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PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Oct. 31, 2021

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:

​

​	​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Pensions	​	​	​	​	​	​	​	​	​	​
Service cost		$	332	​	$	321	​	$	261	​
Interest cost	​		276	​		347	​		447	​
Expected return on plan assets	​		(799)	​		(819)	​		(802)	​
Amortization of actuarial loss	​		259	​		256	​		148	​
Amortization of prior service cost	​		12	​		13	​		11	​
Settlements/curtailments	​		21	​		25	​		5	​
Net cost	​	$	101	​	$	143	​	$	70	​
Weighted-average assumptions	​	​	​	​	​	​	​	​	​	​
Discount rates - service cost	​	​	2.5%	​	​	2.9%	​	​	4.0%	​
Discount rates - interest cost	​	​	2.1%	​	​	2.7%	​	​	4.0%	​
Rate of compensation increase	​	​	3.7%	​	​	3.8%	​	​	3.8%	​
Expected long-term rates of return	​	​	6.0%	​	​	6.4%	​	​	6.5%	​
Interest crediting rate - U.S. cash balance plan	​	​	1.7%	​	​	2.1%	​	​	3.3%	​

​

​

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

​

​	​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
OPEB	​	​	​	​	​	​	​	​	​	​
Service cost	​	$	48	​	$	49	​	$	41	​
Interest cost	​		102	​		140	​		216	​
Expected return on plan assets	​		(77)	​		(50)	​		(36)	​
Amortization of actuarial loss	​		27	​		29	​		16	​
Amortization of prior service credit	​		(4)	​		(4)	​		(72)	​
Curtailments	​		​	​	​	34	​	​	​	​
Net cost	​	$	96	​	$	198	​	$	165	​
Weighted-average assumptions	​	​	​	​	​	​	​	​	​	​
Discount rates - service cost	​	​	3.4%	​	​	3.7%	​	​	4.8%	​
Discount rates - interest cost	​	​	2.1%	​	​	2.7%	​	​	4.2%	​
Expected long-term rates of return	​	​	5.4%	​	​	5.7%	​	​	5.7%	​

​

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:

​

​	​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
Pensions	​	​	​	​	​	​	​	​	​	​
Net cost	​	$	101	​	$	143	​	$	70	​
Retirement benefit adjustments included in other comprehensive (income) loss:	​	​	​	​	​	​	​	​	​	​
Net actuarial (gain) loss	​		(2,821)	​		438	​		887	​
Amortization of actuarial loss	​		(256)	​		(249)	​		(143)	​
Amortization of prior service cost	​		(12)	​		(11)	​		(11)	​
Settlements	​		(22)	​		(26)	​		(3)	​
Total (gain) loss recognized in other comprehensive (income) loss	​		(3,111)	​		152	​		730	​
Total recognized in comprehensive (income) loss	​	$	(3,010)	​	$	295	​	$	800	​

​

​

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:

​

​	​	​	​	​	​	​	​	​	​	​
​		2021			2020			2019
OPEB	​	​	​	​	​	​	​	​	​	​
Net cost	​	$	96	​	$	198	​	$	165	​
Retirement benefit adjustments included in other comprehensive (income) loss:	​	​	​	​	​	​	​	​	​	​
Net actuarial (gain) loss	​		(671)	​		(136)	​		141	​
Amortization of actuarial loss	​		(27)	​		(29)	​		(16)	​
Amortization of prior service credit	​		4	​		4	​		72	​
Total (gain) loss recognized in other comprehensive (income) loss	​		(694)	​		(161)	​		197	​
Total recognized in comprehensive (income) loss	​	$	(598)	​	$	37	​	$	362	​

​

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, 2021 and November 1, 2020, respectively, in millions of dollars follow:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pensions

​

OPEB

​

​

​

2021

​

2020

​

2021

​

2020

​

Change in benefit obligations

​

​

​

​

​

​

Beginning of year balance

​

$

(15,021)

​

$

(14,250)

​

$

(5,410)

​

$

(5,622)

​

Service cost

​

(332)

​

(321)

​

(48)

​

(49)

​

Interest cost

​

(276)

​

(347)

​

(102)

​

(140)

​

Actuarial gain (loss)

​

373

​

(771)

​

381

​

119

​

Benefits paid

​

755

​

749

​

290

​

297

​

Health care subsidies

​

​

​

​

​

​

​

(29)

​

(28)

​

Settlements/curtailments

​

1

​

15

​

​

​

​

​

​

​

Foreign exchange and other

​

(25)

​

(96)

​

(12)

​

13

​

End of year balance

​

(14,525)

​

(15,021)

​

(4,930)

​

(5,410)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Change in plan assets (fair value)

​

​

​

​

​

​

​

​

​

​

​

​

​

Beginning of year balance

​

14,574

​

14,024

​

1,518

​

936

​

Actual return on plan assets

​

3,249

​

1,144

​

367

​

33

​

Employer contribution

​

101

​

108

​

157

​

843

​

Benefits paid

​

(755)

​

(749)

​

(290)

​

(297)

​

Settlements

​

​

​

(12)

​

​

​

​

​

​

​

Foreign exchange and other

​

21

​

59

​

3

​

3

​

End of year balance

​

17,190

​

14,574

​

1,755

​

1,518

​

Funded status

​

$

2,665

​

$

(447)

​

$

(3,175)

​

$

(3,892)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Weighted-average assumptions

