PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Oct. 30, 2022

PENSION AND OTHER POSTRETIREMENT BENEFITS

Schedule of Components of Net Periodic Pension and OPEB Cost

The components of net periodic pension cost and the assumptions related to the cost consisted of the following in millions of dollars and in percentages:

	2022		2021		2020
Pensions
Service cost	$	349	$	332	$	321
Interest cost		330		276		347
Expected return on plan assets		(726)		(799)		(819)
Amortization of actuarial loss		132		259		256
Amortization of prior service cost		34		12		13
Settlements/curtailments		45		21		25
Net cost	$	164	$	101	$	143
Weighted-average assumptions
Discount rates - service cost		3.0%		2.5%		2.9%
Discount rates - interest cost		2.6%		2.1%		2.7%
Rate of compensation increase		3.7%		3.7%		3.8%
Expected long-term rates of return		5.1%		6.0%		6.4%
Interest crediting rate - U.S. cash balance plans		2.1%		1.7%		2.1%

The components of net periodic OPEB cost and the assumptions related to the cost consisted of the following in millions of dollars and in percentages:

	2022		2021		2020
OPEB
Service cost	$	45	$	48	$	49
Interest cost		99		102		140
Expected return on plan assets		(110)		(77)		(50)
Amortization of actuarial (gain) loss		(18)		27		29
Amortization of prior service credit		(4)		(4)		(4)
Curtailments						34
Net cost	$	12	$	96	$	198
Weighted-average assumptions
Discount rates - service cost		3.6%		3.4%		3.7%
Discount rates - interest cost		2.3%		2.1%		2.7%
Expected long-term rates of return		4.4%		5.4%		5.7%

Schedule of Benefit Plan Obligations, Funded Status and the Assumptions Related to Obligations

The benefit plan obligations, funded status, and the assumptions related to the obligations at October 30, 2022 and October 31, 2021 in millions of dollars follow:

	Pensions				OPEB
	2022		2021		2022		2021
Change in benefit obligations
Beginning of year balance	$	(14,525)	$	(15,021)	$	(4,930)	$	(5,410)
Service cost		(349)		(332)		(45)		(48)
Interest cost		(330)		(276)		(99)		(102)
Actuarial gain		4,122		373		1,492		381
Prior service cost		(505)				(12)
Benefits paid		757		755		282		290
Health care subsidies						(33)		(29)
Settlements/curtailments				1
Foreign exchange and other		301		(25)		4		(12)
End of year balance		(10,529)		(14,525)		(3,341)		(4,930)
Change in plan assets (fair value)
Beginning of year balance		17,190		14,574		1,755		1,518
Actual return on plan assets		(3,070)		3,249		(495)		367
Employer contribution		85		101		1,155		157
Benefits paid		(757)		(755)		(282)		(290)
Foreign exchange and other		(229)		21		3		3
End of year balance		13,219		17,190		2,136		1,755
Funded status	$	2,690	$	2,665	$	(1,205)	$	(3,175)
Weighted-average assumptions
Discount rates		5.4%		2.7%		5.6%		2.8%
Rate of compensation increase		3.8%		3.7%
Interest crediting rate - U.S. cash balance plans		4.4%		1.8%

Schedule of Weighted-Average Health Care Cost Trend Rates

The weighted-average annual rates of increase in the per capita cost of covered health care benefits (the health care cost trend rates) for medical and prescription drug claims for pre- and post-65 age groups used to determine the October 30, 2022 and October 31, 2021 accumulated postretirement benefit obligations were as follows:

	2022	2021
Initial year	0.0% (2022 to 2023)	2.1% (2021 to 2022)
Second year	12.6% (2023 to 2024)	8.4% (2022 to 2023)
Ultimate	4.7% (2032 to 2033)	4.7% (2028 to 2029)

A decrease in Medicare Advantage premiums impacted the weighted-average annual rates of increase for the initial years in 2022 and 2021.

Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income - Pretax

The amounts recognized at October 30, 2022 and October 31, 2021 in millions of dollars consisted of the following:

	Pensions				OPEB
	2022		2021		2022		2021
Amounts recognized in balance sheet
Noncurrent asset	$	3,223	$	3,601	$	507
Current liability		(42)		(51)		(39)	$	(36)
Noncurrent liability		(491)		(885)		(1,673)		(3,139)
Total	$	2,690	$	2,665	$	(1,205)	$	(3,175)
Amounts recognized in accumulated other comprehensive income – pretax
Net actuarial (gain) loss	$	926	$	1,376	$	(820)	$	49
Prior service cost (credit)		446		9		(4)		(20)
Total	$	1,372	$	1,385	$	(824)	$	29

