Pension and Other Benefit Plans

The Company sponsors a number of defined benefit plans and defined contribution plans for the benefit of eligible employees. The defined benefit plans comprise primarily pension plans and post-retirement medical benefit plans. The defined contribution plans include the Company's deferred compensation plan for executives and non-employee directors.

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. The changes in accounting policies have been reported through retrospective application of the new accounting methods to all periods presented (see Note 3).

Defined Benefit Pension Plans

U.S. Plans

Contributory, defined benefit pension plans have been generally available to U.S. employees. However, the largest U.S. defined benefit pension plan was frozen for most participants in fiscal 2010. In addition, the Company has two supplemental executive retirement plans (SERP), which are non-qualified, non-contributory pension plans. The Company's funding policy is to make contributions to the Plans in amounts, as determined by an independent actuary, that meets the minimum requirements of the Internal Revenue Code (IRC) and ERISA, and that may exceed such minimum requirements if determined to be beneficial to the Company for cost recoverability, tax, or other regulatory reasons.

On July 19, 2013, CSC completed the sale of ATD (see Note 6), which had a pension and a retiree medical plan. The divestiture of these plans resulted in recognition of a settlement benefit of $36 million and a reduction to long-term liabilities of $28 million. The net periodic pension cost related to the divested plans, excluding the settlement benefit gain, for the years ended March 28, 2014, March 29, 2013, and March 30, 2012 was $1 million, $6 million, and $13 million respectively.

On December 31, 2012, the Company made a discretionary cash contribution of $400 million to its largest U.S. pension plan resulting in a remeasurement of the plan. The effects of this remeasurement were recorded during the fourth quarter of fiscal 2013 and resulted in a reduction of net periodic pension cost of $10 million for fiscal 2013, along with additional plan liabilities of $379 million due to using a new discount rate of 4.0%, a decrease from the previous rate of 4.85%. On March 26, 2013, the Company made an additional discretionary cash contribution of $80 million to various U.S. pension plans.

Non-US Plans

Eligible non-U.S. employees are enrolled in defined benefit pension plans in their country of domicile. The Contributory defined benefit pension plan in the U.K. represent the largest plan outside of the U.S. Effective July 1, 2010, the accrual of future benefits was discontinued for certain U.K. pension plans. In addition, healthcare, dental and life insurance benefits are also provided to certain non-U.S. employees. A significant number of employees outside the U.S. are covered by government sponsored programs at no direct cost to the Company other than related payroll taxes.

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%.

In connection with the restructuring plans (see Note 22), the Company accrued $17 million, $20 million, and $19 million, for fiscal years 2014, 2013 and 2012, respectively, as additional contractual termination benefits for certain employees participating in a U.K. pension plan. These amounts are reflected in the projected benefit obligation and in the net periodic pension cost. The fiscal 2013 accrual of $20 million was net of a $3 million reduction to the fiscal 2012 estimated contractual benefits to be paid.

On March 26, 2013, the Company made a discretionary cash contribution of $20 million to its largest Canadian pension plan.

Effective July 1, 2012 a Norway pension plan was amended to change the index used to benchmark pension payment increases. The plan was remeasured at July 1, 2012 resulting in a reduction to the projected benefit obligation of $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 discount rate of 4.0%.

The following tables provide reconciliations of the changes in the pension plans’ projected benefit obligations and assets, and a statement of their funded status:



Reconciliation of Projected Benefit Obligation	U.S. Pension Plans						Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014			March 29, 2013			March 28, 2014			March 29, 2013
Projected benefit obligation at beginning of year	$	3,506		$	3,284		$	3,012		$	2,732
Service cost	5			10			25			25
Interest cost	149			153			124			123
Plan participants’ contributions	1			3			6			7
Amendments	—			—			(254		)	(28		)
Business/contract acquisitions/divestitures	(107		)	—			9			(9		)
Contractual termination benefits	—			—			17			20
Settlement/curtailment	—			(5		)	(46		)	(37		)
Actuarial loss (gain)	3			194			(135		)	400
Benefits paid	(148		)	(133		)	(88		)	(79		)
Foreign currency exchange rate changes	—			—			205			(142		)
Other	—			—			(2		)	—
Projected benefit obligation at end of year	$	3,409		$	3,506		$	2,873		$	3,012



