COMPUTER SCIENCES CORP | 2013 | FY | 3

The weighted-averages of the assumptions used to determine net periodic pension cost were:
 
U.S. Plans
 
Non-U.S. Plans
 
March 29,
2013
 
March 30,
2012
 
April 1,
2011
 
March 29,
2013
 
March 30,
2012
 
April 1,
2011
Discount or settlement rates
4.6
%
 
5.7
%
 
6.2
%
 
4.7
%
 
5.2
%
 
5.3
%
Expected long-term rates of return on assets
6.8
%
 
7.5
%
 
8.3
%
 
5.4
%
 
6.1
%
 
6.7
%
Rates of increase in compensation levels (1)
4.1
%
 
4.3
%
 
4.3
%
 
4.1
%
 
4.1
%
 
4.1
%

(1) The weighted average calculation is computed using rates of increase for active plans where participants are accruing future benefits. For fiscal 2013 and 2012, the weighted average for all pension plans, including frozen plans, is 0.7% and 0.7%, respectively, for U.S. Plans, and 0.9% and 1.0%, respectively, for Non-U.S. Plans.
The following tables provide reconciliations of the changes in the plans’ projected benefit obligations and assets, and a statement of their funded status:
Reconciliation of Projected Benefit Obligation
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Projected benefit obligation at beginning of year
 
$
3,284

 
$
2,921

 
$
2,732

 
$
2,470

Service cost
 
10

 
10

 
25

 
33

Interest cost
 
153

 
164

 
123

 
128

Plan participants’ contributions
 
3

 
3

 
7

 
8

Amendments
 
—

 
—

 
(28
)
 
(11
)
Business/contract acquisitions/divestitures
 
—

 
—

 
(9
)
 
61

Contractual termination benefits
 
—

 
—

 
19

 
20

Settlement/curtailment
 
(5
)
 
—

 
(37
)
 
(36
)
Actuarial loss (gain)
 
194

 
314

 
400

 
151

Benefits paid
 
(133
)
 
(128
)
 
(79
)
 
(70
)
Foreign currency exchange rate changes
 
—

 
—

 
(141
)
 
(22
)
Projected benefit obligation at end of year
 
$
3,506

 
$
3,284

 
$
3,012

 
$
2,732


Reconciliation of Fair Value of Plan Assets
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Fair value of plan assets at beginning of year
 
$
2,419

 
$
2,276

 
$
2,295

 
$
2,083

Actual return on plan assets
 
245

 
140

 
314

 
148

Employer contribution
 
591

 
128

 
157

 
121

Plan participants’ contributions
 
3

 
3

 
7

 
8

Benefits paid
 
(133
)
 
(128
)
 
(79
)
 
(70
)
Business/contract acquisitions/divestitures
 
—

 
—

 
5

 
47

Plan settlement
 
—

 
—

 
(30
)
 
(31
)
Foreign currency exchange rate changes
 
—

 
—

 
(119
)
 
(11
)
Fair value of plan assets at end of year
 
$
3,125

 
$
2,419

 
$
2,550

 
$
2,295

 
 
 
 
 
 
 
 
 
Funded status at end of year
 
$
(381
)
 
$
(865
)
 
$
(462
)
 
$
(437
)

The following table provides the amounts recorded in the Company’s consolidated balance sheet:
 
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Non-current assets
 
$
—

 
$
—

 
$
23

 
$
13

Current liabilities - Accrued expenses and other current liabilities
 
(7
)
 
(8
)
 
(3
)
 
(9
)
Non-current liabilities - Other long-term liabilities
 
(374
)
 
(857
)
 
(482
)
 
(441
)
Net amount recorded
 
$
(381
)
 
$
(865
)
 
$
(462
)
 
$
(437
)

The following is a summary of amounts in accumulated other comprehensive loss, before tax effects, as of March 29, 2013 and March 30, 2012 that have not been recognized in the consolidated statements of operations as components of net periodic pension cost:
 
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Net transition obligation
 
$
—

 
$
—

 
$
3

 
$
5

Prior service cost
 
5

 
7

 
(24
)
 
2

Net actuarial loss
 
1,140

 
1,077

 
895

 
712

Accumulated other comprehensive loss
 
$
1,145

 
$
1,084

 
$
874

 
$
719

        
The following table summarizes the weighted average assumptions used in the determination of the Company’s pension plans’ benefit obligations as of March 29, 2013 and March 30, 2012:
 
U.S. Plans
 
Non-U.S. Plans
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Discount rate
4.4
%
 
4.8
%
 
4.1
%
 
4.7
%
Rates of increase in compensation levels (1)
4.1
%
 
4.1
%
 
3.5
%
 
4.1
%

(1) The weighted average calculation is computed using rates of increase for active plans where participants are accruing future benefits. For fiscal 2013 and 2012, the weighted average rate for all pension plans, including frozen plans, is 0.6% and 0.7%, respectively, for U.S. Plans, and 0.6% and 0.9%, respectively, for Non-U.S. Plans.

