Pensions and Other Benefit Plans (Tables)

12 Months Ended

Mar. 31, 2019

The components of net periodic benefit cost recognized in other expense, net on our statement of operations consisted of the following:



	Fiscal Year Ended March 31, 2019
(in millions)	Defined Benefit Pension Plan			Retiree Medical Plan
Service cost	$	—		$	—
Interest cost	16			—
Expected return on plan assets	(24		)	(1		)
Recognition of net actuarial loss	35			—
Net periodic benefit cost	$	27		$	(1	)

The following table provides a reconciliation of the Company’s benefit obligation, plan assets and funded status:



	Fiscal Year Ended March 31, 2019
(in millions)	Defined Benefit Pension Plan			Retiree Medical Plan
Projected benefit obligation at beginning of year	$	—		$	—
Benefit obligation assumed as a result of the Mergers	482			7
Service cost	—			—
Interest cost	16			—
Actuarial loss	13			1
Plan participant contributions	—			1
Actual benefits paid	(20		)	(2		)
Projected benefit obligation at end of year	491			7

Fair value of plan assets at beginning of year	—			—
Assets assumed as a result of the Mergers	405			14
Actual return on plan assets	3			—
Plan participant contributions	—			1
Benefits paid	(20		)	(2		)
Fair value of plan assets at end of year	388			13
(Unfunded) funded status at end of year	$	(103	)	$	6

Schedule of Amounts Recognized on Balance Sheet for Pension Plan Liabilities

The following table provides amounts recognized on our balance sheet for the funded status:



	As of March 31, 2019
(in millions)	Defined Benefit Pension Plan		Retiree Medical Plan
Other assets	$	—	$	6
Other long-term liabilities	103		—

Schedule of Weighted-Average Rates Used to Determine Benefit Obligation

The weighted-average rates used to determine the benefit obligation at March 31, 2019 and net periodic benefit cost for the subsequent year were as follows:



	Defined Benefit Pension Plan		Retiree Medical Plan
Discount rate	4.1	%	4.0	%
Expected long-term rate of return on assets	7.8	%	6.7	%

Schedule of Allocation of Plan Assets

Pursuant to the investment policies established, the following target asset allocations have been established and will be utilized for the qualified defined benefit pension plan assets as of March 31, 2019:



Asset Category	Defined Benefit Pension Plan		Retiree Medical Plan
Cash	2.5	%	5.0	%
Equity funds	30.0	%	50.0	%
Fixed income	22.5	%	45.0	%
Real estate funds	10.0	%	—	%
Other	35.0	%	—	%

Schedule of Fair Value of Financial Assets for Pension and Postretirement Benefits

The following table presents the fair value of our defined benefit pension plan and retiree medical plan assets at March 31, 2019 by asset category and their level within the fair value hierarchy, which has three levels based on the uncertainty of the inputs used to determine fair value. Level 1 refers to fair values determined based on quoted prices in active markets for identical assets, Level 2 refers to fair values estimated using significant other observable inputs and Level 3 includes fair values estimated using significant unobservable inputs. Certain other investments are measured at fair value using their net asset value (“NAV”) per share and do not have readily determined values and are thus not subject to leveling in the fair value hierarchy. The NAV is the total value of the fund divided by the number of shares outstanding.



	March 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total
Investments measured at fair value:
Cash and cash equivalents	$	—	$	12	$	—	$	12
Equity funds	18		104		—		122
Fixed income	—		35		—		35
Real estate funds	—		—		53		53
Hedge funds	—		—		25		25
Total investments measured at fair value	$	18	$	151	$	78	247
Investments measured at NAV:
Equity funds							20
Fixed income							32
Hedge funds							102
Total investments measured at NAV							154
Total investments							$	401

Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan

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



(in millions)	Real Estate Funds			Hedge Funds			Total
Balance as of April 1, 2018	$	—		$	—		$	—
Assets assumed as a result of the Mergers	49			28			77
Actual return on plan assets held at the reporting date	5			(3		)	2
Purchases, sales and settlements	(1		)	—			(1		)
Balance as of March 31, 2019	$	53		$	25		$	78

Expected Future Contributions and Benefit Payments



Fiscal Year (in millions)	Defined Benefit Pension Plan		Retiree Medical Plan
Employer contributions:
2020	$	—	$	—

Benefit payments:
2020	$	24	$	1
2021	24		—
2022	24		1
2023	25		—
2024	26		—
2025 - 2029	140		2