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Pension and Other Benefit Plans (Tables)

12 Months Ended

Mar. 31, 2021

Projected Benefit Obligations



	As of
(in millions)	March 31, 2021		March 31, 2020
Projected benefit obligation at beginning of year	$	10,150	$	11,016
Service cost	91		92
Interest cost	245		237
Plan participants’ contributions	31		30
Amendments	(9)		—
Business/contract acquisitions/divestitures	11		12
Contractual termination benefits	13		10
Settlement/curtailment	(37)		(60)
Actuarial loss (gain)	1,262		(362)
Benefits paid	(393)		(359)
Foreign currency exchange rate changes	1,084		(457)
Other	(12)		(9)
Projected benefit obligation at end of year	$	12,436	$	10,150

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


	Fiscal Years Ended
	March 31, 2021		March 31, 2020
Discount rate	2.0	%	2.4	%
Rates of increase in compensation levels	2.5	%	1.6	%
Interest Crediting Rate	4.0	%	N/A

Fair Value of Plan Assets and Funded Status



	As of
(in millions)	March 31, 2021		March 31, 2020
Fair value of plan assets at beginning of year	$	11,090	$	11,343

Actual return on plan assets	1,401		526
Employer contribution	117		108
Plan participants’ contributions	31		30
Benefits paid	(393)		(359)
Business/contract acquisitions/divestitures	—		7
Contractual termination benefits	7		15
Plan settlement	(31)		(63)
Foreign currency exchange rate changes	1,224		(507)
Other	(21)		(10)
Fair value of plan assets at end of year	$	13,425	$	11,090

Funded status at end of year	$	989	$	940

Selected Information



	As of
(in millions)	March 31, 2021		March 31, 2020
Other assets	$	1,884	$	1,735
Accrued expenses and other current liabilities	(81)		(16)
Non-current pension obligations	(796)		(761)
Other long-term liabilities - OPEB	(18)		(18)
Net amount recorded	$	989	$	940

Accumulated benefit obligation	$	12,346	$	10,072


	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, 2021		March 31, 2020		March 31, 2021		March 31, 2020
Projected benefit obligation	$	2,490	$	2,191	$	2,453	$	2,159
Accumulated benefit obligation	$	2,431	$	2,131	$	2,402	$	2,108
Fair value of plan assets	$	1,596	$	1,397	$	1,562	$	1,369

Net Periodic Pension Cost



	Fiscal Years Ended
(in millions)	March 31, 2021		March 31, 2020		March 31, 2019
Service cost	$	91	$	92	$	88
Interest cost	245		237		253
Expected return on assets	(659)		(651)		(570)
Amortization of transition obligation	—		—		—
Amortization of prior service costs	(8)		(9)		(15)

Contractual termination benefit	13		10		3
Settlement/curtailment (gain) loss	(18)		7		(10)
Recognition of actuarial loss (gain)	537		(252)		153
Net periodic pension expense (income)	$	201	$	(566)	$	(98)

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


	Fiscal Years Ended
	March 31, 2021		March 31, 2020		March 31, 2019
Discount or settlement rates	2.4	%	2.4	%	2.5	%
Expected long-term rates of return on assets	5.6	%	5.8	%	5.3	%
Rates of increase in compensation levels	1.7	%	2.0	%	2.1	%

Estimated Future Contributions and Benefits Payments

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

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, 2021
(in millions)		Level 1		Level 2		Level 3		Total
Equity:
	US Domestic Stocks	$	—	$	—	$	—	$	—
	Global Stocks	—		—		—		—
	Global/International Equity commingled funds	246		2,260		—		2,506
	Global equity mutual funds	—		—		—		—
	U.S./North American Equity commingled funds	—		6		—		6
Fixed Income:
	Non-U.S. Government funds	—		—		—		—
	Fixed income commingled funds	1		42		15		58
	Fixed income mutual funds	—		4		—		4
	Corporate bonds	—		5,500		—		5,500
Alternatives:
	Other Alternatives (1)	1		2,706		1,930		4,637
	Hedge Funds(2)	—		10		1		11
Other Assets		70		65		85		220
Insurance contracts		4		380		—		384
Cash and cash equivalents		97		2		—		99
Totals		$	419	$	10,975	$	2,031	$	13,425


		As of March 31, 2020
(in millions)		Level 1		Level 2		Level 3		Total
Equity:
	US Domestic Stocks	$	—	$	3	$	—	$	3
	Global Stocks	—		3		—		3
	Global/International Equity commingled funds	315		1,763		—		2,078
	Global equity mutual funds	8		—		—		8
	U.S./North American Equity commingled funds	1		4		—		5
Fixed Income:
	Non-U.S. Government funds	136		—		—		136
	Fixed income commingled funds	55		71		—		126
	Fixed income mutual funds	3		—		—		3
	Corporate bonds	1		4,807		—		4,808
Alternatives:
	Other Alternatives (1)	—		2,038		1,297		3,335
	Hedge Funds(2)	2		7		2		11
Other Assets		87		229		59		375
Insurance contracts		—		136		—		136
Cash and cash equivalents		61		2		—		63
Totals		$	669	$	9,063	$	1,358	$	11,090

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

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

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


(in millions)
Balance as of March 31, 2019	$	1,032
Actual return on plan assets held at the reporting date	83
Purchases, sales and settlements	282
Transfers in and / or out of Level 3	8
Changes due to exchange rates	(47)
Balance as of March 31, 2020	1,358
Actual return on plan assets held at the reporting date	233
Purchases, sales and settlements	279
Transfers in and / or out of Level 3	—
Changes due to exchange rates	161
Balance as of March 31, 2021	$	2,031

Plan Asset Allocations