<PAGE>
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): February 24, 1998
McKESSON CORPORATION
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in charter)
Delaware 1-13252 94-3207296
- --------------------------------------------------------------------------------
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
McKesson Plaza
One Post Street
San Francisco, California 94104
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
- --------------------------------------------------------------------------------
Registrant's telephone number, including area code (415) 983-8300
<PAGE>
Item 5. Other Events
- ---------------------
Attached are the unaudited pro forma combined consolidated financial
data of McKesson Corporation and AmeriSource Health Corporation which updates
the pro forma data included in Amendment No. 1 to Form S-4 (Registration No.
333-40587) filed by the Registrant with the Commission on January 2, 1998.
On February 24, 1998, the Registrant announced that it has completed a
private placement of $300 million senior unsecured debt securities. The text of
the press release regarding this announcement is set forth in Exhibit (99) to
this Current Report on Form 8-K.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
- -----------------------------------------------------------------------------
(c) Exhibits
(99) Press Release issued by McKesson Corporation on February 24,
1998.
<PAGE>
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.
McKESSON CORPORATION
(Registrant)
Dated: February 24, 1998 By /s/ Richard H. Hawkins
----------------------------------
Richard H. Hawkins
Vice President and
Chief Financial Officer
By /s/ Heidi E. Yodowitz
----------------------------------
Heidi E. Yodowitz
Controller
<PAGE>
UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL DATA OF
McKESSON CORPORATION AND AMERISOURCE HEALTH CORPORATION
The following unaudited pro forma combined consolidated financial data
present, under the pooling of interests accounting method, the combined
condensed balance sheet of McKesson Corporation, ("McKesson") and AmeriSource
Health Corporation ("AmeriSource") as of December 31, 1997 and the combined
condensed statements of income of McKesson and AmeriSource for the nine-month
periods ended December 31, 1997 and 1996 and the fiscal years ended March 31,
1997, 1996 and 1995. The unaudited pro forma combined consolidated financial
data reflect preliminary estimated adjustments necessary to conform inventory
accounting policies of the separate companies but do not reflect any cost
savings and other synergies anticipated by McKesson management as a result of
the pending merger of McKesson and AmeriSource (the "Merger") or any Merger
related expenses and are not necessarily indicative of the actual results of
operations or the financial position of the combined entities had the Merger
been consummated at the beginning of the earliest period presented, nor are
they necessarily indicative of future results of operations or financial
position.
McKesson's fiscal year ends on March 31. AmeriSource's fiscal year ends on
September 30. For purposes of combining AmeriSource's historical financial
data with McKesson's historical financial data with McKesson's historical
financial data in the unaudited pro forma combined consolidated financial
data, the financial information of AmeriSource has been reported using the
twelve-month periods ended March 31, 1997, 1996 and 1995, and the nine-month
periods ended December 31, 1997 and 1996.
The unaudited pro forma combined consolidated financial data should be read
in conjunction with the historical audited and unaudited consolidated financial
statements of McKesson and AmeriSource previously filed with the Securities
and Exchange Commission by the respective companies.
<PAGE>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
NINE-MONTH PERIOD ENDED DECEMBER 31, 1997
<TABLE>
<CAPTION>
Pro Forma
Historical Historical ------------------------
McKesson AmeriSource Adjustments Combined
---------- ------------ ----------- -----------
(in millions, except per share amounts)
<S> <C> <C> <C> <C>
Revenues............................................................ $13,481.3 $6,538.1 $ $20,019.4
Costs and expenses
Cost of sales..................................................... 12,371.8 6,224.1 3.3 (1) 18,599.2
Selling, distribution and administration.......................... 836.5 219.6 (2) 1,056.1
Interest.......................................................... 74.8 33.9 108.7
-------- -------- ------- ---------
Total......................................................... 13,283.1 6,477.6 3.3 19,764.0
-------- -------- ------- ---------
Income before income taxes and dividends on convertible preferred
securities of subsidiary trust.................................... 198.2 60.5 (2) (3.3)(1) 255.4
Income taxes........................................................ (74.3) (23.5) 1.2 (3) (96.6)
Dividends on convertible preferred securities of subsidiary trust,
net of tax benefit.................................................. (4.7) (4.7)
-------- -------- ------- ---------
Net income.................................................... $ 119.2 $ 37.0 (2) $ (2.1)(1)(3) $ 154.1
======== ======== ======= =========
Earnings per common share (4)
Diluted........................................................... $ 1.23 $ 1.53 $ 1.17
Basic............................................................. 1.30 1.55 1.23
Shares on which earnings per common share were based (4)
Diluted......................................................... 101.1 24.1 10.1 (5) 135.3
Basic........................................................... 91.3 23.8 10.0 (5) 125.1
</TABLE>
See Notes to Unaudited Pro Forma Combined Consolidated Financial Data of
McKesson and AmeriSource
- ------
(1) Reflects the estimated adjustment necessary to conform inventory accounting
policies of the separate companies.
