8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported): August 3, 2015

McKesson Corporation

(Exact name of registrant as specified in its charter)

Delaware	1-13252	94-3207296
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

One Post Street, San Francisco, California	94104
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (415) 983-8300

Not Applicable

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 7.01 Regulation FD Disclosure.

On August 3, 2015, McKesson Corporation (the “Company”) posted to its website supplemental financial information displaying the impact of foreign currency exchange rate fluctuations on the results of operations of the Company’s Distribution Solutions segment for the quarter ended June 30, 2015. From the main-page of the Company’s website, the posted material can be located under the “Investors” tab.

The information contained in this Form 8-K, including Exhibit 99.1, is furnished to the Securities and Exchange Commission (the “Commission”), but shall not be deemed “filed” with the Commission for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No.	Description
99.1	Supplemental constant currency financial information as posted to the Company’s website on August 3, 2015.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: August 3, 2015

McKesson Corporation
By:	/s/ James A. Beer
	James A. Beer
	Executive Vice President and
	Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description
99.1	Supplemental constant currency financial information as posted to the Company’s website on August 3, 2015.

EX-99.1

EXHIBIT 99.1

Constant Currency

McKesson Corporation (the “Company”) conducts business in a number of foreign countries in local currencies, including Euro, British pound and Canadian dollar. As a result, the comparability of our results reported in U.S. dollars can be affected by changes in foreign currency exchange rates. Financial results for the first quarter of fiscal 2016 reflected a weaker Euro against the U.S. dollar, partially offset by a stronger British pound against the Euro, compared to the first quarter of fiscal 2015.

Foreign currency effects and constant currency refer to the effect of changes in foreign currency exchange rates used to convert the local currency results of foreign countries where the functional currency is not the U.S. dollar. We present this information to provide a framework for assessing how our business performed excluding the effect of foreign currency rate fluctuations. In computing foreign currency and constant currency effects, we translate our current period results in local currencies by applying the prior period average foreign exchange rates, and we subsequently compare those results to the results of the comparable period previously reported in U.S. dollars.

The Company is providing investors the following supplemental information of GAAP and Adjusted Earnings (Non-GAAP), as posted to the Company’s website:

Schedule I: provides supplemental constant currency information for our Non-GAAP results of the first quarter of fiscal 2016.

Schedule II: provides supplemental constant currency information for our GAAP results of the first quarter of fiscal 2016.

****

Adjusted Earnings (NON-GAAP)

We separately report financial results on the basis of Adjusted Earnings. Adjusted Earnings is a Non-GAAP financial measure defined as GAAP income from continuing operations, excluding amortization of acquisition-related intangible assets, acquisition expenses and related adjustments, certain claim and litigation reserve adjustments reflecting changes to the company’s reserves for controlled substance distribution claims and average wholesale price litigation matters, and Last-In-First-Out inventory-related adjustments. A reconciliation of our GAAP financial results to Adjusted Earnings is posted to www.mckesson.com under the “Investors” tab.

Schedule I

McKESSON CORPORATION

SUPPLEMENTAL CONSTANT CURRENCY SCHEDULE - NON-GAAP

DISTRIBUTION SOLUTIONS SEGMENT

(unaudited)

(in millions)

	Adjusted Earnings (NON-GAAP) As Reported							Adjusted Earnings  (NON-GAAP) Constant Currency
	A			B				C			D = A + C			= (D - B) / B
											Quarter Ended			Year Over Year
							Year Over Year Change	Foreign			June 30, 2015			Constant
	Quarter Ended June 30,							Currency			Constant			Currency
	2015			2014				Effects			Currency			Change
REVENUES
Distribution Solutions
North America pharmaceutical distribution & services	$	39,532		$	34,304		15%	$	304		$	39,836		16%
International pharmaceutical distribution & services		5,838			7,025		-17		1,173			7,011		—
Medical-Surgical distribution & services		1,440			1,379		4		1			1,441		4
Total Distribution Solutions	$	46,810		$	42,708		10%	$	1,478		$	48,288		13%
GROSS PROFIT
Distribution Solutions	$	2,584		$	2,491		4%	$	144		$	2,728		10%
Gross profit as a % of revenues
Distribution Solutions		5.52	%		5.83	%	-31 bps		—			5.65	%	-18 bps
OPERATING EXPENSES
Distribution Solutions	$	(1,462	)	$	(1,512	)	-3%	$	(117	)	$	(1,579	)	4%
OTHER INCOME
Distribution Solutions	$	11		$	18		-39%	$	2		$	13		-28%
OPERATING PROFIT
Distribution Solutions	$	1,133		$	997		14%	$	29		$	1,162		17%
Operating profit as a % of revenues
Distribution Solutions		2.42	%		2.33	%	9 bps		—			2.41	%	8 bps

