McKesson 2005 Annual Report Download - page 70

McKESSON CORPORATION
FINANCIAL NOTES (Continued)
11. Goodwill and Other Intangibles
Changes in the carrying amount of goodwill were as follows:
Information regarding other intangible assets is as follows:
Amortization expense of other intangible assets was $23.6 million, $21.2 million and $18.2 million for 2005, 2004 and 2003. The weighted
average remaining amortization period for customer lists, technology, and trademarks and other intangible assets at March 31, 2005 was:
8 years, 4 years and 4 years. Estimated future annual amortization expense of these assets is as follows: $18.9 million, $18.7 million,
$15.0 million, $6.5 million and $2.0 million for 2006 through 2010, and $7.2 million thereafter. At March 31, 2005, there were $21.1 million
of other intangible assets not subject to amortization.
12. Long-Term Debt and Other Financing
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Pharmaceutical Medical-Surgical Provider
(In millions) Solutions Solutions Technolo
g
ies Total
Balance, March 31, 2003 $264.6 $722.1 $ 367.5 $1,354.2
Goodwill acquired 30.0 3.1 1.8 34.9
Translation adjustments 3.1 — 13.6 16.7
Balance, March 31, 2004 297.7 725.2 382.9 1,405.8
Goodwill acquired 24.5 18.8 3.9 47.2
Sale of business (10.3) —
—
(10.3)
Translation adjustments 1.1 — 8.6 9.7
Balance, March 31, 2005 $ 313.0 $ 744.0 $ 395.4 $1,452.4
March 31,
(In millions) 2005 2004
Customer lists $ 102.8 $92.9
Technology 71.0 61.2
Trademarks and other 32.7 23.8
Gross intangibles 206.5 177.9
Accumulated amortization (117.1)(93.5)
Other intangible assets, net $89.4 $84.4
March 31,
(In millions) 2005 2004
8.91% Series A Senior Notes due February, 2005 $
—
$100.0
8.95% Series B Senior Notes due February, 2007 20.0 20.0
9.13% Series C Senior Notes due February, 2010 215.0 215.0
6.30% Notes due March, 2005
—
150.0
6.40% Notes due March, 2008 150.0 150.0
7.75% Notes due February, 2012 398.6 398.4
7.65% Debentures due March, 2027 175.0 175.0
5.00% Convertible Junior Subordinated Debentures due June 2027 206.2 206.2
ESOP related debt (see Financial Note 15) 36.1 52.5
Other 9.6 17.5
Total debt 1,210.5 1,484.6
Less current portion 8.8 274.8
Total long-term debt $1,201.7 $1,209.8