(2) Includes a $6.4 million charge to consolidate facilities and restructure
the sales force and a $5.2 million charge related to executive management
changes, $7.1 million after-tax in the aggregate.
(3) Adjusts the historical provision for income taxes to give effect to the pro
forma adjustment discussed above.
(4) Historical amounts have been restated in accordance with Statement of
Financial Standards No. 128 "Earnings per Share" and also reflect the
McKesson two-for-one stock split declared October 29, 1997, distributed
January 2, 1998 to stockholders of record on December 1, 1997.
(5) Reflects the effect of the exchange ratio of 1.42 shares of McKesson common
stock for each share of AmeriSource common stock.
<PAGE>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
NINE-MONTH PERIOD ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Pro Forma
Historical Historical ------------------------
McKesson AmeriSource Adjustments Combined
------------ ------------ ----------- ---------
(in millions, except per share amounts)
<S> <C> <C> <C> <C>
Revenues....................................................... $8,888.1 $4,654.0 $ $13,542.1
Costs and expenses
Cost of sales............................................... 8,181.4 4,413.3 (1) 3.5 (2) 12,598.2
Selling, distribution and administration.................... 696.1 (3) 165.5 861.6
Interest.................................................... 33.8 26.3 60.1
--------- -------- ----- ---------
Total.................................................... 8,911.3 4,605.1 3.5 13,519.9
--------- -------- ----- ---------
Income (loss) before income taxes.............................. (23.2)(3) 48.9 (3.5)(2) 22.2
Income taxes................................................... (8.5) (13.4)(4) 1.3 (5) (20.6)
--------- -------- ----- ---------
Income (loss) after taxes
Continuing operations....................................... (31.7)(3) 35.5(1)(4) (2.2)(2)(5) 1.6
Discontinued operations..................................... 7.7 7.7
Discontinued operations-gain on sale of Armor All Stock..... 120.2 120.2
Extraordinary item.......................................... (7.2) (7.2)
--------- -------- ----- ---------
Net income (loss)........................................ $ 96.2 $ 28.3 $(2.2) $ 122.3
========= ======== ===== =========
Earnings (loss) per common share (6)
Diluted
Continuing operations...................................... $ (0.37) $ 1.50 $ 0.01
Discontinued operations.................................... 0.09 0.06
Discontinued operations-gain on sale of Armor All Stock.... 1.41 0.99
Extraordinary item......................................... (0.30) (0.06)
--------- -------- ---------
Total.................................................... $ 1.13 $ 1.20 $ 1.00
========= ======== =========
Basic
Continuing operations.......................................$ (0.37) $ 1.52 $ 0.01
Discontinued operations..................................... 0.09 0.07
Discontinued operations-gain on sale of Armor All Stock..... 1.41 1.02
Extraordinary item.......................................... (0.31) (0.06)
--------- -------- ---------
Total.................................................... $ 1.13 $ 1.21 $ 1.04
========= ======== =========
Shares on which earnings (loss) per common share were
based (6)
Diluted..................................................... 85.0 23.6 13.3 (7)(8) 121.9
Basic....................................................... 85.0 23.4 9.7 (7) 118.1
</TABLE>
See Notes to Unaudited Pro Forma Combined Consolidated Financial Data of
McKesson and AmeriSource
- ------
(1) Includes a one-time cumulative non-cash charge of $10.9 million, $7.1
million after-tax.
(2) Reflects the estimated adjustment necessary to conform inventory accounting
policies of the separate companies.
