McKesson 2008 Annual Report Download - page 88

Download and view the complete annual report

Please find page 88 of the 2008 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 119

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
81
Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows:
March 31,
(In millions) 2008 2007
Change in benefit obligations
Benefit obligation at beginning of year $ 552 $ 485
Service cost 7 7
Interest cost 31 27
Actuarial losses (gains) (8) 19
Benefit payments (47) (29)
Benefit obligations assumed through acquisition - 37
Foreign exchange impact and other 8 6
Benefit obligation at end of year $ 543 $ 552
Change in plan assets
Fair value of plan assets at beginning of year $ 484 $ 412
Actual return on plan assets 29 48
Employer and participant contributions 33 24
Benefits paid (47) (29)
Plan assets acquired through acquisition - 28
Foreign exchange impact and other 2 1
Fair value of plan assets at end of year $ 501 $ 484
Funded status at end of year (1) $ (39) $ (65)
Amounts recognized on the balance sheet
Noncurrent assets $ 78 $ 53
Current liabilities (9) (17)
Noncurrent liabilities (108) (101)
Total $ (39) $ (65)
(1) Includes $3 million of employer contributions subsequent to our December 31, 2007 and 2006 measurement dates.
The accumulated benefit obligations for our pension plans were $522 million at March 31, 2008 and $525
million at March 31, 2007. The components of the amount recognized in accumulated other comprehensive income
at March 31, 2008 and 2007 are as follows: net actuarial loss, $111 million and $118 million; net prior service cost,
$10 million and $12 million; and net transitional obligations, $2 million and $2 million.
In 2009, we estimate that we will amortize $2 million of prior service cost and $6 million of actuarial loss for
the pension plans from shareholders’ equity to pension expense. Comparable 2008 amounts were $2 million and $9
million.
Projected benefit obligations relating to our unfunded U.S. plans were $112 million and $92 million at March
31, 2008 and 2007. Pension costs are funded based on the recommendations of independent actuaries.
Expected benefit payments for our pension plans are as follows: $37 million, $32 million, $35 million, $38
million and $32 million for 2009 to 2013, and $265 million for 2014 through 2018. Expected benefit payments are
based on the same assumptions used to measure the benefit obligations and include estimated future employee
service. Expected contributions to be made for our pension plans are $22 million for 2009.