Pension and Other Post-Retirement Benefit Plans

3 Months Ended

Jul. 03, 2015

Pension And Other Benefit Plans [Abstract]

Pension and Other Post-Retirement 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. The net periodic pension expense (income) 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 3, 2015			July 4, 2014			July 3, 2015			July 4, 2014
Service cost	$	1		$	1		$	6		$	6
Interest cost	32			38			23			31
Expected return on assets	(54		)	(61		)	(45		)	(47		)
Amortization of prior service (credit)	—			—			(3		)	(2		)
Recognition of actuarial loss	—			1			—			—
Settlement/ curtailment loss	—			2			—			—
Net periodic pension (income)	$	(21	)	$	(19	)	$	(19	)	$	(12	)

The weighted-averages of the assumptions used to determine net periodic pension cost for fiscal 2016 and fiscal 2015 are as follows.

	U.S. Plans				Non-U.S. Plans
Fiscal Year End	2016		2015		2016		2015
Discount or settlement rates	3.9	%	4.5	%	3.0	%	4.2	%
Expected long-term rates of return on assets	7.9	%	7.6	%	6.3	%	6.5	%
Rates of increase in compensation levels	4.4	%	4.3	%	2.8	%	3.4	%

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 fair value of actuarial PBO of $1 million, increasing the plan’s unfunded obligations.

The Company contributed $13 million to the defined benefit pension plans during the first quarter of fiscal 2016. The Company expects to contribute an additional $47 million during the remainder of fiscal 2016.

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

	Quarter Ended
(Amounts in millions)	July 3, 2015			July 4, 2014
Service cost	$	—		$	1
Interest cost	1			2
Expected return on assets	(2		)	(1		)
Amortization of prior service (credit)	(6		)	(1		)
Net periodic post-retirement expense (income)	$	(7	)	$	1

The weighted-averages of the assumptions used to determine net periodic benefit cost for fiscal 2016 and 2015 are as follows.

Fiscal Year End	2016		2015
Discount or settlement rates	3.7	%	4.2	%
Expected long-term rates of return on assets	7.7	%	7.5	%

The Company contributed $1 million to the other post-retirement benefit plans during the first quarter of fiscal 2016. The Company expects to contribute an additional $1 million during the remainder of fiscal 2016.