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 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)	October 2, 2015			October 3, 2014			October 2, 2015			October 3, 2014
Service cost	$	1		$	1		$	7		$	6
Interest cost	32			38			23			30
Expected return on assets	(54		)	(60		)	(45		)	(47		)
Amortization of transition obligation	—			—			—			1
Amortization of prior service credit	—			—			(2		)	(4		)
Contractual termination benefits	—			—			—			(7		)
Net periodic pension benefit	$	(21	)	$	(21	)	$	(17	)	$	(21	)



	Six Months Ended
	U.S. Plans						Non-U.S. Plans
(Amounts in millions)	October 2, 2015			October 3, 2014			October 2, 2015			October 3, 2014
Service cost	$	2		$	2		$	13		$	12
Interest cost	64			76			46			61
Expected return on assets	(108		)	(121		)	(90		)	(94		)
Amortization of transition obligation	—			—			—			1
Amortization of prior service credit	—			—			(5		)	(6		)
Recognition of actuarial losses	—			1			—			—
Contractual termination benefits	—			—			—			(7		)
Settlement loss	—			2			—			—
Net periodic pension benefit	$	(42	)	$	(40	)	$	(36	)	$	(33	)

The weighted-averages of the assumptions used to determine net periodic pension benefit for the second quarter and the first six months of fiscal 2016 and fiscal 2015, are as follows.



	U.S. Plans				Non-U.S. Plans
	October 2, 2015		October 3, 2014		October 2, 2015		October 3, 2014
Discount or settlement rates	3.9	%	4.6	%	3.0	%	4.3	%
Expected long-term rates of return on assets	7.9	%	7.6	%	6.3	%	6.5	%
Rates of increase in compensation levels	4.4	%	4.4	%	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.

During the second quarter of fiscal 2015, CSC completed the sale of a German software business, which had a pension plan. The plan was remeasured as of the date of the sale, resulting in settlement costs totaling $3 million, which has been reported within discontinued operations.

The Company contributed $6 million and $19 million to the defined benefit pension plans during the second quarter and first six months ended October 2, 2015, respectively, which are predominately related to non-U.S. pension plans. The Company expects to contribute an additional $42 million during the remainder of fiscal 2016.

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



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



	Six Months Ended
(Amounts in millions)	October 2, 2015			October 3, 2014
Service cost	$	—		$	2
Interest cost	2			4
Expected return on assets	(3		)	(3		)
Amortization of prior service credit	(13		)	(1		)
Net provision for post-retirement (benefit) expense	$	(14	)	$	2

The weighted-averages of the assumptions used to determine net periodic post-retirement (benefit) expense for the second quarter and the first six months of fiscal 2016 and 2015, are as follows.



	Six Months Ended
	October 2, 2015		October 3, 2014
Discount or settlement rates	3.7	%	4.3	%
Expected long-term rates of return on assets	7.7	%	7.5	%

The Company contributed $0 million and $1 million to the other post-retirement benefit plans during the second quarter and first six months ended October 2, 2015, respectively. The Company expects to contribute an additional $1 million during the remainder of fiscal 2016.