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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
81
In March 2010, we repaid our $215 million 9.13% Series C Senior Notes which had matured.
Accounts Receivable Sales Facility
In May 2009, we renewed our accounts receivable sales facility for an additional one year period under terms
similar to those previously in place. The renewed facility will expire in mid-May 2010. Based on our existing
accounts receivable sales facility agreement, we anticipate that activity under this facility may, for U.S. GAAP
purposes, be considered as a secured borrowing rather than a sale under accounting standards that will become
effective for us on April 1, 2010. We anticipate renewing this facility before its expiration. The aggregate
commitment of the purchasers under this facility is $1.1 billion, although from time-to-time, the available amount
may be less than that amount based on concentration limits and receivable eligibility requirements.
Information regarding our outstanding balances related to our interests in accounts receivable sold or qualifying
receivables retained is as follows:
March 31,
(In millions) 2010 2009
Receivables sold outstanding $ — $ —
Receivables retained, net of allowance for doubtful accounts 4,887 4,814
The following table summarizes the activity related to our interests in accounts receivable sold:
Years Ended March 31,
(In millions) 2010 2009 2008
Proceeds from accounts receivable sales $ — $ 5,780 $ 1,075
Fees and charges (1) 11 10 2
(1) Recorded in operating expenses in the consolidated statements of operations.
The delinquency ratio for the qualifying receivables represented less than 1% of the total qualifying receivables
as of March 31, 2010 and March 31, 2009.
Revolving Credit Facility
We have a syndicated $1.3 billion five-year senior unsecured revolving credit facility, which expires in June
2012. Borrowings under this credit facility bear interest based upon either a Prime rate or the London Interbank
Offering Rate. There were no borrowings under this facility in 2010 and $279 million for 2009. As of March 31,
2010 and 2009, there were no amounts outstanding under this facility.
Commercial Paper
We issued and repaid commercial paper of nil and approximately $3.3 billion and $260 million in 2010, 2009
and 2008. There were no commercial paper issuances outstanding at March 31, 2010 and 2009.
Debt Covenants
Our various borrowing facilities and long-term debt are subject to certain covenants. Our principal debt
covenant is our debt to capital ratio under our unsecured revolving credit facility, which cannot exceed 56.5%. If we
exceed this ratio, repayment of debt outstanding under the revolving credit facility could be accelerated. As of
March 31, 2010, this ratio was 23.4% and we were in compliance with our other financial covenants.