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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
72
4. Restructuring Activities and Other Workforce Reduction Charges
The following table summarizes the activity related to our restructuring liabilities for the last three years:
Distribution Solutions Technology Solutions Corporate
(In millions) Severance Exit-Related Severance Exit-Related Severance Total
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 payments (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 payments (8) (5) (4) (2) — (19)
Non-cash items — — — (1) — (1)
Balance, March 31, 2009 6 3 1 2 1 13
Expenses 1 — 1 (1) 1 2
Cash payments (3) — (1) (1) (1) (6)
Balance, March 31, 2010 $ 4 $ 3 $ 1 $ — $ 1 $ 9
Our restructuring activities are primarily due to the consolidation of business functions and facilities from
newly acquired businesses.
Restructuring Activities and Asset Impairment – Expenses
During 2010 and 2009, there were no material restructuring costs incurred.
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.