McKesson 2014 Annual Report Download - page 82

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
79
Employee Stock Purchase Plan (“ESPP”)
The Company has an ESPP under which 21 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. Shares issued under the ESPP in 2014, 2013 and 2012 were nil, 1 million and 1 million. At March 31, 2014, 5 million
shares remain available for issuance.
7. Other Income, Net
Years Ended March 31,
(In millions) 2014 2013 2012
Interest income $ 23 $ 22 $ 19
Equity in earnings (loss), net (1) (3) 3 9
Other, net 12 9 (8)
Total $ 32 $ 34 $ 20
(1) Primarily recorded within our Distribution Solutions segment.
8. Income Taxes
Years Ended March 31,
(In millions) 2014 2013 2012
Income from continuing operations before income taxes
U.S. $ 1,554 $ 1,562 $ 1,293
Foreign 542 366 600
Total income from continuing operations before income taxes $ 2,096 $ 1,928 $ 1,893
Income tax expense related to continuing operations consists of the following:
Years Ended March 31,
(In millions) 2014 2013 2012
Current
Federal $ 484 $ (84) $ 265
State 64 14 51
Foreign 178 40 28
Total current 726 (30) 344
Deferred
Federal 24 538 132
State 10 80 29
Foreign (18)(7) 9
Total deferred 16 611 170
Income tax expense $ 742 $ 581 $ 514