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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
112
Share repurchase plans: Stock repurchases may be made from time to time in open market or private
transactions. Information regarding our share repurchase activity is as follows:
Share Repurchases (1)
(In millions, except price per share)
Total
Number of Shares
Purchased (2) (3)
Average Price Paid
Per Share
Approximate Dollar
Value of Shares that
May Yet Be
Purchased Under
the Programs
Balance, March 31, 2006 $ 1
Share repurchase plans approved
April 2006 500
July 2006 500
Shares repurchased 20 $ 51.46 (1,001)
Balance, March 31, 2007 -
Share repurchase plans approved
April 2007 1,000
September 2007 1,000
Shares repurchased 28 $ 59.48 (1,686)
Balance, March 31, 2008 314
Share repurchase plan approved
April 2008 1,000
Shares repurchased 10 $ 50.52 (484)
Balance, March 31, 2009 830
(1) This table does not include shares tendered to satisfy the exercise price in connection with cashless exercises of employee
stock options or shares tendered to satisfy tax withholding obligations in connection with employee equity awards.
(2) All of the shares purchased were part of the publicly announced programs.
(3) The number of shares purchased reflects rounding adjustments.
In July 2008, the Board authorized the retirement of shares of the Company’s common stock that may be
repurchased from time to time pursuant to its stock repurchase program. During the second quarter of 2009, all of
the 4 million repurchased shares, which we purchased for $204 million, were formally retired by the Company. The
retired shares constitute authorized but unissued shares. We elected to allocate any excess of share repurchase price
over par value between additional paid-in capital and retained earnings. As such, $165 million was recorded as a
decrease to retained earnings.
20. Related Party Balances and Transactions
Notes receivable outstanding from certain of our current and former officers and senior managers totaled $16
million at March 31, 2009 and 2008. These notes related to purchases of common stock under our various employee
stock purchase plans. The notes bear interest at rates ranging from 4.7% to 7.1% and were due at various dates
through February 2004. Interest income on these notes is recognized only to the extent that cash is received. These
notes, which are included in other capital in the consolidated balance sheets, were issued for amounts equal to the
market value of the stock on the date of the purchase and are at full recourse to the borrower. At March 31, 2009,
the value of the underlying stock collateral was $7 million. The collectability of these notes is evaluated on an
ongoing basis. As a result, we recorded net credits of $2 million in 2007 based on changes in price of the underlying
stock collateral. At March 31, 2009 and 2008, we provided a reserve of approximately $9 million and $6 million for
the outstanding notes. Other receivable balances held with related parties, consisting of loans made to certain
officers and senior managers and an equity-held investment, at March 31, 2009 and 2008 amounted to $1 million.