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Pension Benefits
 12 Months Ended
Mar. 31, 2025
Retirement Benefits [Abstract]  
Pension Benefits Pension Benefits
The Company maintains a number of qualified and nonqualified defined benefit pension plans and defined contribution plans for eligible employees.
Non-U.S. Defined Benefit Pension Plans
As of March 31, 2025 and 2024, the Company’s non-U.S. defined benefit pension plans cover eligible employees located predominantly in Norway and Canada. Benefits for these plans are based primarily on each employee’s final salary, with annual adjustments for inflation.
The Company divested certain pension assets and liabilities as part of the Canadian divestiture activities in fiscal 2025 and European divestiture activities in fiscal 2023 which are discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.” During fiscal 2025, changes in the Company pension assets and accumulated other comprehensive loss related to the Canadian divestiture activities were not material. During fiscal 2023, the Company’s divested pension liabilities totaling $75 million, pension assets of $49 million and the Company released $17 million of losses from accumulated other comprehensive loss related to divestiture activities.
During the fourth quarter of fiscal 2025, the Company settled the frozen U.K. pension plan (“U.K. Plan”) by irrevocably transferring future financial responsibilities for the plan to a third-party insurance provider (the “buy-out”). In connection with the buy-out and settlement of the U.K. Plan, a non-cash pre-tax settlement charge of $87 million was recorded in “Other income, net” in the Company’s Consolidated Statements of Operations for the year ended March 31, 2025, consisting of $53 million of pension losses and $34 million of Foreign currency translation adjustments associated with the plan. Excess assets from the U.K. Plan of approximately $7 million are to be reverted to the Company following final wind-up activities and were recognized as a receivable upon settlement.
Defined benefit plan assets and obligations are measured as of the Company’s fiscal year-end. The net periodic expense for the Company’s pension plans were as follows:
Years Ended March 31,
(In millions)202520242023
Service cost - benefits earned during the year$2 $2 $5 
Interest cost on projected benefit obligation7 8 7 
Expected return on assets(7)(7)(5)
Amortization of unrecognized actuarial loss and prior service costs
2 2 1 
Curtailment/settlement loss (gain)
56 — (1)
Net periodic pension expense$60 $5 $7 
The projected unit credit method is utilized in measuring net periodic pension expense over the employees’ service life for the pension plans. Unrecognized actuarial losses exceeding 10% of the greater of the projected benefit obligation or the market value of assets are amortized straight-line over the average remaining future service period of active employees.
Information regarding the changes in benefit obligations and plan assets for the Company’s pension plans was as follows:
Years Ended March 31,
(In millions)20252024
Change in benefit obligations
Benefit obligation at beginning of period (1)
$174 $172 
Service cost2 2 
Interest cost7 8 
Actuarial loss2 — 
Benefits paid(8)(9)
Curtailment/settlement (2)
(96)— 
Divestitures (3)
(6)— 
Foreign exchange impact and other2 1 
Benefit obligation at end of period (1)
$77 $174 
Change in plan assets
Fair value of plan assets at beginning of period$171 $174 
Actual return on plan assets— (1)
Employer and participant contributions4 5 
Benefits paid(8)(9)
Settlement (2)
(96)— 
Divestitures (3)
(6)— 
Foreign exchange impact and other1 2 
Fair value of plan assets at end of period$66 $171 
Funded status at end of period$(11)$(3)
Amounts recognized on the balance sheet
Current assets$7 $— 
Long-term assets2 18 
Current liabilities(1)(1)
Long-term liabilities(19)(20)
Total$(11)$(3)
(1)The benefit obligation is the projected benefit obligation.
(2)Relates to the buy-out of the U.K. Plan described above.
(3)Relates to the Canadian divestiture activities discussed in more detail in Financial Note 2, “Business Acquisitions and Divestitures.”
There was a $2 million actuarial loss in fiscal 2025:
•Discount rates: The weighted average discount rate slightly decreased to 4.48% as of March 31, 2025 from 4.55% as of March 31, 2024.
•Demographic and assumption changes: The rate of compensation increase increased to 3.47% as of March 31, 2025 from 3.21% as of March 31, 2024.
There was no actuarial gain in fiscal 2024:
•Discount rates: The weighted average discount rate increased slightly to 4.55% as of March 31, 2024 from 4.54% as of March 31, 2023.
•Demographic and assumption changes: There were offsetting gains and losses in the demographic and assumption changes.
As of March 31, 2025 and 2024, The Company’s accumulated benefit obligations were $74 million and $172 million, respectively. Amounts recognized in accumulated other comprehensive loss as of March 31, 2025 and 2024, were $12 million and $58 million, respectively.
Other changes in accumulated other comprehensive loss were as follows:
Years Ended March 31,
(In millions)202520242023
Net actuarial (gain) loss$9 $9 $(7)
Prior service cost2 — 1 
Amortization of:
Net actuarial loss(57)(2)(9)
Prior service credit— — 2 
Foreign exchange impact and other— 1 (5)
Total recognized in other comprehensive (income) loss$(46)$8 $(18)
In fiscal 2025, the Company recognized $53 million in actuarial losses for the pension plans to stockholders’ deficit as a result of the U.K. plan buy-out. In fiscal 2023, the Company recognized $17 million in net actuarial losses for pension plans to stockholders’ deficit as a result of the divestitures. Refer to Financial Note 2, “Business Acquisitions and Divestitures,” for more information on the Company’s divestiture activities.
Projected benefit obligations related to the Company’s unfunded plans were $19 million at March 31, 2025 and 2024. Funding obligations for its plans vary based on the laws of each jurisdiction.
