McKesson 2014 Annual Report Download - page 95

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
92
Amounts recognized in accumulated other comprehensive income (pre-tax) consist of:
U.S. Plans Non-U.S. Plans
March 31, March 31,
(In millions) 2014 2013 2014 2013
Net actuarial loss $ 188 $ 251 $ 71 $ 59
Prior service (credit) cost (7) 2 — (2)
Total $ 181 $ 253 $ 71 $ 57
Other changes in accumulated other comprehensive income (pre-tax) during the reporting periods were as follows:
U.S. Plans Non-U.S. Plans
Years Ended March 31, Years Ended March 31,
(In millions) 2014 2013 2012 2014 2013 2012
Net actuarial (gain) loss $ (31) $ 59 $ 42 $ 12 $ 11 $ 19
Prior service credit (8) — — — — —
Amortization of:
Net actuarial loss (32)(27)(23)(4)(4)(2)
Prior service (cost) credit — (1)(1) 2 — (1)
Foreign exchange impact and other (1) — — 4 (4) —
Total recognized in other comprehensive loss
(income) $ (72) $ 31 $ 18 $ 14 $ 3 $ 16
We expect to amortize $7 million of prior service credit and $31 million of actuarial loss for the pension plans from stockholders’
equity to pension expense in 2015. Comparable 2014 amounts were $36 million of actuarial loss and $2 million of prior service
credit.
Projected benefit obligations relating to our unfunded U.S. plans were $188 million and $205 million at March 31, 2014 and
2013. Pension obligations for our unfunded plans are based on the recommendations of independent actuaries. Projected benefit
obligations relating to our unfunded non-U.S. plans were $260 million and $7 million at March 31, 2014 and 2013. Funding
obligations for our non-U.S. plans vary based on the laws of each non-U.S. jurisdiction.
Expected benefit payments, including assumed executive lump sum payments, for our pension plans are as follows:
$84 million, $190 million, $74 million, $86 million and $105 million for 2015 to 2019 and $413 million for 2020 through 2024.
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 $67 million for 2015.
Weighted-average assumptions used to estimate the net periodic pension expense and the actuarial present value of benefit
obligations were as follows:
U.S. Plans Non-U.S. Plans
Years Ended March 31, Years Ended March 31,
2014 2013 2012 2014 2013 2012
Net periodic pension expense
Discount rates 3.39% 4.11% 4.82% 3.95% 4.50% 5.42%
Rate of increase in compensation 4.00 4.00 4.00 2.66 3.10 3.45
Expected long-term rate of return on plan assets 7.25 7.25 8.00 5.71 6.13 6.42
Benefit obligation
Discount rates 3.58% 3.40% 4.15% 3.92% 4.10% 4.51%
Rate of increase in compensation 4.00 4.00 4.00 3.27 3.05 3.06