McKesson 2008 Annual Report Download - page 56

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McKESSON CORPORATION
FINANCIAL REVIEW (Continued)
49
RELATED PARTY BALANCES AND TRANSACTIONS
Information regarding our related party balances and transactions is included in “Critical Accounting Policies
and Estimates” appearing within this Financial Review and Financial Note 20, “Related Party Balances and
Transactions,” to the accompanying consolidated financial statements.
NEW ACCOUNTING PRONOUNCEMENTS
New accounting pronouncements that we have recently adopted, as well as those that have been recently issued,
but not yet adopted by us are included in Financial Note 1, “Significant Accounting Policies” to the accompanying
consolidated financial statements.
FACTORS AFFECTING FORWARD-LOOKING STATEMENTS
In addition to historical information, management’ s discussion and analysis includes certain forward-looking
statements within the meaning of section 27A of the Securities Act of 1933, as amended and section 21E of the
Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by use of
forward-looking words such as “believes,” “expects,” “anticipates,” “may,” “should,” “seeks,” “approximately,”
“intends,” “plans,” or “estimates,” or the negative of these words, or other comparable terminology. The discussion
of financial trends, strategy, plans or intentions may also include forward-looking statements. Forward-looking
statements involve risks and uncertainties that could cause actual results to differ materially from those projected,
anticipated or implied. Although it is not possible to predict or identify all such risks and uncertainties, they may
include, but are not limited to, the factors discussed under “Additional Factors That May Affect Future Results.”
The reader should not consider this list to be a complete statement of all potential risks and uncertainties.
These and other risks and uncertainties are described herein or in our other public documents. Readers are
cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
We undertake no obligation to publicly release the result of any revisions to these forward-looking statements to
reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events.
ADDITIONAL FACTORS THAT MAY AFFECT FUTURE RESULTS
We are subject to legal proceedings that could have a material adverse impact on our financial position and
results of operations.
From time-to-time and in the ordinary course of our business, we and certain of our subsidiaries may become
involved in various legal proceedings. All such legal proceedings are inherently unpredictable, and the outcome can
result in excessive verdicts and/or injunctive relief that may affect how we operate our business, or we may enter
into settlements of claims for monetary damages. Future court decisions and legislative activity may increase the
Company’ s exposure to litigation and regulatory investigations. In some cases, substantial non-economic remedies
or punitive damages may be sought. For some complaints filed against the Company, we are currently unable to
estimate the remaining amount of possible losses that might be incurred should these legal proceedings be resolved
against the Company.
The outcome of litigation and other legal matters is always uncertain, and outcomes that are not justified by the
evidence or existing law can occur. The Company believes that it has valid defenses to the legal matters pending
against it and is defending itself vigorously. Nevertheless, it is possible that resolution of one or any combination of
more than one legal matters could result in a material adverse impact on our financial position or results of
operations. For example, we are involved in a number of legal proceedings described in Financial Note 17 “Other
Commitments and Contingent Liabilities” contained in the accompanying consolidated financial statements which
could have such an impact, including class actions and other legal proceedings alleging that we engaged in illegal
conduct which caused average wholesale prices to rise for certain prescription drugs during specified periods.