(3) Includes $98.8 million in charges for restructuring, asset impairment and
other operating items and $48.2 million write-off for in-process technology
related to the acquisition of McKesson Automated Healthcare, Inc., $109.5
million after-tax in the aggregate.
(4) Reflects a reduction of $7.1 million due to a favorable settlement of an
Internal Revenue Service audit.
(5) Adjusts the historical provision for income taxes to give effect to the pro
forma adjustment discussed above.
(6) Historical amounts have been restated in accordance with Statement of
Financial Accounting Standards No. 128 "Earnings per Share" and also
reflect the McKesson two-for-one stock split declared October 29, 1997,
distributed January 2, 1998 to stockholders of record on December 1, 1997.
(7) Reflects the effect of the exchange ratio of 1.42 shares of McKesson common
stock for each share of AmeriSource common stock.
(8) Includes shares arising from the assumed exercise of McKesson stock options
under the treasury stock method. Because of the loss from continuing
operations reported by McKesson, such shares were anti-dilutive and,
therefore, were excluded from the computations of McKesson's historical per
share loss from continuing operations, income from discontinued operations
and net income.
<PAGE>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FISCAL YEAR ENDED MARCH 31, 1997
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL HISTORICAL -------------------------
MCKESSON AMERISOURCE ADJUSTMENTS COMBINED
---------- ----------- ----------- ---------
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C>
Revenues................... $12,886.7 $6,439.5 $ $19,326.2
Costs and expenses
Cost of sales............. 11,849.4 6,105.9 (1) 3.1 (2) 17,958.4
Selling, distribution and
administration........... 944.5 (3) 225.9 1,170.4
Interest.................. 55.7 37.3 93.0
--------- -------- ----- ---------
Total................... 12,849.6 6,369.1 3.1 19,221.8
--------- -------- ----- ---------
Income before income taxes
and dividends on convert-
ible preferred securities
of subsidiary trust....... 37.1 (3) 70.4 (1) (3.1)(2) 104.4
Income taxes............... (31.3) (21.8)(4) 1.2 (5) (51.9)
Dividends on convertible
preferred securities of
subsidiary trust, net of
tax benefit............... (0.7) (0.7)
--------- -------- ----- ---------
Income (loss) after taxes
Continuing operations..... 5.1 (3) 48.6 (1)(4) (1.9)(2)(5) 51.8
Discontinued operations... 8.6 8.6
Discontinued operations--
gain on sale............. 120.2 120.2
Extraordinary item........ (9.2) (9.2)
--------- -------- ----- ---------
Net income.............. $ 133.9 $ 39.4 $(1.9) $ 171.4
========= ======== ===== =========
Earnings (loss) per common
share (6)
Diluted
Continuing operations..... $ 0.06 $ 2.05 $ 0.43
Discontinued operations... 0.10 0.07
Discontinued operations--
gain on sale............. 1.35 0.98
Extraordinary item........ (0.39) (0.08)
--------- -------- ---------
Total................... $ 1.51 $ 1.66 $ 1.40
========= ======== =========
Basic
Continuing operations..... $ 0.06 $ 2.07 $ 0.44
Discontinued operations... 0.10 0.07
Discontinued operations--
gain on sale............. 1.41 1.01
Extraordinary item........ (0.39) (0.08)
--------- -------- ---------
Total................... $ 1.57 $ 1.68 $ 1.44
========= ======== =========
Shares on which earnings
(loss) per common share
were based (6)
Diluted................... 89.4 23.7 10.0 (7) 123.1
Basic..................... 85.5 23.4 9.9 (7) 118.8
</TABLE>
See Notes to Unaudited Pro Forma Combined Consolidated Financial Data of
McKesson and AmeriSource
- --------
(1) Includes a one-time, cumulative non-cash charge of $10.9 million, $7.1
million after-tax.
(2) Reflects the estimated adjustment necessary to conform inventory
accounting policies of the separate companies.
(3) Includes $98.8 million in charges for restructuring, asset impairment and
other operating items and $48.2 million for the write-off of in-process
technology related to the acquisition of McKesson Automated Healthcare,
Inc., $109.5 million after-tax in the aggregate.
(4) Reflects a reduction of $7.1 million due to a favorable settlement of an
Internal Revenue Service audit.
