Postretirement Benefit Plans

3 Months Ended

Jun. 30, 2024

Retirement Benefits [Abstract]

7. POSTRETIREMENT BENEFIT PLANS

7. POSTRETIREMENT BENEFIT PLANS

The Company recognizes actuarial gains and losses and prior service costs in the condensed consolidated balance sheet and recognizes changes in these amounts during the year in which changes occur through other comprehensive (loss) income. The Company uses various assumptions when computing amounts relating to its defined benefit pension plan obligations and their associated expenses (including the discount rate and the expected rate of return on plan assets). Net actuarial gains and losses are amortized over periods of 15 years or less, which represent the group's average future service life of the employees or the group's average life expectancy.

Components of net periodic benefit cost for all of our postretirement benefit plans are shown in the table below.

	Pension Benefit Plans				Other Benefit Plans
	Three Months Ended June 30,				Three Months Ended June 30,
in millions	2024		2023		2024		2023
Service cost	$	5	$	5	$	—	$	—
Interest cost	19		19		1		1
Expected return on assets	(19)		(19)		—		—
Amortization — losses, net	—		(1)		—		—
Amortization — prior service credit, net	(1)		—		(1)		(1)
Net periodic benefit cost(1)	$	4	$	4	$	—	$	—

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(1)Service cost is included within cost of goods sold (exclusive of depreciation and amortization) and selling, general and administrative expenses, while all other cost components are recorded within other expenses (income), net.

The average expected long-term rate of return on all plan assets is 6.3% in fiscal 2025.

Employer Contributions to Plans

For pension plans, our policy is to fund an amount required to provide for contractual benefits attributed to service to date and amortize unfunded actuarial liabilities typically over periods of 15 years or less. We also participate in savings plans in Canada and the U.S., as well as defined contribution pension plans in the U.S., the U.K., Canada, Germany, Italy, Switzerland, and Brazil. We contributed the following amounts to all plans.

	Three Months Ended June 30,
in millions	2024		2023
Funded pension plans	$	23	$	2
Unfunded pension plans	4		4
Savings and defined contribution pension plans	18		16
Total contributions	$	45	$	22

During the remainder of fiscal 2025, we expect to contribute an additional $15 million to our funded pension plans, $13 million to our unfunded pension plans, and $43 million to our savings and defined contribution pension plans.