PENSION AND OTHER POSTRETIREMENT BENEFITS

9 Months Ended

Jul. 30, 2023

PENSION AND OTHER POSTRETIREMENT BENEFITS

PENSION AND OTHER POSTRETIREMENT BENEFITS

(6)  Pension and Other Postretirement Employee Benefits

The Company has several defined benefit pension plans and other postretirement employee benefit (OPEB) plans, primarily health care and life insurance plans, covering its U.S. employees and employees in certain foreign countries. The components of net periodic pension and OPEB (benefit) cost consisted of the following in millions of dollars:

	Three Months Ended				Nine Months Ended
	July 30		July 31		July 30		July 31
	2023		2022		2023		2022
Pension
Service cost	$	62	$	86	$	186	$	265
Interest cost		133		85		400		242
Expected return on plan assets		(223)		(182)		(655)		(544)
Amortization of actuarial (gain) loss		(5)		31		(16)		107
Amortization of prior service cost		10		9		30		25
Settlements/curtailment				36		36		44
Net (benefit) cost	$	(23)	$	65	$	(19)	$	139
OPEB
Service cost	$	7	$	11	$	20	$	34
Interest cost		44		25		132		74
Expected return on plan assets		(29)		(28)		(87)		(83)
Amortization of actuarial gain		(15)		(4)		(45)		(13)
Amortization of prior service credit		(1)		(1)		(2)		(3)
Net cost	$	6	$	3	$	18	$	9

The reduction in the 2023 pension net cost is due to increases in the expected long-term return rates on plan assets and increases in discount rates. The components of net periodic pension and OPEB (benefit) cost excluding the service cost component are included in the line item “Other operating expenses” in the statements of consolidated income.

During the second quarter of 2023, the Canada pension plan paid a premium to an insurance company to irrevocably transfer the benefit obligations and administration for the majority of its retired participants. The transaction did not impact the benefits to be received by the retired participants. In connection with the transaction, the Company recognized a one-time, non-cash, pre-tax pension settlement charge of $36 million in the second quarter of 2023 related to the accelerated recognition of actuarial losses included within “Accumulated other comprehensive income (loss)” in the statements of changes in consolidated stockholders’ equity.