Reconciliation of Fair Value of Plan Assets	U.S. Pension Plans						Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014			March 29, 2013			March 28, 2014			March 29, 2013
Fair value of plan assets at beginning of year	$	3,125		$	2,419		$	2,550		$	2,295
Actual return on plan assets	364			245			129			314
Employer contribution	7			591			81			157
Plan participants’ contributions	1			3			6			7
Benefits paid	(148		)	(133		)	(88		)	(79		)
Business/contract acquisitions/divestitures	(86		)	—			9			5
Plan settlement	—			—			(46		)	(30		)
Foreign currency exchange rate changes	—			—			183			(119		)
Fair value of plan assets at end of year	$	3,263		$	3,125		$	2,824		$	2,550

Funded status at end of year	$	(146	)	$	(381	)	$	(49	)	$	(462	)

The following table provides the amounts recorded in the Company’s Consolidated Balance Sheet:



	U.S. Pension Plans						Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014			March 29, 2013			March 28, 2014			March 29, 2013
Non-current assets	$	—		$	—		$	166		$	23
Current liabilities - Accrued expenses and other current liabilities	(8		)	(7		)	(7		)	(3		)
Non-current liabilities - Other long-term liabilities	(138		)	(374		)	(208		)	(482		)
Net amount recorded	$	(146	)	$	(381	)	$	(49	)	$	(462	)

The following is a summary of amounts in accumulated other comprehensive loss, before tax effects, as of March 28, 2014 and March 29, 2013 that have not been recognized in the Consolidated Statements of Operations as components of net periodic pension cost:



	U.S. Pension Plans				Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014		March 29, 2013		March 28, 2014			March 29, 2013
	(As Adjusted)		(As Adjusted)		(As Adjusted)			(As Adjusted)
Net transition obligation	$	—	$	—	$	3		$	3
Prior service cost (benefit)	2		5		(279		)	(24		)
Accumulated other comprehensive loss	$	2	$	5	$	(276	)	$	(21	)

The following table summarizes the weighted average assumptions used in the determination of the Company’s pension plans’ benefit obligations as of March 28, 2014 and March 29, 2013:



	U.S. Pension Plans				Non-U.S. Pension Plans
	March 28, 2014		March 29, 2013		March 28, 2014		March 29, 2013
Discount rate	4.6	%	4.4	%	4.3	%	4.1	%
Rates of increase in compensation levels	4.3	%	4.1	%	3.4	%	3.5	%

The following table lists selected information for the pension plans as of March 28, 2014 and March 29, 2013:



	U.S. Pension Plans				Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014		March 29, 2013		March 28, 2014		March 29, 2013
Projected benefit obligation	$	3,409	$	3,506	$	2,873	$	3,012
Accumulated benefit obligation	3,394		3,487		2,833		2,969
Fair value of plan assets	3,263		3,125		2,824		2,550



	Pension Plans with Projected Benefit Obligation in Excess of Plan Assets (U.S. and Non-U.S.)				Pension Plans with Accumulated Benefit Obligation in Excess of Plan Assets (U.S. and Non-U.S.)
(Amounts in millions)	March 28, 2014		March 29, 2013		March 28, 2014		March 29, 2013
Projected benefit obligation	$	3,945	$	6,270	$	3,917	$	6,132
Accumulated benefit obligation	3,906		6,217		3,888		6,100
Fair value of plan assets	3,585		5,405		3,564		5,276

The net periodic pension cost for U.S. and non-U.S. pension plans included the following components:



	U.S. Pension Plans									Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014			March 29, 2013			March 30, 2012			March 28, 2014			March 29, 2013			March 30, 2012
	(As Adjusted)			(As Adjusted)			(As Adjusted)			(As Adjusted)			(As Adjusted)			(As Adjusted)
Service cost	$	5		$	10		$	10		$	25		$	25		$	33
Interest cost	149			153			164			124			123			128
Expected return on assets	(216		)	(170		)	(168		)	(166		)	(122		)	(129		)
Amortization of transition obligation	—			—			—			1			1			1
Amortization of prior service costs	2			2			2			(5		)	(1		)	1
Recognition of actuarial (gains)/losses	(138		)	115			342			(101		)	199			131
Contractual termination benefit	—			—			—			17			20			20
Settlement gains	(28		)	—			—			—			(8		)	(5		)
Net periodic pension (benefit) cost	$	(226	)	$	110		$	350		$	(105	)	$	237		$	180

