Pension and Other Post-Retirement Benefit Plans

3 Months Ended

Jul. 04, 2014

Pension And Other Benefit Plans [Abstract]

Pension and Other Benefit Plans

Pension and Other Post-Retirement Benefit Plans

The Company and its subsidiaries sponsor a number of pension and other post-retirement benefit plans. During the first quarter of fiscal 2015, the Company changed its accounting policies related to its defined benefit pension and other post-retirement benefit plans (see Note 2).

The net periodic pension benefit 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)	July 4, 2014			June 28, 2013			July 4, 2014			June 28, 2013
Service cost	$	1		$	2		$	6		$	7
Interest cost	38			38			31			31
Expected return on assets	(61		)	(56		)	(47		)	(40		)
Amortization of prior service cost	—			1			(2		)	(1		)
Recognition of actuarial losses	1			—			—			—
Settlement / Curtailment loss	2			—			—			—
Net periodic pension (income) cost	$	(19	)	$	(15	)	$	(12	)	$	(3	)

The increase in net periodic pension benefit during the first quarter of fiscal 2015, as compared to the first quarter of fiscal 2014, was primarily due to a greater return on pension assets of the U.S. and U.K. plans. The higher return was due to a higher amount pension assets at the beginning of fiscal 2015, as compared to fiscal 2014, and also due to better than expected returns on those pension assets. In addition, fiscal 2015 pension benefit was higher for the U.K. plans due to greater benefit from amortization of prior service credit.

During the first quarter of fiscal 2015, a curtailment loss of $2 million was recorded. This curtailment charge was associated with one of the U.S. pension plans and resulted from amortization of the prior service cost. The plan was remeasured on April 30, 2014 using a discount rate of 4.14%, a decrease from 4.23% at the prior fiscal year end, which resulted in an increase to the pension benefit obligation of $1 million, increasing the plan’s unfunded obligations.

The Company contributed $14 million and $28 million to the defined benefit pension plans during for the quarters ended July 4, 2014 and June 28, 2013, respectively. The Company expects to contribute $78 million during the remainder of fiscal 2015. 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 2015.

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)	July 4, 2014			June 28, 2013
Service cost	$	1		$	1
Interest cost	2			3
Expected return on assets	(1		)	(1		)
Amortization of prior service costs	(1		)	(1		)
Net provision for post-retirement benefits	$	1		$	2

The Company contributed $2 million and $1 million to the other post-retirement benefit plans during the quarters ended July 4, 2014 and June 28, 2013, respectively. The Company expects to contribute $2 million during the remainder of fiscal 2015.