McKesson 2006 Annual Report Download - page 11

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McKESSON CORPORATION
Environmental Legislation: We sold our chemical distribution operations in 1987 and retained responsibility for certain environmental
obligations. Agreements with the Environmental Protection Agency and certain states may require environmental assessments and cleanups at
several closed sites. These matters are described further in Financial Note 18, “Other Commitments and Contingent Liabilities,” of this Annual
Report on Form 10-K. Other than any capital expenditures that may be required in connection with those legal matters, we do not anticipate
making substantial capital expenditures either for environmental issues, or to comply with environmental laws and regulations in the future.
The amount of our capital expenditures for environmental compliance was not material in 2006 and is not expected to be material in the next
year.
Employees: On March 31, 2006, we employed approximately 26,400 persons compared to 25,200 in 2005 and 24,600 in 2004.
Financial Information About Foreign and Domestic Operations and Export Sales: Information as to foreign operations is included in
Financial Notes 1 and 21 to the consolidated financial statements, “Significant Accounting Policies” and “Segments of Business,” appearing in
this Annual Report on Form 10-K.
Item 1A. Risk Factors
Information regarding our risk factors is included in the Financial Review under the captions “Factors Affecting Forward-Looking
Statements” and “Additional Factors That May Affect Future Results,” beginning on page 45 of the Annual Report on Form 10-K.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
Because of the nature of our principal businesses, plant, warehousing, office and other facilities are operated in widely dispersed locations.
The warehouses are typically owned or leased on a long-term basis. We consider our operating properties to be in satisfactory condition and
adequate to meet our needs for the next several years without making capital expenditures materially higher than historical levels. Information
as to material lease commitments is included in Financial Note 13 to the consolidated financial statements, “Lease Obligations,” appearing in
this Annual Report on Form 10-K.
Item 3. Legal Proceedings
Certain legal proceedings in which we are involved are discussed in Financial Note 18 to our consolidated financial statements, “Other
Commitments and Contingent Liabilities,” to the accompanying consolidated financial statements, which is incorporated by reference.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders, through the solicitation of proxies or otherwise, during the three months ended
March 31, 2006.
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