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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables) | 12 Months Ended
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Oct. 31, 2016
PENSION AND OTHER POSTRETIREMENT BENEFITS |
Components of Pension and Postretirement Benefit Costs | The components of net periodic pension cost and the assumptions related to the cost consisted of the following in millions of dollars and in percents:
|  | 2016 |  | 2015 |  | 2014 |
Pensions |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 254 |  | $ | 282 |  | $ | 244 |
Interest cost |  |  | 391 |  |  | 474 |  |  | 480 |
Expected return on plan assets |  |  | (775) |  |  | (769) |  |  | (776) |
Amortization of actuarial loss |  |  | 211 |  |  | 223 |  |  | 177 |
Amortization of prior service cost |  |  | 16 |  |  | 25 |  |  | 25 |
Other postemployment benefits |  |  | 2 |  |  | 1 |  |  | 5 |
Settlements/curtailments |  |  | 11 |  |  | 11 |  |  | 9 |
Net cost |  | $ | 110 |  | $ | 247 |  | $ | 164 |
Weighted-average assumptions |  |  |  |  |  |  |  |  |  |
Discount rates - service cost |  |  | 4.3% |  |  | 4.0% |  |  | 4.5% |
Discount rates - interest cost |  |  | 3.4% |  |  | 4.0% |  |  | 4.5% |
Rate of compensation increase |  |  | 3.8% |  |  | 3.8% |  |  | 3.8% |
Expected long-term rates of return |  |  | 7.3% |  |  | 7.3% |  |  | 7.5% |
The components of net periodic postretirement benefits cost and the assumptions related to the cost consisted of the following in millions of dollars and in percents:
|  | 2016 |  | 2015 |  | 2014 |
Health care and life insurance |  |  |  |  |  |  |  |  |  |
Service cost |  | $ | 38 |  | $ | 46 |  | $ | 44 |
Interest cost |  |  | 204 |  |  | 259 |  |  | 267 |
Expected return on plan assets |  |  | (35) |  |  | (55) |  |  | (72) |
Amortization of actuarial loss |  |  | 73 |  |  | 91 |  |  | 33 |
Amortization of prior service credit |  |  | (78) |  |  | (77) |  |  | (3) |
Settlements/curtailments |  |  |  |  |  | 1 |  |  | (1) |
Net cost |  | $ | 202 |  | $ | 265 |  | $ | 268 |
Weighted-average assumptions |  |  |  |  |  |  |  |  |  |
Discount rates - service cost |  |  | 5.0% |  |  | 4.2% |  |  | 4.7% |
Discount rates - interest cost |  |  | 3.5% |  |  | 4.2% |  |  | 4.7% |
Expected long-term rates of return |  |  | 6.6% |  |  | 7.0% |  |  | 7.2% |
Schedule of Benefit Plan Costs Recorded in Net Income and Other Changes in Plan Assets and Benefit Obligations Recorded in Other Comprehensive Income | The previous pension cost in net income and other changes in plan assets and benefit obligations in other comprehensive income in millions of dollars were as follows:
|  | 2016 |  | 2015 |  | 2014 |
Pensions |  |  |  |  |  |  |  |  |  |
Net cost |  | $ | 110 |  | $ | 247 |  | $ | 164 |
Retirement benefit adjustments included in other comprehensive (income) loss: |  |  |  |  |  |  |  |  |  |
Net actuarial loss |  |  | 1,140 |  |  | 361 |  |  | 940 |
Prior service cost |  |  | 1 |  |  | 66 |  |  |  |
Amortization of actuarial loss |  |  | (211) |  |  | (223) |  |  | (177) |
Amortization of prior service cost |  |  | (16) |  |  | (25) |  |  | (25) |
Settlements/curtailments |  |  | (14) |  |  | (11) |  |  | (9) |
Total loss recognized in other comprehensive (income) loss |  |  | 900 |  |  | 168 |  |  | 729 |
Total recognized in comprehensive (income) loss |  | $ | 1,010 |  | $ | 415 |  | $ | 893 |
The previous postretirement benefits cost in net income and other changes in plan assets and benefit obligations in other comprehensive income in millions of dollars were as follows:
|  | 2016 |  | 2015 |  | 2014 |
Health care and life insurance |  |  |  |  |  |  |  |  |  |
Net cost |  | $ | 202 |  | $ | 265 |  | $ | 268 |
Retirement benefit adjustments included in other comprehensive (income) loss: |  |  |  |  |  |  |  |  |  |
