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PENSION AND OTHER POSTRETIREMENT BENEFITS
 9 Months Ended
Aug. 02, 2020
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

​

Nine Months Ended

 

​

​

August 2

​

July 28

​

August 2

​

July 28

 

​

​

2020

​

2019

​

2020

​

2019

 

Service cost

    

$

80

    

$

65

    

$

241

    

$

197

​

Interest cost

​

​

86

​

 

112

​

​

260

​

 

334

​

Expected return on plan assets

​

​

(204)

​

 

(200)

​

​

(613)

​

 

(600)

​

Amortization of actuarial loss

​

​

62

​

 

35

​

​

186

​

 

106

​

Amortization of prior service cost

​

​

3

​

 

2

​

​

9

​

 

8

​

Settlements

​

​

6

​

 

1

​

​

12

​

 

1

​

Net cost

​

$

33

​

$

15

​

$

95

​

$

46

​

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

 

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Three Months Ended

​

Nine Months Ended

 

​

​

August 2

​

July 28

​

August 2

​

July 28

 

​

​

2020

​

2019

​

2020

​

2019

 

Service cost

    

$

12

    

$

11

    

$

36

    

$

31

​

Interest cost

​

​

34

​

 

53

​

​

106

​

 

160

​

Expected return on plan assets

​

​

(12)

​

 

(8)

​

​

(36)

​

 

(26)

​

Amortization of actuarial loss

​

​

7

​

 

4

​

​

21

​

 

12

​

Amortization of prior service credit

​

​

(1)

​

 

(19)

​

​

(3)

​

 

(55)

​

Curtailments

​

​

​

​

​

​

​

​

21

​

​

​

​

Net cost

​

$

40

​

$

41

​

$

145

​

$

122

​

​

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. OPEB health care plans. The wage plan was remeasured due to the U.S. enactment of the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) that repealed the health insurance provider fee effective in 2021. The salary plans were remeasured due to the first quarter U.S. voluntary employee-separation program (see Note 20), which resulted in a $21 million curtailment loss. The combined effect of the remeasurements was to reduce the benefit obligation by $245 million.

​

In August 2020, a committee of the Company’s Board of Directors approved a voluntary contribution to a U.S. OPEB plan for up to $700 million. During the first nine months of 2020, the Company contributed approximately $66 million to its pension plans and $87 million to its OPEB plans. The Company presently anticipates contributing an additional $26 million to its pension plans and $648 million to its OPEB plans during the remainder of fiscal year 2020. The anticipated OPEB contributions include a voluntary $600 million 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.