Pensions and Other Benefit Plans (Tables)

12 Months Ended

Mar. 31, 2020

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



	Fiscal Year Ended March 31, 2020						Fiscal Year Ended March 31, 2019
(in millions)	Defined Benefit Pension Plan			Retiree Medical Plan			Defined Benefit Pension Plan			Retiree Medical Plan
Projected benefit obligation at beginning of year	$	491		$	7		$	—		$	—
Benefit obligation assumed as a result of the Mergers	—			—			482			7
Service cost	—			—			—			—
Interest cost	18			—			16			—
Actuarial loss	35			—			13			1
Plan participant contributions	—			—			—			1
Benefits paid	(21		)	—			(20		)	(2		)
Projected benefit obligation at end of year	523			7			491			7

Fair value of plan assets at beginning of year	388			13			—			—
Assets assumed as a result of the Mergers	—			—			405			14
Actual return on plan assets	(8		)	(1		)	3			—
Plan participant contributions	—			—			—			1
Expenses paid	(2		)	—			—			—
Benefits paid	(21		)	—			(20		)	(2		)
Fair value of plan assets at end of year	357			12			388			13
(Unfunded) funded status at end of year	$	(166	)	$	5		$	(103	)	$	6

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, 2020					Fiscal Year Ended March 31, 2019
(in millions)	Defined Benefit Pension Plan			Retiree Medical Plan		Defined Benefit Pension Plan			Retiree Medical Plan
Service cost	$	—		$	—	$	—		$	—
Interest cost	18			—		16			—
Expected return on plan assets	(28		)	—		(24		)	(1		)
Recognition of net actuarial loss	72			—		35			—
Net periodic benefit cost (benefit)	$	62		$	—	$	27		$	(1	)

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:



	March 31, 2020				March 31, 2019
(in millions)	Defined Benefit Pension Plan		Retiree Medical Plan		Defined Benefit Pension Plan		Retiree Medical Plan
Other assets	$	—	$	5	$	—	$	6
Other long-term liabilities	166		—		103		—
Accumulated other comprehensive loss	—		3		—		—

Schedule of Weighted-Average Rates Used to Determine Benefit Obligation

The weighted-average rates used to determine the benefit obligation at March 31, 2020 and net periodic benefit cost for the subsequent year were as follows:



	March 31, 2020				March 31, 2019
	Defined Benefit Pension Plan		Retiree Medical Plan		Defined Benefit Pension Plan		Retiree Medical Plan
Discount rate	3.7	%	3.5	%	4.1	%	4.0	%
Expected long-term rate of return on assets	7.4	%	6.2	%	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, 2020:



Asset Category	Defined Benefit Pension Plan		Retiree Medical Plan
Cash	2.5	%	5.0	%
Equity funds	37.5	%	50.0	%
Fixed income	17.5	%	45.0	%
Real estate funds	10.0	%	—	%
Other	32.5	%	—	%

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, 2020								March 31, 2019
(in millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Investments measured at fair value:
Cash and cash equivalents	$	—	$	6	$	—	$	6	$	—	$	12	$	—	$	12
Equity funds	17		43		—		60		18		104		—		122
Fixed income	29		6		—		35		—		35		—		35
Real estate funds	—		—		46		46		—		—		53		53
Hedge funds	—		—		8		8		—		—		25		25
Total investments measured at fair value	$	46	$	55	$	54	155		$	18	$	151	$	78	247
Investments measured at NAV:
Equity funds							116								20
Fixed income							15								32
Hedge funds							83								102
Total investments measured at NAV							214								154
Total investments							$	369							$	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 at 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 at March 31, 2019	53			25			78
Actual return on plan assets held at the reporting date	2			(1		)	1
Purchases, sales and settlements	(9		)	(16		)	(25		)
Balance at March 31, 2020	$	46		$	8		$	54

Expected Future Contributions and Benefit Payments



Fiscal Year (in millions)	Defined Benefit Pension Plan		Retiree Medical Plan
Employer contributions:
2021	$	7	$	—
Benefit payments:
2021	$	26	$	1
2022	25		—
2023	26		1
2024	26		—
2025	27		1
2025 - 2029	144		2
Total	$	274	$	5