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.

The amortization of amounts related to unrecognized prior service (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,
	2015			2014			2015			2014			2015			2014
	(in millions)
Service cost benefits earned during the period	$	1		$	—		$	3		$	3		$	—		$	1
Interest costs on projected benefit obligations		4			4			11			13			2			1
Expected return on plan assets		(5	)		(5	)		(17	)		(19	)		—			—
Amortization of deferred losses		.			1			3			3			—			—
Amortization of prior service (credits)		—			—			—			—			(4	)		(3	)
Settlements, curtailments and other		—			—			—			—			—			—

Net periodic benefits costs	$	—		$	—		$	—		$	—		$	(2	)	$	(1	)


	Pension benefits
	Domestic						Foreign						Postretirement benefits
	For the nine months ended March 31,
	2015			2014			2015			2014			2015			2014
	(in millions)
Service cost benefits earned during the period	$	1		$	4		$	9		$	9		$	—		$	1
Interest costs on projected benefit obligations		12			12			37			38			5			5
Expected return on plan assets		(16	)		(13	)		(54	)		(56	)		—			—
Amortization of deferred losses		2			4			9			9			—			—
Amortization of prior service (credits)		—			—			—			—			(10	)		(10	)
Settlements, curtailments and other		—			4			—			—			—			—

Net periodic benefits costs	$	(1	)	$	11		$	1		$	—		$	(5	)	$	(4	)

During the nine months ended March 31, 2015 and 2014, the Company contributed approximately $13 million and $41 million, respectively, to its various pension and postretirement plans, of which $4 million and $13 million, respectively, were contributed in the third fiscal quarter. The contributions for the nine months ended March 31, 2014 included approximately $8 million paid to participants in connection with the termination of the LMG 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 Statement of Operations during the nine months ended March 31, 2014.

In the first quarter of fiscal 2014, the Company further reduced its Retirement benefit obligation by approximately $41 million due to changes made to the Company’s retiree medical plans. This reduction was recognized in other comprehensive income during the first quarter of fiscal 2014 and will be amortized over the remaining expected life of the plans’ participants as actuarially determined.