEB) plans, primarily health care and life insurance plans, covering its U.S. employees and employees in certain foreign countries.

The worldwide components of net periodic pension cost consisted of the following in millions of dollars:

	Three Months Ended				Nine Months Ended
	July 28		July 29		July 28		July 29
	2019		2018		2019		2018
Service cost	$	65	$	75	$	197	$	223
Interest cost		112		97		334		292
Expected return on plan assets		(200)		(193)		(600)		(581)
Amortization of actuarial loss		35		53		106		168
Amortization of prior service cost		2		3		8		9
Settlements/curtailments		1		1		1		7
Net cost	$	15	$	36	$	46	$	118

The worldwide components of net periodic OPEB cost consisted of the following in millions of dollars:

	Three Months Ended				Nine Months Ended
	July 28		July 29		July 28		July 29
	2019		2018		2019		2018
Service cost	$	11	$	11	$	31	$	33
Interest cost		53		47		160		143
Expected return on plan assets		(8)		(5)		(26)		(16)
Amortization of actuarial loss		4		16		12		47
Amortization of prior service credit		(19)		(19)		(55)		(57)
Net cost	$	41	$	50	$	122	$	150

The components of net periodic pension and OPEB costs excluding the service cost component are included in the line item other operating expenses in the statement of consolidated income.

In August 2019, a committee of the Company’s Board of Directors approved a voluntary contribution to a U.S. OPEB plan for up to $500 million. During the first nine months of 2019, the Company contributed approximately $47 million to its pension plans and $97 million to its OPEB plans. The Company presently

anticipates contributing an additional $20 million to its pension plans and $340 million to its OPEB plans during the remainder of fiscal year 2019. The anticipated OPEB contributions include a voluntary $300 million to a U.S. plan, which will increase plan assets. The pension and remaining OPEB contributions exceeding the voluntary amounts primarily include direct benefit payments from Company funds.