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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Oct. 28, 2018

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 percents:

		2018			2017			2016
Pensions
Service cost		$	293		$	274		$	254
Interest cost			390			361			391
Expected return on plan assets			(775)			(790)			(775)
Amortization of actuarial loss			226			247			211
Amortization of prior service cost			12			12			16
Other postemployment benefits									2
Settlements/curtailments			8			2			11
Net cost		$	154		$	106		$	110
Weighted-average assumptions
Discount rates - service cost			3.5%			3.5%			4.3%
Discount rates - interest cost			3.2%			3.0%			3.4%
Rate of compensation increase			3.8%			3.8%			3.8%
Expected long-term rates of return			6.9%			7.3%			7.3%

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

		2018			2017			2016
OPEB
Service cost		$	45		$	42		$	38
Interest cost			191			194			204
Expected return on plan assets			(22)			(17)			(35)
Amortization of actuarial loss			62			99			73
Amortization of prior service credit			(77)			(77)			(78)
Net cost		$	199		$	241		$	202
Weighted-average assumptions
Discount rates - service cost			4.3%			4.7%			5.0%
Discount rates - interest cost			3.3%			3.2%			3.5%
Expected long-term rates of return			5.7%			6.3%			6.6%

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:

		2018			2017			2016
Pensions
Net cost		$	154		$	106		$	110
Retirement benefit adjustments included in other comprehensive (income) loss:
Net actuarial (gain) loss			(553)			(702)			1,140
Prior service cost									1
Amortization of actuarial loss			(226)			(247)			(211)
Amortization of prior service cost			(12)			(12)			(16)
Settlements/curtailments			(8)			(2)			(14)
Total (gain) loss recognized in other comprehensive (income) loss			(799)			(963)			900
Total recognized in comprehensive (income) loss		$	(645)		$	(857)		$	1,010

The previous OPEB cost in net income and other changes in plan assets and benefit obligations in other comprehensive income in millions of dollars were as follows:

		2018			2017			2016
OPEB
Net cost		$	199		$	241		$	202
Retirement benefit adjustments included in other comprehensive (income) loss:
Net actuarial (gain) loss			(608)			(309)			496
Prior service cost (credit)			5						(3)
Amortization of actuarial loss			(62)			(99)			(73)
Amortization of prior service credit			77			77			78
Total (gain) loss recognized in other comprehensive (income) loss			(588)			(331)			498
Total recognized in comprehensive (income) loss		$	(389)		$	(90)		$	700

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 28, 2018 and October 29, 2017, respectively, in millions of dollars follow:

		Pensions						OPEB
		2018			2017			2018			2017
Change in benefit obligations
Beginning of year balance		$	(13,166)		$	(13,086)		$	(6,162)		$	(6,500)
Service cost			(293)			(274)			(45)			(42)
Interest cost			(390)			(361)			(191)			(194)
Actuarial gain (loss)			1,012			(35)			624			280
Amendments									(5)
Benefits paid			711			704			317			312
Health care subsidies									(12)			(9)
Settlements/curtailments						2
Acquisition*			(29)
Foreign exchange and other			47			(116)			2			(9)
End of year balance			(12,108)			(13,166)			(5,472)			(6,162)
Change in plan assets (fair value)
Beginning of year balance			12,093			11,137			539			435
Actual return on plan assets			316			1,517			6			46
Employer contribution			938			62			488			366
Benefits paid			(711)			(704)			(317)			(312)
Settlements						(2)
Foreign exchange and other			(34)			83			3			4
End of year balance			12,602			12,093			719			539
Funded status		$	494		$	(1,073)		$	(4,753)		$	(5,623)
Weighted-average assumptions
Discount rates			4.1%			3.6%			4.5%			3.7%
Rate of compensation increase			3.8%			3.8%

*       See Note 4.

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

The amounts recognized at October 28, 2018 and October 29, 2017, respectively, in millions of dollars consist of the following:

		Pensions						OPEB
		2018			2017			2018			2017
Amounts recognized in balance sheet
Noncurrent asset		$	1,298		$	538
Current liability			(36)			(40)		$	(34)		$	(63)
Noncurrent liability			(768)			(1,571)			(4,719)			(5,560)
Total		$	494		$	(1,073)		$	(4,753)		$	(5,623)
Amounts recognized in accumulated other comprehensive income – pretax
Net actuarial loss		$	3,571		$	4,358		$	787		$	1,457
Prior service cost (credit)			43			55			(100)			(182)
Total		$	3,614		$	4,413		$	687		$	1,275

Schedule of Accumulated Other Comprehensive Income Expected to be Amortized as Net Expense (Income) During Next Fiscal Year

The amounts in accumulated other comprehensive income that are expected to be amortized as net expense (income) and reported outside of income from operations during fiscal 2019 in millions of dollars follow:

		Pensions			OPEB
Net actuarial loss		$	141		$	20
Prior service cost (credit)			12			(72)
Total		$	153		$	(52)

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:

		Pensions			OPEB*
2019		$	712		$	320
2020			743			334
2021			703			339
2022			699			345
2023			693			345
2024 to 2028			3,465			1,729

