NOTE 11. PENSION AND OTHER POSTRETIREMENT BENEFITS

The Company provides pension, postretirement health care, defined contribution and medical benefits primarily in the U.S., U.K. and Australia to the Company’s eligible employees and retirees. The Company funds amounts, at a minimum, in accordance with statutory requirements for all plans. Plan assets consist principally of common stocks, marketable bonds and government securities.

Costs associated with the Company’s benefit plans are included in net periodic benefit costs—Direct below. Prior to the Separation, certain of the Company’s U.S. employees participated in defined benefit pension plans that were sponsored by 21st Century Fox, which included participants from other 21st Century Fox subsidiaries and these costs are included in the net periodic benefit costs—Employees participation in 21st Century Fox plans below. In addition, a portion of the benefit plan costs were allocated to the Company and these costs are included in net periodic benefit costs—Corporate allocations. Benefit costs related to employee participation in 21st Century Fox plans and Corporate allocations did not recur in periods subsequent to the Separation.

The amortization of amounts related to unrecognized prior service costs (credits) and deferred losses were reclassified out of other comprehensive income as a component of net periodic benefit costs. In addition, approximately nil and $1 million related to settlements, curtailments and other during the three and nine months ended March 31, 2014 was reclassified out of other comprehensive income as a component of net periodic benefit costs.

The components of net periodic benefits costs were as follows:


	Pension benefits
	Domestic						Foreign						Postretirement benefits
	For the three months ended March 31,
	2014			2013			2014			2013			2014			2013
	(in millions)
Service cost benefits earned during the period	$	—		$	—		$	3		$	4		$	1		$	—
Interest costs on projected benefit obligations		4			3			13			12			1			2
Expected return on plan assets		(5	)		(4	)		(19	)		(16	)		—			—
Amortization of deferred losses		1			—			3			4			—			—
Amortization of prior service costs (credits)		—			—			—			—			(3	)		(3	)
Settlements, curtailments and other		—			—			—			1			—			—

Net periodic benefits costs- Direct		—			(1	)		—			5			(1	)		(1	)
Employees participation in 21st Century Fox plans		—			2			—			—			—			—
Corporate allocations		—			1			—			—			—			—

Net periodic benefits costs- Total	$	—		$	2		$	—		$	5		$	(1	)	$	(1	)


	Pension benefits
	Domestic						Foreign						Postretirement benefits
	For the nine months ended March 31,
	2014			2013			2014			2013			2014			2013
	(in millions)
Service cost benefits earned during the period	$	4		$	—		$	9		$	14		$	1		$	1
Interest costs on projected benefit obligations		12			8			38			38			5			6
Expected return on plan assets		(13	)		(10	)		(56	)		(48	)		—			—
Amortization of deferred losses		4			2			9			12			—			2
Amortization of prior service costs (credits)		—			—			—			—			(10	)		(9	)
Settlements, curtailments and other		4			—			—			6			—			—

Net periodic benefits costs- Direct		11			—			—			22			(4	)		—
Employees participation in 21st Century Fox plans		—			11			—			—			—			—
Corporate allocations		—			3			—			—			—			—

Net periodic benefits costs- Total	$	11		$	14		$	—		$	22		$	(4	)	$	—

During the nine months ended March 31, 2014 and 2013, the Company contributed approximately $41 million and $63 million to its various pension and postretirement plans, respectively, of which $13 million and $37 million, respectively, was contributed in the third fiscal quarter of 2014 and 2013, respectively. The contributions for the nine months ended March 31, 2014 included approximately $8 million paid to participants in connection with the termination of the Local Media Group non-qualified pension plans. In addition, during the first quarter of fiscal 2014 approximately $37 million of contributions were made by a third party in connection with the sale of a business in a prior period on behalf of former employees who retained certain pension benefits. This resulted in a gain being recognized in Other, net in the Statements of Operations during the nine months ended March 31, 2014.

The Company further reduced its Retirement benefit obligation by approximately $69 million during the nine months ended March 31, 2014. Of the total reduction, $41 million was due to changes made to the Company’s retiree medical plans during the first quarter of fiscal 2014. The remaining $28 million resulted from an amendment to freeze future benefits for certain domestic pension benefit plans in the third quarter of fiscal 2014. These reductions were recognized in other comprehensive income during the period in which the plan changes were made and will be amortized over the remaining expected life of the plans’ participants as actuarially determined.