McKesson 2014 Annual Report Download - page 54

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McKESSON CORPORATION
FINANCIAL REVIEW (Continued)
51
Debt Covenants
Our various borrowing facilities and long-term debt are subject to certain covenants. Our principal debt covenant is our U.S.
dollar denominated debt to capital ratio under our $1.3 billion unsecured revolving credit facility, which cannot exceed 65%. For
the purpose of calculating this ratio, borrowings under the $1.35 billion Accounts Receivable Sales facility are excluded. If we
exceed this ratio, repayment of debt outstanding under the revolving credit facility could be accelerated. As of March 31, 2014,
we were in compliance with our financial covenants.
Funds necessary for future debt maturities and our other cash requirements are expected to be met by existing cash balances,
cash flow from operations, existing credit sources and other capital market transactions.
Additional information regarding our accounts receivable sales facility is included in Financial Notes 1 and 14, “Significant
Accounting Policies” and “Debt and Financing Activities,” to the consolidated financial statements appearing in this Annual Report
on Form 10-K.
RELATED PARTY BALANCES AND TRANSACTIONS
Information regarding our related party balances and transactions is included in Financial Note 24, “Related Party Balances
and Transactions,” to the consolidated financial statements appearing in this Annual Report on Form 10-K.
NEW ACCOUNTING PRONOUNCEMENTS
New accounting pronouncements that we have recently adopted, as well as those that have been recently issued but not yet
adopted by us, are included in Financial Note 1, “Significant Accounting Policies,” to the consolidated financial statements
appearing in this Annual Report on Form 10-K.