Pension Plans (Notes)

9 Months Ended

Jul. 04, 2015

Compensation and Retirement Disclosure [Abstract]

Pension Plans

14. Pension Plans

Our pension plans are described in more detail in Note M to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2014. In the first nine months of 2015, we contributed $20 million to a non-U.S. pension plan.

Termination of U.S. Pension Plan

We maintain a U.S. defined benefit pension plan (the Plan) that covers certain persons who were employees of Computervision Corporation (acquired by us in 1998). Benefits under the Plan were frozen in 1990. In the second quarter of 2014, we began the process of terminating the Plan. In the third quarter of 2014, we provided notice to plan participants of our intent to terminate the plan effective August 1, 2014 and in the second quarter of 2015 we provided a notice of plan benefits to participants. In March 2015, we received a favorable determination letter from the Internal Revenue Service with respect to the termination, and we expect to complete the termination process by September 30, 2015. In August 2015, lump sum distributions totaling $45 million were made to selected participants from plan assets in settlement of their liabilities and we purchased annuity contracts with an insurer for approximately $90 million to cover remaining liabilities of the plan including benefits for retirees currently receiving payments and vested participants who did not elect to receive a lump sum. In connection with settling the liabilities, we contributed $26 million to fully fund the Plan.

In the fourth quarter, upon settlement of the liabilities, we expect to recognize a settlement loss of $66 million, $47 million net of tax, including unamortized losses in accumulated other comprehensive income, based on the projected benefit obligations and assets measured as of the dates the settlements occur.