Net actuarial (gain) loss |  |  | 496 |  |  | (141) |  |  | 748 |
Prior service credit |  |  | (3) |  |  | (3) |  |  | (370) |
Amortization of actuarial loss |  |  | (73) |  |  | (91) |  |  | (33) |
Amortization of prior service credit |  |  | 78 |  |  | 77 |  |  | 3 |
Settlements/curtailments |  |  |  |  |  | (2) |  |  | 1 |
Total (gain) loss recognized in other comprehensive (income) loss |  |  | 498 |  |  | (160) |  |  | 349 |
Total recognized in comprehensive (income) loss |  | $ | 700 |  | $ | 105 |  | $ | 617 |
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 31 in millions of dollars follow:
|  |  |  |  |  |  |  | Health Care |
|  |  |  |  |  |  |  | and |
|  | Pensions |  | Life Insurance |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Change in benefit obligations |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year balance |  | $ | (12,186) |  | $ | (12,190) |  | $ | (6,084) |  | $ | (6,304) |
Service cost |  |  | (254) |  |  | (282) |  |  | (38) |  |  | (46) |
Interest cost |  |  | (391) |  |  | (474) |  |  | (204) |  |  | (259) |
Actuarial gain (loss) |  |  | (1,001) |  |  | (174) |  |  | (478) |  |  | 172 |
Amendments |  |  | (1) |  |  | (66) |  |  | 3 |  |  | 3 |
Benefits paid |  |  | 702 |  |  | 781 |  |  | 321 |  |  | 344 |
Health care subsidies |  |  |  |  |  |  |  |  | (16) |  |  | (20) |
Other postemployment benefits |  |  | (2) |  |  | (1) |  |  |  |  |  |  |
Settlements/curtailments |  |  | 6 |  |  | 2 |  |  |  |  |  | 1 |
Foreign exchange and other |  |  | 41 |  |  | 218 |  |  | (4) |  |  | 25 |
End of year balance |  |  | (13,086) |  |  | (12,186) |  |  | (6,500) |  |  | (6,084) |
Change in plan assets (fair value) |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning of year balance |  |  | 11,164 |  |  | 11,447 |  |  | 689 |  |  | 957 |
Actual return on plan assets |  |  | 628 |  |  | 582 |  |  | 17 |  |  | 24 |
Employer contribution |  |  | 80 |  |  | 83 |  |  | 47 |  |  | 48 |
Benefits paid |  |  | (702) |  |  | (781) |  |  | (321) |  |  | (344) |
Settlements |  |  | (3) |  |  | (2) |  |  |  |  |  |  |
Foreign exchange and other |  |  | (30) |  |  | (165) |  |  | 3 |  |  | 4 |
End of year balance |  |  | 11,137 |  |  | 11,164 |  |  | 435 |  |  | 689 |
Funded status |  | $ | (1,949) |  | $ | (1,022) |  | $ | (6,065) |  | $ | (5,395) |
Weighted-average assumptions |  |  |  |  |  |  |  |  |  |  |  |  |
Discount rates |  |  | 3.6% |  |  | 4.1% |  |  | 3.8% |  |  | 4.3% |
Rate of compensation increase |  |  | 3.8% |  |  | 3.8% |  |  |  |  |  |  |
Schedule of Amounts Recognized in Balance Sheet and Accumulated Other Comprehensive Income - Pretax | The amounts recognized at October 31 in millions of dollars consist of the following:
|  |  |  |  |  |  |  | Health Care |
|  |  |  |  |  |  |  | and |
|  | Pensions |  | Life Insurance |
|  | 2016 |  | 2015 |  | 2016 |  | 2015 |
Amounts recognized in balance sheet |  |  |  |  |  |  |  |  |  |  |  |  |
Noncurrent asset |  | $ | 94 |  | $ | 216 |  |  |  |  |  |  |
Current liability |  |  | (33) |  |  | (44) |  | $ | (32) |  | $ | (20) |
Noncurrent liability |  |  | (2,010) |  |  | (1,194) |  |  | (6,033) |  |  | (5,375) |
Total |  | $ | (1,949) |  | $ | (1,022) |  | $ | (6,065) |  | $ | (5,395) |
Amounts recognized in accumulated other comprehensive income – pretax |  |  |  |  |  |  |  |  |  |  |  |  |
Net actuarial loss |  | $ | 5,309 |  | $ | 4,393 |  | $ | 1,865 |  | $ | 1,442 |
Prior service cost (credit) |  |  | 67 |  |  | 83 |  |  | (259) |  |  | (334) |
Total |  | $ | 5,376 |  | $ | 4,476 |  | $ | 1,606 |  | $ | 1,108 |
Schedule of Accumulated Other Comprehensive Income Expected to be Amortized as Net Expense (Income) During Fiscal 2015 | The amounts in accumulated other comprehensive income that are expected to be amortized as net expense (income) during fiscal 2017 in millions of dollars follow:
