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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
The following is a summary of stock options outstanding at March 31, 2015:
Options Outstanding Options Exercisable
Range of Exercise
Prices
Number of Options
Outstanding
at Year End
(In millions)
Weighted-Average
Remaining
Contractual
Life (Years)
Weighted-
Average
Exercise Price
Number of Options
Exercisable at
Year End
(In millions)
Weighted-
Average
Exercise Price
$40.46 – $133.27 4 3 $ 79.38 2 $ 68.80
133.28 – 226.05 1 6 182.38 — 155.87
52
The following table summarizes stock option activity during 2015:
(In millions, except per share data) Shares
Weighted-
Average
Exercise
Price
Weighted-Average
Remaining
Contractual
Term (Years)
Aggregate
Intrinsic
Value (2)
Outstanding, March 31, 2014 6 $ 78.07 4 $473
Granted 1 184.84
Exercised (2) 67.64
Outstanding, March 31, 2015 5 $ 95.01 4 $539
Vested and expected to vest (1) 5 $ 95.01 4 $538
Vested and exercisable, March 31, 2015 2 69.27 3 363
(1) The number of options expected to vest takes into account an estimate of expected forfeitures.
(2) The intrinsic value is calculated as the difference between the period-end market price of the Company’s
common stock and the exercise price of “in-the-money” options.
The following table provides data related to stock option activity:
Years Ended March 31,
(In millions, except per share data) 2015 2014 2013
Weighted-average grant date fair value per stock option $35.49 $21.45 $19.63
Aggregate intrinsic value on exercise $ 153 $ 144 $ 107
Cash received upon exercise $ 76 $ 111 $ 106
Tax benefits realized related to exercise $ 60 $ 55 $ 41
Total fair value of stock options vested $ 20 $ 24 $ 24
Total compensation cost, net of estimated forfeitures, related to unvested stock
options not yet recognized, pre-tax $ 22 $ 29 $ 37
Weighted-average period in years over which stock option compensation cost is
expected to be recognized 2 1 1
Restricted Stock Unit Awards
RSUs, which entitle the holder to receive at the end of a vesting term a specified number of shares of the
Company’s common stock, are accounted for at fair value at the date of grant. Total compensation expense for
RSUs under our stock plans is determined by the product of the number of shares that are expected to vest and
the grant date market price of the Company’s common stock. The Compensation Committee determines the
vesting terms at the time of grant. These awards generally vest in three to four years. We recognize expense for
RSUs on a straight-line basis over the requisite service period.
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