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Appendix A
RECONCILIATION OF GAAP EARNINGS PER SHARE TO ADJUSTED EARNINGS PER SHARE
(NON-GAAP)
Years Ended March 31,
2016 2015 2014 2013 2012
Diluted earnings per share from continuing operations, net of
tax, attributable to McKesson Corporation (GAAP) $ 9.84 $ 7.54 $ 6.08 $ 5.69 $ 5.56
Adjustments, net of tax:
Amortization of acquisition-related intangibles 1.27 1.43 0.85 0.56 0.45
Acquisition expenses and related adjustments 0.34 0.63 0.63 (0.02) 0.07
Claim and litigation reserve adjustments — 0.64 0.23 0.19 0.24
LIFO-related adjustments 0.63 0.87 0.81 0.03 0.03
Adjusted earnings per diluted share (Non-GAAP) (1) $12.08 $11.11 $ 8.60 $ 6.45 $ 6.35
Years Ended
March 31,
2011 2010
Diluted earnings per share from continuing operations, net of tax, attributable to
McKesson Corporation (GAAP) $ 4.17 $ 4.46
Adjustments, net of tax:
Amortization of acquisition-related intangibles 0.30 0.26
Acquisition expenses and related adjustments 0.14 —
Claim and litigation reserve adjustments 0.57 (0.04)
LIFO-related adjustments 0.01 0.02
Adjusted earnings per diluted share (Non-GAAP) (1) $ 5.19 $ 4.70
(1) Certain computations may reflect rounding adjustments.
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 measures. The Company believes the presentation of non-GAAP
measures provides useful supplemental information to investors with regard to its core 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 measures assists investors’ ability to
compare its financial results to those of other companies in the same industry. However, the Company’s non-
GAAP measures may be defined and calculated differently by other companies in the same industry.
•Adjusted Earnings (Non-GAAP): We define Adjusted Earnings as 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, as well as the related income tax effects. The Company evaluates its
definition of Adjusted Earnings on a periodic basis and updates 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.