|  |  |  |  | Health Care |
|  |  |  |  | and |
|  | Pensions |  | Life Insurance |
Net actuarial loss |  | $ | 240 |  | $ | 101 |
Prior service cost (credit) |  |  | 12 |  |  | (77) |
Total |  | $ | 252 |  | $ | 24 |
Schedule of Future Benefits Expected to be Paid from the Benefit Plans | The benefits expected to be paid from the benefit plans, which reflect expected future years of service, are as follows in millions of dollars:
|  |  |  |  | Health Care |
|  |  |  |  | and |
|  | Pensions |  | Life Insurance* |
2017 |  | $ | 717 |  | $ | 339 |
2018 |  |  | 721 |  |  | 353 |
2019 |  |  | 709 |  |  | 356 |
2020 |  |  | 707 |  |  | 358 |
2021 |  |  | 696 |  |  | 362 |
2022 to 2026 |  |  | 3,454 |  |  | 1,834 |
* 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 31, 2016 follow in millions of dollars:
|  | Total |  | Level 1 |  | Level 2 |
Cash and short-term investments |  | $ | 684 |  | $ | 322 |  | $ | 362 |
Equity: |  |  |  |  |  |  |  |  |  |
U.S. equity securities and funds |  |  | 3,000 |  |  | 2,965 |  |  | 35 |
International equity securities and funds |  |  | 1,711 |  |  | 1,697 |  |  | 14 |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government and agency securities |  |  | 440 |  |  | 224 |  |  | 216 |
Corporate debt securities |  |  | 1,205 |  |  |  |  |  | 1,205 |
Mortgage-backed securities |  |  | 39 |  |  |  |  |  | 39 |
Fixed income funds |  |  | 20 |  |  | 20 |  |  |  |
Real estate |  |  | 121 |  |  | 118 |  |  | 3 |
Derivative contracts - assets* |  |  | 191 |  |  | 3 |  |  | 188 |
Derivative contracts - liabilities** |  |  | (59) |  |  | (14) |  |  | (45) |
Receivables, payables and other |  |  | 6 |  |  | 5 |  |  | 1 |
Securities lending collateral |  |  | 693 |  |  | 108 |  |  | 585 |
Securities lending liability |  |  | (693) |  |  | (108) |  |  | (585) |
Securities sold short |  |  | (338) |  |  | (333) |  |  | (5) |
Total of Level 1 and Level 2 assets |  |  | 7,020 |  | $ | 5,007 |  | $ | 2,013 |
Investments at net asset value***: |  |  |  |  |  |  |  |  |  |
Short-term investments |  |  | 216 |  |  |  |  |  |  |
U.S. equity funds |  |  | 30 |  |  |  |  |  |  |
International equity funds |  |  | 595 |  |  |  |  |  |  |
Corporate debt funds |  |  | 25 |  |  |  |  |  |  |
Fixed income funds |  |  | 482 |  |  |  |  |  |  |
Real estate |  |  | 515 |  |  |  |  |  |  |
Hedge funds |  |  | 624 |  |  |  |  |  |  |
Private equity/venture capital |  |  | 1,603 |  |  |  |  |  |  |
Other investments |  |  | 27 |  |  |  |  |  |  |
Total net assets |  | $ | 11,137 |  |  |  |  |  |  |
* Includes contracts for interest rates of $125 million, foreign currency of $59 million, equity of $4 million and other of $3 million. ** Includes contracts for interest rates of $19 million, foreign currency of $33 million, equity of $6 million and other of $1 million. *** Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. The fair values of the health care assets at October 31, 2016 follow in millions of dollars:
|  | Total |  | Level 1 |  | Level 2 |
Cash and short-term investments |  | $ | 32 |  | $ | 27 |  | $ | 5 |
Equity: |  |  |  |  |  |  |  |  |  |
U.S. equity securities and funds |  |  | 138 |  |  | 138 |  |  |  |
International equity securities and funds |  |  | 25 |  |  | 25 |  |  |  |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government and agency securities |  |  | 43 |  |  | 40 |  |  | 3 |
Corporate debt securities |  |  | 30 |  |  |  |  |  | 30 |
Mortgage-backed securities |  |  | 11 |  |  |  |  |  | 11 |
Real estate |  |  | 2 |  |  | 2 |  |  |  |
Derivative contracts - assets* |  |  | 3 |  |  |  |  |  | 3 |
Securities lending collateral |  |  | 48 |  |  | 11 |  |  | 37 |
