Pension and Other Benefit Plans (Tables)

12 Months Ended

Mar. 31, 2019

Projected Benefit Obligations



	As of
(in millions)	March 31, 2019			March 31, 2018
Projected benefit obligation at beginning of year	$	11,384		$	3,297
Benefit obligation assumed as a result of the HPES merger	—			7,351
Service cost	88			121
Interest cost	253			249
Plan participants’ contributions	13			16
Amendments	27			(44		)
Business/contract acquisitions/divestitures	—			69
Contractual termination benefits	3			13
Settlement/curtailment	(49		)	(65		)
Actuarial loss (gain)	286			(332		)
Benefits paid	(344		)	(447		)
Foreign currency exchange rate changes	(818		)	1,170
Other	173			(14		)
Projected benefit obligation at end of year	$	11,016		$	11,384

The following table summarizes the weighted average rates used in the determination of the Company’s benefit obligations:



	Fiscal Years Ended
	March 31, 2019		March 31, 2018
Discount rate	2.4	%	2.5	%
Rates of increase in compensation levels	2.0	%	2.0	%

Fair Value of Plan Assets and Funded Status



	As of
(in millions)	March 31, 2019			March 31, 2018
Fair value of plan assets at beginning of year	$	11,574		$	2,998
Assets assumed as a result of the HPES merger	—			7,411
Actual return on plan assets	700			371
Employer contribution	78			83
Plan participants’ contributions	13			16
Benefits paid	(344		)	(447		)
Business/contract acquisitions/divestitures	—			(2		)
Contractual termination benefits	17			4
Plan settlement	(38		)	(22		)
Foreign currency exchange rate changes	(837		)	1,176
Other	180			(14		)
Fair value of plan assets at end of year	$	11,343		$	11,574

Funded status at end of year	$	327		$	190

Selected Information



	As of
(in millions)	March 31, 2019			March 31, 2018
Other assets	$	1,157		$	1,118
Accrued expenses and other current liabilities	(20		)	(28		)
Non-current pension obligations	(790		)	(879		)
Other long-term liabilities - OPEB	(20		)	(21		)
Net amount recorded	$	327		$	190

Accumulated benefit obligation	$	10,893		$	11,241



	Benefit Plans with Projected Benefit Obligation in Excess of Plan Assets				Benefit Plans with Accumulated Benefit Obligation in Excess of Plan Assets
(in millions)	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Projected benefit obligation	$	2,329	$	2,488	$	2,070	$	2,250
Accumulated benefit obligation	$	2,230	$	2,363	$	2,004	$	2,162
Fair value of plan assets	$	1,494	$	1,552	$	1,255	$	1,338

Net Periodic Pension Cost



	Fiscal Years Ended
(in millions)	March 31, 2019			March 31, 2018			March 31, 2017
Service cost	$	88		$	121		$	23
Interest cost	253			249			82
Expected return on assets	(570		)	(534		)	(161		)
Amortization of transition obligation	—			1			1
Amortization of prior service costs	(15		)	(18		)	(17		)
Contractual termination benefit	3			13			1
Settlement/curtailment gain	(10		)	(42		)	—
Recognition of actuarial loss (gain)	153			(178		)	87
Net periodic pension (income) expense	$	(98	)	$	(388	)	$	16

Estimated Future Contributions and Benefits Payments

The weighted-average rates used to determine net periodic pension cost were:



	Fiscal Years Ended
	March 31, 2019		March 31, 2018		March 31, 2017
Discount or settlement rates	2.5	%	2.5	%	3.1	%
Expected long-term rates of return on assets	5.3	%	4.9	%	6.3	%
Rates of increase in compensation levels	2.1	%	2.7	%	2.6	%

The following is a summary of amounts in AOCI, before tax effects:

Changes in fair value measurements of level 3 investments for the defined benefit plans were as follows:



(in millions)
Balance as of April 1, 2017	$	348
Actual return on plan assets held at the reporting date	34
Purchases, sales and settlements	443
Changes due to exchange rates	62
Balance as of March 31, 2018	887
Actual return on plan assets held at the reporting date	(13		)
Purchases, sales and settlements	217
Transfers in and / or out of Level 3	5
Changes due to exchange rates	(64		)
Balance as of March 31, 2019	$	1,032

Fair Value of Plan Assets

The tables below set forth the fair value of plan assets by asset category within the fair value hierarchy:



		As of March 31, 2019
(in millions)		Level 1		Level 2		Level 3		Total
Equity:
	US Domestic Stocks	$	1	$	—	$	—	$	1
	Global Stocks	10		13		—		23
	Global/International Equity commingled funds	399		2,156		—		2,555
	Global equity mutual funds	49		325		—		374
	U.S./North American Equity commingled funds	1		10		—		11
Fixed Income:
	Non-U.S. Government funds	215		29		—		244
	Fixed income commingled funds	6		4,807		—		4,813
	Fixed income mutual funds	2		1		—		3
	Corporate bonds	—		2		—		2
Alternatives:
	Other Alternatives ⁽¹⁾	6		1,880		982		2,868
	Hedge Funds⁽²⁾	—		8		—		8
Other Assets		—		—		36		36
Insurance contracts		—		108		14		122
Cash and cash equivalents		99		184		—		283
Totals		$	788	$	9,523	$	1,032	$	11,343



		As of March 31, 2018
(in millions)		Level 1		Level 2		Level 3		Total
Equity:
	Global/International Equity commingled funds	$	465	$	1,978	$	—	$	2,443
	Global equity mutual funds	8		333		—		341
	U.S./North American Equity commingled funds	3		46		—		49
Fixed Income:
	U.S. Government funds	—		1		—		1
	Non-U.S. Government funds	2		54		—		56
	Fixed income commingled funds	3		6,092		—		6,095
	Fixed income mutual funds	3		—		—		3
Alternatives:
	Other Alternatives ⁽¹⁾	4		1,228		874		2,106
	Hedge Funds⁽²⁾	—		2		—		2
Other Assets		—		—		3		3
Insurance contracts		—		160		10		170
Cash and cash equivalents		300		5		—		305
Totals		$	788	$	9,899	$	887	$	11,574

⁽¹⁾ Represents real estate and other commingled funds consisting mainly of equities, bonds, or commodities.

⁽²⁾ Represents investments in diversified fund of hedge funds.