PENSION AND OTHER POSTRETIREMENT BENEFITS

3 Months Ended

Jan. 31, 2021

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
	January 31		February 2
	2021		2020
Service cost	$	85	$	84
Interest cost		69		87
Expected return on plan assets		(200)		(205)
Amortization of actuarial loss		63		62
Amortization of prior service cost		3		3
Settlements		13		3
Net cost	$	33	$	34

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

	Three Months Ended
	January 31		February 2
	2021		2020
Service cost	$	12	$	12
Interest cost		26		37
Expected return on plan assets		(19)		(12)
Amortization of actuarial loss		7		7
Amortization of prior service credit		(1)		(1)
Curtailments				21
Net cost	$	25	$	64

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 the first quarter of 2020, the Company remeasured the U.S. salary OPEB health care plans due to the U.S. voluntary employee-separation program (see Note 20), which resulted in a $21 million curtailment loss.

During the first three months of 2021, the Company contributed approximately $42 million to its pension plans and $57 million to its OPEB plans. The Company presently anticipates contributing an additional $58 million to its pension plans and $789 million to its OPEB plans during the remainder of fiscal year 2021. The anticipated OPEB contributions include a voluntary $700 million in the fourth quarter to a U.S. plan, which will increase plan assets. These pension and remaining OPEB contributions primarily include direct benefit payments from Company funds.