(5) Adjusts the historical provision for income taxes to give effect to the
pro forma adjustment discussed above.
(6) Historical amounts have been restated in accordance with Statement of
Financial Accounting Standards No. 128 "Earnings per Share" and also
reflect the McKesson two-for-one stock split declared October 29, 1997,
distributed January 2, 1998 to stockholders of record on December 1, 1997.
(7) Reflects the effect of the exchange ratio of 1.42 shares of McKesson
common stock for each share of AmeriSource common stock.
<PAGE>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FISCAL YEAR ENDED MARCH 31, 1996
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL HISTORICAL -------------------------
MCKESSON AMERISOURCE ADJUSTMENTS COMBINED
---------- ----------- ----------- ---------
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C>
Revenues..................... $9,953.7 $5,006.4 $ $14,960.1
Costs and expenses
Cost of sales............... 9,038.2 4,721.0 2.3 (1) 13,761.5
Selling, distribution and
administration............. 674.2 183.2 857.4
Interest.................... 44.4 39.3 83.7
-------- -------- ----- ---------
Total...................... 9,756.8 4,943.5 2.3 14,702.6
-------- -------- ----- ---------
Income before income taxes... 196.9 62.9 (2.3)(1) 257.5
Income taxes................. (76.2) (23.3) 0.9 (2) (98.6)
-------- -------- ----- ---------
Income (loss) after taxes
Continuing operations....... 120.7 39.6 (1.4)(1)(2) 158.9
Discontinued operations..... 14.7 14.7
Extraordinary item.......... (6.2) (6.2)
-------- -------- ----- ---------
Net income................. $ 135.4 $ 33.4 $(1.4) $ 167.4
======== ======== ===== =========
Earnings (loss) per common
share (3)
Diluted
Continuing operations....... $ 1.29 $ 1.79 $ 1.28
Discontinued operations..... 0.16 0.12
Extraordinary item.......... (0.28) (0.05)
-------- -------- ---------
Total...................... $ 1.45 $ 1.51 $ 1.35
======== ======== =========
Basic
Continuing operations....... $ 1.36 $ 1.80 $ 1.32
Discontinued operations..... 0.17 0.12
Extraordinary item.......... (0.28) (0.05)
-------- -------- ---------
Total...................... $ 1.53 $ 1.52 $ 1.39
======== ======== =========
Shares on which earnings
(loss) per common share
were based (3)
Diluted..................... 93.2 22.1 9.2 (4) 124.5
Basic....................... 88.8 22.0 9.2 (4) 120.0
</TABLE>
See Notes to Unaudited Pro Forma Combined Consolidated Financial Data of
McKesson and AmeriSource
- --------
(1) Reflects the estimated adjustment necessary to conform inventory
accounting policies of the separate companies.
(2) Adjusts the historical provision for income taxes to give effect to the
pro forma adjustment discussed above.
(3) Historical amounts have been restated in accordance with Statement of
Financial Accounting Standards No. 128 "Earnings per Share" and also
reflect the McKesson two-for-one stock split declared October 29, 1997,
distributed January 2, 1998 to stockholders of record on December 1, 1997.
(4) Reflects the effect of the exchange ratio of 1.42 shares of McKesson
common stock for each share of AmeriSource common stock.
