Pension Benefits (Tables)

12 Months Ended

Mar. 31, 2019

Schedule of net periodic expense for pension plans

The net periodic expense for our pension plans is as follows:



	U.S. Plans									Non-U.S. Plans
	Years Ended March 31,									Years Ended March 31,
(In millions)	2019			2018			2017			2019			2018			2017
Service cost - benefits earned during the year	$	—		$	3		$	5		$	15		$	15		$	15
Interest cost on projected benefit obligation	14			14			13			21			22			23
Expected return on assets	(16		)	(19		)	(15		)	(23		)	(26		)	(26		)
Amortization of unrecognized actuarial loss and prior service costs	5			6			11			4			5			4
Curtailment/settlement loss (gain)	4			2			—			1			1			(2		)
Net periodic pension expense	$	7		$	6		$	14		$	18		$	17		$	14

The net periodic (credit) expense for our postretirement welfare benefits is as follows:



	Years Ended March 31,
(In millions)	2019			2018			2017
Service cost - benefits earned during the year	$	1		$	1		$	1
Interest cost on accumulated benefit obligation	2			2			2
Amortization of unrecognized actuarial gain and prior service credit	(5		)	(6		)	(1		)
Net periodic postretirement (credit) expense	$	(2	)	$	(3	)	$	2

Schedule of changes in benefit obligations and plan assets for pension plans

Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows:



	U.S. Plans						Non-U.S. Plans
	Years Ended March 31,						Years Ended March 31,
(In millions)	2019			2018			2019			2018
Change in benefit obligations
Benefit obligation at beginning of period ⁽¹⁾	$	485		$	513		$	1,035		$	943
Service cost	—			3			15			15
Interest cost	14			14			21			22
Actuarial loss (gain)	4			1			35			(15		)
Benefits paid	(64		)	(44		)	(36		)	(42		)
Expenses paid	—			(2		)	(1		)	(1		)
Amendments	—			—			—			(2		)
Acquisitions	—			—			1			—
Foreign exchange impact and other	—			—			(80		)	115
Benefit obligation at end of period ⁽¹⁾	$	439		$	485		$	990		$	1,035

Change in plan assets
Fair value of plan assets at beginning of period	$	335		$	293		$	687		$	623
Actual return on plan assets	12			35			18			21
Employer and participant contributions	39			53			23			17
Benefits paid	(64		)	(44		)	(36		)	(42		)
Expenses paid	—			(2		)	(1		)	(1		)
Acquisitions	—			—			—			—
Foreign exchange impact and other	—			—			(49		)	69
Fair value of plan assets at end of period	$	322		$	335		$	642		$	687

Funded status at end of period	$	(117	)	$	(150	)	$	(348	)	$	(348	)

Amounts recognized on the balance sheet
Assets	$	7		$	10		$	20		$	19
Current liabilities	(115		)	(39		)	(13		)	(7		)
Long-term liabilities	(9		)	(121		)	(355		)	(360		)
Total	$	(117	)	$	(150	)	$	(348	)	$	(348	)


(1)	The benefit obligation is the projected benefit obligation.

Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for pension plans

The following table provides the projected benefit obligation, accumulated benefit obligation and fair value of plan assets for all our pension plans, including accumulated benefit obligation in excess of plan assets.



	U.S. Plans				Non-U.S. Plans
	March 31,				March 31,
(In millions)	2019		2018		2019		2018
Projected benefit obligation	$	439	$	485	$	990	$	1,035
Accumulated benefit obligation	439		485		949		990
Fair value of plan assets	322		335		642		687

Schedule of defined benefit plan amounts recognized in other comprehensive income (loss)

Amounts recognized in accumulated other comprehensive income (pre-tax) consist of:



	U.S. Plans				Non-U.S. Plans
	March 31,				March 31,
(In millions)	2019		2018		2019			2018
Net actuarial loss	$	133	$	134	$	186		$	162
Prior service credit	—		—		(4		)	(5		)
Total	$	133	$	134	$	182		$	157

Schedule of other changes in plan assets and benefit obligations recognized in other comprehensive income

Other changes in accumulated other comprehensive income (pre-tax) were as follows:



