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Appendix A
RECONCILIATION OF GAAP EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE
(NON-GAAP)
Years Ended March 31,
2015 2014 2013 2012 2011
Diluted earnings per share from continuing operations, net of
tax, attributable to McKesson Corporation (GAAP) $ 7.54 $6.08 $ 5.69 $5.56 $4.17
Adjustments, net of tax:
Amortization of acquisition-related intangibles 1.43 0.85 0.56 0.45 0.30
Acquisition expenses and related adjustments 0.63 0.63 (0.02) 0.07 0.14
Claim and litigation reserve adjustments 0.64 0.23 0.19 0.24 0.57
LIFO-related adjustments 0.87 0.81 0.03 0.03 0.01
Adjusted earnings per share (Non-GAAP) (1) $11.11 $8.60 $ 6.45 $6.35 $5.19
Years Ended
March 31,
2010 2009
Diluted earnings per share from continuing operations, net of tax, attributable to McKesson
Corporation (GAAP) $ 4.46 $2.86
Adjustments, net of tax:
Amortization of acquisition-related intangibles 0.26 0.28
Acquisition expenses and related adjustments — —
Claim and litigation reserve adjustments (0.04) 1.11
LIFO-related adjustments 0.02 0.02
Adjusted earnings per share (Non-GAAP) (1) $ 4.70 $4.27
(1) Certain computations may reflect rounding adjustments.
Adjusted Earnings
McKesson separately reports financial results on the basis of Adjusted Earnings. Adjusted Earnings is a
Non-Gaap financial measure defined as Generally Accepted Accounting Principles (“GAAP”) income from
continuing operations, excluding amortization of acquisition-related intangible assets, acquisition expenses and
related adjustments, certain claim and litigation reserve adjustments, and Last-In-First-Out (“LIFO”) inventory-
related adjustments.
****
Definitions related to Adjusted Earnings (Non-GAAP) Financial Information
Adjusted Earnings represents income from continuing operations, excluding the effects of the following items
from the Company’s GAAP financial results, including the related income tax effects. The Company evaluates its
definition of Adjusted Earnings on a periodic basis and will update the definition from time to time. The
evaluation considers both the quantitative and qualitative aspect of the Company’s presentation of Adjusted
Earnings.
Amortization of acquisition-related intangibles—Amortization expense of acquired intangible assets
purchased in connection with business acquisitions by the Company.