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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
95
Amortization expense of intangible assets was $128 million, $107 million and $53 million for 2009, 2008 and
2007. The weighted average remaining amortization periods for customer lists, technology, trademarks and other
intangible assets at March 31, 2009 were: 7 years, 3 years and 7 years. Estimated annual amortization expense of
these assets is as follows: $119 million, $111 million, $105 million, $86 million and $74 million for 2010 through
2014, and $166 million thereafter. At March 31, 2008, there was an immaterial amount of intangible assets not
subject to amortization. All intangible assets were subject to amortization as of March 31, 2009.
12. Long-Term Debt and Other Financing
March31,
(In millions) 2009 2008
9.13% Series C Senior Notes due February, 2010 $ 215 $ 215
7.75% Notes due February, 2012 399 399
5.25% Notes due March, 2013 499 498
6.50% Notes due February, 2014 350 -
5.70% Notes due March, 2017 499 499
7.50% Notes due February, 2019 349 -
7.65% Debentures due March, 2027 175 175
ESOP related debt (see Financial Note 13) 1 4
Other 22 7
Total debt 2,509 1,797
Less current portion (219) (2)
Total long-term debt $ 2,290 $ 1,795
Long-Term Debt
On February 12, 2009, we issued 6.50% notes due February 15, 2014 (the “2014 Notes”) in an aggregate
principal amount of $350 million and 7.50% notes due February 15, 2019 (the “2019 Notes”) in an aggregate
principal amount of $350 million. Interest is payable on February 15 and August 15 of each year beginning on
August 15, 2009. The 2014 Notes will mature on February 15, 2014 and the 2019 Notes will mature on February
15, 2019. We utilized net proceeds, after offering expenses, of $693 million from the issuance of the 2014 Notes
and 2019 Notes for general corporate purposes.
On March 5, 2007, we issued 5.25% notes due March 1, 2013 (the “2013 Notes”) in an aggregate principal
amount of $500 million and 5.70% notes due March 1, 2017 (the “2017 Notes,” collectively with the 2013 Notes,
2014 Notes, 2019 Notes, the “Notes” and each note constitutes a “Series”) in an aggregate principal amount of $500
million for which interest is payable on March 1 and September 1 of each year. The 2013 Notes will mature on
March 1, 2013 and the 2017 Notes will mature on March 1, 2017. We utilized net proceeds, after offering expenses,
of $990 million from the issuance of the 2013 Notes and 2017 Notes, together with cash on hand, to repay
outstanding interim indebtedness related to our January 2007 acquisition of Per-Se.
Each Series constitutes an unsecured and unsubordinated obligation of the Company and ranks equally with all
of the Company’s existing and future unsecured and unsubordinated indebtedness outstanding from time to time.
Each Series is governed by an indenture common to all Notes and an officers’ certificate specifying certain terms of
each Series.