McKesson 2016 Annual Report Download - page 127

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McKESSON CORPORATION
FINANCIAL NOTES (Continued)
Information regarding the share repurchase activity over the last three years is as follows:
Share Repurchases (1)
(In millions, except price per share data)
Total
Number of
Shares
Purchased (2) (3)
Average Price
Paid Per Share
Approximate
Dollar Value of
Shares that May
Yet Be Purchased
Under the Programs
Balance, March 31, 2013 $ 340
Shares repurchased — $ — —
Balance, March 31, 2014 $ 340
Shares repurchased 1.5 $226.55 (340)
Balance, March 31, 2015 $—
Shares repurchase plans authorized
May 2015 500
October 2015 2,000
Shares repurchased 8.7 $173.64 (1,504)
Balance, March 31, 2016 $ 996
(1) This table does not include shares tendered to satisfy the exercise price in connection with cashless exercises
of employee stock options or shares tendered to satisfy tax withholding obligations in connection with
employee equity awards.
(2) All of the shares purchased were part of the publicly announced programs.
(3) The number of shares purchased reflects rounding adjustments.
In 2016, our share repurchases were transacted through both open market transactions and an ASR program
with a third party financial institution. In 2015, all of our share repurchases were conducted through open market
transactions. All share repurchases were funded with cash on hand.
In 2016, we repurchased 4.5 million of the Company’s shares for $854 million through open market
transactions at an average price per share of $192.27. In February 2016, we entered into an ASR program with a
third party financial institution to repurchase $650 million of the Company’s common stock. The ASR program
was completed during the fourth quarter and we repurchased 4.2 million shares at an average price per share of
$154.04. During 2016, we completed the May 2015 share repurchase authorization. At March 31, 2016,
$1.0 billion remained available for future authorized repurchases of the Company’s common stock under the
October 2015 authorization.
In 2016, we retired 115.5 million or $7.8 billion by the Company’s treasury shares previously repurchased.
Under the applicable state law, these shares resume the status of authorized and unissued shares upon retirement.
In accordance with our accounting policy, we allocate any excess of share repurchase price over par value
between additional paid-in capital and retained earnings. Accordingly, our retained earnings and additional paid-
in capital were reduced by $6.35 billion and $1.5 billion during 2016.
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