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## Notes to Consolidated Financial Statements 

expires through 2020. Expiring state net operating loss carryforwards and the required valuation allowances have been adjusted annually. At June 30, 2000, the Company did not have any foreign tax credit carryforwards. 

Under a tax-sharing agreement with Baxter Interna- tional, Inc. (“Baxter”), Allegiance will pay for incr eases and be reimbursed for decreases to the net deferred tax assets transferred on the date of the Baxter spin-of f of Allegiance. Such increases or decreases may result from audit adjustments to Baxter’s prior period tax returns. 

## 7. Employee Retirement Benefit Plans 

The Company sponsors various retirement and pension plans, including defined benefit and defined contribution plans. Substantially all of the Company’s domestic non- union employees are eligible to be enrolled in Company- sponsored contributory profit sharing and retirement savings plans which include features under Section 401(k) of the Internal Revenue Code, and provide for Company matching and profit sharing contributions. The Company’s contributions to the plans are determined by the Board of Directors subject to certain minimum requirements as specified in the plans. 

Qualified domestic union employees are covered by multi-employer defined benefit pension plans under the provisions of collective bargaining agreements. Benefits under these plans are generally based on the employee’s years of service and average compensation at r etirement. 

The total expense for employee r etirement benefit plans (excluding defined benefit plans (see below)) was as follows (in millions): 

<img src='content_image/9221.jpg'>

Defined Benefit Plans. The Company has several defined benefit plans covering substantially all salaried and hourly Scherer employees. The Company’s domestic defined benefit plans provide defined benefits based on years of service and level of compensation. For eign sub- sidiaries provide for pension benefits in accor dance with local customs or law. The Company funds its pension plans at amounts required by the applicable regulations. 

The following tables provide a reconciliation of the change in benefit obligation, the change in plan assets and the net amount recognized in the consolidated bal- ance sheets (based on a measur ement date of March 31, in millions): 

<img src='content_image/9222.jpg'>

The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the pension plans with accumulated benefit obligations in excess of plan assets were $98.7 million, $94.9 million, and $63.5 million, respectively, as of June 30, 2000 and $89.4 million, $85.1 million and $47.8 million, r espec- tively, as of June 30, 1999. 

