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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
billion and $10.7 billion at March 31, 2014. The estimated fair values of our long-term debt and other financing
were determined using quoted market prices in a less active market and other observable inputs from available
market information, which are considered to be Level 2 inputs, and may not be representative of actual values
that could have been realized or that will be realized in the future.
Assets Measured at Fair Value on a Recurring Basis
Our financial assets measured at fair value on a recurring basis consist of the following:
March 31, 2015 March 31, 2014
(In millions) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total
Cash Equivalents
Money market funds (1) $2,880 $— $— $2,880 $2,284 $— $— $2,284
Time deposits (2) —94— 94—12— 12
Repurchase agreements (2) 1,243 — — 1,243 569 — — 569
Total cash equivalents $4,123 $ 94 $— $4,217 $2,853 $ 12 $— $2,865
(1) Gross unrealized gain and losses were not material for the years ended March 31, 2015 and 2014 based on
quoted prices of identical investments.
(2) The carrying amounts of these cash equivalents approximated their estimated fair values because of their
short maturities.
Fair values of our marketable securities were determined using quoted prices in active markets for identical
assets, which are considered Level 1 inputs under the fair value measurements and disclosure guidance. Fair
values for our marketable securities were not material at March 31, 2015 and 2014.
Fair values of our forward foreign currency derivatives were determined using quoted market prices of
similar instruments in an active market and other observable inputs from available market information. These
inputs are considered Level 2 under the fair value measurements and disclosure guidance, and may not be
representative of actual values that could have been realized or that will be realized in the future. Refer to
Financial Note 19, “Hedging Activities,” for more information on our forward foreign currency derivatives.
There were no transfers between Level 1, Level 2 or Level 3 of the fair value hierarchy during the years
ended March 31, 2015 and 2014.
Assets Measured at Fair Value on a Nonrecurring Basis
We measure certain long-lived assets at fair value on a nonrecurring basis when they are deemed to be
other-than-temporarily impaired. If the cost of an investment exceeds its fair value, we evaluate, among other
factors, our intent to hold the investment, general market conditions, the duration and extent to which the fair
value is less than cost and the financial outlook for the industry and location. An impairment charge is recorded
when the cost of the asset exceeds its fair value and this condition is determined to be other-than-temporary.
Fiscal 2015
As discussed in Financial Note 4, “Discontinued Operations,” during the fourth quarter of 2015, we recorded
a $241 million pre-tax ($235 million after-tax) non-cash impairment charge to reduce the carrying value of our
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