	U.S. Plans									Non-U.S. Plans
	Years Ended March 31,									Years Ended March 31,
(In millions)	2019			2018			2017			2019			2018			2017
Net actuarial loss (gain)	$	8		$	(15	)	$	(17	)	$	42		$	(11	)	$	47
Prior service credit	—			—			—			—			(2		)	—
Amortization of:
Net actuarial loss	(9		)	(8		)	(11		)	(5		)	(6		)	(4		)
Prior service credit (cost)	—			—			—			—			—			2
Foreign exchange impact and other	—			—			—			(12		)	19			(10		)
Total recognized in other comprehensive loss (income)	$	(1	)	$	(23	)	$	(28	)	$	25		$	—		$	35

Schedule of weighted-average assumptions used to estimate net periodic pension expense and actuarial present value of benefit obligations

Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows:



	U.S. Plans						Non-U.S. Plans
	Years Ended March 31,						Years Ended March 31,
	2019		2018		2017		2019		2018		2017
Net periodic pension expense
Discount rates	3.83	%	3.55	%	3.40	%	2.35	%	2.34	%	2.72	%
Rate of increase in compensation	N/A ⁽¹⁾		4.00		4.00		3.13		2.72		2.76
Expected long-term rate of return on plan assets	5.25		6.25		6.25		3.71		4.03		4.51
Benefit obligation
Discount rates	3.65	%	3.69	%	3.39	%	2.13	%	2.35	%	2.35	%
Rate of increase in compensation	N/A ⁽¹⁾		N/A ⁽¹⁾		4.00		3.18		2.59		3.18


(1)	This assumption is no longer needed in actuarial valuations as U.S. plans are frozen or have fixed benefits for the remaining active participants.

Summary of pension plan assets using fair value hierarchy by asset class

The following tables represent our pension plan assets as of March 31, 2019 and 2018, using the fair value hierarchy by asset class. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted quoted prices in active markets for identical assets. Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs.



	U.S. Plans								Non-U.S. Plans
	March 31, 2019								March 31, 2019
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	11	$	—	$	—	$	11	$	6	$	—	$	—	$	6
Equity securities:
Common and preferred stock	—		—		—		—		—		—		—		—
Equity commingled funds	—		—		—		—		62		82		—		144
Fixed income securities:
Government securities	—		33		—		33		4		135		—		139
Corporate bonds	—		273		—		273		8		18		—		26
Mortgage-backed securities	—		—		—		—		—		—		—		—
Asset-backed securities and other	—		5		—		5		—		—		—		—
Fixed income commingled funds	—		—		—		—		125		110		6		241
Other:
Real estate funds	—		—		—		—		2		3		—		5
Other	—		—		—		—		21		—		3		24
Total	$	11	$	311	$	—	$	322	$	228	$	348	$	9	$	585
Assets held at NAV practical expedient ⁽¹⁾
Equity commingled funds							—								8
Fixed income commingled funds							—								—
Real estate funds							—								—
Other							—								49
Total plan assets							$	322							$	642



	U.S. Plans								Non-U.S. Plans
	March 31, 2018								March 31, 2018
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash and cash equivalents	$	39	$	—	$	—	$	39	$	3	$	—	$	—	$	3
Equity securities:
Common and preferred stock	7		—		—		7		—		—		—		—
Equity commingled funds	—		—		—		—		41		94		—		135
Fixed income securities:
Government securities	—		85		—		85		5		113		—		118
Corporate bonds	—		58		—		58		114		136		—		250
Mortgage-backed securities	—		7		—		7		—		—		—		—
Asset-backed securities and other	—		21		—		21		—		—		—		—
Fixed income commingled funds	—		—		—		—		—		64		—		64
Other:
Real estate funds	—		—		—		—		2		—		—		2
Other	—		—		—		—		22		—		4		26
Total	$	46	$	171	$	—	$	217	$	187	$	407	$	4	$	598
Assets held at NAV practical expedient ⁽¹⁾
Equity commingled funds							54								27
Fixed income commingled funds							53								—
Real estate funds							11								—
Other							—								62
Total plan assets							$	335							$	687


(1)	Equity commingled funds, fixed income commingled funds, real estate funds and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments.