McKesson 2013 Annual Report Download - page 80

Download and view the complete annual report

Please find page 80 of the 2013 McKesson annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 128

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128

74
McKESSON CORPORATION
FINANCIAL NOTES (Continued)
Employee Stock Purchase Plan (“ESPP”)
The Company has an ESPP under which 16 million shares have been authorized for issuance. The ESPP allows eligible
employees to purchase shares of our common stock through payroll deductions. The deductions occur over three-month
purchase periods and the shares are then purchased at 85% of the market price at the end of each purchase period. Employees
are allowed to terminate their participation in the ESPP at any time during the purchase period prior to the purchase of the
shares. The 15% discount provided to employees on these shares is included in compensation expense. The shares related to
funds outstanding at the end of a quarter are included in the calculation of diluted weighted average shares outstanding. These
amounts have not been significant. In 2013, 2012 and 2011, 1 million shares were issued under the ESPP and 1 million shares
remain available for issuance at March 31, 2013.
6. Other Income (Expense), Net
Years Ended March 31,
(In millions) 2013 2012 2011
Interest income $ 22 $ 19 $ 18
Equity in earnings (loss), net (1) 3 9 (6)
Reimbursement of post-acquisition interest expense
—
—
16
Impairment of an investment
—
(6)
—
Other, net 10 (1) 8
Total $ 35 $ 21 $ 36
(1) Primarily recorded within our Distribution Solutions segment.
In 2011, other income (expense), net included a credit of $16 million representing the reimbursement of post-acquisition
interest expense by the former shareholders of US Oncology, which is recorded in Corporate.
We evaluate our investments for impairment when events or changes in circumstances indicate that the carrying values of
such investments may have experienced an other-than-temporary decline in value.
7. Income Taxes
Years Ended March 31,
(In millions) 2013 2012 2011
Income from continuing operations before income taxes
U.S. $ 1,578 $ 1,316 $ 1,161
Foreign 341 603 474
Total income from continuing operations before income taxes $ 1,919 $ 1,919 $ 1,635