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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
97
Contributions and amounts accrued for U.S. Plans were not material for the years ended March 31, 2014, 2013, and 2012.
Celesio’s contributions to the POA exceeding 5% of total plan contributions were $5 million since our acquisition of Celesio in
February 2014. Based on actuarial calculations, we estimate Celesio’s funded status to be less than 65% as of March 31, 2014.
No amounts were accrued for liability associated with the POA as Celesio has no intention to withdraw from the plan.
Defined Contribution Plans
We have a contributory profit sharing investment plan (“PSIP”) for U.S. employees not covered by collective bargaining
agreements. Eligible employees may contribute to the PSIP up to 75% of their eligible compensation on a pre-tax basis not to
exceed IRS limits. The Company makes matching contributions in an amount equal to 100% of the employee’s first 3% of pay
contributed and 50% for the next 2% of pay contributed. The Company also may make an additional annual matching contribution
for each plan year to enable participants to receive a full match based on their annual contribution. Contribution expenses for the
PSIP were $71 million, $61 million and $58 million for the years ended March 31, 2014, 2013, and 2012.
17. Postretirement Benefits
We maintain a number of postretirement benefits, primarily consisting of healthcare and life insurance (“welfare”) benefits,
for certain eligible U.S. employees. Eligible employees consist of those who retired before March 31, 1999 and those who retired
after March 31, 1999, but were an active employee as of that date, after meeting other age-related criteria. We also provide
postretirement benefits for certain U.S. executives. Defined benefit plan obligations are measured as of the Company’s fiscal
year-end.
The net periodic expense for our postretirement welfare benefits is as follows:
Years Ended March 31,
(In millions) 2014 2013 2012
Service cost - benefits earned during the year $ 2 $ 2 $ 2
Interest cost on accumulated benefit obligation 5 6 7
Amortization of unrecognized actuarial gain and prior service credit (1)(2)(1)
Curtailment gain (2) — —
Net periodic postretirement expense $ 4 $ 6 $ 8
Information regarding the changes in benefit obligations for our postretirement welfare plans is as follows:
Years Ended March 31,
(In millions) 2014 2013
Benefit obligation at beginning of period $ 131 $ 144
Service cost 2 2
Interest cost 5 6
Actuarial gain (2)(9)
Benefit payments (15)(12)
Curtailment gain (2) —
Benefit obligation at end of period $ 119 $ 131
The components of the amount recognized in accumulated other comprehensive income for the Company’s other postretirement
benefits at March 31, 2014 and 2013 were net actuarial gains of $8 million and $6 million and net prior service credits of $1 million
and $1 million. Other changes in benefit obligations recognized in other comprehensive income were net actuarial gains of $2
million, $7 million and $3 million in 2014, 2013 and 2012.