Pension and Other Post-Retirement Benefit Plans

9 Months Ended

Dec. 27, 2013

Pension And Other Benefit Plans [Abstract]

Pension and Other Benefit Plans

Pension and Other Post-Retirement Benefit Plans

The Company and its subsidiaries offer a number of pension and post-retirement 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)	December 27, 2013			December 28, 2012			December 27, 2013			December 28, 2012
Service cost	$	1		$	3		$	6		$	8
Interest cost	37			39			33			34
Expected return on assets	(50		)	(38		)	(46		)	(34		)
Amortization of unrecognized net loss and other	10			10			5			5
Contractual termination benefits	—			—			—			1
Settlement loss	—			—			4			—
Net periodic pension (income) cost	$	(2	)	$	14		$	2		$	14

	Nine Months Ended
	U.S. Plans						Non-U.S. Plans
(Amounts in millions)	December 27, 2013			December 28, 2012			December 27, 2013			December 28, 2012
Service cost	$	4		$	8		$	19		$	22
Interest cost	112			117			94			94
Expected return on assets	(152		)	(114		)	(121		)	(95		)
Amortization of unrecognized net loss and other	32			31			16			15
Contractual termination benefits	—			—			3			7
Settlement loss	6			—			4			—
Net periodic pension cost	$	2		$	42		$	15		$	43

The Company contributed $18 million and $72 million to the defined benefit pension plans during the quarter and nine months ended December 27, 2013, respectively. In aggregate, the Company expects to contribute approximately $87 million during fiscal 2014. 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 2014.

On July 19, 2013, CSC completed the sale of ATD (see Note 3), which had a pension and retiree medical plan. The plans were remeasured as of the date of the sale that resulted in settlement costs totaling $4 million that was recorded as part of gain on sale of ATD, and a reduction to long-term liabilities of $28 million. The net periodic pension cost, not including any settlement gain or loss, for the nine months ended December 27, 2013 and December 28, 2012 was $4 million and $6 million.

On December 20, 2013 two U.K. pension plans were remeasured due to a plan amendment arising from a change in the index used to determine the level of pension increases, from the Retail Prices Index (RPI) to the Consumer Prices Index (CPI). A weighted average discount rate of 4.65% was used to remeasure the plans; an increase from 4.31% in the prior fiscal year. As a result of the remeasurement, the pension benefit obligation decreased by $443 million and the average funded status was 108%.

During the third quarter of fiscal 2014, a pension plan in Switzerland recognized a settlement loss of $3 million as a result of restructuring activities. The plan was remeasured on September 30, 2013 using a discount rate of 2.3%, an increase from 2.05% in the prior fiscal year, which resulted in a reduction to the pension benefit obligation of $43 million, improving the plan's funded status.

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 nine months of the fiscal year using a new discount rate of 4%.

The components of net periodic benefit cost for other post-retirement benefit plans, reported on a global basis, included the following:

	Quarter Ended
(Amounts in millions)	December 27, 2013			December 28, 2012
Service cost	$	—		$	1
Interest cost	3			3
Expected return on assets	(1		)	(1		)
Amortization of unrecognized net loss and other	2			3
Net provision for post-retirement benefits	4			$	6

	Nine Months Ended
(Amounts in millions)	December 27, 2013			December 28, 2012
Service cost	$	2		$	3
Interest cost	7			9
Expected return on assets	(3		)	(4		)
Amortization of unrecognized net loss and other	7			10
Settlement gain	(2		)	—
Net provision for post-retirement benefits	$	11		$	18

The Company contributed $1 million and $4 million to the post-retirement benefit plans during the quarter and nine months ended December 27, 2013, respectively. The Company expects to contribute approximately $7 million to the post-retirement benefit plans during fiscal 2014.