PENSION AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Oct. 30, 2022

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:


		2022			2021			2020
Pensions
Service cost		$	349		$	332		$	321
Interest cost			330			276			347
Expected return on plan assets			(726)			(799)			(819)
Amortization of actuarial loss			132			259			256
Amortization of prior service cost			34			12			13
Settlements/curtailments			45			21			25
Net cost		$	164		$	101		$	143
Weighted-average assumptions
Discount rates - service cost			3.0%			2.5%			2.9%
Discount rates - interest cost			2.6%			2.1%			2.7%
Rate of compensation increase			3.7%			3.7%			3.8%
Expected long-term rates of return			5.1%			6.0%			6.4%
Interest crediting rate - U.S. cash balance plans			2.1%			1.7%			2.1%

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:


		2022			2021			2020
OPEB
Service cost		$	45		$	48		$	49
Interest cost			99			102			140
Expected return on plan assets			(110)			(77)			(50)
Amortization of actuarial (gain) loss			(18)			27			29
Amortization of prior service credit			(4)			(4)			(4)
Curtailments									34
Net cost		$	12		$	96		$	198
Weighted-average assumptions
Discount rates - service cost			3.6%			3.4%			3.7%
Discount rates - interest cost			2.3%			2.1%			2.7%
Expected long-term rates of return			4.4%			5.4%			5.7%

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 30, 2022 and October 31, 2021 in millions of dollars follow:


		Pensions						OPEB
		2022			2021			2022			2021
Change in benefit obligations
Beginning of year balance		$	(14,525)		$	(15,021)		$	(4,930)		$	(5,410)
Service cost			(349)			(332)			(45)			(48)
Interest cost			(330)			(276)			(99)			(102)
Actuarial gain			4,122			373			1,492			381
Prior service cost			(505)						(12)
Benefits paid			757			755			282			290
Health care subsidies									(33)			(29)
Settlements/curtailments						1
Foreign exchange and other			301			(25)			4			(12)
End of year balance			(10,529)			(14,525)			(3,341)			(4,930)

Change in plan assets (fair value)
Beginning of year balance			17,190			14,574			1,755			1,518
Actual return on plan assets			(3,070)			3,249			(495)			367
Employer contribution			85			101			1,155			157
Benefits paid			(757)			(755)			(282)			(290)
Foreign exchange and other			(229)			21			3			3
End of year balance			13,219			17,190			2,136			1,755
Funded status		$	2,690		$	2,665		$	(1,205)		$	(3,175)

Weighted-average assumptions
Discount rates			5.4%			2.7%			5.6%			2.8%
Rate of compensation increase			3.8%			3.7%
Interest crediting rate - U.S. cash balance plans			4.4%			1.8%

Schedule of Weighted-Average Health Care Cost Trend Rates

The weighted-average annual rates of increase in the per capita cost of covered health care benefits (the health care cost trend rates) for medical and prescription drug claims for pre- and post-65 age groups used to determine the October 30, 2022 and October 31, 2021 accumulated postretirement benefit obligations were as follows:


		2022		2021
Initial year		0.0% (2022 to 2023)		2.1% (2021 to 2022)
Second year		12.6% (2023 to 2024)		8.4% (2022 to 2023)
Ultimate		4.7% (2032 to 2033)		4.7% (2028 to 2029)

A decrease in Medicare Advantage premiums impacted the weighted-average annual rates of increase for the initial years in 2022 and 2021.

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

The amounts recognized at October 30, 2022 and October 31, 2021 in millions of dollars consisted of the following:


		Pensions						OPEB
		2022			2021			2022			2021
Amounts recognized in balance sheet
Noncurrent asset		$	3,223		$	3,601		$	507
Current liability			(42)			(51)			(39)		$	(36)
Noncurrent liability			(491)			(885)			(1,673)			(3,139)
Total		$	2,690		$	2,665		$	(1,205)		$	(3,175)
Amounts recognized in accumulated other comprehensive income – pretax
Net actuarial (gain) loss		$	926		$	1,376		$	(820)		$	49
Prior service cost (credit)			446			9			(4)			(20)
Total		$	1,372		$	1,385		$	(824)		$	29

Schedule of Information Related to Pension Plans Benefit Obligations

Information related to pension plans benefit obligations at October 30, 2022 and October 31, 2021 in millions of dollars follows:


		2022			2021
Total accumulated benefit obligations for all plans		$	10,068		$	13,787
Plans with accumulated benefit obligation exceeding fair value of plan assets:
Accumulated benefit obligations			1,116			2,012
Fair value of plan assets			672			1,207
Plans with projected benefit obligation exceeding fair value of plan assets:
Projected benefit obligations			1,225			2,163
Fair value of plan assets			692			1,227

Schedule of Future Benefits Expected to be Paid from the Benefit Plans

The expected future benefit payments at October 30, 2022 were as follows in millions of dollars:


		Pensions			OPEB*
2023		$	739		$	246
2024			730			248
2025			729			250
2026			728			252
2027			721			253
2028 to 2032			3,589			1,274

* 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 30, 2022 follow in millions of dollars:


		Total			Level 1			Level 2
Cash and short-term investments		$	338		$	283		$	55
Equity:
U.S. equity securities			311			290			21
International equity securities and funds			196			195			1
Fixed Income:
Government and agency securities			1,296			1,053			243
Corporate debt securities			4,587						4,587
Mortgage-backed securities			213						213
Other investments			49			31			18
Derivative contracts - assets			92			54			38
Derivative contracts - liabilities			(209)			(106)			(103)
Receivables, prepaids, and payables			(207)			(207)
Securities lending collateral			684						684
Securities lending liability			(684)						(684)
Securities sold short			(64)			(58)			(6)
Total of Level 1 and Level 2 assets			6,602		$	1,535		$	5,067
Investments at net asset value:
Short-term investments			633
U.S. equity funds			54
International equity funds			125
Fixed income funds			1,736
Real estate funds			592
Hedge funds			569
Private equity			1,322
Venture capital			1,553
Other investments			33
Total net assets		$	13,219

The fair values of the health care assets at October 30, 2022 follow in millions of dollars:


		Total			Level 1			Level 2
Cash and short-term investments		$	79		$	79
Fixed Income:
Government and agency securities			629			597		$	32
Corporate debt securities			516						516
Mortgage-backed securities			83						83
Other			(4)			(7)			3
Securities lending collateral			98						98
Securities lending liability			(98)						(98)
Total of Level 1 and Level 2 assets			1,303		$	669		$	634
Investments at net asset value:
U.S. equity funds			40
International equity funds			22
Fixed income funds			347
Real estate funds			140
Hedge funds			188
Private equity			41
Venture capital			48
Other investments			7
Total net assets		$	2,136

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