McKesson 2011 Annual Report Download - page 89

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
83
Amounts recognized in accumulated other comprehensive loss consist of:
March 31,
(In millions)
2011
2010
Net actuarial loss
$
239
$
253
Prior service cost
2
4
Net transition obligation
1
1
Total
$
242
$
258
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)
2011
2010
2009
Net actuarial loss
$
10
$
59
$
121
Prior service credit
—
(2)
—
Amortization of:
Net actuarial loss
(26)
(23)
(10)
Prior service cost
(2)
(2)
(2)
Total recognized in net periodic benefit cost and other
comprehensive loss (income)
$
(18)
$
32
$
109
We expect to amortize $2 million of prior service cost and $25 million of actuarial loss for the pension plans
from stockholders’ equity to pension expense in 2012. Comparable 2011 amounts were $2 million and $26 million.
Projected benefit obligations relating to our unfunded U.S. plans were $154 million and $137 million at
March 31, 2011 and 2010. Pension obligations for our unfunded plans are funded based on the recommendations of
independent actuaries.
Expected benefit payments for our pension plans are as follows: $38 million, $42 million, $34 million,
$136 million and $36 million for 2012 to 2016 and $194 million for 2017 through 2021. 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 $16 million for 2012.
Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value
of benefit obligations were as follows:
Years Ended March 31,
2011
2010
2009
Net periodic pension expense
Discount rates
5.30%
7.68%
5.34%
Rate of increase in compensation
3.75
3.62
3.93
Expected long-term rate of return on plan assets
7.79
7.90
7.75
Benefit obligation
Discount rates
4.99%
5.33%
7.74%
Rate of increase in compensation
3.74
3.75
3.93
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, 2011, we used a weighted average discount rate of 4.88%,
which represents a decrease of 41 basis points from our 2010 weighted-average discount rate of 5.29%.