McKesson 2012 Annual Report Download - page 103

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
99
In addition, the Company has been designated as a PRP under the Superfund law for environmental assessment
and cleanup costs as the result of its alleged disposal of hazardous substances at 13 sites. With respect to these sites,
numerous other PRPs have similarly been designated and while the current state of the law potentially imposes joint
and several liability upon PRPs, as a practical matter, costs of these sites are typically shared with other PRPs. At
one of these sites, the United State Environmental Protection Agency has recently selected a preferred remedy with
an estimated cost of approximately $70 million. It is not certain at this point in time what proportion of this
estimated liability will be borne by the Company or by the other PRPs. Accordingly, the Company’s estimated
probable loss at those 13 sites is approximately $1 million, which has been entirely accrued for in the accompanying
consolidated balance sheets. The aggregate settlements and costs paid by the Company in Superfund matters to date
have not been significant.
V. Other Matters
The Company is involved in various other litigation and governmental proceedings, not described above, that
arise in the normal course of business. While it is not possible to determine the ultimate outcome or the duration of
any such litigation or governmental proceedings, the Company believes, based on current knowledge and the advice
of counsel, that such litigation and proceedings will not have a material impact on the Company’s financial position
or results of operations.
20. 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 April 2011, the quarterly dividend was raised from $0.18 to $0.20 per common share for dividends declared
after such date, until further action by the Board. Dividends were $0.80 per share in 2012, $0.72 per share in 2011
and $0.48 per share in 2010. 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 Repurchases
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.
The Board authorized the repurchase of the Company’s common stock as follows: $1.0 billion in April 2010,
$1.0 billion in October 2010, $1.0 billion in April 2011 and $650 million in January 2012.
Total share repurchases transacted through ASR programs and open market transactions over the last three
years were as follows:
Years Ended March 31,
(In millions, except per share data) 2012
2011
2010
N
umber of shares repurchased (1) 20 29 8
Average price paid per share $ 83.47 $ 69.62 $ 41.47
Total value of shares repurchased $ 1,850 $ 2,032 $ 299
(1) Excludes shares surrendered for tax withholding.