Employee Benefit Plans and Postretirement Health Care and Life Insurance Benefits

12 Months Ended

Mar. 31, 2013

Compensation and Retirement Disclosure [Abstract]

EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT HEALTH CARE AND LIFE INSURANCE BENEFITS

EMPLOYEE BENEFIT PLANS AND POSTRETIREMENT HEALTH CARE AND LIFE INSURANCE BENEFITS

In the U.S., the Company has a noncontributory defined benefit pension plan that, while currently frozen, covers substantially all hourly and salaried employees. In Europe and ROW, the Company sponsors several defined benefit plans that cover substantially all employees who are not covered by statutory plans. For defined benefit plans, charges to expense are based upon underlying assumptions established by the Company in consultation with its actuaries. In most cases, the Europe and ROW defined benefit plans are not required to be funded.

The Company also has defined contribution plans in North America, Europe, and ROW with related expense of $21.8 million, $19.3 million, and $8.8 million, for fiscal 2013, 2012, and 2011, respectively.

The Company provides certain retiree health care and life insurance benefits to a limited number of employees. The Company accrues the estimated cost of providing post-retirement benefits during the employees’ applicable years of service.

The following tables set forth the plans’ funded status and the amounts recognized in the Company’s Consolidated Financial Statements at March 31, 2013 and 2012:

Pension Benefits:
	Fiscal Year Ended
	March 31, 2013			March 31, 2012
	(In thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	686,725		$	633,486
Service cost	2,384			2,231
Interest cost	29,711			33,076
Actuarial loss (gain)	31,284			65,599
Plan participants’ contributions	221			258
Benefits paid	(35,392		)	(35,846		)
Currency translation	(13,586		)	(9,823		)
Settlements and other	(3,812		)	(2,256		)
Benefit obligation at end of period	$	697,535		$	686,725
Change in plan assets:
Fair value of plan assets at beginning of period	$	472,316		$	444,079
Actual return on plan assets	47,348			39,560
Employer contributions	25,400			27,267
Plan participants’ contributions	221			258
Benefits paid	(35,392		)	(35,846		)
Currency translation	(8,505		)	(746		)
Settlements and other	(3,811		)	(2,256		)
Fair value of plan assets at end of period	$	497,577		$	472,316
Reconciliation of funded status:
Benefit obligation at end of period	$	697,535		$	686,725
Fair value of plan assets at end of period	497,577			472,316
Funded status	$	(199,958	)	$	(214,409	)
Amounts recognized in Statement of Financial Position:
Noncurrent other assets	$	17,655		$	7,474
Accrued expenses	(8,340		)	(8,822		)
Noncurrent retirement obligations	(209,273		)	(213,061		)
Net amount recognized at end of period	$	(199,958	)	$	(214,409	)
Amounts recognized in accumulated other comprehensive loss:
Prior service cost	$	799		$	896
Net actuarial loss	108,916			98,501
Net amount recognized in accumulated other comprehensive loss	$	109,715		$	99,397

Other Post-Retirement Benefits:
	Fiscal Year Ended
	March 31, 2013			March 31, 2012
	(in thousands)
Change in benefit obligation:
Benefit obligation at beginning of period	$	25,153		$	23,332
Service cost	700			516
Interest cost	1,046			1,123
Actuarial loss	1,097			2,467
Plan participants’ contributions	120			115
Benefits paid	(1,859		)	(2,132		)
Currency translation	(232		)	(268		)
Benefit obligation at end of period	$	26,025		$	25,153
Change in plan assets:
Fair value of plan assets at beginning of period	$	—		$	—
Employer contributions	1,739			2,017
Plan participants’ contributions	120			115
Benefits paid	(1,859		)	(2,132		)
Fair value of plan assets at end of period	$	—		$	—
Reconciliation of funded status:
Benefit obligation at end of period	$	26,025		$	25,153
Fair value of plan assets at end of period	—			—
Funded status	$	(26,025	)	$	(25,153	)
Amounts recognized in statement of financial position:
Accrued expenses	$	(1,894	)	$	(1,902	)
Noncurrent retirement obligations	(24,131		)	(23,251		)
Net amount recognized at end of period	$	(26,025	)	$	(25,153	)
Amounts recognized in accumulated other comprehensive (income) loss:
Prior service credit	$	(2,950	)	$	(3,440	)
Net actuarial loss	10,478			10,130
Net amount recognized in accumulated other comprehensive loss:	$	7,528		$	6,690

Disclosure Assumptions:	Pension				Other Post-Retirement
	Benefits				Benefits
Weighted-average assumptions as of:	March 31, 2013		March 31, 2012		March 31, 2013		March 31, 2012
Discount rate	4.2	%	4.5	%	4.0	%	4.3	%
Rate of compensation increase	2.5	%	2.5	%	n/a		n/a
Expense Assumptions:	Pension						Other Post-Retirement
	Benefits / Expense						Benefits / Expense
Weighted-average assumptions for:	FY 2013		FY 2012		FY 2011		FY 2013		FY 2012		FY 2011
Discount rate	4.5	%	5.4	%	5.5	%	4.3	%	5.1	%	5.7	%
Expected return on plan assets	6.2	%	7.1	%	7.2	%	n/a		n/a		n/a
Rate of compensation increase	2.5	%	2.6	%	2.9	%	n/a		n/a		n/a

For fiscal year 2013 pension benefit expense, the Company assumed an expected weighted average return on plan assets of 6.2%. In developing this rate assumption, the Company evaluated input from third-party pension plan asset managers, including their review of asset class return expectations and long-term inflation assumptions.

