PENSION AND OTHER POSTRETIREMENT BENEFITS

6 Months Ended

May 02, 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				Six Months Ended
	May 2		May 3		May 2		May 3
	2021		2020		2021		2020
Service cost	$	83	$	77	$	168	$	161
Interest cost		69		87		138		174
Expected return on plan assets		(200)		(204)		(400)		(409)
Amortization of actuarial loss		65		62		128		124
Amortization of prior service cost		3		3		6		6
Settlements		5		3		18		6
Net cost	$	25	$	28	$	58	$	62

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

	Three Months Ended				Six Months Ended
	May 2		May 3		May 2		May 3
	2021		2020		2021		2020
Service cost	$	12	$	12	$	24	$	24
Interest cost		25		35		51		72
Expected return on plan assets		(20)		(12)		(39)		(24)
Amortization of actuarial loss		7		7		14		14
Amortization of prior service credit		(1)		(1)		(2)		(2)
Curtailments								21
Net cost	$	23	$	41	$	48	$	105

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 22), which resulted in a $21 million curtailment loss.

During the first six months of 2021, the Company contributed approximately $68 million to its pension plans and $85 million to its OPEB plans. The Company presently anticipates contributing an additional $33 million to its pension plans and $757 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. The pension and OPEB contributions exceeding the voluntary amount primarily include direct benefit payments from Company funds.