*       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 28, 2018 follow in millions of dollars:

		Total			Level 1			Level 2
Cash and short-term investments		$	868		$	377		$	491
Equity:
U.S. equity securities			1,495			1,466			29
International equity securities			1,143			1,136			7
Fixed Income:
Government and agency securities			764			500			264
Corporate debt securities			1,626						1,626
Mortgage-backed securities			53						53
Real estate			76			72			4
Derivative contracts - assets*			102			3			99
Derivative contracts - liabilities**			(115)			(40)			(75)
Receivables, payables, and other			(9)			(10)			1
Securities lending collateral			561						561
Securities lending liability			(561)						(561)
Securities sold short			(333)			(330)			(3)
Total of Level 1 and Level 2 assets			5,670		$	3,174		$	2,496
Investments at net asset value:
Short-term investments			219
U.S. equity funds			1,526
International equity funds			802
Corporate debt funds			28
Fixed income funds			1,262
Real estate			654
Hedge funds			724
Private equity/venture capital			1,680
Other investments			37
Total net assets		$	12,602

*       Includes contracts for interest rates of $48 million, foreign currency of $47 million, and other of $7 million.

**    Includes contracts for interest rates of $49 million, foreign currency of $28  million, equity of $29 million, and other of $9 million.

The fair values of the health care assets at October 28, 2018 follow in millions of dollars:

		Total			Level 1			Level 2
Cash and short-term investments		$	78		$	73		$	5
Equity:
U.S. equity securities and funds			54			54
International equity securities			10			10
Fixed Income:
Government and agency securities			57			53			4
Corporate debt securities			29						29
Mortgage-backed securities			11						11
Real estate			1			1
Foreign currency derivative contracts - assets			1						1
Equity derivative contracts - liabilities			(1)			(1)
Securities lending collateral			24						24
Securities lending liability			(24)						(24)
Securities sold short			(3)			(3)
Total of Level 1 and Level 2 assets			237		$	187		$	50
Investments at net asset value:
Short-term investments			2
U.S. equity funds			220
International equity funds			146
Fixed income funds			83
Real estate funds			7
Hedge funds			7
Private equity/venture capital			17
Total net assets		$	719

The fair values of the pension plan assets at October 29, 2017 follow in millions of dollars:

		Total			Level 1			Level 2
Cash and short-term investments		$	618		$	349		$	269
Equity:
U.S. equity securities			1,871			1,850			21
International equity securities			1,551			1,541			10
Fixed Income:
Government and agency securities			483			241			242
Corporate debt securities			1,285						1,285
Mortgage-backed securities			42						42
Real estate			103			101			2
Derivative contracts - assets*			159			28			131
Derivative contracts - liabilities**			(76)			(2)			(74)
Receivables, payables, and other			1			1
Securities lending collateral			420						420
Securities lending liability			(420)						(420)
Securities sold short			(379)			(375)			(4)
Total of Level 1 and Level 2 assets			5,658		$	3,734		$	1,924
Investments at net asset value:
Short-term investments			203
U.S. equity funds			1,704
International equity funds			921
Corporate debt funds			28
Fixed income funds			772
Real estate			567
Hedge funds			651
Private equity/venture capital			1,560
Other investments			29
Total net assets		$	12,093

*      Includes contracts for interest rates of $79 million, foreign currency of $49 million, equity of $27 million, and other of $4 million.

**    Includes contracts for interest rates of $48 million, foreign currency of $26 million, and other of $2 million.

The fair values of the health care assets at October 29, 2017 follow in millions of dollars:

		Total			Level 1			Level 2
Cash and short-term investments		$	30		$	28		$	2
Equity:
U.S. equity securities and funds			42			42
International equity securities			9			9
Fixed Income:
Government and agency securities			40			37			3
Corporate debt securities			21						21
Mortgage-backed securities			10						10
Real estate			1			1
Interest rate derivative contracts - assets			1						1
Securities lending collateral			25						25
Securities lending liability			(25)						(25)
Securities sold short			(2)			(2)
Total of Level 1 and Level 2 assets			152		$	115		$	37
Investments at net asset value:
Short-term investments			1
U.S. equity funds			164
International equity funds			117
Fixed income funds			87
Real estate funds			4
Hedge funds			4
Private equity/venture capital			10
Total net assets		$	539

X

- Definition

Tabular disclosure of the amounts that are recognized in the balance sheet (or statement of financial position) for pension plans and/or other employee benefit plans, showing separately the assets and current and noncurrent liabilities (if applicable) recognized and pretax amounts related to pension plans and/or other employee benefit plans in accumulated other comprehensive income or loss that have not yet been recognized as components of net periodic benefit cost, such as the net gain (loss), net prior service cost or credit, and net transition asset or obligation.

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Tabular disclosure of the change in the benefit obligation, fair value of plan assets, and funded status of pension plans or other employee benefit plans.

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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.

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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.

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Tabular disclosure of the changes in plan assets and benefit obligations recognized in other comprehensive income (loss) during the period.

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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.

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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.

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