McKesson 2012 Annual Report Download - page 104

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
100
In 2012 and 2011, the majority of our share repurchases were transacted through a number of ASR programs
with third party financial institutions as follows: $1.0 billion in May 2010, $275 million in March 2011,
$650 million in May 2011 and $1.2 billion in March 2012. In 2010, all of our share repurchases were conducted
through open market transactions. All programs were funded with cash on hand.
In March 2012, we entered into an ASR program with a third party financial institution to repurchase $1.2
billion of the Company’s common stock. As of March 31, 2012, we had received 12 million shares representing the
minimum number of shares due under this program, and the average price paid per share of $87.19 was based on the
average daily volume-weighted average price of our common stock less a discount calculated as of March 31, 2012.
The total number of shares to be ultimately repurchased by us and the final settlement price per share will be
determined at the completion of this program based on the average daily volume-weighted average price of our
common stock during the program, less a discount. This program is anticipated to be completed no later than the
second quarter of 2013.
In April 2012, the Board authorized the repurchase of an additional $700 million of the Company’s common
stock, bringing the total authorization outstanding to $1.0 billion.
Accumulated Other Comprehensive Income
Information regarding our accumulated other comprehensive income is as follows:
March 31,
(In millions) 2012 2011
Unrealized net loss and other components of benefit plans, net of tax $ (178) $ (157)
Translation adjustments 188 244
Unrealized losses on derivative instruments, net of tax (5) —
Total $ 5 $ 87
21. Related Party Balances and Transactions
Notes receivable outstanding from certain of our current and former officers totaled $15 million at
March 31, 2012 and 2011. These notes related to purchases of common stock under our various employee stock
purchase plans. The notes bear interest at rates ranging from 4.7% to 7.1% and were due at various dates through
February 2004. Interest income on these notes is recognized only to the extent that cash is received. These notes,
which are included in other capital in the consolidated balance sheets, were issued for amounts equal to the market
value of the stock on the date of the purchase and are at full recourse to the borrower. At March 31, 2012, the value
of the underlying stock collateral was $15 million. The collectability of these notes is evaluated on an ongoing
basis. At March 31, 2012 and 2011, we provided a reserve of nil and approximately $1 million for the outstanding
notes.
We incurred $10 million in 2012 and $11 million in 2011 and 2010 of annual rental expense paid to an equity-
held investment.