Securities lending liability |  |  | (48) |  |  | (11) |  |  | (37) |
Securities sold short |  |  | (5) |  |  | (5) |  |  |  |
Total of Level 1 and Level 2 assets |  |  | 279 |  | $ | 227 |  | $ | 52 |
Investments at net asset value**: |  |  |  |  |  |  |  |  |  |
Short-term investments |  |  | 3 |  |  |  |  |  |  |
International equity funds |  |  | 60 |  |  |  |  |  |  |
Fixed income funds |  |  | 20 |  |  |  |  |  |  |
Real estate funds |  |  | 7 |  |  |  |  |  |  |
Hedge funds |  |  | 44 |  |  |  |  |  |  |
Private equity/venture capital |  |  | 22 |  |  |  |  |  |  |
Total net assets |  | $ | 435 |  |  |  |  |  |  |
* Includes contracts for interest rates of $2 million and foreign currency of $1 million. ** Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. The fair values of the pension plan assets at October 31, 2015 follow in millions of dollars:
|  | Total |  | Level 1 |  | Level 2 |
Cash and short-term investments |  | $ | 867 |  | $ | 378 |  | $ | 489 |
Equity: |  |  |  |  |  |  |  |  |  |
U.S. equity securities and funds |  |  | 3,075 |  |  | 3,053 |  |  | 22 |
International equity securities |  |  | 1,802 |  |  | 1,781 |  |  | 21 |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government and agency securities |  |  | 386 |  |  | 197 |  |  | 189 |
Corporate debt securities |  |  | 751 |  |  | 1 |  |  | 750 |
Mortgage-backed securities |  |  | 83 |  |  |  |  |  | 83 |
Fixed income funds |  |  | 26 |  |  | 26 |  |  |  |
Real estate |  |  | 133 |  |  | 130 |  |  | 3 |
Derivative contracts - assets* |  |  | 190 |  |  | 25 |  |  | 165 |
Derivative contracts - liabilities** |  |  | (26) |  |  | (4) |  |  | (22) |
Receivables, payables and other |  |  | 4 |  |  | 3 |  |  | 1 |
Securities lending collateral |  |  | 745 |  |  | 92 |  |  | 653 |
Securities lending liability |  |  | (745) |  |  | (92) |  |  | (653) |
Securities sold short |  |  | (470) |  |  | (466) |  |  | (4) |
Total of Level 1 and Level 2 assets |  |  | 6,821 |  | $ | 5,124 |  | $ | 1,697 |
Investments at net asset value***: |  |  |  |  |  |  |  |  |  |
Short-term investments |  |  | 195 |  |  |  |  |  |  |
U.S. equity funds |  |  | 33 |  |  |  |  |  |  |
International equity funds |  |  | 540 |  |  |  |  |  |  |
Corporate debt funds |  |  | 26 |  |  |  |  |  |  |
Fixed income funds |  |  | 495 |  |  |  |  |  |  |
Real estate |  |  | 501 |  |  |  |  |  |  |
Hedge funds |  |  | 625 |  |  |  |  |  |  |
Private equity/venture capital |  |  | 1,604 |  |  |  |  |  |  |
Other investments |  |  | 324 |  |  |  |  |  |  |
Total net assets |  | $ | 11,164 |  |  |  |  |  |  |
* Includes contracts for interest rates of $137 million, foreign currency of $17 million, equity of $30 million and other of $6 million. ** Includes contracts for interest rates of $7 million, foreign currency of $15 million and other of $4 million. *** Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. The fair values of the health care assets at October 31, 2015 follow in millions of dollars:
|  | Total |  | Level 1 |  | Level 2 |
Cash and short-term investments |  | $ | 35 |  | $ | 25 |  | $ | 10 |
Equity: |  |  |  |  |  |  |  |  |  |
U.S. equity securities and funds |  |  | 229 |  |  | 229 |  |  |  |
International equity securities |  |  | 39 |  |  | 39 |  |  |  |
Fixed Income: |  |  |  |  |  |  |  |  |  |
Government and agency securities |  |  | 84 |  |  | 78 |  |  | 6 |
Corporate debt securities |  |  | 35 |  |  |  |  |  | 35 |
Mortgage-backed securities |  |  | 13 |  |  |  |  |  | 13 |
Fixed income funds |  |  | 1 |  |  | 1 |  |  |  |
Real estate |  |  | 4 |  |  | 4 |  |  |  |
Derivative contracts - assets* |  |  | 4 |  |  | 1 |  |  | 3 |
Receivables, payables and other |  |  | 1 |  |  | 1 |  |  |  |
Securities lending collateral |  |  | 65 |  |  | 9 |  |  | 56 |
Securities lending liability |  |  | (65) |  |  | (9) |  |  | (56) |