Other before tax changes in plan assets and benefit obligations recognized in other comprehensive income during fiscal years 2014, 2013 and 2012 included the following components:



	U.S. Pension Plans									Non-U.S. Pension Plans
(Amounts in millions)	March 28, 2014			March 29, 2013			March 30, 2012			March 28, 2014			March 29, 2013			March 30, 2012
	(As Adjusted)			(As Adjusted)			(As Adjusted)			(As Adjusted)			(As Adjusted)			(As Adjusted)
Prior service (credit) / cost	$	—		$	—		$	—		$	(265	)	$	(27	)	$	(11	)
Amortization of:
Transition (asset) /obligation	—			—			—			(1		)	(1		)	(1		)
Prior service (credit) / cost	(2		)	(2		)	(2		)	5			1			(1		)
Foreign currency exchange rate changes	—			—			—			(2		)	—			2
Total recognized in other comprehensive income	$	(2	)	$	(2	)	$	(2	)	$	(263	)	$	(27	)	$	(11	)

Other comprehensive income related to unamortized pension credits for the years ended March 28, 2014, March 29, 2013, and March 30, 2012 was $265 million (net of taxes of $0 million), $14 million (net of tax impact of $15 million), and $10 million (net of tax impact of $3 million), respectively.

The estimated amortization of net transitional asset and prior service costs, from accumulated other comprehensive income into net periodic pension cost, during the next fiscal year is $(1) million and $9 million, respectively.

The weighted-averages of the assumptions used to determine net periodic pension cost were:



	U.S. Pension Plans						Non-U.S. Pension Plans
	March 28, 2014		March 29, 2013		March 30, 2012		March 28, 2014		March 29, 2013		March 30, 2012
Discount or settlement rates	4.4	%	4.6	%	5.7	%	4.1	%	4.7	%	5.2	%
Expected long-term rates of return on assets	7.2	%	6.8	%	7.5	%	6.2	%	5.4	%	6.1	%
Rates of increase in compensation levels	4.3	%	4.1	%	4.3	%	3.5	%	4.1	%	4.1	%

Information about the expected cash flows for pension plans as of March 28, 2014, is as follows:



(Amounts in millions)	U.S. Plans		Non-U.S. Plans
Employer contributions:
2015	$	8	$	83

Benefit Payments:
2015	$	158	$	102
2016	169		105
2017	181		114
2018	192		122
2019	200		132
2020-2024	1,100		795

Defined Benefit Other Postretirement Benefit Plans

The Company provides subsidized healthcare and life insurance retirement benefits for certain U.S. employees and retirees, generally for those employed prior to August 1992. In response to the passage of the Patient Protection and Affordable Care Act of 2010 (PPACA), a number of changes were made to the underlying healthcare coverage offered to certain U.S. retirees. In conjunction with those changes, the Company established limits on the level of employer subsidy it will provide to some retirees. Several plans were amended and the impact of these changes was first reflected on April 1, 2011. In 2012, several retiree medical plans were further amended to allow Medicare Part D subsidies from 2012 and beyond to be collected by the healthcare provider and was reflected on March 30, 2012.

The following tables provide reconciliations of the changes in postretirement plans’ benefit obligations and assets and a statement of their funded status:



Reconciliation of Accumulated Postretirement Benefit Obligation
(Amounts in millions)	March 28, 2014			March 29, 2013
Accumulated benefit obligation at beginning of year	$	253		$	253
Service cost	3			4
Interest cost	10			11
Business/contract acquisitions/divestitures	(15		)	—
Actuarial loss (gain)	(16		)	(6		)
Benefits paid	(11		)	(10		)
Retiree drug subsidy reimbursement	1			1
Foreign currency exchange rate changes	(1		)	—
Other	(3		)	—
Accumulated benefit obligation at end of year	$	221		$	253



