McKesson 2016 Annual Report Download - page 36

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McKESSON CORPORATION
Our retail stores may require additional management time and attention. Failure to properly supervise the
operation and maintain the consistency of the customer experience in those retail stores could result in loss of
customers and potentially adversely affect our results of operations.
We may be unable to keep existing retail store locations or open new retail locations in desirable places, which
could materially adversely affect our results of operations.
We may be unable to keep existing retail locations or open new retail locations in desirable places in the
future. We compete with other retailers and businesses for suitable retail locations. Local land use, local zoning
issues, environmental regulations and other regulations may affect our ability to find suitable retail locations and
also influence the cost of leasing or buying them. We also may have difficulty negotiating real estate leases for
new stores, renewing real estate leases for existing stores or negotiating purchase agreements for new sites on
acceptable terms. In addition, construction, environmental, zoning and real estate delays may negatively affect
retail location openings and increase costs and capital expenditures. If we are unable to keep up our existing
retail store locations or open new retail store locations in desirable places and on favorable terms, our results of
operations could be materially adversely affected.
Item 1B. Unresolved Staff Comments.
None.
Item 2. Properties.
Because of the nature of our principal businesses, our plant, warehousing, retail pharmacies, office and other
facilities are operated in widely dispersed locations, primarily throughout North America and Europe. The
warehouses and retail pharmacies are typically owned or leased on a long-term basis. We consider our operating
properties to be in satisfactory condition and adequate to meet our needs for the next several years without
making capital expenditures materially higher than historical levels. Information as to material lease
commitments is included in Financial Note 22, “Lease Obligations,” to the consolidated financial statements
appearing in this Annual Report on Form 10-K.
Item 3. Legal Proceedings.
Certain legal proceedings in which we are involved are discussed in Financial Note 24, “Commitments and
Contingent Liabilities,” to the consolidated financial statements appearing in this Annual Report on Form 10-K.
Item 4. Mine Safety Disclosures.
Not applicable.
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