Securities sold short |  |  | (10) |  |  | (10) |  |  |  |
Total of Level 1 and Level 2 assets |  |  | 435 |  | $ | 368 |  | $ | 67 |
Investments at net asset value**: |  |  |  |  |  |  |  |  |  |
Short-term investments |  |  | 4 |  |  |  |  |  |  |
International equity funds |  |  | 103 |  |  |  |  |  |  |
Fixed income funds |  |  | 47 |  |  |  |  |  |  |
Real estate funds |  |  | 10 |  |  |  |  |  |  |
Hedge funds |  |  | 50 |  |  |  |  |  |  |
Private equity/venture capital |  |  | 34 |  |  |  |  |  |  |
Other investments |  |  | 6 |  |  |  |  |  |  |
Total net assets |  | $ | 689 |  |  |  |  |  |  |
* Includes contracts for interest rates of $2 million, foreign currency of $1 million and equity of $1 million. ** Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy.

X
- Definition The disclosure of the amounts recognized in the statement of financial position and accumulated other comprehensive income, pretax, for defined benefit pension and other postretirement benefit plans, showing separately assets and liabilities, net actuarial losses or gains and prior service cost or credit. + References No definition available. + Details
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- Definition The disclosure of the changes in benefit obligations and plan assets, and assumptions related to defined benefit pension and other postretirement benefit plans. + References No definition available. + Details
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- Definition Tabular disclosure of the components of net benefit costs for pension plans and/or other employee benefit plans including service cost, interest cost, expected return on plan assets, gain (loss), prior service cost or credit, transition asset or obligation, and gain (loss) recognized due to settlements or curtailments. Table also includes related weighted average assumptions. + References No definition available. + Details
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- Definition Tabular disclosure of the major categories of plan assets of pension plans and/or other employee benefit plans. This information may include, but is not limited to, the target allocation of plan assets, the fair value of each major category of plan assets, and the level within the fair value hierarchy in which the fair value measurements fall. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (d)(5) -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e1928-114920 + Details
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- Definition Tabular disclosure of the amounts related to pension plans and/or other employee benefit plans in accumulated other comprehensive income (loss) expected to be recognized as components of net periodic benefit cost over the next fiscal year, including the net gain (loss), net prior service cost or credit, and net transition asset or obligation. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (s) -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e1928-114920 + Details
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- Definition Tabular disclosure of the changes in plan assets and benefit obligations recognized in other comprehensive income (loss) during the period. + References No definition available. + Details
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- Definition Tabular disclosure of benefits expected to be paid by pension plans and/or other employee benefit plans in each of the next five fiscal years and in the aggregate for the five fiscal years thereafter. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -SubTopic 20 -Section 50 -Paragraph 1 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=65897934&loc=d3e1928-114920 + Details
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