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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
77
8. Property, Plant and Equipment, Net
March 31,
(In millions) 2008 2007
Land $ 50 $ 43
Building, machinery and equipment 1,652 1,463
Total property, plant and equipment 1,702 1,506
Accumulated depreciation (927) (822)
Property, plant and equipment, net $ 775 $ 684
9. Goodwill and Intangible Assets, Net
Changes in the carrying amount of goodwill were as follows:
(In millions)
Distribution
Solutions
Technology
Solutions Total
Balance, March 31, 2006 $ 1,150 $ 487 $ 1,637
Goodwill acquired, net of purchase price adjustments 234 1,088 1,322
Translation adjustments 2 14 16
Balance, March 31, 2007 1,386 1,589 2,975
Goodwill acquired, net of purchase price adjustments 282 59 341
Translation adjustments 4 25 29
Balance, March 31, 2008 $ 1,672 $ 1,673 $ 3,345
Information regarding intangible assets is as follows:
March 31,
(In millions) 2008 2007
Customer lists $ 725 $ 593
Technology 176 161
Trademarks and other 61 56
Gross intangibles 962 810
Accumulated amortization (301) (197)
Intangible assets, net $ 661 $ 613
Amortization expense of intangible assets was $107 million, $53 million and $28 million for 2008, 2007 and
2006. The weighted average remaining amortization period for customer lists, technology, trademarks and other
intangible assets at March 31, 2008 was: 8 years, 3 years and 8 years. Estimated future annual amortization expense
of these assets is as follows: $113 million, $97 million, $90 million, $83 million and $67 million for 2009 through
2013, and $207 million thereafter. At March 31, 2008 and 2007, there were $4 million and $17 million of intangible
assets not subject to amortization.