McKesson 2011 Annual Report Download - page 107

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
101
18. Stockholders’ Equity
Each share of the Company’s outstanding common stock is permitted one vote on proposals presented to
stockholders and is entitled to share equally in any dividends declared by the Company’s Board of Directors (the
“Board”). In May 2010, the quarterly dividend was raised from $0.12 to $0.18 per common share. Dividends were
$0.72 per share in 2011 and $0.48 per share in 2010 and 2009. In April 2011, the Board approved an increase in the
quarterly dividend from $0.18 to $0.20 per share, applicable to ensuing quarterly dividend declarations. The
Company anticipates that it will continue to pay quarterly cash dividends in the future. However, the payment and
amount of future dividends remain within the discretion of the Board and will depend upon the Company’s future
earnings, financial condition, capital requirements and other factors.
Share Repurchase Plans
In April 2010, the Board authorized the repurchase of up to an additional $1.0 billion of the Company’s
common stock and in October 2010, authorized the repurchase of up to an additional $1.0 billion of the Company’s
common stock. The Board previously authorized the repurchase of up to $1.0 billion in April 2008. As of March 31,
2011, $500 million remained available for future repurchases under the October 2010 authorization. In April 2011,
the Board authorized the repurchase of up to an additional $1.0 billion of the Company’s common stock. Stock
repurchases may be made from time-to-time in open market transactions, privately negotiated transactions, through
accelerated share repurchase (“ASR”) programs, or by any combination of such methods. The timing of any
repurchases and the actual number of shares repurchased will depend on a variety of factors, including our stock
price, corporate and regulatory requirements, restrictions under our debt obligations and other market and economic
conditions.
In May 2010, we entered into an ASR program with a third party financial institution to repurchase $1.0 billion
of the Company’s common stock. As a result of the ASR program, we repurchased 12.7 million shares for $1.0
billion during the first quarter of 2011, which was funded with cash on hand. The May 2010 ASR program was
completed on July 26, 2010 and we received 1.9 million additional shares on July 29, 2010. The total number of
shares repurchased under this program was 14.6 million shares at an average price per share of $68.66.
In March 2011, we entered into another ASR program with a third party financial institution to repurchase $275
million of the Company’s common stock. The program was funded with cash on hand. As of March 31, 2011, we
had received 3.1 million shares representing the minimum number of shares due under the program. The ASR
program was completed on May 2, 2011 and we received 0.4 million additional shares on May 5, 2011. The total
number of shares repurchased under this ASR program was 3.5 million shares at an average price per share of
$79.65.
Total shares repurchased over the last three years were:
Years Ended March 31,
(in millions, except per share data)
2011
2010
2009
Number of shares repurchased
(1)
29
8
10
Average price paid per share
$
69.62
$
41.47
$
50.52
Total value of shares repurchased
$
2,032
$
299
$
484
(1) All of the shares repurchased were part of publically announced programs. The number of shares purchased reflects
rounding adjustments.