McKesson 2014 Annual Report Download - page 98

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
95
U.S. Plans Non-U.S. Plans
March 31, 2013 March 31, 2013
(In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Cash and cash equivalents $ — $ 8 $ — $ 8 $ 3 $ — $ — $ 3
Equity securities:
Common and preferred stock 20 — — 20 — — — —
Equity commingled funds — 127 — 127 — 82 — 82
Fixed income securities:
Government securities — 12 — 12 — — — —
Corporate bonds — 19 — 19 — 9 — 9
Mortgage-backed securities — 6 — 6 — — — —
Asset-backed securities and
other — 22 — 22 — — — —
Fixed income commingled
funds — 61 — 61 — 36 — 36
Other:
Real estate funds — — 14 14 — — 5 5
Total $ 20 $ 255 $ 14 289 $ 3 $ 127 $ 5 135
Receivables (1) 1 —
Total $ 290 $ 135
(1) Represents pending trades at March 31, 2013.
Cash and cash equivalents - Cash and cash equivalents include short-term investment funds that maintain daily liquidity and
aim to have constant unit values of $1.00. The funds invest in short-term fixed income securities and other securities with debt-
like characteristics emphasizing short-term maturities and high credit quality. Directly held cash and cash equivalents are classified
as Level 1 investments. Cash and cash equivalents include money market funds and other commingled funds, which have daily
net asset values derived from the underlying securities; these are classified as Level 1 or Level 2 investments.
Common and preferred stock - This investment class consists of common and preferred shares issued by U.S. and non-U.S.
corporations. Common shares are traded actively on exchanges and price quotes are readily available. Preferred shares may not
be actively traded. Holdings of common shares are generally classified as Level 1 investments. Preferred shares are classified
as Level 2 investments.
Equity commingled funds - Some equity investments are held in commingled funds, which have daily net asset values derived
from quoted prices for the underlying securities in active markets; these are classified as Level 1 or Level 2 investments.
Fixed income securities - Government securities consist of bonds and debentures issued by central governments or federal
agencies; corporate bonds consist of bonds and debentures issued by corporations; mortgage-backed securities consist of debt
obligations secured by a mortgage or pool of mortgages; and asset-backed securities primarily consist of debt obligations secured
by an asset or pool of assets other than mortgages. Inputs to the valuation methodology include quoted prices for similar assets
in active markets, and inputs that are observable for the asset, either directly or indirectly, for substantially the full term of the
asset. Multiple prices and price types are obtained from pricing vendors whenever possible, enabling cross-provider price
validations. Fixed income securities are generally classified as Level 1 or Level 2 investments.
Fixed income commingled funds - Some fixed income investments are held in commingled funds, which have daily net asset
values derived from the underlying securities; these are classified as Level 2 investments.