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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
83
Information regarding the changes in benefit obligations and plan assets for our pension plans is as follows:
(In millions)
Year Ended
March
31, 2010
15 Month
Period Ended
March
31, 2009
Change in benefit obligations
Benefit obligation at beginning of period $ 456 $ 543
Measurement date adjustment – adoption of new standards — (3)
Service cost 4 6
Interest cost 35 33
Actuarial loss (gain) 132 (65)
Benefit payments (38) (32)
Foreign exchange impact and other 4 (26)
Benefit obligation at end of period (1) $ 593 $ 456
Change in plan assets
Fair value of plan assets at beginning of period $ 309 $ 501
Measurement date adjustment – adoption of new standards — (9)
Actual return (loss) on plan assets 97 (138)
Employer and participant contributions 18 15
Benefits paid (38) (32)
Foreign exchange impact and other 5 (28)
Fair value of plan assets at end of period $ 391 $ 309
Funded status at end of period (2) $ (202) $ (147)
Amounts recognized on the balance sheet
Noncurrent assets $ — $ 5
Current liabilities (4) (10)
Noncurrent liabilities (198) (142)
Total $ (202) $ (147)
(1) The benefit obligation is the projected benefit obligation.
(2) The unfunded status of our plans at March 31, 2010 and 2009 was primarily due to the decrease in the fair value of our plan
assets as a result of the volatility in the financial markets. The 2010 funded status also reflects the unfavorable effect from
the reduction in discount rates.
The accumulated benefit obligations for our pension plans were $574 million at March 31, 2010 and
$441 million at March 31, 2009. The following table provides the projected benefit obligation, accumulated benefit
obligation and fair value of plan assets for all our pension plans with an accumulated benefit obligation in excess of
plan assets.
March 31,
(In millions) 2010 2009
Projected benefit obligation $ 503 $ 403
Accumulated benefit obligation 499 395
Fair value of plan assets 307 251