Reconciliation of Fair Value of Plan Assets
(Amounts in millions)	March 28, 2014			March 29, 2013
Fair value of plan assets at beginning of year	$	84		$	81
Actual return on plan assets	10			7
Employer contribution	6			6
Retiree drug subsidy	1			—
Business contract/acquisitions/divestitures	(8		)	—
Benefits paid	(11		)	(10		)
Fair value of plan assets at end of year	$	82		$	84
Funded status at end of year	$	(139	)	$	(169	)

The following table provides the amounts recorded in the Company’s Consolidated Balance Sheets:



(Amounts in millions)	March 28, 2014			March 29, 2013
Current liabilities - Accrued expenses and other current liabilities	$	(4	)	$	(5	)
Non-current liabilities - Other long-term liabilities	(135		)	(164		)
Net amount recorded	$	(139	)	$	(169	)

The amounts in accumulated other comprehensive loss as of March 28, 2014 and March 29, 2013 that have not been recognized in the Consolidated Statements of Operations as components of net periodic benefit cost include:



(Amounts in millions)	March 28, 2014			March 29, 2013
	(As Adjusted)			(As Adjusted)
Prior service (gain)	$	(15	)	$	(17	)

The following table lists selected information for other postretirement benefit plans as of March 28, 2014 and March 29, 2013:



					Plans with Accumulated Postretirement Benefit Obligation in Excess of the Fair Value of Plan Assets
(Amounts in millions)	March 28, 2014		March 29, 2013		March 28, 2014		March 29, 2013
Accumulated postretirement benefit obligation	$	221	$	253	$	221	$	253
Fair value of plan assets	82		84		82		84

As of March 28, 2014 and March 29, 2013, the Company had no postretirement healthcare plan assets outside the U.S. Benefits paid include amounts paid directly from plan assets and amounts paid by the Company.

The following table summarizes the weighted average assumptions used in the determination of the Company’s postretirement benefit obligations as of March 28, 2014 and March 29, 2013:



	March 28, 2014		March 29, 2013
Discount rate	4.3	%	4.1	%

The assumed healthcare cost trend rate used in measuring the accumulated postretirement benefit obligation was 8.8% for fiscal 2015, declining to 4.9% for 2024 and subsequent years for all retirees. Assumed healthcare cost trend rates have a significant effect on the amounts reported for the healthcare plans. A one-percentage point change in the assumed healthcare cost trend rates would have had the following effect:



	One Percentage Point
(Amounts in millions)	Increase		Decrease
Effect on accumulated postretirement benefit obligation as of March 28, 2014	$	12	$	(10	)
Effect on net periodic postretirement service and interest cost for fiscal 2014	1		(1		)

The net periodic benefit cost for other postretirement benefit plans included the following components:



(Amounts in millions)	March 28, 2014			March 29, 2013		March 30, 2012
	(As Adjusted)			(As Adjusted)		(As Adjusted)
Service cost	$	3		$	4	$	3
Interest cost	10			11		11
Expected return on assets	(5)			(5)		(6)
Amortization of transition obligation	—			—		1
Amortization of prior service costs	(2)			(2)		(6)
Recognition of Actuarial (Gains)/Losses	(20)			(8)		21
Settlement (gain)	(8)			—		—
Net provision for postretirement benefits	$	(22	)	$	—	$	24

Other before tax changes in plan assets and benefit obligations recognized in other comprehensive income during fiscal years 2014, 2013 and 2012 included the following components:



(Amounts in millions)	March 28, 2014		March 29, 2013		March 30, 2012
	(As Adjusted)		(As Adjusted)		(As Adjusted)
Prior service (credit) / cost	—		—		21
Amortization of:
Transition (asset) /obligation	—		—		(1		)
Prior service (credit) / cost	2		2		6
Total recognized in other comprehensive income	$	2	$	2	$	26

Other comprehensive loss related to unamortized postretirement benefit plan costs for the years ended March 28, 2014, March 29, 2013, and March 30, 2012 was $1 million (net of tax impact of $1 million), $2 million (net of taxes of $0 million), and $16 million (net of tax impact of $10 million), respectively.

