EX-99.1 2 mck_ex991resegementation.htm EX-99.1 Document

Exhibit 99.1
SUPPLEMENTAL HISTORICAL SEGMENT FINANCIAL INFORMATION

McKesson Corporation (the "Company," "we," or "our") is furnishing to investors supplemental historical financial information by new reportable segment for our quarterly results of fiscal 2025 and first quarter of fiscal 2026 as well as annual results for fiscal 2025 and 2024. We believe the presentation of our historical segment financial information by new reportable segment provides useful supplemental information to investors to better understand the impact of segment changes.

We reassessed our reportable segments following a change in our organizational structure to reflect our continued focus on delivering new and innovative solutions to respond to the evolving needs of the healthcare industry, customers, and patients. In connection with the completion of this change, our operating structure was realigned, and commencing in the second quarter of fiscal 2026, we will report our financial results in four reportable segments on a retrospective basis as follows: North American Pharmaceutical, Oncology & Multispecialty, Prescription Technology Solutions, and Medical-Surgical Solutions. Our operations in Norway will be included in Other on a retrospective basis. The segment changes reflect how our chief operating decision maker allocates resources and assesses performance commencing in the second quarter of fiscal 2026. The segment changes did not impact the previously issued consolidated financial statements nor earnings per common share of McKesson for historical periods.

Exhibit I provides a reconciliation of the Company’s previously reported GAAP segment financial results to Non-GAAP financial results supplemental to our quarterly results of fiscal 2025 and first quarter of fiscal 2026 as well as annual results for fiscal 2025 and 2024.

Exhibit I
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McKESSON CORPORATION
RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) SUPPLEMENTAL
FOR FISCAL QUARTERS OF 2025 AND FIRST FISCAL QUARTER OF 2026
(unaudited)
(in millions)
FISCAL 2025FISCAL 2026
Quarter Ended June 30, 2024Quarter Ended September 30, 2024Quarter Ended December 31, 2024Quarter Ended March 31, 2025Quarter Ended June 30, 2025
As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)
REVENUES
North American Pharmaceutical$66,348 $— $66,348 $80,018 $— $80,018 $81,198 $— $81,198 $76,943 $— $76,943 $82,729 $— $82,729 
Oncology & Multispecialty
8,781 — 8,781 9,157 — 9,157 9,493 — 9,493 9,431 — 9,431 10,658 — 10,658 
Prescription Technology Solutions1,241 — 1,241 1,265 — 1,265 1,371 — 1,371 1,339 — 1,339 1,434 — 1,434 
Medical-Surgical Solutions
2,632 — 2,632 2,946 — 2,946 2,949 — 2,949 2,853 — 2,853 2,701 — 2,701 
Other281 — 281 265 — 265 283 — 283 257 — 257 305 — 305 
Revenues$79,283 $— $79,283 $93,651 $— $93,651 $95,294 $— $95,294 $90,823 $— $90,823 $97,827 $— $97,827 
OPERATING PROFIT
North American Pharmaceutical$702 $(18)$684 $347 $407 $754 $744 $78 $822 $1,152 $(267)$885 $594 $155 $749 
Oncology & Multispecialty
148 71 219 200 32 232 202 31 233 217 35 252 212 75 287 
Prescription Technology Solutions203 20 223 205 13 218 219 16 235 248 37 285 253 16 269 
Medical-Surgical Solutions
192 8 200 91 152 243 269 25 294 227 58 285 221 23 244 
Other17 (3)14 13 1 14 14 (3)11 10 (1)9 13 — 13 
Subtotal1,262 78 1,340 856 605 1,461 1,448 147 1,595 1,854 (138)1,716 1,293 269 1,562 
Corporate expenses, net(103)68 (35)(244)74 (170)(155)23 (132)(294)137 (157)(193)55 (138)
Income before interest expense and income taxes
$1,159 $146 $1,305 $612 $679 $1,291 $1,293 $170 $1,463 $1,560 $(1)$1,559 $1,100 $324 $1,424 
OPERATING PROFIT AS A % OF REVENUES
North American Pharmaceutical1.06  %1.03  %0.43  %0.94  %0.92  %1.01  %1.50  %1.15  %0.72  %0.91  %
Oncology & Multispecialty
1.69 2.49 2.18 2.53 2.13 2.45 2.30 2.67 1.99 2.69 
Prescription Technology Solutions16.36 17.97 16.21 17.23 15.97 17.14 18.52 21.28 17.64 18.76 
Medical-Surgical Solutions
7.29 7.60 3.09 8.25 9.12 9.97 7.96 9.99 8.18 9.03 
Other6.05 4.98 4.91 5.28 4.95 3.89 3.89 3.50 4.26 4.26 