Schedule of Information Related to Pension Plans Benefit Obligations

Information related to pension plans benefit obligations at October 30, 2022 and October 31, 2021 in millions of dollars follows:

	2022		2021
Total accumulated benefit obligations for all plans	$	10,068	$	13,787
Plans with accumulated benefit obligation exceeding fair value of plan assets:
Accumulated benefit obligations		1,116		2,012
Fair value of plan assets		672		1,207
Plans with projected benefit obligation exceeding fair value of plan assets:
Projected benefit obligations		1,225		2,163
Fair value of plan assets		692		1,227

Schedule of Future Benefits Expected to be Paid from the Benefit Plans

The expected future benefit payments at October 30, 2022 were as follows in millions of dollars:

	Pensions		OPEB*
2023	$	739	$	246
2024		730		248
2025		729		250
2026		728		252
2027		721		253
2028 to 2032		3,589		1,274

*       Net of prescription drug group benefit subsidy under Medicare Part D.

Fair Values of Pension Plan and Health Care Assets

The fair values of the pension plan assets at October 30, 2022 follow in millions of dollars:

	Total		Level 1		Level 2
Cash and short-term investments	$	338	$	283	$	55
Equity:
U.S. equity securities		311		290		21
International equity securities and funds		196		195		1
Fixed Income:
Government and agency securities		1,296		1,053		243
Corporate debt securities		4,587				4,587
Mortgage-backed securities		213				213
Other investments		49		31		18
Derivative contracts - assets		92		54		38
Derivative contracts - liabilities		(209)		(106)		(103)
Receivables, prepaids, and payables		(207)		(207)
Securities lending collateral		684				684
Securities lending liability		(684)				(684)
Securities sold short		(64)		(58)		(6)
Total of Level 1 and Level 2 assets		6,602	$	1,535	$	5,067
Investments at net asset value:
Short-term investments		633
U.S. equity funds		54
International equity funds		125
Fixed income funds		1,736
Real estate funds		592
Hedge funds		569
Private equity		1,322
Venture capital		1,553
Other investments		33
Total net assets	$	13,219

The fair values of the health care assets at October 30, 2022 follow in millions of dollars:

	Total		Level 1		Level 2
Cash and short-term investments	$	79	$	79
Fixed Income:
Government and agency securities		629		597	$	32
Corporate debt securities		516				516
Mortgage-backed securities		83				83
Other		(4)		(7)		3
Securities lending collateral		98				98
Securities lending liability		(98)				(98)
Total of Level 1 and Level 2 assets		1,303	$	669	$	634
Investments at net asset value:
U.S. equity funds		40
International equity funds		22
Fixed income funds		347
Real estate funds		140
Hedge funds		188
Private equity		41
Venture capital		48
Other investments		7
Total net assets	$	2,136

The fair values of the pension plan assets at October 31, 2021 follow in millions of dollars:

	Total		Level 1		Level 2
Cash and short-term investments	$	378	$	355	$	23
Equity:
U.S. equity securities		1,151		1,123		28
International equity securities and funds		951		931		20
Fixed Income:
Government and agency securities		1,475		1,159		316
Corporate debt securities		4,841				4,841
Mortgage-backed securities		144				144
Real estate investment trusts		62		55		7
Derivative contracts - assets		116		37		79
Derivative contracts - liabilities		(75)		(15)		(60)
Receivables, payables, and other		(155)		(177)		22
Securities lending collateral		982		107		875
Securities lending liability		(982)		(107)		(875)
Securities sold short		(139)		(128)		(11)
Total of Level 1 and Level 2 assets		8,749	$	3,340	$	5,409
Investments at net asset value:
Short-term investments		815
U.S. equity funds		796
International equity funds		528
Fixed income funds		1,701
Real estate funds		566
Hedge funds		751
Private equity		1,385
Venture capital		1,537
Other investments		362
Total net assets	$	17,190

The fair values of the health care assets at October 31, 2021 follow in millions of dollars:

	Total		Level 1		Level 2
Cash and short-term investments	$	55	$	55
Equity securities and funds		30		29	$	1
Fixed Income:
Government and agency securities		243		215		28
Corporate debt securities		307				307
Mortgage-backed securities		10				10
Securities lending collateral		64		20		44
Securities lending liability		(64)		(20)		(44)
Securities sold short		(3)		(3)
Total of Level 1 and Level 2 assets		642	$	296	$	346
Investments at net asset value:
Short-term investments		20
U.S. equity funds		619
International equity funds		358
Fixed income funds		18
Real estate funds		42
Hedge funds		13
Private equity		18
Venture capital		20
Other investments		5
Total net assets	$	1,755