McKesson 2015 Annual Report Download - page 58

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McKESSON CORPORATION
FINANCIAL REVIEW (Continued)
The Board authorized the repurchase of up to $500 million of the Company’s common stock in
January 2013. In 2015 and 2013, we repurchased 1.5 million and 13 million of our shares through an ASR
program and open market repurchases:
Years Ended March 31,
(In millions, except per share data) 2015 2014 2013
Number of shares repurchased (1) 1.5 — 13
Average price paid per share $226.55 $ — $100.82
Total value of shares repurchased (1) $ 340 $ — $ 1,159
(1) Excludes shares surrendered for tax withholding.
At March 31, 2015, no authorized amounts remain available for future repurchases of the Company’s
common stock under the January 2013 Board approved share purchase plan.
In May 2015, the Board authorized the repurchase of up to $500 million of the Company’s common stock.
During the fourth quarter of 2013, we retired approximately 2 million shares repurchased for $217 million
by the Company. The retired shares constitute authorized but unissued shares. We elected to allocate any excess
of share repurchase price over par value between additional paid-in capital and retained earnings. As such,
$195 million was recorded as a decrease to retained earnings.
We believe that our operating cash flow, financial assets and current access to capital and credit markets,
including our existing credit facilities, will give us the ability to meet our financing needs for the foreseeable
future. However, there can be no assurance that continued or increased volatility and disruption in the global
capital and credit markets will not impair our liquidity or increase our costs of borrowing.
Selected Measures of Liquidity and Capital Resources:
March 31,
(Dollars in millions) 2015 2014 2013
Cash and cash equivalents $5,341 $4,193 $2,456
Working capital 3,173 3,221 1,813
Debt, net of cash and cash equivalents 4,503 6,401 2,417
Debt to capital ratio (1) 55.2% 55.4% 40.8%
Net debt to net capital employed (2) 36.0 42.9 25.5
Return on McKesson stockholders’ equity (3) 17.0 16.2 18.3
(1) Ratio is computed as total debt divided by the sum of total debt and McKesson stockholders’ equity, which
excludes noncontrolling and redeemable noncontrolling interests.
(2) Ratio is computed as total debt, net of cash and cash equivalents (“net debt”), divided by the sum of net debt
and McKesson stockholders’ equity, which excludes noncontrolling and redeemable noncontrolling interests
(“net capital employed”).
(3) Ratio is computed as net income attributable to McKesson Corporation for the last four quarters, divided by
a five-quarter average of McKesson stockholders’ equity, which excludes noncontrolling and redeemable
noncontrolling interests.
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