McKesson 2014 Annual Report Download - page 43

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McKESSON CORPORATION
FINANCIAL REVIEW (Continued)
40
Fiscal 2012
On March 25, 2012, we acquired substantially all of the assets of Drug Trading Company Limited, the independent banner
business of the Katz Group Canada Inc. (“Katz Group”), and Medicine Shoppe Canada Inc., the franchise business of the Katz
Group (collectively, “Katz Assets”) for $925 million, which was funded from cash on hand. The acquisition of the assets from
the Drug Trading Company Limited consists of a marketing and purchasing arm of independently owned pharmacies in Canada.
The acquisition of Medicine Shoppe Canada Inc. consists of the franchise business of providing services to independent pharmacies
in Canada. Financial results for the acquired Katz Assets have been included in the results of operations within our Canadian
pharmaceutical distribution and services business, which is part of our Distribution Solutions segment, beginning in the first quarter
of 2013.
During the last three years, we also completed a number of other smaller acquisitions within both of our operating segments.
Financial results for our business acquisitions have been included in our consolidated financial statements since their respective
acquisition dates. Purchase prices for our business acquisitions have been allocated based on estimated fair values at the date of
acquisition.
Goodwill recognized for our business acquisitions is generally not expected to be deductible for tax purposes. However, if
we acquire the assets of a company, the goodwill may be deductible for tax purposes. The pro forma results of operations for our
business acquisitions and the results of operations for these acquisitions since the acquisition date have not been presented because
the effects were not material to the consolidated financial statements on either an individual or an aggregate basis.
Refer to Financial Notes 2 and 14, “Business Combinations” and “Debt and Financing Activities,” to the consolidated financial
statements appearing in this Annual Report on Form 10-K for additional information.
2015 Outlook
Information regarding the Company’s 2015 outlook is contained in our Form 8-K dated May 13, 2014. This Form 8-K should
be read in conjunction with the sections Item 1 - Business - Forward-Looking Statements and Item 1A - Risk Factors in Part 1 of
this Annual Report on Form 10-K.