​

​

​

​

​

​

​

​

​

​

​

​

​

Discount rates

​

​

2.7%

​

​

2.5%

​

​

2.8%

​

​

2.7%

​

Rate of compensation increase

​

​

3.7%

​

​

3.7%

​

​

​

​

​

​

​

Interest crediting rate - U.S. cash balance plan

​

​

1.8%

​

​

1.7%

​

​

​

​

​

​

​

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

The amounts recognized at October 31, 2021 and November 1, 2020, respectively, in millions of dollars consisted of the following:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Pensions

​

OPEB

​

​

​

2021

​

2020

​

2021

​

2020

​

Amounts recognized in balance sheet

​

​

​

​

​

​

​

Noncurrent asset

​

$

3,601

$

863

​

​

​

​

​

​

Current liability

​

(51)

​

(72)

​

$

(36)

​

$

(36)

​

Noncurrent liability

​

(885)

​

(1,238)

​

(3,139)

​

(3,856)

​

Total

​

$

2,665

​

$

(447)

​

$

(3,175)

​

$

(3,892)

​

Amounts recognized in accumulated other comprehensive income – pretax

​

​

​

​

​

​

​

​

​

​

​

​

​

Net actuarial loss

​

$

1,376

​

$

4,475

​

$

49

​

$

747

​

Prior service cost (credit)

​

9

​

21

​

(20)

​

(24)

​

Total

​

$

1,385

​

$

4,496

​

$

29

​

$

723

​

​

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*
2022	​	$	730	​	$	280	​
2023	​		710	​		279	​
2024	​		701	​		279	​
2025	​		693	​		278	​
2026	​		698	​		278	​
2027 to 2031	​		3,426	​		1,374	​

*       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, 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	​	​	​	​	​	​	​

​

​

The fair values of the pension plan assets at November 1, 2020 follow in millions of dollars:

​

​	​	​	​	​	​	​	​	​	​	​
​		Total			Level 1			Level 2
Cash and short-term investments	​	$	309	​	$	276	​	$	33	​
Equity:	​	​	​	​	​	​	​	​	​	​
U.S. equity securities	​		1,184	​		1,135	​	​	49	​
International equity securities	​		947	​		937	​	​	10	​
Fixed Income:	​	​	​	​	​	​	​	​	​	​
Government and agency securities	​		1,133	​		824	​		309	​
Corporate debt securities	​		3,534	​	​	​	​		3,534	​
Mortgage-backed securities	​		136	​		​	​		136	​
Real estate investment trusts	​		49	​		48	​		1	​
Derivative contracts - assets	​		94	​		2	​		92	​
Derivative contracts - liabilities	​		(79)	​		(43)	​		(36)	​
Receivables, payables, and other	​		(163)	​		(184)	​	​	21	​
Securities lending collateral	​		449	​	​	90	​		359	​
Securities lending liability	​		(449)	​	​	(90)	​		(359)	​
Securities sold short	​		(149)	​		(144)	​	​	(5)	​
Total of Level 1 and Level 2 assets	​	​	6,995	​	$	2,851	​	$	4,144	​
Investments at net asset value:	​	​	​	​	​	​	​	​	​	​
Short-term investments	​	​	510	​	​	​	​	​	​	​
U.S. equity funds	​	​	1,246	​	​	​	​	​	​	​
International equity funds	​	​	674	​	​	​	​	​	​	​
Fixed income funds	​	​	1,321	​	​	​	​	​	​	​
Real estate funds	​	​	618	​	​	​	​	​	​	​
Hedge funds	​	​	750	​	​	​	​	​	​	​
Private equity	​	​	1,064	​	​	​	​	​	​	​
Venture capital	​	​	974	​	​	​	​	​	​	​
Other investments	​	​	422	​	​	​	​	​	​	​
Total net assets	​	$	14,574	​	​	​	​	​	​	​

​

The fair values of the health care assets at November 1, 2020 follow in millions of dollars:

​

​	​	​	​	​	​	​	​	​	​	​
​		Total			Level 1			Level 2
Cash and short-term investments	​	$	117	​	$	117	​	​	​	​
Equity securities and funds	​	​	44	​	​	43	​	$	1	​
Fixed Income:	​	​	​	​	​	​	​	​	​	​
Government and agency securities	​		180	​		168	​	​	12	​
Corporate debt securities	​		66	​	​	​	​		66	​
Mortgage-backed securities	​		13	​	​	​	​		13	​
Other	​	​	(1)	​	​	(1)	​	​	​	​
Securities lending collateral	​		49	​	​	8	​		41	​
Securities lending liability	​		(49)	​	​	(8)	​		(41)	​
Securities sold short	​		(3)	​		(3)	​	​	​	​
Total of Level 1 and Level 2 assets	​	​	416	​	$	324	​	$	92	​
Investments at net asset value:	​	​	​	​	​	​	​	​	​	​
Short-term investments	​	​	9	​	​	​	​	​	​	​
U.S. equity funds	​	​	539	​	​	​	​	​	​	​
International equity funds	​	​	320	​	​	​	​	​	​	​
Fixed income funds	​	​	185	​	​	​	​	​	​	​
Hedge funds	​	​	12	​	​	​	​	​	​	​
Private equity	​	​	13	​	​	​	​	​	​	​
Venture capital	​	​	12	​	​	​	​	​	​	​
Other investments	​	​	12	​	​	​	​	​	​	​
Total net assets	​	$	1,518	​	​	​	​	​	​	​

​

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.

+ References

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X

- Definition

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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (a)(b)(c)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (d)(5)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

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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.

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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://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (f)
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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.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123447040&loc=d3e1928-114920

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