McKesson 2010 Annual Report Download - page 90

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
84
Amounts recognized in accumulated other comprehensive loss consist of:
March 31,
(In millions) 2010 2009
Net actuarial loss $ 253 $ 215
Prior service cost 4 8
Net transition obligation 1 1
Total $ 258 $ 224
Other changes in plan assets and benefit obligations recognized in other comprehensive loss (income) during
the reporting periods were as follows:
Years Ended March 31,
(In millions) 2010 2009 2008
Net actuarial loss (gain) $ 59 $ 121 $ (2)
Prior service credit (2)
Amortization of:
Net actuarial loss (23) (10) (5)
Prior service cost (2) (2) (2)
Total recognized in net periodic benefit cost and other
comprehensive loss (income) $ 32 $ 109 $ (9)
We expect to amortize $1 million of prior service cost and $26 million of actuarial loss for the pension plans
from stockholders’ equity to pension expense in 2011. Comparable 2010 amounts were $2 million and $23 million.
Projected benefit obligations relating to our unfunded U.S. plans were $137 million and $110 million at
March 31, 2010 and 2009. Pension obligations are funded based on the recommendations of independent actuaries.
Expected benefit payments for our pension plans are as follows: $31 million, $36 million, $39 million,
$31 million and $126 million for 2011 to 2015 and $188 million for 2016 through 2020. 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 $7 million for 2011.
Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value
of benefit obligations were as follows:
2010 2009 2008
Net periodic pension expense
Discount rates 7.68% 5.34% 5.33%
Rate of increase in compensation 3.62 3.93 3.85
Expected long-term rate of return on plan assets 7.90 7.75 7.53
Benefit obligation
Discount rates 5.33% 7.74% 6.18%
Rate of increase in compensation 3.75 3.93 4.01
Our U.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 our plans. For March 31, 2010, we used a weighted average discount rate of 5.29%,
which represents a decrease of 266 basis points from our 2009 weighted-average discount rate of 7.95%.