<PAGE>
PRO FORMA COMBINED CONDENSED STATEMENT OF INCOME
FISCAL YEAR ENDED MARCH 31, 1995
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL HISTORICAL ---------------------------
MCKESSON AMERISOURCE ADJUSTMENTS COMBINED
---------- ----------- ----------- ---------
(IN MILLIONS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C>
Revenues................ $9,438.7 $4,435.9 $ $13,874.6
Costs and expenses
Cost of sales.......... 8,630.5 (1) 4,184.3 1.8 (2) 12,816.6
Selling, distribution
and administration.... 817.2 (1) 345.2 (3) 1,162.4
Interest............... 44.5 62.5 107.0
-------- -------- --------- ---------
Total................ 9,492.2 4,592.0 1.8 14,086.0
-------- -------- --------- ---------
Loss before taxes....... (53.5)(1) (156.1)(3) (1.8)(2) (211.4)
Income taxes............ (96.6)(4) (15.1) 0.7 (5) (111.0)
-------- -------- --------- ---------
Income (loss) after
taxes
Continuing operations.. (150.1)(1)(4) (171.2)(3) (1.1)(2)(5) (322.4)
Discontinued opera-
tions................. (23.1) (23.1)
Discontinued opera-
tions--gains on
sale/donation......... 577.7 577.7
Extraordinary item..... (11.9) (11.9)
-------- -------- --------- ---------
Net income (loss).... $ 404.5 $ (183.1) $ (1.1) $ 220.3
======== ======== ========= =========
Earnings (loss) per com-
mon share (6)
Diluted
Continuing operations.. $ (1.83) $ (11.60) $ (3.11)
Discontinued opera-
tions................. (0.27) (0.22)
Discontinued opera-
tions--gains on
sale/donation......... 6.88 5.51
Extraordinary item..... (0.81) (0.11)
-------- -------- ---------
Total................ $ 4.78 $ (12.41) $ 2.07
======== ======== =========
Basic
Continuing operations.. $ (1.83) $ (11.60) $ (3.11)
Discontinued opera-
tions................. (0.27) (0.22)
Discontinued opera-
tions--gains on
sale/donation......... 6.88 5.51
Extraordinary item..... (0.81) (0.11)
-------- -------- ---------
Total................ $ 4.78 $ (12.41) $ 2.07
======== ======== =========
Shares on which
earnings (loss) per
common share were
based (6)
Diluted................ 83.9 14.8 6.2 (7) 104.9
Basic ................. 83.9 14.8 6.2 (7) 104.9
</TABLE>
See Notes to Unaudited Pro Forma Combined Consolidated Financial Data of
McKesson and AmeriSource
- --------
(1) Includes $59.4 million in compensation costs (included in administration
expense) related to the sale of PCS and $139.5 million in charges for
asset impairment, restructuring and other operating items ($35.9 million
included in cost of sales and $103.6 million included in administration
expense), $130.6 million after-tax in the aggregate.
(2) Reflects the estimated adjustment necessary to conform inventory
accounting policies of the separate companies.
(3) Includes a $179.8 million write-off of goodwill.
(4) Includes $107.0 million of income tax expense related to the sale of PCS.
(5) Adjusts the historical provision for income taxes to give effect to the
pro forma adjustment discussed above.
(6) Historical amounts have been restated in accordance with Statement of
Financial Accounting Standards No. 128 "Earnings per Share" and also
reflect the McKesson two-for-one stock split declared October 29, 1997,
distributed January 2, 1998 to stockholders of record on December 1, 1997.
(7) Reflects the effect of the exchange ratio of 1.42 shares of McKesson
common stock for each share of AmeriSource common stock.
<PAGE>
PRO FORMA COMBINED CONDENSED BALANCE SHEET
DECEMBER 31, 1997
<TABLE>
<CAPTION>
PRO FORMA
HISTORICAL HISTORICAL ------------------------
MCKESSON AMERISOURCE ADJUSTMENTS COMBINED
---------- ----------- ----------- --------
(IN MILLIONS)
<S> <C> <C> <C> <C>
ASSETS
Cash and cash equivalents..... $ 71.0 $ 66.0 $ $ 137.0
Marketable securities
available for sale........... 98.0 98.0
Receivables................... 1,520.5 560.2 2,080.7
Inventories................... 2,358.1 1,034.1 (8.8)(1) 3,383.4
Prepaid expenses.............. 60.7 4.4 5.7 (2) 70.8
Property, plant and
equipment--net............... 396.5 66.2 462.7
Goodwill and other
intangibles.................. 756.5 33.9 790.4
Other assets.................. 322.9 15.3 338.2
-------- --------- ----- --------
Total assets................. $5,584.2 $ 1,780.1 $(3.1) $7,361.2
======== ========= ===== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Drafts and accounts payable... $2,054.7 $ 865.2 $ 5.4 (1) $2,925.3
Short-term loans and current
portion of long-term debt.... 409.7 409.7
Other current liabilities..... 398.2 93.8 492.0
Postretirement obligations and
noncurrent liabilities....... 243.2 10.6 253.8
Long-term debt................ 918.1 781.0 1,699.1
Convertible preferred
securities of subsidiary
grantor trust................ 195.1 195.1
Stockholders' equity.......... 1,365.2 29.5 (8.5)(1)(2) 1,386.2
-------- --------- ----- --------
Total liabilities and
stockholders' equity........ $5,584.2 $ 1,780.1 $(3.1) $7,361.2
======== ========= ===== ========
</TABLE>
See Notes to Unaudited Pro Forma Combined Consolidated Financial Data of
McKesson and AmeriSource
- --------
(1) Reflects the estimated adjustment necessary to conform inventory accounting
policies of the separate companies.