Expected benefit payments are based on the same assumptions used to measure the benefit obligations and include estimated future employee service. Expected benefit payments for the Company’s pension plans were as follows:
(In millions)Expired Benefit Payments
Fiscal 2026$4 
Fiscal 2027$5 
Fiscal 2028$5 
Fiscal 2029$5 
Fiscal 2030$17 
Fiscal 2031 through 2035$22 
Expected contributions to be made for the Company’s pension plans are $3 million for fiscal 2026.
Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit obligations were as follows:
Years Ended March 31,
202520242023
Net periodic pension expense
Discount rates4.55 %4.54 %2.67 %
Rate of increase in compensation3.21 3.21 3.67 
Expected long-term rate of return on plan assets4.37 4.05 1.63 
Benefit obligation
Discount rates4.48 %4.55 %4.54 %
Rate of increase in compensation3.47 3.21 3.21 
The Company’s defined benefit pension plan liabilities are valued using a discount rate based on a yield curve developed from a portfolio of high-quality corporate bonds rated AA or better whose maturities are aligned with the expected benefit payments of its plans. The Company’s defined benefit pension plan liabilities are valued using a weighted-average discount rate of 4.48%, which represents a decrease of seven basis points from its fiscal 2024 weighted-average discount rate of 4.55%.
Plan Assets
Investment Strategy: For plan assets, the investment strategies are subject to local regulations and the asset/liability profiles of the plans in each individual country. Plan assets are broadly invested in a manner appropriate to the nature and duration of the expected future retirement benefits payable under the plans. Plan assets are primarily invested in high-quality corporate and government bond funds and equity securities. Assets are properly diversified to avoid excessive reliance on any particular asset, issuer, or group of undertakings so as to avoid accumulations of risk in the portfolio as a whole.
The Company develops the expected long-term rate of return assumption based on the projected performance of the asset classes in which plan assets are invested. The target asset allocation was determined based on the liability and risk tolerance characteristics of the plans and at times may be adjusted to achieve overall investment objectives.
Fair Value Measurements: The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 refers to fair values determined based on unadjusted 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. The following tables represent the Company’s plan assets as of March 31, 2025 and 2024, using the fair value hierarchy by asset class:
March 31, 2025March 31, 2024
(In millions)Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Cash and cash equivalents$7 $— $— $7 $7 $— $— $7 
Equity securities:
Equity commingled funds— 12 — 12 — 20 — 20 
Fixed income securities:
Government securities1 5 — 6 — 4 — 4 
Corporate bonds— 4 — 4 — 4 — 4 
Other:
Annuity contracts— — — — — — 103 103 
Real estate funds and other— 3 — 3 — 3 — 3 
Total$8 $24 $— $32 $7 $31 $103 $141 
Assets held at NAV practical expedient (1):
Other34 30 
Total plan assets$66 $171 
(1)    Equity commingled funds, fixed income commingled funds, real estate funds, and other investments for which fair value is measured using the NAV per share as a practical expedient are not leveled within the fair value hierarchy and are included as a reconciling item to total investments.
Cash and cash equivalents - Cash and cash equivalents include money market funds and other commingled funds, which have daily net asset values derived from the underlying securities.
Equity commingled funds - Some equity investments are held in commingled funds, which have daily net asset values derived from quoted prices for the underlying securities in active markets.
Fixed income securities - Fixed income securities consist of bonds and debentures. Inputs to the valuation methodology include quoted prices for similar assets in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the asset.
Annuity contracts - The value of the annuity contracts is reported by the Trustee and is based on a valuation of the remaining contracted cash flow of the contract. Inputs in the valuation include discounted future cash flows.
Real estate funds - The value of the real estate funds is reported by the fund manager and is based on a valuation of the underlying properties. Inputs used in the valuation include items such as cost, discounted future cash flows, independent appraisals, and market based comparable data.
Other - At March 31, 2025 and 2024, this includes $34 million and $30 million, respectively, of plan asset value relating to obligations in Norway for the state-regulated pension plan which is managed by the Norwegian Public Service Pension Fund (“SPK”). According to the terms of the SPK, the plan assets of state regulated plans in Norway must correspond very closely to the pension obligation calculated using the principles codified in Norwegian law. The investment return credited to this account is determined annually based on the performance of long-term government bonds.
The following table presents the changes in the Level 3 plan assets measured on a recurring basis for the years ended March 31, 2025 and 2024:
(In millions)Level 3
Balance, March 31, 2023
$110 
Return on assets(7)
Balance, March 31, 2024
$103 
Return on assets(7)
Settlement
(96)
Balance, March 31, 2025
$— 
Defined Contribution Plans
The Company has a contributory retirement savings plan (“RSP”) for U.S. eligible employees. Eligible employees may contribute to the RSP up to 75% of their eligible compensation on a pre-tax or post-tax basis not to exceed IRS limits. The Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay contributed and 50% for the next 2% of pay contributed. The Company, at the discretion of its Board of Directors (the “Board”), may also make an additional annual matching contribution for each plan year to enable participants to receive a full match based on their annual contribution. The Company also contributed to non-U.S. plans that are available in certain countries. Contribution expenses for the RSP and non-U.S. plans were $128 million, $138 million, and $125 million for the years ended March 31, 2025, 2024, and 2023, respectively.
Postretirement Benefits
The Company maintains a number of postretirement benefit plans, primarily consisting of healthcare and life insurance (“welfare”) benefits, for certain eligible U.S. employees. Eligible employees consist of those who retired before March 31, 1999 and those who retired after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria. It also provides postretirement benefits for certain U.S. executives. Defined benefit plan obligations are measured as of the Company’s fiscal year-end. The net periodic credit or expense for the Company’s postretirement welfare benefits was not material for the years ended March 31, 2025, 2024, and 2023. The benefit obligation at March 31, 2025 and 2024 was $40 million and $42 million, respectively.