McKesson 2011 Annual Report Download - page 28

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McKESSON CORPORATION
22
Our business could also be negatively impacted if our customers or suppliers experience disruptions resulting
from tighter capital and credit markets or a slowdown in the general economy. As a result, customers may modify,
delay or cancel plans to purchase or implement our products or services and suppliers may increase their prices,
reduce their output or change their terms of sale. Additionally, if customers’ or suppliers’ operating and financial
performance deteriorates or if they are unable to make scheduled payments or obtain credit, customers may not be
able to pay, or may delay payment of accounts receivable owed to us and suppliers may restrict credit, impose
different payment terms or be unable to make payments due to us for fees, returned products or incentives. Any
inability of customers to pay us for our products and services or any demands by suppliers for different payment
terms may have a material adverse impact on our results of operations and cash flow.
Changes in accounting standards issued by the Financial Accounting Standards Board (“FASB”) or other
standard-setting bodies may adversely affect our financial statements.
Our financial statements are subject to the application of U.S. GAAP, which is periodically revised and/or
expanded. Accordingly, from time-to-time we are required to adopt new or revised accounting standards issued by
recognized authoritative bodies, including the FASB and the SEC. It is possible that future accounting standards we
are required to adopt could change the current accounting treatment that we apply to our consolidated financial
statements and that such changes could have a material adverse impact on our results of operations and financial
condition.
Item 1B. Unresolved Staff Comments
Not applicable.
Item 2. Properties
Because of the nature of our principal businesses, our plant, warehousing, office and other facilities are operated
in widely dispersed locations, mostly throughout the U.S. and Canada. The warehouses are typically owned or
leased on a long-term basis. We consider our operating properties to be in satisfactory condition and adequate to
meet our needs for the next several years without making capital expenditures materially higher than historical
levels. Information as to material lease commitments is included in Financial Note 15, “Lease Obligations,” to the
consolidated financial statements appearing in this Annual Report on Form 10-K.
Item 3. Legal Proceedings
Certain legal proceedings in which we are involved are discussed in Financial Note 17, “Other Commitments
and Contingent Liabilities,” to the consolidated financial statements appearing in this Annual Report on Form 10-K.
Item 4. Reserved
Not applicable.