Pension and Other Benefit Plans

9 Months Ended

Dec. 31, 2021

Retirement Benefits [Abstract]

Pension and Other Benefit Plans

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, except where locally required; 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 components of net periodic pension income were:

	Three Months Ended				Nine Months Ended
(in millions)	December 31, 2021		December 31, 2020		December 31, 2021		December 31, 2020
Service cost	$	22	$	23	$	67	$	68
Interest cost	50		62		153		181
Expected return on assets	(139)		(163)		(432)		(477)
Amortization of prior service costs	(2)		(2)		(6)		(6)
Contractual termination benefit	(3)		—		(2)		3
Curtailment gain	—		—		—		(9)
Recognition of actuarial loss	7		—		7		11
Net periodic pension income	$	(65)	$	(80)	$	(213)	$	(229)

The service cost component of net periodic pension income is presented in costs of services and selling, general and administrative and the other components of net periodic pension income are presented in other income, net.

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 HPE’s 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 and the DXC Technology Matched Asset Plan. Neither plan provides for employer contributions. Starting on April 3, 2017, the ES DCP no longer admits 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, amounted to $41 million as of December 31, 2021 and $42 million as of March 31, 2021.