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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
71
The following table summarizes RSU activity during 2012, 2011 and 2010:
(In millions, except per share data) Shares
Weighted-
Average
Grant Date Fair
Value Per Share
Nonvested, March 31, 2009 3 $ 54.70
Granted 2 40.94
Vested (1) 50.42
Nonvested, March 31, 2010 4 $ 49.21
Granted 3 67.84
Vested (1) 61.05
Nonvested, March 31, 2011 6 $ 57.79
Granted 2 82.71
Vested (1) 57.95
Nonvested, March 31, 2012 7 $ 65.14
The following table provides data related to RSU activity:
Years Ended March 31,
(Dollars in millions) 2012 2011 2010
Total fair value of shares vested $ 44 $ 43 $ 74
Total compensation cost, net of estimated forfeitures,
related to nonvested RSU awards not yet recognized,
pre-tax $ 143 $ 131 $ 61
Weighted-average period in years over which RSU cost
is expected to be recognized 3 2 2
In May 2011, the Compensation Committee approved 1 million PeRSU target share units representing the base
number of awards that could be granted, if goals are attained, and would be granted in the first quarter of 2013 (the
“2012 PeRSU”). These target share units are not included in the table above as they have not been granted in the
form of RSUs. As of March 31, 2012, the total pre-tax compensation expense, net of estimated forfeitures, related
to nonvested 2012 PeRSUs not yet recognized was approximately $81 million, (based on the period-end market
price of the Company’s common stock) and the weighted-average period over which the cost is expected to be
recognized is 3 years.
Employee Stock Purchase Plan (“ESPP”)
The Company has an ESPP under which 16 million shares have been authorized for issuance. The ESPP allows
eligible employees to purchase shares of our common stock through payroll deductions. The deductions occur over
three-month purchase periods and the shares are then purchased at 85% of the market price at the end of each
purchase period. Employees are allowed to terminate their participation in the ESPP at any time during the purchase
period prior to the purchase of the shares. The 15% discount provided to employees on these shares is included in
compensation expense. The shares related to funds outstanding at the end of a quarter are included in the calculation
of diluted weighted average shares outstanding. These amounts have not been significant. In 2012, 2011 and 2010,
1 million shares were issued under the ESPP and 2 million shares remain available for issuance at March 31, 2012.