The weighted-averages of the assumptions used to determine net periodic benefit cost were as follows.



Fiscal Year End	2014		2013		2012
Discount or settlement rates	4.1	%	4.5	%	5.3	%
Expected long-term rates of return on assets	5.9	%	6.5	%	7.2	%

Following are the expected cash flows for U.S.-based other post-retirement benefit plans:



(Amounts in millions)	U.S. Plans
(Amounts in millions)	U.S. Plans
Employer Contributions:
2015	$	4

Benefit Payments:
2015	$	13
2016	14
2017	15
2018	16
2019	17
2020-2024	82

No significant cash flow is expected for other post-retirement benefit plans outside the U.S.

Pension and Other Postretirement Benefit Plan Assets

U.S. pension plan and OPEB plan assets are held in a trust that includes both separate accounts and commingled funds. Non-U.S. assets are subject to country specific regulations and invest primarily in commingled funds. The U.S. pension trust and the U.K. pension plans account for 91% of the total pension plan assets.

The Company’s investment goals and risk management strategy for plan assets takes into account a number of factors, including the time horizon of the pension plans’ obligations. Plan assets are invested in various asset classes that are expected to produce a sufficient level of diversification and a reasonable amount of investment return over the long term. Sufficient liquidity is maintained to meet benefit obligations as they become due. Third party investment managers are employed to invest assets in both passively-indexed and actively-managed strategies. Equities are primarily invested broadly in domestic and foreign companies across market capitalizations and industries. Fixed income securities are invested broadly, primarily in government treasury, corporate credit, mortgage-backed and asset-backed investments. Alternative investment allocations are included in U.S. and U.K. pension plans to achieve greater portfolio diversity intended to reduce the overall risk of the plans.

Risks include, but are not limited to, longevity risk, inflation risk, and the risk of other changes in market conditions that reduce the value of plan assets. Also, a decline in the yield of high quality corporate bonds may adversely affect discount rates resulting in an increase in the pension and other post retirement obligations. These risks, among others, could cause the plans’ funded status to deteriorate, increasing reliance on Company contributions. Derivatives are permitted although their current use is limited within traditional funds and broadly allowed within alternative funds. They are primarily used in the U.S. pension trust traditional fixed income portfolios for duration and interest rate risk management and traditional equity portfolios to gain market exposure, and are expected to be used in the U.K. pension schemes for inflation risk management and within the liability driven investing strategy. The Company also has investments in insurance contracts to pay plan benefits in certain countries.

For the U.S. pension trust, an allocation range by asset class is developed. The allocation has a significant weighting to equity investments in part due to the relatively long duration of the plans’ obligations. As of March 2014, the plan fiduciaries adopted investment allocation targets for the U.S. pension trust of 35% equities, 30% fixed income securities, and 35% alternative investments. An allocation range is established for each asset class and cash equivalents may represent 0%-10% of the fund. Asset allocations are monitored closely and investment reviews are conducted regularly. The Company consults with internal and external advisors regarding asset strategy.

For the U.K. pension plans, the Company's second largest pension plans by assets and projected liabilities, a target allocation by asset class is developed to achieve their long term objectives. As of March 2014, the plans held investment allocation targets of 35% equities, 45% fixed income (including 35% corporate credit and 10% in liability-driven investment products), and 20% alternatives. Asset allocations are monitored closely by the plan trustees and investment reviews are conducted regularly. The plan trustees consult with internal and external advisors regarding asset strategy.

Plan Asset Valuation Techniques

Cash equivalents are primarily short term money market commingled funds that are categorized as Level 2, except for funds that have quoted prices in active markets, which are classified as Level 1. They are valued at cost plus accrued interest which approximates fair value.

Fixed income accounts are categorized as Level 2. Investments in corporate bonds are primarily investment grade bonds. These investments are generally priced using model-based pricing methods that use observable market data as inputs. Broker dealer bids or quotes of securities with similar characteristics may also be used.

Domestic and global equity separate accounts are categorized as Level 1 if the securities trade on national or international exchanges and are valued at their last reported closing price. Equity assets in commingled funds reporting a net asset value (NAV) are categorized as Level 2.

