McKesson 2009 Annual Report Download - page 67

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McKESSON CORPORATION
FINANCIAL REVIEW (Concluded)
61
Our $1.0 billion accounts receivable sales facility is generally renewed annually and will expire in June 2009.
We used this facility in 2009 to fund working capital requirements, as needed. We will seek to renew this facility
before it expires, although the fees associated with it may be higher than those currently charged due to the
condition of the credit markets. Although we believe we will be able to renew this facility, there is no assurance that
we will be able to do so.
Our business could also be negatively impacted if our customers or suppliers experience disruptions resulting
from tighter capital and credit markets or a slowdown in the general economy. As a result, customers may modify,
delay or cancel plans to purchase or implement our products or services and suppliers may increase their prices,
reduce their output or change their terms of sale. Additionally, if customers’ or suppliers’ operating and financial
performance deteriorates or if they are unable to make scheduled payments or obtain credit, customers may not be
able to pay, or may delay payment of accounts receivable owed to us and suppliers may restrict credit, impose
different payment terms or be unable to make payments due to us for fees, returned products or incentives. Any
inability of customers to pay us for our products and services or any demands by suppliers for different payment
terms, may adversely affect the Company’s earnings and cash flow.
Changes in accounting standards issued by the Financial Accounting Standards Board (“FASB”) or other
standard-setting bodies may adversely affect our financial statements.
Our financial statements are subject to the application of GAAP, which are periodically revised and/or
expanded. Accordingly, from time to time we are required to adopt new or revised accounting standards issued by
recognized authoritative bodies, including the FASB and the SEC. It is possible that future accounting standards we
are required to adopt could change the current accounting treatment that we apply to our consolidated financial
statements and that such changes could have a material adverse impact on our results of operations and financial
condition.