The changes in plan assets and benefit obligations recognized in other comprehensive income (loss) at March 31, 2013 are as follows:

	Pension Benefits			Other Post Retirement Benefits
	(in thousands)
Net loss arising during the year	$	12,948		$	1,097
Net prior service cost during the year	(62		)	490
Net loss recognized during the year	(2,172		)	(642		)
Exchange rate loss recognized during the year	(396		)	(107		)
Total	$	10,318		$	838

The amounts in accumulated other comprehensive loss expected to be amortized from accumulated other comprehensive income into net periodic benefit cost in the next fiscal year are as follows:

	Pension Benefits		Other Post Retirement Benefits
	(in thousands)
Amortization of:
Prior service cost/(credit)	$	62	$	(490	)
Net loss	3,118		682
Total	$	3,180	$	192

Net Periodic Benefit Cost

The following tables set forth the plans’ expenses recognized in the Company’s Consolidated Financial Statements:

	Pension Benefits
	Fiscal Year Ended
	March 31, 2013			March 31, 2012			March 31, 2011
	(In thousands)
Components of net periodic benefit cost:
Service cost	$	2,384		$	2,231		$	3,168
Interest cost	29,711			33,076			33,357
Expected return on plan assets	(29,012		)	(31,214		)	(28,862		)
Amortization of:
Prior service cost	62			88			221
Actuarial loss	2,019			665			1,037
Net periodic benefit cost	$	5,164		$	4,846		$	8,921

The above excludes the impact of settlement and curtailment net (loss) gain of $(0.2) million, $0.5 million, and $1.4 million in fiscal 2013, 2012, and 2011, respectively.

	Other Post-Retirement Benefits
	Fiscal Year Ended
	March 31, 2013			March 31, 2012			March 31, 2011
	(In thousands)
Components of net periodic benefit cost:
Service cost	$	700		$	516		$	185
Interest cost	1,046			1,123			1,020
Amortization of:
Prior service cost	(490		)	(490		)	(490		)
Actuarial loss (gain)	642			498			110
Net periodic benefit cost	$	1,898		$	1,647		$	825

The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $553.6 million, $548.0 million and $336.0 million, respectively, as of March 31, 2013 and $529.5 million, $524.3 million and $307.7 million, respectively, as of March 31, 2012.

The accumulated benefit obligation for the Company’s pension plans was $690.5 million as of March 31, 2013. Expected future benefit payments are as follows:

			Other Post- Retirement
Fiscal Year	Pension Benefits		Gross Expected Benefit Payments
	(In thousands)
2014	$	40,931	$	1,894
2015	37,012		1,815
2016	37,893		1,777
2017	38,467		1,767
2018	40,125		1,725
2019 to 2023	207,940		7,826

Pension Plan Investment Strategy

The Company’s pension plans are invested in a diversified portfolio of investments consisting primarily of equity and fixed income securities. The target asset allocation for the plan portfolio is based on a combination of financial, demographic, and actuarial considerations, along with the advice of the Company’s investment advisory firm. The plans’ current target allocation is a mix of approximately 40% equity investments and 60% long duration fixed-income investments. The Company believes this target allocation will be effective in achieving the plans’ long-term investment objectives of:

• protecting the plan’s funded status from volatility

• optimizing the long-term return on plan assets sufficient to accommodate current and future pension obligations

• maintaining an acceptable level of risk for each asset category

The Company utilizes a principal investment manager to actively manage the assets of its U.S. plan. Based on its underlying risk parameters, the Company has established investment guidelines for each investment manager within which they have agreed to operate. These guidelines include criteria for identifying eligible and ineligible securities as well as diversification criteria. In addition, investment managers are required to seek approval prior to making investments in certain commodity contracts, illiquid investments, or futures or options strategies, and are prohibited from engaging in certain transactions including the short selling of securities, borrowing money, or engaging in futures or options strategies for purposes of speculation or leverage.

The Company’s non-U.S. pension plans are also managed by investment managers who are appointed by the trustees of those plans. The investment strategies of those plans are similar to those of the U.S. plan, but are in some instances influenced by local laws and regulations.

The asset allocation for the Company’s pension plans by asset category are as follows:

	Percentage of Plan Assets at Year End
	March 31, 2013		March 31, 2012
Cash and cash equivalents	1	%	1	%
Equity securities	40	%	39	%
Fixed income securities	57	%	59	%
Other	2	%	1	%
Total	100	%	100	%

Plan Contributions

The estimated fiscal 2014 pension plan contributions are $14.8 million and other post-retirement contributions are $1.9 million. Cash contributions to the Company’s pension plans are generally made in accordance with minimum regulatory requirements.

The Company expects that cumulative contributions to its pension plans will total approximately $98.3 million from fiscal 2014 to fiscal 2018, and contributions to its other post retirement benefit plans will total approximately $9.0 million from fiscal 2014 to fiscal 2018.

Health Care Cost Trends

Assumed health care cost trend rates have a significant effect on the amounts reported for other post-retirement benefits. A one-percentage-point change in assumed health care cost trend rates would have the following effects:

	One Percentage- Point Increase		One Percentage- Point Decrease
	(In thousands)
Effect on total of service and interest cost components	$	348	$	263
Effect on the postretirement benefit obligation	$	2,798	$	2,281