The following table lists selected information for the pension plans as of March 29, 2013 and March 30, 2012:
 
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Projected benefit obligation
 
$
3,506

 
$
3,284

 
$
3,012

 
$
2,732

Accumulated benefit obligation
 
3,487

 
3,259

 
2,969

 
2,655

Fair value of plan assets
 
3,125

 
2,419

 
2,550

 
2,295


 
 
Plans with Projected Benefit Obligation
In Excess of Plan Assets
(U.S. and Non-U.S.)
 
Plans with Accumulated Benefit Obligation in Excess of Plan Assets
(U.S. and Non-U.S.)
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Projected benefit obligation
 
$
6,270

 
$
5,845

 
$
6,132

 
$
5,844

Accumulated benefit obligation
 
6,217

 
5,770

 
6,100

 
5,770

Fair value of plan assets
 
5,405

 
4,531

 
5,276

 
4,530


The net periodic pension cost for U.S. and non-U.S. pension plans included the following components:
 
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29,
2013
 
March 30,
2012
 
April 1,
2011
 
March 29,
2013
 
March 30,
2012
 
April 1,
2011
Service cost
 
$
10

 
$
10

 
$
9

 
$
25

 
$
33

 
$
32

Interest cost
 
153

 
164

 
164

 
123

 
128

 
122

Expected return on assets
 
(160
)
 
(146
)
 
(157
)
 
(124
)
 
(129
)
 
(128
)
Amortization of transition obligation
 
—

 
—

 
—

 
1

 
1

 
1

Amortization of prior service costs
 
2

 
2

 
2

 
(1
)
 
1

 
1

Amortization of unrecognized net loss
 
42

 
32

 
23

 
20

 
13

 
18

Contractual termination benefit
 
—

 
—

 
—

 
20

 
20

 
—

Settlement/curtailment
 
—

 
—

 
—

 
—

 
2

 
—

Net periodic pension cost
 
$
47

 
$
62

 
$
41

 
$
64

 
$
69

 
$
46


Other before tax changes in plan assets and benefit obligations recognized in other comprehensive income during fiscal years 2013, 2012 and 2011 included the following components:
 
 
U.S. Plans
 
Non-U.S. Plans
(Amounts in millions)
 
March 29,
2013
 
March 30,
2012
 
April 1,
2011
 
March 29,
2013
 
March 30,
2012
 
April 1,
2011
Net actuarial (gain) / loss
 
$
105

 
$
319

 
$
83

 
$
201

 
$
133

 
$
(118
)
Prior service (credit) / cost
 
—

 
—

 
—

 
(27
)
 
(11
)
 
—

Amortization of:
 
 
 
 
 
 
 
 
 
 
 
 
   Transition (asset) /obligation
 
—

 
—

 
—

 
(1
)
 
(1
)
 
(1
)
   Prior service (credit) / cost
 
(2
)
 
(2
)
 
(2
)
 
1

 
(1
)
 
(1
)
   Net actuarial (gain) / loss
 
(42
)
 
(32
)
 
(23
)
 
(25
)
 
(20
)
 
(24
)
Foreign currency exchange rate changes
 
—

 
—

 
—

 
6

 
(4
)
 
—

Total recognized in other comprehensive income
 
$
61

 
$
285

 
$
58

 
$
155

 
$
96

 
$
(144
)
Information about the expected cash flows for pension plans as of March 29, 2013, is as follows:
(Amounts in millions)
 
U.S. Plans
 
Non-U.S. Plans
Employer contributions:
 
 
 
 
2014 (expected)
 
$
8

 
$
115

 
 
 
 
 
Expected Benefit Payments:
 
 
 
 
2014
 
$
151

 
$
84

2015
 
152

 
83

2016
 
165

 
86

2017
 
176

 
94

2018
 
188

 
99

2019-2023
 
1,069

 
595

The following table summarizes the weighted average assumptions used in the determination of the Company’s postretirement benefit obligations as of March 29, 2013 and March 30, 2012:
 
March 29, 2013
 
March 30, 2012
Discount rate
4.1
%
 
4.5
%
The weighted-averages of the assumptions used to determine net periodic benefit cost were as follows. See the above discussion of Pension Plans for how the assumptions are developed.
Fiscal Year End
 
2013
 
2012
 
2011
Discount or settlement rates
 
4.5
%
 
5.3
%
 
6.1
%
Expected long-term rates of return on assets(1)
 
6.5
%
 
7.2
%
 
8.3
%

(1) The Company had no other postretirement benefit plan assets outside the U.S.

