Mwi Veterinary Supply Inc Group Insurance Fund

“The VEBA Trust funding benefits of the Plan received an exemption letter from the Internal Revenue Service dated June 18, 2007, stating that the Trust is tax-exempt under the provisions of IRC Section 501(c)(9). However, as a result of the Plan's funding policy, from time to time the trust may be subject to income taxes. Federal and State income taxes of $37, were recorded in 2013 for unrelated business taxable income. In addition, the Plan and the Trust are required to operate in conformity with the IRC to maintain tax-exempt status of the trust. The Plan Administrator believes that the Plan is being operated in compliance with the applicable requirements of the IRC and, therefore, believes that the related trust is tax-exempt. Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if it has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan administrator believes it is no longer subject to income tax examinations for years prior to 2010.”

“Participant contributions receivable”

“Prior year Company and Participant contributions receivable 1,364.”

“Prior year income tax overpayment 1,353. Prior year prescription rebate 47,960. Accrued medical claims expense 158,674. Prepaid Medical Premiums 5,317. Operating Payable 20,547.”

“Income tax overpayment 1,296. Prescription rebate receivables 56,339. Prior year accrued administrative expenses 6,036. Prior year prepaid medical premiums 5,909. Prior year accrued medical claims expense 105,529.”