Summary
McKesson Corporation's (MCK) 10-Q filing for the quarter ending June 29, 2010, indicates a stable operational and financial environment. The company reported no material changes in its exposure to market risks related to interest and foreign currency exchange rates, nor any significant shifts in its disclosure controls, procedures, or internal financial controls. Management has reaffirmed the effectiveness of these controls, providing assurance to investors regarding the reliability of financial reporting. The report also addresses legal proceedings and risk factors, stating no material changes from previously disclosed information in the 2010 Annual Report (10-K). Significant activity during the quarter involved share repurchases, particularly through an Accelerated Share Repurchase (ASR) program which concluded on July 26, 2010. The company repurchased 12.7 million shares for $1 billion during the first quarter, with an additional 1.9 million shares received post-quarter end, bringing the total repurchased under the ASR to 14.6 million shares at an average price of $68.66. This indicates a commitment to returning capital to shareholders and potentially managing its share count. Investors should note that these repurchases do not include shares used for employee stock option exercises or tax withholding.
Financial Highlights
45 data points| Revenue | $27.45B |
| Cost of Revenue | $26.06B |
| Gross Profit | $1.39B |
| Operating Income | $474.00M |
| Net Income | $298.00M |
| EPS (Basic) | $1.12 |
| EPS (Diluted) | $1.10 |
| Shares Outstanding (Basic) | 266.00M |
| Shares Outstanding (Diluted) | 272.00M |
Key Highlights
- 1No material changes in market risk exposure (interest and foreign currency exchange rates) were reported.
- 2Disclosure controls and procedures, as well as internal control over financial reporting, were evaluated and found to be effective by management.
- 3No changes in internal controls over financial reporting that materially affect them were identified during the quarter.
- 4No material changes were noted in the risk factors previously disclosed in the company's 2010 Annual Report (10-K).
- 5The company repurchased 12.7 million shares for $1 billion under an Accelerated Share Repurchase (ASR) program during the quarter.
- 6The ASR program was completed post-quarter, resulting in a total repurchase of 14.6 million shares at an average price of $68.66.
- 7Several exhibits related to incentive plans, stock plans, and financing agreements were filed, including amendments and restatements.