Information about the expected cash flows for other postretirement benefit plans follows. No significant cash flow is expected for other postretirement benefit plans outside the U.S.
 
(Amounts in millions)
 
Employer Contributions
 
 
2014 (expected)
 
$
9

 
 
 
 
 
Expected Benefit Payments
 
 
 
2014
 
$
13

 
2015
 
15

 
2016
 
16

 
2017
 
17

 
2018
 
18

 
2019-2023
 
94

A one-percentage point change in the assumed healthcare cost trend rates would have had the following effect:
 
One Percentage Point
(Amounts in millions)
Increase
 
Decrease
Effect on accumulated postretirement benefit obligation as of March 29, 2013
$
14

 
$
(12
)
Effect on net periodic postretirement benefit cost for fiscal 2013
1

 
(1
)

The net periodic benefit cost for other postretirement benefit plans included the following components:
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
April 1, 2011
Service cost
 
$
4

 
$
3

 
$
4

Interest cost
 
11

 
11

 
14

Expected return on assets
 
(5
)
 
(6
)
 
(6
)
Amortization of transition obligation
 
—

 
1

 
2

Amortization of prior service costs
 
(2
)
 
(6
)
 
—

Recognized actuarial loss
 
16

 
13

 
10

Net provision for postretirement benefits
 
$
24

 
$
16

 
$
24


Other before tax changes in plan assets and benefit obligations recognized in other comprehensive income during fiscal years 2013, 2012 and 2011 included the following components:
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
April 1, 2011
Net actuarial (gain) / loss
 
$
(8
)
 
$
21

 
$
(1
)
Prior service (credit) / cost
 
—

 
21

 
(50
)
Amortization of:
 
 
 
 
 
 
   Transition (asset) /obligation
 
—

 
(1
)
 
(3
)
   Prior service (credit) / cost
 
2

 
6

 
—

   Actuarial (gain) / loss
 
(16
)
 
(13
)
 
(10
)
Foreign currency exchange rate changes
 
—

 
—

 
—

Total recognized in other comprehensive income
 
$
(22
)
 
$
34

 
$
(64
)
The following tables provide reconciliations of the changes in postretirement plans’ benefit obligations and assets and a statement of their funded status:
Reconciliation of Accumulated Postretirement Benefit Obligation
 
 
 
 
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
Accumulated benefit obligation at beginning of year
 
$
253

 
$
214

Service cost
 
4

 
3

Interest cost
 
11

 
11

Plan participants’ contributions
 
—

 
—

Business/contract acquisitions/divestitures
 
—

 
—

Amendments
 
—

 
21

Actuarial loss (gain)
 
(6
)
 
20

Benefits paid
 
(10
)
 
(16
)
Retiree drug subsidy reimbursement
 
1

 
1

Foreign currency exchange rate changes
 
—

 
(1
)
Accumulated benefit obligation at end of year
 
$
253

 
$
253

 
 
 
 
 
Reconciliation of Fair Value of Plan Assets
 
 
 
 
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
Fair value of plan assets at beginning of year
 
$
81

 
$
79

Actual return on plan assets
 
7

 
5

Employer contribution
 
6

 
13

Plan participants’ contributions
 
—

 
—

Benefits paid
 
(10
)
 
(16
)
Fair value of plan assets at end of year
 
$
84

 
$
81

 
 
 
 
 
Funded status at end of year
 
$
(169
)
 
$
(172
)

The following table provides the amounts recorded in the Company’s consolidated balance sheets:
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
Current liabilities - Accrued expenses and other current liabilities
 
$
(5
)
 
$
(5
)
Non-current liabilities - Other long-term liabilities
 
(164
)
 
(167
)
Net amount recorded
 
$
(169
)
 
$
(172
)

The following is a summary of amounts in accumulated other comprehensive loss as of March 29, 2013 and March 30, 2012 that have not been recognized in the consolidated statements of operations as components of net periodic benefit cost:
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
Net transition obligation
 
$
—

 
$
—

Prior service (gain) cost
 
(17
)
 
(19
)
Net actuarial loss
 
99

 
123

Accumulated other comprehensive loss
 
$
82

 
$
104


The following table lists selected information for other postretirement benefit plans as of March 29, 2013 and March 30, 2012:
 
 
 
 
Plans with
Accumulated Postretirement
Benefit Obligation in Excess of the Fair Value of
Plan Assets
(Amounts in millions)
 
March 29, 2013
 
March 30, 2012
 
March 29, 2013
 
March 30, 2012
Accumulated postretirement benefit obligation
 
$
253

 
$
253

 
$
253

 
$
253

Fair value of plan assets
 
84

 
81

 
84

 
81

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