(2) Reflects the deferred taxes related to the pro forma adjustment discussed
above.
<PAGE>
NOTES TO UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL DATA
OF McKESSON AND AMERISOURCE
1. McKESSON AND AMERISOURCE HISTORICAL FISCAL YEARS
McKesson's fiscal year ends on March 31. AmeriSource's fiscal year ends on
September 30. For purposes of combining AmeriSource's historical financial data
with McKesson's historical financial data in the unaudited pro forma combined
consolidated financial data, the financial information of AmeriSource has been
reported using the twelve-month periods ended March 31, 1997, 1996 and 1995, and
the nine-month periods ended December 31, 1997 and 1996.
Certain amounts in the historical financial statements of McKesson and
AmeriSource have been reclassified for the pro forma presentation.
Certain adjustments to the historical financial statements of AmeriSource
were necessary to conform inventory accounting policies of the separate
companies. Such preliminary estimated adjustments have been reflected in the
pro forma presentation.
2. MERGER EXPENSES
In connection with the Merger, the companies expect to incur charges between
$85 million and $105 million, after-tax, for merger and restructuring costs.
Such merger costs include investment banking, legal, accounting and other
related costs and fees. Additionally, the companies expect to incur costs
related to the combination of the separate companies and the reconfiguration of
the distribution center network from 61 to 33 facilities. These costs include
the effect of certain employee severance arrangements, costs to exit certain
contractual relationships, revaluation of certain operating assets, and other
merger related costs. These costs will be charged to expense upon consummation
of the Merger. The companies expect to incur additional integration-related
costs which will be charged to expense when incurred. Since the Merger has not
yet been consummated, the Merger expenses can only be estimated at this time,
and are subject to revision as further information becomes available.
3. EARNINGS PER SHARE
The pro forma earnings per common share reflect the weighted average number
of shares of McKesson common stock that would have been outstanding had the
Merger occurred at the beginning of the earliest period presented and are
presented reflecting the exchange ratio of 1.42 shares of McKesson common stock
for each share of AmeriSource common stock outstanding after giving effect to
the McKesson two-for-one stock split declared October 29, 1997, distributed
January 2, 1998 to stockholders of record on December 1, 1997. The diluted pro
forma earnings per common share reflect the impact of McKesson and AmeriSource
stock options using the treasury stock method. All AmeriSource stock options
are assumed to be converted into options for McKesson common stock at the
applicable exchange ratio before application of the treasury stock method. The
pro forma diluted earnings per common share for fiscal year 1997 and for the
nine months ended December 31, 1997, also reflect the assumed conversion of
McKesson's convertible preferred securities.
<PAGE>
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit
No. Title
- -------- ----------------------------------------
<S> <C>
(99) Press Release issued by McKesson
Corporation on February 24, 1998.
</TABLE>
<PAGE>
Exhibit (99)
Contacts: McKesson
Media
Larry Kurtz
Vice President, Corporate Communications
415-983-8418
or
Investors
Janet Bley
Vice President, Investor Relations
415-983-9357
McKESSON ANNOUNCES $300 MILLION
PRIVATE PLACEMENT OF SENIOR UNSECURED DEBT
SAN FRANCISCO, CALIF., February 24, 1998 -- McKesson Corporation (NYSE:MCK)
announced today that it has completed a private placement of $300 million senior
unsecured debt securities. The placement consists of $150 million senior
unsecured debt securities due March 1, 2005, with a coupon of 6.30% and issue
price of 99.992, and $150 million senior unsecured debt securities due March 1,
2008, with a coupon of 6.40% and issue price of 99.764. The proceeds will be
used for general corporate purposes.
The debt securities have not been registered under the Securities Act of
1933 and may not be offered or sold in the United States absent registration or
an applicable exemption from registration requirements.
###