Insurance contracts purchased to cover benefits payable to retirees are valued using the assumptions used to value the projected benefit obligation. Most of the plans' insurance contracts are categorized as level 2 while one plan has a level 3 insurance contract.

Derivatives are categorized as Level 1 if the securities trade actively on a recognized exchange, as Level 2 if the securities can be valued using observable inputs, or as Level 3 if the securities are valued using significant unobservable inputs.

Alternative investment fund securities are categorized as Level 1 if held in a mutual fund or in a separate account structure and actively traded through a recognized exchange, or as Level 2 if they are held in commingled or collective account structures and are actively traded. Alternative investment fund securities are classified as Level 3 if they are held in Limited Company or Limited Partnership structures or cannot otherwise be classified as Level 1 or Level 2.

The fair value of pension plan assets and postretirement benefit plans by investment category and the corresponding level within the fair value hierarchy as of March 28, 2014 are as follows:



(Amounts in millions)	U.S. Plans		Non-U.S. Plans
Fair value of pension plan assets	$	3,263	$	2,824
Fair value of other postretirement benefit plan assets	82		—
Total fair value of retirement plan assets as of March 28, 2014	$	3,345	$	2,824



U.S. Pension and Other Postretirement Benefit Plans
(Amounts in millions)		Level 1		Level 2		Level 3		Total
Equity:
	Global/International	$	38	$	—	$	—	$	38
	U.S. Domestic Stocks	256		—		—		256
	Domestic Equity commingled funds	5		577		—		582
	Global Equity commingled funds	—		312		—		312
Fixed Income:
	U.S. Treasuries	—		57		—		57
	U.S. Government Agencies	—		3		—		3
	Non U.S. Government	—		2		—		2
	Mortgage and asset backed securities	—		89		—		89
	Corporate	—		54		—		54
	Fixed income commingled funds	3		771		—		774
Alternatives:
	Hedge Funds ^(a)	—		—		328		328
	Other Alternatives^(b)	324		499		—		823
Cash and Cash equivalents		—		54		—		54
Total		$	626	$	2,418	$	328	$	3,372
Unsettled Trade Receivable and Accrued Income								28
Unsettled Trade Payable and Accrued Expenses								(55		)
Fair value of assets for U.S. pension and postretirement medical plans as of March 28, 2014								$	3,345

(a) Represents investments in diversified fund of hedge funds in which the CSC pension plans are the sole investor.

(b) Represents institutional funds consisting mainly of equities, bonds, or commodities.

Below is a reconciliation of the assets valued using significant unobservable inputs (Level 3):



(Amounts in millions)	Level 3
Beginning balance as of March 29, 2013	$	—
Actual return on plan assets held at the reporting date	(2		)
Actual return on plan assets sold during the period	—
Purchases, sales, and settlements	330
Transfers in and / or out of Level 3	—
Changes due to exchange rates	—
Ending balance as of March 28, 2014	$	328



Non-U.S. Pension Plan Assets
(Amounts in millions)		Level 1		Level 2		Level 3		Total
Equity:
	U.S./North American Equity commingled funds	$	—	$	47	$	—	$	47
	Global/International Equity commingled funds	—		899		—		899
	Global equity mutual funds	—		81		—		81
Fixed Income:
	Fixed income commingled funds	—		951		—		951
Insurance contracts		—		161		6		167
Alternatives:
Hedge Funds ^(a)		—				177		177
Other Alternatives ^(b)		—		460		26		486
Cash and cash equivalents		—		16		—		16
Total		$	—	$	2,615	$	209	$	2,824
Unsettled Trades								—
Fair value of non-U.S. pension assets as of March 28, 2014								$	2,824

(a) Represents investments in diversified fund of hedge funds.

(b) Represents real estate, liability-driven investments, and other commingled funds consisting mainly of equities, bonds, or commodities.

