Pension and Other Benefit Plans

6 Months Ended

Sep. 28, 2012

Pension And Other Benefit Plans [Abstract]

Pension and other benefit plans

Pension and Other Benefit Plans

The Company and its subsidiaries offer a number of pension and postretirement benefits, life insurance benefits, deferred compensation, and other plans. The components of net periodic pension cost for U.S. and non-U.S. pension plans included the following components:

	Quarter Ended
	U.S. Plans						Non-U.S. Plans
(Amounts in millions)	September 28, 2012			September 30, 2011			September 28, 2012			September 30, 2011
Service cost	$	2		$	2		$	6		$	7
Interest cost	38			41			29			32
Expected return on assets	(36		)	(36		)	(30		)	(32		)
Amortization of unrecognized net loss and other	10			8			5			4
Contractual termination benefits	—			—			1			—
Net periodic pension cost	$	14		$	15		$	11		$	11

	Six Months Ended
	U.S. Plans						Non-U.S. Plans
(Amounts in millions)	September 28, 2012			September 30, 2011			September 28, 2012			September 30, 2011
Service cost	$	5		$	4		$	14		$	14
Interest cost	78			82			60			64
Expected return on assets	(76		)	(72		)	(61		)	(64		)
Amortization of unrecognized net loss and other	21			17			10			8
Contractual termination benefits	—			—			6			—
Net periodic pension cost	$	28		$	31		$	29		$	22

During the quarter and six months ended September 28, 2012, the Company recorded additional contractual termination benefits for a certain U.K. pension plan of $1 million and $6 million, respectively, based on revised estimates related to the restructuring plan to reduce headcount initiated in March 2012. These contractual termination benefits are reflected in the projected benefit obligation at the end of the quarter and recognized in net periodic pension cost as of the second quarter.

During the second quarter of fiscal 2013, a pension plan in Norway was amended to change the index used to benchmark pension payment increases. The plan was remeasured at July 1, 2012, the effective date of the amendment, resulting in a reduction to the projected benefit obligation by $28 million, improving the plan's funded status. The plan's fiscal 2013 expense was also remeasured for the remaining 9 months of the fiscal year using a new discount rate of 4%.

The Company contributed $61 million and $117 million to the defined benefit pension plans during the quarter and six months ended September 28, 2012, respectively. In aggregate, the Company expects to contribute approximately $252 million during fiscal 2013. Additional contributions may be required to meet funding levels as required by Section 430 of the Internal Revenue Code, as amended by the Pension Protection Act of 2006, the amount of which will be determined based upon actuarial valuations that will be performed in the fourth quarter of fiscal 2013.

During the second quarter of fiscal 2013, the Internal Revenue Service issued guidance for the Moving Ahead for Progress in the 21st Century Act ("MAP-21"), which was passed by Congress earlier in the year. MAP-21 established funding stabilization provisions, which starting in calendar year 2012 allows plan sponsors to defer contributions to their pension plans. The Company has evaluated the provisions of the new law and does not plan to defer contributions in calendar year 2012.

The components of net periodic benefit cost for postretirement benefit plans, reported on a global basis, included the following:

	Quarter Ended
(Amounts in millions)	September 28, 2012			September 30, 2011
Service cost	$	1		$	1
Interest cost	3			3
Expected return on assets	(1		)	(2		)
Amortization of unrecognized net loss and other	3			2
Net provision for postretirement benefits	$	6		$	4

	Six Months Ended
(Amounts in millions)	September 28, 2012			September 30, 2011
Service cost	$	2		$	2
Interest cost	6			6
Expected return on assets	(3		)	(4		)
Amortization of unrecognized net loss and other	7			4
Net provision for postretirement benefits	$	12		$	8

The Company contributed $3 million and $4 million to the postretirement benefit plans during the quarter and six months ended September 28, 2012, respectively. The Company expects to contribute approximately $10 million to the postretirement benefit plans during fiscal 2013.

The Company received a $1 million subsidy during the six months ended September 28, 2012 in connection with the Medicare Prescription Drug Improvement and Modernization Act of 2003.