McKesson 2009 Annual Report Download - page 91

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
85
In accordance with the provisions of SFAS No. 128, “Earnings per Share,” the 2009 PeRSUs are included in the
calculation of diluted weighted average shares for the year ended March 31, 2009 as the performance goals have
been achieved.
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 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 2009, 2008 and 2007, 1 million
shares were issued under the ESPP and 4 million shares remain available for issuance at March 31, 2009.
4. Restructuring Activities and Other Workforce Reduction Charges
The following table summarizes the activity related to our restructuring liabilities for the three years ended
March 31, 2009:
Distribution Solutions Technology Solutions Corporate
(In millions) Severance Exit-Related Severance Exit-Related Severance Total
Balance, March 31, 2006 $6 $ 29 $ - $ 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
Expenses 4 - (1) (1) (1) 1
Liabilities related to
acquisitions 3 1 - - - 4
Cash expenditures (8) (5) (4) (2) - (19)
Non-cash items - - - (1) - (1)
Balance, March 31, 2009 $6 $ 3 $ 1 $ 2 $ 1 $ 13
Our restructuring activities are primarily due to the consolidation of business functions and facilities from
newly acquired businesses.