Below is a reconciliation of the assets valued using significant unobservable inputs (Level 3):



	Non-U.S. Plans Insurance Contracts
(Amounts in millions)	Non-U.S. Plans Insurance Contracts
Beginning balance as of March 29, 2013	$	6
Actual return on plan assets held at the reporting date	—
Actual return on plan assets sold during the period	—
Purchases, sales, and settlements	164
Transfers in and / or out of Level 3	32
Changes due to exchange rates	7
Ending balance as of March 28, 2014	$	209

The fair value of our pension plan assets and postretirement benefit plans by investment category and the corresponding level within the fair value hierarchy as of March 29, 2013, are as follows:



(Amounts in millions)	U.S. Plans		Non-U.S. Plans
Fair value of pension plan assets	$	3,125	$	2,550
Fair value of other postretirement benefit plan assets	84		—
Total fair value of retirement plan assets as of March 29, 2013	$	3,209	$	2,550



U.S. Pension and Other Postretirement Benefit Plans
(Amounts in millions)		Level 1		Level 2		Level 3		Total
Equity:
	Global/International	$	31	$	38	$	—	$	69
	U.S. Domestic Stocks	51		—		—		51
	Domestic Equity commingled funds	5		1,325		—		1,330
	Global Equity commingled funds	—		380		—		380
	Global Equity mutual funds	83		—		—		83
Fixed Income:
	U.S. Treasuries	—		87		—		87
	U.S. Government Agencies	—		11		—		11
	Non U.S. Government	—		5		—		5
	Mortgage and asset backed securities	—		131		—		131
	Corporate	—		74		—		74
	Fixed income commingled funds	3		959		—		962
Cash and cash equivalents		8		117		—		125
Total		$	181	$	3,127	$	—	$	3,308
Unsettled Trade Receivable and Accrued Income								79
Unsettled Trade Payable and Accrued Expenses								(178		)
Fair value of assets for U.S. pension and postretirement medical plans as of March 29, 2013								$	3,209



NON-U.S. PENSION PLAN ASSETS
(Amounts in millions)		Level 1		Level 2		Level 3		Total
Equity:
	U.S./North American Equity commingled funds	$	—	$	54	$	—	$	54
	Global/International Equity commingled funds	—		915		—		915
	Global equity mutual funds	—		—		—		—
Fixed Income:
	Fixed income commingled funds	—		1,311		—		1,311
Insurance contracts		—		157		6		163
Alternatives		—		83		—		83
Cash equivalents		—		25		—		25
Total		$	—	$	2,545	$	6	$	2,551
Unsettled Trades								(1		)
Fair value of non-U.S. pension assets as of March 29, 2013								$	2,550

Below is a reconciliation of the assets valued using significant unobservable inputs (Level 3):



	Non-U.S. Plans Insurance Contracts
(Amounts in millions)	Non-U.S. Plans Insurance Contracts
Beginning balance as of March 30, 2012	$	5
Asset acquired in purchase of iSOFT
Actual return on plan assets relating to assets still held at the reporting date	1
Actual return on plan assets relating to assets sold during the period	—
Purchases, sales, and settlements	—
Transfers in and / or out of Level 3	—
Changes due to exchange rates	—
Ending balance as of March 29, 2013	$	6

The asset allocation of pension plans at March 28, 2014 and March 29, 2013, respectively, is as follows:



	U.S. Plans				Non-U.S. Plans
Asset Category	March 28, 2014		March 29, 2013		March 28, 2014		March 29, 2013
Equity securities	35	%	58	%	36	%	38	%
Debt securities	29	%	38	%	34	%	51	%
Alternatives	34	%	—	%	24	%	4	%
Cash and other	2	%	4	%	6	%	7	%
Total	100	%	100	%	100	%	100	%

The asset allocation for U.S. other postretirement benefit plans at March 28, 2014 and March 29, 2013, respectively, is as follows:



	Percentage of Plan Assets at Year End
Asset Category	March 28, 2014		March 29, 2013
Equity securities	59	%	29	%
Debt securities	38	%	19	%
Cash and other	3	%	52	%
Total	100	%	100	%

Return on Assets

The Company consults with internal and external advisors regarding the expected long-term rate of return on assets. In the U.S. and U.K., the Company uses a "building block" approach to compute the expected long-term rate of return of the major asset classes expected in each of the plans. CSC utilizes long-term, typically 30 years, asset class return assumptions provided by external advisors. Consideration is also given to the extent active management is employed in each asset class and also to management expenses. A single expected long-term rate of return is calculated for each plan by assessing the plan's expected asset allocation strategy, the benefits of diversification therefrom, historical excess returns from actively managed investments, and expected expenses. The resulting composite rate of return is reviewed by internal and external parties for reasonableness.

