McKesson 2015 Annual Report Download - page 91

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
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 were not material in 2015 and 2014 and 1 million in 2013. At March 31, 2015,
5 million shares remain available for issuance.
8. Other Income, Net
Years Ended March 31,
(In millions) 2015 2014 2013
Interest income $ 20 $ 16 $ 22
Equity in earnings (loss), net (1) 12 — 3
Other, net (1) 31 16 9
Total $63 $32 $34
(1) Primarily recorded within our Distribution Solutions segment.
9. Income Taxes
Years Ended March 31,
(In millions) 2015 2014 2013
Income from continuing operations before income taxes
U.S. $1,893 $1,554 $1,562
Foreign 764 617 388
Total income from continuing operations before income taxes $2,657 $2,171 $1,950
Income tax expense related to continuing operations consists of the following:
Years Ended March 31,
(In millions) 2015 2014 2013
Current
Federal $453 $484 $ (84)
State 90 64 14
Foreign 101 193 46
Total current 644 741 (24)
Deferred
Federal 195 24 538
State 53 10 80
Foreign (77) (18) (7)
Total deferred 171 16 611
Income tax expense $815 $757 $587
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