Pension and Other Benefit Plans

The Company offers a number of pension and other post-retirement benefit ("OPEB") plans, life insurance benefits, deferred compensation and defined contribution plans. Most of the Company's pension plans are not admitting new participants; therefore, changes to pension liabilities are primarily due to market fluctuations of investments for existing participants and changes in interest rates.

Defined Benefit Plans

The Company sponsors a number of defined benefit and post-retirement medical benefit plans for the benefit of eligible employees. The benefit obligations of the Company's U.S. pension, U.S. OPEB, and non-U.S. OPEB represent an insignificant portion of the Company's pension and other post-retirement benefits. As a result, the disclosures below include the Company's U.S. and non-U.S. pension plans on a global consolidated basis.

The Company contributed $12 million and $52 million to the defined benefit pension and other post-retirement benefit plans during the three and nine months ended December 31, 2018, respectively. The Company expects to contribute an additional $30 million during the remainder of fiscal 2019, which does not include certain salary deferral programs and future potential termination benefits related to the Company's potential restructuring activities.

The components of net periodic pension income were:



	Three Months Ended						Nine Months Ended
(in millions)	December 31, 2018			December 31, 2017			December 31, 2018			December 31, 2017
Service cost	$	21		$	30		$	66		$	96
Interest cost	62			63			190			184
Expected return on assets	(139		)	(133		)	(426		)	(393		)
Amortization of prior service costs	(4		)	(5		)	(11		)	(13		)
Contractual termination benefit	2			10			2			21
Curtailment gain	—			(40		)	(1		)	(40		)
Recognition of actuarial loss	—			23			—			23
Net periodic pension income	$	(58	)	$	(52	)	$	(180	)	$	(122	)

The service cost component of net periodic pension income is presented in cost of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net in the Company’s statements of operations. See Note 2 - "Recent Accounting Pronouncements," for further discussion of the updated guidance related to the presentation of net periodic pension cost.

The weighted-average rates used to determine net periodic pension cost for the three and nine months ended December 31, 2018 and December 31, 2017 were:



	December 31, 2018		December 31, 2017
Discount or settlement rates	2.3	%	2.4	%
Expected long-term rates of return on assets	5.3	%	5.0	%
Rates of increase in compensation levels	2.0	%	2.7	%

U.K. Pension Equalization Ruling

On October 26, 2018 the High Court of Justice in the United Kingdom (the "High Court") issued a ruling related to the equalization of benefits payable to men and women for the effect of guaranteed minimum pensions under U.K. defined benefit pension plans. As a result of this ruling, the Company estimated the impact of retroactively increasing benefits in its U.K. plans in accordance with the High Court ruling. The Company treated the additional benefits as a prior service cost which resulted in an increase to its projected benefit obligation and accumulated other comprehensive loss of $28 million. The Company will amortize this cost over the average remaining life expectancy of the U.K. participants. Given the immaterial effect on the U.K. plan's projected benefit, an interim remeasurement was not performed.

Deferred Compensation Plans

Effective as of the HPES Merger, DXC assumed sponsorship of the Computer Sciences Corporation Deferred Compensation Plan, which was renamed the “DXC Technology Company Deferred Compensation Plan” (the “DXC DCP”) and adopted the Enterprise Services Executive Deferred Compensation Plan (the “ES DCP”). Both plans are non-qualified deferred compensation plans maintained for a select group of management, highly compensated employees and non-employee directors.

The DXC DCP covers eligible employees who participated in CSC’s Deferred Compensation Plan prior to the HPES Merger. The ES DCP covers eligible employees who participated in the HPE Executive Deferred Compensation Plan prior to the HPES Merger. Both plans allow participating employees to defer the receipt of current compensation to a future distribution date or event above the amounts that may be deferred under DXC’s tax-qualified 401(k) plan, the DXC Technology Matched Asset Plan. Neither plan provides for employer contributions. As of April 3, 2017, the ES DCP does not admit new participants.

Certain management and highly compensated employees are eligible to defer all, or a portion of, their regular salary that exceeds the limitation set forth in Internal Revenue Section 401(a)(17) and all or a portion of their incentive compensation. Non-employee directors are eligible to defer up to 100% of their cash compensation. The liability, which is included in other long-term liabilities in the Company's balance sheets, was $61 million as of December 31, 2018 and $65 million as of March 31, 2018.