Euro to U.S. Dollar Average Foreign Exchange Rates by Quarter

Our International pharmaceutical distribution and services business reflects the results from Celesio AG (“Celesio”). Celesio independently reports its financial results in Euro. Our financial results for the first quarter of fiscal 2016, as provided on a constant currency basis, exclude primarily the effects of the Euro to the U.S. dollar exchange rate fluctuations between the current period and the comparable period previously reported.

	Euro to $1 U.S. Dollar
	Fiscal 2015 *	Fiscal 2016
First Quarter	1.37	1.10   *
Second Quarter	1.33	1.10 **
Third Quarter	1.25	1.10 **
Fourth Quarter	1.13	1.10 **

* Quarterly exchange rates are computed as a simple average using the average monthly Euro to U.S. dollar exchange rate as reported by the European Central Bank.

** McKesson Corporation’s full year guidance exchange rate as communicated on May 12, 2015 and July 29, 2015.

Schedule II

McKESSON CORPORATION

SUPPLEMENTAL CONSTANT CURRENCY SCHEDULE - GAAP

DISTRIBUTION SOLUTIONS SEGMENT

(unaudited)

(in millions)

	As Reported (GAAP)							As Reported (GAAP) Constant Currency
	A			B				C			D = A + C			= (D - B) / B
											Quarter Ended			Year Over Year
	Quarter Ended June 30,						Year Over Year Change	Foreign Currency			June 30, 2015 Constant			Constant Currency
	2015			2014				Effects			Currency			Change
REVENUES
Distribution Solutions
North America pharmaceutical distribution & services	$	39,532		$	34,304		15%	$	304		$	39,836		16%
International pharmaceutical distribution & services		5,838			7,025		-17		1,173			7,011		—
Medical-Surgical distribution & services		1,440			1,379		4		1			1,441		4
Total Distribution Solutions	$	46,810		$	42,708		10%	$	1,478		$	48,288		13%
GROSS PROFIT
Distribution Solutions	$	2,493		$	2,393		4%	$	144		$	2,637		10%
Gross profit as a % of revenues
Distribution Solutions		5.33	%		5.60	%	-27 bps		—			5.46	%	-14 bps
OPERATING EXPENSES
Distribution Solutions	$	(1,592	)	$	(1,670	)	-5%	$	(127	)	$	(1,719	)	3%
OTHER INCOME
Distribution Solutions	$	9		$	17		-47%	$	2		$	11		-35%
OPERATING PROFIT
Distribution Solutions	$	910		$	740		23%	$	19		$	929		26%
Operating profit as a % of revenues
Distribution Solutions		1.94	%		1.73	%	21 bps		—			1.92	%	19 bps

Euro to U.S. Dollar Average Foreign Exchange Rates by Quarter

Our International pharmaceutical distribution and services business reflects the results from Celesio AG (“Celesio”). Celesio independently reports its financial results in Euro. Our financial results for the first quarter of fiscal 2016, as provided on a constant currency basis, exclude primarily the effects of the Euro to the U.S. dollar exchange rate fluctuations between the current period and the comparable period previously reported.

	Euro to $1 U.S. Dollar
	Fiscal 2015 *	Fiscal 2016
First Quarter	1.37	1.10   *
Second Quarter	1.33	1.10 **
Third Quarter	1.25	1.10 **
Fourth Quarter	1.13	1.10 **

* Quarterly exchange rates are computed as a simple average using the average monthly Euro to U.S. dollar exchange rate as reported by the European Central Bank.

** McKesson Corporation’s full year guidance exchange rate as communicated on May 12, 2015 and July 29, 2015.