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Employee Benefit Plans | 12 Months Ended
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Mar. 31, 2024
Retirement Benefits [Abstract] |
Employee Benefit Plans | Employee Benefit Plans Defined Contribution Plan The Company sponsors the Employees’ Capital Accumulation Plan (the “ECAP”), which is a qualified defined contribution plan that covers eligible U.S. and certain international employees. ECAP provides for distributions to participants by reason of retirement, death, disability, or termination of employment. The Company provides an annual matching contribution of up to 6% of eligible annual compensation. Total expense recognized under ECAP for fiscal 2024, 2023, and 2022 was $218.4 million, $190.5 million, and $176.8 million, respectively, and the Company-paid contributions were $213.3 million, $185.7 million, and $171.6 million, respectively. Post Retirement Benefits The Company provides postretirement healthcare benefits to former officers under a medical indemnity insurance plan, with premiums paid by the Company. This plan is referred to as the Officer Medical Plan. The Company recognizes a liability for the defined benefit plans' underfunded status, measures the defined benefit plans' obligations that determine its funded status as of the end of the fiscal year, and recognizes as a component of accumulated other comprehensive income the changes in the defined benefit plans' funded status that are not recognized as components of net periodic benefit cost. See Note 15, “Accumulated Other Comprehensive Income,” to our consolidated financial statements. The components of net postretirement medical expense for the Officer Medical Plan were as follows:
|  | Fiscal Year Ended March 31,
|  | 2024 |  | 2023 |  | 2022
Service cost |  | $ | 5,100 |  |  | $ | 6,117 |  |  | $ | 6,505 |
Interest cost |  | 5,067 |  |  | 4,182 |  |  | 4,063 |
Total postretirement medical expense |  | $ | 10,167 |  |  | $ | 10,299 |  |  | $ | 10,568 |
The service cost component of net periodic benefit cost is included in cost of revenue and general and administrative expenses, and the non-service cost components of net periodic benefit cost (interest cost and net actuarial loss) are included as part of other income (expense), net in the accompanying consolidated statements of operations. The weighted-average discount rate used to determine the year-end benefit obligation for the Officer Medical Plan were 5.20%, 4.90% and 3.75% for fiscal 2024, 2023, and 2022, respectively. Assumed healthcare cost trend rates for the Officer Medical Plan at March 31 were as follows:
Pre-65 initial rate |  | 2024 |  | 2023
Healthcare cost trend rate assumed for next year |  | 7.25 | % |  | 6.60 | %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) |  | 4.50 | % |  | 4.50 | %
Year that the rate reaches the ultimate trend rate |  | 2033 |  | 2032
Post-65 initial rate |  | 2024 |  | 2023
Healthcare cost trend rate assumed for next year |  | 7.50 | % |  | 6.80 | %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) |  | 4.50 | % |  | 4.50 | %
Year that the rate reaches the ultimate trend rate |  | 2033 |  | 2032
The changes in the benefit obligation, plan assets, and funded status of the Officer Medical Plan were as follows:
|  | Fiscal Year Ended March 31,
|  | 2024 |  | 2023 |  | 2022
Benefit obligation, beginning of the year |  | $ | 105,585 |  |  | $ | 113,505 |  |  | $ | 121,518 |
Service cost |  | 5,100 |  |  | 6,117 |  |  | 6,505 |
Interest cost |  | 5,067 |  |  | 4,182 |  |  | 4,063 |
Net actuarial loss (gain) |  | 17,163 |  |  | (14,288) |  |  | (13,563) |
Benefits paid |  | (5,927) |  |  | (3,931) |  |  | (5,018) |
Benefit obligation, end of the year |  | $ | 126,988 |  |  | $ | 105,585 |  |  | $ | 113,505 |
The net actuarial loss related to the benefit obligation in fiscal 2024 was primarily due to unfavorable updates in estimated medical claims, medical inflation, and demographic assumptions, partially offset by increases in discount rates. The net actuarial gain related to the benefit obligation in fiscal 2023 was primarily due to a favorable change from using an amounts-weighted to a headcount-weighted mortality table and increases in discount rates, partially offset by updates to estimated medical costs and the outlook of higher future medical inflation. The net actuarial gain related to the benefit obligation in fiscal 2022 was primarily due to favorable changes in estimated medical costs and increases in discount rates, partially offset by updates to demographic assumptions and outlook of higher future medical inflation.
|  | Fiscal Year Ended March 31,
Changes in plan assets |  | 2024 |  | 2023 |  | 2022
Fair value of plan assets, beginning of the year |  | $ | — |  |  | $ | — |  |  | $ | — |
Employer contributions |  | 5,927 |  |  | 3,931 |  |  | 5,018 |
Benefits paid |  | (5,927) |  |  | (3,931) |  |  | (5,018) |
Fair value of plan assets, end of the year |  | $ | — |  |  | $ | — |  |  | $ | — |
As of March 31, 2024 and 2023, the unfunded status of the Officer Medical Plan was $127.0 million and $105.6 million, respectively, which is included in other long-term liabilities in the accompanying consolidated balance sheets. The expected future medical benefit payments and related contributions are as follows:
For the Fiscal Year Ending March 31, |
2025 | $ | 5,142 |
2026 | 5,677 |
2027 | 6,117 |
2028 | 6,658 |
2029 | 7,173 |
2030 - 2034 | 42,398 |
Total | $ | 73,165 |

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