Retirement Plan Discount Rate

The U.S. discount rate assumption is prepared with a two-step process; the first step is a yield curve developed as of the measurement date using high-quality corporate bond yields. In step two, each plan's future cash flows are applied to the appropriate years on the yield curve and the weighted value of the cash flows is used to determine a single equivalent discount rate. In fiscal 2014, the discount rates were developed separately for each U.S. pension and other postretirement plan to the nearest basis point using a single yield curve, the Aon Hewitt AA Only Above Median Curve. This yield curve is a hypothetical AA or greater yield curve represented by a series of annualized individual spot discount rates going out 100 years. This curve provides a more transparent view to the underlying bonds and is available daily which provides for a discount rate to be calculated specific to the Company's fiscal year end. For years prior to fiscal 2013, the U.S. discount rates were determined using an average of the Citigroup yield curve and the AON Hewitt yield curve rounded to the nearest 10bps.

In fiscal 2013, the UK pension plans began using the AA Corporate Bond Mercer Pension Discount Yield Curve to set the discount rate. This yield curve is based on market data. Cash flow data is applied to yields of different durations to determine a single equivalent discount rate. The benefit of the Mercer Yield Curve over the iBoxx GBP Corporates AA +15 index is that it provides the flexibility to use plan specific cash flow information so that the resulting discounts rates reflect appropriate durations of the pension plan's liabilities rather than over a set time period of 15 years. For years prior to fiscal 2013, the U.K. discount rate assumption was set by reference to the yield on the iBoxx GBP AA rated +15 years corporate bond index with an appropriate adjustment for duration if necessary after considering yield curve models and conditions in credit markets.

Defined Contribution Plans

The Company sponsors defined contribution plans for substantially all U.S. employees and certain foreign employees.

The plans allow employees to contribute a portion of their earnings in accordance with specified guidelines. Effective January 1, 2014, matching contributions are made once annually in January following the end of the calendar year. In order to receive such contributions, a participant must be employed on December 31 of the plan year. However, if a participant retires (or should decease) from CSC prior to December 31, the participant will be eligible to receive matching contributions approximately 30 days following separation from service. The plan was also amended so participants vest after one year of service from a five-year graded vest. During fiscal 2014, fiscal 2013, and fiscal 2012, the Company contributed $179 million, $213 million, and $223 million, respectively. At March 28, 2014, plan assets included 9,378,161 shares of the Company’s common stock.

Deferred Compensation Plan

Effective August 14, 1995, the Company adopted the Computer Sciences Corporation Deferred Compensation Plan (the Plan). The Plan consists of two separate plans, one for the benefit of key executives and one for the benefit of non-employee directors. Pursuant to the Plan, certain management and highly compensated employees are eligible to defer all or a portion of their regular salary that exceeds the limitation set forth in Internal Revenue Section 401(a)(17) and all or a portion of their incentive compensation, and non-employee directors are eligible to defer up to 100% of their compensation. The liability, which is included in “Other long-term liabilities” under the Plan, amounted to $129 million as of March 28, 2014 and $125 million as of March 29, 2013. The Company’s expense under the Plan totaled $9 million, $8 million, and $8 million, for fiscal 2014, fiscal 2013, and fiscal 2012, respectively.

Multi-employer Pension Fund

In connection with certain multi-employer pension funds that are pursuant to collective bargaining agreements, the Company made contributions, generally at a stated hourly rate, to various multi-employer pension funds on behalf of its union-represented employees. All of these plans were within the Company's NPS segment. None of the contributions by the Company are individually significant to the multi-employer plans nor do they have a material impact on the Company's financial statements. The risks of participating in these multi-employer plans are different from single-employer plans. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be borne by the remaining participating employers. The Company's contributions for fiscal years 2014, 2013, and 2012 were $4 million, $11 million, and $11 million, respectively.