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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
74
4. Restructuring Activities
The following table summarizes the activity related to our restructuring liabilities for the three years ended
March 31, 2008:
Distribution Solutions Technology Solutions Corporate
(In millions) Severance Exit-Related Severance Exit-Related Severance Total
Balance, March 31, 2005 $1$4 $-$1$1$7
Expenses (1) - - 1 - -
Liabilities related to
acquisition 10 30 - - - 40
Cash expenditures (4) (5) - (1) (1) (11)
Balance, March 31, 2006 629 - 1 - 36
Expenses 3 (1) 13 - - 15
Liabilities related to
acquisitions - (14) 8 4 - (2)
Cash expenditures (6) (8) (5) - - (19)
Balance, March 31, 2007 3 6 16 5 - 30
Expenses 5 - 1 4 2 12
Asset impairments - 3 - 4 - 7
Total charge 5 3 1 8 2 19
Liabilities related to
acquisitions 6 1 11 1 - 19
Cash expenditures (7) - (22) (4) - (33)
Non-cash items - (3) - (4) - (7)
Balance, March 31, 2008 $7$ 7 $ 6$ 6 $ 2 $ 28
Restructuring Activities and Asset Impairment – Expenses
During 2008, we incurred $19 million of restructuring expenses, which primarily consisted of:
−$4 million of severance costs associated with the closure of two facilities within our Distribution Solutions
segment,
−$1 million and $3 million of severance and asset impairments associated with the integration of OTN
within our Distribution Solutions segment, and
−$5 million of severance and exit-related costs and a $4 million asset impairment charge for the write-off of
capitalized software costs associated with the termination of a software project within our Technology
Solutions segment.
During 2007, we recorded $15 million of restructuring expenses, of which $8 million pertained to employee
severance costs associated with the reallocation of product development and marketing resources and the
realignment of an international business within our Technology Solutions segment.