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Exhibit I
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McKESSON CORPORATION
RECONCILIATION OF GAAP SEGMENT OPERATING RESULTS TO ADJUSTED RESULTS (NON-GAAP) SUPPLEMENTAL
FOR FISCAL 2025 and 2024
(unaudited)
(in millions)
Year Ended March 31, 2025Year Ended March 31, 2024
As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)As reported (GAAP)AdjustmentsAs adjusted (Non-GAAP)
REVENUES
North American Pharmaceutical$304,507 $— $304,507 $261,368 $— $261,368 
Oncology & Multispecialty
36,862 — 36,862 30,490 — 30,490 
Prescription Technology Solutions5,216 — 5,216 4,769 — 4,769 
Medical-Surgical Solutions
11,380 — 11,380 11,309 — 11,309 
Other1,086 — 1,086 1,015 — 1,015 
Revenues$359,051 $— $359,051 $308,951 $— $308,951 
OPERATING PROFIT
North American Pharmaceutical$2,945 $200 $3,145 $2,338 $503 $2,841 
Oncology & Multispecialty
767 169 936 707 101 808 
Prescription Technology Solutions875 86 961 835 2 837 
Medical-Surgical Solutions
779 243 1,022 955 63 1,018 
Other54 (6)48 57 (12)45 
Subtotal5,420 692 6,112 4,892 657 5,549 
Corporate expenses, net(796)302 (494)(851)203 (648)
Income before interest expense and income taxes
$4,624 $994 $5,618 $4,041 $860 $4,901 
OPERATING PROFIT AS A % OF REVENUES
North American Pharmaceutical0.97  %1.03  %0.89  %1.09  %
Oncology & Multispecialty
2.08 2.54 2.32 2.65 
Prescription Technology Solutions16.78 18.42 17.51 17.55 
Medical-Surgical Solutions
6.85 8.98 8.44 9.00 
Other4.97 4.42 5.62 4.43 



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SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION

In an effort to provide investors with additional information regarding the Company's financial results as determined by generally accepted accounting principles ("GAAP"), McKesson Corporation (the "Company" or "we") also presents the following Non-GAAP financial measures in this exhibit to Form 8-K.

•Adjusted Segment Operating Profit (Non-GAAP) and Adjusted Segment Operating Profit Margin (Non-GAAP): We define Adjusted Segment Operating Profit as GAAP segment operating profit, excluding amortization of acquisition-related intangibles, transaction-related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments. We define Adjusted Segment Operating Profit Margin as Adjusted Segment Operating Profit (Non-GAAP) divided by GAAP segment revenues.

•Adjusted Corporate Expenses (Non-GAAP): We define Adjusted Corporate Expenses as GAAP corporate expenses, net, excluding transaction-related expenses and adjustments, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments.

•Adjusted Operating Profit (Non-GAAP): We define Adjusted Operating Profit as GAAP income before interest expense and income taxes, excluding amortization of acquisition-related intangibles, transaction-related expenses and adjustments, LIFO inventory-related adjustments, gains from antitrust legal settlements, restructuring, impairment, and related charges, claims and litigation charges, and other adjustments.

The following provides further details regarding the adjustments made to our GAAP financial results to arrive at our Non-GAAP financial measures as defined above:

Amortization of acquisition-related intangibles - Amortization charges for intangible assets directly related to business combinations and the formation of joint ventures.

Transaction-related expenses and adjustments - Transaction, integration and other expenses that are directly related to business combinations, the formation of joint ventures, divestitures, and other transaction-related costs including initial public offering costs. Examples include transaction closing costs, professional service fees, legal fees, severance charges, retention payments and employee relocation expenses, facility or other exit-related expenses, certain fair value adjustments including deferred revenues, contingent consideration and inventory, recoveries of acquisition-related expenses or post-closing expenses, net interest expense impact of hedging foreign currency-denominated notes, bridge loan fees, and gains or losses on business combinations and divestitures of businesses that do not qualify as discontinued operations.

LIFO inventory-related adjustments - LIFO inventory-related non-cash charges or credit adjustments.

Gains from antitrust legal settlements - Net cash proceeds representing the Company’s share of antitrust legal settlements.

Restructuring, impairment, and related charges - Restructuring charges that are incurred for programs in which we change our operations, the scope of a business undertaken by our business units, or the manner in which that business is conducted, as well as long-lived asset impairments. Such charges may include employee severance, retention bonuses, facility closure or consolidation costs, lease or contract termination costs, asset impairments, accelerated depreciation and amortization, and other related expenses. The restructuring programs may be implemented due to the sale or discontinuation of a product line, reorganization or management structure changes, headcount rationalization, realignment of operations or products, integration of acquired businesses, and/or company-wide cost saving initiatives. The amount and/or frequency of these restructuring charges are not part of our underlying business, which include normal levels of reinvestment in the business. Any credit adjustments due to subsequent changes in estimates are also excluded from adjusted results.

Claims and litigation charges - Adjustments to certain of the Company’s reserves, including those related to estimated probable settlements for its controlled substance monitoring and reporting, and opioid-related claims, as well as any applicable income items or credit adjustments due to subsequent changes in estimates. This does not include our legal fees to defend claims, which are expensed as incurred. This also may include charges or credits for general non-operational claims not directly related to our ongoing business.

Other adjustments - The Company evaluates the nature and significance of transactions qualitatively and quantitatively on an individual basis and may include them in the determination of our adjusted results from time to time. While not all-inclusive, other adjustments may include: other asset impairments; gains or losses from debt extinguishment; and other similar substantive and/or infrequent items as deemed appropriate.

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SUPPLEMENTAL NON-GAAP FINANCIAL INFORMATION (continued)

The Company believes the presentation of Non-GAAP financial measures provides useful supplemental information to investors with regard to its operating performance, as well as assists with the comparison of its past financial performance to the Company’s future financial results. Moreover, the Company believes that the presentation of Non-GAAP financial measures assists investors’ ability to compare its financial results to those of other companies in the same industry. However, Non-GAAP financial measures used in the press tables may be defined and calculated differently by other companies in the same industry.

The Company internally uses both GAAP and Non-GAAP financial measures in connection with its own financial planning and reporting processes. Management utilizes Non-GAAP financial measures when allocating resources, deploying capital, as well as assessing business performance, and determining employee incentive compensation. Nonetheless, Non-GAAP financial measures disclosed by the Company should not be considered a substitute for, nor superior to, financial results and measures as determined or calculated in accordance with GAAP.